10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________________________________________________________________________________

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-12291

THE AES CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	54-1163725
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

4300 Wilson Boulevard
Arlington,	Virginia	22203
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (703) 522-1315

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	AES	New York Stock Exchange
Corporate Units	AESC	New York Stock Exchange

______________________________________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ Non-accelerated filer ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

______________________________________________________________________________________________

The number of shares outstanding of Registrant’s Common Stock, par value $0.01 per share, on August 1, 2023 was 669,629,035.

The AES Corporation

Form 10-Q for the Quarterly Period ended June 30, 2023

Table of Contents

Glossary of Terms		1
PART I: FINANCIAL INFORMATION		3
ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Income (Loss)	5
	Condensed Consolidated Statements of Changes in Equity	6
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	9
	Note 1 - Financial Statement Presentation	9
	Note 2 - Inventory	12
	Note 3 - Fair Value	12
	Note 4 - Derivative Instruments and Hedging Activities	16
	Note 5 - Financing Receivables	17
	Note 6 - Investments in and Advances to Affiliates	18
	Note 7 - Debt	18
	Note 8 - Commitments and Contingencies	20
	Note 9 - Leases	21
	Note 10 - Redeemable Stock of Subsidiaries	22
	Note 11 - Equity	23
	Note 12 - Segments	25
	Note 13 - Revenue	28
	Note 14 - Other Income and Expense	29
	Note 15 - Asset Impairment Expense	29
	Note 16 - Held-for-Sale	30
	Note 17 - Acquisitions	31
	Note 18 - Earnings Per Share	32
	Note 19 - Risks and Uncertainties	33
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	34
	Executive Summary	34
	Review of Consolidated Results of Operations	38
	SBU Performance Analysis	44
	Key Trends and Uncertainties	52
	Capital Resources and Liquidity	59
	Critical Accounting Policies and Estimates	65
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	66
ITEM 4.	CONTROLS AND PROCEDURES	68
PART II: OTHER INFORMATION		69
ITEM 1.	LEGAL PROCEEDINGS	69
ITEM 1A.	RISK FACTORS	72
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	72
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	72
ITEM 4.	MINE SAFETY DISCLOSURES	72
ITEM 5.	OTHER INFORMATION	72
ITEM 6.	EXHIBITS	73
SIGNATURES		74

1 | The AES Corporation | June 30, 2023 Form 10-Q

Glossary of Terms

The following terms and acronyms appear in the text of this report and have the definitions indicated below:

Adjusted EBITDA	Adjusted earnings before interest income and expense, taxes, depreciation and amortization, a non-GAAP measure of operating performance
Adjusted EBITDA with Tax Attributes	Adjusted earnings before interest income and expense, taxes, depreciation and amortization, adding back the pre-tax effect of Production Tax Credits, Investment Tax Credits and depreciation tax expense allocated to tax equity investors, a non-GAAP measure
Adjusted EPS	Adjusted Earnings Per Share, a non-GAAP measure
Adjusted PTC	Adjusted Pre-tax Contribution, a non-GAAP measure of operating performance
AES	The Parent Company and its subsidiaries and affiliates
AES Andes	AES Andes S.A., formerly AES Gener
AES Brasil	AES Brasil Operações S.A., formerly branded as AES Tietê
AES Clean Energy Development	AES Clean Energy Development, LLC
AES Indiana	Indianapolis Power & Light Company, formerly branded as IPL. AES Indiana is wholly-owned by IPALCO
AES Ohio	The Dayton Power & Light Company, formerly branded as DP&L. AES Ohio is wholly-owned by DPL
AES Renewable Holdings	AES Renewable Holdings, LLC, formerly branded as AES Distributed Energy
AFUDC	Allowance for Funds Used During Construction
AOCL	Accumulated Other Comprehensive Loss
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
BESS	Battery Energy Storage System
CAA	United States Clean Air Act
CAMMESA	Wholesale Electric Market Administrator in Argentina
CCR	Coal Combustion Residuals, which includes bottom ash, fly ash, and air pollution control wastes generated at coal-fired generation plant sites
CECL	Current Expected Credit Loss
CO2	Carbon Dioxide
COD	Commercial Operation Date
CSAPR	Cross-State Air Pollution Rule
CWA	U.S. Clean Water Act
DG Comp	Directorate-General for Competition
DPL	DPL Inc.
EBITDA	Earnings before interest income and expense, taxes, depreciation and amortization, a non-GAAP measure of operating performance
EPA	United States Environmental Protection Agency
EPC	Engineering, Procurement and Construction
ESP	Electric Security Plan
EU	European Union
FASB	Financial Accounting Standards Board
Fluence	Fluence Energy, Inc and its subsidiaries, including Fluence Energy, LLC, which was previously our joint venture with Siemens (NASDAQ: FLNC)
GAAP	Generally Accepted Accounting Principles in the United States
GHG	Greenhouse Gas
GILTI	Global Intangible Low Taxed Income
GW	Gigawatts
GWh	Gigawatt Hours
HLBV	Hypothetical Liquidation at Book Value
IPALCO	IPALCO Enterprises, Inc.
ITC	Investment Tax Credit
IURC	Indiana Utility Regulatory Commission
LIBOR	London Interbank Offered Rate
LNG	Liquid Natural Gas
MMBtu	Million British Thermal Units
MW	Megawatts
MWh	Megawatt Hours
NAAQS	National Ambient Air Quality Standards
NCI	Noncontrolling Interest
NEK	Natsionalna Elektricheska Kompania (state-owned electricity public supplier in Bulgaria)
NM	Not Meaningful
NOV	Notice of Violation
NOX	Nitrogen Oxide
NPDES	National Pollutant Discharge Elimination System
Parent Company	The AES Corporation
Pet Coke	Petroleum Coke
PPA	Power Purchase Agreement
PREPA	Puerto Rico Electric Power Authority
PUCO	The Public Utilities Commission of Ohio
RSU	Restricted Stock Unit

2 | The AES Corporation | June 30, 2023 Form 10-Q

SBU	Strategic Business Unit
SEC	United States Securities and Exchange Commission
SO2	Sulfur Dioxide
TDSIC	Transmission, Distribution, and Storage System Improvement Charge
U.S.	United States
USD	United States Dollar
VAT	Value-Added Tax
VIE	Variable Interest Entity

3 | The AES Corporation | June 30, 2023 Form 10-Q

PART I: FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets (Unaudited)

	June 30, 2023		December 31, 2022
	(in millions, except share and per share amounts)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,322	$	1,374
Restricted cash	517		536
Short-term investments	713		730
Accounts receivable, net of allowance for doubtful accounts of $8 and $5, respectively	1,710		1,799
Inventory	774		1,055
Prepaid expenses	218		98
Other current assets	1,449		1,533
Current held-for-sale assets	502		518
Total current assets	7,205		7,643
NONCURRENT ASSETS
Property, Plant and Equipment:
Land	490		470
Electric generation, distribution assets and other	27,312		26,599
Accumulated depreciation	(8,413)		(8,651)
Construction in progress	6,688		4,621
Property, plant and equipment, net	26,077		23,039
Other Assets:
Investments in and advances to affiliates	858		952
Debt service reserves and other deposits	171		177
Goodwill	362		362
Other intangible assets, net of accumulated amortization of $475 and $434, respectively	2,282		1,841
Deferred income taxes	383		319
Loan receivable, net of allowance of $25 and $26, respectively	1,018		1,051
Other noncurrent assets, net of allowance of $21 and $51, respectively	3,149		2,979
Total other assets	8,223		7,681
TOTAL ASSETS	$	41,505	$	38,363
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$	1,583	$	1,730
Accrued interest	303		249
Accrued non-income taxes	228		249
Accrued and other liabilities	2,232		2,151
Recourse debt	500		—
Non-recourse debt, including $896 and $416, respectively, related to variable interest entities	2,445		1,758
Current held-for-sale liabilities	337		354
Total current liabilities	7,628		6,491
NONCURRENT LIABILITIES
Recourse debt	4,976		3,894
Non-recourse debt, including $2,032 and $2,295, respectively, related to variable interest entities	18,622		17,846
Deferred income taxes	1,104		1,139
Other noncurrent liabilities	3,128		3,168
Total noncurrent liabilities	27,830		26,047
Commitments and Contingencies (see Note 8)
Redeemable stock of subsidiaries	1,289		1,321
EQUITY
THE AES CORPORATION STOCKHOLDERS’ EQUITY
Preferred stock (without par value, 50,000,000 shares authorized; 1,043,050 issued and outstanding at June 30, 2023 and December 31, 2022)	838		838
Common stock ($0.01 par value, 1,200,000,000 shares authorized; 818,808,272 issued and 669,385,716 outstanding at June 30, 2023 and 818,790,001 issued and 668,743,464 outstanding at December 31, 2022)	8		8
Additional paid-in capital	6,550		6,688
Accumulated deficit	(1,523)		(1,635)
Accumulated other comprehensive loss	(1,567)		(1,640)
Treasury stock, at cost (149,422,556 and 150,046,537 shares at June 30, 2023 and December 31, 2022, respectively)	(1,814)		(1,822)
Total AES Corporation stockholders’ equity	2,492		2,437
NONCONTROLLING INTERESTS	2,266		2,067
Total equity	4,758		4,504
TOTAL LIABILITIES AND EQUITY	$	41,505	$	38,363

See Notes to Condensed Consolidated Financial Statements.

4 | The AES Corporation

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions, except share and per share amounts)
Revenue:
Non-Regulated	$	2,193	$	2,276	$	4,480	$	4,293
Regulated	834		802		1,786		1,637
Total revenue	3,027		3,078		6,266		5,930
Cost of Sales:
Non-Regulated	(1,782)		(1,781)		(3,579)		(3,398)
Regulated	(747)		(734)		(1,595)		(1,439)
Total cost of sales	(2,529)		(2,515)		(5,174)		(4,837)
Operating margin	498		563		1,092		1,093
General and administrative expenses	(72)		(46)		(127)		(98)
Interest expense	(310)		(279)		(640)		(537)
Interest income	131		95		254		170
Loss on extinguishment of debt	—		(1)		(1)		(7)
Other expense	(12)		(29)		(26)		(41)
Other income	14		70		24		76
Loss on disposal and sale of business interests	(4)		(2)		(4)		(1)
Asset impairment expense	(174)		(482)		(194)		(483)
Foreign currency transaction losses	(67)		(49)		(109)		(68)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES	4		(160)		269		104
Income tax benefit (expense)	2		19		(70)		(41)
Net equity in earnings (losses) of affiliates	(25)		5		(29)		(28)
NET INCOME (LOSS)	(19)		(136)		170		35
Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	(20)		(43)		(58)		(99)
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	$	(39)	$	(179)	$	112	$	(64)
BASIC EARNINGS PER SHARE:
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS	$	(0.06)	$	(0.27)	$	0.17	$	(0.10)
DILUTED EARNINGS PER SHARE:
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS	$	(0.06)	$	(0.27)	$	0.16	$	(0.10)
DILUTED SHARES OUTSTANDING	669		668		712		668

See Notes to Condensed Consolidated Financial Statements.

5 | The AES Corporation

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
NET INCOME (LOSS)	$	(19)	$	(136)	$	170	$	35
Foreign currency translation activity:
Foreign currency translation adjustments, net of $0 income tax for all periods	79		(149)		119		(17)
Total foreign currency translation adjustments	79		(149)		119		(17)
Derivative activity:
Change in derivative fair value, net of income tax expense of $36, $61, $5, and $134, respectively	124		270		2		542
Reclassification to earnings, net of income tax benefit (expense) of $2, $(3), $11 and $(13), respectively	(7)		20		(48)		38
Total change in fair value of derivatives	117		290		(46)		580
Pension activity:
Change in pension adjustments due to net actuarial gain for the period, net of $0 income tax for all periods	—		—		1		—
Reclassification to earnings, net of $0 income tax for all periods	—		—		—		1
Total pension adjustments	—		—		1		1
OTHER COMPREHENSIVE INCOME	196		141		74		564
COMPREHENSIVE INCOME	177		5		244		599
Less: Comprehensive income attributable to noncontrolling interests and redeemable stock of subsidiaries	(41)		(75)		(59)		(157)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	$	136	$	(70)	$	185	$	442

See Notes to Condensed Consolidated Financial Statements.

6 | The AES Corporation

Condensed Consolidated Statements of Changes in Equity

(Unaudited)

	Six Months Ended June 30, 2023
	Preferred Stock			Common Stock			Treasury Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Noncontrolling Interests
	Shares	Amount		Shares	Amount		Shares	Amount
	(in millions)
Balance at January 1, 2023	1.0	$	838	818.8	$	8	150.0	$	(1,822)	$	6,688	$	(1,635)	$	(1,640)	$	2,067
Net income	—	—		—	—		—	—		—		151		—		52
Total foreign currency translation adjustment, net of income tax	—	—		—	—		—	—		—		—		33		7
Total change in derivative fair value, net of income tax	—	—		—	—		—	—		—		—		(135)		1
Total pension adjustments, net of income tax	—	—		—	—		—	—		—		—		—		1
Total other comprehensive income (loss)	—	—		—	—		—	—		—		—		(102)		9
Distributions to noncontrolling interests	—	—		—	—		—	—		—		—		—		(37)
Acquisitions of noncontrolling interests	—	—		—	—		—	—		(1)		—		—		1
Contributions from noncontrolling interests	—	—		—	—		—	—		—		—		—		2
Sales to noncontrolling interests	—	—		—	—		—	—		(7)		—		—		3
Issuance of preferred shares in subsidiaries	—	—		—	—		—	—		—		—		—		4
Dividends declared on common stock ($0.1659/share)	—	—		—	—		—	—		(111)		—		—		—
Issuance and exercise of stock-based compensation benefit plans, net of income tax	—	—		—	—		(0.5)	7		(12)		—		—		—
Balance at March 31, 2023	1.0	$	838	818.8	$	8	149.5	$	(1,815)	$	6,557	$	(1,484)	$	(1,742)	$	2,101
Net income (loss)	—	—		—	—		—	—		—		(39)		—		42
Total foreign currency translation adjustment, net of income tax	—	—		—	—		—	—		—		—		74		4
Total change in derivative fair value, net of income tax	—	—		—	—		—	—		—		—		101		—
Total other comprehensive income	—	—		—	—		—	—		—		—		175		4
Distributions to noncontrolling interests	—	—		—	—		—	—		—		—		—		(90)
Sales to noncontrolling interests	—	—		—	—		—	—		(17)		—		—		209
Issuance and exercise of stock-based compensation benefit plans, net of income tax	—	—		—	—		(0.1)	1		10		—		—		—
Balance at June 30, 2023	1.0	$	838	818.8	$	8	149.4	$	(1,814)	$	6,550	$	(1,523)	$	(1,567)	$	2,266

7 | The AES Corporation

	Six Months Ended June 30, 2022
	Preferred Stock			Common Stock			Treasury Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Noncontrolling Interests
	Shares	Amount		Shares	Amount		Shares	Amount
	(in millions)
Balance at January 1, 2022	1.0	$	838	818.7	$	8	152.0	$	(1,845)	$	7,106	$	(1,089)	$	(2,220)	$	1,769
Net income	—	—		—	—		—	—		—		115		—		94
Total foreign currency translation adjustment, net of income tax	—	—		—	—		—	—		—		—		131		1
Total change in derivative fair value, net of income tax	—	—		—	—		—	—		—		—		265		22
Total pension adjustments, net of income tax	—	—		—	—		—	—		—		—		1		—
Total other comprehensive income	—	—		—	—		—	—		—		—		397		23
Distributions to noncontrolling interests	—	—		—	—		—	—		—		—		—		(25)
Acquisitions of noncontrolling interests	—	—		—	—		—	—		(93)		—		(76)		(367)
Contributions from noncontrolling interests	—	—		—	—		—	—		—		—		—		86
Sales to noncontrolling interests	—	—		—	—		—	—		7		—		—		30
Issuance of preferred shares in subsidiaries	—	—		—	—		—	—		—		—		—		60
Dividends declared on common stock ($0.1580/share)	—	—		—	—		—	—		(105)		—		—		—
Issuance and exercise of stock-based compensation benefit plans, net of income tax	—	—		—	—		(1.1)	13		(12)		—		—		—
Balance at March 31, 2022	1.0	$	838	818.7	$	8	150.9	$	(1,832)	$	6,903	$	(974)	$	(1,899)	$	1,670
Net income (loss)	—	—		—	—		—	—		—		(179)		—		50
Total foreign currency translation adjustment, net of income tax	—	—		—	—		—	—		—		—		(146)		(3)
Total change in derivative fair value, net of income tax	—	—		—	—		—	—		—		—		255		15
Total other comprehensive income	—	—		—	—		—	—		—		—		109		12
Distributions to noncontrolling interests	—	—		—	—		—	—		—		—		—		(45)
Acquisitions of noncontrolling interests	—	—		—	—		—	—		—		—		—		(2)
Contributions from noncontrolling interests	—	—		—	—		—	—		—		—		—		3
Sales to noncontrolling interests	—	—		—	—		—	—		10		—		—		170
Issuance and exercise of stock-based compensation benefit plans, net of income tax	—	—		—	—		—	—		11		—		—		—
Balance at June 30, 2022	1.0	$	838	818.7	$	8	150.9	$	(1,832)	$	6,924	$	(1,153)	$	(1,790)	$	1,858

See Notes to Condensed Consolidated Financial Statements.

8 | The AES Corporation

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
	2023		2022
	(in millions)
OPERATING ACTIVITIES:
Net income	$	170	$	35
Adjustments to net income:
Depreciation and amortization	550		534
Loss on disposal and sale of business interests	4		1
Impairment expense	199		483
Deferred income taxes	(119)		(43)
Loss on extinguishment of debt	1		7
Loss of affiliates, net of dividends	29		52
Emissions allowance expense	139		239
Loss on realized/unrealized foreign currency	71		20
Other	99		28
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	60		(262)
(Increase) decrease in inventory	276		(227)
(Increase) decrease in prepaid expenses and other current assets	71		(187)
(Increase) decrease in other assets	74		94
Increase (decrease) in accounts payable and other current liabilities	(305)		151
Increase (decrease) in income tax payables, net and other tax payables	(85)		(114)
Increase (decrease) in deferred income	42		59
Increase (decrease) in other liabilities	(89)		(5)
Net cash provided by operating activities	1,187		865
INVESTING ACTIVITIES:
Capital expenditures	(3,396)		(1,659)
Acquisitions of business interests, net of cash and restricted cash acquired	(290)		(107)
Proceeds from the sale of business interests, net of cash and restricted cash sold	98		1
Sale of short-term investments	706		345
Purchase of short-term investments	(620)		(694)
Contributions and loans to equity affiliates	(112)		(169)
Purchase of emissions allowances	(115)		(293)
Other investing	(21)		(7)
Net cash used in investing activities	(3,750)		(2,583)
FINANCING ACTIVITIES:
Borrowings under the revolving credit facilities and commercial paper program	16,716		3,100
Repayments under the revolving credit facilities and commercial paper program	(15,809)		(2,269)
Issuance of recourse debt	1,400		—
Repayments of recourse debt	—		(29)
Issuance of non-recourse debt	1,457		3,132
Repayments of non-recourse debt	(944)		(1,469)
Payments for financing fees	(67)		(38)
Purchases under supplier financing arrangements	818		173
Repayments of obligations under supplier financing arrangements	(862)		(134)
Distributions to noncontrolling interests	(147)		(93)
Acquisitions of noncontrolling interests	(1)		(540)
Contributions from noncontrolling interests	18		28
Sales to noncontrolling interests	189		229
Issuance of preferred shares in subsidiaries	3		60
Dividends paid on AES common stock	(222)		(211)
Payments for financed capital expenditures	(7)		(9)
Other financing	(13)		(6)
Net cash provided by financing activities	2,529		1,924
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(37)		(18)
Increase in cash, cash equivalents and restricted cash of held-for-sale businesses	(6)		(21)
Total increase (decrease) in cash, cash equivalents and restricted cash	(77)		167
Cash, cash equivalents and restricted cash, beginning	2,087		1,484
Cash, cash equivalents and restricted cash, ending	$	2,010	$	1,651
SUPPLEMENTAL DISCLOSURES:
Cash payments for interest, net of amounts capitalized	$	512	$	423
Cash payments for income taxes, net of refunds	200		141
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Initial recognition of contingent consideration for acquisitions (see Note 17)	218		15
Non-cash contributions from noncontrolling interests	30		—

See Notes to Condensed Consolidated Financial Statements.

9 | Notes to Condensed Consolidated Financial Statements | June 30, 2023 and 2022

Notes to Condensed Consolidated Financial Statements

For the Three and Six Months Ended June 30, 2023 and 2022

(Unaudited)

1. FINANCIAL STATEMENT PRESENTATION

Consolidation — In this Quarterly Report, the terms “AES,” “the Company,” “us” or “we” refer to the consolidated entity, including its subsidiaries and affiliates. The terms “The AES Corporation” or “the Parent Company” refer only to the publicly held holding company, The AES Corporation, excluding its subsidiaries and affiliates. Furthermore, VIEs in which the Company has a variable interest have been consolidated where the Company is the primary beneficiary. Investments in which the Company has the ability to exercise significant influence, but not control, are accounted for using the equity method of accounting, except for our investment in Alto Maipo, for which we have elected the fair value option as permitted under ASC 825. All intercompany transactions and balances have been eliminated in consolidation.

Interim Financial Presentation — The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial information and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, comprehensive income, changes in equity, and cash flows. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of expected results for the year ending December 31, 2023. The accompanying condensed consolidated financial statements are unaudited and should be read in conjunction with the 2022 audited consolidated financial statements and notes thereto, which are included in the 2022 Form 10-K filed with the SEC on March 1, 2023 (the “2022 Form 10-K”).

Cash, Cash Equivalents, and Restricted Cash — The following table provides a summary of cash, cash equivalents, and restricted cash amounts reported on the Condensed Consolidated Balance Sheets that reconcile to the total of such amounts as shown on the Condensed Consolidated Statements of Cash Flows (in millions):

	June 30, 2023		December 31, 2022
Cash and cash equivalents	$	1,322	$	1,374
Restricted cash	517		536
Debt service reserves and other deposits	171		177
Cash, Cash Equivalents, and Restricted Cash	$	2,010	$	2,087

ASC 326 - Financial Instruments - Credit Losses — The following table represents the rollforward of the allowance for credit losses for the period indicated (in millions):

10 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

Six Months Ended June 30, 2023	Accounts Receivable		Mong Duong Receivables		Argentina Receivables		Lease Receivable (2)		Other		Total
CECL reserve balance at beginning of period	$	3	$	29	$	30	$	20	$	2	$	84
Current period provision	10		—		—		—		9		19
Write-offs charged against allowance	(7)		—		—		(20)		—		(27)
Recoveries collected	2		(1)		—		—		—		1
Foreign exchange	—		—		(9)		—		(1)		(10)
CECL reserve balance at end of period	$	8	$	28	$	21	$	—	$	10	$	67

Six Months Ended June 30, 2022	Accounts Receivable (1)		Mong Duong Receivables		Argentina Receivables		Lease Receivable (2)		Other		Total
CECL reserve balance at beginning of period	$	3	$	30	$	23	$	—	$	7	$	63
Current period provision	5		—		3		20		—		28
Write-offs charged against allowance	(5)		—		—		—		(6)		(11)
Recoveries collected	1		(1)		—		—		—		—
Foreign exchange	—		—		(5)		—		—		(5)
CECL reserve balance at end of period	$	4	$	29	$	21	$	20	$	1	$	75

_____________________________

(1)Excludes operating lease receivable allowances and contractual dispute allowances of $5 million as of June 30, 2022. These reserves are not in scope under ASC 326.

(2)Lease receivable credit losses allowance at Southland Energy (AES Gilbert).

ASC 450 - Liabilities - Supplier Finance Programs — With some purchases, AES enters into supplier financing arrangements. The company generally uses an intermediary entity between the supplier and the Company, but sometimes enters into these agreements directly with the supplier, with the goal of securing improved payment terms. These arrangements are included in Accrued and other liabilities on the Condensed Consolidated Balance Sheets as the amounts are all due in less than a year; the related interest expense is recorded on the Condensed Consolidated Statements of Operations within Interest expense. The company had 65 supplier financing arrangements with a total outstanding balance of $617 million as of June 30, 2023, and 46 supplier financing arrangements with a total outstanding balance of $662 million as of December 31, 2022. The agreements ranged from less than $1 million to $69 million with a weighted average interest rate of 6.95% as of June 30, 2023; as of December 31, 2022, the agreements ranged from less than $1 million to $88 million with a weighted average interest rate of 4.32%. Of the amounts outstanding under supplier financing arrangements, $477 million and $296 million were guaranteed by the Parent Company as of June 30, 2023 and December 31, 2022, respectively.

New Accounting Pronouncements Adopted in 2023 — The following table provides a brief description of recent accounting pronouncements that had an impact on the Company’s consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on the Company’s consolidated financial statements.

New Accounting Standards Adopted
ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	This update is to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the following: (1) recognition of an acquired contract liability, and (2) payment terms and their effect on subsequent revenue recognized by the acquirer. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application.	January 1, 2023	The Company adopted this standard on a prospective basis, which will be applied to any business combinations that occur in 2023 or after. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.

11 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures	ASU 2022-02 amends ASC 326-20-50-6 to require public business entities to disclose gross write-offs recorded in the current period, on a year-to-date basis, by year of origination in the vintage disclosures. This disclosure should cover each of the previous five annual periods starting with the date of the financial statements and, for the annual periods before that, an aggregate total. However, upon adoption of the ASU, an entity would not provide the previous five annual periods of gross write-offs. The FASB decided that disclosure of gross write-offs would instead be applied on a prospective transition basis so that preparers can “build” the five-annual-period disclosure over time.	January 1, 2023	The Company adopted this standard on a prospective basis and it did not have a material impact on the financial statements.
2022-04,Liabilities - Supplier Finance Programs (Topic 450-50): Disclosure of Supplier Finance Program Obligations	This update is to provide additional information and disclosures about an entity’s use of supplier finance programs to see how these programs will affect an entity’s working capital, liquidity, and cash flows. Entities that use supplier finance programs as the buyer party should disclose (1) the key terms of the payment terms and assets pledged as security or other forms of guarantees provided and (2) the unpaid amount outstanding, a description of where those obligations are presented on the balance sheet, and a rollforward of those obligations during the annual period.	January 1, 2023, except for the rollforward information, which is effective for fiscal years beginning after December 15, 2023.	The ASU only requires disclosures related to the Company's supplier finance programs and does not affect the recognition, measurement, or presentation of supplier finance program obligations on the balance sheet or cash flow statement. The Company adopted the new disclosure requirements in the first quarter of 2023, except for the annual requirement to disclose rollforward information, which the Company expects to adopt and present prospectively beginning in the 2024 annual financial statements.
2023-03, Presentation of Financial Statements (Topic 205), Income Statement - Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation - Stock Compensation (Topic 718)	This Accounting Standards Update amends various SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. The amendments in this Update are effective for all entities upon issuance of this Update.	June 30, 2023	The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

New Accounting Pronouncements Issued But Not Yet Effective — The following table provides a brief description of recent accounting pronouncements that could have a material impact on the Company’s consolidated financial statements once adopted. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on the Company’s consolidated financial statements.

New Accounting Standards Issued But Not Yet Effective
ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2023-01 Leases (Topic 842): Common Control Arrangements	The amendments in this Update require that leasehold improvements associated with common control leases be: 1. Amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset (the leased asset) through a lease. However, if the lessor obtained the right to control the use of the underlying asset through a lease with another entity not within the same common control group, the amortization period may not exceed the amortization period of the common control group. 2. Accounted for as a transfer between entities under common control through an adjustment to equity (or net assets for not-for-profit entities) if, and when, the lessee no longer controls the use of the underlying asset. Additionally, those leasehold improvements are subject to the impairment guidance in Topic 360, Property, Plant, and Equipment.	For fiscal years beginning after December 15, 2023, including interim periods within those fiscal years.	The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements.

12 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

2. INVENTORY

The following table summarizes the Company’s inventory balances as of the periods indicated (in millions):

	June 30, 2023		December 31, 2022
Fuel and other raw materials	$	483	$	733
Spare parts and supplies	291		322
Total	$	774	$	1,055

3. FAIR VALUE

The fair value of current financial assets and liabilities, debt service reserves, and other deposits approximate their reported carrying amounts. The estimated fair values of the Company’s assets and liabilities have been determined using available market information. Because these amounts are estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 5—Fair Value in Item 8.—Financial Statements and Supplementary Data of our 2022 Form 10-K.

Recurring Measurements

The following table presents, by level within the fair value hierarchy, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated (in millions). For the Company’s investments in marketable debt securities, the security classes presented were determined based on the nature and risk of the security and are consistent with how the Company manages, monitors, and measures its marketable securities:

	June 30, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:
Certificates of deposit	$	—	$	677	$	—	$	677	$	—	$	698	$	—	$	698
Government debt securities	—		3		—		3		—		3		—		3
Total debt securities	—		680		—		680		—		701		—		701
EQUITY SECURITIES:
Mutual funds	44		—		—		44		38		—		—		38
Total equity securities	44		6		—		50		38		—		—		38
DERIVATIVES:
Interest rate derivatives	—		273		—		273		—		314		—		314
Foreign currency derivatives	—		23		63		86		—		22		64		86
Commodity derivatives	—		233		7		240		—		232		13		245
Total derivatives — assets	—		529		70		599		—		568		77		645
TOTAL ASSETS	$	44	$	1,215	$	70	$	1,329	$	38	$	1,269	$	77	$	1,384
Liabilities
Contingent consideration	$	—	$	—	$	274	$	274	$	—	$	—	$	48	$	48
DERIVATIVES:
Interest rate derivatives	—		15		1		16		—		6		—		6
Cross-currency derivatives	—		76		—		76		—		42		—		42
Foreign currency derivatives	—		22		—		22		—		20		—		20
Commodity derivatives	—		212		85		297		—		346		60		406
Total derivatives — liabilities	—		325		86		411		—		414		60		474
TOTAL LIABILITIES	$	—	$	325	$	360	$	685	$	—	$	414	$	108	$	522

As of June 30, 2023, all available-for-sale debt securities had stated maturities within one year. There were no other-than-temporary impairments of marketable securities during the three and six months ended June 30, 2023. The level 3 contingent consideration relates mainly to the acquisition of Bellefield on June 5, 2023. For further information on the acquisition, see Note 17—Acquisitions. Credit-related impairments are recognized in earnings under ASC 326. Gains and losses on the sale of investments are determined using the specific-identification method. The following table presents gross proceeds from the sale of available-for-sale securities during the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Gross proceeds from sale of available-for-sale securities	$	370	$	150	$	739	$	347

13 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

The following tables present a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2023 and 2022 (presented net by type of derivative in millions). Transfers between Level 3 and Level 2 principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.

	Derivative Assets and Liabilities
Three Months Ended June 30, 2023	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at April 1	$	(5)	$	62	$	(69)	$	(55)	$	(67)
Total realized and unrealized gains (losses):
Included in earnings	—		7		(1)		(1)		5
Included in other comprehensive income (loss) — derivative activity	16		3		(10)		—		9
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		—		—
Included in regulatory (assets) liabilities	—		—		3		—		3
Acquisitions	—		—		—		(218)		(218)
Settlements	(2)		(9)		(2)		—		(13)
Transfers of assets (liabilities), net into Level 3	—		—		—		—		—
Transfers of (assets) liabilities, net out of Level 3	(10)		—		1		—		(9)
Balance at June 30, 2023	$	(1)	$	63	$	(78)	$	(274)	$	(290)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	—	$	—	$	(2)	$	(1)	$	(3)
	Derivative Assets and Liabilities
Three Months Ended June 30, 2022	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at April 1	$	1	$	93	$	(13)	$	(69)	$	12
Total realized and unrealized gains (losses):
Included in earnings	1		(32)		(4)		—		(35)
Included in other comprehensive income (loss) — derivative activity	5		(11)		6		—		—
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		2		2
Included in regulatory (assets) liabilities	—		—		15		—		15
Acquisitions	—		—		—		(15)		(15)
Settlements	—		—		2		5		7
Transfers of assets (liabilities), net into Level 3	—		—		31		—		31
Transfers of (assets) liabilities, net out of Level 3	(6)		—		—		—		(6)
Balance at June 30, 2022	$	1	$	50	$	37	$	(77)	$	11
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	1	$	(32)	$	—	$	2	$	(29)

14 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

	Derivative Assets and Liabilities
Six Months Ended June 30, 2023	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at January 1	$	—	$	64	$	(47)	$	(48)	$	(31)
Total realized and unrealized gains (losses):
Included in earnings	—		6		(1)		(7)		(2)
Included in other comprehensive income (loss) — derivative activity	—		2		(27)		—		(25)
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		(1)		(1)
Included in regulatory (assets) liabilities	—		—		(2)		—		(2)
Acquisitions	—		—		—		(218)		(218)
Settlements	—		(9)		(2)		—		(11)
Transfers of assets (liabilities), net into Level 3	(1)		—		—		—		(1)
Transfers of (assets) liabilities, net out of Level 3	—		—		1		—		1
Balance at June 30, 2023	$	(1)	$	63	$	(78)	$	(274)	$	(290)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	—	$	(1)	$	(1)	$	(8)	$	(10)
	Derivative Assets and Liabilities
Six Months Ended June 30, 2022	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at January 1	$	(6)	$	108	$	(1)	$	(64)	$	37
Total realized and unrealized gains (losses):
Included in earnings	3		(44)		(4)		(1)		(46)
Included in other comprehensive income (loss) — derivative activity	10		(14)		(8)		—		(12)
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		(2)		(2)
Included in regulatory (assets) liabilities	—		—		15		—		15
Acquisitions	—		—		—		(15)		(15)
Settlements	—		—		2		5		7
Transfers of assets (liabilities), net into Level 3	—		—		31		—		31
Transfers of (assets) liabilities, net out of Level 3	(6)		—		2		—		(4)
Balance at June 30, 2022	$	1	$	50	$	37	$	(77)	$	11
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	3	$	(44)	$	1	$	(2)	$	(42)

The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of June 30, 2023 (in millions, except range amounts):

Type of Derivative	Fair Value		Unobservable Input	Amount or Range (Weighted Average)
Interest rate	$	(1)	Subsidiary credit spread	0.4% to 2.5% (1.7%)
Foreign currency:
Argentine peso	63		Argentine peso to U.S. dollar currency exchange rate after one year	576 to 957 (854)
Commodity:
CAISO Energy Swap	(86)		Forward energy prices per MWh after 2030	$12 to $97 ($52)
Other	8
Total	$	(16)

For interest rate derivatives and foreign currency derivatives, increases (decreases) in the estimates of the Company’s own credit spreads would decrease (increase) the value of the derivatives in a liability position. For foreign currency derivatives, increases (decreases) in the estimate of the above exchange rate would increase (decrease) the value of the derivative.

Contingent consideration is primarily related to future milestone payments associated with acquisitions of renewable development projects. The estimated fair value of contingent consideration is determined using probability-weighted discounted cash flows based on internal forecasts, which are considered Level 3 inputs. Changes in Level 3 inputs, particularly changes in the probability of achieving development milestones, could result in material changes to the fair value of the contingent consideration and could materially impact the amount of expense or income recorded each reporting period. Contingent consideration is updated quarterly with any

15 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

prospective changes in fair value recorded through earnings.

Nonrecurring Measurements

The Company measures fair value using the applicable fair value measurement guidance. Impairment expense, shown as pre-tax loss below, is measured by comparing the fair value at the evaluation date to the then-latest available carrying amount and is included in Asset impairment expense or Other non-operating expense, as applicable, on the Condensed Consolidated Statements of Operations. The following table summarizes our major categories of asset groups measured at fair value on a nonrecurring basis and their level within the fair value hierarchy (in millions).

	Measurement Date	Carrying Amount (1)		Fair Value						Pre-tax Loss
Six Months Ended June 30, 2023				Level 1		Level 2		Level 3
Long-lived assets held and used:
Norgener (2)	5/1/2023	$	196	$	—	$	—	$	24	$	137
GAF Projects (AES Renewable Holdings)	5/31/2023	29		—		—		11		18
Held-for-sale businesses: (3)
Jordan (4)	3/31/2023	$	179	$	—	$	170	$	—	$	14
Jordan (4)	6/30/2023	179		—		170		—		15
	Measurement Date	Carrying Amount (1)		Fair Value
Six Months Ended June 30, 2022				Level 1		Level 2		Level 3		Pre-tax Loss
Long-lived assets held and used:
Maritza	4/30/2022	$	927	$	—	$	—	$	452	$	475

_____________________________

(1)Represents the carrying values of the asset groups at the dates of measurement, before fair value adjustment.

(2)The Norgener asset group includes long-lived assets, inventory, land, and other working capital, however per ASC 360-10, the pre-tax impairment expense is limited to the carrying amount of the long-lived assets. See Note 15 — Asset Impairment Expense for further information. The Company evaluated the carrying amount of the assets outside the scope of ASC 360-10 and determined that the carrying value of the other assets should not be reduced.

(3)See Note 16 — Held-for-Sale for further information.

(4)The pre-tax loss recognized was calculated using the $170 million fair value of the Jordan disposal group less costs to sell of $5 million and $6 million for the March 31, 2023 and June 30, 2023 measurement dates, respectively.

The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets held and used measured on a nonrecurring basis during the six months ended June 30, 2023 (in millions, except range amounts):

	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Long-lived assets held and used:
Norgener (1)	$	24	Discounted cash flow	Annual revenue growth	(90)% to 994% (85%)
				Annual variable margin	(75)% to 276% (16%)
GAF Projects (AES Renewable Holdings)	11		Discounted cash flow	Annual revenue growth	(42)% to 44% (1%)
				Annual variable margin	(194)% to 77% (66%)
				Discount rate	9%
Total	$	35

_____________________________

(1)The fair value of the Norgener asset group is mainly related to existing coal inventory not subject to impairment under ASC 360-10.

Financial Instruments not Measured at Fair Value in the Condensed Consolidated Balance Sheets

The following table presents (in millions) the carrying amount, fair value, and fair value hierarchy of the Company’s financial assets and liabilities that are not measured at fair value in the Condensed Consolidated Balance Sheets as of the periods indicated, but for which fair value is disclosed:

		June 30, 2023
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	295	$	338	$	—	$	—	$	338
Liabilities:	Non-recourse debt	20,872		20,540		—		19,084		1,456
	Recourse debt	5,476		5,093		—		5,093		—

		December 31, 2022
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	255	$	294	$	—	$	—	$	294
Liabilities:	Non-recourse debt	19,429		18,527		—		17,089		1,438
	Recourse debt	3,894		3,505		—		3,505		—

_____________________________

(1)These amounts primarily relate to amounts impacted by the Stabilization Funds enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets.

16 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

4. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

For further information on the Company’s derivative and hedge accounting policies, see Note 1—General and Summary of Significant Accounting Policies—Derivatives and Hedging Activities of Item 8.—Financial Statements and Supplementary Data in the 2022 Form 10-K.

Volume of Activity — The following tables present the Company’s maximum notional (in millions) over the remaining contractual period by type of derivative as of June 30, 2023, regardless of whether they are in qualifying cash flow hedging relationships, and the dates through which the maturities for each type of derivative range:

Interest Rate and Foreign Currency Derivatives	Maximum Notional Translated to USD		Latest Maturity
Interest rate	$	7,062	2059
Cross-currency swaps (Brazilian real)	404		2026
Foreign Currency:
Chilean peso	173		2026
Euro	142		2025
Colombian peso	49		2024
Brazilian real	28		2024
Mexican peso	12		2024
Argentine peso	3		2026

Commodity Derivatives	Maximum Notional	Latest Maturity
Natural Gas (in MMBtu)	108	2029
Power (in MWhs)	18	2040
Coal (in Tons or Metric Tons)	5	2027

Accounting and Reporting — Assets and Liabilities — The following tables present the fair value of assets and liabilities related to the Company’s derivative instruments as of the periods indicated (in millions):

Fair Value	June 30, 2023						December 31, 2022
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	273	$	—	$	273	$	313	$	1	$	314
Foreign currency derivatives	29		57		86		27		59		86
Commodity derivatives	—		240		240		—		245		245
Total assets	$	302	$	297	$	599	$	340	$	305	$	645
Liabilities
Interest rate derivatives	$	16	$	—	$	16	$	6	$	—	$	6
Cross-currency derivatives	76		—		76		42		—		42
Foreign currency derivatives	3		19		22		9		11		20
Commodity derivatives	86		211		297		59		347		406
Total liabilities	$	181	$	230	$	411	$	116	$	358	$	474

	June 30, 2023				December 31, 2022
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	310	$	127	$	271	$	168
Noncurrent	289		284		374		306
Total	$	599	$	411	$	645	$	474

17 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

Earnings and Other Comprehensive Income (Loss) — The following table presents the pre-tax gains (losses) recognized in AOCL and earnings related to all derivative instruments for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives	$	160	$	323	$	22	$	627
Foreign currency derivatives	4		(24)		12		(12)
Commodity derivatives	(4)		32		(27)		61
Total	$	160	$	331	$	7	$	676
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives	$	13	$	(23)	$	49	$	(50)
Foreign currency derivatives	(3)		—		(3)		—
Commodity derivatives	(1)		—		13		(1)
Total	$	9	$	(23)	$	59	$	(51)
Gains (losses) on fair value hedging relationship
Cross-currency derivatives	$	(33)	$	8	$	(86)	$	(35)
Hedged items	3		(25)		53		22
Total	$	(30)	$	(17)	$	(33)	$	(13)
Loss reclassified from AOCL to earnings due to impairment of assets	$	—	$	(16)	$	—	$	(16)
Gains (losses) reclassified from AOCL to earnings due to discontinuance of hedge accounting	$	13	$	(15)	14		(15)
Gains (losses) recognized in earnings related to
Not designated as hedging instruments:
Interest rate derivatives	$	—	$	1	$	—	$	3
Foreign currency derivatives	4		4		—		(15)
Commodity derivatives and other	126		30		191		17
Total	$	130	$	35	$	191	$	5

AOCL is expected to increase pre-tax income from continuing operations for the twelve months ended June 30, 2024 by $39 million, primarily due to interest rate derivatives.

