XML 84 R40.htm IDEA: XBRL DOCUMENT
v3.20.4

Schedule I - Condensed Financial Information of Parent | 12 Months Ended
--- | ---
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract] |
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT | THE AES CORPORATION SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT BALANCE SHEETS DECEMBER 31, 2020 AND 2019
|  | December 31,
|  | 2020 |  | 2019
|  | (in millions)
ASSETS |  |  |  |
Current Assets: |  |  |  |
Cash and cash equivalents |  | $ | 70 |  |  | $ | 11 |
Accounts and notes receivable from subsidiaries |  | 188 |  |  | 238 |
Prepaid expenses and other current assets |  | 55 |  |  | 35 |
Total current assets |  | 313 |  |  | 284 |
Investment in and advances to subsidiaries and affiliates |  | 6,426 |  |  | 6,782 |
Office Equipment: |  |  |  |
Cost |  | 29 |  |  | 27 |
Accumulated depreciation |  | (22) |  |  | (20) |
Office equipment, net |  | 7 |  |  | 7 |
Other Assets: |  |  |  |
Other intangible assets, net of accumulated amortization |  | — |  |  | 1 |
Deferred financing costs, net of accumulated amortization of $6 and $5, respectively |  | 4 |  |  | 5 |
Deferred income taxes |  | 25 |  |  | 14 |
Other assets |  | 20 |  |  | 16 |
Total other assets |  | 49 |  |  | 36 |
Total assets |  | $ | 6,795 |  |  | $ | 7,109 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |
Current Liabilities: |  |  |  |
Accounts payable |  | $ | 15 |  |  | $ | 20 |
Accounts and notes payable to subsidiaries |  | 184 |  |  | 339 |
Accrued and other liabilities |  | 344 |  |  | 221 |
Senior notes payable—current portion |  | — |  |  | 5 |
Total current liabilities |  | 543 |  |  | 585 |
Long-term Liabilities: |  |  |  |
Senior notes payable |  | 3,430 |  |  | 3,391 |
Accounts and notes payable to subsidiaries |  | 28 |  |  | 28 |
Other long-term liabilities |  | 160 |  |  | 109 |
Total long-term liabilities |  | 3,618 |  |  | 3,528 |
Stockholders' equity: |  |  |  |
Common stock |  | 8 |  |  | 8 |
Additional paid-in capital |  | 7,561 |  |  | 7,776 |
Accumulated deficit |  | (680) |  |  | (692) |
Accumulated other comprehensive loss |  | (2,397) |  |  | (2,229) |
Treasury stock |  | (1,858) |  |  | (1,867) |
Total stockholders' equity |  | 2,634 |  |  | 2,996 |
Total liabilities and equity |  | $ | 6,795 |  |  | $ | 7,109 |
See Notes to Schedule I. THE AES CORPORATION SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2020, 2019, AND 2018
For the Years Ended December 31, |  | 2020 |  | 2019 |  | 2018
|  | (in millions)
Revenue from subsidiaries and affiliates |  | $ | 29 |  |  | $ | 30 |  |  | $ | 36 |
Equity in earnings of subsidiaries and affiliates |  | 383 |  |  | 674 |  |  | 1,909 |
Interest income |  | 31 |  |  | 53 |  |  | 39 |
General and administrative expenses |  | (125) |  |  | (148) |  |  | (142) |
Other income |  | 26 |  |  | 1 |  |  | 25 |
Other expense |  | (6) |  |  | (103) |  |  | — |
Loss on extinguishment of debt |  | (146) |  |  | (5) |  |  | (171) |
Interest expense |  | (163) |  |  | (197) |  |  | (220) |
Income (loss) before income taxes |  | 29 |  |  | 305 |  |  | 1,476 |
Income tax benefit (expense) |  | 17 |  |  | (2) |  |  | (273) |
Net income (loss) |  | $ | 46 |  |  | $ | 303 |  |  | $ | 1,203 |
See Notes to Schedule I. THE AES CORPORATION SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT STATEMENTS OF COMPREHENSIVE INCOME (LOSS) YEARS ENDED DECEMBER 31, 2020, 2019, AND 2018
| 2020 |  | 2019 |  | 2018
| (in millions)
NET INCOME | $ | 46 |  |  | $ | 303 |  |  | $ | 1,203 |
Foreign currency translation activity: |  |  |  |  |
