Schedule I - Condensed Financial Information of Parent

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

BALANCE SHEETS

	December 31,
	2015			2014
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	186		$	511
Restricted cash	32			81
Accounts and notes receivable from subsidiaries	264			380
Deferred income taxes	—			142
Prepaid expenses and other current assets	26			57
Total current assets	508			1,171
Investment in and advances to subsidiaries and affiliates	7,764			9,063
Office Equipment:
Cost	135			157
Accumulated depreciation	(112		)	(114		)
Office equipment, net	23			43
Other Assets:
Deferred financing costs (net of accumulated amortization of $75 and $81, respectively)	49			61
Deferred income taxes	1,028			872
Other Assets	1			1
Total other assets	1,078			934
Total	$	9,373		$	11,211
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	16		$	25
Accounts and notes payable to subsidiaries	97			80
Accrued and other liabilities	204			212
Senior notes payable—current portion	—			151
Total current liabilities	317			468
Long-term Liabilities:
Senior notes payable	4,498			4,590
Junior subordinated notes and debentures payable	517			517
Accounts and notes payable to subsidiaries	873			1,352
Other long-term liabilities	19			12
Total long-term liabilities	5,907			6,471
Stockholders' equity:
Common stock	8			8
Additional paid-in capital	8,718			8,409
Retained Earnings	143			512
Accumulated other comprehensive loss	(3,883		)	(3,286		)
Treasury stock	(1,837		)	(1,371		)
Total stockholders' equity	3,149			4,272
Total	$	9,373		$	11,211

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF OPERATIONS

For the Years Ended December 31,	2015			2014			2013
	(in millions)
Revenue from subsidiaries and affiliates	$	24		$	29		$	32
Equity in earnings of subsidiaries and affiliates	859			1,313			498
Interest income	24			59			66
General and administrative expenses	(154		)	(161		)	(171		)
Other Income	24			8			14
Other Expense	(6		)	(30		)	(11		)
Loss on extinguishment of debt	(105		)	(193		)	(165		)
Interest expense	(364		)	(422		)	(436		)
Income (loss) before income taxes	302			603			(173		)
Income tax benefit	4			166			287
Net income	$	306		$	769		$	114

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2015, 2014, AND 2013

	2015			2014			2013
	(in millions)
NET INCOME	$	306		$	769		$	114
Foreign currency translation activity:
Foreign currency translation adjustments, net of income tax (expense) benefit of $1, $(7) and $10, respectively	(674		)	(366		)	(263		)
Reclassification to earnings, net of income tax (expense) benefit of $0, $0 and $0, respectively	—			34			36
Total foreign currency translation adjustments, net of tax	(674		)	(332		)	(227		)
Derivative activity:
Change in derivative fair value, net of income tax (expense) benefit of $4, $51 and $(31), respectively	(5		)	(180		)	46
Reclassification to earnings, net of income tax (expense) benefit of $(12), $(37) and $(32), respectively	48			72			128
Total change in fair value of derivatives, net of tax	43			(108		)	174
Pension activity:
Prior service cost for the period, net of income tax (expense) benefit of $0, $0 and $0, respectively	1			(1		)	—
Change in pension adjustments due to net actuarial gain (loss) for the period, net of income tax (expense) benefit of $(7), $9 and $(42), respectively	18			(13		)	78
Reclassification of earnings due to amortization of net actuarial loss, net of income tax (expense) benefit of $(2), $0 and $(5), respectively	2			10			13
Total change in unfunded pension obligation	21			(4		)	91
OTHER COMPREHENSIVE INCOME (LOSS)	(610		)	(444		)	38
COMPREHENSIVE INCOME (LOSS)	$	(304	)	$	325		$	152

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,	2015			2014			2013
	(in millions)
Net cash provided by operating activities	$	475		$	449		$	418
Investing Activities:
Expenses related to asset sales	—			(4		)	(5		)
Investment in and net advances to subsidiaries	(221		)	(69		)	201
Return of capital	501			740			230
Decrease in restricted cash	49			96			50
Additions to property, plant and equipment	(11		)	(31		)	(11		)
(Purchase) sale of short term investments, net	—			(1		)	1
Net cash provided by (used in) investing activities	318			731			466
Financing Activities:
Borrowings (payments) under the revolver, net	—			—			—
Borrowings of notes payable and other coupon bearing securities	575			1,525			750
Repayments of notes payable and other coupon bearing securities	(915		)	(2,117		)	(1,210		)
Loans (to) from subsidiaries	—			263			(152		)
Purchase of treasury stock	(482		)	(308		)	(322		)
Proceeds from issuance of common stock	4			1			13
Common stock dividends paid	(276		)	(144		)	(119		)
Payments for deferred financing costs	(6		)	(20		)	(17		)
Other Financing	(18		)	—			—
Net cash (used in) provided by financing activities	(1,118		)	(800		)	(1,057		)
Effect of exchange rate changes on cash	—			—			(1		)
Increase (decrease) in cash and cash equivalents	(325		)	380			(174		)
Cash and cash equivalents, beginning	511			131			305
Cash and cash equivalents, ending	$	186		$	511		$	131
Supplemental Disclosures:
Cash payments for interest, net of amounts capitalized	$	314		$	373		$	442
Cash payments for income taxes, net of refunds	$	—		$	(2	)	$	11

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.

Senior Notes and Loans Payable ($ in millions)

			December 31,
	Interest Rate	Maturity	2015			2014
Senior Unsecured Note	7.75%	2015	$	—		$	151
Senior Unsecured Note	9.75%	2016	—			164
Senior Unsecured Note	8.00%	2017	181			525
Senior Unsecured Note	LIBOR + 3.00%	2019	775			775
Senior Unsecured Note	8.00%	2020	469			625
Senior Unsecured Note	7.38%	2021	1,000			1,000
Senior Unsecured Note	4.88%	2023	750			750
Senior Unsecured Note	5.50%	2024	750			750
Senior Unsecured Note	5.50%	2025	575			—
Unamortized premium (discounts)			(2		)	1
SUBTOTAL			4,498			4,741
Less: Current maturities			—			(151		)
Total			$	4,498		$	4,590

Junior Subordinated Notes Payable ($ in millions)

			December 31,
	Interest Rate	Maturity	2015		2014
Term Convertible Trust Securities	6.75%	2029	$	517	$	517

FUTURE MATURITIES OF DEBT — Recourse debt as of December 31, 2015 is scheduled to reach maturity as presented in the table below in millions:

December 31,	Annual Maturities
2016	$	—
2017	181
2018	—
2019	774
2020	469
Thereafter	3,591
Total debt	$	5,015

Dividends from Subsidiaries and Affiliates

Cash dividends received from consolidated subsidiaries were $748 million, $880 million, and $818 million for the years ended December 31, 2015, 2014, and 2013, respectively. There were no cash dividends received from affiliates accounted for by the equity method for the years ended December 31, 2015, 2014, and 2013.

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, 2015, by the terms of the agreements, to an aggregate of approximately $396 million representing 15 agreements with individual exposures ranging from less than $1 million up to $53 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, 2015, the Company had $62 million in letters of credit outstanding under the senior unsecured credit facility representing 7 agreements with individual exposures ranging from less than $1 million up to $29 million, which operate to guarantee performance relating to certain project development and construction activities and subsidiary operations. At December 31, 2015, the Company had $32 million in cash collateralized letters of credit outstanding representing 4 agreements with individual exposures ranging from $1 million up to $15 million, which operate to guarantee performance relating to certain project development and construction activities and subsidiary operations. During 2015, the Company paid letter of credit fees ranging from 0.2% to 2.5% per annum on the outstanding amounts.