Schedule I - Condensed Financial Information of Parent

12 Months Ended

Dec. 31, 2023

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, 2023 AND 2022


	December 31,
	2023		2022
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	33	$	24

Accounts and notes receivable from subsidiaries	1,248		169

Prepaid expenses and other current assets	51		47
Total current assets	1,332		240
Investment in and advances to subsidiaries and affiliates	6,735		7,204
Office Equipment:
Cost	14		16
Accumulated depreciation	(12)		(10)
Office equipment, net	2		6
Other Assets:

Deferred financing costs, net of accumulated amortization of $11 and $9, respectively	6		8

Other assets	44		117
Total other assets	50		125
Total assets	$	8,119	$	7,575
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	44	$	33
Accounts and notes payable to subsidiaries	273		609
Accrued and other liabilities	284		319
Senior notes payable—current portion	200		—
Total current liabilities	801		961
Long-term Liabilities:
Debt	4,264		3,894

Accounts and notes payable to subsidiaries	158		—
Other long-term liabilities	408		283
Total long-term liabilities	4,830		4,177
Stockholders' equity:
Preferred stock	838		838
Common stock	8		8
Additional paid-in capital	6,355		6,688
Accumulated deficit	(1,386)		(1,635)
Accumulated other comprehensive loss	(1,514)		(1,640)
Treasury stock	(1,813)		(1,822)
Total stockholders' equity	2,488		2,437
Total liabilities and equity	$	8,119	$	7,575

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF OPERATIONS

YEARS ENDED DECEMBER 31, 2023, 2022, AND 2021


For the Years Ended December 31,	2023		2022		2021
	(in millions)
Revenue from subsidiaries and affiliates	$	31	$	30	$	28
Equity in earnings of subsidiaries and affiliates	598		(280)		(47)
Interest income	44		28		20
General and administrative expenses	(129)		(140)		(121)
Other income	11		14		51
Other expense	—		—		(65)

Interest expense	(230)		(163)		(74)
Income (loss) before income taxes	325		(511)		(208)
Income tax expense	(76)		(35)		(201)
Net income (loss)	$	249	$	(546)	$	(409)

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

YEARS ENDED DECEMBER 31, 2023, 2022, AND 2021


	2023		2022		2021
	(in millions)
NET INCOME (LOSS)	$	249	$	(546)	$	(409)
Foreign currency translation activity:
Foreign currency translation adjustments, net of $0 income tax for all periods	136		(37)		(86)
Reclassification to earnings, net of $0 income tax for all periods	—		—		3
Total foreign currency translation adjustments, net of tax	136		(37)		(83)
Derivative activity:
Change in derivative fair value, net of income tax benefit (expense) of $(7), $(198) and $8, respectively	55		645		(7)
Reclassification to earnings, net of income tax benefit (expense) of $9, $0 and $(73), respectively	(52)		44		254
Total change in fair value of derivatives, net of tax	3		689		247
Pension activity:
Prior service cost for the period, net of $0 income tax for all periods	1		—		—
Change in pension adjustments due to net actuarial gain (loss) for the period, net of income tax (expense) benefit of $1, $(2) and $(9), respectively	(4)		10		23
Reclassification of earnings, net of income tax expense of $0, $1 and $3, respectively	—		—		1
Total change in unfunded pension obligation	(3)		10		24
OTHER COMPREHENSIVE INCOME	136		662		188
COMPREHENSIVE INCOME (LOSS)	$	385	$	116	$	(221)

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2023, 2022, AND 2021


For the Years Ended December 31,	2023		2022		2021
	(in millions)
Net cash provided by operating activities	$	608	$	434	$	570
Investing Activities:
Proceeds from the sale of business interests, net of expenses	474		157		64
Investment in and net advances to subsidiaries	(2,187)		(1,716)		(2,260)
Return of capital	1,185		907		698
Additions to property, plant and equipment	(9)		(10)		(14)

Net cash used in investing activities	(537)		(662)		(1,512)
Financing Activities:
(Repayments) borrowings under the revolver, net	(325)		(40)		295
Borrowings of notes payable and other coupon bearing securities	900		200		—

Loans from (repayments to) subsidiaries	(177)		465		—

Issuance of preferred stock	—		—		1,014
Proceeds from issuance of common stock	1		15		8
Common stock dividends paid	(444)		(422)		(401)
Payments for deferred financing costs	(14)		(4)		(4)
Sales to noncontrolling interests	—		—		(1)

Other financing	(3)		(2)		1
Net cash provided by (used in) financing activities	(62)		212		912

Increase (decrease) in cash and cash equivalents	9		(16)		(30)
Cash and cash equivalents, beginning	24		40		70
Cash and cash equivalents, ending	$	33	$	24	$	40
Supplemental Disclosures:
Cash payments for interest, net of amounts capitalized	$	178	$	125	$	79
Cash payments for income taxes, net of refunds	9		1		—

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.

2. Debt

Senior and Unsecured Notes and Loans Payable ($ in millions)


			December 31,
	Interest Rate	Maturity	2023		2022
Senior Variable Rate Term Loan	SOFR + 1.125%	2024	$	200	$	200
Senior Unsecured Note	3.30%	2025	900		900
Senior Unsecured Note	1.375%	2026	800		800
Drawings on revolving credit facility	SOFR + 1.75%	2027	—		325
Senior Unsecured Note	5.45%	2028	900		—
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)		(31)
Subtotal			$	4,464	$	3,894
Less: Current maturities			(200)		—
Noncurrent maturities			$	4,264	$	3,894

FUTURE MATURITIES OF RECOURSE DEBT — As of December 31, 2023 scheduled maturities are presented in the following table (in millions):


December 31,	Annual Maturities
2024	$	200
2025	900
2026	800
2027	—
2028	900
Thereafter	1,700
Unamortized (discount)/premium & debt issuance (costs), net	(36)
Total debt	$	4,464

3. Dividends from Subsidiaries and Affiliates

Cash dividends received from consolidated subsidiaries were $1.4 billion, $832 million, and $894 million for the years ended December 31, 2023, 2022, and 2021, respectively. For the years ended December 31, 2023, 2022, and 2021, $474 million, $157 million, and $65 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, 2023, 2022, and 2021.

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, 2023 by the terms of the agreements, to an aggregate of approximately $4 billion, representing 90 agreements with individual exposures ranging up to $970 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, 2023, the Parent Company had $124 million in letters of credit outstanding under the revolving credit facility, representing 17 agreements with individual exposures up to $40 million; $188 million in letters of credit outstanding under the unsecured credit facilities, representing 31 agreements with individual exposures ranging up to $70 million; and $235 million in letters of credit outstanding under bilateral agreements, representing 4 agreements with individual exposures ranging up to $64 million. During the year ended December 31, 2023, the Parent Company paid letter of credit fees ranging from 1% to 3% per annum on the outstanding amounts.