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Schedule I - Condensed Financial Information of Registrant | 12 Months Ended
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Dec. 31, 2011
SCHEDULE I |
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT
UNCONSOLIDATED BALANCE SHEETS
|  |  | December 31,
|  |  | 2011 |  | 2010
|  |  | (in millions)
ASSETS |  |  |  |  |
Current Assets: |  |  |  |  |  |
Cash and cash equivalents |  | $ | 189 |  | $ | 594
Restricted cash |  |  | 50 |  |  | 10
Accounts and notes receivable from subsidiaries |  |  | 871 |  |  | 839
Deferred income taxes |  |  | 24 |  |  | 23
Prepaid expenses and other current assets |  |  | 43 |  |  | 31
Total current assets |  |  | 1,177 |  |  | 1,497
Investment in and advances to subsidiaries and affiliates |  |  | 12,088 |  |  | 10,741
Office Equipment: |  |  |  |  |  |
Cost |  |  | 81 |  |  | 93
Accumulated depreciation |  |  | (67) |  |  | (59)
Office equipment, net |  |  | 14 |  |  | 34
Other Assets: |  |  |  |  |  |
Deferred financing costs (net of accumulated amortization of $74 and $39, respectively) |  |  | 92 |  |  | 64
Deferred income taxes |  |  | 525 |  |  | 352
Debt service reserves and other deposits |  |  | 222 |  |  | 1
Total other assets |  |  | 839 |  |  | 417
| Total |  | $ | 14,118 |  | $ | 12,689
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |
Current Liabilities: |  |  |  |  |  |
Accounts payable |  | $ | 21 |  | $ | 14
Accounts and notes payable to subsidiaries |  |  | 317 |  |  | 253
Accrued and other liabilities |  |  | 199 |  |  | 175
Term loan |  |  | - |  |  | 200
Senior notes payable - current portion |  |  | 305 |  |  | 263
Total current liabilities |  |  | 842 |  |  | 905
Long-term Liabilities: |  |  |  |  |  |
Senior notes payable |  |  | 5,663 |  |  | 3,632
Junior subordinated notes and debentures payable |  |  | 517 |  |  | 517
Accounts and notes payable to subsidiaries |  |  | 1,007 |  |  | 1,055
Other long-term liabilities |  |  | 143 |  |  | 107
Total long-term liabilities |  |  | 7,330 |  |  | 5,311
Stockholders' equity: |  |  |  |  |  |
Common stock |  |  | 8 |  |  | 8
Additional paid-in capital |  |  | 8,507 |  |  | 8,444
Retained earnings |  |  | 678 |  |  | 620
Accumulated other comprehensive loss |  |  | (2,758) |  |  | (2,383)
Treasury stock |  |  | (489) |  |  | (216)
Total stockholders' equity |  |  | 5,946 |  |  | 6,473
| Total |  | $ | 14,118 |  | $ | 12,689
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF UNCONSOLIDATED OPERATIONS
|  | For the Years Ended December 31
|  | 2011 |  | 2010 |  | 2009
|  | (in millions)
Revenues from subsidiaries and affiliates |  | $ | 59 |  | $ | 34 |  | $ | 39
Equity in earnings of subsidiaries and affiliates |  |  | 357 |  |  | 590 |  |  | 983
Interest income |  |  | 199 |  |  | 279 |  |  | 131
General and administrative expenses |  |  | (241) |  |  | (261) |  |  | (218)
Interest expense |  |  | (490) |  |  | (461) |  |  | (485)
Income before income taxes |  |  | (116) |  |  | 181 |  |  | 450
Income tax benefit (expense) |  |  | 174 |  |  | (172) |  |  | 208
Net income |  | $ | 58 |  | $ | 9 |  | $ | 658
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF UNCONSOLIDATED COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2011, 2010, AND 2009
|  |  |  |  | 2011 |  | 2010 |  | 2009
|  |  |  |  | (in millions)
NET INCOME |  | $ | 58 |  | $ | 9 |  | $ | 658
| Available-for-sale securities activity: |  |  |  |  |  |  |  |  |
|  | Change in fair value of available-for-sale securities, net of income tax |  |  |  |  |  |  |  |  |
