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Schedule I - Condensed Financial Information of Parent
 12 Months Ended
Dec. 31, 2017
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,
 
 
2017
 
2016
 
 
(in millions)
ASSETS
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
 
$
10

 
$
109

Restricted cash
 
—

 
3

Accounts and notes receivable from subsidiaries
 
143

 
155

Prepaid expenses and other current assets
 
27

 
39

Total current assets
 
180

 
306

Investment in and advances to subsidiaries and affiliates
 
8,239

 
7,561

Office Equipment:
 
 
 
 
Cost
 
27

 
26

Accumulated depreciation
 
(18
)
 
(16
)
Office equipment, net
 
9

 
10

Other Assets:
 
 
 
 
Other intangible assets, net of accumulated amortization
 
3

 
5

Deferred financing costs, net of accumulated amortization of $2 and $1, respectively
 
5

 
5

Deferred income taxes
 
289

 
1,041

Other assets
 
2

 
13

Total other assets
 
299

 
1,064

Total assets
 
$
8,727

 
$
8,941

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
Current Liabilities:
 
 
 
 
Accounts payable
 
$
18

 
$
18

Accounts and notes payable to subsidiaries
 
381

 
304

Accrued and other liabilities
 
246

 
250

Senior notes payable—current portion
 
5

 
—

Total current liabilities
 
650

 
572

Long-term Liabilities:
 
 
 
 
Senior notes payable
 
4,625

 
4,154

Junior subordinated notes and debentures payable
 
—

 
517

Accounts and notes payable to subsidiaries
 
967

 
883

Other long-term liabilities
 
20

 
21

Total long-term liabilities
 
5,612

 
5,575

Stockholders' equity:
 
 
 
 
Common stock
 
8

 
8

Additional paid-in capital
 
8,501

 
8,592

Accumulated deficit
 
(2,276
)
 
(1,146
)
Accumulated other comprehensive loss
 
(1,876
)
 
(2,756
)
Treasury stock
 
(1,892
)
 
(1,904
)
Total stockholders' equity
 
2,465

 
2,794

Total liabilities and equity
 
$
8,727

 
$
8,941


See Notes to Schedule I.
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
STATEMENTS OF OPERATIONS
For the Years Ended December 31,
 
2017
 
2016
 
2015
 
 
(in millions)
Revenue from subsidiaries and affiliates
 
$
28

 
$
14

 
$
24

Equity in earnings of subsidiaries and affiliates
 
630

 
(615
)
 
859

Interest income
 
49

 
19

 
24

General and administrative expenses
 
(158
)
 
(144
)
 
(154
)
Other income
 
5

 
7

 
24

Other expense
 
(554
)
 
(65
)
 
(6
)
Loss on extinguishment of debt
 
(92
)
 
(14
)
 
(105
)
Interest expense
 
(317
)
 
(344
)
 
(364
)
Income (loss) before income taxes
 
(409
)
 
(1,142
)
 
302

Income tax benefit (expense)
 
(752
)
 
12

 
4

Net income (loss)
 
$
(1,161
)
 
$
(1,130
)
 
$
306

See Notes to Schedule I.
THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
STATEMENTS OF COMPREHENSIVE LOSS
YEARS ENDED DECEMBER 31, 2017, 2016, AND 2015
 
2017
 
2016
 
2015
 
(in millions)
NET INCOME (LOSS)
$
(1,161
)
 
$
(1,130
)
 
$
306

Foreign currency translation activity:
 
 
 
 
 
Foreign currency translation adjustments, net of income tax benefit (expense) of $11, $1 and $1, respectively
18

 
117

 
(674
)
Reclassification to earnings, net of $0 income tax for all periods
643

 
992

 
—

Total foreign currency translation adjustments, net of tax
661

 
1,109

 
(674
)
Derivative activity:
 
 
 
 
 
Change in derivative fair value, net of income tax benefit (expense) of $13, $(5) and $4, respectively
(14
)
 
2

 
(5
)
Reclassification to earnings, net of income tax benefit (expense) of $1, $1 and $(12), respectively
37

 
28

 
48

Total change in fair value of derivatives, net of tax
23

 
30

 
43

Pension activity:
 
 
 
 
 
Prior service cost for the period, net of income tax expense of $1, $5 and $0, respectively
1

 
9

 
1

Change in pension adjustments due to net actuarial gain (loss) for the period, net of income tax benefit (expense) of $6, $10 and $(7), respectively
(20
)
 
(22
)
 
18

Reclassification of earnings due to amortization of net actuarial loss, net of income tax benefit (expense) of $(126), $2 and $(2), respectively
248

 
1

 
2

Total change in unfunded pension obligation
229

 
(12
)
 
21

OTHER COMPREHENSIVE INCOME (LOSS)
913

 
1,127

 
(610
)
COMPREHENSIVE LOSS
$
(248
)
 
$
(3
)
 
$
(304
)
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,
 
2017
 
2016
 
2015
 
 
(in millions)
Net cash provided by operating activities
 
$
148

 
$
818

 
$
475

Investing Activities:
 
