Attached files
file | filename |
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EX-32.A - EXHIBIT 32.A - Talen Energy Corp | tln-2016930xexx32a.htm |
10-Q - 10-Q - Talen Energy Corp | tln-2016930x10q.htm |
XML - IDEA: XBRL DOCUMENT - Talen Energy Corp | R9999.htm |
EX-32.B - EXHIBIT 32.B - Talen Energy Corp | tln-2016930xexx32b.htm |
EX-31.D - EXHIBIT 31.D - Talen Energy Corp | tln-2016930xexx31d.htm |
EX-31.C - EXHIBIT 31.C - Talen Energy Corp | tln-2016930xexx31c.htm |
EX-31.B - EXHIBIT 31.B - Talen Energy Corp | tln-2016930xexx31b.htm |
EX-31.A - EXHIBIT 31.A - Talen Energy Corp | tln-2016930xexx31a.htm |
EX-12.B - EXHIBIT 12.B - Talen Energy Corp | tln-2016930xex12b.htm |
EX-10.1 - EXHIBIT 10.1 - Talen Energy Corp | tln2016930ex101.htm |
Exhibit 12 (a)
TALEN ENERGY CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
Nine Months | |||||||||||||||||||||||
Ended September 30, 2016 | Years Ended December 31, | ||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Earnings, as defined: | |||||||||||||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes (a) | $ | 393 | $ | (368 | ) | $ | 303 | $ | (420 | ) | $ | 665 | $ | 1,061 | |||||||||
Adjustments to reflect earnings from equity method investments on a cash basis | — | — | — | — | — | 1 | |||||||||||||||||
393 | (368 | ) | 303 | (420 | ) | 665 | 1,062 | ||||||||||||||||
Total fixed charges as below | 197 | 236 | 161 | 226 | 238 | 259 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Capitalized interest | 13 | 20 | 22 | 35 | 37 | 38 | |||||||||||||||||
Interest expense and fixed charges related to discontinued operations | — | — | 10 | 14 | 12 | 6 | |||||||||||||||||
Total fixed charges included in Income (Loss) from Continuing Operations Before Income Taxes | 184 | 216 | 129 | 177 | 189 | 215 | |||||||||||||||||
Total earnings | $ | 577 | $ | (152 | ) | $ | 432 | $ | (243 | ) | $ | 854 | $ | 1,277 | |||||||||
Fixed charges, as defined: | |||||||||||||||||||||||
Interest charges | $ | 192 | $ | 231 | $ | 156 | $ | 207 | $ | 214 | $ | 223 | |||||||||||
Estimated interest component of operating rentals | 5 | 5 | 5 | 19 | 24 | 36 | |||||||||||||||||
Total fixed charges (b) | $ | 197 | $ | 236 | $ | 161 | $ | 226 | $ | 238 | $ | 259 | |||||||||||
Ratio of earnings to fixed charges (a) | 2.9 | (0.6 | ) | 2.7 | (1.1 | ) | 3.6 | 4.9 | |||||||||||||||
(a) | The nine months ended September 30, 2016 includes $563 million of net pre-tax gains related to the sale of certain generation facilities and $214 million in pre-tax impairment charges primarily related to the Bell Bend COLA. See Notes 8 and 13 to the Financial Statements for additional information. |
In 2015, $657 million non-cash, pre-tax goodwill and other long-lived asset impairment charges were recorded. See Note 16 to the Financial Statements in Talen Energy's 2015 10-K for additional information. As a result of these non-cash charges, earnings were lower in 2015, 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 $388 million.
To facilitate the sale of its hydroelectric generating facilities in 2014, in December 2013, Talen Montana terminated a lease agreement which resulted in a $697 million charge. See Note 6 to the Financial Statements in Talen Energy's 2015 10-K for additional information. As a result of these transactions, earnings were lower in 2013, 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.
(b) | Interest on unrecognized tax benefits is not included in fixed charges. |