Exhibit 12.01
RATIO OF EARNINGS TO FIXED CHARGES
The following table contains our consolidated ratio of earnings to fixed charges for the periods indicated. You should read these ratios in connection with our consolidated financial statements, including the notes to those financial statements (amounts in table in millions, except ratios).
| | For the six
months
ended
June 30, | | For the years ended
December 31, | |
| | 2018 | | 2017(a) | | 2016(a) | | 2015(a) | | 2014(a) | | 2013(a) | |
| | (in millions except ratio) | |
Earnings: | | | | | | | | | | | | | | | | | | | |
Income/(loss) from continuing operations before income tax | | $ | 361 | | $ | (1,540 | ) | $ | (978 | ) | $ | (4,986 | ) | $ | (74 | ) | $ | (585 | ) |
Less: | | | | | | | | | | | | | |
Distributions and equity earnings of income of unconsolidated affiliates | | 27 | | 55 | | 54 | | 37 | | 49 | | 84 | |
Impairment charge on equity method investments | | 41 | | 74 | | 268 | | 56 | | — | | 99 | |
Capitalized interest | | (17 | ) | (34 | ) | (30 | ) | (25 | ) | (18 | ) | (116 | ) |
Add: | | | | | | | | | | | | | |
Fixed Charges | | 394 | | 939 | | 942 | | 978 | | 964 | | 787 | |
Amortization of capitalized interest | | 12 | | 22 | | 21 | | 20 | | 19 | | 16 | |
Total Earnings: | | $ | 818 | | $ | (484 | ) | $ | 277 | | $ | (3,920 | ) | $ | 940 | | $ | 285 | |
| | | | | | | | | | | | | |
Fixed Charges: | | | | | | | | | | | | | |
Interest expense | | $ | 342 | | $ | 831 | | $ | 839 | | $ | 891 | | $ | 889 | | $ | 622 | |
Interest capitalized | | 17 | | 34 | | 30 | | 25 | | 18 | | 116 | |
Amortization of debt issuance costs | | 18 | | 41 | | 38 | | 37 | | 35 | | 33 | |
Amortization of debt (premium)/discount | | 9 | | 19 | | 19 | | 10 | | 8 | | 4 | |
Approximation of interest in rental expense | | 8 | | 14 | | 16 | | 15 | | 14 | | 12 | |
Total Fixed Charges: | | $ | 394 | | $ | 939 | | $ | 942 | | $ | 978 | | $ | 964 | | $ | 787 | |
| | | | | | | | | | | | | |
Ratio of Earnings to Combined Fixed Charges | | 2.08 | | (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 $1,423 million, $665 million, $4,898 million, $24 million and $502 million, respectively, to achieve a ratio coverage of 1:1 for those years.
