Schedule I - Condensed Financial Information of Parent

12 Months Ended

Dec. 31, 2021

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, 2021 AND 2020


	December 31,
	2021		2020
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	40	$	70

Accounts and notes receivable from subsidiaries	231		188

Prepaid expenses and other current assets	50		55
Total current assets	321		313
Investment in and advances to subsidiaries and affiliates	7,159		6,426
Office Equipment:
Cost	29		29
Accumulated depreciation	(23)		(22)
Office equipment, net	6		7
Other Assets:

Deferred financing costs, net of accumulated amortization of $7 and $6, respectively	6		4
Deferred income taxes	—		25
Other assets	33		20
Total other assets	39		49
Total assets	$	7,525	$	6,795
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	17	$	15
Accounts and notes payable to subsidiaries	161		184
Accrued and other liabilities	340		344

Total current liabilities	518		543
Long-term Liabilities:
Senior notes payable	3,729		3,430

Accounts and notes payable to subsidiaries	—		28
Other long-term liabilities	480		160
Total long-term liabilities	4,209		3,618
Stockholders' equity:
Preferred stock	825		—
Common stock	8		8
Additional paid-in capital	7,119		7,561
Accumulated deficit	(1,089)		(680)
Accumulated other comprehensive loss	(2,220)		(2,397)
Treasury stock	(1,845)		(1,858)
Total stockholders' equity	2,798		2,634
Total liabilities and equity	$	7,525	$	6,795

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF OPERATIONS

YEARS ENDED DECEMBER 31, 2021, 2020, AND 2019


For the Years Ended December 31,	2021		2020		2019
	(in millions)
Revenue from subsidiaries and affiliates	$	28	$	29	$	30
Equity in earnings of subsidiaries and affiliates	(47)		383		674
Interest income	20		31		53
General and administrative expenses	(121)		(125)		(148)
Other income	51		26		1
Other expense	(65)		(6)		(103)
Loss on extinguishment of debt	—		(146)		(5)
Interest expense	(74)		(163)		(197)
Income (loss) before income taxes	(208)		29		305
Income tax benefit (expense)	(201)		17		(2)
Net income (loss)	$	(409)	$	46	$	303

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

YEARS ENDED DECEMBER 31, 2021, 2020, AND 2019


	2021		2020		2019
	(in millions)
NET INCOME (LOSS)	$	(409)	$	46	$	303
Foreign currency translation activity:
Foreign currency translation adjustments, net of income tax (expense) benefit of $0, $(8) and $1, respectively	(86)		—		(23)
Reclassification to earnings, net of $0 income tax for all periods	3		192		23
Total foreign currency translation adjustments, net of tax	(83)		192		—
Derivative activity:
Change in derivative fair value, net of income tax benefit of $8, $90 and $53, respectively	(7)		(309)		(202)
Reclassification to earnings, net of income tax expense of $73, $19 and $4, respectively	254		72		36
Total change in fair value of derivatives, net of tax	247		(237)		(166)
Pension activity:
Prior service cost for the period, net of income tax expense of $0, $1 and $0, respectively	—		—		1
Change in pension adjustments due to net actuarial gain (loss) for the period, net of income tax (expense) benefit of $(9), $4 and $6, respectively	23		(12)		(16)
Reclassification of earnings, net of income tax expense of $3, $0 and $13, respectively	1		—		27
Total change in unfunded pension obligation	24		(12)		12
OTHER COMPREHENSIVE INCOME (LOSS)	188		(57)		(154)
COMPREHENSIVE INCOME (LOSS)	$	(221)	$	(11)	$	149

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2021, 2020, AND 2019


For the Years Ended December 31,	2021		2020		2019
	(in millions)
Net cash provided by operating activities	$	570	$	434	$	583
Investing Activities:
Proceeds from the sale of business interests, net of expenses	64		412		196
Investment in and net advances to subsidiaries	(2,260)		(652)		(596)
Return of capital	698		346		411
Additions to property, plant and equipment	(14)		(8)		(8)
Purchase of short term investments, net	—		(1)		—
Net cash provided by (used in) investing activities	(1,512)		97		3
Financing Activities:
(Repayments) Borrowings under the revolver, net	295		(110)		180
Borrowings of notes payable and other coupon bearing securities	—		3,397		—
Repayments of notes payable and other coupon bearing securities	—		(3,366)		(450)
Loans from (Repayments to) subsidiaries	—		25		40

Issuance of preferred stock	1,014		—		—
Proceeds from issuance of common stock	8		4		6
Common stock dividends paid	(401)		(381)		(362)
Payments for deferred financing costs	(4)		(38)		(3)
Sales to noncontrolling interests	(1)		—		—

Other financing	1		(3)		(4)
Net cash used in financing activities	912		(472)		(593)
Effect of exchange rate changes on cash	—		—		(1)
Increase (Decrease) in cash and cash equivalents	(30)		59		(8)
Cash and cash equivalents, beginning	70		11		19
Cash and cash equivalents, ending	$	40	$	70	$	11
Supplemental Disclosures:
Cash payments for interest, net of amounts capitalized	$	79	$	156	$	192
Cash payments (refunds) for income taxes	—		(8)		(5)

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	2021		2020
Senior Unsecured Note	3.30%	2025	900		900
Drawings on revolving credit facility	LIBOR + 1.75%	2026	365		70
Senior Unsecured Note	1.375%	2026	800		800
Senior Unsecured Note	3.95%	2030	700		700
Senior Unsecured Note	2.45%	2031	1,000		1,000
Unamortized (discounts)/premiums & debt issuance (costs)			(36)		(40)


Total			$	3,729	$	3,430

FUTURE MATURITIES OF RECOURSE DEBT — As of December 31, 2021 scheduled maturities are presented in the following table (in millions):


December 31,	Annual Maturities
2022	$	—
2023	—
2024	—
2025	900
2026	1,165
Thereafter	1,700
Unamortized (discount)/premium & debt issuance (costs)	(36)
Total debt	$	3,729

3. Dividends from Subsidiaries and Affiliates

Cash dividends received from consolidated subsidiaries were $894 million, $1 billion, and $1 billion for the years ended December 31, 2021, 2020, and 2019, respectively. For the years ended December 31 2021, 2020, and 2019, $65 million, $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, 2021, 2020, and 2019.

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, 2021 by the terms of the agreements, to an aggregate of approximately $2.2 billion, representing 90 agreements with individual exposures ranging up to $400 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, 2021, the Parent Company had $48 million in letters of credit outstanding under the revolving credit facility, representing 26 agreements with individual exposures up to $16 million, and $119 million in letters of credit outstanding under the unsecured credit facilities, representing 31 agreements with individual exposures ranging up to $42 million. During the year ended December 31, 2021, the Parent Company paid letter of credit fees ranging from 1% to 3% per annum on the outstanding amounts.