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Schedule I - Condensed Financial Information of Registrant | 12 Months Ended
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Dec. 31, 2012
SCHEDULE I |
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
BALANCE SHEETS
|  |  | December 31,
|  |  | 2012 |  | 2011
|  |  | (in millions)
ASSETS |  |  |  |  |
Current Assets: |  |  |  |  |  |
Cash and cash equivalents |  | $ | 305 |  | $ | 189
Restricted cash |  |  | 227 |  |  | 50
Accounts and notes receivable from subsidiaries |  |  | 594 |  |  | 602
Deferred income taxes |  |  | 8 |  |  | 24
Prepaid expenses and other current assets |  |  | 28 |  |  | 43
Total current assets |  |  | 1,162 |  |  | 908
Investment in and advances to subsidiaries and affiliates |  |  | 9,393 |  |  | 11,352
Office Equipment: |  |  |  |  |  |
Cost |  |  | 86 |  |  | 81
Accumulated depreciation |  |  | (72) |  |  | (67)
Office equipment, net |  |  | 14 |  |  | 14
Other Assets: |  |  |  |  |  |
Deferred financing costs (net of accumulated amortization of $58 and $74, respectively) |  |  | 76 |  |  | 92
Deferred income taxes |  |  | 573 |  |  | 525
Debt service reserves and other deposits |  |  | - |  |  | 222
Total other assets |  |  | 649 |  |  | 839
| Total |  | $ | 11,218 |  | $ | 13,113
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |
Current Liabilities: |  |  |  |  |  |
Accounts payable |  | $ | 15 |  | $ | 21
Accounts and notes payable to subsidiaries |  |  | 50 |  |  | 48
Accrued and other liabilities |  |  | 241 |  |  | 216
Senior notes payable - current portion |  |  | 11 |  |  | 305
Total current liabilities |  |  | 317 |  |  | 590
Long-term Liabilities: |  |  |  |  |  |
Senior notes payable |  |  | 5,434 |  |  | 5,663
Junior subordinated notes and debentures payable |  |  | 517 |  |  | 517
Accounts and notes payable to subsidiaries |  |  | 242 |  |  | 254
Other long-term liabilities |  |  | 139 |  |  | 143
Total long-term liabilities |  |  | 6,332 |  |  | 6,577
Stockholders' equity: |  |  |  |  |  |
Common stock |  |  | 8 |  |  | 8
Additional paid-in capital |  |  | 8,525 |  |  | 8,507
Retained earnings (accumulated deficit) |  |  | (264) |  |  | 678
Accumulated other comprehensive loss |  |  | (2,920) |  |  | (2,758)
Treasury stock |  |  | (780) |  |  | (489)
Total stockholders' equity |  |  | 4,569 |  |  | 5,946
| Total |  | $ | 11,218 |  | $ | 13,113
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
STATEMENTS OF OPERATIONS
|  | For the Years Ended December 31
|  | 2012 |  | 2011 |  | 2010
|  | (in millions)
Revenue from subsidiaries and affiliates |  | $ | 20 |  | $ | 59 |  | $ | 34
Equity in earnings (loss) of subsidiaries and affiliates |  |  | (437) |  |  | 352 |  |  | 590
Interest income |  |  | 119 |  |  | 158 |  |  | 279
General and administrative expenses |  |  | (133) |  |  | (241) |  |  | (261)
Interest expense |  |  | (502) |  |  | (444) |  |  | (461)
Income (loss) before income taxes |  |  | (933) |  |  | (116) |  |  | 181
Income tax benefit (expense) |  |  | 21 |  |  | 174 |  |  | (172)
Net income (loss) |  | $ | (912) |  | $ | 58 |  | $ | 9
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2012, 2011, AND 2010
|  |  |  |  | 2012 |  | 2011 |  | 2010
|  |  |  |  | (in millions)
NET INCOME (LOSS) |  | $ | (912) |  | $ | 58 |  | $ | 9
| Available-for-sale securities activity: |  |  |  |  |  |  |  |  |
|  | Change in fair value of available-for-sale securities, net of income tax |  |  |  |  |  |  |  |  |
|  |  | (expense) benefit of $0, $0 and $3, respectively |  |  | 1 |  |  | 1 |  |  | (5)
|  | Reclassification to earnings, net of income tax (expense) benefit |  |  |  |  |  |  |  |  |
|  |  | of $0, $0 and $0, respectively |  |  | (1) |  |  | (2) |  |  | -