5. FINANCING RECEIVABLES

Receivables with contractual maturities of greater than one year are considered financing receivables. The following table presents financing receivables by country as of the dates indicated (in millions):

	June 30, 2023						December 31, 2022
	Gross Receivable		Allowance		Net Receivable		Gross Receivable		Allowance		Net Receivable
Chile	$	244	$	—	$	244	$	239	$	—	$	239
U.S.	39		—		39		—		—		—
Other	13		—		13		18		—		18
Total	$	296	$	—	$	296	$	257	$	—	$	257

Chile — AES Andes has recorded receivables pertaining to revenues recognized on regulated energy contracts that were impacted by the Stabilization Funds created by the Chilean government in October 2019 and August 2022, in conjunction with the Tariff Stabilization Laws. Historically, the government updated the prices for these contracts every six months to reflect the contracts' indexation to exchange rates and commodities prices. The Tariff Stabilization Laws do not allow the pass-through of these contractual indexation updates to customers beyond the pricing in effect at July 1, 2019, until new lower-cost renewable contracts are incorporated to supply regulated contracts. Consequently, costs incurred in excess of the July 1, 2019 price are accumulated and borne by generators. Through different programs, AES Andes aims to reduce its exposure and has already sold a significant portion of the receivables accumulated as of December 31, 2021.

As of June 30, 2023, $226 million of noncurrent receivables were recorded in Other noncurrent assets pertaining to the Stabilization Funds. Additionally, $18 million of payment deferrals granted to mining customers as part of our green blend agreements were recorded as financing receivables included in Other noncurrent assets at June 30, 2023.

18 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

6. INVESTMENTS IN AND ADVANCES TO AFFILIATES

Summarized Financial Information — The following table summarizes financial information of the Company’s 50%-or-less-owned affiliates and majority-owned unconsolidated subsidiaries that are accounted for using the equity method (in millions):

	50%-or-less Owned Affiliates				Majority-Owned Unconsolidated Subsidiaries
Six Months Ended June 30,	2023		2022		2023		2022
Revenue	$	1,370	$	792	$	1	$	1
Operating loss	(34)		(249)		—		—
Net loss	(91)		(323)		—		—
Net loss attributable to affiliates	(72)		(275)		—		—

sPower — In December 2022, the Company agreed to sell 49% of its indirect interest in a portfolio of sPower's operating assets ("OpCo B"). On February 28, 2023, sPower closed on the sale for $196 million. As a result of the transaction, the Company received $98 million in sales proceeds and recorded a pre-tax gain on sale of $5 million, recorded in Loss on disposal and sale of business interests. After the sale, the Company's ownership interest in OpCo B decreased from 50% to approximately 26%. As the Company still does not control but has significant influence over sPower after the transaction, it continues to be accounted for as an equity method investment and is reported in the Renewables SBU reportable segment.

Alto Maipo — In May 2022, Alto Maipo emerged from bankruptcy in accordance with Chapter 11 of the U.S. Bankruptcy Code. Alto Maipo, as restructured, is considered a VIE. As the Company lacks the power to make significant decisions, it does not meet the criteria to be considered the primary beneficiary of Alto Maipo and therefore does not consolidate the entity. The Company has elected the fair value option to account for its investment in Alto Maipo as management believes this approach will better reflect the economics of its equity interest. As of June 30, 2023, the fair value is insignificant. Alto Maipo is reported in the Energy Infrastructure SBU reportable segment.

7. DEBT

Recourse Debt

Senior Notes due 2028 — In May 2023, the Company issued $900 million aggregate principal of 5.45% senior notes due in 2028. The Company used the proceeds from this issuance for general corporate purposes and to fund investments in the Company’s Renewables and Utilities SBUs.

AES Clean Energy Development — In March 2023, AES Clean Energy Development Holdings, LLC executed a $500 million bridge loan due in December 2023 and used the proceeds for general corporate purposes. The obligations under the bridge loan are unsecured and are fully guaranteed by the Parent Company.

Commercial Paper Program — In March 2023, the Company established a commercial paper program under which the Company may issue unsecured commercial paper notes (the “Notes”) up to a maximum aggregate face amount of $750 million outstanding at any time. The maturities of the Notes may vary but will not exceed 397 days from the date of issuance. The proceeds of the Notes will be used for general corporate purposes. The Notes will be sold on customary terms in the U.S. commercial paper market on a private placement basis. The Company must have revolving credit facilities in place, and the Company cannot issue commercial paper in an aggregate amount exceeding the then available capacity under its revolving credit facilities. As of June 30, 2023, the Company had $517 million outstanding borrowings under the commercial paper program with a weighted average interest rate of 6.06%. The Notes are classified as noncurrent.

Non-Recourse Debt

During the six months ended June 30, 2023, the Company’s subsidiaries had the following significant debt transactions (in millions):

Subsidiary	Transaction Period	Issuances		Repayments		Loss on Extinguishment of Debt
Netherlands and Colon	Q1	$	350	$	(500)	$	(1)
AES Brasil	Q1	169		—		—
AES Clean Energy	Q2	497		—		—
AES Ohio	Q2	100		—		—

19 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

Netherlands and Colon — In March 2022, AES Hispanola Holdings BV, a Netherlands based company, and Colon, as co-borrowers, executed a $500 million bridge loan due in 2023. The Company allocated $450 million and $50 million of the proceeds from the agreement to AES Hispanola Holdings BV and Colon, respectively.

In January 2023, AES Hispanola Holdings BV and Colon, as co-borrowers, executed a $350 million credit agreement at 8.85%, due in 2028. The Company allocated $300 million and $50 million of the proceeds from the agreement to AES Hispanola Holdings BV and Colon, respectively. The net proceeds from the agreement were used to partially repay the $500 million bridge loan executed in 2022. The remaining principal outstanding of the bridge loan was repaid with proceeds from operating cash flows as well as cash from the Parent Company. As a result of these transactions, the Company recognized a loss on extinguishment of debt of $1 million for the six months ended June 30, 2023.

United Kingdom — On January 6, 2022, Mercury Chile HoldCo LLC (“Mercury Chile”), a UK based company, executed a $350 million bridge loan, and used the proceeds, as well as an additional capital contribution of $196 million from the Parent Company, to purchase the minority interest in AES Andes through intermediate holding companies (see Note 11—Equity for further information). On January 24, 2022, Mercury Chile issued $360 million aggregate principal of 6.5% senior secured notes due in 2027 and used the proceeds from the issuance to fully prepay the $350 million bridge loan.

AES Clean Energy — In December 2022, AES Clean Energy Development, AES Renewable Holdings, and sPower, an equity method investment, collectively referred to as the Issuers, entered into a Master Indenture agreement whereby long-term notes will be issued from time to time to finance or refinance operating wind, solar, and energy storage projects that are owned by the Issuers. On December 13, 2022, the Issuers entered into the Note Purchase Agreement for the issuance of up to $647 million of 6.55% Senior Notes due in 2047. The notes were sold on December 14, 2022, at par for $647 million. In 2023, the Issuers sold an additional $246 million in 6.37% notes, resulting in aggregate principal amount of notes issued of $893 million. Each of the Issuers is considered a “Co-Issuer” and will be jointly and severally liable with each other Co-Issuer for all obligations under the facility. As a result of the 2023 issuance, AES Clean Energy Development recorded an increase in liabilities of $215 million, resulting in an aggregate carrying amount of the notes attributable to AES Clean Energy Development and AES Renewable Holdings of $252 million as of June 30, 2023.

In 2021, AES Clean Energy Development, AES Renewable Holdings, and sPower, collectively referred to as the Borrowers, executed two Credit Agreements with aggregate commitments of $1.2 billion and maturity dates in December 2024 and September 2025. The Borrowers executed amendments to the revolving credit facilities, which resulted in an aggregate increase in the commitments of $2.1 billion, bringing the total commitments under the new agreements to $3.3 billion. Under a 2023 amendment, the maturity date of one of the Credit Agreements was extended from December 2024 to May 2026. Each of the Borrowers is considered a “Co-Borrower” and will be jointly and severally liable with each other Co-Borrower for all obligations under the facilities. As a result of increases in commitments used, AES Clean Energy Development and AES Renewable Holdings recorded, in aggregate, an increase in liabilities of $641 million in 2023, resulting in total commitments used under the revolving credit facilities, as of June 30, 2023, of $1.9 billion. As of June 30, 2023, the aggregate commitments used under the revolving credit facilities for the Co-Borrowers was $2.5 billion.

Non-Recourse Debt Covenants, Restrictions, and Defaults — The terms of the Company's non-recourse debt include certain financial and nonfinancial covenants. These covenants are limited to subsidiary activity and vary among the subsidiaries. These covenants may include, but are not limited to, maintenance of certain reserves and financial ratios, minimum levels of working capital, and limitations on incurring additional indebtedness.

As of June 30, 2023 and December 31, 2022, approximately $402 million and $424 million, respectively, of restricted cash was maintained in accordance with certain covenants of the non-recourse debt agreements. These amounts were included within Restricted cash and Debt service reserves and other deposits in the accompanying Condensed Consolidated Balance Sheets.

Various lender and governmental provisions restrict the ability of certain of the Company's subsidiaries to transfer their net assets to the Parent Company. Such restricted net assets of subsidiaries amounted to approximately $1.8 billion at June 30, 2023.

The following table summarizes the Company’s subsidiary non-recourse debt in default (in millions) as of June 30, 2023. Due to the defaults, these amounts are included in the current portion of non-recourse debt unless otherwise indicated:

20 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

Subsidiary	Primary Nature of Default	Debt in Default		Net Assets (Liabilities)
AES Maritza(1)	Covenant	$	164	$	314
AES Puerto Rico	Covenant/Payment	143		(173)
AES Ilumina (Puerto Rico)	Covenant	25		28
AES Jordan Solar	Covenant	7		11
Total		$	339

_____________________________

(1)In July 2023, AES Maritza and its lenders reached an agreement to waive the potential covenant defaults through late September 2023. The associated non-recourse debt is classified as noncurrent in the accompanying Condensed Consolidated Balance Sheets

The amounts in default related to AES Puerto Rico are covenant and payment defaults. In July 2023, AES Puerto Rico signed forbearance and standstill agreements with its noteholders because of the insufficiency of funds to meet the principal and interest obligations on its Series A Bond Loans due and payable on June 1, 2023, and going forward. AES Puerto Rico continues to work with PREPA and its noteholders on these liquidity challenges. These agreements will expire on October 15, 2023.

All other defaults listed are not payment defaults. All other subsidiary non-recourse defaults were triggered by failure to comply with covenants or other requirements contained in the non-recourse debt documents of the applicable subsidiary.

The AES Corporation’s recourse debt agreements include cross-default clauses that will trigger if a subsidiary or group of subsidiaries for which the non-recourse debt is in default provides 20% or more of the Parent Company’s total cash distributions from businesses for the four most recently completed fiscal quarters. As of June 30, 2023, the Company had no defaults which resulted in, or were at risk of triggering, a cross-default under the recourse debt of the Parent Company. In the event the Parent Company is not in compliance with the financial covenants of its revolving credit facility, restricted payments will be limited to regular quarterly shareholder dividends at the then-prevailing rate. Payment defaults and bankruptcy defaults would preclude the making of any restricted payments.

8. COMMITMENTS AND CONTINGENCIES

Guarantees, Letters of Credit and Commitments — In connection with certain project financings, acquisitions and dispositions, power purchases and other 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. In the normal course of business, the Parent Company has entered into various agreements, mainly guarantees and letters of credit, to provide financial or performance assurance to third parties on behalf of AES businesses. These agreements are entered into primarily to support or enhance the creditworthiness otherwise achieved by a business on a stand-alone basis, thereby facilitating the availability of sufficient credit to accomplish their intended business purposes. Most of the contingent obligations relate to future performance commitments which the Company or its businesses expect to fulfill within the normal course of business. The expiration dates of these guarantees vary from less than one year to no more than 17 years.

The following table summarizes the Parent Company’s contingent contractual obligations as of June 30, 2023. Amounts presented in the following table represent the Parent Company’s current undiscounted exposure to guarantees and the range of maximum undiscounted potential exposure and excludes guarantees presented on the Condensed Consolidated Balance Sheets within Recourse debt. The maximum exposure is not reduced by the amounts, if any, that could be recovered under the recourse or collateralization provisions in the guarantees.

Contingent Contractual Obligations	Amount (in millions)		Number of Agreements	Maximum Exposure Range for Each Agreement (in millions)
Guarantees and commitments	$	2,610	69	<$1 — 505
Letters of credit under bilateral agreements	123		2	$59 — 64
Letters of credit under the revolving credit facility	100		11	<$1 — 60
Letters of credit under the unsecured credit facilities	95		33	<$1 — 36
Surety bonds	2		2	<$1 — 1
Total	$	2,930	117

During the six months ended June 30, 2023, the Company paid letter of credit fees ranging from 1% to 3% per annum on the outstanding amounts of letters of credit.

21 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

Contingencies

Environmental — The Company periodically reviews its obligations as they relate to compliance with environmental laws, including site restoration and remediation. For the periods ended June 30, 2023 and December 31, 2022, the Company recognized liabilities of $10 million for projected environmental remediation costs. Due to the uncertainties associated with environmental assessment and remediation activities, future costs of compliance or remediation could be higher or lower than the amount currently accrued. Moreover, where no liability has been recognized, it is reasonably possible that the Company may be required to incur remediation costs or make expenditures in amounts that could be material but could not be estimated as of June 30, 2023. In aggregate, the Company estimates the range of potential losses related to environmental matters, where estimable, to be up to $13 million. The amounts considered reasonably possible do not include amounts accrued as discussed above.

Litigation — The Company is involved in certain claims, suits and legal proceedings in the normal course of business. The Company accrues for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company has recognized aggregate liabilities for all claims of approximately $26 million and $22 million as of June 30, 2023 and December 31, 2022, respectively. These amounts are reported on the Condensed Consolidated Balance Sheets within Accrued and other liabilities and Other noncurrent liabilities. A significant portion of these accrued liabilities relate to regulatory matters and commercial disputes in international jurisdictions. There can be no assurance that these accrued liabilities will be adequate to cover all existing and future claims or that we will have the liquidity to pay such claims as they arise.

Where no accrued liability has been recognized, it is reasonably possible that some matters could be decided unfavorably to the Company and could require the Company to pay damages or make expenditures in amounts that could be material but could not be estimated as of June 30, 2023. The material contingencies where a loss is reasonably possible primarily include disputes with offtakers, suppliers and EPC contractors; alleged breaches of contract; alleged violation of laws and regulations; income tax and non-income tax matters with tax authorities; and regulatory matters. In aggregate, the Company estimates the range of potential losses, where estimable, related to these reasonably possible material contingencies to be between $53 million and $89 million. The amounts considered reasonably possible do not include the amounts accrued, as discussed above. These material contingencies do not include income tax-related contingencies which are considered part of our uncertain tax positions.

9. LEASES

LESSOR — The Company has operating leases for certain generation contracts that contain provisions to provide capacity to a customer, which is a stand-ready obligation to deliver energy when required by the customer. Capacity receipts are generally considered lease elements as they cover the majority of available output from a facility. The allocation of contract payments between the lease and non-lease elements is made at the inception of the lease. Lease receipts from such contracts are recognized as lease revenue on a straight-line basis over the lease term, whereas variable lease receipts are recognized when earned.

The following table presents lease revenue from operating leases in which the Company is the lessor, recognized in Revenue on the Condensed Consolidated Statements of Operations for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
Operating Lease Revenue	2023		2022		2023		2022
Total lease revenue	$	136	$	140	$	257	$	274
Less: Variable lease revenue	(24)		(16)		(32)		(23)
Total Non-variable lease revenue	$	112	$	124	$	225	$	251

22 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

The following table presents the underlying gross assets and accumulated depreciation of operating leases included in Property, plant and equipment on the Condensed Consolidated Balance Sheets as of the periods indicated (in millions):

Property, Plant and Equipment, Net	June 30, 2023		December 31, 2022
Gross assets	$	1,355	$	1,319
Less: Accumulated depreciation	(176)		(139)
Net assets	$	1,179	$	1,180

The option to extend or terminate a lease is based on customary early termination provisions in the contract, such as payment defaults, bankruptcy, and lack of performance on energy delivery. The Company has not recognized any early terminations as of June 30, 2023. Certain leases may provide for variable lease payments based on usage or index-based (e.g., the U.S. Consumer Price Index) adjustments to lease payments.

The following table shows the future lease receipts as of June 30, 2023 for the remainder of 2023 through 2027 and thereafter (in millions):

	Future Cash Receipts for
	Sales-Type Leases		Operating Leases
2023	$	13	$	195
2024	25		391
2025	25		392
2026	25		280
2027	25		203
Thereafter	361		544
Total	$	474	$	2,005
Less: Imputed interest	(248)
Present value of total lease receipts	$	226

Battery Storage Lease Arrangements — The Company constructs and operates projects consisting only of a stand-alone battery energy storage system (“BESS”) facility, as well as projects that pair a BESS with solar energy systems. These projects allow more flexibility on when to provide energy to the grid. The Company will enter into PPAs for the full output of the facility that allow customers the ability to determine when to charge and discharge the BESS. These arrangements include both lease and non-lease elements under ASC 842, with the BESS component typically constituting a sales-type lease. The Company recognized lease income on sales-type leases through interest income of $3 million and $7 million for the three and six months ended June 30, 2023, respectively; and $13 million and $16 million for the three and six months ended June 30, 2022, respectively.

10. REDEEMABLE STOCK OF SUBSIDIARIES

The following table summarizes the Company’s redeemable stock of subsidiaries balances as of the periods indicated (in millions):

	June 30, 2023		December 31, 2022
IPALCO common stock	$	765	$	782
AES Clean Energy Development common stock	439		436
AES Clean Energy Development tax equity partnerships	66		86
Potengi common and preferred stock	19		17
Total redeemable stock of subsidiaries	$	1,289	$	1,321

Potengi — In March 2022, Tucano Holding I (“Tucano”), a subsidiary of AES Brasil, issued new shares in the Potengi wind development project. BRF S.A. (“BRF”) acquired shares representing 24% of the equity in the project for $12 million, reducing the Company’s indirect ownership interest in Potengi to 35.5%. As the Company maintained control after the transaction, Potengi continues to be consolidated by the Company. As part of the transaction, BRF was given an option to sell its entire ownership interest at the conclusion of the PPA term. As a result, the minority ownership interest is considered temporary equity, which will be adjusted for earnings or losses allocated to the noncontrolling interest under ASC 810. Any subsequent changes in the redemption value of the exit rights will be recognized in accordance with ASC 480-10-S99, as it is probable that the shares will become redeemable. Potengi is reported in the Renewables SBU reportable segment.

23 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

11. EQUITY

Equity Units

In March 2021, the Company issued 10,430,500 Equity Units with a total notional value of $1,043 million. Each Equity Unit has a stated amount of $100 and was initially issued as a Corporate Unit, consisting of a forward stock purchase contract (“2024 Purchase Contracts”) and a 10% undivided beneficial ownership interest in one share of 0% Series A Cumulative Perpetual Convertible Preferred Stock, issued without par and with a liquidation preference of $1,000 per share (“Series A Preferred Stock”).

The Company concluded that the Equity Units should be accounted for as one unit of account based on the economic linkage between the 2024 Purchase Contracts and the Series A Preferred Stock, as well as the Company's assessment of the applicable accounting guidance relating to combining freestanding instruments. The Equity Units represent mandatorily convertible preferred stock. Accordingly, the shares associated with the combined instrument are reflected in diluted earnings per share using the if-converted method.

In conjunction with the issuance of the Equity Units, the Company received approximately $1 billion in proceeds, net of underwriting costs and commissions, before offering expenses. The proceeds for the issuance of 1,043,050 shares are attributed to the Series A Preferred Stock for $838 million and $205 million for the present value of the quarterly payments due to holders of the 2024 Purchase Contracts ("Contract Adjustment Payments"). The proceeds will be used for the development of the AES renewable businesses, U.S. utility businesses, LNG infrastructure, and for other developments determined by management.

The Series A Preferred Stock will initially not bear any dividends and the liquidation preference of the convertible preferred stock will not accrete. The Series A Preferred Stock has no maturity date and will remain outstanding unless converted by holders or redeemed by the Company. Holders of the shares of the convertible preferred stock will have limited voting rights.

The Series A Preferred Stock is pledged as collateral to support holders’ purchase obligations under the 2024 Purchase Contracts and can be remarketed. In connection with any successful remarketing, the Company may increase the dividend rate, increase the conversion rate, and modify the earliest redemption date for the convertible preferred stock. After any successful remarketing in connection with which the dividend rate on the convertible preferred stock is increased, the Company will pay cumulative dividends on the convertible preferred stock, if declared by the board of directors, quarterly in arrears from the applicable remarketing settlement date.

Holders of Corporate Units may create Treasury Units or Cash Settled Units from their Corporate Units as provided in the Purchase Contract Agreement by substituting Treasury securities or cash, respectively, for the Convertible Preferred Stock comprising a part of the Corporate Units.

The Company may not redeem the Series A Preferred Stock prior to March 22, 2024. At the election of the Company, on or after March 22, 2024, the Company may redeem for cash, all or any portion of the outstanding shares of the Series A Preferred Stock at a redemption price equal to 100% of the liquidation preference, plus any accumulated and unpaid dividends.

The 2024 Purchase Contracts obligate the holders to purchase, on February 15, 2024, for a price of $100 in cash, a maximum number of 57,364,621 shares of the Company’s common stock (subject to customary anti-dilution adjustments). The 2024 Purchase Contract holders may elect to settle their obligation early, in cash. The Series A Preferred Stock is pledged as collateral to guarantee the holders’ obligations to purchase common stock under the terms of the 2024 Purchase Contracts. The initial settlement rate determining the number of shares that each holder must purchase will not exceed the maximum settlement rate and is determined over a market value averaging period preceding February 15, 2024.

The initial maximum settlement rate of 3.864 was calculated using an initial reference price of $25.88, equal to the last reported sale price of the Company’s common stock on March 4, 2021. As of June 30, 2023, due to the customary anti-dilution provisions, the maximum settlement rate was 3.8739, equivalent to a reference price of $25.81. If the applicable market value of the Company’s common stock is less than or equal to the reference price, the settlement rate will be the maximum settlement rate; and if the applicable market value of common stock is greater than the reference price, the settlement rate will be a number of shares of the Company’s common stock equal to $100 divided by the applicable market value. Upon successful remarketing of the Series A Preferred Stock (“Remarketed Series A Preferred Stock”), the Company expects to receive additional cash proceeds of $1 billion and issue shares of Remarketed Series A Preferred Stock.

24 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

The Company pays Contract Adjustment Payments to the holders of the 2024 Purchase Contracts at a rate of 6.875% per annum, payable quarterly in arrears on February 15, May 15, August 15, and November 15, commencing on May 15, 2021. The $205 million present value of the Contract Adjustment Payments at inception reduced the Series A Preferred Stock. As each quarterly Contract Adjustment Payment is made, the related liability is reduced and the difference between the cash payment and the present value will accrete to interest expense, approximately $5 million over the three-year term. As of June 30, 2023, the present value of the Contract Adjustment Payments was $54 million.

The holders can settle the purchase contracts early, for cash, subject to certain exceptions and conditions in the prospectus supplement. Upon early settlement of any purchase contracts, the Company will deliver the number of shares of its common stock equal to 85% of the number of shares of common stock that would have otherwise been deliverable.

Equity Transactions with Noncontrolling Interests

AES Clean Energy Tax Equity Partnerships — The majority of solar projects under AES Clean Energy have been financed with tax equity structures, in which tax equity investors receive a portion of the economic attributes of the facilities, including tax attributes, that vary over the life of the projects.

During the second quarter of 2023 and 2022, AES Clean Energy Development, through multiple transactions, sold noncontrolling interests in project companies to tax equity partners, resulting in increases to NCI of $208 million and $98 million, respectively. AES Clean Energy Development is reported in the Renewables SBU reportable segment.

Chile Renovables — Under its renewable partnership agreement with Global Infrastructure Management, LLC (“GIP”), AES Andes will contribute a specified pipeline of renewable development projects to Chile Renovables as the projects reach commercial operations, and GIP may make additional contributions to maintain its 49% ownership interest. In January 2022, AES Andes completed the sale of Andes Solar 2a to Chile Renovables for $37 million, resulting in an increase to NCI of $28 million and an increase to additional paid-in capital of $9 million. In June 2022, the sale of Los Olmos was completed for $80 million, resulting in an increase to NCI of $68 million and an increase to additional paid-in capital of $12 million. As the Company maintained control after these transactions, Chile Renovables continues to be consolidated by the Company within the Energy Infrastructure SBU reportable segment.

Guaimbê Holding — In January 2022, the Ventus wind complex and AGV solar complex were incorporated by Guaimbê Holding. Guaimbê Holding issued preferred shares representing 3.5% ownership in the subsidiary for total proceeds of $63 million. The transaction decreased the Company’s indirect ownership interest to 35.8%. As the Company maintained control after these transactions, Guaimbê Holding continues to be consolidated by the Company within the Renewables SBU reportable segment.

AES Andes — In January 2022, Inversiones Cachagua SpA (“Cachagua”) completed a tender offer for the shares of AES Andes held by minority shareholders for $522 million, net of transaction costs. Upon completion, AES' indirect beneficial interest in AES Andes increased from 67.1% to 98.1%. Through multiple transactions following the tender offer during the first quarter of 2022, Cachagua acquired an additional 0.8% ownership in AES Andes for $13 million, further increasing AES’ indirect beneficial interest to 98.9%. The tender offer and these follow-on the transactions resulted in a $169 million decrease to Parent Company Stockholder’s Equity due to a decrease in additional paid-in capital of $93 million and the reclassification of accumulated other comprehensive losses from NCI to AOCL of $76 million. AES Andes is reported in the Energy Infrastructure SBU reportable segment.

Accumulated Other Comprehensive Loss — The following table summarizes the changes in AOCL by component, net of tax and NCI, for the six months ended June 30, 2023 (in millions):

	Foreign currency translation adjustment, net		Unrealized derivative gains (losses), net		Unfunded pension obligations, net		Total
Balance at the beginning of the period	$	(1,828)	$	211	$	(23)	$	(1,640)
Other comprehensive income before reclassifications	107		9		—		116
Amount reclassified to earnings	—		(43)		—		(43)
Other comprehensive income (loss)	107		(34)		—		73
Balance at the end of the period	$	(1,721)	$	177	$	(23)	$	(1,567)

Reclassifications out of AOCL are presented in the following table. Amounts for the periods indicated are in millions and those in parentheses indicate debits to the Condensed Consolidated Statements of Operations:

25 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

AOCL Components	Affected Line Item in the Condensed Consolidated Statements of Operations	Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Derivative gains (losses), net
	Non-regulated revenue	$	(8)	$	—	$	(8)	$	(1)
	Non-regulated cost of sales	—		(1)		(1)		(2)
	Interest expense	13		(10)		16		(33)
	Loss on disposal and sale of business interests	—		(16)		33		(16)
	Foreign currency transaction losses	(3)		—		(3)		—
	Income (loss) from continuing operations before taxes and equity in earnings of affiliates	2		(27)		37		(52)
	Income tax benefit (expense)	(2)		3		(11)		13
	Net equity in earnings (losses) of affiliates	7		4		22		1
	Net income (loss)	7		(20)		48		(38)
	Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	(4)		(3)		(5)		8
	Net income (loss) attributable to The AES Corporation	$	3	$	(23)	$	43	$	(30)
Amortization of defined benefit pension actuarial gain (loss), net
	Regulated cost of sales	$	—	$	(1)	$	—	$	(1)
	Other expense	—		1		—		—
	Net income (loss) attributable to The AES Corporation	$	—	$	—	$	—	$	(1)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	3	$	(23)	$	43	$	(31)

Common Stock Dividends — The Parent Company paid dividends of $0.1659 per outstanding share to its common stockholders during the first and second quarters of 2023 for dividends declared in December 2022 and February 2023.

On July 14, 2023, the Board of Directors declared a quarterly common stock dividend of $0.1659 per share payable on August 15, 2023, to shareholders of record at the close of business on August 1, 2023.

12. SEGMENTS

The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the businesses internally. In our 2022 Form 10-K, the management reporting structure and the Company’s reportable segments were mainly organized by geographic regions. In March 2023, we announced internal management changes as a part of our ongoing strategy to align our business to meet our customers’ needs and deliver on our major strategic objectives. The management reporting structure is now composed of four SBUs, mainly organized by technology, led by our President and Chief Executive Officer. Using the accounting guidance on segment reporting, the Company determined that its four operating segments are aligned with its four reportable segments corresponding to its SBUs. All prior period results have been retrospectively revised to reflect the new segment reporting structure.

•Renewables — Solar, wind, energy storage, hydro, biomass, and landfill gas generation facilities;

•Utilities — AES Indiana, AES Ohio, and AES El Salvador regulated utilities and their generation facilities;

•Energy Infrastructure — Natural gas, LNG, coal, pet coke, diesel and oil generation facilities, and our businesses in Chile, which have a mix of generation sources, including renewables, that are pooled to service our existing PPAs; and

•New Energy Technologies — Green hydrogen initiatives and investments in Fluence, Uplight, 5B, and other new and innovative energy technology businesses.

Our Renewables, Utilities and Energy Infrastructure SBUs participate in our generation business line, in which we own and/or operate power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. Our Utilities SBU participates in our utilities business line, in which we own and/or operate utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors within a defined service area. In certain circumstances, our utilities also generate and sell electricity on the wholesale market. Our New Energy Technologies SBU includes investments in new and innovative technologies to support leading-edge greener energy solutions.

Included in “Corporate and Other” are the results of the AES self-insurance company, corporate overhead costs which are not directly associated with the operations of our four reportable segments, and certain intercompany charges such as self-insurance premiums which are fully eliminated in consolidation.

During the first quarter of 2023, management began assessing operational performance and making resource

26 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

allocation decisions using Adjusted EBITDA. Therefore, the Company uses Adjusted EBITDA as its primary segment performance measure. Adjusted EBITDA, a non-GAAP measure, is defined by the Company as earnings before interest income and expense, taxes, depreciation and amortization, adjusted for the impact of NCI and interest, taxes, depreciation and amortization of our equity affiliates, and adding back interest income recognized under service concession arrangements; excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence.

The Company has concluded Adjusted EBITDA better reflects the underlying business performance of the Company and is the most relevant measure considered in the Company's internal evaluation of the financial performance of its segments. Additionally, given its large number of businesses and overall complexity, the Company concluded that Adjusted EBITDA is a more transparent measure that better assists investors in determining which businesses have the greatest impact on the Company's results.

Revenue and Adjusted EBITDA are presented before inter-segment eliminations, which includes the effect of intercompany transactions with other segments except for charges for certain management fees and the write-off of intercompany balances, as applicable. All intra-segment activity has been eliminated within the segment. Inter-segment activity has been eliminated within the total consolidated results.

The following tables present financial information by segment for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
Total Revenue	2023		2022		2023		2022
Renewables SBU	$	541	$	455	$	1,036	$	875
Utilities SBU	852		821		1,823		1,680
Energy Infrastructure SBU	1,654		1,820		3,378		3,427
New Energy Technologies SBU	1		2		75		2
Corporate and Other	40		34		67		57
Eliminations	(61)		(54)		(113)		(111)
Total Revenue	$	3,027	$	3,078	$	6,266	$	5,930

	Three Months Ended June 30,				Six Months Ended June 30,
Reconciliation of Adjusted EBITDA (in millions)	2023		2022		2023		2022
Net income	$	(19)	$	(136)	$	170	$	35
Income tax expense (benefit)	(2)		(19)		70		41
Interest expense	310		279		640		537
Interest income	(131)		(95)		(254)		(170)
Depreciation and amortization	277		264		550		534
EBITDA	$	435	$	293	$	1,176	$	977
Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1)	(155)		(156)		(325)		(312)
Less: Income taxes expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates	27		23		66		57
Interest income recognized under service concession arrangements	18		20		36		39
Unrealized derivative and equity securities losses (gains)	32		(34)		(7)		8
Unrealized foreign currency losses	32		38		64		20
Disposition/acquisition losses	16		23		13		32
Impairment losses	164		479		173		480
Loss on extinguishment of debt	—		—		1		6
Adjusted EBITDA	$	569	$	686	$	1,197	$	1,307

_____________________________

(1)The allocation of earnings to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA.

	Three Months Ended June 30,				Six Months Ended June 30,
Adjusted EBITDA	2023		2022		2023		2022
Renewables SBU	$	166	$	162	$	290	$	281
Utilities SBU	148		135		310		319
Energy Infrastructure SBU	282		379		645		733
New Energy Technologies SBU	(13)		(26)		(39)		(61)
Corporate and Other	13		(3)		12		1
Eliminations	(27)		39		(21)		34
Adjusted EBITDA	$	569	$	686	$	1,197	$	1,307

27 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

The Company uses long-lived assets as its measure of segment assets. Long-lived assets includes amounts recorded in Property, plant and equipment, net and right-of-use assets for operating leases recorded in Other noncurrent assets on the Condensed Consolidated Balance Sheets.

Long-Lived Assets	June 30, 2023		December 31, 2022
Renewables SBU	$	12,220	$	9,533
Utilities SBU	6,602		6,311
Energy Infrastructure SBU	7,613		7,532
New Energy Technologies SBU	1		2
Corporate and Other	16		17
Long-Lived Assets	26,452		23,395
Current assets	7,205		7,643
Investments in and advances to affiliates	858		952
Debt service reserves and other deposits	171		177
Goodwill	362		362
Other intangible assets	2,282		1,841
Deferred income taxes	383		319
Loan receivable	1,018		1,051
Other noncurrent assets, excluding right-of-use assets for operating leases	2,774		2,623
Total Assets	$	41,505	$	38,363

28 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

13. REVENUE

The following table presents our revenue from contracts with customers and other revenue for the periods indicated (in millions):

	Three Months Ended June 30, 2023
	Renewables SBU		Utilities SBU		Energy Infrastructure SBU		New Energy Technologies SBU		Corporate, Other and Eliminations		Total
Non-Regulated Revenue
Revenue from contracts with customers	$	505	$	18	$	1,490	$	—	$	(21)	$	1,992
Other non-regulated revenue (1)	36		—		164		1		—		201
Total non-regulated revenue	541		18		1,654		1		(21)		2,193
Regulated Revenue
Revenue from contracts with customers	—		825		—		—		—		825
Other regulated revenue	—		9		—		—		—		9
Total regulated revenue	—		834		—		—		—		834
Total revenue	$	541	$	852	$	1,654	$	1	$	(21)	$	3,027
	Three Months Ended June 30, 2022
	Renewables SBU		Utilities SBU		Energy Infrastructure SBU		New Energy Technologies SBU		Corporate, Other and Eliminations		Total
Non-Regulated Revenue
Revenue from contracts with customers	$	406	$	18	$	1,676	$	1	$	(20)	$	2,081
Other non-regulated revenue (1)	49		1		144		1		—		195
Total non-regulated revenue	455		19		1,820		2		(20)		2,276
Regulated Revenue
Revenue from contracts with customers	—		794		—		—		—		794
Other regulated revenue	—		8		—		—		—		8
Total regulated revenue	—		802		—		—		—		802
Total revenue	$	455	$	821	$	1,820	$	2	$	(20)	$	3,078

	Six Months Ended June 30, 2023
	Renewables SBU		Utilities SBU		Energy Infrastructure SBU		New Energy Technologies SBU		Corporate, Other and Eliminations		Total
Non-Regulated Revenue
Revenue from contracts with customers	$	982	$	35	$	3,062	$	74	$	(46)	$	4,107
Other non-regulated revenue (1)	54		2		316		1		—		373
Total non-regulated revenue	1,036		37		3,378		75		(46)		4,480
Regulated Revenue
Revenue from contracts with customers	—		1,769		—		—		—		1,769
Other regulated revenue	—		17		—		—		—		17
Total regulated revenue	—		1,786		—		—		—		1,786
Total revenue	$	1,036	$	1,823	$	3,378	$	75	$	(46)	$	6,266
	Six Months Ended June 30, 2022
	Renewables SBU		Utilities SBU		Energy Infrastructure SBU		New Energy Technologies SBU		Corporate, Other and Eliminations		Total
Non-Regulated Revenue
Revenue from contracts with customers	$	831	$	41	$	3,177	$	1	$	(54)	$	3,996
Other non-regulated revenue (1)	44		2		250		1		—		297
Total non-regulated revenue	875		43		3,427		2		(54)		4,293
Regulated Revenue
Revenue from contracts with customers	—		1,622		—		—		—		1,622
Other regulated revenue	—		15		—		—		—		15
Total regulated revenue	—		1,637		—		—		—		1,637
Total revenue	$	875	$	1,680	$	3,427	$	2	$	(54)	$	5,930

_______________________________

(1)         Other non-regulated revenue primarily includes lease and derivative revenue not accounted for under ASC 606.

Contract Balances — The timing of revenue recognition, billings, and cash collections results in accounts receivable and contract liabilities. The contract liabilities from contracts with customers were $388 million and $337 million as of June 30, 2023 and December 31, 2022, respectively.

29 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

During the six months ended June 30, 2023 and 2022, we recognized revenue of $13 million and $32 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods.

A significant financing arrangement exists for our Mong Duong plant in Vietnam. The plant was constructed under a build, operate, and transfer contract and will be transferred to the Vietnamese government after the completion of a 25 year PPA. The performance obligation to construct the facility was substantially completed in 2015. Contract consideration related to the construction, but not yet collected through the 25 year PPA, was reflected on the Condensed Consolidated Balance Sheet. As of June 30, 2023 and December 31, 2022, the Mong Duong loan receivable had a balance of $1.1 billion, net of CECL reserves of $27 million and $28 million, respectively. Of the loan receivable balance, $102 million and $97 million, respectively, was classified as Other current assets, and $1 billion was classified as Loan receivable on the Condensed Consolidated Balance Sheets.

Remaining Performance Obligations — The transaction price allocated to remaining performance obligations represents future consideration for unsatisfied (or partially unsatisfied) performance obligations at the end of the reporting period. As of June 30, 2023, the aggregate amount of transaction price allocated to remaining performance obligations was $9 million, primarily consisting of fixed consideration for the sale of renewable energy credits in long-term contracts in the U.S. We expect to recognize revenue of approximately $1 million per year between 2023 and 2027 and the remainder thereafter.

14. OTHER INCOME AND EXPENSE

Other income generally includes gains on insurance recoveries in excess of property damage, gains on asset sales and liability extinguishments, favorable judgments on contingencies, allowance for funds used during construction, and other income from miscellaneous transactions. Other expense generally includes losses on asset sales and dispositions, losses on legal contingencies, and losses from other miscellaneous transactions. The components are summarized as follows (in millions):

		Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Other Income	AFUDC (US Utilities)	$	3	$	2	$	6	$	5
	Legal settlements	—		6		3		6
	Gain on sale of assets	—		—		2		—
	Gain on remeasurement of investment (1)	—		26		—		26
	Insurance proceeds (2)	—		16		—		16
	Gain on acquired customer contracts	—		5		—		5
	Gain on remeasurement of contingent consideration	—		3		—		3
	Other	11		12		13		15
	Total other income	$	14	$	70	$	24	$	76
Other Expense	Loss on sale and disposal of assets	$	7	$	5	$	9	$	9
	Loss on remeasurement of contingent consideration	1		—		8		—
	Non-service pension and other postretirement costs	3		—		7		—
	Allowance for lease receivable (3)	—		20		—		20
	Other	1		4		2		12
	Total other expense	$	12	$	29	$	26	$	41

_______________________________

(1)    Related to the remeasurement of our existing investment in 5B, accounted for using the measurement alternative.

(2)    Primarily related to insurance recoveries associated with property damage at TermoAndes.

(3)    Related to a full allowance recognized on a sales-type lease receivable at AES Gilbert due to a fire incident in April 2022.

15. ASSET IMPAIRMENT EXPENSE

The following table presents our asset impairment expense for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Norgener	$	137	$	—	$	137	$	—
Jordan	15		—		29		—
GAF Projects (AES Renewable Holdings)	18		—		18		—
Maritza	—		475		—		475
Other	4		7		10		8
Total	$	174	$	482	$	194	$	483

30 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

Norgener — In May 2023, AES Andes announced its intention to accelerate the retirement of the Norgener coal-fired plant in Chile in order to further advance its decarbonization strategy. Due to this strategic development and the resulting decrease in useful life of the generation facility, the Company performed an impairment analysis as of May 1, 2023, and determined that the carrying amount of the asset group was not recoverable. The Norgener asset group was determined to have a fair value of $24 million, using the income approach. As a result, and since pre-tax losses are limited to the carrying amount of the long-lived assets, the Company recognized pre-tax asset impairment expense of $137 million. Norgener is reported in the Energy Infrastructure SBU reportable segment.

