EX-12.1 9 exhibit1212017.htm EXHIBIT 12.1 Exhibit


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


 
For the Year Ended December 31,
 
2017
 
2016
 
2015
 
2014
 
2013
 
(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
)
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
939

 
942

 
978

 
964

 
787

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

Total Fixed Charges:
$
939


$
942

 
$
978

 
$
964

 
$
787

Ratio of Earnings to Combined Fixed Charges(a)
(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 $1,416 million, $665 million, $4,898 million, $24 million, and $502 million, respectively, to achieve a ratio coverage of 1:1 for those years.