|  |  | (expense) benefit of $0, $3 and $(4), respectively |  |  | 1 |  |  | (5) |  |  | 8
|  | Reclassification to earnings, net of income tax (expense) benefit |  |  |  |  |  |  |  |  |
|  |  | of $0, $0 and $0, respectively |  |  | (2) |  |  | - |  |  | (2)
| Total change in fair value of available-for-sale securities |  |  | (1) |  |  | (5) |  |  | 6
| Foreign currency translation activity: |  |  |  |  |  |  |  |  |
|  | Foreign currency translation adjustments, net of income tax |  |  |  |  |  |  |  |  |
|  |  | (expense) benefit of $18, $(11) and $(78), respectively |  |  | (297) |  |  | 383 |  |  | 275
|  | Reclassification to earnings, net of income tax (expense) benefit |  |  |  |  |  |  |  |  |
|  |  | of $0, $0 and $0, respectively |  |  | 154 |  |  | 103 |  |  | (4)
| Total foreign currency translation adjustments, net of tax |  |  | (143) |  |  | 486 |  |  | 271
| Derivative activity: |  |  |  |  |  |  |  |  |
|  | Change in derivative fair value, net of income tax (expense) benefit |  |  |  |  |  |  |  |  |
|  |  | of $95, $37 and $21, respectively |  |  | (311) |  |  | (252) |  |  | 178
|  | Reclassification to earnings, net of income tax (expense) benefit |  |  |  |  |  |  |  |  |
|  |  | of $(21), $(20) and $(20), respectively |  |  | 121 |  |  | 172 |  |  | (138)
| Total change in fair value of derivatives, net of tax |  |  | (190) |  |  | (80) |  |  | 40
| Pension activity: |  |  |  |  |  |  |  |  |
|  | Net actuarial (loss) for the period, net of income tax (expense) benefit |  |  |  |  |  |  |  |  |
|  |  | of $25, $23 and $10, respectively |  |  | (43) |  |  | (23) |  |  | (23)
|  | Amortization of net actuarial loss, net of income tax (expense) benefit |  |  |  |  |  |  |  |  |
|  |  | of $(1), $(12) and $0, respectively |  |  | 2 |  |  | 1 |  |  | -
| Total change in unfunded pension obligation |  |  | (41) |  |  | (22) |  |  | (23)
OTHER COMPREHENSIVE INCOME (LOSS) |  |  | (375) |  |  | 379 |  |  | 294
COMPREHENSIVE INCOME (LOSS) |  | $ | (317) |  | $ | 388 |  | $ | 952
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF UNCONSOLIDATED CASH FLOWS
|  |  |  | For the Years Ended December 31,
|  |  |  | 2011 |  | 2010 |  | 2009
|  |  |  | (in millions)
|  | Net cash provided by operating activities |  | $ | 1,569 |  | $ | 488 |  | $ | 178
Investing Activities: |  |  |  |  |  |  |  |  |
| Investment in and advances to subsidiaries |  |  | (2,823) |  |  | (1,185) |  |  | (452)
| (Purchase)/sale of short term investments, net |  |  | 2 |  |  | (3) |  |  | (5)
| Return of capital |  |  | 363 |  |  | 300 |  |  | 166
| (Increase) decrease in restricted cash |  |  | (261) |  |  | (2) |  |  | 4
| Additions to property, plant and equipment |  |  | (28) |  |  | (22) |  |  | (8)
|  | Net cash used in investing activities |  |  | (2,747) |  |  | (912) |  |  | (295)
Financing Activities: |  |  |  |  |  |  |  |  |
| Borrowings under the revolver, net |  |  | 295 |  |  | - |  |  | -
| Borrowings of notes payable and other coupon bearing securities |  |  | 2,050 |  |  | - |  |  | 503
| Repayments of notes payable and other coupon bearing securities |  |  | (477) |  |  | (914) |  |  | (154)
| Loans (to) from subsidiaries |  |  | (744) |  |  | (154) |  |  | 205
| Proceeds from issuance of common stock |  |  | 3 |  |  | 1,569 |  |  | 14
| Purchase of treasury stock |  |  | (279) |  |  | (99) |  |  | -
| Payments for deferred financing costs |  |  | (75) |  |  | (12) |  |  | (23)
|  | Net cash provided by financing activities |  |  | 773 |  |  | 390 |  |  | 545
