Schedule I - Condensed Financial Information of Parent

12 Months Ended

Dec. 31, 2024

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, 2024 AND 2023


	December 31,
	2024		2023
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	265	$	33

Accounts and notes receivable from subsidiaries	446		1,248

Prepaid expenses and other current assets	95		51
Total current assets	806		1,332
Investment in and advances to subsidiaries and affiliates	9,786		6,735
Office Equipment:
Cost	14		14
Accumulated depreciation	(13)		(12)
Office equipment, net	1		2
Other Assets:

Deferred financing costs, net of accumulated amortization of $12 and $11, respectively	5		6

Other assets	47		44
Total other assets	52		50
Total assets	$	10,645	$	8,119
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	20	$	44
Accounts and notes payable to subsidiaries	190		273
Accrued and other liabilities	312		284
Senior notes payable—current portion	899		200
Total current liabilities	1,421		801
Long-term Liabilities:
Debt	4,805		4,264

Accounts and notes payable to subsidiaries	307		158
Other long-term liabilities	468		408
Total long-term liabilities	5,580		4,830
Stockholders' equity:
Preferred stock	—		838
Common stock	9		8
Additional paid-in capital	5,913		6,355
Accumulated deficit	293		(1,386)
Accumulated other comprehensive loss	(766)		(1,514)
Treasury stock	(1,805)		(1,813)
Total stockholders' equity	3,644		2,488
Total liabilities and equity	$	10,645	$	8,119

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF OPERATIONS

YEARS ENDED DECEMBER 31, 2024, 2023, AND 2022


For the Years Ended December 31,	2024		2023		2022
	(in millions)
Revenue from subsidiaries and affiliates	$	23	$	31	$	30
Equity in earnings (losses) of subsidiaries and affiliates	1,641		598		(280)
Interest income	150		44		28
General and administrative expenses	(137)		(129)		(140)
Other income	41		11		14
Other expense	(16)		—		—

Interest expense	(307)		(230)		(163)
Income (loss) before income taxes	1,395		325		(511)
Income tax benefit (expense)	284		(76)		(35)
Net income (loss)	$	1,679	$	249	$	(546)

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

YEARS ENDED DECEMBER 31, 2024, 2023, AND 2022


	2024		2023		2022
	(in millions)
NET INCOME (LOSS)	$	1,679	$	249	$	(546)
Foreign currency translation activity:
Foreign currency translation adjustments, net of $0 income tax for all periods	(159)		136		(37)
Reclassification to earnings, net of $0 income tax for all periods	71		—		—
Total foreign currency translation adjustments	(88)		136		(37)
Derivative activity:
Change in fair value of derivatives, net of income tax expense of $93, $7 and $198, respectively	315		55		645
Reclassification to earnings, net of income tax benefit (expense) of $(8), $9 and $0, respectively	18		(52)		44
Total change in fair value of derivatives	333		3		689
Pension activity:
Change in pension adjustments due to prior service cost, 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 $2, $1 and $(2), respectively	(5)		(4)		10
Reclassification of earnings, net of income tax expense of $1, $0 and $1, respectively	7		—		—
Total pension adjustments	2		(3)		10
Fair value option liabilities activity:
Change in fair value option liabilities due to instrument-specific credit risk, net of $0 income tax for all periods	3		—		—

Total change in fair value option liabilities	3		—		—
OTHER COMPREHENSIVE INCOME	250		136		662
COMPREHENSIVE INCOME	$	1,929	$	385	$	116

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2024, 2023, AND 2022


For the Years Ended December 31,	2024		2023		2022
	(in millions)
Net cash provided by operating activities	$	731	$	608	$	434
Investing Activities:
Proceeds from the sale of business interests, net of expenses	566		474		157
Investment in and net advances to subsidiaries	(2,508)		(2,187)		(1,716)
Return of capital	786		1,185		907
Additions to property, plant and equipment	(11)		(9)		(10)

Net cash used in investing activities	(1,167)		(537)		(662)
Financing Activities:
(Repayments) borrowings under the revolver, net	—		(325)		(40)
Borrowings of notes payable and other coupon bearing securities	1,450		900		200
Repayments of notes payable and other coupon bearing securities	(200)		—		—
Loans from (repayments to) subsidiaries	(76)		(177)		465


Proceeds from issuance of common stock	3		1		15
Common stock dividends paid	(483)		(444)		(422)
Payments for deferred financing costs	(21)		(14)		(4)


Other financing	(5)		(3)		(2)
Net cash provided by (used in) financing activities	668		(62)		212

Increase (decrease) in cash and cash equivalents	232		9		(16)
Cash and cash equivalents, beginning	33		24		40
Cash and cash equivalents, ending	$	265	$	33	$	24
Supplemental Disclosures:
Cash payments for interest, net of amounts capitalized	$	202	$	178	$	125
Cash payments for income taxes, net of refunds	44		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	2024		2023
Senior Variable Rate Term Loan	SOFR + 1.125%	2024	$	—	$	200
Senior Unsecured Note	3.30%	2025	900		900
Senior Unsecured Note	1.375%	2026	800		800

Senior Unsecured Note	5.45%	2028	900		900
Senior Unsecured Note	3.95%	2030	700		700
Senior Unsecured Note	2.45%	2031	1,000		1,000
Junior Unsecured Note	7.60%	2055	950		—
Junior Unsecured Note	6.95%	2055	500		—
Unamortized (discounts)/premiums & debt issuance (costs)			(46)		(36)
Subtotal			$	5,704	$	4,464
Less: Current maturities			(899)		(200)
Noncurrent maturities			$	4,805	$	4,264

FUTURE MATURITIES OF RECOURSE DEBT — As of December 31, 2024 scheduled maturities are presented in the following table (in millions):


December 31,	Annual Maturities
2025	$	900
2026	800
2027	—
2028	900
2029	—
Thereafter	3,150
Unamortized (discount)/premium & debt issuance (costs), net	(46)
Total debt	$	5,704

3. Dividends from Subsidiaries and Affiliates

Cash dividends received from consolidated subsidiaries were $1.6 billion, $1.4 billion, and $832 million for the years ended December 31, 2024, 2023, and 2022, respectively. For the years ended December 31, 2024, 2023, and 2022, $574 million, $474 million, and $157 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, 2024, 2023, and 2022.

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, 2024 by the terms of the agreements, to an aggregate of approximately $3 billion, representing 89 agreements with individual exposures ranging up to $350 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, 2024, the Parent Company had $18 million in letters of credit outstanding under the revolving credit facilities, representing 9 agreements with individual exposures up to $4 million; $129 million in letters of credit outstanding under the unsecured credit facilities, representing 28 agreements with individual exposures ranging up to $50 million; and $378 million in letters of credit outstanding under bilateral agreements, representing 9 agreements with individual exposures ranging up to $88 million. During the year ended December 31, 2024, the Parent Company paid letter of credit fees ranging from 1% to 3% per annum on the outstanding amounts.