Jordan — In November 2020, the Company signed an agreement to sell 26% ownership interest in Amman East and IPP4 for $58 million and as of June 30, 2023, the generation plants were classified as held-for-sale. Due to the delay in closing the transaction, the carrying amount of the asset group in subsequent periods exceeded the agreed-upon sales price and total pre-tax impairment expense of $29 million was recorded during the six months ended June 30, 2023. See Note 16—Held-for-Sale for further information. Amman East and IPP4 are reported in the Energy Infrastructure SBU reportable segment.

GAF Projects — During the second quarter of 2023, management concluded that the carrying value of six project companies at AES Renewable Holdings (the “GAF Projects”) may not be recoverable as the expected purchase price on the buyout of tax equity partners implied a loss on the transaction. The buyout was completed in July 2023. Management performed a recoverability test as of May 31, 2023 and concluded that the undiscounted cash flows of the GAF Projects did not exceed the carrying values of the asset groups for five of the six projects. The asset groups for the GAF Projects were determined to have a fair value of $11 million, using the income approach. As a result, the Company recognized pre-tax asset impairment expense of $18 million. AES Renewable Holdings is reported in the Renewables SBU reportable segment.

Maritza — In May 2022, the Council for the European Union approved Bulgaria’s National Recovery and Resilience plan, which commits the country to cease generating electricity from coal beyond 2038. As this plan is expected to prohibit the Company from operating the Maritza coal-fired plant through its estimated useful life, it was determined that an indicator of impairment had occurred. The Company reassessed the useful life of the facility and performed an impairment analysis as of April 30, 2022, in which it was determined that the carrying amount of the asset group was not recoverable. The Maritza asset group was determined to have a fair value of $452 million, using the income approach. As a result, the Company recognized pre-tax asset impairment expense of $475 million. Maritza is reported in the Energy Infrastructure SBU reportable segment.

16. HELD-FOR-SALE

Jordan — In November 2020, the Company signed an agreement to sell 26% ownership interest in Amman East and IPP4 for $58 million. The sale is expected to close in 2023. After completion of the sale, the Company will retain a 10% ownership interest in Amman East and IPP4, which will be accounted for as an equity method investment. As of June 30, 2023, the generation plants were classified as held-for-sale, but did not meet the criteria to be reported as discontinued operations. On a consolidated basis, the carrying value of the plants held-for-sale as of June 30, 2023 was $164 million. Amman East and IPP4 are reported in the Energy Infrastructure SBU reportable segment.

Excluding any impairment charges, pre-tax income attributable to AES of businesses held-for-sale as of June 30, 2023 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2023		2022		2023		2022
Jordan	$	6	$	6	$	11	$	11

31 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

17. ACQUISITIONS

Bellefield — On June 5, 2023, the Company entered into an agreement for the purchase of 100% of the membership interests in the Bellefield projects, consisting of two late development-stage solar and BESS projects of 1 GW each. The transaction was accounted for as an asset acquisition of variable interest entities that did not meet the definition of a business. The Company agreed to make total cash payments including reimbursement of development and equipment costs of approximately $449 million, a portion of which is contingent upon future milestones and price adjustments. In the case that future milestones are not met, the total cash payment will be adjusted accordingly, along with any other purchase price adjustments.

The assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration to be paid of approximately $402 million, including cash paid of $164 million, contingent consideration of $210 million, and deferred payments of $28 million.

The estimated fair value of the contingent consideration of Bellefield was determined using probability-weighted discounted cash flows based on internal forecasts, which are considered Level 3 inputs. The weighted average probability of achieving the milestone payments used to calculate the acquisition date fair value of the contingent consideration was 90.4%. Payments under the contingent consideration arrangements are largely binary and thus, a single probability of achieving the milestone was applied in the calculation of fair value. The contingent consideration will be updated quarterly with any prospective changes in fair value recorded through earnings. Bellefield is reported in the Renewables SBU reportable segment.

Bolero Solar Park — On June 9, 2023, the Company, through its subsidiary AES Andes S.A., acquired 100% of the equity interests in Helio Atacama Tres SpA, owner of the Bolero photovoltaic power plant for consideration of $114 million. The transaction was accounted for as an asset acquisition that did not meet the definition of a business. As Helio Atacama Tres is not a VIE, any difference between the fair value of the assets and consideration transferred will be allocated to PP&E on a relative fair value basis. Helio Atacama Tres is reported in the Energy Infrastructure SBU reportable segment.

Agua Clara — On June 17, 2022, the Company, through its subsidiaries AES Dominicana Renewable Energy and AES Andres DR, S.A., acquired 100% of the equity interests in Agua Clara, S.A.S., a wind project for consideration of $98 million. The transaction was accounted for as an asset acquisition that did not meet the definition of a business. As Agua Clara is not a VIE, any difference between the fair value of the assets and consideration transferred will be allocated to PP&E on a relative fair value basis. Agua Clara is reported in the Renewables SBU reportable segment.

Tunica Windpower, LLC — On June 17, 2022, the Company entered into an agreement for the purchase of 100% of the membership interests in Tunica Windpower, LLC. The transaction was accounted for as an asset acquisition of variable interest entities that did not meet the definition of a business. The assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration paid of approximately $22 million, including contingent consideration of $7 million. The contingent consideration will be updated quarterly with any prospective changes in fair value recorded through earnings. Tunica Windpower is reported in the Renewables SBU reportable segment.

Windsor PV1, LLC — On May 27, 2022, the Company entered into an agreement for the purchase of 100% of the membership interests in Windsor PV1, LLC, an early development-stage solar project. The transaction was accounted for as an asset acquisition of variable interest entities that did not meet the definition of a business. The assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration paid of approximately $17 million, including contingent consideration of $5 million. The contingent consideration will be updated quarterly with any prospective changes in fair value recorded through earnings. Windsor is reported in the Renewables SBU reportable segment.

Community Energy — In the first quarter of 2022, the Company finalized the purchase price allocation related to the acquisition of Community Energy, LLC. There were no significant adjustments made to the preliminary purchase price allocation recorded in the fourth quarter of 2021 when the acquisition was completed. Community Energy is reported in the Renewables SBU reportable segment.

New York Wind — In the first quarter of 2022, the Company finalized the purchase price allocation related to the acquisition of Cogentrix Valcour Intermediate Holdings, LLC. There were no significant adjustments made to the preliminary purchase price allocation recorded in the fourth quarter of 2021 when the acquisition was completed. New York Wind is reported in the Renewables SBU reportable segment.

32 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

18. EARNINGS PER SHARE

Basic and diluted earnings per share are based on the weighted average number of shares of common stock and potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted earnings per share, includes the effects of dilutive RSUs, stock options, and equity units. The effect of such potential common stock is computed using the treasury stock method for RSUs and stock options, and is computed using the if-converted method for equity units.

The following table is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for income from continuing operations for the three and six months ended June 30, 2023 and 2022, where income represents the numerator and weighted average shares represent the denominator.

Three Months Ended June 30,	2023					2022
(in millions, except per share data)	Loss		Shares	$ per Share		Loss		Shares	$ per Share
BASIC EARNINGS (LOSS) PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	(39)	669	$	(0.06)	$	(179)	668	$	(0.27)
EFFECT OF DILUTIVE SECURITIES
Stock options	—		—	—		—		—	—
Restricted stock units	—		—	—		—		—	—
Equity units	—		—	—		—		—	—
DILUTED EARNINGS (LOSS) PER SHARE	$	(39)	669	$	(0.06)	$	(179)	668	$	(0.27)

Six Months Ended June 30,	2023					2022
(in millions, except per share data)	Income		Shares	$ per Share		Loss		Shares	$ per Share
BASIC EARNINGS (LOSS) PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	112	669	$	0.17	$	(64)	668	$	(0.10)
EFFECT OF DILUTIVE SECURITIES
Stock options	—		1	—		—		—	—
Restricted stock units	—		2	—		—		—	—
Equity units	—		40	(0.01)		—		—	—
DILUTED EARNINGS (LOSS) PER SHARE	$	112	712	$	0.16	$	(64)	668	$	(0.10)

For the three months ended June 30, 2023, the calculation of diluted earnings per share excluded 3 million outstanding stock awards and 40 million shares underlying our March 2021 Equity Units because their impact would be anti-dilutive given the loss from continuing operations. These shares could potentially dilute basic earnings per share in the future. Had the Company generated income, 2 million and 40 million potential shares of common stock related to the stock awards and the Equity Units, respectively, would have been included in diluted weighted-average shares outstanding.

The calculation of diluted earnings per share excluded 1 million outstanding stock awards for the six months ended June 30, 2023, which would be anti-dilutive. These stock awards could potentially dilute basic earnings per share in the future.

For the three and six months ended June 30, 2022, the calculation of diluted earnings per share excluded 4 million outstanding stock awards and 40 million shares underlying our March 2021 Equity Units because their impact would be anti-dilutive given the loss from continuing operations. These shares could potentially dilute basic earnings per share in the future. Had the Company generated income, 2 million and 40 million potential shares of common stock related to the stock awards and the Equity Units, respectively, would have been included in diluted weighted-average shares outstanding.

33 | Notes to Condensed Consolidated Financial Statements—(Continued) | June 30, 2023 and 2022

As described in Note 11—Equity, the Company issued 10,430,500 Equity Units in March 2021 with a total notional value of $1,043 million. Each Equity Unit has a stated amount of $100 and was initially issued as a Corporate Unit, consisting of a 2024 Purchase Contract and a 10% undivided beneficial ownership interest in one share of Series A Preferred Stock. Prior to February 15, 2024, the Series A Preferred Stock may be converted at the option of the holder only in connection with a fundamental change. On and after February 15, 2024, the Series A Preferred Stock may be converted freely at the option of the holder. Upon conversion, the Company will deliver to the holder with respect to each share of Series A Preferred Stock being converted (i) a share of our Series B Preferred Stock, or, solely with respect to conversions in connection with a redemption, cash and (ii) shares of our common stock, if any, in respect of any conversion value in excess of the liquidation preference of the preferred stock being converted. The conversion rate was initially 31.5428 shares of common stock per one share of Series A Preferred Stock, which was equivalent to an initial conversion price of approximately $31.70 per share of common stock. As of June 30, 2023, due to customary anti-dilution provisions, the conversion rate was 31.6239, equivalent to a conversion price of approximately $31.62 per share of common stock. The Series A Preferred Stock and the 2024 Purchase Contracts are being accounted for as one unit of account. In calculating diluted EPS, the Company has applied the if-converted method to determine the impact of the forward purchase feature and considered if there are incremental shares that should be included related to the Series A Preferred conversion value.

19. RISKS AND UNCERTAINTIES

Puerto Rico — Earlier this year, AES Puerto Rico took certain measures to address identified liquidity challenges. On July 6, 2023, PREPA agreed to the release of funds in the escrow account guaranteeing AES Puerto Rico’s obligations under the Power Purchase and Operating Agreement (“PPOA”) in order to provide additional liquidity for the business. Additionally, AES Puerto Rico entered into a standstill and forbearance agreement with its noteholders because of the insufficiency of funds to meet the principal and interest obligations on its Series A Bond Loans due and payable on June 1, 2023, and going forward. AES Puerto Rico continues to work with PREPA and its noteholders on these liquidity challenges.

Despite these challenges and considering the information available as of the filing date, management believes the carrying amount of our long-lived assets at AES Puerto Rico of $63 million is recoverable as of June 30, 2023. However, it is reasonably possible that the estimate of undiscounted cash flows may change in the near term resulting in the need to write down our long-lived assets in Puerto Rico to fair value.

34 | The AES Corporation | June 30, 2023 Form 10-Q

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The condensed consolidated financial statements included in Item 1.—Financial Statements of this Form 10-Q and the discussions contained herein should be read in conjunction with our 2022 Form 10-K.

Forward-Looking Information

The following discussion may contain forward-looking statements regarding us, our business, prospects and our results of operations, that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. These statements include, but are not limited to, statements regarding management’s intents, beliefs, and current expectations and typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” “forecast,” “target,” “will,” “would,” “intend,” “believe,” “project,” “estimate,” “plan,” and similar words. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute current expectations based on reasonable assumptions. Factors that could cause or contribute to such differences include, but are not limited to, those described in Item 1A.—Risk Factors of this Form 10-Q, Item 1A.—Risk Factors and Item 7.—Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2022 Form 10-K and subsequent filings with the SEC.

Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the SEC that advise of the risks and factors that may affect our business.

Overview of Our Business

We are a diversified power generation and utility company organized into the following four SBUs, mainly organized by technology: Renewables (solar, wind, energy storage, hydro, biomass, and landfill gas), Utilities (AES Indiana, AES Ohio, and AES El Salvador), Energy Infrastructure (natural gas, LNG, coal, pet coke, diesel, and oil), and New Energy Technologies (green hydrogen, Fluence, Uplight, and 5B). Our businesses in Chile, which have a mix of generation sources, including renewables, are also included within the Energy Infrastructure SBU, as the generation from all sources is pooled to service our existing PPAs. In our 2022 Form 10-K, the management reporting structure and the Company’s reportable segments were mainly organized by geographic regions. In March 2023, we announced internal management changes as a part of our ongoing strategy to align our business to meet our customers’ needs and deliver on our major strategic objectives. The results of our operations are now reported along our four newly formed technology-based SBUs. For additional information regarding our business, see Item 1.—Business of our 2022 Form 10-K.

We have two lines of business: generation and utilities. Our Renewables, Utilities and Energy Infrastructure SBUs participate in our first business line, generation, in which we own and/or operate power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. Our Utilities SBU participates in our second business line, utilities, in which we own and/or operate utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors within a defined service area. In certain circumstances, our utilities also generate and sell electricity on the wholesale market. Our New Energy Technologies SBU includes investments in new and innovative technologies to support leading-edge greener energy solutions.

Executive Summary

Compared with last year, second quarter net loss decreased $117 million, from $136 million to $19 million. This decrease is the result of favorable contributions at the Utilities, Renewables, and New Energy Technologies SBUs, partially offset by lower contributions at the Energy Infrastructure SBU.

Adjusted EBITDA, a non-GAAP measure, decreased $117 million, from $686 million to $569 million, mainly driven by higher cost of sales and lower thermal dispatch substituted with renewable sources at the Energy Infrastructure SBU; partially offset by lower losses from affiliates at the New Energy Technologies SBU mainly attributable to improved margins on a new product line, favorable weather conditions impacting demand and increased rider revenues at the Utilities SBU, and new businesses operating in our portfolio and favorable wind and hydrological conditions at the Renewables SBU.

35 | The AES Corporation | June 30, 2023 Form 10-Q

Adjusted EBITDA with Tax Attributes, a non-GAAP measure, decreased $115 million, from $722 million to $607 million primarily due to the drivers above.

Compared with last year, second quarter diluted loss per share from continuing operations decreased $0.21, from $0.27 to $0.06. This decrease is mainly driven by lower long-lived asset impairments in the current year, partially offset by the recognition of unrealized losses due to the termination of a PPA and higher cost of sales at the Energy Infrastructure SBU.

Adjusted EPS, a non-GAAP measure, decreased $0.13 from $0.34 to $0.21, mainly driven by lower contributions from the Energy Infrastructure SBU.

Compared with last year, net income for the six months ended June 30, 2023 increased $135 million, from $35 million to $170 million. This increase is the result of favorable contributions at the New Energy Technologies and Renewables SBUs, partially offset by lower contributions at the Energy Infrastructure and Utilities SBUs.

Adjusted EBITDA, a non-GAAP measure, decreased $110 million, from $1,307 million to $1,197 million, mainly driven by higher cost of sales and lower thermal dispatch substituted with renewable sources at the Energy Infrastructure SBU, and unfavorable weather conditions impacting demand and higher fixed costs at the Utilities SBU; partially offset by lower losses from affiliates at the New Energy Technologies SBU mainly attributable to improved margins on a new product line, and favorable wind and hydrological conditions and new businesses operating in our portfolio at the Renewables SBU.

Adjusted EBITDA with Tax Attributes, a non-GAAP measure, decreased $108 million, from $1,356 million to $1,248 million, primarily due to the drivers above.

Compared with last year, diluted earnings per share from continuing operations for the six months ended June 30, 2023 increased $0.26, from a loss of $0.10 to earnings of $0.16. This increase is mainly driven by lower long-lived asset impairments in the current year and lower losses of affiliates at the New Energy Technologies SBU, partially offset by higher unrealized foreign currency losses, the recognition of unrealized losses due to the termination of a PPA and higher cost of sales at the Energy Infrastructure SBU, and higher costs due to an accelerated growth plan at the Renewables SBU.

Adjusted EPS, a non-GAAP measure, decreased $0.12 from $0.55 to $0.43, mainly driven by lower contributions from the Renewables SBU and lower margins due to unfavorable weather conditions at the Utilities SBU, partially offset by lower losses of affiliates at the New Energy Technologies SBU.

36 | The AES Corporation | June 30, 2023 Form 10-Q

(1) Non-GAAP measure. See Item 2.—Management’s Discussion and Analysis of Financial Condition and Results of Operations—SBU Performance Analysis—Non-GAAP Measures for reconciliation and definition.

(2) GWh sold in 2022.

37 | The AES Corporation | June 30, 2023 Form 10-Q

Overview of Strategic Performance

AES is leading the industry's transition to clean energy by investing in renewables, utilities, and technology businesses.

•As of today, the Company’s backlog, which consists of projects with signed contracts, but which are not yet operational, is 13,170 MW, including 5,389 MW under construction. This is compared to a 11,932 MW backlog as of the Company's first quarter 2023 earnings call on May 5, 2023.

•In year-to-date 2023, the Company completed 786 MW of wind, solar and energy storage and expects to complete a total of 3.4 GW by year-end 2023.

•AES Indiana filed its first rate case since 2018, and expects to receive regulatory approval by the middle of 2024. During the second quarter of 2023, AES Indiana filed for approval to build a 200 MW, or 800 MWh, energy storage facility at the site of the retiring Petersburg coal plant and expects to receive approval by the end of 2023. The facility is expected to come online by the end of 2024, at which point it will be the largest battery storage project in the State of Indiana.

•The Company expects to receive approval for AES Ohio's new Electric Security Plan (“ESP4”) by the end of August 2023, with new distribution rates effective immediately.

•During the second quarter of 2023, the Company continued to make progress toward exiting coal by year-end 2025:

◦Retirement of the 415 MW Petersburg Unit 2 in Indiana;

◦Announcement of the expected retirement of the 276 MW Norgener plant in Chile in 2025; and

◦Receipt of final regulatory approval, and subsequent deal closing, for the termination of the PPA for the 205 MW Warrior Run plant in Maryland.

38 | The AES Corporation | June 30, 2023 Form 10-Q

Review of Consolidated Results of Operations (Unaudited)

	Three Months Ended June 30,								Six Months Ended June 30,
(in millions, except per share amounts)	2023		2022		$ change		% change		2023		2022		$ change		% change
Revenue:
Renewables SBU	$	541	$	455	$	86	19	%	$	1,036	$	875	$	161	18	%
Utilities SBU	852		821		31		4	%	1,823		1,680		143		9	%
Energy Infrastructure SBU	1,654		1,820		(166)		-9	%	3,378		3,427		(49)		-1	%
New Energy Technologies SBU	1		2		(1)		-50	%	75		2		73		NM
Corporate and Other	40		34		6		18	%	67		57		10		18	%
Eliminations	(61)		(54)		(7)		-13	%	(113)		(111)		(2)		-2	%
Total Revenue	3,027		3,078		(51)		-2	%	6,266		5,930		336		6	%
Operating Margin:
Renewables SBU	118		146		(28)		-19	%	206		199		7		4	%
Utilities SBU	86		67		19		28	%	191		201		(10)		-5	%
Energy Infrastructure SBU	241		307		(66)		-21	%	616		623		(7)		-1	%
New Energy Technologies SBU	(2)		(1)		(1)		100	%	(6)		(3)		(3)		100	%
Corporate and Other	74		40		34		85	%	131		88		43		49	%
Eliminations	(19)		4		(23)		NM		(46)		(15)		(31)		NM
Total Operating Margin	498		563		(65)		-12	%	1,092		1,093		(1)		—	%
General and administrative expenses	(72)		(46)		(26)		57	%	(127)		(98)		(29)		30	%
Interest expense	(310)		(279)		(31)		11	%	(640)		(537)		(103)		19	%
Interest income	131		95		36		38	%	254		170		84		49	%
Loss on extinguishment of debt	—		(1)		1		-100	%	(1)		(7)		6		-86	%
Other expense	(12)		(29)		17		-59	%	(26)		(41)		15		-37	%
Other income	14		70		(56)		-80	%	24		76		(52)		-68	%
Loss on disposal and sale of business interests	(4)		(2)		(2)		100	%	(4)		(1)		(3)		NM
Asset impairment expense	(174)		(482)		308		-64	%	(194)		(483)		289		-60	%
Foreign currency transaction losses	(67)		(49)		(18)		37	%	(109)		(68)		(41)		60	%
Income tax benefit (expense)	2		19		(17)		-89	%	(70)		(41)		(29)		71	%
Net equity in earnings (losses) of affiliates	(25)		5		(30)		NM		(29)		(28)		(1)		4	%
NET INCOME (LOSS)	(19)		(136)		117		-86	%	170		35		135		NM
Less: Income from continuing operations attributable to noncontrolling interests and redeemable stock of subsidiaries	(20)		(43)		23		-53	%	(58)		(99)		41		-41	%
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	$	(39)	$	(179)	$	140	-78	%	$	112	$	(64)	$	176	NM
Net cash provided by operating activities	$	562	$	408	$	154	38	%	$	1,187	$	865	$	322	37	%

Components of Revenue, Cost of Sales, and Operating Margin — Revenue includes revenue earned from the sale of energy from our utilities and the production and sale of energy from our generation plants, which are classified as regulated and non-regulated, respectively, on the Condensed Consolidated Statements of Operations. Revenue also includes the gains or losses on derivatives associated with the sale of electricity.

Cost of sales includes costs incurred directly by the businesses in the ordinary course of business. Examples include electricity and fuel purchases, operations and maintenance costs, depreciation and amortization expenses, bad debt expense and recoveries, and general administrative and support costs (including employee-related costs directly associated with the operations of the business). Cost of sales also includes the gains or losses on derivatives (including embedded derivatives other than foreign currency embedded derivatives) associated with the purchase of electricity or fuel.

Operating margin is defined as revenue less cost of sales.

39 | The AES Corporation | June 30, 2023 Form 10-Q

Consolidated Revenue and Operating Margin

Three Months Ended June 30, 2023

Revenue

(in millions)

Consolidated Revenue — Revenue decreased $51 million, or 2%, for the three months ended June 30, 2023, compared to the three months ended June 30, 2022, driven by:

•$166 million at Energy Infrastructure driven by lower CO2 purchases passed through due to lower production, lower generation, the recognition of unrealized losses due to termination of a PPA, and the impact of the depreciation of the Argentine peso; partially offset by unrealized derivative gains and lower outages.

This unfavorable impact was partially offset by increases of:

•$86 million at Renewables mainly driven by higher spot sales at higher prices, new projects placed into service, and the impacts of better hydrology and wind generation; partially offset by unrealized commodity derivative losses and the impact of the depreciation of the Colombian peso; and

•$31 million at Utilities mainly driven by higher demand due to extreme heat in El Salvador, higher fuel and purchase rider revenues, and higher TDSIC rider and transmission revenues; partially offset by lower retail volumes due to milder weather in Indiana and Ohio.

Operating Margin

(in millions)

Consolidated Operating Margin — Operating margin decreased $65 million, or 12%, for the three months ended June 30, 2023, compared to the three months ended June 30, 2022, driven by:

•$66 million at Energy Infrastructure mainly driven by higher cost of sales, lower thermal dispatch, the recognition of unrealized losses due to termination of a PPA, and lower insurance proceeds; partially offset by lower outages, higher contract energy sales due to higher prices, and unrealized derivative gains; and

•$28 million at Renewables mainly driven by unrealized derivatives losses, higher fixed costs due to an accelerated growth plan, and the impact of the depreciation of the Colombian peso; partially offset by the impact of better hydrology, new businesses operating in our portfolio, and higher wind availability, resulting in higher renewable energy generation.

These unfavorable impacts were partially offset by increases of:

40 | The AES Corporation | June 30, 2023 Form 10-Q

• $19 million at Utilities mainly driven by higher demand due to extreme heat in El Salvador and an increase in transmission and TDSIC rider revenues, partially offset by milder weather and demand in Indiana and Ohio; and

•$11 million at Corporate and Other primarily driven by higher charge-outs of people costs and insurance premiums to the businesses.

Six Months Ended June 30, 2023

Revenue

(in millions)

Consolidated Revenue — Revenue increased $336 million, or 6%, for the six months ended June 30, 2023, compared to the six months ended June 30, 2022, driven by:

•$161 million at Renewables mainly driven by higher spot sales at higher prices and new projects placed into service; partially offset by the impact of the depreciation of the Colombian peso and unrealized derivative losses;

•$143 million at Utilities mainly driven by higher fuel and purchase rider revenues, higher TDSIC rider and transmission revenues, and higher demand due to extreme heat in El Salvador; partially offset by milder weather and demand in Indiana and Ohio; and

•$73 million at New Energy Technologies mainly driven by the sale of the Fallbrook project in March 2023.

These favorable impacts were partially offset by a decrease of $49 million at Energy Infrastructure primarily driven by lower CO2 purchases passed through due to lower production, the recognition of unrealized losses due to termination of a PPA, and the impact of the depreciation of the Argentine peso; partially offset by unrealized derivative gains, and higher contract energy sales due to higher prices.

Operating Margin

(in millions)

Consolidated Operating Margin — Operating margin decreased $1 million, for the six months ended June 30, 2023, compared to the six months ended June 30, 2022, driven by:

•$10 million at Utilities mainly driven by the impact of milder weather in Indiana and Ohio and higher fixed costs, partially offset by an increase in transmission and TDSIC rider revenues and higher demand due to extreme heat in El Salvador.

•$7 million at Energy Infrastructure mainly driven by higher cost of sales, lower thermal dispatch, and the

41 | The AES Corporation | June 30, 2023 Form 10-Q

recognition of unrealized losses due to termination of a PPA; and a prior year one-time revenue recognition driven by a reduction in a project's expected completion costs; partially offset by unrealized derivative gains, favorable LNG transactions, lower outages, and lower depreciation expense due to impairments in the prior year.

These unfavorable impacts were partially offset by increases of:

•$12 million at Corporate and Other mainly driven by higher charge-outs of people costs and insurance premiums to the businesses; and

•$7 million at Renewables mainly driven by new projects placed into service, higher spot sales at higher prices, and the impact of better hydrology and wind generation; partially offset by unrealized derivative losses, higher fixed costs due to an accelerated growth plan and the impact of the depreciation of the Colombian peso.

See Item 2.—Management’s Discussion and Analysis of Financial Condition and Results of Operations—SBU Performance Analysis of this Form 10-Q for additional discussion and analysis of operating results for each SBU.

Consolidated Results of Operations — Other

General and administrative expenses

General and administrative expenses increased $26 million, or 57%, to $72 million for the three months ended June 30, 2023, compared to $46 million for the three months ended June 30, 2022, primarily due to increased business development activity and people costs.

General and administrative expenses increased $29 million, or 30%, to $127 million for the six months ended June 30, 2023 compared to $98 million for the six months ended June 30, 2022, primarily due to increased business development activity, people costs, and professional fees.

Interest expense

Interest expense increased $31 million, or 11%, to $310 million for the three months ended June 30, 2023, compared to $279 million for the three months ended June 30, 2022. This increase is primarily due to new debt issued at the Renewables, Utilities, and Energy Infrastructure SBUs and a higher weighted average interest rate at the Parent Company; partially offset by higher capitalized interest at the Energy Infrastructure SBU.

Interest expense increased $103 million, or 19%, to $640 million for the six months ended June 30, 2023, compared to $537 million for the six months ended June 30, 2022, primarily due to the drivers above.

Interest income

Interest income increased $36 million, or 38%, to $131 million for the three months ended June 30, 2023, compared to $95 million for the three months ended June 30, 2022, primarily due to higher average interest rates and short-term investments at the Energy Infrastructure and Renewables SBUs, partially offset by the prior year sales-type lease receivable adjustment at the Alamitos Energy Center.

Interest income increased $84 million, or 49%, to $254 million for the six months ended June 30, 2023, compared to $170 million for the six months ended June 30, 2022, primarily due to the drivers above.

Other income and expense

Other income decreased $56 million, or 80%, to $14 million for the three months ended June 30, 2023, compared to $70 million for the three months ended June 30, 2022, primarily due to the prior year gain on remeasurement of our existing investment in 5B, which is accounted for using the measurement alternative, and prior year insurance proceeds primarily associated with property damage at TermoAndes.

Other income decreased $52 million, or 68%, to $24 million for the six months ended June 30, 2023, compared to $76 million for the six months ended June 30, 2022, primarily due to the drivers above.

Other expense decreased $17 million, or 59%, to $12 million for the three months ended June 30, 2023, compared to $29 million for the three months ended June 30, 2022, primarily due to the prior year recognition of an allowance on a sales-type receivable at AES Gilbert due to a fire incident in April 2022.

Other expense decreased $15 million, or 37%, to $26 million for the six months ended June 30, 2023, compared to $41 million for the six months ended June 30, 2022, primarily due to the driver above.

42 | The AES Corporation | June 30, 2023 Form 10-Q

See Note 14—Other Income and Expense, Note 6—Investments in and Advances to Affiliates, and Note 17—Acquisitions included in Item 1.—Financial Statements of this Form 10-Q for further information.

Asset impairment expense

Asset impairment expense decreased $308 million, or 64%, to $174 million for the three months ended June 30, 2023, compared to $482 million for the three months ended June 30, 2022. This decrease was primarily due to the $475 million prior year impairment of Maritza’s coal-fired plant due to Bulgaria’s commitment to cease electricity generation using coal as a fuel source beyond 2038, partially offset by the $137 million impairment associated with the commitment to accelerate the retirement of the Norgener coal-fired plant in Chile, an $18 million impairment of five project companies at AES Renewable Holdings associated with the buyout of tax equity partners, and a $15 million impairment of Amman East and IPP4 in Jordan due to the delay in closing the sale transaction.

Asset impairment expense decreased $289 million, or 60%, to $194 million for the six months ended June 30, 2023, compared to $483 million for the six months ended June 30, 2022. This decrease was primarily due to the $475 million prior year impairment at Maritza, partially offset by the $137 million impairment at Norgener, a $29 million impairment of Amman East and IPP4 in Jordan, and an $18 million impairment at AES Renewable Holdings, due to the drivers discussed above.

See Note 15—Asset Impairment Expense included in Item 1.—Financial Statements of this Form 10-Q for further information.

Foreign currency transaction losses

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2023		2022		2023		2022
Argentina	$	(39)	$	(42)	$	(72)	$	(55)
Chile	(28)		(1)		(45)		(11)
Brazil	1		(12)		13		(7)
Other	(1)		6		(5)		5
Total (1)	$	(67)	$	(49)	$	(109)	$	(68)

___________________________________________

(1)Includes losses of $31 million and gains of $7 million on foreign currency derivative contracts for the three months ended June 30, 2023 and 2022, respectively, and losses of $39 million and $49 million on foreign currency derivative contracts for the six months ended June 30, 2023 and 2022, respectively.

The Company recognized net foreign currency transaction losses of $67 million for the three months ended June 30, 2023 primarily driven by the depreciation of the Argentine peso and unrealized losses related to an intercompany loan denominated in the Colombian peso.

The Company recognized net foreign currency transaction losses of $109 million for the six months ended June 30, 2023 primarily driven by the depreciation of the Argentine peso and unrealized losses related to an intercompany loan denominated in the Colombian peso; partially offset by unrealized gains on debt in Brazil.

The Company recognized net foreign currency transaction losses of $49 million for the three months ended June 30, 2022 primarily due to unrealized losses on foreign currency derivatives related to government receivables in Argentina, unrealized losses due to depreciating receivables denominated in the Argentine peso, and unrealized losses on debt in Brazil.

The Company recognized net foreign currency transaction losses of $68 million for the six months ended June 30, 2022 primarily due to unrealized losses on foreign currency derivatives related to government receivables in Argentina, unrealized losses due to depreciating receivables denominated in the Argentine peso, and unrealized derivative losses on foreign currency derivatives in South America due to the depreciating Colombian peso.

43 | The AES Corporation | June 30, 2023 Form 10-Q

Income tax benefit (expense)

Income tax benefit decreased $17 million, or 89%, to $2 million for the three months ended June 30, 2023, compared to $19 million for the three months ended June 30, 2022. The Company’s effective tax rates were (50)% and 12% for the three months ended June 30, 2023, and 2022, respectively. The current year effective tax rate was impacted by the asset impairment of the Norgener coal-fired plant in Chile, while the prior year effective tax rate was impacted by the asset impairment of the Maritza coal-fired plant.

Income tax expense increased $29 million, or 71%, to $70 million for the six months ended June 30, 2023, compared to $41 million for the six months ended June 30, 2022. The Company’s effective tax rates were 26% and 39% for the six months ended June 30, 2023 and 2022, respectively. The prior year effective tax rate was impacted by the asset impairment of the Maritza coal-fired plant.

See Note 15—Asset Impairment Expense included in Item 1.—Financial Statements of this Form 10-Q for details of the Maritza and Norgener asset impairments.

Our effective tax rate reflects the tax effect of significant operations outside the U.S., which are generally taxed at rates different than the U.S. statutory rate of 21%. Furthermore, our foreign earnings may be subjected to incremental U.S. taxation under the GILTI rules. A future proportionate change in the composition of income before income taxes from foreign and domestic tax jurisdictions could impact our periodic effective tax rate.

Net equity in earnings (losses) of affiliates

Net equity in losses of affiliates increased $30 million to $25 million for the three months ended June 30, 2023, compared to earnings of $5 million for the three months ended June 30, 2022. This increase was driven by lower earnings from sPower, mainly due to lower earnings from renewable projects that came online, partially offset by an increase in earnings from Mesa La Paz, primarily due to the termination of unrealized derivatives due to a contract amendment, and by a decrease in losses from Fluence, mainly attributable to improved margins on a new product line, offset by a consolidation adjustment.

Net equity in losses of affiliates increased $1 million, or 4%, to $29 million for the six months ended June 30, 2023, compared to $28 million for the six months ended June 30, 2022. This increase was primarily driven by lower earnings from sPower, mainly due to lower earnings from renewable projects that came online. This increase in losses was partially offset by an increase in earnings from Mesa La Paz, primarily due the termination of unrealized derivatives due to a contract amendment, and by a decrease in losses from Fluence, mainly attributable to improved margins on a new product line and reduced shipping constraints and costs, offset by a consolidation adjustment.

See Note 6—Investments in and Advances to Affiliates included in Item 1.—Financial Statements of this Form 10-Q for further information.

Net income attributable to noncontrolling interests and redeemable stock of subsidiaries

Net income attributable to noncontrolling interests and redeemable stock of subsidiaries decreased $23 million, or 53%, to $20 million for the three months ended June 30, 2023, compared to $43 million for the three months ended June 30, 2022. This decrease was primarily due to:

•Higher allocation of losses to tax equity investors and increased costs associated with the growing business at the Renewables SBU; and

•Current year impairments in Jordan at the Energy Infrastructure SBU.

These decreases were partially offset by:

•Higher earnings from the Renewables SBU due to higher wind availability.

Net income attributable to noncontrolling interests and redeemable stock of subsidiaries decreased $41 million, or 41%, to $58 million for the six months ended June 30, 2023, compared to $99 million for the six months ended June 30, 2022. This decrease was primarily due to:

•Higher allocation of losses to tax equity investors and increased costs associated with the growing business at the Renewables SBU;

•Prior year one-time revenue recognition driven by a reduction in a project's expected completion costs, and current year impairments in Jordan at the Energy Infrastructure SBU; and

•Lower earnings from the Utilities SBU due to unfavorable weather conditions.

These decreases were partially offset by:

44 | The AES Corporation | June 30, 2023 Form 10-Q

•Higher earnings from the Renewables SBU due to favorable weather conditions; and

•Favorable LNG transactions at the Energy Infrastructure SBU.

Net income (loss) attributable to The AES Corporation

Net loss attributable to The AES Corporation decreased $140 million, or 78%, to $39 million for the three months ended June 30, 2023, compared to $179 million for the three months ended June 30, 2022. This decrease was primarily due to:

•Lower long-lived asset impairments in the current year; and

•Increase in interest income due to higher average interest rates and short term investments at the Energy Infrastructure SBU.

These decreases were partially offset by:

•Lower earnings from the Energy Infrastructure SBU as a result of the recognition of unrealized losses due to termination of a PPA, lower thermal dispatch, lower insurance proceeds, and higher cost of sales;

•Prior year gain on remeasurement of our existing investment in 5B; and

•Increase in interest expense due to higher interest rates and new debt issued at the Energy Infrastructure SBU and a higher Parent weighted average interest rate.

Net income attributable to The AES Corporation increased $176 million, to $112 million for the six months ended June 30, 2023, compared to a loss of $64 million for the six months ended June 30, 2022. This increase was primarily due to:

•Lower long-lived asset impairments in the current year;

•Increase in interest income due to higher average interest rates and short term investments at the Energy Infrastructure and Renewables SBUs; and

•Lower losses from affiliates at the New Energy Technologies SBU.

These increases were partially offset by:

•Higher unrealized foreign currency losses at the Energy Infrastructure SBU;

•Lower earnings from the Renewables SBU due to unrealized derivative losses, higher fixed costs due to an accelerated growth plan, and the impact of the Colombian peso;

•Lower earnings from the Energy Infrastructure SBU as a result of the recognition of unrealized losses due to termination of a PPA, lower thermal dispatch, and higher cost of sales; and

•Increase in interest expense due to higher interest rates and new debt issued at the Energy Infrastructure SBU and a higher Parent weighted average interest rate.

SBU Performance Analysis

Non-GAAP Measures

EBITDA, Adjusted EBITDA, Adjusted EBITDA with Tax Attributes, Adjusted PTC, and Adjusted EPS are non-GAAP supplemental measures that are used by management and external users of our condensed consolidated financial statements such as investors, industry analysts, and lenders.

During the first quarter of 2023, management began assessing operational performance and making resource allocation decisions using Adjusted EBITDA. Therefore, the Company uses Adjusted EBITDA as its primary segment performance measure. EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes are new non-GAAP supplemental measures reported beginning in the first quarter of 2023.

45 | The AES Corporation | June 30, 2023 Form 10-Q

EBITDA, Adjusted EBITDA and Adjusted EBITDA with Tax Attributes

We define EBITDA as earnings before interest income and expense, taxes, depreciation, and amortization. We define Adjusted EBITDA as EBITDA excluding the impact of NCI and interest, taxes, depreciation, and amortization of our equity affiliates, adding back interest income recognized under service concession arrangements, and excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence.

In addition to the revenue and cost of sales reflected in Operating Margin, Adjusted EBITDA includes the other components of our Consolidated Statement of Operations, such as general and administrative expenses in Corporate and Other as well as business development costs, other expense and other income, realized foreign currency transaction gains and losses, and net equity in earnings of affiliates.

We further define Adjusted EBITDA with Tax Attributes as Adjusted EBITDA, adding back the pre-tax effect of Production Tax Credits (“PTCs”), Investment Tax Credits (“ITCs”), and depreciation tax expense allocated to tax equity investors.

The GAAP measure most comparable to EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes is Net income. We believe that EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes better reflect the underlying business performance of the Company. Adjusted EBITDA is the most relevant measure considered in the Company’s internal evaluation of the financial performance of its segments. Factors in this determination include the variability due to unrealized gains or losses related to derivative transactions or equity securities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests or retire debt, the non-recurring nature of the impact of the early contract terminations at Angamos, and the variability of allocations of earnings to tax equity investors, which affect results in a given period or periods. In addition, each of these metrics represent the business performance of the Company before the application of statutory income tax rates and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. Given its large number of businesses and overall complexity, the Company concluded that Adjusted EBITDA is a more transparent measure than Net income that better assists investors in determining which businesses have the greatest impact on the Company’s results.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes should not be construed as alternatives to Net income, which is determined in accordance with GAAP.

	Three Months Ended June 30,				Six Months Ended June 30,
Reconciliation of Adjusted EBITDA and Adjusted EBITDA with Tax Attributes (in millions)	2023		2022		2023		2022
Net income	$	(19)	$	(136)	$	170	$	35
Income tax expense (benefit)	(2)		(19)		70		41
Interest expense	310		279		640		537
Interest income	(131)		(95)		(254)		(170)
Depreciation and amortization	277		264		550		534
EBITDA	$	435	$	293	$	1,176	$	977
Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1)	(155)		(156)		(325)		(312)
Less: Income tax expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates	27		23		66		57
Interest income recognized under service concession arrangements	18		20		36		39
Unrealized derivative and equity securities losses (gains)	32		(34)		(7)		8
Unrealized foreign currency losses	32		38		64		20
Disposition/acquisition losses	16		23		13		32
Impairment losses	164		479		173		480
Loss on extinguishment of debt	—		—		1		6
Adjusted EBITDA (1)	$	569	$	686	$	1,197	$	1,307
Tax attributes allocated to tax equity investors	38		36		51		49
Adjusted EBITDA with Tax Attributes (2)	$	607	$	722	$	1,248	$	1,356

46 | The AES Corporation | June 30, 2023 Form 10-Q

______________________________

(1)        The allocation of earnings to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA.

