Schedule I - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

SCHEDULE I

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

BALANCE SHEETS

	December 31,
	2013			2012
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	131		$	305
Restricted cash	177			227
Accounts and notes receivable from subsidiaries	708			594
Deferred income taxes	4			8
Prepaid expenses and other current assets	39			28
Total current assets	1,059			1,162
Investment in and advances to subsidiaries and affiliates	9,245			9,393
Office Equipment:
Cost	78			86
Accumulated depreciation	(65		)	(72		)
Office equipment, net	13			14
Other Assets:
Deferred financing costs (net of accumulated amortization of $71 and $58, respectively)	75			76
Deferred income taxes	857			573
Other Assets	1			—
Total other assets	933			649
Total	$	11,250		$	11,218
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	15		$	15
Accounts and notes payable to subsidiaries	49			50
Accrued and other liabilities	216			241
Senior notes payable—current portion	118			11
Total current liabilities	398			317
Long-term Liabilities:
Senior notes payable	5,034			5,434
Junior subordinated notes and debentures payable	517			517
Accounts and notes payable to subsidiaries	859			242
Other long-term liabilities	112			139
Total long-term liabilities	6,522			6,332
Stockholders’ equity:
Common stock	8			8
Additional paid-in capital	8,443			8,525
Accumulated deficit	(150		)	(264		)
Accumulated other comprehensive loss	(2,882		)	(2,920		)
Treasury stock	(1,089		)	(780		)
Total stockholders’ equity	4,330			4,569
Total	$	11,250		$	11,218

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF OPERATIONS

	For the Years Ended December 31
	2013			2012			2011
	(in millions)
Revenue from subsidiaries and affiliates	$	32		$	20		$	59
Equity in earnings (loss) of subsidiaries and affiliates	498			(437		)	352
Interest income	66			119			158
General and administrative expenses	(171		)	(213		)	(227		)
Other Income	14			99			4
Other Expense	(11		)	(15		)	(18		)
Loss on extinguishment of debt	(165		)	(4		)	—
Interest expense	(436		)	(502		)	(444		)
Income (loss) before income taxes	(173		)	(933		)	(116		)
Income tax benefit (expense)	287			21			174
Net income (loss)	$	114		$	(912	)	$	58

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2013, 2012, AND 2011

	2013			2012			2011
	(in millions)
NET INCOME (LOSS)	$	114		$	(912	)	$	58
Available-for-sale securities activity:
Change in fair value of available-for-sale securities, net of income tax (expense) benefit of $0, $0 and $0, respectively	(1		)	1			1
Reclassification to earnings, net of income tax (expense) benefit of $0, $0 and $0, respectively	1			(1		)	(2		)
Total change in fair value of available-for-sale securities	—			—			(1		)
Foreign currency translation activity:
Foreign currency translation adjustments, net of income tax (expense) benefit of $10, $0 and $18, respectively	(263		)	(127		)	(297		)
Reclassification to earnings, net of income tax (expense) benefit of $0, $0 and $0, respectively	36			37			154
Total foreign currency translation adjustments, net of tax	(227		)	(90		)	(143		)
Derivative activity:
Change in derivative fair value, net of income tax (expense) benefit of $(31), $33 and $95, respectively	46			(108		)	(311		)
Reclassification to earnings, net of income tax (expense) benefit of $(32), $(51) and $(21), respectively	128			161			121
Total change in fair value of derivatives, net of tax	174			53			(190		)
Pension activity:
Prior service cost for the period, net of tax	—			(1		)	—
Net actuarial (loss) for the period, net of income tax (expense) benefit of $(42), $64 and $25, respectively	78			(130		)	(43		)
Amortization of net actuarial loss, net of income tax (expense) benefit of $(5), $(5) and $(1), respectively	13			6			2
Total change in unfunded pension obligation	91			(125		)	(41		)
OTHER COMPREHENSIVE INCOME (LOSS)	38			(162		)	(375		)
COMPREHENSIVE INCOME (LOSS)	$	152		$	(1,074	)	$	(317	)