Foreign currency translation adjustments, net of income tax (expense) benefit of $(8), $1 and $2, respectively | — |  |  | (23) |  |  | (214) |
Reclassification to earnings, net of $0 income tax for all periods | 192 |  |  | 23 |  |  | (21) |
Total foreign currency translation adjustments, net of tax | 192 |  |  | — |  |  | (235) |
Derivative activity: |  |  |  |  |
Change in derivative fair value, net of income tax benefit of $90, $53 and $16, respectively | (309) |  |  | (202) |  |  | (64) |
Reclassification to earnings, net of income tax expense of $19, $4 and $13, respectively | 72 |  |  | 36 |  |  | 78 |
Total change in fair value of derivatives, net of tax | (237) |  |  | (166) |  |  | 14 |
Pension activity: |  |  |  |  |
Prior service cost for the period, net of income tax expense of $1, $0 and $1, respectively | — |  |  | 1 |  |  | (2) |
Change in pension adjustments due to net actuarial gain (loss) for the period, net of income tax benefit (expense) of $4, $6 and $(1), respectively | (12) |  |  | (16) |  |  | 2 |
Reclassification of earnings, net of income tax expense of $0, $13 and $2, respectively | — |  |  | 27 |  |  | 7 |
Total change in unfunded pension obligation | (12) |  |  | 12 |  |  | 7 |
OTHER COMPREHENSIVE LOSS | (57) |  |  | (154) |  |  | (214) |
COMPREHENSIVE INCOME (LOSS) | $ | (11) |  |  | $ | 149 |  |  | $ | 989 |
See Notes to Schedule I. THE AES CORPORATION SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2020, 2019, AND 2018
For the Years Ended December 31, |  | 2020 |  | 2019 |  | 2018
|  | (in millions)
Net cash provided by operating activities |  | $ | 434 |  |  | $ | 583 |  |  | $ | 409 |
Investing Activities: |  |  |  |  |  |
Proceeds from the sale of business interests, net of expenses |  | 412 |  |  | 196 |  |  | 1,222 |
Investment in and net advances to subsidiaries |  | (652) |  |  | (596) |  |  | (216) |
Return of capital |  | 346 |  |  | 411 |  |  | 242 |
Additions to property, plant and equipment |  | (8) |  |  | (8) |  |  | (13) |
Purchase of short term investments, net |  | (1) |  |  | — |  |  | — |
Net cash provided by (used in) investing activities |  | 97 |  |  | 3 |  |  | 1,235 |
Financing Activities: |  |  |  |  |  |
(Repayments) Borrowings under the revolver, net |  | (110) |  |  | 180 |  |  | (207) |
Borrowings of notes payable and other coupon bearing securities |  | 3,397 |  |  | — |  |  | 1,000 |
Repayments of notes payable and other coupon bearing securities |  | (3,366) |  |  | (450) |  |  | (1,933) |
Loans from (Repayments to) subsidiaries |  | 25 |  |  | 40 |  |  | (143) |
Proceeds from issuance of common stock |  | 4 |  |  | 6 |  |  | 7 |
Common stock dividends paid |  | (381) |  |  | (362) |  |  | (344) |
Payments for deferred financing costs |  | (38) |  |  | (3) |  |  | (11) |
Other financing |  | (3) |  |  | (4) |  |  | (5) |
Net cash used in financing activities |  | (472) |  |  | (593) |  |  | (1,636) |
Effect of exchange rate changes on cash |  | — |  |  | (1) |  |  | 1 |
Increase (Decrease) in cash and cash equivalents |  | 59 |  |  | (8) |  |  | 9 |
Cash and cash equivalents, beginning |  | 11 |  |  | 19 |  |  | 10 |
Cash and cash equivalents, ending |  | $ | 70 |  |  | $ | 11 |  |  | $ | 19 |
Supplemental Disclosures: |  |  |  |  |  |
Cash payments for interest, net of amounts capitalized |  | $ | 156 |  |  | $ | 192 |  |  | $ | 232 |
Cash payments (refunds) for income taxes |  | $ | (8) |  |  | $ | (5) |  |  | $ | 10 |
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. 2. Debt Senior and Unsecured Notes and Loans Payable ($ in millions)