(2)         Adjusted EBITDA with Tax Attributes includes the impact of the share of the ITCs, PTCs, and depreciation expense allocated to tax equity investors under the HLBV accounting method and recognized as Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries on the Condensed Consolidated Statements of Operations. All of the tax attributes are related to the Renewables SBU.

Adjusted PTC

We define Adjusted PTC as pre-tax income from continuing operations attributable to The AES Corporation excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits, and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses, and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities.

Adjusted PTC reflects the impact of NCI and excludes the items specified in the definition above. In addition to the revenue and cost of sales reflected in Operating Margin, Adjusted PTC includes the other components of our Consolidated Statement of Operations, such as general and administrative expenses in Corporate and Other as well as business development costs, interest expense and interest income, other expense and other income, realized foreign currency transaction gains and losses, and net equity in earnings of affiliates.

47 | The AES Corporation | June 30, 2023 Form 10-Q

The GAAP measure most comparable to Adjusted PTC is Income from continuing operations attributable to The AES Corporation. We believe that Adjusted PTC better reflects the underlying business performance of the Company and is a relevant measure considered in the Company’s internal evaluation of the financial performance of its segments. Factors in this determination include the variability due to unrealized gains or losses related to derivative transactions or equity securities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests or retire debt, and the non-recurring nature of the impact of the early contract terminations at Angamos, which affect results in a given period or periods. In addition, earnings before tax represents the business performance of the Company before the application of statutory income tax rates and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. Given its large number of businesses and complexity, the Company concluded that Adjusted PTC is a more transparent measure than Income from continuing operations attributable to The AES Corporation that better assists investors in determining which businesses have the greatest impact on the Company’s results.

Adjusted PTC should not be construed as an alternative to Income from continuing operations attributable to The AES Corporation, which is determined in accordance with GAAP.

	Three Months Ended June 30,				Six Months Ended June 30,
Reconciliation of Adjusted PTC (in millions)	2023		2022		2023		2022
Income (loss) from continuing operations, net of tax, attributable to The AES Corporation	$	(39)	$	(179)	$	112	$	(64)
Income tax expense (benefit) from continuing operations attributable to The AES Corporation	(16)		(29)		35		21
Pre-tax contribution	(55)		(208)		147		(43)
Unrealized derivative and equity securities losses (gains)	33		(35)		(6)		6
Unrealized foreign currency losses	33		39		64		20
Disposition/acquisition losses	16		23		13		32
Impairment losses	164		479		173		480
Loss on extinguishment of debt	—		6		4		16
Adjusted PTC	$	191	$	304	$	395	$	511

48 | The AES Corporation | June 30, 2023 Form 10-Q

Adjusted EPS

We define Adjusted EPS as diluted earnings per share from continuing operations excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and the tax impact from the repatriation of sales proceeds, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence; and (g) tax benefit or expense related to the enactment effects of 2017 U.S. tax law reform and related regulations and any subsequent period adjustments related to enactment effects, including the 2021 tax benefit on reversal of uncertain tax positions effectively settled upon the closure of the Company's U.S. tax return exam.

The GAAP measure most comparable to Adjusted EPS is Diluted earnings per share from continuing operations. We believe that Adjusted EPS better reflects the underlying business performance of the Company and is considered in the Company’s internal evaluation of financial performance. Factors in this determination include the variability due to unrealized gains or losses related to derivative transactions or equity securities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests or retire debt, the one-time impact of the 2017 U.S. tax law reform and subsequent period adjustments related to enactment effects, and the non-recurring nature of the impact of the early contract terminations at Angamos, which affect results in a given period or periods.

Adjusted EPS should not be construed as an alternative to Diluted earnings per share from continuing operations, which is determined in accordance with GAAP.

The Company reported a loss from continuing operations of $0.06 for the three months ended June 30, 2023 and $0.27 and $0.10 for the three and six months ended June 30, 2022, respectively. For purposes of measuring diluted loss per share under GAAP, common stock equivalents were excluded from weighted average shares as their inclusion would be anti-dilutive. However, for purposes of computing Adjusted EPS, the Company has included the impact of dilutive common stock equivalents. The tables below reconcile the weighted average shares used in GAAP diluted loss per share to the weighted average shares used in calculating the non-GAAP measure of Adjusted EPS.

49 | The AES Corporation | June 30, 2023 Form 10-Q

Reconciliation of Denominator Used For Adjusted EPS	Three Months Ended June 30, 2023
(in millions, except per share data)	Loss		Shares	$ per Share
GAAP DILUTED LOSS PER SHARE
Loss from continuing operations attributable to The AES Corporation common stockholders	$	(39)	669	$	(0.06)
EFFECT OF DILUTIVE SECURITIES
Stock options	—		1	—
Restricted stock units	—		2	—
Equity units	—		40	0.01
NON-GAAP DILUTED LOSS PER SHARE	$	(39)	712	$	(0.05)

Reconciliation of Denominator Used For Adjusted EPS	Three Months Ended June 30, 2022					Six Months Ended June 30, 2022
(in millions, except per share data)	Loss		Shares	$ per Share		Loss		Shares	$ per Share
GAAP DILUTED LOSS PER SHARE
Loss from continuing operations attributable to The AES Corporation common stockholders	$	(179)	668	$	(0.27)	$	(64)	668	$	(0.10)
EFFECT OF DILUTIVE SECURITIES
Stock options	—		1	—		—		1	—
Restricted stock units	—		2	—		—		2	—
Equity units	—		40	0.02		1		40	0.01
NON-GAAP DILUTED LOSS PER SHARE	$	(179)	711	$	(0.25)	$	(63)	711	$	(0.09)

	Three Months Ended June 30,						Six Months Ended June 30,
Reconciliation of Adjusted EPS	2023			2022			2023			2022
Diluted earnings (loss) per share from continuing operations	$	(0.05)		$	(0.25)		$	0.16		$	(0.09)
Unrealized derivative and equity securities losses (gains)	0.05		(1)	(0.05)		(2)	(0.01)		(3)	0.01
Unrealized foreign currency losses	0.04		(4)	0.05		(5)	0.09		(6)	0.03
Disposition/acquisition losses	0.02			0.03		(7)	0.02			0.04		(7)
Impairment losses	0.23		(8)	0.68		(9)	0.24		(8)	0.68		(9)
Loss on extinguishment of debt	—			0.01			0.01			0.02
Less: Net income tax benefit	(0.08)		(10)	(0.13)		(11)	(0.08)		(10)	(0.14)		(11)
Adjusted EPS	$	0.21		$	0.34		$	0.43		$	0.55

_____________________________

(1)Amount primarily relates to recognition of unrealized losses due to the termination of a PPA of $72 million, or $0.10 per share, partially offset by unrealized derivative gains at the Energy Infrastructure SBU of $37 million, or $0.05 per share.

(2)Amount primarily relates to the unrealized gain on remeasurement of our existing investment in 5B, accounted for using the measurement alternative, of $26 million, or $0.04 per share.

(3)Amount primarily relates to unrealized derivative gains at the Energy Infrastructure SBU of $87 million, or $0.12 per share, partially offset by the recognition of unrealized losses due to the termination of a PPA of $72 million, or $0.10 per share.

(4)Amount primarily relates to unrealized foreign currency losses mainly associated with the devaluation of long-term receivables denominated in Argentine pesos of $24 million, or $0.03 per share, and unrealized foreign currency losses at AES Andes due to the depreciating Colombian peso of $15 million, or $0.02 per share.

(5)Amount primarily relates to unrealized foreign currency losses on debt in Brazil of $12 million, or $0.02 per share, and unrealized foreign currency losses of $9 million, or $0.01 per share, mainly associated with the devaluation of long-term receivables denominated in Argentine pesos.

(6)Amount primarily relates to unrealized foreign currency losses mainly associated with the devaluation of long-term receivables denominated in Argentine pesos of $49 million, or $0.07 per share, and unrealized foreign currency losses at AES Andes due to the depreciating Colombian peso of $31 million, or $0.04 per share.

(7)Amount primarily relates to the recognition of an allowance on the AES Gilbert sales-type lease receivable as a cost of disposition of a business interest of $20 million, or $0.03 per share, for the three and six months ended June 30, 2022.

(8)Amount primarily relates to asset impairments at the Norgener coal-fired plant in Chile of $136 million, or $0.19 per share, and the GAF Projects at AES Renewable Holdings of $18 million, or $0.03 per share for the three and six months ended June 30, 2023.

(9)Amount primarily relates to asset impairment at Maritza of $475 million, or $0.67 per share, for the three and six months ended June 30, 2022.

(10)Amount primarily relates to income tax benefits associated with the asset impairment at the Norgener coal fired plant in Chile of $33 million, or $0.05 per share, and income tax benefits associated with the recognition of unrealized losses due to the termination of a PPA of $18 million, or $0.02 per share, for the three and six months ended June 30, 2023.

(11)Amount primarily relates to income tax benefits associated with the impairment at Maritza of $110 million, or $0.15 per share, partially offset by income tax expense associated with the unrealized gain on remeasurement of our existing investment in 5B of $6 million, or $0.01 per share for the three and six months ended June 30, 2022.

50 | The AES Corporation | June 30, 2023 Form 10-Q

Renewables SBU

The following table summarizes Operating Margin, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes (in millions) for the periods indicated:

	Three Months Ended June 30,								Six Months Ended June 30,
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Operating Margin	$	118	$	146	$	(28)	-19	%	$	206	$	199	$	7	4	%
Adjusted EBITDA (1)	166		162		4		2	%	290		281		9		3	%
Adjusted EBITDA with Tax Attributes (1)	204		198		6		3	%	341		330		11		3	%

_____________________________

(1)    A non-GAAP financial measure. See SBU Performance Analysis—Non-GAAP Measures for definition.

Operating Margin for the three months ended June 30, 2023 decreased $28 million driven primarily by unrealized derivatives losses, higher fixed costs due to an accelerated growth plan, and the impact of the depreciation of the Colombian peso. This decrease was partially offset by the impact of better hydrology, new businesses operating in our portfolio, and higher wind availability, resulting in higher renewable energy generation.

Adjusted EBITDA for the three months ended June 30, 2023 increased $4 million primarily due to the drivers mentioned above, adjusted for NCI, unrealized derivatives, and depreciation expense.

Adjusted EBITDA with Tax Attributes for the three months ended June 30, 2023 increased $6 million primarily due to the increase in Adjusted EBITDA. During the three months ended June 30, 2023 and 2022, we realized $38 million and $36 million, respectively, from Tax Attributes earned by our U.S. renewables business.

Operating Margin for the six months ended June 30, 2023 increased $7 million driven primarily by better hydrology, new businesses operating in our portfolio, and higher wind availability, resulting in higher renewable energy generation. This increase was partially offset by unrealized derivatives losses, higher fixed costs due to an accelerated growth plan, and the impact of the depreciation of the Colombian peso.

Adjusted EBITDA for the six months ended June 30, 2023 increased $9 million primarily due to the drivers mentioned above, adjusted for NCI, unrealized derivatives, and depreciation expense.

Adjusted EBITDA with Tax Attributes for the six months ended June 30, 2023 increased $11 million primarily due to the increase in Adjusted EBITDA. During the six months ended June 30, 2023 and 2022, we realized $51 million and $49 million, respectively, from Tax Attributes earned by our U.S. renewables business.

Utilities SBU

The following table summarizes Operating Margin, Adjusted EBITDA, and Adjusted PTC (in millions) for the periods indicated:

	Three Months Ended June 30,								Six Months Ended June 30,
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Operating Margin	$	86	$	67	$	19	28	%	$	191	$	201	$	(10)	-5	%
Adjusted EBITDA (1)	148		135		13		10	%	310		319		(9)		-3	%
Adjusted PTC (1) (2)	21		16		5		31	%	59		85		(26)		-31	%

____________________________

(1)    A non-GAAP financial measure. See SBU Performance Analysis—Non-GAAP Measures for definition.

(2)    Adjusted PTC remains a key metric used by management for analyzing our businesses in the utilities industry.

Operating Margin for the three months ended June 30, 2023 increased $19 million mainly driven by extreme heat in El Salvador and an increase in transmission and TDSIC rider revenues, partially offset by milder weather and demand in Indiana and Ohio.

Adjusted EBITDA for the three months ended June 30, 2023 increased $13 million primarily due to the drivers above, adjusted for NCI.

Adjusted PTC for the three months ended June 30, 2023 increased $5 million due to the drivers above and higher interest expense due to new debt transactions.

Operating Margin for the six months ended June 30, 2023 decreased $10 million mainly driven by the impact of milder weather in Indiana and Ohio and higher fixed costs, partially offset by an increase in transmission and TDSIC rider revenues and extreme heat in El Salvador.

Adjusted EBITDA for the six months ended June 30, 2023 decreased $9 million primarily due to the drivers above, adjusted for NCI.

51 | The AES Corporation | June 30, 2023 Form 10-Q

Adjusted PTC for the six months ended June 30, 2023 decreased $26 million due to the drivers above and higher interest expense due to new debt transactions.

Energy Infrastructure SBU

The following table summarizes Operating Margin and Adjusted EBITDA (in millions) for the periods indicated:

	Three Months Ended June 30,								Six Months Ended June 30,
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Operating Margin	$	241	$	307	$	(66)	-21	%	$	616	$	623	$	(7)	-1	%
Adjusted EBITDA (1)	282		379		(97)		-26	%	645		733		(88)		-12	%

_____________________________

(1)    A non-GAAP financial measure. See SBU Performance Analysis—Non-GAAP Measures for definition.

Operating Margin for the three months ended June 30, 2023 decreased $66 million driven primarily by higher cost of sales, lower thermal dispatch substituted with renewable sources, the recognition of unrealized losses due to the termination of a PPA and lower insurance proceeds.

These losses were partially offset by lower outages, higher contract energy sales due to higher prices and unrealized gains resulting from derivatives as part of our commercial hedging strategy.

Adjusted EBITDA for the three months ended June 30, 2023 decreased $97 million primarily due to the drivers above adjusted for NCI and unrealized derivatives losses, higher realized foreign currency losses and lower insurance recovery.

Operating Margin for the six months ended June 30, 2023 decreased $7 million driven primarily by higher cost of sales, lower thermal dispatch substituted with renewable sources, the recognition of unrealized losses due to the termination of a PPA, and a prior year's one-time revenue recognition driven by a reduction in a project's expected completion costs.

These losses were partially offset by unrealized gains resulting from derivatives as part of our commercial hedging strategy, favorable LNG transactions, lower outages and lower depreciation expense due to impairments recognized in prior year.

Adjusted EBITDA for the six months ended June 30, 2023 decreased $88 million primarily due to the drivers above adjusted for NCI, unrealized derivatives losses, depreciation, higher realized foreign currency losses and lower insurance recovery.

New Energy Technologies SBU

The following table summarizes Operating Margin and Adjusted EBITDA (in millions) for the periods indicated:

	Three Months Ended June 30,								Six Months Ended June 30,
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Operating Margin	$	(2)	$	(1)	$	(1)	100	%	$	(6)	$	(3)	$	(3)	-100	%
Adjusted EBITDA (1)	(13)		(26)		13		-50	%	(39)		(61)		22		36	%

_____________________________

(1)    A non-GAAP financial measure. See SBU Performance Analysis—Non-GAAP Measures for definition.

Operating Margin for the three months ended June 30, 2023 decreased $1 million, with no material drivers.

Adjusted EBITDA for the three months ended June 30, 2023 increased $13 million primarily driven by lower losses at Fluence, whose results are reported as Net equity in losses of affiliates on our Condensed Consolidated Statements of Operations, mainly attributable to improved margins on a new product line, the issuance of price increase change orders during the period, the settlement of contractual claims with a battery module vendor and incremental costs incurred in the prior year as a result of COVID-19. These increases in operating margin were partially offset by higher costs for research and development, sales and marketing and general and administrative expenses.

Operating Margin for the six months ended June 30, 2023 decreased $3 million, with no material drivers.

Adjusted EBITDA for the six months ended June 30, 2023 increased $22 million primarily due to the same drivers as for the three months ended June 30, 2023.

52 | The AES Corporation | June 30, 2023 Form 10-Q

Key Trends and Uncertainties

During 2023 and beyond, we expect to face the following challenges at certain of our businesses. Management expects that improved operating performance at certain businesses, growth from new businesses, and global cost reduction initiatives may lessen or offset their impact. If these favorable effects do not occur, or if the challenges described below and elsewhere in this section impact us more significantly than we currently anticipate, or if volatile foreign currencies and commodities move more unfavorably, then these adverse factors (or other adverse factors unknown to us) may have a material impact on our operating margin, net income attributable to The AES Corporation, and cash flows. We continue to monitor our operations and address challenges as they arise. For the risk factors related to our business, see Item 1.—Business and Item 1A.—Risk Factors of our 2022 Form 10-K.

Operational

Trade Restrictions and Supply Chain — On March 29, 2022, the U.S. Department of Commerce (“Commerce”) announced the initiation of an investigation into whether imports into the U.S. of solar cells and panels imported from Cambodia, Malaysia, Thailand, and Vietnam are circumventing antidumping and countervailing duty orders on solar cells and panels from China. This investigation resulted in significant systemic disruptions to the import of solar cells and panels from Southeast Asia. On June 6, 2022, President Biden issued a Proclamation waiving any tariffs that result from this investigation for a 24-month period. Since President Biden’s Proclamation, suppliers in Southeast Asia have imported cells and panels again to the U.S.

On December 2, 2022, Commerce issued country-wide affirmative preliminary determinations that circumvention had occurred in each of the four Southeast Asian countries. Commerce also evaluated numerous individual companies and issued preliminary determinations that circumvention had occurred with respect to many but not all of these companies. Additionally, Commerce issued a preliminary determination that circumvention would not be deemed to occur for any solar cells and panels imported from the four countries if the wafers were manufactured outside of China or if no more than two out of six specifically identified components were produced in China. These preliminary determinations could be modified and final determinations from Commerce are currently expected in August 2023. We have contracted and secured our expected requirements for solar panels for U.S. projects targeted to achieve commercial operations in 2023 and 2024.

Additionally, the Uyghur Forced Labor Prevention Act (“UFLPA”) seeks to block the import of products made with forced labor in certain areas of China and may lead to certain suppliers being blocked from importing solar cells and panels to the U.S. While this has impacted the U.S. market, AES has managed this issue without significant impact to our projects. Further disruptions may impact our suppliers’ ability or willingness to meet their contractual agreements or to continue to supply cells or panels into the U.S. market on terms that we deem satisfactory.

The impact of any adverse Commerce determination, the impact of the UFLPA, future disruptions to the solar panel supply chain and their effect on AES’ U.S. solar project development and construction activities are uncertain. AES will continue to monitor developments and take prudent steps towards maintaining a robust supply chain for our renewable projects.

Operational Sensitivity to Dry Hydrological Conditions — Our hydroelectric generation facilities are sensitive to changes in the weather, particularly the level of water inflows into generation facilities. In the past, dry hydrological conditions in Panama, Brazil, Colombia and Chile have presented challenges for our businesses in these markets. Low rainfall and water inflows have caused reservoir levels to be below historical levels, reduced generation output, and increased prices for electricity. If our hydroelectric generation facilities cannot generate sufficient energy to meet contractual arrangements, we may need to purchase energy to fulfill our obligations, which could have a material adverse impact on our results of operations. As a mitigation measure, AES has invested in thermal, wind, and solar generation assets, which have a complementary profile to hydroelectrics. These plants are expected to have a higher generation in low hydrology scenarios, which allows them to generate additional revenues from the spot that offset purchases on the hydroelectric side.

According to the National Oceanic and Atmospheric Administration ("NOAA"), El Niño conditions are observed and forecasted through the beginning of spring of 2024. In Panama, the El Niño phenomenon typically means drier conditions than average, although local system impacts may vary due to other factors. Lower hydrology may result in increased energy purchases to cover contracted positions, or less energy available to sell in the spot market after fulfilling contract obligations. Consistent with expected El Niño impacts, local hydrological forecasts in Panama indicate below historical average inflows persisting through the beginning of the rainy season, which could impact our results of operations. AES reduced its total generation exposure in Panama to dry hydrological conditions through investments in such complementary assets as the Colon LNG power facility, which commenced operations

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in 2018, the Penonome Wind Farm, and solar projects, providing a stable and independent diversified energy supply during periods of drought or when hydroelectric generation is limited.

In Brazil, El Niño generally means more rainfall in the southern region of the country, where system reservoir levels are currently high, mitigating El Niño risk. In Colombia, El Niño is characterized by drought and may result in higher spot prices. Lower overall AES Chivor hydrology may result in increased energy purchases to cover contracted positions. However, the basin where AES Chivor is located typically experiences dry conditions that are less severe than the system and could result in additional energy available to sell in the spot market after fulfilling contract obligations. In the case of Chile, a strong El Niño impact during Chilean winter (June to September) suggests wetter hydrology, which could reduce spot prices benefiting the cost of energy purchases. High temperatures and spring rains could cause an accelerated snowmelt.

The exact behavior pattern and strength of El Niño cannot be definitively known at this time and therefore the impacts could vary from those described above, and may include impacts to our businesses beyond hydrology, including with respect to power generation from other renewable sources of energy and demand. Even if rainfall and water inflows return to historical averages, in some cases high market prices and low generation could persist until reservoir levels are fully recovered. Further, investments made in thermal, wind, and solar power generation may benefit from uncontracted spot sales at higher market prices. Impacts may be material to our results of operations.

Macroeconomic and Political

During the past few years, some countries where our subsidiaries conduct business have experienced macroeconomic and political changes. In the event these trends continue, there could be an adverse impact on our businesses.

Inflation Reduction Act and U.S. Renewable Energy Tax Credits — The Inflation Reduction Act (the “IRA”) was signed into law in the United States in 2022. The IRA includes provisions that are expected to benefit the U.S. clean energy industry, including increases, extensions and/or new tax credits for onshore and offshore wind, solar, storage and hydrogen projects. We expect that the extension of the current solar investment tax credits (“ITCs”), as well as higher credits available for projects that satisfy wage and apprenticeship requirements, will increase demand for our renewables products.

Our U.S. renewables business has a 51 GW pipeline that we intend to utilize to continue to grow our business, and these changes in tax policy are supportive of this strategy. We account for U.S. renewables projects according to U.S. GAAP, which, when partnering with tax-equity investors to monetize tax benefits, utilizes the HLBV method. This method recognizes the tax-credit value that is transferred to tax equity partners at the time of its creation, which for projects utilizing the investment tax credit is in the quarter the project begins commercial operation. For projects utilizing the production tax credit, this value is recognized over 10 years as the facility produces energy. In 2022, we realized $267 million of earnings from Tax Attributes. In 2023, we expect an increase in Tax Attributes earned by our U.S. renewables business in line with the growth of that business. Based on construction schedules, a significant portion of these earnings will be realized in the fourth quarter.

The implementation of the IRA is expected to require substantial guidance from the U.S. Department of Treasury and other government agencies. While that guidance is pending, there will be uncertainty with respect to the implementation of certain provisions of the IRA.

Global Tax — The macroeconomic and political environments in the U.S. and in some countries where our subsidiaries conduct business have changed during 2022 and 2023. This could result in significant impacts to tax law.

In the U.S., the IRA includes a 15% corporate alternative minimum tax based on adjusted financial statement income. Additional guidance is expected to be issued in 2023.

In the fourth quarter of 2022, the European Commission adopted an amended Directive on Pillar 2 establishing a global minimum tax at a 15% rate. The adoption requires EU Member States to transpose the Directive into their respective national laws by December 31, 2023 for the rules to come into effect as of January 1, 2024. We will continue to monitor the issuance of draft legislation in Bulgaria, the Netherlands, and other relevant EU Member States. The impact to the Company remains unknown but may be material.

Inflation — In the markets in which we operate, there have been higher rates of inflation recently. While most of our contracts in our international businesses are indexed to inflation, in general, our U.S.-based generation contracts are not indexed to inflation. If inflation continues to increase in our markets, it may increase our expenses that we may not be able to pass through to customers. It may also increase the costs of some of our development

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projects that could negatively impact their competitiveness. Our utility businesses do allow for recovering of operations and maintenance costs through the regulatory process, which may have timing impacts on recovery.

Puerto Rico — As discussed in Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Trends and Uncertainties of the 2022 Form 10-K, our subsidiaries in Puerto Rico have long-term PPAs with state-owned PREPA, which has been facing economic challenges that could result in a material adverse effect on our business in Puerto Rico. Despite the Title III protection, PREPA has been making substantially all of its payments to the generators in line with historical payment patterns.

The Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”) was enacted to create a structure for exercising federal oversight over the fiscal affairs of U.S. territories and created procedures for adjusting debt accumulated by the Puerto Rico government and, potentially, other territories (“Title III”). PROMESA also expedites the approval of key energy projects and other critical projects in Puerto Rico.

PROMESA allowed for the establishment of an Oversight Board with broad powers of budgetary and financial control over Puerto Rico. The Oversight Board filed for bankruptcy on behalf of PREPA under Title III in July 2017. As a result of the bankruptcy filing, AES Puerto Rico and AES Ilumina’s non-recourse debt of $143 million and $25 million, respectively, continue to be in technical default and are classified as current as of June 30, 2023. The non-recourse debt at AES Puerto Rico is also in payment default.

On April 12, 2022, a mediation team was appointed to prepare the plan to resolve the PREPA Title III case and related proceedings. A disclosure statement hearing was held on April 28, 2023. The mediation was extended through August 4, 2023.

Earlier this year, AES Puerto Rico took certain measures to address identified liquidity challenges. On July 6, 2023, PREPA agreed to the release of funds in the escrow account guaranteeing AES Puerto Rico’s obligations under the Power Purchase and Operating Agreement (“PPOA”) in order to provide additional liquidity for the business. Additionally, AES Puerto Rico entered into a standstill and forbearance agreement with its noteholders because of the insufficiency of funds to meet the principal and interest obligations on its Series A Bond Loans due and payable on June 1, 2023, and going forward. AES Puerto Rico continues to work with PREPA and its noteholders on these liquidity challenges.

Despite these challenges and considering the information available as of the filing date, management believes the carrying amount of our long-lived assets at AES Puerto Rico of $63 million is recoverable as of June 30, 2023. However, it is reasonably possible that the estimate of undiscounted cash flows may change in the near term resulting in the need to write down our long-lived assets in Puerto Rico to fair value.

Decarbonization Initiatives

Our strategy involves shifting towards clean energy platforms, including renewable energy, energy storage, LNG, and modernized grids. It is designed to position us for continued growth while reducing our carbon intensity and in support of our mission of accelerating the future of energy, together. In February 2022, we announced our intent to exit coal generation by year-end 2025, subject to necessary approvals.

In addition, initiatives have been announced by regulators, including in Chile, Puerto Rico, and Bulgaria, and offtakers in recent years, with the intention of reducing GHG emissions generated by the energy industry. In parallel, the shift towards renewables has caused certain customers to migrate to other low-carbon energy solutions and this trend may continue.

Although we cannot currently estimate the financial impact of these decarbonization initiatives, new legislative or regulatory programs further restricting carbon emissions or other initiatives to voluntarily exit coal generation could require material capital expenditures, resulting in a reduction of the estimated useful life of certain coal facilities, or have other material adverse effects on our financial results.

For further information about the risks associated with decarbonization initiatives, see Item 1A.—Risk Factors—Concerns about GHG emissions and the potential risks associated with climate change have led to increased regulation and other actions that could impact our businesses included in the 2022 Form 10-K.

AES Warrior Run PPA Termination — On March 23, 2023, the Company entered into an agreement to terminate the PPA for its 205 MW Warrior Run coal-fired power plant. The agreement was approved by the Maryland Public Service Commission in June and became effective on June 28, 2023. As of the effective date, Warrior Run will no longer sell its electricity to the offtaker, Potomac Edison, but will continue to provide capacity through May 31, 2024 in exchange for total proceeds of $357 million to be received in equal installments through January 2030. The previous expiration for the Warrior Run PPA was 2030.

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Regulatory

AES Maritza PPA Review — DG Comp is conducting a preliminary review of whether AES Maritza’s PPA with NEK is compliant with the European Union's State Aid rules. No formal investigation has been launched by DG Comp to date. However, AES Maritza has been engaging in discussions with the DG Comp case team and the Government of Bulgaria (“GoB”) to attempt to reach a negotiated resolution of the DG Comp’s review (“PPA Discussions”). The PPA Discussions are ongoing and the PPA continues to remain in place. However, there can be no assurance that, in the context of the PPA Discussions, the other parties will not seek a prompt termination of the PPA.

We do not believe termination of the PPA is justified. Nevertheless, the PPA Discussions will involve a range of potential outcomes, including but not limited to the termination of the PPA and payment of some level of compensation to AES Maritza. Any negotiated resolution would be subject to mutually acceptable terms, lender consent, and DG Comp approval. At this time, we cannot predict the outcome of the PPA Discussions or when those discussions will conclude. Nor can we predict how DG Comp might resolve its review if the PPA Discussions fail to result in an agreement concerning the agency’s review. AES Maritza believes that its PPA is legal and in compliance with all applicable laws, and it will take all actions necessary to protect its interests, whether through negotiated agreement or otherwise. However, there can be no assurance that this matter will be resolved favorably; if it is not, there could be a material adverse effect on the Company’s financial condition, results of operations, and cash flows. As of June 30, 2023, the carrying value of our long-lived assets at Maritza is $342 million.

AES Ohio Distribution Rate Case — On December 14, 2022, the PUCO issued an order on AES Ohio’s application to increase its base rates for electric distribution service to address, in part, increased costs of materials and labor and substantial investments to improve distribution structures. Among other matters, the order establishes a revenue increase of $76 million for AES Ohio’s base rates for electric distribution service. This increase will go into effect when AES Ohio has a new electric security plan in place, which is expected in 2023.

AES Ohio Electric Security Plan — On September 26, 2022, AES Ohio filed its latest Electric Security Plan (ESP 4) with the PUCO, which is a comprehensive plan to enhance and upgrade its network and improve service reliability, provide greater safeguards for price stability, and continue investments in local economic development. ESP 4 also seeks to recover outstanding regulatory assets not currently in rates. AES Ohio did not propose that the Rate Stabilization Charge continue under ESP 4.

On April 10, 2023, AES Ohio entered into a Stipulation and Recommendation with various intervening parties with respect to ESP 4. The settlement is subject to, and conditioned upon, approval by the PUCO. The settlement would provide for a three-year ESP without a rate stability charge, and, in addition to other items, provides for:

•A Distribution Investment Rider allowing the timely recovery of distribution investments by AES Ohio based on a 9.999% return on equity, subject to revenue caps;

•The recovery of $66 million related to past expenditures by AES Ohio plus future carrying costs and the recovery of incremental vegetation management expenses up to certain annual limits during the term of ESP 4; and

•Funding of programs for assistance to low-income customers and for economic development.

Upon approval of the settlement, the distribution rates that were approved by the PUCO in December 2022 will become effective. An evidentiary hearing began on May 2, 2023, and AES Ohio expects an order by the PUCO in the third quarter of 2023.

AES Indiana Regulatory Rate Review — AES Indiana filed a petition with the IURC on June 28, 2023 for authority to increase its basic rates and charges to cover the rising operational costs and needs associated with continuing to serve its customers safely and reliably. The factors leading to AES Indiana's first base rate increase request in five years include inflationary impacts on operations and maintenance expenses, investments in reliability and resiliency improvements, and enhancements to its customer systems. AES Indiana's proposed revenue increase was $134 million annually, or 8.9%. We expect to receive an order from the IURC by the end of the second quarter of 2024. Pending approval from the IURC, new rates are anticipated to go into effect in the summer of 2024.

Foreign Exchange Rates

We operate in multiple countries and as such are subject to volatility in exchange rates at varying degrees at the subsidiary level and between our functional currency, the USD, and currencies of the countries in which we operate.

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The overall economic climate in Argentina has deteriorated, resulting in volatility and increased the risk that a further significant devaluation of the Argentine peso against the USD, similar to the devaluations experienced by the country in 2018 and 2019, may occur. A continued trend of peso devaluation could result in increased inflation, a deterioration of the country’s risk profile, and other adverse macroeconomic effects that could significantly impact our results of operations. For additional information, refer to Item 3.—Quantitative and Qualitative Disclosures About Market Risk.

Impairments

Long-lived Assets and Current Assets Held-for-Sale — During the six months ended June 30, 2023, the Company recognized asset impairment expense of $194 million. See Note 15—Asset Impairment Expense included in Item 1.—Financial Statements of this Form 10-Q for further information. After recognizing this impairment expense, the carrying value of long-lived assets and current assets held-for-sale that were assessed for impairment totaled $620 million at June 30, 2023.

Events or changes in circumstances that may necessitate recoverability tests and potential impairments of long-lived assets may include, but are not limited to, adverse changes in the regulatory environment, unfavorable changes in power prices or fuel costs, increased competition due to additional capacity in the grid, technological advancements, declining trends in demand, evolving industry expectations to transition away from fossil fuel sources for generation, or an expectation it is more likely than not the asset will be disposed of before the end of its estimated useful life.

Environmental

The Company is subject to numerous environmental laws and regulations in the jurisdictions in which it operates. The Company faces certain risks and uncertainties related to these environmental laws and regulations, including existing and potential GHG legislation or regulations, and actual or potential laws and regulations pertaining to water discharges, waste management (including disposal of coal combustion residuals) and certain air emissions, such as SO2, NOx, particulate matter, mercury, and other hazardous air pollutants. Such risks and uncertainties could result in increased capital expenditures or other compliance costs which could have a material adverse effect on certain of our U.S. or international subsidiaries and our consolidated results of operations. For further information about these risks, see Item 1A.—Risk Factors—Our operations are subject to significant government regulation and could be adversely affected by changes in the law or regulatory schemes; Several of our businesses are subject to potentially significant remediation expenses, enforcement initiatives, private party lawsuits and reputational risk associated with CCR; Our businesses are subject to stringent environmental laws, rules and regulations; and Concerns about GHG emissions and the potential risks associated with climate change have led to increased regulation and other actions that could impact our businesses included in the 2022 Form 10-K.

CSAPR — CSAPR addresses the “good neighbor” provision of the CAA, which prohibits sources within each state from emitting any air pollutant in an amount which will contribute significantly to any other state’s nonattainment, or interference with maintenance of, any NAAQS. The CSAPR required significant reductions in SO2 and NOx emissions from power plants in many states in which subsidiaries of the Company operate. The Company is required to comply with the CSAPR in certain states, including Indiana and Maryland. The CSAPR is implemented, in part, through a market-based program under which compliance may be achievable through the acquisition and use of emissions allowances created by the EPA. The Company complies with CSAPR through operation of existing controls and purchases of allowances on the open market, as needed.

In October 2016, the EPA published a final rule to update the CSAPR to address the 2008 ozone NAAQS (“CSAPR Update Rule”). The CSAPR Update Rule found that NOx ozone season emissions in 22 states (including Indiana and Maryland) affected the ability of downwind states to attain and maintain the 2008 ozone NAAQS, and, accordingly, the EPA issued federal implementation plans that both updated existing CSAPR NOx ozone season emission budgets for electric generating units within these states and implemented these budgets through modifications to the CSAPR NOx ozone season allowance trading program. Implementation started in the 2017 ozone season (May-September 2017). Affected facilities receive fewer ozone season NOx allowances in 2017 and later, possibly resulting in the need to purchase additional allowances. Following legal challenges to the CSAPR Update Rule, on April 30, 2021, the EPA issued the Revised CSAPR Update Rule. The Revised CSAPR Update Rule required affected EGUs within certain states (including Indiana and Maryland) to participate in a new trading program, the CSAPR NOx Ozone Season Group 3 trading program. These affected EGUs received fewer NOx Ozone Season allowances beginning in 2021.

On June 5, 2023, the EPA published a final Federal Implementation Plan to address air quality impacts with

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respect to the 2015 Ozone NAAQS. The rule establishes a revised CSAPR NOx Ozone Season Group 3 trading program for 22 states, including Indiana and Maryland, and is expected to become effective during 2023. The FIP also includes enhancements to the revised Group 3 trading program, which include a dynamic budget setting process beginning in 2026, annual recalibration of the allowance bank to reflect changes to affected sources, a daily backstop emissions rate limit for certain coal-fired electric generating units beginning in 2024, and a secondary emissions limit prohibiting certain emissions associated with state assurance levels. It is too early to determine the impact of this final rule, but it may result in the need to purchase additional allowances or make operational adjustments.

While the Company's additional CSAPR compliance costs to date have been immaterial, the future availability of and cost to purchase allowances to meet the emission reduction requirements is uncertain at this time, but it could be material.

Mercury and Air Toxics Standard — In April 2012, the EPA’s rule to establish maximum achievable control technology standards for hazardous air pollutants regulated under the CAA emitted from coal and oil-fired electric utilities, known as “MATS”, became effective and AES facilities implemented measures to comply, as applicable. In June 2015, the U.S. Supreme Court remanded MATS to the D.C. Circuit due to the EPA’s failure to consider costs before deciding to regulate power plants under Section 112 of the CAA and subsequently remanded MATS to the EPA without vacatur. On May 22, 2020, the EPA published a final finding that it is not “appropriate and necessary” to regulate hazardous air pollutant emissions from coal- and oil-fired electric generating units (EGUs) (reversing its prior 2016 finding), but that the EPA would not remove the source category from the CAA Section 112(c) list of source categories and would not change the MATS requirements. On March 6, 2023, the EPA published a final rule to revoke its May 2020 finding and reaffirm its 2016 finding that it is appropriate and necessary to regulate these emissions. On April 24, 2023, the EPA published a proposed rule to lower certain emissions limits and revise certain other aspects of MATS. It is too early to determine the potential impacts of this proposal rule.

Further rulemakings and/or proceedings are possible; however, in the meantime, MATS remains in effect. We currently cannot predict the outcome of the regulatory or judicial process, or its impact, if any, on our MATS compliance planning or ultimate costs.

Climate Change Regulation — On July 8, 2019, the EPA published the final Affordable Clean Energy (“ACE”) Rule which would have established CO2 emission rules for existing power plants under CAA Section 111(d) and would have replaced the EPA's 2015 Clean Power Plan Rule (“CPP”). However, on January 19, 2021, the D.C. Circuit vacated and remanded the ACE Rule. Subsequently, on June 30, 2022, the Supreme Court reversed the judgment of the D.C. Circuit Court and remanded for further proceedings consistent with its opinion holding that the “generation shifting” approach in the CPP exceeded the authority granted to the EPA by Congress under Section 111(d) of the CAA. As a result of the June 30, 2022 Supreme Court decision, on October 27, 2022, the D.C. Circuit issued a partial mandate, holding pending challenges to the ACE Rule in abeyance while the EPA developed a replacement rule. On May 23, 2023, EPA published a proposed rule that would vacate the ACE Rule, establish emissions guidelines in the form of CO2 emissions limitations for certain existing electric generating units (EGUs) and would require states to develop State Plans that establish standards of performance for such EGUs that are at least as stringent as EPA’s emissions guidelines. Depending on various EGU-specific factors, the bases of proposed emissions guidelines range from routine methods of operation to carbon capture and sequestration or co-firing low-GHG hydrogen starting in the 2030s. We are still reviewing the proposed rule and the impact of the proposed rule, the results of further proceedings, and potential future greenhouse gas emissions regulations remain uncertain but could be material.

Waste Management — On October 19, 2015, an EPA rule regulating CCR under the Resource Conservation and Recovery Act as nonhazardous solid waste became effective. The rule established nationally applicable minimum criteria for the disposal of CCR in new and currently operating landfills and surface impoundments, including location restrictions, design and operating criteria, groundwater monitoring, corrective action and closure requirements, and post-closure care. The primary enforcement mechanisms under this regulation would be actions commenced by the states and private lawsuits. On December 16, 2016, the Water Infrastructure Improvements for the Nation Act ("WIN Act") was signed into law. This includes provisions to implement the CCR rule through a state permitting program, or if the state chooses not to participate, a possible federal permit program. If this rule is finalized before Indiana or Puerto Rico establishes a state-level CCR permit program, AES CCR units in those locations could eventually be required to apply for a federal CCR permit from the EPA. The EPA has indicated that it will implement a phased approach to amending the CCR Rule, which is ongoing. On August 28, 2020, the EPA published final amendments to the CCR Rule titled "A Holistic Approach to Closure Part A: Deadline to Initiate Closure," that, among other amendments, required certain CCR units to cease waste

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receipt and initiate closure by April 11, 2021. The CCR Part A Rule also allowed for extensions of the April 11, 2021 deadline if the EPA determines certain criteria are met. Facilities seeking such an extension were required to submit a demonstration to the EPA by November 30, 2020. On January 11, 2022, the EPA released the first in a series of proposed determinations regarding CCR Part A Rule demonstrations and compliance-related letters notifying certain other facilities of their compliance obligations under the federal CCR regulations. The determinations and letters include interpretations regarding implementation of the CCR Rule. On April 8, 2022, petitions for review were filed challenging these EPA actions. The petitions are consolidated in Electric Energy, Inc. v. EPA. It is too early to determine the direct or indirect impact of these letters or any determinations that may be made.

On May 18, 2023, EPA published a proposed rule that would expand the scope of CCR units regulated by the CCR Rule to include inactive surface impoundments at inactive generating facilities as well as additional inactive and closed landfills and certain other accumulations of CCR. We are still reviewing the proposal and it is too early to determine the potential impact.