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF CASH FLOWS

	For the Years Ended December 31,
	2013			2012			2011
	(in millions)
Net cash provided by operating activities	$	418		$	694		$	719
Investing Activities:
Proceeds from asset sales, net of expenses	(5		)	—			—
Investment in and net advances to subsidiaries	201			(168		)	(2,655		)
Return of capital	230			660			304
(Increase) decrease in restricted cash	50			44			(261		)
Additions to property, plant and equipment	(11		)	(24		)	(28		)
(Purchase) sale of short term investments, net	1			1			2
Net cash provided by (used in) investing activities	466			513			(2,638		)
Financing Activities:
Borrowings (payments) under the revolver, net	—			(295		)	295
Borrowings of notes payable and other coupon bearing securities	750			—			2,050
Repayments of notes payable and other coupon bearing securities	(1,210		)	(236		)	(477		)
Loans (to) from subsidiaries	(152		)	(236		)	(5		)
Purchase of treasury stock	(322		)	(301		)	(279		)
Proceeds from issuance of common stock	13			8			4
Common stock dividends paid	(119		)	(30		)	—
Payments for deferred financing costs	(17		)	(1		)	(75		)
Net cash (used in) provided by financing activities	(1,057		)	(1,091		)	1,513
Effect of exchange rate changes on cash	(1		)	—			1
Increase (decrease) in cash and cash equivalents	(174		)	116			(405		)
Cash and cash equivalents, beginning	305			189			594
Cash and cash equivalents, ending	$	131		$	305		$	189
Supplemental Disclosures:
Cash payments for interest, net of amounts capitalized	$	442		$	479		$	392
Cash payments for income taxes, net of refunds	$	11		$	—		$	(6	)

See Notes to Schedule I.

HE AES CORPORATION

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.

Reclassifications—During the current year, certain amounts that have previously been reported as part of General and administrative expenses on the Statement of Operations have been reclassified to Loss on extinguishment of debt, Other income or Other expense. The prior period amounts reported as General and administrative expenses have been reclassified to conform to current presentation.

Senior Notes and Loans Payable

				December 31,
	Interest Rate		Maturity	2013			2012
				(in millions)
Senior Unsecured Note	7.75%		2014	$	110		$	500
Senior Unsecured Note	7.75%		2015	356			500
Senior Unsecured Note	9.75%		2016	369			535
Senior Unsecured Note	8.00%		2017	1,150			1,500
Senior Secured Term Loan	LIBOR + 2.75%		2018	799			807
Revolving Loan under Senior Secured Credit Facility	LIBOR + 2.25%		2018	—			—
Senior Unsecured Note	8.00	%	2020	625			625
Senior Unsecured Note	7.38%		2021	1,000			1,000
Senior Unsecured Note	4.88%		2023	750			—
Unamortized discounts				(7		)	(22		)
SUBTOTAL				5,152			5,445
Less: Current maturities				(118		)	(11		)
Total				$	5,034		$	5,434

Junior Subordinated Notes Payable

			December 31,
	Interest Rate	Maturity	2013		2012
			(in millions)
Term Convertible Trust Securities	6.75%	2029	$	517	$	517

FUTURE MATURITIES OF DEBT—Recourse debt as of December 31, 2013 is scheduled to reach maturity as set forth in the table below:

December 31,	Annual Maturities
	(in millions)
2014	$	118
2015	364
2016	368
2017	1,158
2018	764
Thereafter	2,897
Total debt	$	5,669

Dividends from Subsidiaries and Affiliates

Cash dividends received from consolidated subsidiaries and from affiliates accounted for by the equity method were as follows:

	2013		2012		2011
	(in millions)
Subsidiaries	$	818	$	1,140	$	1,091
Affiliates	—		—		—

Guarantees and Letters of Credit

GUARANTEES—In connection with certain of its project financing, acquisition, and power purchase agreements, the 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, 2013, by the terms of the agreements, to an aggregate of approximately $661 million representing 21 agreements with individual exposures ranging from less than $1 million up to $280 million.

LETTERS OF CREDIT—At December 31, 2013, the Company had $1 million in letters of credit outstanding under the senior unsecured credit facility representing 3 agreements with individual exposures ranging up to less than $1 million, which operate to guarantee performance relating to certain project development and construction activities and subsidiary operations. At December 31, 2013, the Company had $163 million in cash collateralized letters of credit outstanding representing 12 agreements with individual exposures ranging from less than $1 million up to $109 million, which operate to guarantee performance relating to certain project development and construction activities and subsidiary operations. During 2013, the Company paid letter of credit fees ranging from 0.2% to 3.25% per annum on the outstanding amounts.