| Total change in fair value of available-for-sale securities |  |  | - |  |  | (1) |  |  | (5)
| Foreign currency translation activity: |  |  |  |  |  |  |  |  |
|  | Foreign currency translation adjustments, net of income tax |  |  |  |  |  |  |  |  |
|  |  | (expense) benefit of $0, $18 and $(11), respectively |  |  | (127) |  |  | (297) |  |  | 383
|  | Reclassification to earnings, net of income tax (expense) benefit |  |  |  |  |  |  |  |  |
|  |  | of $0, $0 and $0, respectively |  |  | 37 |  |  | 154 |  |  | 103
| Total foreign currency translation adjustments, net of tax |  |  | (90) |  |  | (143) |  |  | 486
| Derivative activity: |  |  |  |  |  |  |  |  |
|  | Change in derivative fair value, net of income tax (expense) benefit |  |  |  |  |  |  |  |  |
|  |  | of $33, $95 and $37, respectively |  |  | (108) |  |  | (311) |  |  | (252)
|  | Reclassification to earnings, net of income tax (expense) benefit |  |  |  |  |  |  |  |  |
|  |  | of $(51), $(21) and $(20), respectively |  |  | 161 |  |  | 121 |  |  | 172
| Total change in fair value of derivatives, net of tax |  |  | 53 |  |  | (190) |  |  | (80)
| Pension activity: |  |  |  |  |  |  |  |  |
|  | Prior service cost for the period, net of tax |  |  | (1) |  |  | - |  |  | -
|  | Net actuarial (loss) for the period, net of income tax (expense) benefit |  |  |  |  |  |  |  |  |
|  |  | of $64, $25 and $23, respectively |  |  | (130) |  |  | (43) |  |  | (23)
|  | Amortization of net actuarial loss, net of income tax (expense) benefit |  |  |  |  |  |  |  |  |
|  |  | of $(5), $(1) and $(12), respectively |  |  | 6 |  |  | 2 |  |  | 1
| Total change in unfunded pension obligation |  |  | (125) |  |  | (41) |  |  | (22)
OTHER COMPREHENSIVE INCOME (LOSS) |  |  | (162) |  |  | (375) |  |  | 379
COMPREHENSIVE INCOME (LOSS) |  | $ | (1,074) |  | $ | (317) |  | $ | 388
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
STATEMENTS OF CASH FLOWS
|  |  |  | For the Years Ended December 31,
|  |  |  | 2012 |  | 2011 |  | 2010
|  |  |  | (in millions)
|  | Net cash provided by operating activities |  | $ | 694 |  | $ | 719 |  | $ | 488
Investing Activities: |  |  |  |  |  |  |  |  |
| Investment in and advances to subsidiaries |  |  | (168) |  |  | (2,655) |  |  | (1,185)
| Return of capital |  |  | 660 |  |  | 304 |  |  | 300
| (Increase) decrease in restricted cash |  |  | 44 |  |  | (261) |  |  | (2)
| Additions to property, plant and equipment |  |  | (24) |  |  | (28) |  |  | (22)
| (Purchase) sale of short term investments, net |  |  | 1 |  |  | 2 |  |  | (3)
|  | Net cash used in investing activities |  |  | 513 |  |  | (2,638) |  |  | (912)
Financing Activities: |  |  |  |  |  |  |  |  |
| Borrowings (payments) under the revolver, net |  |  | (295) |  |  | 295 |  |  | -
| Borrowings of notes payable and other coupon bearing securities |  |  | - |  |  | 2,050 |  |  | -
| Repayments of notes payable and other coupon bearing securities |  |  | (236) |  |  | (477) |  |  | (914)
| Loans (to) from subsidiaries |  |  | (236) |  |  | (5) |  |  | (154)
| Purchase of treasury stock |  |  | (301) |  |  | (279) |  |  | (99)
| Proceeds from issuance of common stock |  |  | 8 |  |  | 3 |  |  | 1,569
| Common stock dividends paid |  |  | (30) |  |  | - |  |  | -
| Payments for deferred financing costs |  |  | (1) |  |  | (75) |  |  | (12)
|  | Net cash provided by financing activities |  |  | (1,091) |  |  | 1,512 |  |  | 390
Increase (decrease) in cash and cash equivalents |  |  | 116 |  |  | (405) |  |  | (34)
Cash and cash equivalents, beginning |  |  | 189 |  |  | 594 |  |  | 628
Cash and cash equivalents, ending |  | $ | 305 |  | $ | 189 |  | $ | 594
Supplemental Disclosures: |  |  |  |  |  |  |  |  |