The CCR rule, current or proposed amendments to or interpretations of the CCR rule, the results of groundwater monitoring data, or the outcome of CCR-related litigation could have a material impact on our business, financial condition, and results of operations. AES Indiana would seek recovery of any resulting expenditures; however, there is no guarantee we would be successful in this regard.

Water Discharges — In June 2015, the EPA and the U.S. Army Corps of Engineers ("the agencies") published a rule defining federal jurisdiction over waters of the U.S., known as the "Waters of the U.S." (WOTUS) rule. This rule, which initially became effective in August 2015, could expand or otherwise change the number and types of waters or features subject to CWA permitting. However, after repealing the 2015 WOTUS rule on October 22, 2019, the agencies, on April 21, 2020, issued the final “Navigable Waters Protection” (NWP) rule which again revised the definition of waters of the U.S. On August 30, 2021, the U.S. District Court for the District of Arizona issued an order vacating and remanding the NWP Rule. The agencies again interpreted waters of the U.S. consistent with the pre-2015 regulatory regime. On January 18, 2023, the agencies published a final rule to define the scope of waters regulated under the CWA. The rule restored regulations defining WOTUS that were in place prior to 2015, with updates intended to be consistent with relevant Supreme Court decisions. On April 12, 2023, the U.S. District Court for the District of North Dakota granted a motion which enjoined the agencies from implementing the 2023 final rule interpretation of the scope of waters of the U.S. resulting in the pre-2015 regulatory regime applying in a group of states.

The scope of waters of the U.S. has also been addressed by the Supreme Court. On January 24, 2022, the U.S. Supreme Court granted certiorari on a wetlands case (Sackett v. EPA) on the limited question of: “Whether the Ninth Circuit set forth the proper test for determining whether wetlands are ‘waters of the United States’ under the Clean Water Act.” The Ninth Circuit employed Justice Kennedy’s “significant nexus” test from the 2006 Rapanos v. United States decision; the plurality opinion in Rapanos required a water body to have a "continuous surface connection" with a water of the United States in order to be considered a wetland covered by the CWA. On May 25, 2023, U.S. Supreme Court issued a decision upholding the Rapanos “continuous surface connection” and rejected the “significant nexus” standard, and determined that only wetlands that have a continuous surface connection to a traditional interstate navigable water are included in the definition of WOTUS. The Agencies announced plans to issue a new WOTUS rule in light of the Sackett decision. It is too early to determine whether the outcome of litigation or current or future revisions to rules interpreting federal jurisdiction over WOTUS may have a material impact on our business, financial condition, or results of operations.

In November 2015, the EPA published its final ELG rule to reduce toxic pollutants discharged into waters of the U.S. by steam-electric power plants through technology applications. These effluent limitations for existing and new sources include dry handling of fly ash, closed-loop or dry handling of bottom ash, and more stringent effluent limitations for flue gas desulfurization wastewater. AES Indiana Petersburg has installed a dry bottom ash handling system in response to the CCR rule and wastewater treatment systems in response to the NPDES permits in advance of the ELG compliance date. Other U.S. businesses already include dry handling of fly ash and bottom ash and do not generate flue gas desulfurization wastewater. Following the 2019 U.S. Court of Appeals vacature and remand of portions of the 2015 ELG rule related to leachate and legacy water, on March 29, 2023, EPA published a proposed rule revising the 2020 Reconsideration Rule. The proposed rule would establish new best available technology economically achievable effluent limits for flue gas desulfurization wastewater, bottom ash treatment water, and combustion residual leachate. It is too early to determine whether any outcome of litigation or current or future revisions to the ELG rule might have a material impact on our business, financial condition, and results of operations.

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Capital Resources and Liquidity

Overview

As of June 30, 2023, the Company had unrestricted cash and cash equivalents of $1.3 billion, of which $35 million was held at the Parent Company and qualified holding companies. The Company had $713 million in short-term investments, held primarily at subsidiaries, and restricted cash and debt service reserves of $688 million. The Company also had non-recourse and recourse aggregate principal amounts of debt outstanding of $20.9 billion and $5.5 billion, respectively. Of the $2.4 billion of our current non-recourse debt, $2.3 billion was presented as such because it is due in the next twelve months and $175 million relates to debt considered in default. Defaults at AES Puerto Rico are covenant and payment defaults, for which forbearance and standstill agreements have been signed. See Item 2.—Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Trends and Uncertainties—Macroeconomic and Political—Puerto Rico for additional detail. All other defaults are not payment defaults but are instead technical defaults triggered by failure to comply with covenants or other requirements contained in the non-recourse debt documents. As of June 30, 2023, the Company also had $617 million outstanding related to supplier financing arrangements, which are classified as Accrued and other liabilities.

We expect current maturities of non-recourse debt, recourse debt, and amounts due under supplier financing arrangements to be repaid from net cash provided by operating activities of the subsidiary to which the liability relates, through opportunistic refinancing activity, or some combination thereof. We have $500 million in recourse debt which matures within the next twelve months, as well as amounts due under supplier financing arrangements, of which $447 million has a Parent Company guarantee. From time to time, we may elect to repurchase our outstanding debt through cash purchases, privately negotiated transactions, or otherwise when management believes that such securities are attractively priced. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, and other factors. The amounts involved in any such repurchases may be material.

We rely mainly on long-term debt obligations to fund our construction activities. We have, to the extent available at acceptable terms, utilized non-recourse debt to fund a significant portion of the capital expenditures and investments required to construct and acquire our electric power plants, distribution companies, and related assets. Our non-recourse financing is designed to limit cross-default risk to the Parent Company or other subsidiaries and affiliates. Our non-recourse long-term debt is a combination of fixed and variable interest rate instruments. Debt is typically denominated in the currency that matches the currency of the revenue expected to be generated from the benefiting project, thereby reducing currency risk. In certain cases, the currency is matched through the use of derivative instruments. The majority of our non-recourse debt is funded by international commercial banks, with debt capacity supplemented by multilaterals and local regional banks.

Given our long-term debt obligations, the Company is subject to interest rate risk on debt balances that accrue interest at variable rates. When possible, the Company will borrow funds at fixed interest rates or hedge its variable rate debt to fix its interest costs on such obligations. In addition, the Company has historically tried to maintain at least 70% of its consolidated long-term obligations at fixed interest rates, including fixing the interest rate through the use of interest rate swaps. These efforts apply to the notional amount of the swaps compared to the amount of related underlying debt. Presently, the Parent Company’s only material unhedged exposure to variable interest rate debt relates to $700 million in senior unsecured term loans. Additionally, commercial paper issuances are short term in nature and subject the Parent Company to interest rate risk at the time of refinancing the paper. On a consolidated basis, of the Company’s $26.7 billion of total gross debt outstanding as of June 30, 2023, approximately $6.5 billion bore interest at variable rates that were not subject to a derivative instrument which fixed the interest rate. Brazil holds $2.3 billion of our floating rate non-recourse exposure as variable rate instruments act as a natural hedge against inflation in Brazil.

In addition to utilizing non-recourse debt at a subsidiary level when available, the Parent Company provides a portion, or in certain instances all, of the remaining long-term financing or credit required to fund development, construction, or acquisition of a particular project. These investments have generally taken the form of equity investments or intercompany loans, which are subordinated to the project’s non-recourse loans. We generally obtain the funds for these investments from our cash flows from operations, proceeds from the sales of assets and/or the proceeds from our issuances of debt, common stock and other securities. Similarly, in certain of our businesses, the Parent Company may provide financial guarantees or other credit support for the benefit of counterparties who have entered into contracts for the purchase or sale of electricity, equipment, or other services with our subsidiaries or lenders. In such circumstances, if a business defaults on its payment or supply obligation, the Parent Company will be responsible for the business’ obligations up to the amount provided for in the relevant guarantee or other credit

60 | The AES Corporation | June 30, 2023 Form 10-Q

support. As of June 30, 2023, the Parent Company had provided outstanding financial and performance-related guarantees or other credit support commitments to or for the benefit of our businesses, which were limited by the terms of the agreements, of approximately $2.6 billion in aggregate (excluding those collateralized by letters of credit and other obligations discussed below).

Some counterparties may be unwilling to accept our general unsecured commitments to provide credit support. Accordingly, with respect to both new and existing commitments, the Parent Company may be required to provide some other form of assurance, such as a letter of credit, to backstop or replace our credit support. The Parent Company may not be able to provide adequate assurances to such counterparties. To the extent we are required and able to provide letters of credit or other collateral to such counterparties, this will reduce the amount of credit available to us to meet our other liquidity needs. As of June 30, 2023, we had $123 million in letters of credit under bilateral agreements, $100 million in letters of credit outstanding provided under our revolving credit facility, and $95 million in letters of credit outstanding provided under our unsecured credit facilities. These letters of credit operate to guarantee performance relating to certain project development and construction activities and business operations. During the quarter ended June 30, 2023, the Company paid letter of credit fees ranging from 1% to 3% per annum on the outstanding amounts.

We expect to continue to seek, where possible, non-recourse debt financing in connection with the assets or businesses that we or our affiliates may develop, construct, or acquire. However, depending on local and global market conditions and the unique characteristics of individual businesses, non-recourse debt may not be available on economically attractive terms or at all. If we decide not to provide any additional funding or credit support to a subsidiary project that is under construction or has near-term debt payment obligations and that subsidiary is unable to obtain additional non-recourse debt, such subsidiary may become insolvent, and we may lose our investment in that subsidiary. Additionally, if any of our subsidiaries lose a significant customer, the subsidiary may need to withdraw from a project or restructure the non-recourse debt financing. If we or the subsidiary choose not to proceed with a project or are unable to successfully complete a restructuring of the non-recourse debt, we may lose our investment in that subsidiary.

Many of our subsidiaries depend on timely and continued access to capital markets to manage their liquidity needs. The inability to raise capital on favorable terms, to refinance existing indebtedness, or to fund operations and other commitments during times of political or economic uncertainty may have material adverse effects on the financial condition and results of operations of those subsidiaries. In addition, changes in the timing of tariff increases or delays in the regulatory determinations under the relevant concessions could affect the cash flows and results of operations of our businesses.

Long-Term Receivables

As of June 30, 2023, the Company had approximately $296 million of gross accounts receivable classified as Other noncurrent assets. These noncurrent receivables mostly consist of accounts receivable in Chile that, pursuant to amended agreements or government resolutions, have collection periods that extend beyond June 30, 2024, or one year from the latest balance sheet date. Noncurrent receivables in Chile pertain primarily to revenues recognized on regulated energy contracts that were impacted by the Stabilization Funds created by the Chilean government. See Note 5—Financing Receivables in Item 1.—Financial Statements of this Form 10-Q and Item 7.—Management's Discussion and Analysis of Financial Condition and Results of Operation—Key Trends and Uncertainties—Macroeconomic and Political—Chile included in our 2022 Form 10-K for further information.

As of June 30, 2023, the Company had approximately $1.1 billion of loans receivable primarily related to a facility constructed under a build, operate, and transfer contract in Vietnam. This loan receivable represents contract consideration related to the construction of the facility, which was substantially completed in 2015, and will be collected over the 25-year term of the plant’s PPA. As of June 30, 2023, $102 million of the loan receivable balance was classified as Other current assets and $1 billion was classified as Loan receivable on the Condensed Consolidated Balance Sheets. See Note 13—Revenue in Item 1.—Financial Statements of this Form 10-Q for further information.

Cash Sources and Uses

The primary sources of cash for the Company in the six months ended June 30, 2023 were debt financings, cash flows from operating activities, purchases under supplier financing arrangements, and sales of short-term investments. The primary uses of cash in the six months ended June 30, 2023 were repayments of debt, capital expenditures, repayments of obligations under supplier financing arrangements, and purchases of short-term investments.

61 | The AES Corporation | June 30, 2023 Form 10-Q

The primary sources of cash for the Company in the six months ended June 30, 2022 were debt financings, cash flows from operating activities, and sales of short-term investments. The primary uses of cash in the six months ended June 30, 2022 were repayments of debt, capital expenditures, purchases of short-term investments, and acquisitions of noncontrolling interests.

A summary of cash-based activities are as follows (in millions):

	Six Months Ended June 30,
Cash Sources:	2023		2022
Borrowings under the revolving credit facilities and commercial paper program	$	16,716	$	3,100
Issuance of non-recourse debt	1,457		3,132
Issuance of recourse debt	1,400		—
Net cash provided by operating activities	1,187		865
Purchases under supplier financing arrangements	818		173
Sale of short-term investments	706		345
Sales to noncontrolling interests	189		229
Proceeds from the sale of business interests, net of cash and restricted cash sold	98		1
Other	21		88
Total Cash Sources	$	22,592	$	7,933
Cash Uses:
Repayments under the revolving credit facilities and commercial paper program	$	(15,809)	$	(2,269)
Capital expenditures	(3,396)		(1,659)
Repayments of non-recourse debt	(944)		(1,469)
Repayments of obligations under supplier financing arrangements	(862)		(134)
Purchase of short-term investments	(620)		(694)
Acquisitions of business interests, net of cash and restricted cash acquired	(290)		(107)
Dividends paid on AES common stock	(222)		(211)
Distributions to noncontrolling interests	(147)		(93)
Purchase of emissions allowances	(115)		(293)
Contributions and loans to equity affiliates	(112)		(169)
Acquisitions of noncontrolling interests	(1)		(540)
Other	(151)		(128)
Total Cash Uses	$	(22,669)	$	(7,766)
Net increase (decrease) in Cash, Cash Equivalents, and Restricted Cash	$	(77)	$	167

Consolidated Cash Flows

The following table reflects the changes in operating, investing, and financing cash flows for the comparative six month period (in millions):

	Six Months Ended June 30,
Cash flows provided by (used in):	2023		2022		$ Change
Operating activities	$	1,187	$	865	$	322
Investing activities	(3,750)		(2,583)		(1,167)
Financing activities	2,529		1,924		605

62 | The AES Corporation | June 30, 2023 Form 10-Q

Operating Activities

Net cash provided by operating activities increased $322 million for the six months ended June 30, 2023, compared to the six months ended June 30, 2022.

Operating Cash Flows

(in millions)

(1)The change in adjusted net income is defined as the variance in net income, net of the total adjustments to net income as shown on the Condensed Consolidated Statements of Cash Flows in Item 1—Financial Statements of this Form 10-Q.

(2)The change in working capital is defined as the variance in total changes in operating assets and liabilities as shown on the Condensed Consolidated Statements of Cash Flows in Item 1—Financial Statements of this Form 10-Q.

•Adjusted net income decreased $213 million primarily due to lower margins at our Utilities and Energy Infrastructure SBUs and increases in interest expense and income tax expense; partially offset by higher margin at our Renewables SBU and an increase in interest income.

•Working capital requirements decreased $535 million, primarily due to a decrease in accounts receivable resulting from higher collections, decreases in inventory and accounts payable due to lower inventory purchases, and a decrease in prepaid and other current assets driven by decreases in short-term regulatory assets and VAT receivable.

Investing Activities

Net cash used in investing activities increased $1.2 billion for the six months ended June 30, 2023, compared to the six months ended June 30, 2022.

Investing Cash Flows

(in millions)

•Acquisitions of business interests increased $183 million, primarily due to the acquisitions of Bellefield and Bolero Solar Park at AES Clean Energy and AES Andes, respectively, partially offset by the prior year acquisition of Agua Clara in the Dominican Republic.

•Cash used for short-term investing activities decreased $435 million, primarily as a result of higher short-term investment sales in 2023 to fund the capital expenditures of our renewable projects.

•Purchases of emissions allowances decreased $178 million, primarily in Bulgaria as a result of lower CO2 purchases due to lower production.

63 | The AES Corporation | June 30, 2023 Form 10-Q

•Proceeds from the sales of business interests increased $97 million due to the selldown of sPower OpCo B.

•Capital expenditures increased $1.7 billion, discussed further below.

Capital Expenditures

(in millions)

(1)Growth expenditures generally include expenditures related to development projects in construction, expenditures that increase capacity of a facility beyond the original design, and investments in general load growth or system modernization.

(2)Maintenance expenditures generally include expenditures that are necessary to maintain regular operations or net maximum capacity of a facility.

(3)Environmental expenditures generally include expenditures to comply with environmental laws and regulations, expenditures for safety programs and other expenditures to ensure a facility continues to operate in an environmentally responsible manner.

•Growth expenditures increased $1.6 billion, primarily driven by an increase in U.S. renewable projects.

•Maintenance expenditures increased $91 million, primarily due to higher transmission and distribution and renewable project investments at our Utilities SBU.

•Environmental expenditures increased $1 million, with no material drivers.

Financing Activities

Net cash provided by financing activities increased $605 million for the six months ended June 30, 2023, compared to the six months ended June 30, 2022.

Financing Cash Flows

(in millions)

See Notes 7—Debt and 11—Equity in Item 1—Financial Statements of this Form 10-Q for more information regarding significant debt and equity transactions.

•The $1.4 billion impact from recourse debt is primarily due to the issuance of senior notes due in 2028 by the Parent Company, and the issuance of a bridge loan, fully guaranteed by the Parent Company, at AES Clean Energy.

•The $539 million impact from acquisitions of noncontrolling interests is mainly due to the acquisition of an additional 32% ownership interest in AES Andes in 2022.

•The $330 million impact from non-recourse revolvers is primarily due to an increase in borrowings at our Renewables SBU to fund capital expenditures of renewable projects.

64 | The AES Corporation | June 30, 2023 Form 10-Q

•The $1.2 billion impact from non-recourse debt transactions is mainly due to higher net repayments at Corporate and lower net borrowings at the Energy Infrastructure SBU.

•The $254 million impact from the Parent Company revolver and commercial paper program is primarily due to higher net repayments in the current period.

•The $83 million impact from supplier financing arrangements is primarily due to higher net repayments at our Energy Infrastructure and Renewables SBUs.

Parent Company Liquidity

The following discussion is included as a useful measure of the liquidity available to The AES Corporation, or the Parent Company, given the non-recourse nature of most of our indebtedness. Parent Company Liquidity, as outlined below, is a non-GAAP measure and should not be construed as an alternative to Cash and cash equivalents, which is determined in accordance with GAAP. Parent Company Liquidity may differ from similarly titled measures used by other companies. The principal sources of liquidity at the Parent Company level are dividends and other distributions from our subsidiaries, including refinancing proceeds, proceeds from debt and equity financings at the Parent Company level, including availability under our revolving credit facility and commercial paper program, and proceeds from asset sales. Cash requirements at the Parent Company level are primarily to fund interest and principal repayments of debt, construction commitments, other equity commitments, acquisitions, taxes, Parent Company overhead and development costs, and dividends on common stock.

The Company defines Parent Company Liquidity as cash available to the Parent Company, including cash at qualified holding companies, plus available borrowings under our existing credit facility and commercial paper program. The cash held at qualified holding companies represents cash sent to subsidiaries of the Company domiciled outside of the U.S. Such subsidiaries have no contractual restrictions on their ability to send cash to the Parent Company. Parent Company Liquidity is reconciled to its most directly comparable GAAP financial measure, Cash and cash equivalents, at the periods indicated as follows (in millions):

	June 30, 2023		December 31, 2022
Consolidated cash and cash equivalents	$	1,322	$	1,374
Less: Cash and cash equivalents at subsidiaries	(1,287)		(1,350)
Parent Company and qualified holding companies’ cash and cash equivalents	35		24
Commitments under the Parent Company credit facility	1,500		1,500
Less: Letters of credit under the credit facility	(100)		(34)
Less: Borrowings under the credit facility	—		(325)
Less: Borrowings under the commercial paper program	(517)		—
Borrowings available under the Parent Company credit facility	883		1,141
Total Parent Company Liquidity	$	918	$	1,165

The Company utilizes its Parent Company credit facility and commercial paper program for short term cash needs to bridge the timing of distributions from its subsidiaries throughout the year.

The Parent Company paid dividends of $0.1659 per outstanding share to its common stockholders during the first and second quarters of 2023 for dividends declared in December 2022 and February 2023, respectively. While we intend to continue payment of dividends, and believe we will have sufficient liquidity to do so, we can provide no assurance that we will continue to pay dividends, or if continued, the amount of such dividends.

Recourse Debt

Our total recourse debt was $5.5 billion and $3.9 billion as of June 30, 2023 and December 31, 2022, respectively. See Note 7—Debt in Item 1.—Financial Statements of this Form 10-Q and Note 11—Debt in Item 8.—Financial Statements and Supplementary Data of our 2022 Form 10-K for additional detail.

We believe that our sources of liquidity will be adequate to meet our needs for the foreseeable future. This belief is based on a number of material assumptions, including, without limitation, assumptions about our ability to access the capital markets, the operating and financial performance of our subsidiaries, currency exchange rates, power market pool prices, and the ability of our subsidiaries to pay dividends. In addition, our subsidiaries’ ability to declare and pay cash dividends to us (at the Parent Company level) is subject to certain limitations contained in loans, governmental provisions and other agreements. We can provide no assurance that these sources will be available when needed or that the actual cash requirements will not be greater than anticipated. We have met our interim needs for shorter-term and working capital financing at the Parent Company level with our revolving credit facility and commercial paper program. See Item 1A.—Risk Factors—The AES Corporation’s ability to make payments on its outstanding indebtedness is dependent upon the receipt of funds from our subsidiaries of the Company’s 2022 Form 10-K for additional information.

65 | The AES Corporation | June 30, 2023 Form 10-Q

Various debt instruments at the Parent Company level, including our revolving credit facility and commercial paper program, contain certain restrictive covenants. The covenants provide for, among other items, limitations on other indebtedness, liens, investments and guarantees; limitations on dividends, stock repurchases and other equity transactions; restrictions and limitations on mergers and acquisitions, sales of assets, leases, transactions with affiliates and off-balance sheet and derivative arrangements; maintenance of certain financial ratios; and financial and other reporting requirements. As of June 30, 2023, we were in compliance with these covenants at the Parent Company level.

Non-Recourse Debt

While the lenders under our non-recourse debt financings generally do not have direct recourse to the Parent Company, defaults thereunder can still have important consequences for our results of operations and liquidity, including, without limitation:

•reducing our cash flows as the subsidiary will typically be prohibited from distributing cash to the Parent Company during the time period of any default;

•triggering our obligation to make payments under any financial guarantee, letter of credit, or other credit support we have provided to or on behalf of such subsidiary;

•causing us to record a loss in the event the lender forecloses on the assets; and

•triggering defaults in our outstanding debt at the Parent Company.

For example, our revolving credit facility and outstanding debt securities at the Parent Company include events of default for certain bankruptcy-related events involving material subsidiaries. In addition, our revolving credit agreement at the Parent Company includes events of default related to payment defaults and accelerations of outstanding debt of material subsidiaries.

Some of our subsidiaries are currently in default with respect to all or a portion of their outstanding indebtedness. The total non-recourse debt classified as current in the accompanying Condensed Consolidated Balance Sheets amounts to $2.4 billion. The portion of current debt related to such defaults was $175 million at June 30, 2023, all of which was non-recourse debt related to three subsidiaries — AES Puerto Rico, AES Ilumina, and AES Jordan Solar. Defaults at AES Puerto Rico are covenant and payment defaults, for which forbearance and standstill agreements have been signed. All other defaults are not payment defaults, but are instead technical defaults triggered by failure to comply with other covenants or other conditions contained in the non-recourse debt documents. See Note 7—Debt in Item 1.—Financial Statements of this Form 10-Q for additional detail.

None of the subsidiaries that are currently in default are subsidiaries that met the applicable definition of materiality under the Parent Company’s debt agreements as of June 30, 2023, in order for such defaults to trigger an event of default or permit acceleration under the Parent Company’s indebtedness. However, as a result of additional dispositions of assets, other significant reductions in asset carrying values or other matters in the future that may impact our financial position and results of operations or the financial position of the individual subsidiary, it is possible that one or more of these subsidiaries could fall within the definition of a “material subsidiary” and thereby trigger an event of default and possible acceleration of the indebtedness under the Parent Company’s outstanding debt securities. A material subsidiary is defined in the Parent Company’s revolving credit facility as any business that contributed 20% or more of the Parent Company’s total cash distributions from businesses for the four most recently ended fiscal quarters. As of June 30, 2023, none of the defaults listed above, individually or in the aggregate, results in or is at risk of triggering a cross-default under the recourse debt of the Parent Company.

Critical Accounting Policies and Estimates

The condensed consolidated financial statements of AES are prepared in conformity with U.S. GAAP, which requires the use of estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the periods presented.

The Company’s significant accounting policies are described in Note 1 — General and Summary of Significant Accounting Policies of our 2022 Form 10-K. The Company’s critical accounting estimates are described in Item 7.—Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2022 Form 10-K. An accounting estimate is considered critical if the estimate requires management to make an assumption about matters that were highly uncertain at the time the estimate was made, different estimates reasonably could have been used, or if changes in the estimate that would have a material impact on the Company’s financial condition or results of operations are reasonably likely to occur from period to period. Management believes that the accounting

66 | The AES Corporation | June 30, 2023 Form 10-Q

estimates employed are appropriate and resulting balances are reasonable; however, actual results could differ from the original estimates, requiring adjustments to these balances in future periods. The Company has reviewed and determined that these remain as critical accounting policies as of and for the six months ended June 30, 2023.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Overview Regarding Market Risks

Our businesses are exposed to and proactively manage market risk. Our primary market risk exposure is to the price of commodities, particularly electricity, oil, natural gas, coal, and environmental credits. In addition, our businesses are exposed to lower electricity price trends due to increased competition, including from renewable sources such as wind and solar, as a result of lower costs of entry and lower variable costs. We operate in multiple countries and as such, are subject to volatility in exchange rates at varying degrees at the subsidiary level and between our functional currency, the USD, and currencies of the countries in which we operate. We are also exposed to interest rate fluctuations due to our issuance of debt and related financial instruments.

The disclosures presented in this Item 3 are based upon a number of assumptions; actual effects may differ. The safe harbor provided in Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act shall apply to the disclosures contained in this Item 3. For further information regarding market risk, see Item 1A.—Risk Factors, Fluctuations in currency exchange rates may impact our financial results and position; Wholesale power prices may experience significant volatility in our markets which could impact our operations and opportunities for future growth; We may not be adequately hedged against our exposure to changes in commodity prices or interest rates; and Certain of our businesses are sensitive to variations in weather and hydrology of the 2022 Form 10-K.

Commodity Price Risk

Although we prefer to hedge our exposure to the impact of market fluctuations in the price of electricity, fuels, and environmental credits, some of our generation businesses operate under short-term sales, have contracted electricity obligations greater than supply, or operate under contract sales that leave an unhedged exposure on some of our capacity or through imperfect fuel pass-throughs. These businesses subject our operational results to the volatility of prices for electricity, fuels, and environmental credits in competitive markets. We employ risk management strategies to hedge our financial performance against the effects of fluctuations in energy commodity prices. The implementation of these strategies can involve the use of physical and financial commodity contracts, futures, swaps, and options.

The portion of our sales and purchases that are not subject to such agreements, or contracted businesses where indexation is not perfectly matched to business drivers, will be exposed to commodity price risk. When hedging the output of our generation assets, we utilize contract sales that lock in the spread per MWh between variable costs and the price at which the electricity can be sold.

AES businesses will see changes in variable margin performance as global commodity prices shift. As of June 30, 2023, we project pre-tax earnings exposure on a 10% (uncorrelated) increase in commodity prices to be less than a $5 million gain for power, gas and coal and a less than $5 million loss for oil. Our estimates exclude correlation of oil with coal or natural gas. For example, a decline in oil or natural gas prices can be accompanied by a decline in coal price if commodity prices are correlated. In aggregate, the Company’s uncontracted downside exposure occurs with lower power, lower oil, higher natural gas, and higher coal prices. Exposures at individual businesses will change as new contracts or financial hedges are executed, and our sensitivity to changes in commodity prices generally increases in later years with reduced hedge levels at some of our businesses.

Commodity prices affect our businesses differently depending on contract terms, the local market characteristics and risk management strategies. Spot power prices, contract indexation provisions, and generation costs can be directly or indirectly affected by movements in the price of natural gas, oil, and coal. We have some natural offsets across our businesses such that low commodity prices may benefit certain businesses and be a cost to others. Exposures are not perfectly linear or symmetric. The sensitivities are affected by a number of local or indirect market factors. Examples of these factors include hydrology, local energy market supply/demand balances, regional fuel supply issues, regional competition, bidding strategies, and regulatory interventions such as price caps. Operational flexibility changes the shape of our sensitivities. For instance, certain power plants may limit downside exposure by reducing dispatch in low market environments. Volume variation also affects our commodity exposure. The volume sold under contracts or retail concessions can vary based on weather and economic conditions, resulting in a higher or lower volume of sales in spot markets. Thermal unit availability and hydrology can affect the generation output available for sale and can affect the marginal unit setting power prices.

67 | The AES Corporation | June 30, 2023 Form 10-Q

In the Energy Infrastructure SBU, the generation businesses are largely contracted, but may have residual risk to the extent contracts are not perfectly indexed to the business drivers. At Southland, our existing once-through cooling generation units (“Legacy Assets”) in California are permitted to operate through the end of 2023. These assets have contracts in capacity and have seen incremental value in energy revenues through 2023 and signed agreements in April to extend operations for select units through 2026 subject to further state level approvals expected later this year.

The AES Andes business in Chile owns assets in the central and northern regions of the country and has a portfolio of contract sales in both. A significant portion of our PPAs include mechanisms of indexation that adjust the price of energy based on fluctuations in the price of coal, with the specific indices and timing varying by contract, in order to mitigate from certain changes in the price of fuel. In the Dominican Republic, we own natural gas plants contracted under a portfolio of contract sales, and both contract and spot prices may move with commodity prices. Additionally, the contract levels do not always match our generation availability and our assets may be sellers of spot prices in excess of contract levels or a net buyer in the spot market to satisfy contract obligations. Our assets operating in Vietnam and Bulgaria have minimal exposure to commodity price risk as they have no or minor merchant exposure and fuel is subject to a pass-through mechanism.

In the Renewables SBU, our businesses have commodity exposure on unhedged volumes and resource volatility. In Colombia, we operate under a shorter-term sales strategy with spot market exposure for uncontracted volumes. Because we own hydroelectric assets there, contracts are not indexed to fuel. In Brazil, the hydroelectric and other renewable generating facilities are covered by contract sales. Under normal hydrological volatility, spot price risk is mitigated through a regulated sharing mechanism across all hydroelectric generators in the country. Under drier conditions, the sharing mechanism may not be sufficient to cover the business' contract position, and therefore it may have to purchase power at spot prices driven by the cost of thermal generation. Our Renewables businesses in Panama are highly contracted under financial and load-following PPA type structures, exposing the business to hydrology-based variance. To the extent hydrological inflows are greater than or less than the contract volumes, the business will be sensitive to changes in spot power prices which may be driven by oil and natural gas prices in some time periods.

Foreign Exchange Rate Risk

In the normal course of business, we are exposed to foreign currency risk and other foreign operations risks that arise from investments in foreign subsidiaries and affiliates. A key component of these risks stems from the fact that some of our foreign subsidiaries and affiliates utilize currencies other than our consolidated reporting currency, the USD. Additionally, certain of our foreign subsidiaries and affiliates have entered into monetary obligations in USD or currencies other than their own functional currencies. Certain of our foreign subsidiaries calculate and pay taxes in currencies other than their own functional currency. We have varying degrees of exposure to changes in the exchange rate between the USD and the following currencies: Argentine peso, Brazilian real, Chilean peso, Colombian peso, Dominican peso, Euro, and Mexican peso. Our exposure to certain of these currencies may be material and economic mechanisms to hedge certain of these risks may not always be available. These subsidiaries and affiliates have attempted to limit potential foreign exchange exposure by entering into revenue contracts that adjust to changes in foreign exchange rates. We also use foreign currency forwards, swaps, and options, where possible, to manage our risk related to certain foreign currency fluctuations.

AES enters into foreign currency hedges to protect economic value of the business and minimize the impact of foreign exchange rate fluctuations to AES’ portfolio. While protecting cash flows, the hedging strategy is also designed to reduce forward-looking earnings foreign exchange volatility. Due to variation of timing and amount between cash distributions and earnings exposure, the hedge impact may not fully cover the earnings exposure on a realized basis, which could result in greater volatility in earnings.

AES has unhedged forward-looking earnings foreign exchange deterioration risk from the Argentina peso that could be material. Additionally, as of June 30, 2023, assuming a 10% USD appreciation, cash distributions attributable to foreign subsidiaries in the Euro may be exposed to exchange rate movement of less than a $5 million loss. These numbers have been produced by applying a one-time 10% USD appreciation to forecasted exposed cash distributions for 2023 coming from the respective subsidiaries exposed to the currencies listed above, net of the impact of outstanding hedges and holding all other variables constant. The numbers presented above are net of any transactional gains or losses. These sensitivities may change in the future as new hedges are executed or existing hedges are unwound. Additionally, updates to the forecasted cash distributions exposed to foreign exchange risk may result in further modification. The sensitivities presented do not capture the impacts of any administrative market restrictions or currency in convertibility.

68 | The AES Corporation | June 30, 2023 Form 10-Q

Interest Rate Risks

We are exposed to risk resulting from changes in interest rates as a result of our issuance of variable and fixed-rate debt, as well as interest rate swap, cap, floor, and option agreements.

Decisions on the fixed-floating debt mix are made to be consistent with the risk factors faced by individual businesses or plants. Depending on whether a plant’s capacity payments or revenue stream is fixed or varies with inflation, we partially hedge against interest rate fluctuations by arranging fixed-rate or variable-rate financing. In certain cases, particularly for non-recourse financing, we execute interest rate swap, cap, and floor agreements to effectively fix or limit the interest rate exposure on the underlying financing. Most of our interest rate risk is related to non-recourse financings at our businesses.

As of June 30, 2023, the portfolio’s pre-tax earnings exposure to a one-time 100-basis-point increase in interest rates for our Argentine peso, Brazilian real, Chilean peso, Colombian peso, Euro, and USD denominated debt would be approximately $25 million on interest expense for the debt denominated in these currencies. These amounts do not take into account the historical correlation between these interest rates.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company, under the supervision and with the participation of its management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), evaluated the effectiveness of its “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our CEO and CFO have concluded that our disclosure controls and procedures were effective as of June 30, 2023, to ensure that information required to be disclosed by the Company in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Controls over Financial Reporting

There were no changes that occurred during the fiscal quarter covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

69 | The AES Corporation | June 30, 2023 Form 10-Q

PART II: OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is involved in certain claims, suits and legal proceedings in the normal course of business. The Company has accrued for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company believes, based upon information it currently possesses and taking into account established reserves for estimated liabilities and its insurance coverage, that the ultimate outcome of these proceedings and actions is unlikely to have a material adverse effect on the Company's condensed consolidated financial statements. It is reasonably possible, however, that some matters could be decided unfavorably to the Company and could require the Company to pay damages or make expenditures in amounts that could be material, but cannot be estimated as of June 30, 2023. Pursuant to SEC amendments Item 103 of SEC Regulation S-K, AES’ policy is to disclose environmental legal proceedings to which a governmental authority is a party if such proceedings are reasonably expected to result in monetary sanctions of greater than or equal to $1 million.

In December 2001, Grid Corporation of Odisha (“GRIDCO”) served a notice to arbitrate pursuant to the Indian Arbitration and Conciliation Act of 1996 on the Company, AES Orissa Distribution Private Limited (“AES ODPL”), and Jyoti Structures (“Jyoti”) pursuant to the terms of the shareholders agreement between GRIDCO, the Company, AES ODPL, Jyoti and the Central Electricity Supply Company of Orissa Ltd. (“CESCO”), an affiliate of the Company. In the arbitration, GRIDCO asserted that a comfort letter issued by the Company in connection with the Company's indirect investment in CESCO obligates the Company to provide additional financial support to cover all of CESCO's financial obligations to GRIDCO. GRIDCO appeared to be seeking approximately $189 million in damages, plus undisclosed penalties and interest, but a detailed alleged damage analysis was not filed by GRIDCO. The Company counterclaimed against GRIDCO for damages. In June 2007, a 2-to-1 majority of the arbitral tribunal rendered its award rejecting GRIDCO's claims and holding that none of the respondents, the Company, AES ODPL, or Jyoti, had any liability to GRIDCO. The respondents' counterclaims were also rejected. A majority of the tribunal later awarded the respondents, including the Company, some of their costs relating to the arbitration. GRIDCO filed challenges of the tribunal's awards with the local Indian court. GRIDCO's challenge of the costs award has been dismissed by the court, but its challenge of the liability award remains pending. A hearing on the liability award has not taken place to date. The Company believes that it has meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts.

Pursuant to their environmental audit, AES Sul and AES Florestal discovered 200 barrels of solid creosote waste and other contaminants at a pole factory that AES Florestal had been operating. The conclusion of the audit was that a prior operator of the pole factory, Companhia Estadual de Energia (“CEEE”), had been using those contaminants to treat the poles that were manufactured at the factory. On their initiative, AES Sul and AES Florestal communicated with Brazilian authorities and CEEE about the adoption of containment and remediation measures. In March 2008, the State Attorney of the state of Rio Grande do Sul, Brazil filed a public civil action against AES Sul, AES Florestal and CEEE seeking an order requiring the companies to mitigate the contaminated area located on the grounds of the pole factory and an indemnity payment of approximately R$6 million ($1 million). In October 2011, the State Attorney filed a request for an injunction ordering the defendant companies to contain and remove the contamination immediately. The court granted injunctive relief on October 18, 2011, but determined that only CEEE was required to perform the removal work. In May 2012, CEEE began the removal work in compliance with the injunction. The case is now awaiting judgment. The removal and remediation costs are estimated to be approximately R$15 million to R$60 million ($3 million to $12 million), and there could be additional costs which cannot be estimated at this time. In June 2016, the Company sold AES Sul to CPFL Energia S.A. and as part of the sale, AES Guaiba, a holding company of AES Sul, retained the potential liability relating to this matter. The Company believes that there are meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts.

In September 2015, AES Southland Development, LLC and AES Redondo Beach, LLC filed a lawsuit against the California Coastal Commission (the “CCC”) over the CCC's determination that the site of AES Redondo Beach included approximately 5.93 acres of CCC-jurisdictional wetlands. The CCC has asserted that AES Redondo Beach has improperly installed and operated water pumps affecting the alleged wetlands in violation of the California Coastal Act and Redondo Beach Local Coastal Program. Potential outcomes of the CCC determination could include an order requiring AES Redondo Beach to perform a restoration and/or pay fines or penalties. AES Redondo Beach believes that it has meritorious arguments concerning the underlying CCC determination, but there can be no assurances that it will be successful. On March 27, 2020, AES Redondo Beach, LLC sold the site to an unaffiliated third-party purchaser that assumed the obligations contained within these proceedings. On May 26, 2020, CCC staff sent AES a NOV directing AES to submit a Coastal Development Permit (“CDP”) application for the

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removal of the water pumps within the alleged wetlands. AES has submitted the CDP to the permitting authority, the City of Redondo Beach (“the City”), with respect to AES’ plans to disable or remove the pumps. The NOV also directed AES to submit technical analysis regarding additional water pumps located within onsite electrical vaults and a CDP application for their continued operation. AES has responded to the CCC, providing the requested analysis and seeking further discussion with the agency regarding the CDP. On October 14, 2020, the City deemed the CDP application to be complete and indicated a public hearing will be required, at which time AES must present additional information and analysis on the pumps within the alleged wetlands and the onsite electrical vaults.

In October 2015, AES Indiana received an NOV alleging violations of the Clean Air Act (“CAA”), the Indiana State Implementation Plan (“SIP”), and the Title V operating permit related to alleged particulate and opacity violations at Petersburg Station Unit 3. In addition, in February 2016, AES Indiana received an NOV from the EPA alleging violations of New Source Review and other CAA regulations, the Indiana SIP, and the Title V operating permit at Petersburg Station. On August 31, 2020, AES Indiana reached a settlement with the EPA, the DOJ and the Indiana Department of Environmental Management (“IDEM”), resolving these purported violations of the CAA at Petersburg Station. The settlement agreement, in the form of a proposed judicial consent decree, was approved and entered by the U.S. District Court for the Southern District of Indiana on March 23, 2021, and includes, among other items, the following requirements: annual caps on NOx and SO2 emissions and more stringent emissions limits than AES Indiana's current Title V air permit; payment of civil penalties totaling $1.5 million; a $5 million environmental mitigation project consisting of the construction and operation of a new, non-emitting source of generation at the site; expenditure of $0.3 million on a state-only environmentally beneficial project to preserve local, ecologically-significant lands; and retirement of Units 1 and 2 prior to July 1, 2023.

In December 2018, a lawsuit was filed in Dominican Republic civil court against the Company, AES Puerto Rico, and three other AES affiliates. The lawsuit purports to be brought on behalf of over 100 Dominican claimants, living and deceased, and appears to seek relief relating to CCRs that were delivered to the Dominican Republic in 2004. The lawsuit generally alleges that the CCRs caused personal injuries and deaths and demands $476 million in alleged damages. The lawsuit does not identify, or provide any supporting information concerning, the alleged injuries of the claimants individually. Nor does the lawsuit provide any information supporting the demand for damages or explaining how the quantum was derived. The relevant AES companies believe that they have meritorious defenses to the claims asserted against them and will defend themselves vigorously in this proceeding; however, there can be no assurances that they will be successful in their efforts.