Effect of exchange rate changes on cash |  |  |  |  |  |  |  |  |
Increase (decrease) in cash and cash equivalents |  |  | (405) |  |  | (34) |  |  | 428
Cash and cash equivalents, beginning |  |  | 594 |  |  | 628 |  |  | 200
Cash and cash equivalents, ending |  | $ | 189 |  | $ | 594 |  | $ | 628
Supplemental Disclosures: |  |  |  |  |  |  |  |  |
| Cash payments for interest, net of amounts capitalized |  | $ | 392 |  | $ | 412 |  | $ | 410
| Cash payments for income taxes, net of refunds |  | $ | (6) |  | $ | - |  | $ | -
THE AES CORPORATION SCHEDULE I NOTES TO SCHEDULE I 1. Application of Significant Accounting Principles Accounting for Subsidiaries and Affiliates—The AES Corporation (the “Company”) has accounted for the earnings of its subsidiaries on the equity method in the unconsolidated financial information. Revenue—Construction management fees earned by the parent from its consolidated subsidiaries are eliminated. Income Taxes—P ositions taken on the Company's income tax return which satisfy a more-likely-than-not threshold will be recognized in the financial statements. The unconsolidated income tax expense or benefit computed for the Company reflects the tax assets and liabilities of th e Company on a stand-alone basis and the effect of filing a consolidated U.S. income tax return with certain other affiliated companies. Accounts and Notes Receivable from Subsidiaries— Certain prior period amounts have been reclassified to conform with current year presentation. S uch amounts have been shown in current or long-term assets based on terms in agreements with subsidiaries, but payment is dependent upon meeting conditions precedent in the subsidiary loan agreements. Selected Unconsolidated Balance Sheet Data:
|  | December 31, |  | December 31,
|  | 2011 |  | 2010
|  | (in millions)
Assets |  |  |  |  |  |
Investment in and advances to subsidiaries and affiliates |  | $ | 12,088 |  | $ | 10,741
Deferred income taxes |  | $ | 525 |  | $ | 352
Total other assets |  | $ | 839 |  | $ | 417
Total assets |  | $ | 14,118 |  | $ | 12,689
Liabilities and Stockholders' Equity |  |  |  |  |  |
Other long-term liabilities |  | $ | 143 |  | $ | 107
Total long-term liabilities |  | $ | 7,330 |  | $ | 5,311
Additional paid-in capital |  | $ | 8,507 |  | $ | 8,444
Retained earnings |  | $ | 678 |  | $ | 620
Accumulated other comprehensive loss |  | $ | (2,758) |  | $ | (2,383)
Total stockholders' equity |  | $ | 5,946 |  | $ | 6,473
Total liabilities and stockholders' equity |  | $ | 14,118 |  | $ | 12,689
Selected Unconsolidated Operations Data:
|  | For the Year Ended December 31,
|  | 2011 |  | 2010 |  | 2009
|  |  | (in millions)
Equity in earnings of subsidiaries and affiliates |  | $ | 357 |  | $ | 590 |  | $ | 983
Income before income taxes |  | $ | (116) |  | $ | 181 |  | $ | 450
Income tax benefit (expense) |  | $ | 174 |  | $ | (172) |  | $ | 208
Net income attributable to The AES Corporation |  | $ | 58 |  | $ | 9 |  | $ | 658
2. Notes Payable
|  |  |  |  |  |  | December 31,
|  |  | Interest Rate |  | Maturity |  | 2011 |  | 2010
|  |  |  |  |  |  | (in millions)
Senior Secured Term Loan |  | LIBOR + 1.75% |  | 2011 |  | $ | - |  | $ | 200
Senior Unsecured Note |  | 8.875% |  | 2011 |  |  | - |  |  | 129
Senior Unsecured Note |  | 8.375% |  | 2011 |  |  | - |  |  | 134
Senior Unsecured Note |  | 7.75% |  | 2014 |  |  | 500 |  |  | 500
Revolving Loan under Senior Secured Credit Facility(1) |  | LIBOR + 3.00% |  | 2015 |  |  | 295 |  |  | -
