EX-12.2 3 exhibit1222015.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,
 
2015
 
2014
 
2013(a)
 
2012(a)
 
2011(a)
 
(in millions except ratio)
Earnings:
 
 
 
 
 
 
 
 
 
(Loss)/income from continuing operations before income tax
$
(5,094
)

$
135


$
(634
)

$
(12
)
 
$
(646
)
Less:







 
 
Distributions and equity in earnings of unconsolidated affiliates
37


49


84


2

 
9

Impairment charge on equity method investment
56


—


99


2


495

Capitalized interest
(30
)
 
(29
)

(130
)

(140
)

(80
)
Preference dividends - tax effected
(32
)
 
(90
)
 
(14
)
 
(14
)
 
(14
)
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
1,205

 
1,345

 
1,051

 
878

 
945

Amortization of capitalized interest
21

 
20


14


11


7

Total Earnings:
$
(3,837
)

$
1,430

 
$
470

 
$
727

 
$
716

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
1,139

 
$
1,228


$
932


$
671


$
808

Interest capitalized
30

 
29


130


140


80

Amortization of debt issuance costs
37

 
35


33


32


26

Amortization of debt (premium)/discount
(48
)
 
(50
)

(67
)

9


6

Approximation of interest in rental expense
15

 
13


9


12


11

Preference dividends - tax effected
32

 
90

 
14

 
14

 
14

Total Fixed Charges:
$
1,205


$
1,345

 
$
1,051

 
$
878

 
$
945

Ratio of Earnings to Combined Fixed Charges and
Preference Dividends
(3.18
)
 
1.06

 
0.45

 
0.83

 
0.76


(a)
The ratio coverage for the year ended December 31, 2015, 2013, 2012, and 2011 was less than 1:1. NRG would have needed to generate additional earnings of $5,042 million, $581 million, $151 million and $229 million, respectively, to achieve a ratio coverage of 1:1.