Schedule I - Condensed Financial Information of Parent

12 Months Ended

Dec. 31, 2016

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,
	2016			2015
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	109		$	186
Restricted cash	3			32
Accounts and notes receivable from subsidiaries	155			264
Prepaid expenses and other current assets	39			26
Total current assets	306			508
Investment in and advances to subsidiaries and affiliates	7,561			7,764
Office Equipment:
Cost	26			27
Accumulated depreciation	(16		)	(15		)
Office equipment, net	10			12
Other Assets:
Other intangible assets, net of accumulated amortization	5			11
Deferred financing costs, net of accumulated amortization of $1	5			—
Deferred income taxes	1,041			1,028
Other assets	13			1
Total other assets	1,064			1,040
Total	$	8,941		$	9,324
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	18		$	16
Accounts and notes payable to subsidiaries	304			97
Accrued and other liabilities	250			204
Total current liabilities	572			317
Long-term Liabilities:
Senior notes payable	4,154			4,449
Junior subordinated notes and debentures payable	517			517
Accounts and notes payable to subsidiaries	883			873
Other long-term liabilities	21			19
Total long-term liabilities	5,575			5,858
Stockholders' equity:
Common stock	8			8
Additional paid-in capital	8,592			8,718
Retained earnings (accumulated deficit)	(1,146		)	143
Accumulated other comprehensive loss	(2,756		)	(3,883		)
Treasury stock	(1,904		)	(1,837		)
Total stockholders' equity	2,794			3,149
Total	$	8,941		$	9,324

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF OPERATIONS

For the Years Ended December 31,	2016			2015			2014
	(in millions)
Revenue from subsidiaries and affiliates	$	14		$	24		$	29
Equity in earnings of subsidiaries and affiliates	(615		)	859			1,313
Interest income	19			24			59
General and administrative expenses	(144		)	(154		)	(161		)
Other income	7			24			8
Other expense	(65		)	(6		)	(30		)
Loss on extinguishment of debt	(14		)	(105		)	(193		)
Interest expense	(344		)	(364		)	(422		)
Income (loss) before income taxes	(1,142		)	302			603
Income tax benefit	12			4			166
Net income (loss)	$	(1,130	)	$	306		$	769

See Notes to Schedule I.

THE AES CORPORATION

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT

STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014

	2016			2015			2014
	(in millions)
NET INCOME (LOSS)	$	(1,130	)	$	306		$	769
Foreign currency translation activity:
Foreign currency translation adjustments, net of income tax benefit (expense) of $1, $1 and $(7), respectively	117			(674		)	(366		)
Reclassification to earnings, net of $0 income tax for all periods	992			—			34
Total foreign currency translation adjustments, net of tax	1,109			(674		)	(332		)
Derivative activity:
Change in derivative fair value, net of income tax benefit (expense) of $(5), $4 and $51, respectively	2			(5		)	(180		)
Reclassification to earnings, net of income tax benefit (expense) of $1, $(12) and $(37), respectively	28			48			72
Total change in fair value of derivatives, net of tax	30			43			(108		)
Pension activity:
Prior service cost for the period, net of income tax expense of $5, $0 and $0, respectively	9			1			(1		)
Change in pension adjustments due to net actuarial gain (loss) for the period, net of income tax benefit (expense) of $10, $(7) and $9, respectively	(22		)	18			(13		)
Reclassification of earnings due to amortization of net actuarial loss, net of income tax benefit (expense) of $2, $(2) and $0, respectively	1			2			10
Total change in unfunded pension obligation	(12		)	21			(4		)
OTHER COMPREHENSIVE INCOME (LOSS)	1,127			(610		)	(444		)
COMPREHENSIVE INCOME (LOSS)	$	(3	)	$	(304	)	$	325

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,	2016			2015			2014
	(in millions)
Net cash provided by operating activities	$	818		$	475		$	449
Investing Activities:
Expenses related to asset sales	—			—			(4		)
Investment in and net advances to subsidiaries	(650		)	(221		)	(69		)
Return of capital	247			501			740
Decrease in restricted cash	29			49			96
Additions to property, plant and equipment	(12		)	(11		)	(31		)
Purchase of short term investments, net	—			—			(1		)
Net cash provided by (used in) investing activities	(386		)	318			731
Financing Activities:
Borrowings of notes payable and other coupon bearing securities	500			575			1,525
Repayments of notes payable and other coupon bearing securities	(808		)	(915		)	(2,117		)
Loans from subsidiaries	183			—			263
Purchase of treasury stock	(79		)	(482		)	(308		)
Proceeds from issuance of common stock	1			4			1
Common stock dividends paid	(290		)	(276		)	(144		)
Payments for deferred financing costs	(12		)	(6		)	(20		)
Distributions to noncontrolling interests	(2		)	—			—
Other financing	(3		)	(18		)	—
Net cash used in financing activities	(510		)	(1,118		)	(800		)
Effect of exchange rate changes on cash	1			—			—
Increase (decrease) in cash and cash equivalents	(77		)	(325		)	380
Cash and cash equivalents, beginning	186			511			131
Cash and cash equivalents, ending	$	109		$	186		$	511
Supplemental Disclosures:
Cash payments for interest, net of amounts capitalized	$	296		$	314		$	373
Cash payments for income taxes, net of refunds	$	6		$	—		$	(2	)

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	2016			2015
Senior Unsecured Note	8.00%	2017	$	—		$	181
Senior Unsecured Note	LIBOR + 3.00%	2019	240			775
Senior Unsecured Note	8.00%	2020	469			469
Senior Unsecured Note	7.38%	2021	966			1,000
Senior Unsecured Note	4.88%	2023	713			750
Senior Unsecured Note	5.50%	2024	738			750
Senior Unsecured Note	5.50%	2025	573			575
Senior Unsecured Note	6.00%	2026	500			—
Unamortized (discounts)/premiums & debt issuance (costs)			(45		)	(51		)
SUBTOTAL			$	4,154		$	4,449
Less: Current maturities			—			—
Total			$	4,154		$	4,449

Junior Subordinated Notes Payable ($ in millions)

			December 31,
	Interest Rate	Maturity	2016		2015
Term Convertible Trust Securities	6.75%	2029	$	517	$	517

Future Maturities of Recourse Debt — As of December 31, 2016 scheduled maturities are presented in the following table (in millions):

December 31,	Annual Maturities
2017	$	—
2018	—
2019	240
2020	469
2021	966
Thereafter	3,041
Unamortized (discount)/premium & debt issuance (costs)	(45		)
Total debt	$	4,671

Dividends from Subsidiaries and Affiliates

Cash dividends received from consolidated subsidiaries were $1 billion, $748 million, and $880 million for the years ended December 31, 2016, 2015, and 2014, respectively. There were no cash dividends received from affiliates accounted for by the equity method for the years ended December 31, 2016, 2015, and 2014.

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, 2016, by the terms of the agreements, to an aggregate of approximately $535 million representing 19 agreements with individual exposures ranging from $8 million up to $58 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, 2016, the Company had $6 million in letters of credit outstanding under the senior secured credit facility, representing 15 agreements with individual exposures up to $1 million, and $245 million in letters of credit outstanding under the senior unsecured credit facility, representing 8 agreements with individual exposures of $2 million up to $73 million, and $3 million in cash collateralized letters of credit outstanding representing 1 agreement with exposure of $3 million, which operate to guarantee performance relating to certain project development and construction activities and subsidiary operations. During 2016, the Company paid letter of credit fees ranging from 0.2% to 2.5% per annum on the outstanding amounts.