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Schedule I - Condensed Financial Information of Parent
 12 Months Ended
Dec. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
BALANCE SHEETS
 
 
December 31,
 
 
2014
 
2013
 
 
(in millions)
ASSETS
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
 
$
511

 
$
131

Restricted cash
 
81

 
177

Accounts and notes receivable from subsidiaries
 
380

 
708

Deferred income taxes
 
142

 
4

Prepaid expenses and other current assets
 
57

 
39

Total current assets
 
1,171

 
1,059

Investment in and advances to subsidiaries and affiliates
 
9,063

 
9,245

Office Equipment:
 
 
 
 
Cost
 
157

 
78

Accumulated depreciation
 
(114
)
 
(65
)
Office equipment, net
 
43

 
13

Other Assets:
 
 
 
 
Deferred financing costs (net of accumulated amortization of $81 and $71, respectively)
 
61

 
75

Deferred income taxes
 
872

 
857

Other Assets
 
1

 
1

Total other assets
 
934

 
933

Total
 
$
11,211

 
$
11,250

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
Current Liabilities:
 
 
 
 
Accounts payable
 
$
25

 
$
15

Accounts and notes payable to subsidiaries
 
80

 
49

Accrued and other liabilities
 
212

 
216

Senior notes payable—current portion
 
151

 
118

Total current liabilities
 
468

 
398

Long-term Liabilities:
 
 
 
 
Senior notes payable
 
4,590

 
5,034

Junior subordinated notes and debentures payable
 
517

 
517

Accounts and notes payable to subsidiaries
 
1,352

 
859

Other long-term liabilities
 
12

 
112

Total long-term liabilities
 
6,471

 
6,522

Stockholders’ equity:
 
 
 
 
Common stock
 
8

 
8

Additional paid-in capital
 
8,409

 
8,443

Retained Earnings (Accumulated deficit)
 
512

 
(150
)
Accumulated other comprehensive loss
 
(3,286
)
 
(2,882
)
Treasury stock
 
(1,371
)
 
(1,089
)
Total stockholders’ equity
 
4,272

 
4,330

Total
 
$
11,211

 
$
11,250


See Notes to Schedule I.
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
STATEMENTS OF OPERATIONS
 
 
For the Years Ended December 31
 
 
2014
 
2013
 
2012
 
 
(in millions)
Revenue from subsidiaries and affiliates
 
$
29

 
$
32

 
$
20

Equity in earnings (loss) of subsidiaries and affiliates
 
1,313

 
498

 
(437
)
Interest income
 
59

 
66

 
119

General and administrative expenses
 
(161
)
 
(171
)
 
(213
)
Other Income
 
8

 
14

 
99

Other Expense
 
(30
)
 
(11
)
 
(15
)
Loss on extinguishment of debt
 
(193
)
 
(165
)
 
(4
)
Interest expense
 
(422
)
 
(436
)
 
(502
)
Income (loss) before income taxes
 
603

 
(173
)
 
(933
)
Income tax benefit (expense)
 
166

 
287

 
21

Net income (loss)
 
$
769

 
$
114

 
$
(912
)
See Notes to Schedule I.
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2014, 2013, AND 2012
 
 
2014
 
2013
 
2012
 
 
(in millions)
NET INCOME (LOSS)
 
$
769

 
$
114

 
$
(912
)
Foreign currency translation activity:
 
 
 
 
 
 
Foreign currency translation adjustments, net of income tax (expense) benefit of $(7), $10 and $0, respectively
 
(366
)
 
(263
)
 
(127
)
Reclassification to earnings, net of income tax (expense) benefit of $0, $0 and $0, respectively
 
34

 
36

 
37

Total foreign currency translation adjustments, net of tax
 
(332
)
 
(227
)
 
(90
)
Derivative activity:
 
 
 
 
 
 
Change in derivative fair value, net of income tax (expense) benefit of $51, $(31) and $33, respectively
 
(180
)
 
46

 
(108
)
Reclassification to earnings, net of income tax (expense) benefit of $(37), $(32) and $(51), respectively
 
72

 
128

 
161

Total change in fair value of derivatives, net of tax
 
(108
)
 
174

 
53

Pension activity:
 
 
 
 
 
 
Prior service cost for the period, net of income tax (expense) benefit of $0, $0 and $0, respectively
 
(1
)
 
—

 
(1
)
Change in pension adjustments due to net actuarial gain (loss) for the period, net of income tax (expense) benefit of $9, $(42) and $64, respectively
 
(13
)
 
78

 
(130
)
Reclassification of earnings due to amortization of net actuarial loss, net of income tax (expense) benefit of $(0), $(5) and $(5), respectively
 
10

 
13

 
6

Total change in unfunded pension obligation
 
(4
)
 
91

 
(125
)
OTHER COMPREHENSIVE INCOME (LOSS)
 
(444
)
 
38

 
(162
)
COMPREHENSIVE INCOME (LOSS)
 
$
325

 
$
152

 
$
(1,074
)
See Notes to Schedule I.
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
STATEMENTS OF CASH FLOWS
 
 
For the Years Ended December 31,
 
 
2014
 
2013
 
2012
 
 
(in millions)
Net cash provided by operating activities
 
$
449

 
$
418

 
$
694

Investing Activities:
 
 
 
 
 
 
Expenses related to asset sales
 
(4
)
 
(5
)
 
—

Investment in and net advances to subsidiaries
 
(69
)
 
201

 
(168
)
Return of capital
 
740

 
230

 
660

Decrease in restricted cash
 
96

 
50

 
44

Additions to property, plant and equipment
 
(31
)
 
(11
)
 
(24
)
(Purchase) sale of short term investments, net
 
(1
)
 
1

 
1

Net cash provided by (used in) investing activities
 
731

 
466

 
513

Financing Activities:
 
 
 
 
 
 
Borrowings (payments) under the revolver, net
 
—

 
—

 
(295
)
Borrowings of notes payable and other coupon bearing securities
 
1,525

 
750

 
—

Repayments of notes payable and other coupon bearing securities
 
(2,117
)
 
(1,210
)
 
(236
)
Loans (to) from subsidiaries
 
263

 
(152
)
 
(236
)
Purchase of treasury stock
 
(308
)
 
(322
)
 
(301
)
Proceeds from issuance of common stock
 
1

 
13

 
8

Common stock dividends paid
 
(144
)
 
(119
)
 
(30
)
Payments for deferred financing costs
 
(20
)
 
(17
)
 
(1
)
Net cash (used in) provided by financing activities
 
(800
)
 
(1,057
)
 
(1,091
)
Effect of exchange rate changes on cash
 
—

 
(1
)
 
—

Increase (decrease) in cash and cash equivalents
 
380

 
(174
)
 
116

Cash and cash equivalents, beginning
 
131

 
305

 
189

Cash and cash equivalents, ending
 
$
511

 
$
131

 
$
305

Supplemental Disclosures:
 
 
 
 
 
 
Cash payments for interest, net of amounts capitalized
 
$
373

 
$
442

 
$
479

Cash payments for income taxes, net of refunds
 
$
(2
)
 
$
11

 
$
—

See Notes to Schedule I.
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.
Senior Notes and Loans Payable
 
 
 
 
 
 
December 31,
 
 
Interest Rate
 
Maturity
 
2014
 
2013
 
 
 
 
 
 
(in millions)
Senior Unsecured Note
 
7.75%
 
2014
 
$
—

 
$
110

Senior Unsecured Note
 
7.75%
 
2015
 
151

 
356

Senior Unsecured Note
 
9.75%
 
2016
 
164

 
369

Senior Unsecured Note
 
8.00%
 
2017
 
525

 
1,150

Senior Secured Term Loan
 
LIBOR + 2.75%
 
2018
 
—

 
799

Senior Unsecured Note
 
LIBOR + 3.00%
 
2019
 
775

 
—

Senior Unsecured Note
 
8.00%
 
2020
 
625

 
625

Senior Unsecured Note
 
7.38%
 
2021
 
1,000

 
1,000

Senior Unsecured Note
 
4.88%
 
2023
 
750

 
750

Senior Unsecured Note
 
5.50%
 
2024
 
750

 
—

Unamortized premium (discounts)
 
 
 
 
 
1

 
(7
)
SUBTOTAL
 
 
 
 
 
4,741

 
5,152

Less: Current maturities
 
 
 
 
 
(151
)
 
(118
)
Total
 
 
 
 
 
$
4,590

 
$
5,034


Junior Subordinated Notes Payable
 
 
 
 
 
 
December 31,
 
 
Interest Rate
 
Maturity
 
2014
 
2013
 
 
 
 
 
 
(in millions)
Term Convertible Trust Securities
 
6.75%
 
2029
 
$
517

 
$
517


FUTURE MATURITIES OF DEBT—Recourse debt as of December 31, 2014 is scheduled to reach maturity as set forth in the table below:
December 31,
Annual Maturities
 
(in millions)
2015
$
151

2016
162

2017
525

2018
—

2019
773

Thereafter
3,647

Total debt
$
5,258

Dividends from Subsidiaries and Affiliates
Cash dividends received from consolidated subsidiaries were $880 million, $818 million, and $1.14 billion for the years ended December 31, 2014, 2013, and 2012, respectively. There were no cash dividends received from affiliates accounted for by the equity method for the years ended December 31, 2014, 2013, and 2012.
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, 2014, by the terms of the agreements, to an aggregate of approximately $417 million representing 17 agreements with individual exposures ranging from less than $1 million up to $53 million. These amounts exclude normal and customary representations and warranties in agreements for the sale of assets (including ownership in associated legal entities) where the associated risk is considered to be nominal.
LETTERS OF CREDIT—At December 31, 2014, the Company had $61 million in letters of credit outstanding under the senior unsecured credit facility representing 5 agreements with individual exposures ranging from less than $1 million up to $29 million, which operate to guarantee performance relating to certain project development and construction activities and subsidiary operations. At December 31, 2014, the Company had $74 million in cash collateralized letters of credit outstanding representing 9 agreements with individual exposures ranging from less than $1 million up to $47 million, which operate to guarantee performance relating to certain project development and construction activities and subsidiary operations. During 2014, the Company paid letter of credit fees ranging from 0.2% to 2.5% per annum on the outstanding amounts.