| Cash payments for interest, net of amounts capitalized |  | $ | 479 |  | $ | 392 |  | $ | 412
| Cash payments for income taxes, net of refunds |  | $ | - |  | $ | (6) |  | $ | -
THE AES CORPORATION SCHEDULE I NOTES TO SCHEDULE I 1. Application of Significant Accounting Principles The Schedule I Condensed Financial Information of the Parent includes the accounts of The AES Corporation (the “Parent Company”) and certain holding companies. Accounting for Subsidiaries and Affiliates—The Parent Company has accounted for the earnings of its subsidiaries on the equity method in the financial information. Income Taxes—P ositions taken on the Parent Company's income tax return which satisfy a more-likely-than-not threshold will be recognized in the financial statements. The income tax expense or benefit computed for the Parent Company reflects the tax assets and liabilities 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—A mounts 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. Correction of an Error – Certain amounts due to or from subsidiaries were not properly eliminated in the preparation of the Schedule I Condensed Financial Information of Parent for the year ended December 31, 2011 included in the Company's 2011 Form 10-K. As a result, the December 31, 2011 balance sheet information of accounts and notes receivable from subsidiaries, investments in and advances to subsidiaries and affiliates, and current and long-term accounts and notes payable to subsidiaries were overstated. Accounts and notes r eceivable from subsidiaries was previously r eported as $871 million and has been restated to $602 million. Investment in and advances to subsidiaries and affiliates w as previously reported as $12,088 million and ha s been restated to $11,352 million. Accrued and notes payable to subsidiaries w as previously reported as $317 million and ha s been restated to $48 million. Accounts and notes payable to subsidiaries w as previously reported as $1,007 millio n and has been restated to $254 million. Net cash provided by operating activities previously reported on the statement of cash flows for the year ended December 31, 2011 was previously reported as $1,569 million and has now been restated to $719 million. Net cash used in investing activities was previously reported as $2,747 million and has now been restated to $2,638 million. Net cash provided by financing activities previously reported as $773 million was restated to $1,512 million. Interest income and interest expense previously reported on the statement of operations for the year ended December 31, 2011 were each reduced by approximately $50 million as a result of these adjustments. There was no impact to Parent Company net income. There was no impact to the Schedule 1 Condensed Financial Information of Parent for the twelve months ended December 31, 2010 or the statement of comprehensive income for the year ended December 31, 2011 as a result of these adjustments. Further, there was no impact to the Company's consolidated financial statements for 2012, 2011 or 2010 as a result of these adjustments. Selected Balance Sheet Data:
|  | December 31, |  | December 31,
|  | 2012 |  | 2011
|  | (in millions)
Assets |  |  |  |  |  |
Investment in and advances to subsidiaries and affiliates |  | $ | 9,393 |  | $ | 11,352
Deferred income taxes - long term |  | $ | 573 |  | $ | 525
Total other assets |  | $ | 649 |  | $ | 839
Total assets |  | $ | 11,218 |  | $ | 13,113
Liabilities and Stockholders' Equity |  |  |  |  |  |
Other long-term liabilities |  | $ | 139 |  | $ | 143
Total long-term liabilities |  | $ | 6,332 |  | $ | 6,577
Additional paid-in capital |  | $ | 8,525 |  | $ | 8,507
