EX-12.2 3 exhibit1222014.htm NRG ENERGY, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED Exhibit 12.2 2014


EXHIBIT 12.2
NRG ENERGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS



 
For the Year Ended December 31,
 
2014
 
2013(a)
 
2012(a)
 
2011(a)
 
2010
 
(in millions except ratio)
Earnings:
 
 
 
 
 
 
 
 
 
Income/(loss) from continuing operations before income tax
$
135

 
$
(634
)
 
$
(12
)
 
$
(646
)
 
$
753

Less:
 
 
 
 
 
 
 
 
 
Distributions and equity in earnings of unconsolidated affiliates
49

 
84

 
2

 
9

 
(19
)
Impairment charge on equity method investment
—

 
99

 
2


495


—

Capitalized interest
(29
)

(130
)

(140
)

(80
)

(36
)
Preference dividends - tax effected
(90
)
 
(14
)
 
(14
)
 
(14
)
 
(14
)
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
1,345

 
1,051

 
878

 
945

 
692

Amortization of capitalized interest
20


14


11


7


4

Total Earnings:
$
1,430

 
$
470

 
$
727

 
$
716

 
$
1,380

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
1,228


$
932


$
671


$
808


$
600

Interest capitalized
29


130


140


80


36

Amortization of debt issuance costs
35


33


32


26


25

Amortization of debt discount
(50
)

(67
)

9


6


7

Approximation of interest in rental expense
13


9


12


11


10

Preference dividends - tax effected
90

 
14

 
14

 
14

 
14

Total Fixed Charges:
$
1,345

 
$
1,051

 
$
878

 
$
945

 
$
692

Ratio of Earnings to Combined Fixed Charges and
Preference Dividends
1.06

 
0.45

 
0.83

 
0.76

 
1.99


(a)
The ratio coverage for the year ended December 31, 2013, 2012 and 2011 was less than 1:1. NRG would have needed to generate additional earnings of $581 million, $151 million and $229 million, respectively, to achieve a ratio coverage of 1:1.