In February 2019, a separate lawsuit was filed in Dominican Republic civil court against the Company, AES Puerto Rico, two other AES affiliates, and an unaffiliated company and its principal. The lawsuit purports to be brought on behalf of over 200 Dominican claimants, living and deceased, and appears to seek relief relating to CCRs that were delivered to the Dominican Republic in 2003 and 2004. The lawsuit generally alleges that the CCRs caused personal injuries and deaths and demands over $900 million in alleged damages. The lawsuit does not identify or provide any supporting information concerning the alleged injuries of the claimants individually, nor does the lawsuit provide any information supporting the demand for damages or explaining how the quantum was derived. In August 2020, at the request of the relevant AES companies, the case was transferred to a different civil court (“Civil Court”). Preliminary hearings have taken place. The parties are awaiting the Civil Court’s ruling on the AES respondents’ motions to dismiss the lawsuit. The relevant AES companies believe that they have meritorious defenses to the claims asserted against them and will defend themselves vigorously in this proceeding; however, there can be no assurances that they will be successful in their efforts.

In October 2019, the Superintendency of the Environment (the "SMA") notified AES Andes of certain alleged breaches associated with the environmental permit of the Ventanas Complex, initiating a sanctioning process through Exempt Resolution N° 1 / ROL D-129-2019. The alleged charges include exceeding generation limits, failing to reduce emissions during episodes of poor air quality, exceeding limits on discharges to the sea, and exceeding noise limits. AES Andes has submitted a proposed “Compliance Program” to the SMA for the Ventanas Complex. The latest version of this Compliance Program was submitted on May 26, 2021. On December 30, 2021, the Compliance Program was approved by the SMA. However an ex officio action was brought by the SMA due to alleged exceedances of generation limits, which would require the Company to reduce SO2, NOx and PM emissions in order to achieve the emissions offset established in the Compliance Program. On January 6, 2022, AES Andes filed a reposition with the SMA seeking modification of the means for compliance with the ex officio action. On January 17, 2023, the SMA approved street paving measures, or alternatively a program providing heaters for community members, as the means to satisfy the air emissions offsets in the approved Compliance Plan. The cost of proposed Compliance Program is approximately $10.8 million USD. On April 21, 2023, the SMA notified AES Andes of a resolution alleging an additional “serious” non-compliance of the Ventanas Complex failing to reduce emissions during episodes of poor air quality. On May 24, 2023, AES Andes submitted disclaimers to the SMA in response to this resolution. AES Andes plans to vigorously defend itself through the administrative process,

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but there are no guarantees that it will be successful. Fines are possible if AES Andes is unsuccessful in its defense of the April 2023 resolution and/or if the SMA determines there is an unsatisfactory execution of the Compliance Program approved in connection with the October 2019 sanctioning process.

In March 2020, Mexico’s Comisión Federal de Electricidad (“CFE”) served an arbitration demand upon AES Mérida III. CFE makes allegations that AES Mérida III is in breach of its obligations under a power and capacity purchase agreement (“Contract”) between the two parties, which allegations related to CFE’s own failure to provide fuel within the specifications of the Contract. CFE seeks to recover approximately $200 million in payments made to AES Mérida under the Contract as well as approximately $480 million in alleged damages for having to acquire power from alternative sources in the Yucatan Peninsula. AES Mérida has filed an answer denying liability to CFE and asserting a counterclaim for damages due to CFE’s breach of its obligations. The parties submitted their respective initial briefs and supporting evidence in December 2020. After additional briefing, the evidentiary hearing took place in November 2021. Closing arguments were heard in May 2022. In November 2022, the arbitration Tribunal issued is decision in the case, rejecting CFE’s claims for damages and granting AES Mérida a net amount of damages on AES Mérida’s counterclaims (“Award”). There are ongoing proceedings in the Mexican courts concerning AES Mérida’s attempt to enforce the Award and CFE’s attempt to challenge the Award. AES Mérida believes that it has meritorious defenses and claims and will assert them vigorously in this dispute; however, there can be no assurances that it will be successful in its efforts.

On May 12, 2021, the Mexican Federal Attorney for Environmental Protection (the “Authority”) initiated an environmental audit at the Termoelectrica del Peñoles (“TEP”) thermal generating facility. On January 20, 2023 TEP was notified of the resolution issued by the Authority, which alleges breaches of air emission regulations, including the failure to submit reports. The resolution imposes a fine of $27,615,140 pesos (approximately USD $1.6 million). On March 3, 2023, the facility filed a nullity judgment to challenge such resolution. Because such nullity judgment has not yet been admitted, TEP filed an amparo action, which was admitted on March 28, 2023. The judicial authority has not yet ruled on the amparo action. The Company believes that it has meritorious defenses to the claims asserted against it and will defend itself vigorously in these proceedings; however, there can be no assurances that it will be successful in its efforts.

In February 2022, a lawsuit was filed in Dominican Republic civil court against the Company. The lawsuit purports to be brought on behalf of over 425 Dominican claimants, living and deceased, and appears to seek relief relating to CCRs that were delivered to the Dominican Republic in 2003 and 2004. The lawsuit generally alleges that the CCRs caused personal injuries and deaths and demands over $600 million in alleged damages. The lawsuit does not identify or provide any supporting information concerning the alleged injuries of the claimants individually. Nor does the lawsuit provide any information supporting the demand for damages or explaining how the quantum was derived. The Company believes that it has meritorious defenses to the claims asserted against it and will defend itself vigorously in this proceeding; however, there can be no assurances that it will be successful in its efforts.

On July 25, 2022, AES Puerto Rico, LP (“AES-PR”) received from the EPA an NOV alleging certain violations of the CAA at AES-PR’s coal-fired power facility in Guayama, Puerto Rico. The NOV alleges AES-PR exceeded an emission limit and did not continuously operate certain monitoring equipment, conduct certain analyses and testing, maintain complete records, and submit certain reports as required by the EPA’s Mercury and Air Toxics Standards. The NOV further alleges AES-PR did not comply fully with the facility’s Title V operating permit. AES-PR is engaging in discussions with the EPA about the NOV. AES-PR will defend its interests, but we cannot predict the outcome of this matter at this time. However, settlements and litigated outcomes of CAA claims alleged against other coal-fired power plants have required companies to pay civil penalties and undertake remedial measures.

In April 2022, the Superintendency of the Environment (the "SMA") notified AES Andes of certain alleged breaches associated with the construction of the Mesamávida wind project, initiating a sanctioning process. The alleged charges include untimely implementation of road improvement measures and road use schedules and the failure to identify all noise receptors closest to the first construction phases of the project. On June 23, 2022, the SMA addressed the charges to Energía Eólica Mesamávida SpA. On June 28, 2022, Energía Eólica Mesamávida SpA submitted a proposed compliance program, with an estimated cost of $4.3 million, which was subsequently approved by the SMA. On November 9, 2022, opponents to the project submitted before the Third Environmental Court a judicial action challenging the approval of this compliance program. On March 7, 2023, the Third Environmental Court rejected the third-party judicial action against the Compliance Program. The deadline to appeal the decision has passed and no appeals were submitted. If the SMA determines there is an unsatisfactory execution of the compliance program, fines are possible.

On January 26, 2023, the SMA notified Alto Maipo SpA of four alleged charges relating to the Alto Maipo facility, all which are categorized by the SMA as “serious.” The alleged charges include untimely completion of

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intake works and insufficient capture by the provisional works, irrigation water outlet and canal contemplated by an agreement with local communities; non-compliance with the details of the forest management plans and intervention in unauthorized areas; construction of a road in a restricted paleontological area; and unlawful moving of fauna. On February 16, 2023, the Alto Maipo project submitted a compliance program, to which the SMA provided observations. On June 6, 2023, Alto Maipo responded to the SMA’s observations by submitting a revised compliance program, which is currently under consideration by the SMA. In late June and early July 2023, third-party opponents submitted observations to the compliance program, claiming that the proposal to address the intake works charges is inadequate. The costs of any such compliance program are uncertain. If a compliance program is not approved by or executed to the satisfaction of the SMA, fines, revocation of the facility’s RCA environmental permit approved by the SMA, or closure are possible outcomes for such alleged serious violations under applicable regulations.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed in Item 1A.—Risk Factors of our 2022 Form 10-K. Additional risks and uncertainties also may adversely affect our business and operations, including those discussed in Item 2.—Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The Board has authorized the Company to repurchase stock through a variety of methods, including open market repurchases, purchases by contract (including, without limitation, accelerated stock repurchase programs or 10b5-1 plans), and/or privately negotiated transactions. There can be no assurances as to the amount, timing, or prices of repurchases, which may vary based on market conditions and other factors. The Program does not have an expiration date and can be modified or terminated by the Board of Directors at any time. As of June 30, 2023, $264 million remained available for repurchase under the Program. No repurchases were made by The AES Corporation of its common stock during the second quarter of 2023.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Trading Arrangements

None of the Company’s directors or “officers,” as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K, during the Company’s fiscal quarter ended June 30, 2023.

Amended and Restated By-Laws

On August 1, 2023, the Company’s Board of Directors (the “Board”) approved the Amended and Restated By-Laws, effective as of such date (the “Amended and Restated By-Laws”). The Amended and Restated By-Laws include certain changes to the procedures by which stockholders may recommend nominees to the Board, among other updates, including to:

•implement certain revisions to conform to recent amendments to the Delaware General Corporation Law (the “DGCL”), including (i) giving the Company the ability to provide the details for an adjourned meeting in any manner permitted by the DGCL and (ii) eliminating the requirement that the Company make a stockholder list available during a meeting of stockholders;

•address matters relating to Rule 14a-19 (the “Universal Proxy Rule”) under the Exchange Act, including (i) requiring that any stockholder submitting a nomination notice make a representation as to whether such stockholder intends to solicit proxies in support of director nominees other than the Company’s nominees in accordance with the Universal Proxy Rule, and if so, agree in writing that such stockholder will comply with the requirements of the Universal Proxy Rule; (ii) providing the Company a remedy if a stockholder fails to satisfy the Universal Proxy Rule requirements; (iii) requiring that a stockholder inform the Company if such stockholder no longer plans to solicit proxies in accordance with the Universal Proxy Rule; and (iv) requiring stockholders intending to use the Universal Proxy Rule to provide reasonable evidence of the satisfaction of

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the requirements under the Universal Proxy Rule at least five business days before the meeting upon request by the Company;

•revise and enhance the procedures and disclosure requirements set forth in the advance notice bylaw provisions for director nominations made and business proposals submitted by stockholders (other than proposals submitted pursuant to Rule 14a-8 under the Exchange Act), including (i) requiring additional information, representations, and disclosures regarding proposing stockholders, proposed nominees, proposed business, and other persons related to, and acting in concert with, a stockholder and the stockholder’s solicitation of proxies; (ii) clarifying that stockholders are not entitled to make additional or substitute nominations or proposals after the submission deadline and may only nominate a number of candidates to the Board of Directors that does not exceed the number of directors to be elected at such meeting; (iii) requiring that if requested by the Secretary of the Company, the Board of Directors or any committee of the Board of Directors, proposed nominees make themselves available for interviews by the Board of Directors and any committee of the Board of Directors within five business days following the date of such request; and (iv) clarifying the authority of the Secretary of the Company, the Board of Directors, or any committee of the Board of Directors to request additional information or written verification to demonstrate the accuracy of previously-provided information with respect to proposing stockholders, proposed nominees, and proposed business;

•require any stockholders directly or indirectly soliciting proxies from other stockholders to use a proxy card color other than white, with the white proxy card being reserved for exclusive use by the Board;

•provide that, unless the Company consents in writing to the selection of an alternative forum, (i) the Court of Chancery in the State of Delaware (or, if the Court of Chancery does not have jurisdiction, the federal district court for the District of Delaware) will be the sole and exclusive forum for any (A) derivative action or proceeding brought on behalf of the Company, (B) action asserting a claim of breach of a fiduciary duty owed by any current or former director, officer or other employee of the Company to the Company or the Company’s stockholders, (C) action asserting a claim arising pursuant to any provision of the DGCL, the Company’s certificate of incorporation or the By-Laws, or (D) action asserting a claim governed by the internal affairs doctrine and (ii) the federal district courts of the United States of America will be the sole and exclusive forum for any action asserting a claim arising under the Securities Act of 1933, as amended;

•provide that the vote standard applicable to the proposal on the frequency of future advisory votes on executive compensation required by Section 14A(a)(2) of the Exchange Act (to determine whether the advisory vote on executive compensation will occur every one year, two years or three years) is a plurality of the votes cast by the Company’s stockholders; and

•incorporate certain administrative, modernizing, and conforming changes to provide clarification and consistency, including regarding meetings of the Board.

The foregoing description of the Amended and Restated By-Laws does not purport to be complete and is qualified in its entirety by reference to the full text of the Amended and Restated By-Laws, which is filed as Exhibit 3.1 to this Quarterly Report on Form 10-Q and incorporated herein by reference.

ITEM 6. EXHIBITS

3.2	Amended and Restated Bylaws of The AES Corporation.
4.1	Twenty-Eighth Supplemental Indenture, dated May 17, 2023, between The AES Corporation and Deutsche Bank Trust Company Americas, as Trustee is incorporated herein by reference to Exhibit 4.1 of the Company's Form 8-K filed on May 17, 2023.
31.1	Rule 13a-14(a)/15d-14(a) Certification of Andrés Gluski (filed herewith).
31.2	Rule 13a-14(a)/15d-14(a) Certification of Stephen Coughlin (filed herewith).
32.1	Section 1350 Certification of Andrés Gluski (filed herewith).
32.2	Section 1350 Certification of Stephen Coughlin (filed herewith).
101	The AES Corporation Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in Inline XBRL (Inline Extensible Business Reporting Language): (i) the Cover Page, (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statements of Operations, (iv) Condensed Consolidated Statements of Comprehensive Income (Loss), (v) Condensed Consolidated Statements of Changes in Equity, (vi) Condensed Consolidated Statements of Cash Flows, and (vii) Notes to Condensed Consolidated Financial Statements. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		THE AES CORPORATION (Registrant)
Date:	August 3, 2023	By:	/s/ STEPHEN COUGHLIN
			Name:	Stephen Coughlin
			Title:	Executive Vice President and Chief Financial Officer (Principal Financial Officer)
		By:	/s/ SHERRY L. KOHAN
			Name:	Sherry L. Kohan
			Title:	Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)

EX-3.2

AMENDED AND RESTATED BY-LAWS OF

THE AES CORPORATION

ARTICLE I
OFFICES

Section 1.01    The registered office of The AES Corporation (the “Corporation”) shall be at 251 Little Falls Drive, Wilmington, Delaware, 19808.

Section 1.02    The Corporation may also have offices and places of business at such other places, within or without the State of Delaware, as the Corporation’s Board of Directors (“Board” or “Board of Directors”) may from time to time determine or the business of the Corporation may require.

ARTICLE II
MEETINGS OF STOCKHOLDERS

Section 2.01    All meetings of stockholders shall be held at such time and place within or without the State of Delaware as may be determined from time to time by the Board of Directors (or the Chairperson in the absence of a designation by the Board of Directors) as shall be stated in the notice of the meeting, or in a duly executed waiver of notice thereof. The Board of Directors may alternatively determine that a meeting of stockholders shall not be held at any place, but shall instead be held solely by means of remote communication as authorized by Section 211(a)(2) of the General Corporation Law of the State of Delaware (as the same exists or may hereafter be amended, “Delaware Law”).

Section 2.02    Annual meetings of stockholders shall be held on the first Friday of June of each year, if not a legal holiday, and if a legal holiday, then on the next succeeding business day not a legal holiday, or at such other date and time as shall be designated from time to time by the Board of Directors and stated in the notice of the meeting. At the annual meeting, the stockholders shall elect a Board of Directors, and transact any other business as may properly come before the meeting.

Section 2.03    The Corporation shall prepare, no later than the tenth day before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting, arranged in alphabetical order, and showing the address of each stockholder. The Corporation shall not be required to include electronic mail addresses or other electronic contact information on such list. Such list shall be open to the examination of any stockholder for any purpose germane to the meeting for a period of at least ten days ending on the day before the meeting date: (i) on a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice of the meeting, or (ii) during ordinary business hours, at the principal executive offices of the Corporation.

Section 2.04    (A) Special meetings of the stockholders, unless otherwise prescribed by Delaware Law or by the Certificate of Incorporation, may be held as may from time to time be designated by the Board of Directors and (1) may be called by the Chairperson of the Board, the Chief Executive Officer or by resolution adopted by a majority of the entire Board of Directors or (2) shall be called by the Chairperson of the Board or the Secretary at the written request of one or more stockholders of record that at the time a request is delivered Own (as defined in Section 2.04(F)) or who are acting on behalf of one or more stockholders or beneficial owners who Own shares

representing at least twenty-five percent (25%) (the “Requisite Percent”) of the outstanding shares of the capital stock of the Corporation entitled to vote on the matter or matters to be brought before the proposed special meeting, provided a special meeting called at the request of one or more stockholders (a “Stockholder Requested Special Meeting”) shall be called by the Chairperson of the Board or the Secretary only if the stockholder(s) requesting such meeting provide the information regarding such stockholder(s) and the proposed special meeting as provided herein and comply with such procedures set forth in Section 2.04(B).

(B)    In order for a Stockholder Requested Special Meeting to be called by the Chairperson of the Board or the Secretary, one or more written requests for a special meeting (individually or collectively, a “Special Meeting Request”) signed and dated by the stockholders of record that Own the Requisite Percent of capital stock of the Corporation (or their duly authorized agents), must be delivered to the Secretary at the principal executive offices of the Corporation and must be accompanied by:

(1)    in the case of any Stockholder Requested Special Meeting at which director nominations are proposed to be presented, the information, representations and agreements required by Sections 2.16 and 9.01 of these By-Laws; and/or

(2)    in the case of any Stockholder Requested Special Meeting at which any business other than nominations of persons for election to the Corporation’s Board of Directors is proposed to be presented, the information required by Sections 2.15 and 2.16 of these By-Laws (which shall be in addition to the information required by Section 9.01 if director nominations are also proposed to be considered); and

(3)    (a) as to each stockholder of the Corporation signing such request, or if such stockholder is a nominee or custodian, the beneficial owner(s) on whose behalf such request is signed, (i) an affidavit by each such person stating the number of shares of capital stock of the Corporation that it Owns as of the date such request was signed and agreeing to continue to Own such number of shares of capital stock through the date of the Stockholder Requested Special Meeting and an agreement by such person to update and supplement such affidavit as of the record date for the Stockholder Requested Special Meeting, and such update and supplement shall be delivered to the Secretary at the principal executive offices of the Corporation not later than five (5) business days after the record date for the meeting; provided that in the event of any decrease in the number of shares of capital stock of the Corporation Owned by such person at any time before the Stockholder Requested Special Meeting, such person’s Special Meeting Request shall be deemed to have been revoked with respect to such shares of capital stock of the Corporation comprising such reduction and shall not be counted towards the calculation of the Requisite Percent, and (ii) a statement stating whether it intends to maintain Ownership of the Requisite Percent of capital stock of the Corporation for at least one year following the Stockholder Requested Special Meeting, and (b) as to the stockholder seeking to call the special meeting (or the person on whose behalf the stockholder is acting, as applicable) or any stockholder or beneficial owner who has solicited other stockholders to request the special meeting, the information required under Sections 2.15 and 2.16 as to such stockholder or beneficial owner.

2

2

(C)    One or more written requests for a special meeting delivered to the Secretary shall constitute a valid Special Meeting Request only if each such written request satisfies the requirements set forth above and has been dated and delivered to the Secretary within 60 days of the earliest dated of such requests. If the record holder is not the signatory to the Special Meeting Request, such Special Meeting Request shall not be valid unless documentary evidence is supplied to the Secretary at the time of delivery of such Special Meeting Request (or within five business days thereafter) of such signatory’s authority to execute the Special Meeting Request on behalf of the record holder. Any requesting stockholder may revoke his, her or its Special Meeting Request at any time prior to the Request Receipt Date by written revocation delivered to the Secretary at the principal executive offices of the Corporation; provided, however, that if following such revocation, the unrevoked valid Special Meeting Requests represent in the aggregate less than the Requisite Percent, there shall be no requirement to hold a special meeting. The determination of the validity of a Special Meeting Request shall be made in good faith by the Board of Directors, which determination shall be conclusive and binding on the Corporation and the stockholders and the date of such determination is referred to herein as the “Request Receipt Date.” A Special Meeting Request shall not be valid if: (1) such Special Meeting Request relates to an item of business that involves a violation of applicable law, is not a proper subject for stockholder action under the Certificate of Incorporation, these By-Laws or applicable law or is expressly reserved for action by the Board of Directors under the Certificate of Incorporation, these By-Laws or applicable law, or (2) the Request Receipt Date occurs during the period commencing 90 days prior to the first anniversary of the date of the most recent annual meeting of stockholders and ending on the date of the next annual meeting of stockholders, or (3) the purpose specified in the Special Meeting Request relates to an item of business (other than the election of directors) that is the same or substantially similar (as determined in good faith by the Board of Directors, a “Similar Item”) to an item of business that was presented at any meeting of stockholders held within the 12 months prior to the Request Receipt Date, or (4) a Similar Item is included in the Corporation’s notice as an item of business to be brought before a stockholder meeting that has been called or that is called for a date within 90 days of the Request Receipt Date.

(D)    Any special meeting of stockholders shall be held at such date and time as may be fixed by the Board of Directors in accordance with these By-Laws and in compliance with Delaware Law; provided, however that a Stockholder Requested Special Meeting shall be called for a date not more than (1) 90 days after the Request Receipt Date (or, in the case of any litigation related to the validity of the requests for a Stockholder Requested Special Meeting, 90 days after the resolution of such litigation), or (2) 50 days after the date the Corporation files definitive soliciting materials with respect to such meeting pursuant to Schedule 14A under the Securities Exchange Act of 1934, as amended and the rules and regulations promulgated thereunder (the “Exchange Act”), whichever is latest.

(E)    Business transacted at any Stockholder Requested Special Meeting shall be limited to (1) the purpose(s) stated in the valid Special Meeting Request(s) received from the Requisite Percent of record holders and (2) any additional matters that the Board of Directors determines to include in the Corporation’s notice of the meeting. If none of the stockholders who submitted the Special Meeting Request, or their qualified representatives (as defined in this Section 2.04(E)), attends the Stockholder Requested Special Meeting to present the matters to be presented for consideration that were specified in the Stockholder Meeting Request(s), the Corporation need not present such matters for a vote at such meeting, notwithstanding that proxies in respect of such matter may have been received by the Corporation. For purposes of these By-Laws, to

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be considered a “qualified representative” of a stockholder, a person must be a duly authorized officer, manager or partner of such stockholder or authorized by a writing executed by such stockholder (or a reliable reproduction or electronic transmission of the writing) delivered to the Corporation prior to the meeting stating that such person is authorized to act for such stockholder as proxy at the meeting of stockholders.

(F)    For the purposes of this Section 2.04 and Section 9.02, a stockholder or beneficial owner shall be deemed to “Own” only those shares of outstanding capital stock as to which such person possesses both (1) the full voting and investment rights pertaining to the shares and (2) the full economic interest in (including the opportunity for profit and risk of loss on) such shares; provided that the number of shares calculated in accordance with clauses (1) and (2) shall not include any shares (a) sold by such person or any of its affiliates in any transaction that has not been settled or closed, (b) borrowed by such person or any of its affiliates for any purposes or purchased by such person or any of its affiliates pursuant to an agreement to resell or (c) subject to any option, warrant, forward contract, swap, contract of sale, or other Derivative Instrument (as defined in Section 2.16(B)) or similar agreement entered into by such person or any of its affiliates, whether any such instrument or agreement is to be settled with shares or with cash based on the notional amount or value of shares of outstanding capital stock of the Corporation, in any such case which instrument or agreement has, or is intended to have, or if exercised would have the purpose or effect of (i) reducing in any manner, to any extent or at any time in the future, such person’s or affiliates’ full right to vote or direct the voting of any such shares, and/or (ii) hedging, offsetting or altering to any degree any gain or loss arising from the full economic ownership of such shares by such person or affiliate. A stockholder or beneficial owner shall “Own” shares held in the name of a nominee or other intermediary so long as the person retains the right to instruct how the shares are voted with respect to the election of directors and possesses the full economic interest in the shares. A person shall be deemed to continue to Own shares during any period in which the person has loaned such shares provided that the person has the power to recall such loaned shares on five (or less) business days’ notice, and has delegated any voting power by means of a proxy, power of attorney or other instrument or arrangement which is revocable at any time by the person. The determination of the extent to which a stockholder or beneficial owner “Owns” any shares of capital stock for these purposes shall be made in good faith by the Board of Directors, which determination shall be conclusive and binding on the Corporation and the stockholders.

Section 2.05    Written notice of the annual meeting or any special meeting of stockholders stating the place, if any, means of remote communication, if any, date and hour of the meeting shall be given in accordance with Section 4.01 to each stockholder entitled to vote at such meeting not less than ten nor more than sixty days before the date of the meeting.

Section 2.06    Business transacted at any special meeting of stockholders shall be limited to the purposes stated in the notice.

Section 2.07    The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the stockholders for the transaction of business except as otherwise provided by Delaware Law or by the Certificate of Incorporation. If, however, such quorum shall not be present or represented at any meeting of the stockholders, the stockholders entitled to vote thereat, present in person or represented by proxy, or the officer presiding over the meeting, shall have power to adjourn the meeting from time to time until a quorum shall be present or represented. When a stockholders’ meeting is

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adjourned to another time or place (including an adjournment taken to address a technical failure to convene or continue a meeting using remote communication), notice of the adjourned meeting need not be given if the time, place, if any, thereof and the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present and vote at such adjournment, are (a) announced at the meeting at which the adjournment is taken, (b) displayed, during the time scheduled for the meeting, on the same electronic network used to enable stockholders and proxy holders to participate in the meeting by means of remote communication or (c) set forth in the notice of the meeting, provided that if the adjournment is for more than 30 days, or after the adjournment, a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given in accordance with Section 2.01 or 2.05 as the case may be, to each stockholder of record entitled to vote at the meeting. At such adjournment at which a quorum shall be present or represented any business may be transacted which might have been transacted at the meeting as originally notified.

Section 2.08    (A) Unless otherwise provided in the Certificate of Incorporation and subject to Delaware Law, each stockholder shall be entitled to one vote for each outstanding share of capital stock of the Corporation held by such stockholder. Any share of capital stock of the Corporation held by the Corporation shall have no voting rights. Unless otherwise provided by Delaware Law, the Certificate of Incorporation or these By-Laws, the affirmative vote of a majority of the shares of capital stock of the Corporation present, in person or by proxy, at a meeting of stockholders and entitled to vote on the subject matter shall be the act of the stockholders.

(B)    At any meeting of stockholders at which directors are to be elected, a nominee for election as a director in an uncontested election shall be elected if the number of votes cast for the nominee’s election exceeds the number of votes cast against the nominee’s election. In an election of directors other than an uncontested election, the nominees receiving the greatest number of votes shall be elected as directors, up to the number of directors as shall constitute the whole Board as set pursuant to Section 3.02. For purposes of this Section 2.08(B), an “uncontested election” means any meeting of stockholders at which the number of candidates does not exceed the number of directors to be elected and with respect to which (1) no stockholder has submitted notice of an intent to nominate a candidate for election at such meeting in accordance with Section 2.04, 9.01 or 9.02, or (2) such a notice has been submitted, and on or before the tenth day prior to the date that the Corporation files its definitive proxy statement relating to such meeting with the Securities and Exchange Commission (the “SEC”) (regardless of whether thereafter revised or supplemented), the notice has been (a) withdrawn in writing to Secretary, (b) determined not to be a valid notice of nomination by the Board of Directors (or a committee thereof) or if challenged in court, by a final court order, or (c) determined by the Board of Directors (or a committee thereof) not to create a bona fide election contest.

(C)    To the extent required, the non-binding advisory vote pursuant to Section 14A(a)(2) of the Exchange Act with respect to the determination as to whether the advisory vote on executive compensation shall occur every one year, every two years or every three years, shall be decided by a plurality of the votes cast among those three alternatives; provided that for purposes of any vote required pursuant to this sentence, neither abstentions nor broker non-votes shall count as votes cast.

Section 2.09    If a vote is to be taken by ballot, each ballot shall state the number of shares voted and the name of the stockholder or proxy voting.

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Section 2.10    Each meeting of the stockholders, whether annual or special, shall be presided over by the Chairperson of the Board if present, and if he or she is not present or declines to preside, by the Chief Executive Officer if present. If neither person specified in the preceding sentence is present, the meeting shall be presided over by the person designated in writing by the Chairperson of the Board, or if the Chairperson of the Board has made no designation, by the person designated by the Chief Executive Officer, or if the Chief Executive Officer has made no designation, by the person designated by the Board of Directors. The Secretary of the Corporation (or in his or her absence any Assistant Secretary) shall be the Secretary of any such meeting; in the absence of the Secretary and Assistant Secretaries, any person may be designated by the Board of Directors to act as Secretary of the meeting.

Section 2.11    Any voting proxy given by a stockholder must be: in writing, executed by the stockholder, or, in lieu thereof, to the extent permitted by law, may be transmitted in a telegram, cablegram or other means of electronic transmission setting forth or submitted with information from which it can be determined that the telegram, cablegram or other electronic transmission was authorized by the stockholder. A copy, facsimile transmission or other reliable reproduction of a written or electronically-transmitted proxy authorized by this Section 2.11 may be substituted for or used in lieu of the original writing or electronic transmission to the extent permitted by law. Any stockholder directly or indirectly soliciting proxies from other stockholders must use a proxy card color other than white, which shall be reserved for the exclusive use by the Board of Directors.

Section 2.12    The directors shall appoint one or more inspectors of election and of the vote at any time prior to the date of any meeting of stockholders at which an election is to be held or a vote is to be taken. In the event any inspector so appointed is absent from such meeting or for any other reason fails to act as such at the meeting, the person presiding at such meeting pursuant to these By-Laws may appoint a substitute who shall have all the powers and duties of such inspector. The inspector or inspectors so appointed shall act at such meeting, make such reports thereof and take such other action as shall be provided by law and as may be directed by the person presiding over the meeting. Each inspector, before entering upon the discharge of his or her duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of his or her ability.

Section 2.13    The directors may, at any time prior to any annual meeting or special meeting of the stockholders, adopt an order of business for such meeting which shall be the order of business to be followed at such meeting. The date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at such meeting shall be announced at such meeting by the person presiding over such meeting.

Section 2.14    (A) For purposes of determining the means of conducting the vote at any meeting of stockholders, a stock vote shall be taken by ballot on any resolution or other matter properly presented to the meeting for action in accordance with Section 2.15 or Section 9.01 if so ordered by the person presiding over the meeting.

(B)    The Board of Directors may adopt such rules and regulations for the conduct of any meeting of stockholders as it shall deem appropriate. Except to the extent inconsistent with such rules and regulations as adopted by the Board of Directors, the person presiding at such meeting shall have the authority to announce and enforce such rules and regulations for the conduct of any meeting of stockholders and the safety of those in attendance as, in the judgment of such person, are necessary,

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appropriate or convenient for the conduct of the meeting. Rules and regulations for the conduct of meetings of stockholders may include without limitation, establishing: (1) an agenda or order of business for the meeting; (2) rules and procedures for maintaining order at the meeting and the safety of those present; (3) limitations on attendance at or participation in the meeting to stockholders entitled to vote at the meeting, their duly authorized and constituted proxies and such other persons as the person presiding at such meeting shall permit; (4) provisions regarding entry to the meeting after the time fixed for the commencement thereof; (5) limitations on the time allotted for consideration of each agenda item and for questions and comments by participants; (6) regulations for the opening and closing of the polls for balloting and matters which are to be voted on by ballot (if any); and (7) procedures (if any) requiring attendees to provide the Corporation advance notice of their intent to attend the meeting. Subject to any rules and regulations adopted by the Board of Directors, the person presiding at such meeting may convene and, for any or no reason, from time to time, adjourn and/or recess any meeting of stockholders.

Section 2.15    (A) Only such business (other than nominations of persons for election to the Board of Directors, which must comply with the provisions of Section 9.01 or Section 9.02) may be transacted at an annual meeting of stockholders as is brought before the meeting (1) pursuant to the Corporation’s notice of meeting, (2) by or at the direction of the Board of Directors or (3) by any stockholder of the Corporation present in person (as defined in this Section 2.15(A)) who is a stockholder of record at the time of giving of the notice provided for in this Section 2.15, on the record date(s) for the determination of stockholders entitled to notice of and to vote at the annual meeting and at the time of the annual meeting, is entitled to vote thereon at the meeting and who complies with the notice procedures set forth in this Section 2.15; clause (3) shall be the exclusive means for a stockholder to submit other business (other than matters properly brought under Rule 14a-8 under the Exchange Act and included in the Corporation’s notice of meeting) before an annual meeting of stockholders. For purposes of this Section 2.15 and Section 9.01, “present in person” shall mean that the stockholder proposing that the business or nomination to be brought before the meeting of stockholders, or, if the proposing stockholder is not an individual, a qualified representative of such proposing stockholder, is in attendance at such meeting.

(B)    For business (other than the nominations of persons for election to the Board of Directors, which must comply with the provisions of Section 9.01 or Section 9.02) to be properly brought before an annual meeting by a stockholder pursuant to Section 2.15(A)(3), the stockholder must have given timely notice thereof in proper written form to the Secretary of the Corporation and such business must be a proper subject for stockholder action under the Certificate of Incorporation, these By-Laws and applicable law and must not be expressly reserved for action by the Board of Directors under the Certificate of Incorporation, these By-Laws or applicable law.

To be timely, a stockholder’s notice shall be delivered, either by personal delivery or by United States mail, postage pre-paid, to the Secretary at the principal executive offices of the Corporation by the close of business (as defined in Section 2.15(E)) not less than 90 days nor more than 120 days prior to the first anniversary of the preceding year’s annual meeting; provided, however, that in the event that the date of the annual meeting is more than 30 days before or more than 60 days after such anniversary date, or if no meeting was held in the preceding year, notice by the stockholder to be timely must be so delivered not earlier than the close of business on the 120th day prior to such annual meeting and not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day following the day on which public announcement (as defined in Section 2.15(E)) of the date of such meeting is first made by the

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Corporation. In no event shall an adjournment, recess or postponement of an annual meeting commence a new time period (or extend any time period) for the giving of a stockholder’s notice as described above. For the avoidance of doubt, a stockholder shall not be entitled to make additional or substitute proposals of business following the expiration of the time periods prescribed for delivery of notice in this Section 2.15(B).

To be in proper written form, such stockholder’s notice shall set forth (1) a brief description of the business proposed to be brought before the meeting, (2) the text of the proposal or business (including the text of any resolutions proposed for consideration and in the event that such business includes a proposal to amend these By-Laws, the language of the proposed amendment), (3) the reasons for conducting such business at the meeting, (4) the reasons why such stockholder or any other Proposing Person (as defined in this Section 2.15(B)) believes that the taking of the action or actions proposed to be taken would be in the best interests of the Corporation and its stockholders, and (5) any other information relating to such business that would be required to be disclosed in a proxy statement or other filing required pursuant to Section 14(a) of the Exchange Act to be made in connection with the solicitations of proxies in support of the business proposed to be brought before the meeting. In addition, to be in proper written form, such stockholder’s notice shall set forth the information required under Section 2.16.

For purposes of these By-Laws, the term “Proposing Person” shall mean (a) the stockholder providing the notice of business proposed to be brought before an annual meeting, (b) the beneficial owner or beneficial owners, if different, on whose behalf the notice of the business proposed to be brought before the meeting is made, (c) any participant (as defined in paragraphs (a)(ii)-(vi) of Instruction 3 to Item 4 of Schedule 14A, or any successor instructions) with such stockholder or beneficial owner(s) in such solicitation of proxies in respect of any such proposed business, (d) any Affiliate (within the meaning of Rule 12b-2 under the Exchange Act) of such stockholder or beneficial owner(s), (e) any person controlling, controlled by or under common control with such stockholder or beneficial owner(s), and (f) any person acting in concert with such stockholder or beneficial owner(s). For purposes of these By-Laws, a person shall be deemed to be “acting in concert” with another person if such person knowingly acts (whether or not pursuant to an express agreement, arrangement or understanding) in concert with, or towards a common goal relating to the management, governance or control of the Corporation in parallel with, such other person where (i) each person is conscious of the other person’s conduct or intent and this awareness is an element in their decision-making processes and (ii) at least one additional factor suggests that such persons intend to act in concert or in parallel, which such additional factors may include, without limitation, exchanging information (whether publicly or privately), attending meetings, conducting discussions or making or soliciting invitations to act in concert or in parallel; provided, however, that a person shall not be deemed to be “acting in concert” with any other person solely as a result of the solicitation or receipt of revocable proxies, or special meeting demands from such other person in response to a solicitation made pursuant to, and in accordance with, Section 14(a) of the Exchange Act by way of a proxy statement filed on Schedule 14A. A person deemed to be “acting in concert” with another person shall be deemed to be “acting in concert” with any third party who is also “acting in concert” with such other person.

(C)    A stockholder shall update and supplement its notice to the Corporation of its intent to propose business at an annual meeting, if necessary, so that the information provided or required to be provided in such notice (including any information submitted regarding any Proposing Person) shall be true and correct as of (1) the record date for the determination of persons entitled to receive notice of the meeting and (2) the date

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that is five business days prior to the meeting and, in the event of any adjournment or postponement thereof, five business days prior to such adjourned or postponed meeting. In the case of an update and supplement pursuant to clause (1) above, such update and supplement shall be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than two business days after the record date for the determination of persons entitled to receive notice of the meeting. In the case of an update and supplement pursuant to clause (2) above, such update and supplement shall be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than two business days prior to the date for the meeting, and, in the event of any adjournment or postponement thereof, two business days prior to such adjourned or postponed meeting. The obligation to update and supplement as set forth in this paragraph or any other section of these By-Laws shall not cure or limit the Corporation’s rights with respect to any deficiencies in any notice provided by a stockholder, extend any applicable deadlines hereunder or under any other provision of the By-Laws or enable or be deemed to permit a stockholder who has previously submitted notice hereunder or under any other provision of the By-Laws to amend or update any proposal or to submit any new proposal, including by changing or adding matters, business and/or resolutions proposed to be brought before a meeting of stockholders.

(D)    Only such business (other than nominations of persons for election to the Board of Directors, which must comply with the provisions of Section 9.01 or Section 9.02) shall be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with the procedures set forth in this Section 2.15, other than business properly brought under Rule 14a-8 under the Exchange Act and included in the Corporation’s notice of meeting. Except as otherwise provided by law, the Certificate of Incorporation or these By-Laws, the Board of Directors or the person presiding over a meeting of stockholders shall have the power and duty to determine whether any business proposed by any stockholder to be brought before the meeting was made or proposed in accordance with the procedures set forth in this Section 2.15 and, if any proposed business is not in compliance with this Section 2.15, then except as otherwise provided by law, the person presiding over the meeting of stockholders shall have the power and duty to declare that such defective proposal shall be disregarded. In addition, business proposed to be brought by a stockholder may not be brought before a meeting of stockholders if such stockholder or any Proposing Person takes action contrary to the representations made in the stockholder notice applicable to such business or if the stockholder notice applicable to such business contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements therein not misleading or, if after being submitted to the Corporation, the stockholder notice applicable to such business was not updated in accordance with these By-Laws to cause the information provided in the stockholder notice to be true, correct and complete in all respects.

(E)    For purposes of these By-Laws, the “close of business” shall mean 6:00 p.m. local time at the principal executive offices of the Corporation on any calendar day, whether or not the day is a business day, and “public announcement” shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the Corporation with the SEC pursuant to Section 13, 14 or 15(d) of the Exchange Act.

(F)    In addition to the foregoing provisions of this Section 2.15, a stockholder shall comply with all applicable requirements of the Exchange Act and Delaware Law with respect to the matters set forth in this Section 2.15. A stockholder is not entitled to have its proposal included in the Corporation’s proxy materials solely as a result of such

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stockholder’s compliance with the provisions of this Section 2.15. Nothing in this Section 2.15 shall be deemed to affect any rights of stockholders to request inclusion of proposals in the Corporation’s proxy statement pursuant to Rule 14a-8 under the Exchange Act.

Section 2.16    (A) A stockholder’s notice must set forth the following as to the stockholder giving the notice, the beneficial owner(s), if any, on whose behalf the nomination or proposal is made, each Proposing Person and each Nominating Person (as defined in Section 9.01(C)), as the case may be: (1) the name and address of such person (including, if applicable, the name and address that appear on the Corporation’s books) and (2) the class and number of shares of the Corporation which are, directly or indirectly, owned of record by such person as of the date of the notice.

