EXHIBIT 12.01
NRG ENERGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| | For the Year Ended December 31, | |
| | 2016 | | 2015 | | 2014 | | 2013(a) | | 2012(a) | |
| | (in millions except ratio) | |
Earnings: | | | | | | | | | | | |
(Loss)/income from continuing operations before income tax | | $ | (875 | ) | $ | (5,094 | ) | $ | 135 | | $ | (634 | ) | $ | (12 | ) |
Less: | | | | | | | | | | | |
Distributions and equity in earnings of unconsolidated affiliates | | 54 | | 37 | | 49 | | 84 | | 2 | |
Impairment charge on equity method investment | | 268 | | 56 | | — | | 99 | | 2 | |
Capitalized interest | | (43 | ) | (30 | ) | (29 | ) | (130 | ) | (140 | ) |
Add: | | | | | | | | | | | |
Fixed charges | | 1,121 | | 1,173 | | 1,255 | | 1,037 | | 864 | |
Amortization of capitalized interest | | 21 | | 21 | | 20 | | 14 | | 11 | |
Total Earnings: | | $ | 546 | | $ | (3,837 | ) | $ | 1,430 | | $ | 470 | | $ | 727 | |
| | | | | | | | | | | |
Fixed Charges: | | | | | | | | | | | |
Interest expense | | $ | 1,057 | | $ | 1,139 | | $ | 1,228 | | $ | 932 | | $ | 671 | |
Interest capitalized | | 43 | | 30 | | 29 | | 130 | | 140 | |
Amortization of debt issuance costs | | 38 | | 37 | | 35 | | 33 | | 32 | |
Amortization of debt (premium)/discount | | (34 | ) | (48 | ) | (50 | ) | (67 | ) | 9 | |
Approximation of interest in rental expense | | 17 | | 15 | | 13 | | 9 | | 12 | |
Total Fixed Charges: | | $ | 1,121 | | $ | 1,173 | | $ | 1,255 | | $ | 1,037 | | $ | 864 | |
Ratio of Earnings to Combined Fixed Charges | | 0.49 | | (3.27 | ) | 1.14 | | 0.45 | | 0.84 | |
(a) The ratio coverage for the year ended December 31, 2016, 2015, 2013, and 2012 was less than 1:1. NRG would have needed to generate additional earnings of $575 million, $5,010 million, $567 million, and $137 million, respectively, to achieve a ratio coverage of 1:1 for those years.
