EX-12.01 34 a2221325zex-12_01.htm EX-12.01

Exhibit 12.01

 

NRG ENERGY, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

For the Six Months

 

 

 

 

 

Ended June 30,

 

For the Year Ended December 31,

 

 

 

2014(a)

 

2013(a)

 

2012(a)

 

2011(a)

 

2010

 

2009

 

 

 

 

 

(in millions except ratio)

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income/(loss) from continuing operations before income tax

 

$

(304

)

 

$

(634

)

$

(12

)

$

(646

)

$

753

 

$

1,669

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions and equity in earnings of unconsolidated affiliates

 

39

 

 

84

 

2

 

9

 

(19

)

(41

)

Impairment charge on equity method investment

 

—

 

 

(99

)

2

 

495

 

—

 

—

 

Capitalized interest

 

(13

)

 

(130

)

(140

)

(80

)

(36

)

(37

)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

630

 

 

1,037

 

864

 

931

 

678

 

703

 

Amortization of capitalized interest

 

10

 

 

14

 

11

 

7

 

4

 

3

 

Total Earnings:

 

$

362

 

 

$

272

 

$

727

 

$

716

 

$

1,380

 

$

2,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

617

 

 

$

932

 

$

671

 

$

808

 

$

600

 

$

610

 

Interest capitalized

 

13

 

 

130

 

140

 

80

 

36

 

37

 

Amortization of debt issuance costs

 

18

 

 

33

 

32

 

26

 

25

 

31

 

Amortization of debt discount

 

(25

)

 

(67

)

9

 

6

 

7

 

13

 

Approximation of interest in rental expense

 

7

 

 

9

 

12

 

11

 

10

 

12

 

Total Fixed Charges:

 

$

630

 

 

$

1,037

 

$

864

 

$

931

 

$

678

 

$

703

 

Ratio of Earnings to Combined Fixed Charges

 

0.57

 

 

0.26

 

0.84

 

0.77

 

2.03

 

3.27

 

 

(a)         The ratio coverage for the six months ended June 30, 2014 and the years ended December 31, 2013, 2012 and 2011 was less than 1:1.  NRG Energy, Inc. would have needed to generate additional earnings of $268 million, $765 million, $137 million and $215 million, respectively, to achieve a ratio coverage of 1:1 for those years.