Retained earnings (accumulated deficit) |  | $ | (264) |  | $ | 678
Accumulated other comprehensive loss |  | $ | (2,920) |  | $ | (2,758)
Total stockholders' equity |  | $ | 4,569 |  | $ | 5,946
Total liabilities and stockholders' equity |  | $ | 11,218 |  | $ | 13,113
Selected Operations Data:
|  | For the Year Ended December 31,
|  | 2012 |  | 2011 |  | 2010
|  |  | (in millions)
Equity in earnings (loss) of subsidiaries and affiliates |  | $ | (437) |  | $ | 352 |  | $ | 590
Income (loss) before income taxes |  | $ | (933) |  | $ | (116) |  | $ | 181
Income tax benefit (expense) |  | $ | 21 |  | $ | 174 |  | $ | (172)
Net income (loss) attributable to The AES Corporation |  | $ | (912) |  | $ | 58 |  | $ | 9
2. Senior Notes
|  |  |  |  |  |  | December 31,
|  |  | Interest Rate |  | Maturity |  | 2012 |  | 2011
|  |  |  |  |  |  | (in millions)
Senior Unsecured Note |  | 7.75% |  | 2014 |  | $ | 500 |  | $ | 500
Revolving Loan under Senior Secured Credit Facility |  | 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 |  |  | 807 |  |  | 1,042
Senior Unsecured Note |  | 8.00% |  | 2020 |  |  | 625 |  |  | 625
Senior Unsecured Note |  | 7.38% |  | 2021 |  |  | 1,000 |  |  | 1,000
Term Convertible Trust Securities |  | 6.75% |  | 2029 |  |  | 517 |  |  | 517
Unamortized discounts |  |  |  |  |  |  | (22) |  |  | (29)
SUBTOTAL |  |  |  |  |  |  | 5,962 |  |  | 6,485
| Less: Current maturities |  |  |  |  |  |  | (11) |  |  | (305)
Total |  |  |  |  |  | $ | 5,951 |  | $ | 6,180
FUTURE MATURITIES OF DEBT—Recourse debt as of December 31, 2012 is scheduled to reach maturity as set forth in the table below:
| December 31, |  | Annual Maturities
|  |  |  | (in millions)
| 2013 | . |  | $ | 11
| 2014 | . |  |  | 510
| 2015 | . |  |  | 511
| 2016 | . |  |  | 527
| 2017 | . |  |  | 1,510
| Thereafter |  |  | 2,893
| Total debt |  | $ | 5,962
3. Dividends from Subsidiaries and Affiliates Cash dividends received from consolidated subsidiaries and from affiliates accounted for by the equity method were as follows:
|  | 2012 |  | 2011 |  | 2010
|  | (in millions)
Subsidiaries |  | $ | 1,049 |  | $ | 1,059 |  | $ | 944
Affiliates |  | $ | 5 |  | $ | 25 |  | $ | 10
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, 2012, by the terms of the agreements, to an aggregate of approximately $568 million representing 19 agreements with individual exp osures ranging from less than $1 million up to $237 million. LETTERS OF CREDIT—At December 31, 2012, the Company had $5 million in letters of credit outstanding under the senior unsecured credit facility representing 6 agreements with individual exposures ranging from less than $1 million and up to $2 million, which operate to guarantee performance relating to certain project development and c onstruction activities and subsidiary operations. At December 31, 2012, the Company had $215 million in cash collateralized letters of credit outstanding representing 9 agreements with individual exposures ranging from less than $1 millio n up to $189 million, which operate to guarantee performance relating to certain project development and c onstruction activities and subsidiary operations. During 2012, 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 -Section 04 -Paragraph c -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 12 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 06 -Article 9 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 05 -Paragraph c -Article 7 Reference 5: 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=7656940&loc=d3e5283-111683 Reference 6: 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 7: 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. + Details
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