(B)    A stockholder’s notice must set forth the following as to the stockholder giving the notice, the beneficial owner(s), if any, on whose behalf the nomination or proposal is made, each Proposing Person and each Nominating Person, as the case may be: (1) the class and number of shares owned beneficially (as defined in this Section 2.16(B)) but not of record by such person as of the date of the notice; (2) whether and the extent to which any Derivative Instrument or Short Interest (as defined in this Section 2.16(B)) has been entered into by or on behalf of such person with respect to stock of the Corporation; (3) a description of all agreements, arrangements or understandings between such person and (a) any other person or persons (including their names) in connection with the proposal of such business (other than nominations) or (b) each proposed nominee and any other person or persons (including their names) pursuant to which the nomination(s) are to be made, as the case may be; (4) a description of any substantial interest (within the meaning of Item 5 of Schedule 14A of the Exchange Act) of such person in such business or nomination, as the case may be, including any anticipated benefit to such person therefrom; (5) all information that would be required to be set forth in a Schedule 13D filed pursuant to Rule 13d-1(a) of the Exchange Act or an amendment pursuant to Rule 13d-2(a) if such a statement were required to be filed under the Exchange Act by such person, if any; (6) any material pending or threatened legal proceeding in which such person is a party or material participant or has an interest (other than an interest that is substantially the same as all stockholders) involving the Corporation or any of its officers or directors, or any affiliate of the Corporation; (7) any other material relationship between such person, on the one hand, and the Corporation, any affiliate of the Corporation or any significant competitor of the Corporation, on the other hand; (8) any performance-related fees (other than an asset-based fee) that such person is entitled to based on any increase or decrease in the value of shares of the Corporation, Derivative Instruments, or Short Interests, if any, as of the date of such notice, including without limitation any such interests held by members of such person’s immediate family sharing the same household; (9) any direct or indirect material interest in any material contract or agreement of such person with the Corporation, any affiliate of the Corporation or any significant competitor of the Corporation (including, in any such case, any employment agreement, collective bargaining agreement or consulting agreement) or any significant equity interests or any Derivative Instruments or Short Interests in any significant competitor of the Corporation held by such person (provided that, solely for purposes of this clause (9), references to the words “the Corporation” within the definitions of “Derivative Instrument” and “Short Interests” shall be replaced with the words “such competitor”); (10) a representation that such stockholder is a holder of record of stock of the Corporation entitled to vote at the meeting and intends to be present in person at the meeting to bring such business before the meeting or to nominate the persons named in its notice, as the case may be; (11) a representation as to whether any

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person intends or is part of a group which intends (a) to deliver a proxy statement and/or form of proxy to holders of at least the percentage of the Corporation’s outstanding capital stock required to approve the proposed business or elect the nominee and/or (b) otherwise engage in or be a participant in a solicitation (within the meaning of Rule 14a-1(1) under the Exchange Act) of proxies in support of such proposed business or nomination; (12) a representation as to whether or not the person will submit any other proposal or nomination at the meeting; and (13) any other information relating to such person that would be required to be disclosed in a proxy statement or other filings required to be made in connection with the solicitation of proxies with respect to business brought at a meeting of stockholders or for an election of directors, as the case may be, pursuant to Section 14 of the Exchange Act. For purposes of these By-Laws, shares shall be treated as “beneficially owned” by a person if the person beneficially owns such shares, directly or indirectly, for purposes of Section 13(d) of the Exchange Act and Regulations 13D and 13G thereunder or has or shares pursuant to any agreement, arrangement or understanding (whether or not in writing) (1) the right to acquire such shares (whether such right is exercisable immediately or only after the passage of time or the fulfillment of a condition or both), (2) the right to vote such shares, alone or in concert with others and/or (3) investment power with respect to such shares, including the power to dispose of, or to direct the disposition of, such shares. “Derivative Instrument” shall mean any “derivative security” (as such term is defined in Rule 16a-1(c) under the Exchange Act) that constitutes a “call equivalent position” (as such term is defined in Rule 16a-1(b) under the Exchange Act) and that is, directly or indirectly, held or maintained by such stockholder with respect to any shares of any class or series of shares of the Corporation, including without limitation any option, warrant, convertible security, stock appreciation right or similar right or interest (including any derivative securities, as defined under Rule 16a-1 under the Exchange Act or other synthetic arrangement having characteristics of a long position) which, assuming for purposes of these By-Laws, are presently exercisable, with an exercise or conversion privilege or a settlement or payment mechanism at a price related to any class or series of securities of the Corporation or with a value derived in whole or in part from the price, value, dividend or amount of dividend or volatility of any class or series of securities of the Corporation, whether or not such instrument or right is subject to settlement in whole or in part in the underlying class or series of securities of the Corporation or otherwise, directly or indirectly held of record or owned beneficially by such person and whether or not such person may have entered into transactions that hedge or mitigate the economic effects of such security or instrument and other direct or indirect right or interest that may enable such person to profit or share in any profit derived from, or to manage the risk or benefit from, any increase or decrease in the price, value, dividend or amount of dividend or volatility of the Corporation’s securities, in each case regardless of whether (x) such right or interest conveys any voting rights in such security to such person, (y) such right or interest is required to be, or is capable of being, settled through delivery of such security, or (z) such person may have entered into other transactions that hedge the economic effect of any such right or interest; provided, however, that for the purpose of the term “Derivative Instrument,” the term “derivative security” shall also include any security or instrument that would not otherwise constitute a “derivative security” (as such term is defined in Rule 16a-1(c) under the Exchange Act) as a result of any feature that would make any conversion, exercise or similar right or privilege of such security or instrument becoming determinable only at some future date or upon the happening of a future occurrence, in which case the determination of the amount of securities into which such security or instrument would be convertible or exercisable shall be made assuming that such security or instrument is immediately convertible or exercisable at the time of such

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determination, or otherwise include rights with an exercise or conversion privilege that is not fixed; and, provided, further, that any stockholder satisfying the requirements of Rule 13d-1(b)(1) under the Exchange Act (other than a stockholder that so satisfies Rule 13d-1(b)(1) under the Exchange Act solely by reason of Rule 13d-1(b)(1)(ii)(E)) shall not be required to disclose a Derivative Instrument held by such stockholder as a hedge with respect to a bona fide derivatives trade or position of such stockholder arising in the ordinary course of such stockholder’s business as a derivatives dealer. “Short Interest” shall mean any contract, agreement, arrangement, understanding or relationship including any repurchase or similar so called “stock borrowing” agreement or arrangement (including any short position or any borrowing or lending of shares of stock), the purpose or effect of which is to mitigate loss, reduce economic risk (of ownership or otherwise) or increase or decrease voting power with respect to any capital stock of the Corporation or which provides any party, directly or indirectly, the opportunity to profit from any decrease in the price or value of the capital stock of the Corporation, including without limitation any “put equivalent position” (as such term is defined in Rule 16a-1(h) under the Exchange Act) related to any shares of any class or series of shares of the Corporation.

(C)    Notwithstanding the foregoing provisions of this Section 2.16, except as otherwise provided by law, if the stockholder does not provide the information required under Sections 2.16(A) and 2.16(B) to the Corporation within the time frames specified therein, or if the stockholder is not present in person at the meeting of stockholders of the Corporation to present a nomination or other business, such nomination shall be disregarded and such other business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Corporation.

(D)    Upon written request by the Secretary of the Corporation, the Board of Directors or any duly authorized committee thereof, a stockholder submitting a notice pursuant to Section 2.15, Section 9.01 or Section 9.02 shall provide, within five business days of delivery of such request (or such other period as may be specified in such request), (A) written verification, satisfactory in the reasonable discretion of the Board of Directors, any duly authorized committee thereof or any duly authorized officer of the Corporation, to demonstrate the accuracy of any information submitted by the stockholder (including any information submitted regarding the submitting stockholder, any Eligible Stockholder (as defined in Section 9.02(B)), Proposing Person, Nominating Person or candidate proposed to be nominated for election as a director) in the notice delivered pursuant to the requirements of these By-Laws (including, if requested, written confirmation by such stockholder that it continues to intend to bring the business or nomination proposed in the notice before the meeting), and (B) such other information reasonably required by the Secretary of the Corporation, the Board of Directors or any duly authorized committee thereof, acting in good faith, to determine compliance with these By-Laws or the accuracy and completeness of any notice or solicitation given or made on behalf of such stockholder or such candidate. If a stockholder fails to provide such written verification or other information within such period, the information as to which written verification or other information was requested may be deemed not to have been provided in accordance with the requirements of these By-Laws.

(E)    Upon written request by the Secretary of the Corporation, the Board of Directors or any duly authorized committee thereof, a stockholder submitting a notice pursuant to Section 2.15, Section 9.01 or Section 9.02 shall provide, within five business days of delivery of such request (or such other period as may be specified in such request), a written supplement, satisfactory in the reasonable discretion of the Board of Directors, any duly authorized committee thereof or any duly authorized officer of the

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Corporation, to update the information (including any information submitted regarding any submitting stockholder, Eligible Stockholder, Proposing Person, Nominating Person or candidate proposed to be nominated) contained in any previously submitted stockholder notice and provide the disclosures required by these By-Laws, such that they are current and true, correct and complete as of the date that such supplement is submitted to the Secretary. If a stockholder fails to provide such written supplement within such period, the information as to which a written supplement was requested may be deemed not to have been provided in accordance with the requirements of these By-Laws.

(F)    Upon written request by the Secretary of the Corporation, the Board of Directors or any duly authorized committee thereof, each candidate proposed to be nominated for election as a director shall make himself or herself available for interviews with the Board of Directors and any duly authorized committee thereof within five business days of delivery of such request (or such other period as may be specified in such request).

(G)    For a notice to comply with the requirements of this Section 2.16, each of the applicable requirements of this Section 2.16 (and, as applicable, Section 2.15, Section 9.01 and Section 9.02) shall be directly and expressly responded to in a manner that clearly indicates and expressly references to which provisions of such Section(s) the information disclosed is intended to be responsive. Information disclosed in one section of the notice in response to one provision of such Sections shall not be deemed responsive to any other provision of such Sections unless it is expressly cross-referenced to such other provision and it is clearly apparent how the information included in one section of the notice is directly and expressly responsive to the information required to be included in another section of the notice. For the avoidance of doubt, statements purporting to provide global cross-references that purport to provide that all information provided shall be deemed to be responsive to all requirements of this Section 2.16 (and, as applicable, Section 2.15, Section 9.01 and Section 9.02) shall not satisfy the requirements thereof and shall be disregarded.

(H)    For a notice to comply with the requirements of this Section 2.16 (and, as applicable, Section 2.15, Section 9.01 and Section 9.02), it must set forth in writing directly within the body of the notice (as opposed to being incorporated by reference from any other document or writing not prepared solely in response to the requirements of these By-Laws) all the information required to be included therein as set forth in such Section(s). A notice shall not be deemed to be in compliance with such Section(s) if it attempts to include the required information by incorporating by reference into the body of the notice any other document, writing or part thereof, including, but not limited to, any documents publicly filed with the SEC not prepared solely in response to the requirements of these By-Laws. For the further avoidance of doubt, the body of the notice shall not include any documents that are not prepared solely in response to the requirements of these By-Laws.

(I)    A stockholder submitting a notice pursuant to Section 2.15, Section 9.01 or Section 9.02, by its delivery to the Corporation, represents and warrants that all information contained therein (including any information regarding any Proposing Person, Nominating Person, Eligible Stockholder or candidate proposed to nominated for election as a director), as of the deadline for submitting the notice, is true, accurate and complete in all respects, contains no false or misleading statements and such stockholder acknowledges that it intends for the Corporation and the Board of Directors to rely on such information as (i) being true, accurate and complete in all respects and (ii) not containing any false or misleading statements. If such information shall not be

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true, correct and complete in all respects prior to the deadline for submitting the notice, such information may be deemed not to have been validly provided.

Section 2.17    (A) Any action that may be taken at any annual meeting or special meeting of stockholders may be taken without a meeting and without a vote, if a consent in writing, setting forth the action so taken, is signed by the stockholders having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Prompt notice of the taking of such action without a meeting by less than unanimous written consent shall be given to each stockholder who did not consent thereto in writing.

(B)    In order that the Corporation may determine the stockholders entitled to consent to corporate action in writing without a meeting, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors, and which record date shall not be more than ten days after the date upon which the resolution fixing the record date is adopted by the Board of Directors. Any stockholder of record seeking to have the stockholders authorize or take corporate action by written consent shall, by written notice to the Secretary, request the Board of Directors to fix a record date. The Board of Directors shall promptly, but in all events within ten days after the date on which such a request is received, adopt a resolution fixing the record date. If no record date has been fixed by the Board of Directors within ten days of the date on which such a request is received, the record date for determining stockholders entitled to consent to corporate action in writing without a meeting, when no prior action by the Board of Directors is required by law, shall be the first date on which a signed written consent setting forth the action taken or proposed to be taken is delivered to the Corporation by delivery to its registered office in Delaware, its principal place of business or an officer or agent of the Corporation having custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to the Corporation’s registered office shall be by hand or by certified or registered mail, return receipt requested. If no record date has been fixed by the Board of Directors and prior action by the Board of Directors is required by applicable law, the record date for determining stockholders entitled to consent to corporate action in writing without a meeting shall be at the close of business (as defined in Section 2.15(E)) on the day on which the Board of Directors adopts the resolutions taking such prior action.

ARTICLE III
MATTERS RELATING TO THE BOARD OF DIRECTORS

Directors

Section 3.01    The business of the Corporation shall be managed by or under the direction of its Board of Directors, which may exercise all such powers of the Corporation and do all such lawful acts and things as are not by statute, the Certificate of Incorporation or these By-Laws directed or required to be exercised or done by the stockholders.

Section 3.02    The number of directors of the Corporation which shall constitute the whole Board shall be nine, or such other number as may be determined from time to time by written resolution of the Board of Directors. The directors shall be elected at the annual meeting of the stockholders, except as provided in Section 3.04, and each director elected shall hold office until his or her successor is elected and qualified or

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until his or her earlier resignation or removal. Directors need not be stockholders of the Corporation.

Section 3.03    Any director of the Corporation may resign at any time either by oral tender of resignation at any meeting of the Board of Directors or by delivering written notice thereof to the Secretary of the Corporation. Such resignation shall take effect at the time specified therein, and unless otherwise specified with respect thereto the acceptance of such resignation shall not be necessary to make it effective.

Section 3.04    Any director may be removed, with or without cause, at any time, by the affirmative vote of the holders of record of a majority of all the shares of capital stock entitled to vote at an election of directors. Vacancies in the Board of Directors created by the death, resignation or removal of directors and newly created directorships resulting from any increase in the authorized number of directors may be filled only by the affirmative vote of a majority of the remaining directors then in office, although less than a quorum, or by a sole remaining director. Any director so chosen shall hold office until the next annual election and until his or her successor is duly elected and qualified or until his or her earlier resignation or removal. If there are no directors in office, then an election of directors may be held in the manner provided by Delaware Law.

Meetings of the Board of Directors

Section 3.05    The Board of Directors of the Corporation may hold meetings, both regular and special, either within or without the State of Delaware.

Section 3.06    The Board of Directors shall meet as soon as practicable after the annual election of directors, for the purpose of organization and the transaction of other business including the election of officers and election of the Chairperson of the Board and, if applicable, a Vice Chairperson of the Board.

Section 3.07    Regular meetings of the Board of Directors may be held without notice at such time and at such place as shall from time to time be determined by the Board. Any business of the Corporation may be transacted at any such regular meeting.

Section 3.08    Special meetings of the Board of Directors shall be called at the request of the Chairperson of the Board, the Chief Executive Officer or a majority of the Board of Directors then in office. The person or persons authorized to call special meetings of the Board of Directors may fix the place, if any, date and time of the meetings.

Section 3.09    At all meetings of the Board of Directors, a majority of the directors then in office shall constitute a quorum for the transaction of business, and the act of a quorum shall be the act of the Board of Directors, except as may be otherwise specifically provided by Delaware Law, the Certificate of Incorporation or these By-Laws. If a quorum shall not be present at any meeting of the Board of Directors, the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present.

Section 3.10    Unless otherwise restricted by the Certificate of Incorporation or these By- Laws, any action required or permitted to be taken at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting, if all members of the Board or such committee, as the case may be, consent thereto in writing, and the writing or writings are filed with the minutes of the proceedings of the Board or such committee.

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Section 3.11    Members of the Board of Directors or any committee designated by the Board pursuant to Section 3.12 may participate in a meeting of such Board or committee by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at such meeting.

Committees of Directors

Section 3.12    The Board of Directors may, by resolution passed by the affirmative vote of a majority of the directors, designate one or more committees, each committee to consist of one or more of the directors of the Corporation. The Board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. Any such committee, to the extent provided in the adopting resolution, shall have and may exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers which may require it, but no such committee shall have the power or authority in reference to the following matter: (A) approving or adopting, or recommending to the stockholders, any action or matter expressly required by Delaware Law to be submitted to the stockholders for approval or (B) adopting, amending or repealing any By-Law of the Corporation. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

Section 3.13    Each committee shall keep regular minutes of its meetings and report the same to the Board of Directors when required.

Compensation

Section 3.14    Directors, and members of any committee of the Board of Directors, shall be entitled to such reasonable compensation for their services as directors and members of each such committee as shall be fixed from time to time by resolution of the Board of Directors (or a committee thereof), and shall also be entitled to reimbursement for any reasonable expenses incurred in attending such meetings. Any directors receiving compensation under these provisions shall not be barred from serving the Corporation in any other capacity and receiving reasonable compensation for such other services.

ARTICLE IV
NOTICES

Section 4.01    Whenever notice is required to be given to any director or stockholder under the provisions of the Certificate of Incorporation, these By-Laws, or Delaware Law, it will be given in accordance with the applicable provisions of Delaware Law.

Section 4.02    Whenever any notice is required to be given under the Certificate of Incorporation, these By-Laws, or Delaware Law, a waiver thereof in writing, signed by the person or persons entitled to said notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to such notice. Attendance in person or by proxy of a person at a meeting of stockholders shall constitute a waiver of notice of such meeting, except when the stockholder attends a meeting for the express purpose of objecting and does so object at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Any director attending a meeting of the

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Board of Directors without protesting, prior to the meeting or at its commencement, any lack of notice shall be conclusively deemed to have waived notice of such meeting.

ARTICLE V
OFFICERS

Section 5.01    The principal officers of the Corporation shall be a Chief Executive Officer, President, one or more Vice Presidents, a Treasurer and a Secretary who shall have the duty, among other things, to record the proceedings of the meetings of stockholders and directors in a book kept for that purpose. The Corporation may also have such other principal officers, including one or more Controllers, as the Board may in its discretion appoint. Any number of offices may be held by the same person.

Section 5.02    The principal officers of the Corporation shall be elected annually by the Board of Directors. Each such officer shall hold office until his successor is elected and qualified, or until his earlier death, resignation or removal. Any vacancy in any office shall be filled in such manner as the Board of Directors shall determine.

Section 5.03    In addition to the principal officers enumerated in Section 5.01 herein, the Corporation may have one or more Assistant Treasurers, Assistant Secretaries and Assistant Controllers and such other subordinate officers, agents and employees as the Board of Directors may deem necessary, each of whom shall hold office for such period as the Board of Directors may from time to time determine. The Board of Directors may delegate to any principal officer the power to appoint and to remove any such subordinate officers, agents or employees.

Section 5.04    The compensation of all officers and agents of the Corporation shall be fixed by the Board of Directors except to the extent such power shall be delegated, by resolution of the Board, to a committee of directors, to the Chairperson of the Board or to the Chief Executive Officer.

Section 5.05    Any officer or agent of the Corporation may be removed at any time, either with or without cause, by the Board of Directors in its sole discretion. Any vacancy occurring in any office of the Corporation may be filled at any time by the Board of Directors.

ARTICLE VI
MATTERS RELATING TO THE STOCK OF THE CORPORATION

Section 6.01    The shares of capital stock of the Corporation may be represented by certificates or may be uncertificated. To the extent that shares are represented by certificates, the certificates shall be in such form as shall be determined by the Board of Directors and shall be numbered consecutively and entered in the books of the Corporation as they are issued. Every holder of shares of capital stock of the Corporation theretofore represented by certificates and, upon request, every holder of uncertificated shares, shall be entitled to have a certificate for shares of capital stock of the Corporation in the form approved by the Board of Directors, signed by, or in the name of the Corporation by, (A) the Chairperson of the Board or the President or a Vice President and (B) the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary, certifying the number of such shares owned by such stockholder in the Corporation. Except as otherwise provided by law, the rights and obligations of the holders of uncertificated stock and the rights and obligations of the holders of certificates representing stock of the same class and series shall be identical.

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Section 6.02    Where any such certificate is signed either by a transfer agent or an assistant transfer agent, or by a transfer clerk acting on behalf of the Corporation and by a registrar, the signature of any such Chairperson of the Board, President, Vice President, Treasurer, Assistant Treasurer, Secretary or Assistant Secretary may be facsimile. In case any such officer who has signed, or whose facsimile signature has been affixed on, any such certificate shall cease to be such officer, whether because of resignation, removal or otherwise, before such certificate has been issued or delivered by the Corporation, such certificate may nevertheless be issued and delivered by the Corporation with the same effect as if such officer had not ceased to be such at the date of such delivery.

Section 6.03    In case any certificate of stock shall be lost, stolen or destroyed, the Board of Directors, in its discretion, or any officer or officers thereunto duly authorized by the Board, may authorize the issuance of uncertificated shares or, if requested by the registered owner, a substitute certificate in place of the certificate so lost, stolen or destroyed; provided, however, that in each such case the applicant for uncertificated shares or a substitute certificate shall furnish evidence to the Corporation which the Board of Directors, or any office or officers authorized as aforesaid, determines is satisfactory, of the loss, theft or destruction of such certificate and of the ownership thereof, and also such security or indemnity as may be required by the Board.

Section 6.04    Stock of the Corporation shall be transferable in the manner prescribed by applicable law and in these By-Laws. Transfers of stock shall be made on the books of the Corporation, and in the case of certificated shares of stock, only by the person named in the certificate or by such person’s attorney lawfully constituted in writing, and upon the surrender of the certificate therefor to the Corporation or the transfer agent of the Corporation, properly endorsed for transfer or accompanied by proper evidence of succession, assignment or authority to transfer, or in the case of uncertificated shares of stock, upon receipt of proper transfer instructions from the registered holder of the shares or by such person’s attorney lawfully constituted in writing, and in either case upon payment of all necessary transfer taxes; provided, however, that such surrender and endorsement, compliance or payment of taxes shall not be required in any case in which the officers of the Corporation shall determine to waive such requirement. With respect to certificated shares of stock, every certificate exchanged, returned or surrendered to the Corporation shall be marked “Cancelled,” with the date of cancellation, by the Secretary or Assistant Secretary of the Corporation or the transfer agent of the Corporation. No transfer of stock shall be valid as against the Corporation for any purpose until it shall have been entered in the stock records of the Corporation by an entry showing from and to whom transferred.

Section 6.05    (A) In order that the Corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors, and which record date shall not be more than sixty nor less than ten days before the date of such meeting. If no record date is fixed by the Board of Directors, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business (as defined in Section 2.15(E) above) on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; providing, however, that the Board of Directors may fix a new record date for the adjourned

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meeting. See Section 2.17(B) with respect to the fixing of a record date to determine the stockholders entitled to consent to corporate action in writing without a meeting.

(B)    In order that the Corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall not be more than sixty days prior to such action. If no record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto.

Section 6.06    The Corporation shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends, and to vote as such owner, and to hold liable for calls and assessments a person registered on its books as the owner of shares, and shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by Delaware Law.

ARTICLE VII
GENERAL PROVISIONS

Dividends

Section 7.01    Dividends upon the capital stock of the Corporation, subject to the provisions of the Certificate of Incorporation, if any, may be declared by the Board of Directors at any regular or special meeting, in accordance with Delaware Law. Dividends may be paid in cash, in property, or in shares of capital stock, subject to the applicable provisions, if any, of the Certificate of Incorporation.

Section 7.02    Before payment of any dividend, there may be set aside out of any funds of the Corporation available for dividends such sum or sums as the directors from time to time, in their absolute discretion, think proper as a reserve or reserves to meet contingencies, or for equalizing dividends or for repairing or maintaining any property of the Corporation, or for such other purpose as the directors shall think conducive to the interest of the Corporation, and the directors may modify or abolish any such reserve in the manner in which it was created.

Fiscal Year

Section 7.03    The fiscal year of the Corporation shall be the calendar year unless otherwise fixed by resolution of the Board of Directors.

Voting Securities Held by the Corporation

Section 7.04    Unless otherwise ordered by the Board of Directors, the Chief Executive Officer shall have full power and authority on behalf of the Corporation to attend and to act and to vote at any meeting of security holders of other corporations in which the Corporation may hold securities. At such meeting the Chief Executive Officer shall possess and may exercise any and all rights and powers incident to the ownership of such securities which the Corporation might have possessed and exercised if it had

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been present. The Board of Directors may, from time to time, confer like powers upon any other person or persons.

Section 7.05    The corporate seal shall have inscribed thereon the name of the Corporation, the year of its organization and the words “Corporate Seal, Delaware.” The seal may be used by causing it or a facsimile thereof to be impressed or affixed or reproduced or otherwise.

ARTICLE VIII
INDEMNIFICATION

Section 8.01    (A) Any person (and the heirs, executors or administrators of such person) who was or is a party or is threatened to be made a party to or was or is involved (as a witness or otherwise) in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than any action or suit by or in the right of the Corporation to procure a judgment in its favor) by reason of the fact that he or she is or was a director, officer or employee of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, shall be indemnified by the Corporation, to the extent authorized by the laws of the State of Delaware as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than such laws permitted prior to such amendment), against all expenses (including, but not limited to, attorneys’ fees), judgments, fines, penalties and amounts paid in settlement actually and reasonably incurred by him or her in connection with the action, suit or proceeding. In the event of any action or suit by or in the right of the Corporation to procure a judgment in its favor, such persons shall be indemnified by the Corporation against expenses (including attorneys’ fees) under the same conditions and to the same extent as specified above, except that no indemnification is permitted in respect of any claim, issue or matter as to which such persons shall have been adjudged to be liable to the Corporation unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper. The indemnification expressly provided by statute in a specific case shall not be deemed exclusive of any other rights to which any person indemnified may be entitled under any lawful agreement, vote of stockholders or disinterested directors or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

(B)    The right to indemnification conferred in this Article VIII is and shall be a contract right. The right to indemnification conferred in this Article VIII shall include the right to be paid by the Corporation the expenses (including attorneys’ fees and retainers therefor) reasonably incurred in connection with any such proceeding in advance of its final disposition, such advances to be paid by the Corporation within 20 days after the receipt by the Corporation of a statement or statements from a director, officer or employee of the Corporation requesting such advance or advances from time to time; provided, however, the payment of such expenses incurred by a director, officer or employee in his or her capacity as a director, officer or employee in advance of the final disposition of a proceeding shall be made only upon delivery to the Corporation of an

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undertaking by or on behalf of such director, officer or employee to repay all amounts so advanced if it shall ultimately be determined that such director, officer or employee is not entitled to be indemnified under this Article VIII or otherwise.

(C)    To obtain indemnification under this Article VIII, an indemnitee shall submit to the Corporation a written request, including therein or therewith such documentation and information as is reasonably available to such person and is reasonably necessary to determine whether and to what extent the indemnitee is entitled to indemnification.

(D)    The Corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the Corporation or another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss incurred by such person in any such capacity or arising out of such person’s status as such, whether or not the Corporation would have the power to indemnify such person against such expense, liability or loss under Delaware Law. To the extent that the Corporation maintains any policy or policies providing such insurance, each such director, officer or employee, and each such agent to which rights to indemnification have been granted as provided in paragraph (E) of this Section 8.01, shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage thereunder for any such director, officer, employee or agent.

(E)    The Corporation may, to the extent authorized from time to time by the Board of Directors, grant rights to indemnification, and rights to be paid by the Corporation the expenses incurred in connection with any proceeding in advance of its final disposition, to any agent of the Corporation to the fullest extent of the provisions of this Article VIII with respect to the indemnification and advancement of expenses of directors, officers and employees of the Corporation.

(F)    Neither the amendment nor repeal of this Article VIII, nor the adoption of any provision of this Certificate of Incorporation or the By-Laws of the Corporation, nor, to the fullest extent permitted by Delaware Law, any modification of law, shall eliminate or reduce the effect of this Article VIII in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

ARTICLE IX
NOMINATION OF DIRECTORS

Section 9.01    (A) Only persons who are nominated in accordance with the following procedures shall be eligible for election as directors of the Corporation, except as may be otherwise provided in the Certificate of Incorporation with respect to the rights of holders of any preferred stock of the Corporation to nominate and elect a specified number of directors in certain circumstances. Nominations of persons for election to the Board of Directors may be made at any annual meeting of stockholders or at any special meeting of stockholders called for the purpose of electing directors (1) by or at the direction of the Board of Directors, (2) by any stockholder of the Corporation present in person who is a stockholder of record at the time of giving of the notice provided for in this Section 9.01, on the record date(s) for the determination of stockholders entitled to notice of and to vote at the meeting and at the time of the meeting, is entitled to vote thereon at the meeting, who complies with the notice procedures set forth in this Section 9.01, and who nominates a number of nominees that does not exceed the number of directors that will be elected at the meeting, (3) by any Eligible Stockholder who complies with the procedures set forth in Section 9.02, or (4) in the case of a Stockholder Requested Special Meeting, by any stockholder of the Corporation who complies with the procedures set forth in Section 2.04; clauses (2), (3),

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and (4) shall be the exclusive means for a stockholder to nominate persons for election to the Board of Directors before an annual meeting or special meeting of stockholders (in addition to complying with the other applicable requirements of the Certificate of Incorporation, these By-Laws, Rule 14a-19 promulgated under the Exchange Act and other state and federal law). Notwithstanding any other provision of these By-Laws, in the case of a Stockholder Requested Special Meeting, no stockholder may nominate a person for election to the Board of Directors or propose any other business to be considered at the meeting, except pursuant to the written request(s) delivered for such special meeting pursuant to Section 2.04.

(B)    Any stockholder of record may nominate one or more persons for election as director at a meeting (other than a Stockholder Requested Special Meeting) only if the notice required by this Section 9.01 with respect to any nomination or nominations (including the completed and signed questionnaire, representation and agreement required by Section 9.01(D)) has been given, either by personal delivery or by United States mail, postage prepaid, in proper written form to the Secretary of the Corporation at the principal executive offices of the Corporation (1) with respect to an election to be held at an annual meeting of stockholders, in accordance with the time periods prescribed for delivery of notice under Section 2.15(B), and (2) with respect to an election to be held at a special meeting of stockholders for the election of directors (other than a Stockholder Requested Special Meeting), the close of business (as defined in Section 2.15(E)) on the seventh day following the earlier of (a) the date on which notice of such meeting is first given to stockholders and (b) the date on which a public announcement (as defined in Section 2.15(E)) of such meeting is first made. In no event shall an adjournment, recess or postponement of an annual meeting or special meeting commence a new time period (or extend any time period) for the giving of a stockholder’s notice as described above. For the avoidance of doubt, a stockholder shall not be entitled to make additional or substitute nominations following the expiration of the time periods prescribed for delivery of notice under Section 2.15(B).

(C)    To be in proper written form, each such notice shall include: (1) the class and number of shares of the Corporation which are owned beneficially and of record by each person whom the stockholder proposes to nominate for election as a director; (2) the name and address of the person or persons to be nominated; (3) the written consent of each nominee to be named in proxy materials as a nominee and to serve as a director of the Corporation if so elected; and (4) as to each person whom the stockholder proposes to nominate for election as a director (a) the name of each nominee holder of shares owned beneficially but not of record by such person and the number of shares of stock held by each such nominee holder, (b) whether and the extent to which any Derivative Instrument or Short Interest has been entered into by or on behalf of such person with respect to stock of the Corporation, (c) any other information relating to the person that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors pursuant to Section 14 of the Exchange Act, (d) a reasonably detailed description of all direct and indirect compensation, reimbursement, indemnification, benefits and other agreements, arrangements and understandings (written or oral and formal or informal and whether monetary or non-monetary) during the past three years, and any other relationships, between or among any Nominating Person or Eligible Stockholder, on the one hand, and each proposed nominee, and his or her respective affiliates and associates, or others acting in concert therewith, on the other hand, including, without limitation all information that would be required to be disclosed pursuant to Item 404 or any successor provision promulgated under Regulation S-K if the Nominating Person or Eligible Stockholder were the “registrant” for purposes of such Item and the nominee were a director or executive officer of such

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registrant, (e) a representation regarding whether a Nominating Person intends, or is part of a group that intends, to solicit proxies in support of director nominees other than the Corporation’s nominees in accordance with Rule 14a-19 promulgated under the Exchange Act, and, in the event that a Nominating Person so intends, or is part of a group that so intends, a written agreement (in the form provided by the Secretary of the Corporation upon written request), on behalf of such Nominating Person and any group of which it is a member, in which such Nominating Person acknowledges and agrees (A) that it, or the group of which it is a part, intends to solicit the holders of shares representing at least 67% of the voting power of the Corporation’s shares entitled to vote on the election of directors in support of such director nominees other than the Corporation’s nominees in accordance with Rule 14a-19(a)(3) promulgated under the Exchange Act, (B) that it shall notify the Secretary of the Corporation promptly if any change occurs with respect to the intent of such Nominating Person or the group of which such Nominating Person is a part to solicit the holders of shares representing at least 67% of the voting power of shares entitled to vote on the election of directors in support of director nominees other than the Corporation’s nominees or with respect to the names of such Nominating Person’s nominees, (C) that if such Nominating Person or the group of which it is a part (i) provides notice pursuant to Rule 14a-19(a)(1) promulgated under the Exchange Act and (ii) subsequently fails to comply with the requirements of Rule 14a-19(a)(2) and Rule 14a-19(a)(3) promulgated under the Exchange Act, then the Corporation shall disregard any proxies or votes solicited for such Nominating Person’s nominees, and (D) that, upon request by the Corporation, if such Nominating Person or the group of which it is a part provides notice pursuant to Rule 14a-19(a)(1) promulgated under the Exchange Act, such Nominating Person shall deliver to the Corporation, no later than five business days prior to the applicable meeting, reasonable documentary evidence (as determined by the Corporation or one of its representatives, acting in good faith) that it has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act. Such notice shall be accompanied by a written consent of each such director nominee to being named in the proxy materials as a nominee, and (f) a completed and signed questionnaire, representation and agreements required by Section 9.01(D).

For purposes of these By-Laws, the term “Nominating Person” shall mean: (a) the stockholder providing the notice of the nomination proposed to be made at the meeting, (b) the beneficial owner or beneficial owners, if different, on whose behalf the notice of the nomination proposed to be made at the meeting is made, (c) any participant (as defined in paragraphs (a)(ii)-(vi) of Instruction 3 to Item 4 of Schedule 14A) with such stockholder or beneficial owner(s) in any solicitation of proxies in respect of any such proposed nomination, (d) any Affiliate (within the meaning of Rule 12b-2 under the Exchange Act for purposes of these By-Laws) of such stockholder or beneficial owner(s), (e) any person controlling, controlled by or under common control with such stockholder or beneficial owner(s), and (f) any person acting in concert with such stockholder or beneficial owner(s). In addition, such stockholder’s notice shall set forth the information required under Section 2.16 of these By-Laws. Notwithstanding the foregoing provisions of this Section 9.01(C), the Corporation also may require each person to be nominated to furnish such other information as may reasonably be required by the Corporation to determine the eligibility and qualifications of such person to serve as a director of the Corporation, including information relevant to a determination whether such person can be considered an independent director. No person shall be eligible for election as a director of the Corporation unless nominated in accordance with the procedures set forth in this Section 9.01 or in Section 9.02. Only such nominations of persons for election to the Board of Directors shall be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with the procedures set forth in this Section 9.01 and pursuant to Rule 14a-19 under the

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Exchange Act or in Section 9.02. Except as otherwise provided by law, the Certificate of Incorporation or these By-Laws, the Board of Directors or the person presiding over a meeting of stockholders shall have the power and duty to determine whether any nomination proposed by any stockholder to be brought before the meeting was made or proposed in accordance with the procedures set forth in the applicable section and, if any nomination is not in compliance with such section, then except as otherwise provided by law, the person presiding over the meeting of stockholders shall have the power and duty to declare that such defective nomination or other business shall be disregarded. In addition, a nomination proposed to be brought by a stockholder pursuant to this Section 9.01 may not be brought before a meeting if such stockholder or any Nominating Person or Eligible Stockholder takes action contrary to the representations made in the stockholder notice applicable to such nomination or if the stockholder notice applicable to such nomination contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements therein not misleading or, if after being submitted to the Corporation, the stockholder notice applicable to such nomination was not updated in accordance with these By-Laws to cause the information provided in the stockholder notice to be true, correct and complete in all respects. A stockholder is not entitled to have its nomination included in the Corporation’s proxy materials solely as a result of such stockholder’s compliance with the provisions of this Section 9.01, except if such nominees are also submitted in accordance and in compliance with Rule 14a-19 under the Exchange Act and other applicable requirements of state and federal law.

(D)    For a stockholder nominee to be eligible for election as a director of the Corporation, a person must deliver (in accordance with the time periods prescribed for delivery of notice under Section 2.15(B)) to the Secretary at the principal executive offices of the Corporation a written questionnaire with respect to the background and qualification of such person and the background of any other person or entity on whose behalf the nomination is being made (which questionnaire shall be provided by the Secretary upon written request by a stockholder of record) and a written representation and agreement (in the form provided by the Secretary upon written request by a stockholder of record) that such person (1) is not and will not become a party to (a) any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how such person, if elected as a director of the Corporation, will act or vote on any issue or question (a “Voting Commitment”) that has not been disclosed to the Corporation or (b) any Voting Commitment that could limit or interfere with such person’s ability to comply, if elected as a director of the Corporation, with such person’s fiduciary duties under applicable law, (2) is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director that has not been disclosed therein, (3) has disclosed to the Corporation any and all potential and actual conflicts of interest of such nominee with the Corporation and (4) in such person’s individual capacity and on behalf of any person or entity on whose behalf the nomination is being made, would be in compliance, if elected as a director of the Corporation, and will comply with all applicable corporate governance, conflict of interest, confidentiality and stock ownership and trading policies and guidelines of the Corporation, and any other Corporation policies and guidelines applicable to directors.

(E)    A stockholder shall update and supplement its notice to the Corporation of any nomination proposed to be made at a meeting, if necessary, so that the information provided or required to be provided in such notice (including any information submitted regarding any Nominating Person, Eligible Stockholder, or candidate whom a Nominating Person proposes to nominate for election as a director) shall be true and

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correct as of (1) the record date for the determination of persons entitled to receive notice of the meeting and (2) the date that is five business days prior to the meeting and, in the event of any adjournment or postponement thereof, five business days prior to such adjourned or postponed meeting. In the case of an update and supplement pursuant to clause (1) above, such update and supplement shall be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than two business days after the record date for the determination of persons entitled to receive notice of the meeting. In the case of an update and supplement pursuant to clause (2) above, such update and supplement shall be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than two business days prior to the date for the meeting, and, in the event of any adjournment or postponement thereof, two business days prior to such adjourned or postponed meeting. The obligation to update and supplement set forth in this paragraph or any other section of these By-Laws shall not cure or limit the Corporation’s rights with respect to any deficiencies in any notice provided by a stockholder, extend any applicable deadlines hereunder or under any other provision of the By-Laws or enable or be deemed to permit a stockholder who has previously submitted notice hereunder or under any other provision of the By-Laws to amend or update any nomination or to submit any new nomination, including by changing or adding nominees proposed to be brought before a meeting of stockholders.

(F)    In addition to the foregoing provisions of this Section 9.01, a stockholder shall comply with all applicable requirements of the Exchange Act (including Rule 14a-19 promulgated thereunder) and Delaware Law with respect to the matters set forth in this Section 9.01.

(G)    Without limiting the other provisions and requirements of this Section 9.01, unless otherwise required by applicable law, if any stockholder (i) provides notice pursuant to Rule 14a-19(a)(1) promulgated under the Exchange Act and (ii) subsequently fails to comply with the requirements of Rule 14a-19(a)(2) and Rule 14a-19(a)(3) promulgated under the Exchange Act, then the Corporation shall disregard any proxies or votes solicited for such stockholder’s nominees. Upon request by the Corporation, if any stockholder provides notice pursuant to Rule 14a-19(a)(1) promulgated under the Exchange Act, such stockholder shall deliver to the Corporation, no later than five business days prior to the applicable meeting, reasonable documentary evidence (as determined by the Corporation or one of its representatives, acting in good faith) that it has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act.

(H)    A stockholder is not entitled to have its nominees included in the Corporation’s proxy materials as a result of such stockholder’s compliance with the provisions of this Section 9.01, except if such nominees are also submitted in accordance and in compliance with Rule 14a-19 promulgated under the Exchange Act and other applicable requirements of state and federal law.

Section 9.02    (A) Subject to the terms and conditions of these By-Laws, in connection with an annual meeting of stockholders at which directors are to be elected, the Corporation will include in its proxy statement and on its form of proxy the name of a nominee for election to the Board of Directors submitted pursuant to this Section 9.02 (a “Stockholder Nominee”), and will include in its proxy statement the “Required Information” (as defined in Section 9.02(D)), if:

(1)    the Stockholder Nominee satisfies the eligibility requirements in this Section 9.02,

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(2)    the Stockholder Nominee is identified in a timely notice (the “Stockholder Notice”) that satisfies this Section 9.02 and is delivered by a stockholder that qualifies as, or is acting on behalf of, an Eligible Stockholder,

(3)    the Eligible Stockholder expressly elects at the time of the delivery of the Stockholder Notice to have the Stockholder Nominee included in the Corporation’s proxy materials, and

(4)    the additional requirements of these By-Laws are met.

(B)    To qualify as an “Eligible Stockholder,” a stockholder or a group as described in this Section 9.02(B) must:

(1)    Own and have Owned (as defined in Section 9.02(C)), continuously for at least three years as of the date of the Stockholder Notice, a number of shares (as adjusted for any stock splits, stock dividends, or similar events) that represents at least three percent (3%) of the outstanding shares of the Corporation that are entitled to vote in the election of directors as of the date of the Stockholder Notice (the “Required Shares”), and

(2)    thereafter continue to Own the Required Shares through such annual meeting of stockholders.

