EX-12.01 21 a2236755zex-12_01.htm EX-12.01

Exhibit 12.01

 

RATIO OF EARNINGS TO FIXED CHARGES

 

The following table contains our consolidated ratio of earnings to fixed charges for the periods indicated. You should read these ratios in connection with our consolidated financial statements, including the notes to those financial statements (amounts in table in millions, except ratios).

 

 

 

For the six
months
ended
June 30,

 

For the years ended
December 31,

 

 

 

2018

 

2017(a)

 

2016(a)

 

2015(a)

 

2014(a)

 

2013(a)

 

 

 

(in millions except ratio)

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income/(loss) from continuing operations before income tax

 

$

361

 

$

(1,540

)

$

(978

)

$

(4,986

)

$

(74

)

$

(585

)

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions and equity earnings of income of unconsolidated affiliates

 

27

 

55

 

54

 

37

 

49

 

84

 

Impairment charge on equity method investments

 

41

 

74

 

268

 

56

 

—

 

99

 

Capitalized interest

 

(17

)

(34

)

(30

)

(25

)

(18

)

(116

)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges

 

394

 

939

 

942

 

978

 

964

 

787

 

Amortization of capitalized interest

 

12

 

22

 

21

 

20

 

19

 

16

 

Total Earnings:

 

$

818

 

$

(484

)

$

277

 

$

(3,920

)

$

940

 

$

285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

342

 

$

831

 

$

839

 

$

891

 

$

889

 

$

622

 

Interest capitalized

 

17

 

34

 

30

 

25

 

18

 

116

 

Amortization of debt issuance costs

 

18

 

41

 

38

 

37

 

35

 

33

 

Amortization of debt (premium)/discount

 

9

 

19

 

19

 

10

 

8

 

4

 

Approximation of interest in rental expense

 

8

 

14

 

16

 

15

 

14

 

12

 

Total Fixed Charges:

 

$

394

 

$

939

 

$

942

 

$

978

 

$

964

 

$

787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Combined Fixed Charges

 

2.08

 

(0.52

)

0.29

 

(4.01

)

0.98

 

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 $1,423 million, $665 million, $4,898 million, $24 million and $502 million, respectively, to achieve a ratio coverage of 1:1 for those years.