Attached files
| file | filename |
|---|---|
| 10-Q - 10-Q - Talen Energy Corp | tln-2015930x10q.htm |
| EX-3.5 - EXHIBIT 3.5 - Talen Energy Corp | tln-2015930xexx35.htm |
| EX-12.A - EXHIBIT 12.A - Talen Energy Corp | tln-2015930xexx12a.htm |
| EX-32.B - EXHIBIT 32.B - Talen Energy Corp | tln-2015930xexx32b.htm |
| EX-31.A - EXHIBIT 31.A - Talen Energy Corp | tln-2015930xexx31a.htm |
| EX-32.A - EXHIBIT 32.A - Talen Energy Corp | tln-2015930xexx32a.htm |
| EX-31.D - EXHIBIT 31.D - Talen Energy Corp | tln-2015930xexx31d.htm |
| EX-31.B - EXHIBIT 31.B - Talen Energy Corp | tln-2015930xexx31b.htm |
| EX-31.C - EXHIBIT 31.C - Talen Energy Corp | tln-2015930xexx31c.htm |
| XML - IDEA: XBRL DOCUMENT - Talen Energy Corp | R9999.htm |
Exhibit 12 (b)
TALEN ENERGY SUPPLY, LLC AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
Nine Months | |||||||||||||||||||||||
Ended September 30, 2015 | Years Ended December 31, | ||||||||||||||||||||||
2014 (a) | 2013 (a) | 2012 (a) | 2011 (a) | 2010 (a) | |||||||||||||||||||
Earnings, as defined: | |||||||||||||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes (b) (d) | $ | (169 | ) | $ | 303 | $ | (420 | ) | $ | 665 | $ | 1,061 | $ | 860 | |||||||||
Adjustments to reflect earnings from equity method investments on a cash basis | — | — | — | — | 1 | 7 | |||||||||||||||||
(169 | ) | 303 | (420 | ) | 665 | 1,062 | 867 | ||||||||||||||||
Total fixed charges as below | 163 | 161 | 226 | 238 | 259 | 426 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Capitalized interest | 13 | 22 | 35 | 37 | 38 | 27 | |||||||||||||||||
Interest expense and fixed charges related to discontinued operations | — | 10 | 14 | 12 | 6 | 169 | |||||||||||||||||
Total fixed charges included in Income (Loss) from Continuing Operations Before Income Taxes | 150 | 129 | 177 | 189 | 215 | 230 | |||||||||||||||||
Total earnings | $ | (19 | ) | $ | 432 | $ | (243 | ) | $ | 854 | $ | 1,277 | $ | 1,097 | |||||||||
Fixed charges, as defined: | |||||||||||||||||||||||
Interest charges | $ | 159 | $ | 156 | $ | 207 | $ | 214 | $ | 223 | $ | 387 | |||||||||||
Estimated interest component of operating rentals | 4 | 5 | 19 | 24 | 36 | 38 | |||||||||||||||||
Fixed charges of majority-owned share of 50% or less-owned persons | — | — | — | — | — | 1 | |||||||||||||||||
Total fixed charges (c) | $ | 163 | $ | 161 | $ | 226 | $ | 238 | $ | 259 | $ | 426 | |||||||||||
Ratio of earnings to fixed charges (b) | (0.1 | ) | 2.7 | (1.1 | ) | 3.6 | 4.9 | 2.6 | |||||||||||||||
(a) | Years 2010 through 2014 reflect the reclassification of certain Talen Montana hydroelectric generating facilities and related assets as Discontinued Operations. See Note 7 to the Financial Statements for additional information. | |
(b) | To facilitate the sale of the hydroelectric generating facilities referred to in (a) above, in December 2013, Talen Montana terminated a lease agreement which resulted in a $697 million charge. See Talen Energy Supply's Note 4 to the Financial Statements in the 2015 Prospectus for additional information. As a result of these transactions, earnings were lower, which resulted in less than one-to-one coverage. The adjusted amount of the deficiency, or the amount of fixed charges in excess of earnings, was $469 million. | |
(c) | Interest on unrecognized tax benefits is not included in fixed charges. | |
(d) | In September 2015, a $588 million non-cash, pre-tax goodwill and other long-lived asset impairment charge was recorded. See Note 15 to the Financial Statements for additional information. As a result of this non-cash charge, earnings were lower, which resulted in less than one-to-one coverage. The adjusted amount of the deficiency, or the amount of fixed charges in excess of earnings, was $182 million. | |