|  |  |  |  |  | December 31,
|  | Interest Rate |  | Maturity |  | 2020 |  | 2019
Senior Unsecured Note |  | 4.00% |  | 2021 |  | — |  |  | 500 |
Senior Secured Term Loan |  | LIBOR + 1.75% |  | 2022 |  | — |  |  | 18 |
Senior Unsecured Note |  | 4.875% |  | 2023 |  | — |  |  | 613 |
Senior Unsecured Note |  | 4.50% |  | 2023 |  | — |  |  | 500 |
Drawings on revolving credit facility |  | LIBOR + 1.75% |  | 2024 |  | 70 |  |  | 180 |
Senior Unsecured Note |  | 5.50% |  | 2024 |  | — |  |  | 63 |
Senior Unsecured Note |  | 5.50% |  | 2025 |  | — |  |  | 544 |
Senior Unsecured Note |  | 3.30% |  | 2025 |  | 900 |  |  | — |
Senior Unsecured Note |  | 6.00% |  | 2026 |  | — |  |  | 500 |
Senior Unsecured Note |  | 1.375% |  | 2026 |  | 800 |  |  | — |
Senior Unsecured Note |  | 5.125% |  | 2027 |  | — |  |  | 500 |
Senior Unsecured Note |  | 3.95% |  | 2030 |  | 700 |  |  | — |
Senior Unsecured Note |  | 2.45% |  | 2031 |  | 1,000 |  |  | — |
Unamortized (discounts)/premiums & debt issuance (costs) |  |  |  |  |  | (40) |  |  | (22) |
Subtotal |  |  |  |  |  | $ | 3,430 |  |  | $ | 3,396 |
Less: Current maturities |  |  |  |  |  | — |  |  | (5) |
Total |  |  |  |  |  | $ | 3,430 |  |  | $ | 3,391 |
FUTURE MATURITIES OF RECOURSE DEBT — As of December 31, 2020 scheduled maturities are presented in the following table (in millions):
December 31, | Annual Maturities
2021 | $ | — |
2022 | — |
2023 | — |
2024 | 70 |
2025 | 900 |
Thereafter | 2,500 |
Unamortized (discount)/premium & debt issuance (costs) | (40) |
Total debt | $ | 3,430 |
3. Dividends from Subsidiaries and Affiliates Cash dividends received from consolidated subsidiaries were $1.0 billion, $1.0 billion and $1.9 billion for the years ended December 31, 2020, 2019, and 2018, respectively. For the years ended December 31, 2020 and 2019, $302 million and $200 million, respectively, of the dividends paid to the Parent Company are derived from the sale of business interests and are classified as an investing activity for cash flow purposes. All other dividends are classified as operating activities. There were no cash dividends received from affiliates accounted for by the equity method for the years ended December 31, 2020, 2019, and 2018. 4. Guarantees and Letters of Credit GUARANTEES — In connection with certain project financing, acquisitions and dispositions, power purchases and other 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, 2020 by the terms of the agreements, to an aggregate of approximately $1.4 billion, representing 69 agreements with individual exposures ranging up to $157 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, 2020, the Parent Company had $77 million in letters of credit outstanding under the revolving credit facility, representing 17 agreements with individual exposures up to $62 million, and $110 million in letters of credit outstanding under the unsecured credit facilities, representing 25 agreements with individual exposures ranging up to $56 million. During the year ended December 31, 2020, the Parent Company paid letter of credit fees ranging from 1% to 3% per annum on the outstanding amounts.

X
- References No definition available. + Details
Name: | srt_CondensedFinancialInformationOfParentCompanyOnlyDisclosureAbstract
Namespace Prefix: | srt_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI http://asc.fasb.org/extlink&oid=120391182&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=108774443&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration