EX-12.1 4 exhibit1212012.htm RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12.1 2012


EXHIBIT 12.1
NRG ENERGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES


 
For the Year Ended December 31,
 
2012
 
2011(a)
 
2010
 
2009
 
2008

 
(in millions except ratio)
Earnings:
 
 
 
 
 
 
 
 
 
Income/(loss) from continuing operations before income tax
$
252

 
$
(646
)
 
$
753

 
$
1,669

 
$
1,766

Net income/(loss) attributable to noncontrolling interest
20

 
—

 
(1
)
 
(1
)
 
—

Less:
 
 
 
 
 
 
 
 
 
Distributions and equity in earnings of unconsolidated affiliates
2

 
9

 
(19
)
 
(41
)
 
(44
)
Impairment charge on equity method investment
2

 
495

 
—

 
—

 
—

Capitalized interest
(140
)
 
(80
)
 
(36
)
 
(37
)
 
(45
)
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
864

 
931

 
678

 
703

 
634

Amortization of capitalized interest
11

 
7

 
4

 
3

 
1

Total Earnings:
$
1,011

 
$
716

 
$
1,379

 
$
2,296

 
$
2,312

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
671

 
$
808

 
$
600

 
$
610

 
$
546

Interest capitalized
140

 
80

 
36

 
37

 
45

Amortization of debt issuance costs
32

 
26

 
25

 
31

 
22

Amortization of debt discount
9

 
6

 
7

 
13

 
15

Approximation of interest in rental expense
12

 
11

 
10

 
12

 
6

Total Fixed Charges:
$
864

 
$
931

 
$
678

 
$
703

 
$
634

Ratio of Earnings to Combined Fixed Charges
1.17

 
0.77

 
2.03

 
3.27

 
3.65


(a)
The ratio coverage for the year ended December 31, 2011 was less than 1:1. NRG would have needed to generate additional earnings of $215 million to achieve a ratio coverage of 1:1.