EX-12.01 4 a2232103zex-12_01.htm EX-12.01

EXHIBIT 12.01

 

NRG YIELD OPERATING LLC AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Three Months
Ended

 

For the Year Ended December 31,

 

 

 

March 31, 2017 (a)

 

2016

 

2015

 

2014

 

2013(c)

 

2012(b)(c)

 

 

 

 

 

 

 

(in millions, except ratio)

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax

 

$

1

 

$

17

 

$

93

 

$

121

 

$

140

 

$

22

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated affiliates

 

(19

)

(60

)

(31

)

(22

)

(27

)

(26

)

Capitalized interest

 

—

 

—

 

—

 

—

 

(26

)

(35

)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

74

 

273

 

257

 

214

 

98

 

66

 

Distributions from unconsolidated affiliates

 

13

 

49

 

43

 

21

 

15

 

20

 

Amortization of capitalized interest

 

—

 

3

 

3

 

3

 

2

 

1

 

Total Earnings:

 

$

69

 

$

282

 

$

365

 

$

337

 

$

202

 

$

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

70

 

260

 

247

 

205

 

66

 

29

 

Capitalized interest

 

—

 

—

 

—

 

—

 

26

 

35

 

Amortization of debt issuance costs

 

3

 

8

 

7

 

6

 

5

 

1

 

Approximation of interest in rental expense

 

1

 

5

 

3

 

3

 

1

 

1

 

Total Fixed Charges:

 

$

74

 

$

273

 

$

257

 

$

214

 

$

98

 

$

66

 

Ratio of Earnings to Combined Fixed Charges

 

0.93

 

1.03

 

1.42

 

1.57

 

2.06

 

0.73

 

 

(a)   The ratio coverage for the three months ended March 31, 2017 was less than 1:1.  NRG Yield Operating LLC would have needed to generate additional earnings of $5 million to achieve a ratio coverage of 1:1 for that period.

 

(b)   The ratio coverage for the year ended December 31, 2012 was less than 1:1.  NRG Yield Operating LLC would have needed to generate additional earnings of $18 million to achieve a ratio coverage of 1:1 for that year.

 

(c)   For all periods prior to the Yield, Inc.’s initial public offering on July 22, 2013, the accompanying combined financial statements represent the combination of the assets that the Company acquired and were prepared using NRG’s historical basis in the assets and liabilities.  For the purposes of the combined financial statements, the term “NRG Yield Operating LLC and Subsidiaries” represents the accounting predecessor, or the combination of the acquired businesses.  For all periods subsequent to the Yield Inc. initial public offering, the accompanying audited consolidated financial statements represent the consolidated results of the Company.