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Allowance for Credit Losses

6 Months Ended

Jun. 30, 2026

ALLOWANCE FOR CREDIT LOSSES

The following table represents the rollforward of the allowance for credit losses for the periods indicated (in millions):


Six Months Ended June 30, 2026	Accounts Receivable		Financing Receivables		Other (1)		Total






CECL reserve balance at beginning of period	$	39	$	38	$	6	$	83
Current period provision	21		3		—		24
Write-offs charged against allowance	(23)		—		—		(23)
Recoveries collected	—		(1)		—		(1)

CECL reserve balance at end of period	$	37	$	40	$	6	$	83


Six Months Ended June 30, 2025	Accounts Receivable		Financing Receivables		Other (1)		Total






CECL reserve balance at beginning of period	$	52	$	15	$	29	$	96
Reclassification from held-for-sale to held and used	—		21		(21)		—
Current period provision	27		2		—		29
Write-offs charged against allowance	(25)		—		—		(25)
Recoveries collected	—		(1)		—		(1)
Foreign exchange	—		—		(1)		(1)
CECL reserve balance at end of period	$	54	$	37	$	7	$	98

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(1)Primarily relates to credit losses allowance on Argentina receivables as of June 30, 2026 and June 30, 2025.

Following the implementation of customer billing system upgrades at our utilities in 2023 and 2024, a temporary pause in customer disconnections, certain collections efforts, and write-off processes contributed to increased provisions and allowance for credit losses throughout 2025. AES Indiana and AES Ohio reinstituted customer disconnections and write-off processes in March and June 2025, respectively. The resumption of these activities resulted in increased write-offs.