EX-12.2 10 exhibit1222017.htm EXHIBIT 12.2 Exhibit


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,
 
2017
 
2016
 
2015
 
2014
 
2013(a)
 
(in millions except ratio)
Earnings:
 
 
 
 
 
 
 
 
 
(Loss)/income from continuing operations before income tax
$
(1,540
)
 
$
(978
)
 
$
(4,986
)

$
(74
)
 
$
(585
)
Less:







 
 
Distributions and equity in earnings of unconsolidated affiliates
55


54


37


49

 
84

Impairment charge on equity method investment
74


268


56


—


99

Capitalized interest
(34
)
 
(30
)

(25
)

(18
)

(116
)
Preference dividends - tax effected
—

 
(8
)
 
(32
)
 
(90
)
 
(14
)
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
939

 
950

 
1,010

 
1,054

 
801

Amortization of capitalized interest
22

 
21


20


19


16

Total Earnings:
$
(484
)

$
277

 
$
(3,920
)
 
$
940

 
$
285

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
831

 
$
839


$
891


$
889


$
622

Interest capitalized
34

 
30


25


18


116

Amortization of debt issuance costs
41

 
38


37


35


33

Amortization of debt (premium)/discount
19

 
19


10


8


4

Approximation of interest in rental expense
14

 
16


15


14


12

Preference dividends - tax effected
—

 
8

 
32

 
90

 
14

Total Fixed Charges:
$
939


$
950

 
$
1,010

 
$
1,054

 
$
801

Ratio of Earnings to Combined Fixed Charges and
Preference Dividends
(0.52
)
 
0.29

 
(3.88
)
 
0.89

 
0.36


(a)
The ratio coverage for the years ended December 31, 2017, 2016, 2015, 2014, and 2013 was less than 1:1. NRG would have needed to generate additional earnings of $1,416 million, $673 million, $4,930 million, $114 million, and $516 million, respectively, to achieve a ratio coverage of 1:1 for those years.