EX-12.01 8 a2230790zex-12_01.htm EX-12.01

EXHIBIT 12.01

 

NRG ENERGY, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

For the Year Ended December 31,

 

 

 

2016

 

2015

 

2014

 

2013(a)

 

2012(a)

 

 

 

(in millions except ratio)

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

(Loss)/income from continuing operations before income tax

 

$

(875

)

$

(5,094

)

$

135

 

$

(634

)

$

(12

)

Less:

 

 

 

 

 

 

 

 

 

 

 

Distributions and equity in earnings of unconsolidated affiliates

 

54

 

37

 

49

 

84

 

2

 

Impairment charge on equity method investment

 

268

 

56

 

—

 

99

 

2

 

Capitalized interest

 

(43

)

(30

)

(29

)

(130

)

(140

)

Add:

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

1,121

 

1,173

 

1,255

 

1,037

 

864

 

Amortization of capitalized interest

 

21

 

21

 

20

 

14

 

11

 

Total Earnings:

 

$

546

 

$

(3,837

)

$

1,430

 

$

470

 

$

727

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

1,057

 

$

1,139

 

$

1,228

 

$

932

 

$

671

 

Interest capitalized

 

43

 

30

 

29

 

130

 

140

 

Amortization of debt issuance costs

 

38

 

37

 

35

 

33

 

32

 

Amortization of debt (premium)/discount

 

(34

)

(48

)

(50

)

(67

)

9

 

Approximation of interest in rental expense

 

17

 

15

 

13

 

9

 

12

 

Total Fixed Charges:

 

$

1,121

 

$

1,173

 

$

1,255

 

$

1,037

 

$

864

 

Ratio of Earnings to Combined Fixed Charges

 

0.49

 

(3.27

)

1.14

 

0.45

 

0.84

 

 

(a)         The ratio coverage for the year ended December 31, 2016, 2015, 2013, and 2012 was less than 1:1.  NRG would have needed to generate additional earnings of $575 million, $5,010 million, $567 million, and $137 million, respectively, to achieve a ratio coverage of 1:1 for those years.