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Schedule I - Condensed Financial Information of Parent
12 Months Ended
Dec. 31, 2018
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,
 
 
2018
 
2017
 
 
(in millions)
ASSETS
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
 
$
19

 
$
10

Accounts and notes receivable from subsidiaries
 
285

 
143

Prepaid expenses and other current assets
 
31

 
27

Total current assets
 
335

 
180

Investment in and advances to subsidiaries and affiliates
 
6,834

 
8,239

Office Equipment:
 
 
 
 
Cost
 
27

 
27

Accumulated depreciation
 
(19
)
 
(18
)
Office equipment, net
 
8

 
9

Other Assets:
 
 
 
 
Other intangible assets, net of accumulated amortization
 
3

 
3

Deferred financing costs, net of accumulated amortization of $4 and $2, respectively
 
4

 
5

Deferred income taxes
 
24

 
289

Other assets
 
2

 
2

Total other assets
 
33

 
299

Total assets
 
$
7,210

 
$
8,727

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
Current Liabilities:
 
 
 
 
Accounts payable
 
$
15

 
$
18

Accounts and notes payable to subsidiaries
 
74

 
381

Accrued and other liabilities
 
206

 
246

Senior notes payable—current portion
 
5

 
5

Total current liabilities
 
300

 
650

Long-term Liabilities:
 
 
 
 
Senior notes payable
 
3,650

 
4,625

Accounts and notes payable to subsidiaries
 
28

 
967

Other long-term liabilities
 
24

 
20

Total long-term liabilities
 
3,702

 
5,612

Stockholders' equity:
 
 
 
 
Common stock
 
8

 
8

Additional paid-in capital
 
8,154

 
8,501

Accumulated deficit
 
(1,005
)
 
(2,276
)
Accumulated other comprehensive loss
 
(2,071
)
 
(1,876
)
Treasury stock
 
(1,878
)
 
(1,892
)
Total stockholders' equity
 
3,208

 
2,465

Total liabilities and equity
 
$
7,210

 
$
8,727


See Notes to Schedule I.THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
STATEMENTS OF OPERATIONS
For the Years Ended December 31,
 
2018
 
2017
 
2016
 
 
(in millions)
Revenue from subsidiaries and affiliates
 
$
36

 
$
28

 
$
14

Equity in earnings of subsidiaries and affiliates
 
1,909

 
630

 
(615
)
Interest income
 
39

 
49

 
19

General and administrative expenses
 
(142
)
 
(158
)
 
(144
)
Other income
 
25

 
5

 
7

Other expense
 

 
(554
)
 
(65
)
Loss on extinguishment of debt
 
(171
)
 
(92
)
 
(14
)
Interest expense
 
(220
)
 
(317
)
 
(344
)
Income (loss) before income taxes
 
1,476

 
(409
)
 
(1,142
)
Income tax benefit (expense)
 
(273
)
 
(752
)
 
12

Net income (loss)
 
$
1,203

 
$
(1,161
)
 
$
(1,130
)
See Notes to Schedule I.THE AES CORPORATION
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
YEARS ENDED DECEMBER 31, 2018, 2017, AND 2016
 
2018
 
2017
 
2016
 
(in millions)
NET INCOME (LOSS)
$
1,203

 
$
(1,161
)
 
$
(1,130
)
Foreign currency translation activity:
 
 
 
 
 
Foreign currency translation adjustments, net of income tax benefit of $2, $11 and $1, respectively
(214
)
 
18

 
117

Reclassification to earnings, net of $0 income tax for all periods
(21
)
 
643

 
992

Total foreign currency translation adjustments, net of tax
(235
)
 
661

 
1,109

Derivative activity:
 
 
 
 
 
Change in derivative fair value, net of income tax benefit (expense) of $16, $13 and $(5), respectively
(64
)
 
(14
)
 
2

Reclassification to earnings, net of income tax benefit (expense) of $(13), $1 and $1, respectively
78

 
37

 
28

Total change in fair value of derivatives, net of tax
14

 
23

 
30

Pension activity:
 
 
 
 
 
Prior service cost for the period, net of income tax expense of $1, $1 and $5, respectively
(2
)
 
1

 
9

Change in pension adjustments due to net actuarial gain (loss) for the period, net of income tax benefit (expense) of $(1), $6 and $10, respectively
2

 
(20
)
 
(22
)
Reclassification of earnings, net of income tax benefit (expense) of $(2), $(126) and $2, respectively
7

 
248

 
1

Total change in unfunded pension obligation
7

 
229

 
(12
)
OTHER COMPREHENSIVE INCOME (LOSS)
(214
)
 
913

 
1,127

COMPREHENSIVE INCOME (LOSS)
$
989

 
$
(248
)
 