 
 
 
 
 
Investment in and net advances to subsidiaries
 
(339
)
 
(650
)
 
(221
)
Return of capital
 
243

 
247

 
501

Decrease in restricted cash
 
3

 
29

 
49

Additions to property, plant and equipment
 
(13
)
 
(12
)
 
(11
)
Net cash provided by (used in) investing activities
 
(106
)
 
(386
)
 
318

Financing Activities:
 
 
 
 
 
 
Borrowings under the revolver, net
 
207

 
—

 
—

Borrowings of notes payable and other coupon bearing securities
 
1,025

 
500

 
575

Repayments of notes payable and other coupon bearing securities
 
(1,353
)
 
(808
)
 
(915
)
Loans from subsidiaries
 
309

 
183

 
—

Purchase of treasury stock
 
—

 
(79
)
 
(482
)
Proceeds from issuance of common stock
 
1

 
1

 
4

Common stock dividends paid
 
(317
)
 
(290
)
 
(276
)
Payments for deferred financing costs
 
(12
)
 
(12
)
 
(6
)
Distributions to noncontrolling interests
 
—

 
(2
)
 
—

Other financing
 
(7
)
 
(3
)
 
(18
)
Net cash used in financing activities
 
(147
)
 
(510
)
 
(1,118
)
Effect of exchange rate changes on cash
 
6

 
1

 
—

Decrease in cash and cash equivalents
 
(99
)
 
(77
)
 
(325
)
Cash and cash equivalents, beginning
 
109

 
186

 
511

Cash and cash equivalents, ending
 
$
10

 
$
109

 
$
186

Supplemental Disclosures:
 
 
 
 
 
 
Cash payments for interest, net of amounts capitalized
 
$
282

 
$
296

 
$
314

Cash payments for income taxes, net of refunds
 
$
2

 
$
6

 
$
—

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 as well as effects of U.S. tax law reform enacted in 2017.
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 and Secured Notes and Loans Payable ($ in millions)
 
 
 
 
 
 
December 31,
 
 
Interest Rate
 
Maturity
 
2017
 
2016
Senior Unsecured Note
 
LIBOR + 3.00%
 
2019
 
$
—

 
$
240

Senior Unsecured Note
 
8.00%
 
2020
 
228

 
469

Senior Unsecured Note
 
7.38%
 
2021
 
690

 
966

Drawings on secured credit facility
 
LIBOR + 2.00%
 
2021
 
207

 
—

Senior Secured Term Loan
 
LIBOR + 2.00%
 
2022
 
521

 
—

Senior Unsecured Note
 
4.88%
 
2023
 
713

 
713

Senior Unsecured Note
 
5.50%
 
2024
 
738

 
738

Senior Unsecured Note
 
5.50%
 
2025
 
573

 
573

Senior Unsecured Note
 
6.00%
 
2026
 
500

 
500

Senior Unsecured Note
 
5.13%
 
2027
 
500

 
—

Unamortized (discounts)/premiums & debt issuance (costs)
 
 
 
 
 
(40
)
 
(45
)
Subtotal
 
 
 
 
 
$
4,630

 
$
4,154

Less: Current maturities
 
 
 
 
 
(5
)
 
—

Total
 
 
 
 
 
$
4,625

 
$
4,154


Junior Subordinated Notes Payable ($ in millions)
 
 
 
 
 
 
December 31,
 
 
Interest Rate
 
Maturity
 
2017
 
2016
Term Convertible Trust Securities
 
6.75%
 
2029
 
$
—

 
$
517


FUTURE MATURITIES OF RECOURSE DEBT — As of December 31, 2017 scheduled maturities are presented in the following table (in millions):
December 31,
Annual Maturities
2018
$
5

2019
5

2020
234

2021
902

2022
500

Thereafter
3,024

Unamortized (discount)/premium & debt issuance (costs)
(40
)
Total debt
$
4,630

Dividends from Subsidiaries and Affiliates
Cash dividends received from consolidated subsidiaries were $1.2 billion, $1 billion, and $748 million for the years ended December 31, 2017, 2016, and 2015, respectively. There were no cash dividends received from affiliates accounted for by the equity method for the years ended December 31, 2017, 2016, and 2015.
Guarantees and Letters of Credit
GUARANTEES — In connection with certain of its project financing, acquisition, and power purchase agreements, the Parent 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, 2017, by the terms of the agreements, to an aggregate of approximately $842 million representing 22 agreements with individual exposures ranging from $1 million to $272 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, 2017, the Parent Company had $36 million in letters of credit outstanding under the senior secured credit facility, representing 21 agreements with individual exposures up to $13 million, and $52 million in letters of credit outstanding under the senior unsecured credit facility, representing 4 agreements with individual exposures ranging from $2 million to $26 million. During 2017, the Parent Company paid letter of credit fees ranging from 0.25% to 2.25% per annum on the outstanding amounts.