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Schedule I - Condensed Financial Information of Registrant
 12 Months Ended
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—Positions 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—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.

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 receivable from subsidiaries was previously reported as $871 million and has been restated to $602 million.  Investment in and advances to subsidiaries and affiliates was previously reported as $12,088 million and has been restated to $11,352 million.  Accrued and notes payable to subsidiaries was previously reported as $317 million and has been restated to $48 million.  Accounts and notes payable to subsidiaries was previously reported as $1,007 million 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 exposures 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 construction 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 million up to $189 million, which operate to guarantee performance relating to certain project development and construction 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.