$
(3
)
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,
 
2018
 
2017
 
2016
 
 
(in millions)
Net cash provided by operating activities
 
$
409

 
$
148

 
$
818

Investing Activities:
 
 
 
 
 
 
Proceeds from the sale of business interests, net of expenses
 
1,222

 

 

Investment in and net advances to subsidiaries
 
(216
)
 
(339
)
 
(650
)
Return of capital
 
242

 
243

 
247

Additions to property, plant and equipment
 
(13
)
 
(13
)
 
(12
)
Net cash provided by (used in) investing activities
 
1,235

 
(109
)
 
(415
)
Financing Activities:
 
 
 
 
 
 
(Repayments) Borrowings under the revolver, net
 
(207
)
 
207

 

Borrowings of notes payable and other coupon bearing securities
 
1,000

 
1,025

 
500

Repayments of notes payable and other coupon bearing securities
 
(1,933
)
 
(1,353
)
 
(808
)
Loans from (Repayments to) subsidiaries
 
(143
)
 
309

 
183

Purchase of treasury stock
 

 

 
(79
)
Proceeds from issuance of common stock
 
7

 
1

 
1

Common stock dividends paid
 
(344
)
 
(317
)
 
(290
)
Payments for deferred financing costs
 
(11
)
 
(12
)
 
(12
)
Distributions to noncontrolling interests
 

 

 
(2
)
Other financing
 
(5
)
 
(7
)
 
(3
)
Net cash used in financing activities
 
(1,636
)
 
(147
)
 
(510
)
Effect of exchange rate changes on cash
 
1

 
6

 
1

Increase (Decrease) in cash and cash equivalents
 
9

 
(102
)
 
(106
)
Cash and cash equivalents, beginning
 
10

 
112

 
218

Cash and cash equivalents, ending
 
$
19

 
$
10

 
$
112

Supplemental Disclosures:
 
 
 
 
 
 
Cash payments for interest, net of amounts capitalized
 
$
232

 
$
282

 
$
296

Cash payments for income taxes, net of refunds
 
$
10

 
$
2

 
$
6

See Notes to Schedule ISCHEDULE 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 as well as effects of U.S. tax law reform enacted in 2017.
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 and Secured Notes and Loans Payable ($ in millions)
 
 
 
 
 
 
December 31,
 
 
Interest Rate
 
Maturity
 
2018
 
2017
Senior Unsecured Note
 
8.00%
 
2020
 
$

 
$
228

Senior Unsecured Note
 
7.38%
 
2021
 

 
690

Drawings on secured credit facility
 
LIBOR + 2.00%
 
2021
 

 
207

Senior Unsecured Note
 
4.00%
 
2021
 
500

 

Senior Secured Term Loan
 
LIBOR + 1.75%
 
2022
 
366

 
521

Senior Unsecured Note
 
4.50%
 
2023
 
500

 

Senior Unsecured Note
 
4.88%
 
2023
 
713

 
713

Senior Unsecured Note
 
5.50%
 
2024
 
63

 
738

Senior Unsecured Note
 
5.50%
 
2025
 
544

 
573

Senior Unsecured Note
 
6.00%
 
2026
 
500

 
500

Senior Unsecured Note
 
5.13%
 
2027
 
500

 
500

Unamortized (discounts)/premiums & debt issuance (costs)
 
 
 
 
 
(31
)
 
(40
)
Subtotal
 
 
 
 
 
$
3,655

 
$
4,630

Less: Current maturities
 
 
 
 
 
(5
)
 
(5
)
Total
 
 
 
 
 
$
3,650

 
$
4,625


FUTURE MATURITIES OF RECOURSE DEBT — As of December 31, 2018 scheduled maturities are presented in the following table (in millions):
December 31,
Annual Maturities
2019
$
5

2020
5

2021
505

2022
350

2023
1,213

Thereafter
1,608

Unamortized (discount)/premium & debt issuance (costs)
(31
)
Total debt
$
3,655

Dividends from Subsidiaries and AffiliatesCash dividends received from consolidated subsidiaries were $1.9 billion, $1.2 billion and $1 billion for the years ended December 31, 2018, 2017, and 2016, respectively. For the year ended December 31, 2018, $1.2 billion 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, 2018, 2017, and 2016.Guarantees and Letters of Credit
GUARANTEES — In connection with certain of its project financing, acquisition and power purchase 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, 2018 by the terms of the agreements, to an aggregate of approximately $712 million, representing 34 agreements with individual exposures ranging up to $157 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, 2018, the Parent Company had $78 million in letters of credit outstanding under the senior secured credit facility, representing 23 agreements with individual exposures up to $49 million, and $368 million in letters of credit outstanding under the senior unsecured credit facility, representing 10 agreements with individual exposures ranging from $1 million to $247 million. During 2018, the Parent Company paid letter of credit fees ranging from 1% to 3% per annum on the outstanding amounts.