Senior Unsecured Note |  | 7.75% |  | 2015 |  |  | 500 |  |  | 500
Senior Unsecured Note |  | 9.75% |  | 2016 |  |  | 535 |  |  | 535
Senior Unsecured Note |  | 8.00% |  | 2017 |  |  | 1,500 |  |  | 1,500
Senior Secured Term Loan |  | LIBOR + 3.25% |  | 2018 |  |  | 1,042 |  |  | -
Senior Unsecured Note |  | 8.00% |  | 2020 |  |  | 625 |  |  | 625
Senior Unsecured Note |  | 7.375% |  | 2021 |  |  | 1,000 |  |  | -
Term Convertible Trust Securities |  | 6.75% |  | 2029 |  |  | 517 |  |  | 517
Unamortized discounts |  |  |  |  |  |  | (29) |  |  | (28)
SUBTOTAL |  |  |  |  |  | $ | 6,485 |  | $ | 4,612
| Less: Current maturities |  |  |  |  |  |  | (305) |  |  | (463)
Total |  |  |  |  |  | $ | 6,180 |  | $ | 4,149
(1) Subsequent to year end the loan was substantially repaid and is expected to be repaid in full prior to March 31, 2012. FUTURE MATURITIES OF DEBT—Recourse debt as of December 31, 2011 is scheduled to reach maturity as set forth in the table below:
| December 31, |  | Annual Maturities
|  |  |  | (in millions)
| 2012 | . |  | $ | 305
| 2013 | . |  |  | 11
| 2014 | . |  |  | 509
| 2015 | . |  |  | 511
| 2016 | . |  |  | 523
| Thereafter |  |  | 4,626
| Total debt |  | $ | 6,485
3. Dividends from Subsidiaries and Affiliates Cash dividends received from consolidated subsidiaries and from affiliates accounted for by the equity method were as follows:
|  | 2011 |  | 2010 |  | 2009
|  | (in millions)
Subsidiaries |  | $ | 1,059 |  | $ | 944 |  | $ | 948
Affiliates |  | $ | 25 |  | $ | 10 |  | $ | 60
4. Guarantees and Letters of Credit GUARANTEES—In connection with certain of its project financing, acquisition, and power purchase agreements, the Company has expressly undertaken limited obligations and commitments, most of which will only be effective or will be terminated upon the occurrence of future events. These obligations and commitments, excluding those collateralized by letter of credit and other obligations discussed below, were limited as of December 31, 2011, by the terms of the agreements, to an aggregate of approximately $340 million representing 20 agreements with individual exposures ranging from less than $1 million up to $53 million. LETTERS OF CREDIT—At December 31, 2011, the Company had $12 million in letters of credit outstanding under the senior unsecured credit facility representing 11 agreements with individual exposures ranging from less than $1 million up to $7 million, which operate to guarantee performance relating to certain project development and c onstruction activities and subsidiary operations. At December 31, 2011, the Company had $261 million in cash collateralized letters of credit outstanding representing 13 agreements with individual exposures ranging from less than $1 million up to $221 million, which operate to guarantee performance relating to certain project development and c onstruction activities and subsidiary operations. During 2011, the Company paid letter of credit fees ranging from 0.250% to 3.250% per annum on the outstanding amounts.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 9 -Section 06 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 7 -Section 05 -Paragraph c Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e24072-122690 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 24 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 12 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6921628&loc=d3e5283-111683 + Details
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