For purposes of satisfying the ownership requirements of this Section 9.02(B), a group of no more than twenty stockholders and/or beneficial owners may aggregate the number of shares of capital stock that each group member Owns and has Owned continuously for at least three years as of the date of the Stockholder Notice. No stockholder or beneficial owner, alone or together with any of its affiliates, may individually or as a member of a group qualify as more than one Eligible Stockholder under this Section 9.02. A group of any two or more funds that are (a) under common management and funded primarily by the same employer, or (b) constitute a “group of investment companies,” as such term is defined in Section 12(d)(1)(G)(ii) of the Investment Company Act of 1940, as amended, (but without regard to whether such investment companies are registered pursuant to the Investment Company Act of 1940, as amended) shall be treated as one stockholder or beneficial owner for purposes of this Section 9.02. Whenever an Eligible Stockholder consists of a group of stockholders and/or beneficial owners, any and all requirements and obligations for an Eligible Stockholder set forth in this Section 9.02 must be satisfied by and as to each such stockholder or beneficial owner, except that shares may be aggregated as specified in this Section 9.02(B) and except as otherwise provided in this Section 9.02. The term “affiliate” or “affiliates” shall have the meanings ascribed thereto under the rules and regulations promulgated under the Exchange Act.

(C)    For purposes of this Section 9.02, the term “Own,” when used with respect to a stockholder or beneficial owner, shall have the meaning set forth in Section 2.04(F) and the terms “Owned,” “Owning” and other variations of the word “Own” shall have correlative meanings.

(D)    For purposes of this Section 9.02, the “Required Information” that the Corporation will include in its proxy statement is:

(1)    the information set forth in the Schedule 14N provided with the Stockholder Notice concerning each Stockholder Nominee and the Eligible

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Stockholder that is required to be disclosed in the Corporation’s proxy statement by the applicable requirements of the Exchange Act, and

(2)    if the Eligible Stockholder so elects, a single written statement of the Eligible Stockholder (or, in the case of a group, a single written statement of the group), not to exceed 500 words, in support of each Stockholder Nominee, which must be provided at the same time as the Stockholder Notice for inclusion in the Corporation’s proxy statement for the annual meeting (the “Statement”).

Notwithstanding anything to the contrary contained in this Section 9.02, the Corporation may omit from its proxy materials any information or Statement that it, in good faith, believes is untrue in any material respect (or omits a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading) or would violate any applicable law, rule, regulation or listing standard. Nothing in this Section 9.02 shall limit the Corporation’s ability to solicit against and include in its proxy materials its own statements relating to any Eligible Stockholder or Stockholder Nominee.

(E)    The Stockholder Notice shall set forth all information, representations and agreements required under Section 2.16 above (and for such purposes, references in Section 2.16 to the “beneficial owner” on whose behalf the nomination is made shall be deemed to refer to “Eligible Stockholder”), other than any such information, representations and agreements to be made relating specifically to the requirements of Rule 14a-19 promulgated under the Exchange Act, and in addition such Stockholder Notice shall include:

(1)    a copy of the Schedule 14N that has been or concurrently is filed with the SEC under the Exchange Act,

(2)    a statement of the Eligible Stockholder (and in the case of a group, the written agreement of each stockholder or beneficial owner whose shares are aggregated for purposes of constituting an Eligible Stockholder), which statement(s) shall also be included in the Schedule 14N filed with the SEC: (a) setting forth and certifying to the number of shares of capital stock the Eligible Stockholder Owns and has Owned (as defined in Section 9.02(C) of these By-Laws) continuously for at least three years as of the date of the Stockholder Notice, (b) agreeing to continue to Own such shares through the annual meeting, (c) agreeing that within five business days of being notified that its Stockholder Nominee will be included in the Corporation’s proxy materials for the relevant annual meeting, it will recall any of the Required Shares that have been loaned and continue to hold the Required Shares through the date of the annual meeting, and (d) stating whether it intends to maintain Ownership of the Required Shares for at least one year following the annual meeting,

(3)    the written agreement of the Eligible Stockholder (and in the case of a group, the written agreement of each stockholder or beneficial owner whose shares are aggregated for purposes of constituting an Eligible Stockholder) addressed to the Corporation, setting forth the following additional agreements, representations, and warranties:

(a)    it will provide (i) the information required under Section 2.16 as of the record date, (ii) written statements from the record holder and intermediaries as required under Section 9.02(G) verifying the Eligible Stockholder’s continuous Ownership of the Required Shares, as of the

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record date, and (iii) immediate notice to the Corporation if the Eligible Stockholder ceases to own any of the Required Shares prior to the annual meeting of stockholders,

(b)    it (i) acquired the Required Shares in the ordinary course of business and not with the intent to change or influence control at the Corporation, and does not presently have any such intent, (ii) has not nominated and will not nominate for election to the Board of Directors at the annual meeting any person other than the Stockholder Nominee(s) being nominated pursuant to this Section 9.02, (iii) has not engaged and will not engage in, and has not been and will not be a participant (as defined in Item 4 of Exchange Act Schedule 14A) in, a solicitation within the meaning of Exchange Act Rule 14a-1(l), in support of the election of any individual as a director at the annual meeting other than its Stockholder Nominee or a nominee of the Board of Directors, and (iv) will not distribute to any stockholder any form of proxy for the annual meeting other than the form distributed by the Corporation, and

(c)    it will (i) assume all liability stemming from any legal or regulatory violation arising out of the Eligible Stockholder’s communications with the stockholders of the Corporation or out of the information that the Eligible Stockholder provided to the Corporation, (ii) indemnify and hold harmless the Corporation and each of its directors, officers and employees individually against any liability, loss or damages in connection with any threatened or pending action, suit or proceeding, whether legal, administrative or investigative, against the Corporation or any of its directors, officers or employees arising out of any nomination submitted by the Eligible Stockholder pursuant to this Section 9.02, comply with all laws, rules, regulations and listing standards applicable to any solicitation in connection with the annual meeting, (iv) file all materials described below in Section 9.02(G)(3) with the SEC, regardless of whether any such filing is required under Exchange Act Regulation 14A, or whether any exemption from filing is available for such materials under Exchange Act Regulation 14A, and (v) promptly provide to the Corporation prior to the day of the annual meeting such additional information as reasonably requested by the Corporation, and

(4)    in the case of a nomination by a group, the designation by all group members of one group member that is authorized to act on behalf of all members of the nominating stockholder group with respect to the nomination and matters related thereto, including withdrawal of the nomination.

(F)    To be timely under this Section 9.02, the Stockholder Notice must be delivered by a stockholder to the Secretary of the Corporation at the principal executive offices of the Corporation not later than the close of business (as defined in Section 2.15(E) above) on the 120th day nor earlier than the close of business on the 150th day prior to the first anniversary of the preceding year’s annual meeting; provided, however, that in the event the annual meeting is more than 30 days before or after such anniversary date, or if no annual meeting was held in the preceding year, to be timely the Stockholder Notice must be so delivered not earlier than the close of business on the 150th day prior to such annual meeting and not later than the close of business on the later of the 120th day prior to such annual meeting or the 10th day following the day on which public announcement (as defined in Section 2.15(E) above) of the date of such meeting is first made by the Corporation. In no event shall an adjournment or recess of

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an annual meeting, or a postponement of an annual meeting for which notice has been given or with respect to which there has been a public announcement of the date of the meeting, commence a new time period (or extend any time period) for the giving of the Stockholder Notice as described above.

(G)    An Eligible Stockholder must:

(1)    within five business days after the date of the Stockholder Notice, provide to the Corporation one or more written statements from the record holder(s) of the Required Shares and from each intermediary through which the Required Shares are or have been held, in each case during the requisite three-year holding period, specifying the number of shares that the Eligible Stockholder Owns, and has Owned continuously in compliance with this Section 9.02,

(2)    include in the Schedule 14N filed with the SEC a statement by the Eligible Stockholder (and in the case of a group, by each stockholder or beneficial owner whose shares are aggregated for purposes of constituting and Eligible Stockholder) certifying (a) the number of shares of capital stock that it Owns and has Owned continuously for at least three years as of the date of the Stockholder Notice, and (b) that it Owns and has Owned such shares within the meaning of Section 9.02(C),

(3)    file with the SEC any solicitation or other communication by or on behalf of the Eligible Stockholder relating to the Corporation’s annual meeting of stockholders, one or more of the Corporation’s directors or director nominees or any Stockholder Nominee, regardless of whether any such filing is required under Exchange Act Regulation 14A or whether any exemption from filing is available for such solicitation or other communication under Exchange Act Regulation 14A,

(4)    in the case of any group, within five business days after the date of the Stockholder Notice, provide to the Corporation documentation reasonably satisfactory to the Corporation demonstrating that the number of stockholders and/or beneficial owners within such group does not exceed twenty, including whether a group of investment companies qualifies as one stockholder or beneficial owner within the meaning of Section 9.02(B), and

(5)    update and supplement the Stockholder Notice if necessary, so that the information provided or required to be provided in such notice (including any information submitted regarding any Eligible Stockholder or Stockholder Nominee) shall be true and correct as of (1) the record date for the determination of persons entitled to receive notice of the meeting and (2) the date that is five business days prior to the meeting and, in the event of any adjournment or postponement thereof, five business days prior to such adjourned or postponed meeting. In the case of an update and supplement pursuant to clause (1) above, such update and supplement shall be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than two business days after the record date for the determination of persons entitled to receive notice of the meeting. In the case of an update and supplement pursuant to clause (2) above, such update and supplement shall be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than two business days prior to the date for the meeting, and, in the event of any adjournment or postponement thereof, two business days prior to such adjourned or postponed meeting. The obligation to update and supplement set forth in this paragraph or any other section of these By-Laws

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shall not cure or limit the Corporation’s rights with respect to any deficiencies in any Stockholder Notice, extend any applicable deadlines hereunder or under any other provision of the By-Laws or enable or be deemed to permit a stockholder who has previously submitted a Stockholder Notice or a stockholder notice under any other provision of the By-Laws to amend or update any nomination or to submit any new nomination, including by changing or adding nominees proposed to be brought before a meeting of stockholders.

The information provided pursuant to this Section 9.02(G) shall be deemed part of the Stockholder Notice for purposes of this Section 9.02.

(H)    Within the time period for delivery of the Stockholder Notice, a written representation and agreement of each Stockholder Nominee shall be delivered to the Secretary of the Corporation at the principal executive offices of the Corporation, which shall be signed by each Stockholder Nominee and shall represent and agree that such Stockholder Nominee:

(1)    consents to being named in proxy materials as a nominee and to serving as a director if elected;

(2)    is not and will not become a party to any agreement, arrangement, or understanding with, and has not given any commitment or assurance to, any person or entity as to how such Stockholder Nominee, if elected as a director, will act or vote on any issue or question that has not been disclosed to the Corporation;

(3)    is not and will not become a party to any agreement, arrangement, or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement, or indemnification in connection with service or action as a director that has not been disclosed to the Corporation; and

(4)    if elected as a director, will comply with all of the Corporation’s corporate governance, conflict of interest, confidentiality, and stock ownership and trading policies and guidelines, and any other Corporation policies and guidelines applicable to directors.

At the time of submission of the Stockholder Notice, the Stockholder Nominee must submit all completed and signed questionnaires required of the Corporation’s directors and, at the request of the Corporation, provide to the Corporation such other information as it may reasonably request. The Corporation may request such additional information as necessary to permit the Board of Directors to determine if each Stockholder Nominee satisfies the requirements of this Section 9.02.

(I)    In the event that any information or communications provided by the Eligible Stockholder or any Stockholder Nominees to the Corporation or its stockholders is not, when provided, or thereafter ceases to be, true, correct and complete in all material respects (including omitting a material fact necessary to make the statements made, in light of the circumstances under which they were made, not misleading), such Eligible Stockholder or Stockholder Nominee, as the case may be, shall promptly notify the Secretary and provide the information that is required to make such information or communication true, correct, complete and not misleading; it being understood that providing any such notification shall not be deemed to cure any defect or limit the

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Corporation’s right to omit a Stockholder Nominee from its proxy materials as provided in this Section 9.02.

(J)    Notwithstanding anything to the contrary contained in this Section 9.02, the Corporation may omit from its proxy materials any Stockholder Nominee, and such nomination shall be disregarded and no vote on such Stockholder Nominee will occur, notwithstanding that proxies in respect of such vote may have been received by the Corporation, if:

(1)    the Eligible Stockholder or Stockholder Nominee breaches any of its respective agreements, representations, or warranties set forth in the Stockholder Notice (or otherwise submitted pursuant to this Section 9.02), any of the information in the Stockholder Notice (or otherwise submitted pursuant to this Section 9.02) was not, when provided, true, correct and complete, or the requirements of this Section 9.02 have otherwise not been met,

(2)    the Stockholder Nominee (a) is not independent under any applicable listing standards, any applicable rules of the SEC, and any publicly disclosed standards used by the Board of Directors in determining and disclosing the independence of the Corporation’s Directors, (b) does not qualify as independent under the audit committee independence requirements set forth in the rules of the principal U.S. exchange on which shares of the Corporation are listed, as a “non-employee director” under Exchange Act Rule 16b-3, or as an “outside director” for the purposes of Section 162(m) of the Internal Revenue Code (or any successor provision), (c) is or has been, within the past three years, an officer or director of a competitor, as defined in Section 8 of the Clayton Antitrust Act of 1914, as amended, (d) is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses) or has been convicted in a criminal proceeding (excluding traffic violations and other minor offenses) within the past ten years or (e) is subject to any order of the type specified in Rule 506(d) of Regulation D promulgated under the Securities Act of 1933, as amended,

(3)    the Corporation has received a notice (whether or not subsequently withdrawn) that a stockholder intends to nominate any candidate for election to the Board of Directors pursuant to the advance notice requirements for stockholder nominees for director in Section 9.01 of this Article IX,

(4)    the election of the Stockholder Nominee to the Board of Directors would cause the Corporation to violate the Certificate of Incorporation, these By-Laws, any applicable law, rule, regulation or listing standard, or

(5)    the Eligible Stockholder or applicable Stockholder Nominee fails to comply with its obligations pursuant to these By-Laws, including but not limited to its obligations under this Section 9.02.

(K)    The maximum number of Stockholder Nominees submitted by all Eligible Stockholders that may be included in the Corporation’s proxy materials pursuant to this Section 9.02, shall not exceed twenty percent (20%) of the number of directors in office as of the last day on which a Stockholder Notice may be delivered pursuant to this Section 9.02 with respect to the annual meeting, or if such amount is not a whole number, the closest whole number (rounding down) below twenty percent (20%) (such resulting number, the “Permitted Number”); provided that the Permitted Number shall be reduced by (1) any nominees who were previously elected to the Board of Directors as

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Stockholder Nominees at any of the preceding two annual meetings and who are nominated for election at such annual meeting by the Board of Directors as a Board of Directors nominee, and (2) any directors in office or director candidates that in either case will be included in the Corporation’s proxy materials with respect to such an annual meeting as an unopposed (by the Corporation) nominee pursuant to an agreement, arrangement or other understanding between the Corporation and a stockholder or group of stockholders (other than any such agreement, arrangement or understanding entered into in connection with an acquisition of capital stock, by such stockholder or group of stockholders, from the Corporation). In the event that one or more vacancies for any reason occurs after the date of the Stockholder Notice but before the annual meeting and the Board of Directors resolves to reduce the size of the Board of Directors in connection therewith, the Permitted Number shall be calculated based on the number of directors in office as so reduced. In the event that the number of Stockholder Nominees submitted by Eligible Stockholders pursuant to this Section 9.02 exceeds the Permitted Number, the Corporation shall determine which Stockholder Nominees shall be included in the Corporation’s proxy materials in accordance with the following provisions: each Eligible Stockholder will select one Stockholder Nominee for inclusion in the Corporation’s proxy materials until the Permitted Number is reached, going in order of the amount (largest to smallest) of shares of the Corporation each Eligible Stockholder disclosed as Owned in its respective Stockholder Notice submitted to the Corporation. If the Permitted Number is not reached after each Eligible Stockholder has selected one Stockholder Nominee, this selection process will continue as many times as necessary, following the same order each time, until the Permitted Number is reached. Following such determination, if any Stockholder Nominee who satisfies the eligibility requirements in this Section 9.02 thereafter is nominated by the Board of Directors, thereafter is not included in the Corporation’s proxy materials or thereafter is not submitted for director election for any reason (including the Eligible Stockholder’s or Stockholder Nominee’s failure to comply with this Section 9.02), no other nominee or nominees shall be included in the Corporation’s proxy materials or otherwise submitted for director election in substitution thereof.

(L)    Any Stockholder Nominee who is included in the Corporation’s proxy materials for a particular annual meeting of stockholders but either (1) withdraws from or becomes ineligible or unavailable for election at the annual meeting for any reason, including for the failure to comply with any provision of these By-Laws (provided that in no event shall any such withdrawal, ineligibility or unavailability commence a new time period (or extend any time period) for the giving of a Stockholder Notice) or (2) does not receive a number of votes cast in favor of his or her election at least equal to twenty-five percent (25%) of the shares present in person or represented by proxy and entitled to vote in the election of directors, will be ineligible to be a Stockholder Nominee pursuant to this Section 9.02 for the next two annual meetings.

(M)    The Board of Directors (and any other person or body authorized by the Board of Directors) shall have the power and authority to interpret this Section 9.02 and to make any and all determinations necessary or advisable to apply this Section 9.02 to any persons, facts or circumstances, including the power to determine (1) whether one or more stockholders or beneficial owners qualifies as an Eligible Stockholder, (2) whether a Stockholder Notice complies with this Section 9.02 and has otherwise met the requirements of this Section 9.02, (3) whether a Stockholder Nominee satisfies the qualifications and requirements in this Section 9.02, and (4) whether any and all requirements of this Section 9.02 have been satisfied. Any such interpretation or determination adopted in good faith by the Board of Directors (or any other person or body authorized by the Board of Directors) shall be binding on all persons, including the Corporation and its stockholders (including any beneficial owners). For purposes of

32

32

applying the requirements of this Section 9.02 (including Section 9.02(A)(2)), the number of Required Shares required to be Owned by any person or persons during any time period shall be adjusted, in the manner determined by the Board of Directors (or any authorized committee thereof) to account for any stock dividend, stock split, subdivision, combination, reclassification or recapitalization of capital stock. Notwithstanding the foregoing provisions of this Section 9.02, unless otherwise required by law or otherwise determined by the chairperson of the meeting or the Board of Directors, if the stockholder or a qualified representative of the stockholder (as defined in Section 2.04(E)) does not attend the annual meeting of stockholders of the Corporation to present its Stockholder Nominee or Stockholder Nominees, such nomination or nominations shall be disregarded, notwithstanding that proxies in respect of the election of the Stockholder Nominee or Stockholder Nominees may have been received by the Corporation. This Section 9.02 shall be the exclusive method for stockholders to include nominees for director election in the Corporation’s proxy materials (other than with respect to Rule 14a-19 under the Exchange Act to the extent applicable to the Corporation’s proxy card).

ARTICLE X
AMENDMENTS

Section 10.01    These By-Laws may be amended or repealed by the affirmative vote of a majority of the stockholders entitled to vote thereon or a majority of the directors then in office at any regular meeting of the stockholders or of the Board of Directors, respectively, or at any special meeting of the stockholders or of the Board of Directors, respectively, if notice of such proposed alteration or repeal be contained in the notice of such meeting. The stockholders may determine by majority vote that any action taken by them with respect to adoption, amendment or repeal of any part of these By-Laws shall not be subject to subsequent amendment or repeal by the Board of Directors, provided that any such determination shall be set forth in the appropriate place in the text of these By-Laws.

ARTICLE XI
FORUM PROVISIONS

Section 11.01    Unless the Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for any (a) derivative action or proceeding brought on behalf of the Corporation, (b) action asserting a claim of breach of a fiduciary duty owed by any current or former director, officer or other employee of the Corporation to the Corporation or the Corporation’s stockholders, (c) action asserting a claim arising pursuant to any provision of Delaware Law or the Certificate of Incorporation or these By-Laws (as any of the foregoing may be amended from time to time) or (d) action asserting a claim governed by the internal affairs doctrine, shall be the Court of Chancery in the State of Delaware (or, if the Court of Chancery does not have jurisdiction, the federal district court for the District of Delaware). If any action the subject matter of which is within the scope of the preceding sentence is filed in a court other than a court located within the State of Delaware in accordance with the preceding sentence (a “Foreign Action”) in the name of any stockholder, such stockholder shall be deemed to have consented to (i) the personal jurisdiction of the state and federal courts located within the State of Delaware in connection with any action brought in any such court to enforce the preceding sentence and (ii) having service of process made upon such holder in any such action by service upon such stockholder’s counsel in the Foreign Action as agent for such stockholder.

33

33

Unless the Corporation consents in writing to the selection of an alternative forum, the federal district courts of the United States of America shall be, to the fullest extent permitted by law, the sole and exclusive forum for any action asserting a claim arising under the Securities Act of 1933.

34

34

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Andrés Gluski, certify that:

1.I have reviewed this Form 10-Q of The AES Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 3, 2023

/s/ ANDRÉS GLUSKI

Name: Andrés Gluski

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Stephen Coughlin, certify that:

1.I have reviewed this Form 10-Q of The AES Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 3, 2023

/s/ STEPHEN COUGHLIN

Name: Stephen Coughlin

Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF PERIODIC FINANCIAL REPORTS

I, Andrés Gluski, President and Chief Executive Officer of The AES Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)the Form 10-Q for the year ended June 30, 2023, (the “Periodic Report”) which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of The AES Corporation.

Date: August 3, 2023

/S/ ANDRÉS GLUSKI

Name: Andrés Gluski

President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF PERIODIC FINANCIAL REPORTS

I, Stephen Coughlin, Executive Vice President and Chief Financial Officer of The AES Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)the Form 10-Q for the year ended June 30, 2023, (the “Periodic Report”) which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2)information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of The AES Corporation.

Date: August 3, 2023

/s/ STEPHEN COUGHLIN

Name: Stephen Coughlin

Executive Vice President and Chief Financial Officer

XML

Document And Entity Information - $ / shares	6 Months Ended
	Jun. 30, 2023	Aug. 01, 2023	Dec. 31, 2022
Document Information [Line Items]
City Area Code	(703)
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	4300 Wilson Boulevard
Entity Tax Identification Number	54-1163725
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2023
Entity File Number	1-12291
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Registrant Name	THE AES CORPORATION
Entity Central Index Key	0000874761
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		669,629,035
Common Stock, Par or Stated Value Per Share	$ 0.01		$ 0.01
Entity Address, Postal Zip Code	22203
Entity Address, City or Town	Arlington,
Entity Address, State or Province	VA
Local Phone Number	522-1315
Document Transition Report	false
Document Quarterly Report	true
Common Stock [Member]
Document Information [Line Items]
Trading Symbol	AES
Entity Listing, Description	NYSE
Title of 12(b) Security	Common Stock, par value $0.01 per share
corporate units
Document Information [Line Items]
Trading Symbol	AESC
Entity Listing, Description	NYSE
Title of 12(b) Security	Corporate Units

XML

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash and cash equivalents	$ 1,322,000,000	$ 1,374,000,000
Restricted cash	517,000,000	536,000,000
Short-term investments	713,000,000	730,000,000
Accounts receivable, net of allowance for doubtful accounts of $8 and $5, respectively	1,710,000,000	1,799,000,000
Inventory	774,000,000	1,055,000,000
Prepaid expenses	218,000,000	98,000,000
Other current assets	1,449,000,000	1,533,000,000
Current held-for-sale assets	502,000,000	518,000,000
Total current assets	7,205,000,000	7,643,000,000
Property, Plant and Equipment:
Land	490,000,000	470,000,000
Electric generation, distribution assets and other	27,312,000,000	26,599,000,000
Accumulated depreciation	(8,413,000,000)	(8,651,000,000)
Construction in progress	6,688,000,000	4,621,000,000
Property, plant and equipment, net	26,077,000,000	23,039,000,000
Other Assets:
Investments in and advances to affiliates	858,000,000	952,000,000
Debt service reserves and other deposits	171,000,000	177,000,000
Goodwill	362,000,000	362,000,000
Other intangible assets, net of accumulated amortization of $475 and $434, respectively	2,282,000,000	1,841,000,000
Deferred income taxes	383,000,000	319,000,000
Loan receivable, net of allowance	1,018,000,000	1,051,000,000
Other noncurrent assets, net of allowance of $21 and $51, respectively	3,149,000,000	2,979,000,000
Total other assets	8,223,000,000	7,681,000,000
TOTAL ASSETS	41,505,000,000	38,363,000,000
CURRENT LIABILITIES
Accounts payable	1,583,000,000	1,730,000,000
Accrued interest	303,000,000	249,000,000
Accrued non-income taxes	228,000,000	249,000,000
Accrued and other liabilities	2,232,000,000	2,151,000,000
Recourse debt current	500,000,000	0
Non-recourse debt, including $896 and $416, respectively, related to variable interest entities	2,445,000,000	1,758,000,000
Current held-for-sale liabilities	337,000,000	354,000,000
Total current liabilities	7,628,000,000	6,491,000,000
NONCURRENT LIABILITIES
Recourse debt	4,976,000,000	3,894,000,000
Non-recourse debt, including $2,032 and $2,295, respectively, related to variable interest entities	18,622,000,000	17,846,000,000
Deferred income taxes	1,104,000,000	1,139,000,000
Other noncurrent liabilities	3,128,000,000	3,168,000,000
Total noncurrent liabilities	27,830,000,000	26,047,000,000
Redeemable Noncontrolling Interest, Equity, Carrying Amount	1,289,000,000	1,321,000,000
THE AES CORPORATION STOCKHOLDERS’ EQUITY
Preferred Stock, Value, Issued	838,000,000	838,000,000
Common Stock, Value, Issued	8,000,000	8,000,000
Additional paid-in capital	6,550,000,000	6,688,000,000
Accumulated deficit	(1,523,000,000)	(1,635,000,000)
Accumulated other comprehensive loss	(1,567,000,000)	(1,640,000,000)
Treasury Stock, Value	(1,814,000,000)	(1,822,000,000)
Total AES Corporation stockholders’ equity	2,492,000,000	2,437,000,000
NONCONTROLLING INTERESTS	2,266,000,000	2,067,000,000
Total equity	4,758,000,000	4,504,000,000
TOTAL LIABILITIES AND EQUITY	$ 41,505,000,000	$ 38,363,000,000
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Issued	1,043,050	1,043,050
Common stock, shares authorized (in shares)	1,200,000,000	1,200,000,000
Common stock, shares outstanding (in shares)	669,385,716	668,743,464
Common stock, shares issued (in shares)	818,808,272	818,790,001
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Outstanding	1,043,050	1,043,050
Treasury Stock, Common, Shares	149,422,556	150,046,537

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Credit Loss, Current	$ 8	$ 5
Common stock, shares authorized (in shares)	1,200,000,000	1,200,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Issued	1,043,050	1,043,050
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Accounts receivable, net of allowance for doubtful accounts of $8 and $5, respectively	$ 8	$ 5
Other intangible assets, net of accumulated amortization of $475 and $434, respectively	475	434
Other Noncurrent Assets, Allowance	$ 21	$ 51
Preferred Stock, Shares Outstanding	1,043,050	1,043,050
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	818,808,272	818,790,001
Common stock, shares outstanding (in shares)	669,385,716	668,743,464
Variable Interest Entity [Line Items]
Non-recourse debt, including $896 and $416, respectively, related to variable interest entities	$ 2,445	$ 1,758
Non-recourse debt, including $2,032 and $2,295, respectively, related to variable interest entities	18,622	17,846
Consolidated Variable Interest Entities [Member]
Variable Interest Entity [Line Items]
Non-recourse debt, including $896 and $416, respectively, related to variable interest entities	896	416
Non-recourse debt, including $2,032 and $2,295, respectively, related to variable interest entities	$ 2,032	$ 2,295

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total Revenue	$ 3,027	$ 3,078	$ 6,266	$ 5,930
Cost of Goods and Services Sold	(2,529)	(2,515)	(5,174)	(4,837)
Operating margin	498	563	1,092	1,093
General and administrative expenses	(72)	(46)	(127)	(98)
Interest expense	(310)	(279)	(640)	(537)
Interest income	131	95	254	170
Loss on extinguishment of debt	0	(1)	(1)	(7)
Other expense	(12)	(29)	(26)	(41)
Other income	14	70	24	76
Loss on disposal and sale of business interests	(4)	(2)	(4)	(1)
Asset impairment expense	(174)	(482)	(194)	(483)
Foreign currency transaction gains (losses)	(67)	(49)	(109)	(68)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES	4	(160)	269	104
Income tax benefit (expense)	2	19	(70)	(41)
Net equity in earnings (losses) of affiliates	(25)	5	(29)	(28)
NET INCOME (LOSS)	(19)	(136)	170	35
Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	(20)	(43)	(58)	(99)
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	$ (39)	$ (179)	$ 112	$ (64)
Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax	$ (0.06)	$ (0.27)	$ 0.17	$ (0.10)
Income (loss) from continuing operations, net of tax	$ (39)	$ (179)	$ 112	$ (64)
Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax	$ (0.06)	$ (0.27)	$ 0.16	$ (0.10)
Earnings Per Share, Basic	(0.06)	(0.27)	0.17	(0.10)
Earnings Per Share, Diluted	$ (0.06)	$ (0.27)	$ 0.16	$ (0.10)
DILUTED SHARES OUTSTANDING	669	668	712	668
BASIC EARNINGS PER SHARE:
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS	$ (0.06)	$ (0.27)	$ 0.17	$ (0.10)
DILUTED EARNINGS PER SHARE:
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS	$ (0.06)	$ (0.27)	$ 0.16	$ (0.10)
DILUTED SHARES OUTSTANDING	669	668	712	668
Electric Transmission [Member]
Total Revenue	$ 834	$ 802	$ 1,786	$ 1,637
Cost of Goods and Services Sold	(747)	(734)	(1,595)	(1,439)
Electricity, Generation [Member]
Total Revenue	2,193	2,276	4,480	4,293
Cost of Goods and Services Sold	$ (1,782)	$ (1,781)	$ (3,579)	$ (3,398)

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
NET INCOME (LOSS)	$ (19)	$ (136)	$ 170	$ 35
Foreign currency translation activity:
Foreign currency translation adjustments, net of $0 income tax for all periods	79	(149)	119	(17)
Total foreign currency translation adjustment, net of income tax	79	(149)	119	(17)
Derivative activity:
Change in derivative fair value, net of income tax expense of $36, $61, $5, and $134, respectively	124	270	2	542
Reclassification to earnings, net of income tax benefit (expense) of $2, $(3), $11 and $(13), respectively	(7)	20	(48)	38
Total change in fair value of derivatives	117	290	(46)	580
Pension activity:
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax	0	0	(1)	0
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	0	0	0	1
Total pension adjustments	0	0	(1)	(1)
OTHER COMPREHENSIVE INCOME	196	141	74	564
COMPREHENSIVE INCOME	177	5	244	599
Less: Comprehensive income attributable to noncontrolling interests and redeemable stock of subsidiaries	(41)	(75)	(59)	(157)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	$ 136	$ (70)	$ 185	$ 442

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
OCI, Foreign Currency Transaction and Translation Gain (Loss), Arising During Period, Tax	$ 0	$ 0	$ 0	$ 0
Change in derivative fair value, net of income tax expense of $36, $61, $5, and $134, respectively	(36)	(61)	(5)	(134)
Reclassification to earnings, net of income tax benefit (expense) of $2, $(3), $11 and $(13), respectively	2	(3)	$ 11	$ (13)
Change in pension adjustments due to net actuarial gain (loss) for the period, income tax (expense) benefit		$ 0
Pension, Reclassifications to Earnings, Net of Income Tax (expense) benefit	$ 0

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
OPERATING ACTIVITIES:
Net income	$ 170	$ 35
Adjustments to net income:
Depreciation and amortization	550	534
Loss on disposal and sale of business interests	4	1
Impairment expense	199	483
Deferred income taxes	(119)	(43)
Loss on extinguishment of debt	1	7
Loss of affiliates, net of dividends	29	52
Emissions Allowance Expense	139	239
Loss on realized/unrealized foreign currency	71	20
Other	99	28
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	60	(262)
(Increase) decrease in inventory	276	(227)
(Increase) decrease in prepaid expenses and other current assets	71	(187)
(Increase) decrease in other assets	74	94
Increase (decrease) in accounts payable and other current liabilities	(305)	151
Increase (decrease) in income tax payables, net and other tax payables	(85)	(114)
Increase (decrease) in deferred income	42	59
Increase (decrease) in other liabilities	(89)	(5)
Net cash provided by operating activities	1,187	865
INVESTING ACTIVITIES:
Capital expenditures	(3,396)	(1,659)
Payments to Acquire Businesses and Interest in Affiliates	290	107
Proceeds from Divestiture of Businesses and Interests in Affiliates	98	1
Sale of short-term investments	706	345
Purchase of short-term investments	(620)	(694)
Contributions and loans to equity affiliates	(112)	(169)
Payments to Acquire Intangible Assets	(115)	(293)
Other investing	(21)	(7)
Net cash used in investing activities	(3,750)	(2,583)
FINANCING ACTIVITIES:
Borrowings under the revolving credit facilities and commercial paper program	16,716	3,100
Repayments under the revolving credit facilities and commercial paper program	(15,809)	(2,269)
Issuance of recourse debt	1,400	0
Repayments of recourse debt	0	(29)
Issuance of non-recourse debt	1,457	3,132
Repayments of non-recourse debt	(944)	(1,469)
Payments for financing fees	(67)	(38)
Purchases under supplier financing arrangements	(818)	(173)
Repayments of obligations under supplier financing arrangements	862	134
Distributions to noncontrolling interests	(147)	(93)
Acquisitions of noncontrolling interests	(1)	(540)
Contributions from noncontrolling interests	18	28
Sales to Noncontrolling Interests	189	229
Issuance of Preferred Shares in Subsidiaries	3	60
Dividends paid on AES common stock	(222)	(211)
Payments for financed capital expenditures	(7)	(9)
Other financing	(13)	(6)
Net cash provided by financing activities	2,529	1,924
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(37)	(18)
Net Cash Change Of Discontinued And Held For Sale Businesses	(6)	(21)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(77)	167
Cash, cash equivalents and restricted cash, beginning	2,087	1,484
Cash, cash equivalents and restricted cash, ending	2,010	1,651
SUPPLEMENTAL DISCLOSURES:
Cash payments for interest, net of amounts capitalized	512	423
Cash payments for income taxes, net of refunds	200	141
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Noncash or Part Noncash Divestiture, Amount of Consideration Received	218	15
Non-cash contributions from noncontrolling interests	$ 30	$ 0

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Condensed Consolidated Statements of Changes in Equity Statement - USD ($) $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Preferred Stock	Treasury Stock, Common
Beginning Balance (Shares) at Dec. 31, 2021		818,700,000					1,000,000.0	152,000,000.0
Beginning Balance at Dec. 31, 2021		$ 8	$ 7,106	$ (1,089)	$ (2,220)	$ 1,769	$ 838	$ (1,845)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			0	115	0	94
Total foreign currency translation adjustment, net of income tax			0	0	131	1
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax			0	0	265	22
Total pension adjustments, net of income tax			0	0	1	0
OTHER COMPREHENSIVE INCOME					397	23
Distributions to noncontrolling interests			0	0	0	(25)
Acquisition of subsidiary shares from noncontrolling interests			(93)	0	(76)	(367)
Contributions from noncontrolling interests			0	0	0	86
Sales to noncontrolling interests			7	0	0	30
Dividends declared on common stock			(105)	0	0	0
Issuance and exercise of stock-based compensation benefit plans (Shares)		0						(1,100,000)
Issuance and exercise of stock-based compensation benefit plans, net of income tax		$ 0	(12)	0	0	0		$ (13)
Common Stock, Dividends, Per Share, Declared	$ 0.1580
Ending Balance (Shares) at Mar. 31, 2022		818,700,000					1,000,000.0	150,900,000
Ending Balance at Mar. 31, 2022		$ 8	6,903	(974)	(1,899)	1,670	$ 838	$ (1,832)
Beginning Balance (Shares) at Dec. 31, 2021		818,700,000					1,000,000.0	152,000,000.0
Beginning Balance at Dec. 31, 2021		$ 8	7,106	(1,089)	(2,220)	1,769	$ 838	$ (1,845)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 35
Total foreign currency translation adjustment, net of income tax	(17)
Total pension adjustments, net of income tax	(1)
OTHER COMPREHENSIVE INCOME	564
Issuance of Preferred Shares in Subsidiaries	60
Ending Balance (Shares) at Jun. 30, 2022		818,700,000					1,000,000.0	150,900,000
Ending Balance at Jun. 30, 2022		$ 8	6,924	(1,153)	(1,790)	1,858	$ 838	$ (1,832)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred Stock, Shares Issued							0
Preferred Stock, Value, Issued							$ 0
Proceeds from Issuance of Convertible Preferred Stock			0	0	0	60
Beginning Balance (Shares) at Mar. 31, 2022		818,700,000					1,000,000.0	150,900,000
Beginning Balance at Mar. 31, 2022		$ 8	6,903	(974)	(1,899)	1,670	$ 838	$ (1,832)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(136)	0	0	(179)	0	50
Total foreign currency translation adjustment, net of income tax	(149)	0	0	0	(146)	(3)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax		0	0	0	255	15
Total pension adjustments, net of income tax	0
OTHER COMPREHENSIVE INCOME	141				109	12
Distributions to noncontrolling interests		0	0	0	0	(45)
Acquisition of subsidiary shares from noncontrolling interests			0	0	0	(2)
Contributions from noncontrolling interests	$ 3
Sales to noncontrolling interests		$ 0	10	0	0	170
Issuance and exercise of stock-based compensation benefit plans (Shares)		0						0
Issuance and exercise of stock-based compensation benefit plans, net of income tax		$ 0	(11)	0	0	0		$ 0
Ending Balance (Shares) at Jun. 30, 2022		818,700,000					1,000,000.0	150,900,000
Ending Balance at Jun. 30, 2022		$ 8	6,924	(1,153)	(1,790)	1,858	$ 838	$ (1,832)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred Stock, Shares Issued	1,043,050
Preferred Stock, Value, Issued	$ 838
Stockholders' Equity Attributable to Parent	$ 2,437
Preferred Stock, Shares Issued	1,043,050
Preferred Stock, Value, Issued	$ 838
Stockholders' Equity Attributable to Parent	(1,635)
Beginning Balance (Shares) at Dec. 31, 2022		818,800,000					1,000,000.0	150,000,000.0
Beginning Balance at Dec. 31, 2022	$ 4,504	$ 8	6,688	(1,635)	(1,640)	2,067	$ 838	$ (1,822)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			0	151	0	52
Total foreign currency translation adjustment, net of income tax			0	0	33	7
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax			0	0	(135)	1
Total pension adjustments, net of income tax			0	0	0	1
OTHER COMPREHENSIVE INCOME					(102)	9
Distributions to noncontrolling interests			0	0	0	(37)
Acquisition of subsidiary shares from noncontrolling interests			(1)	0	0	1
Contributions from noncontrolling interests			0	0	0	2
Sales to noncontrolling interests			(7)	0	0	3
Issuance of Preferred Shares in Subsidiaries			0	0	0	4
Dividends declared on common stock			(111)	0	0	0
Issuance and exercise of stock-based compensation benefit plans (Shares)		0						(500,000)
Issuance and exercise of stock-based compensation benefit plans, net of income tax		$ 0	(12)	0	0	0		$ (7)
Common Stock, Dividends, Per Share, Declared	$ 0.1659
Ending Balance (Shares) at Mar. 31, 2023		818,800,000					1,000,000.0	149,500,000
Ending Balance at Mar. 31, 2023		$ 8	6,557	(1,484)	(1,742)	2,101	$ 838	$ (1,815)
Beginning Balance (Shares) at Dec. 31, 2022		818,800,000					1,000,000.0	150,000,000.0
Beginning Balance at Dec. 31, 2022	$ 4,504	$ 8	6,688	(1,635)	(1,640)	2,067	$ 838	$ (1,822)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	170
Total foreign currency translation adjustment, net of income tax	119
Total pension adjustments, net of income tax	(1)
OTHER COMPREHENSIVE INCOME	74
Issuance of Preferred Shares in Subsidiaries	3
Ending Balance (Shares) at Jun. 30, 2023		818,800,000					1,000,000.0	149,400,000
Ending Balance at Jun. 30, 2023	4,758	$ 8	6,550	(1,523)	(1,567)	2,266	$ 838	$ (1,814)
Beginning Balance (Shares) at Mar. 31, 2023		818,800,000					1,000,000.0	149,500,000
Beginning Balance at Mar. 31, 2023		$ 8	6,557	(1,484)	(1,742)	2,101	$ 838	$ (1,815)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(19)		0	(39)	0	42
Total foreign currency translation adjustment, net of income tax	79		0	0	74	4
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax			0	0	101	0
Total pension adjustments, net of income tax	0
OTHER COMPREHENSIVE INCOME	196				175	4
Distributions to noncontrolling interests			0	0	0	(90)
Sales to noncontrolling interests			(17)	0	0	209
Issuance and exercise of stock-based compensation benefit plans (Shares)		0						(100,000)
Issuance and exercise of stock-based compensation benefit plans, net of income tax		$ 0	(10)	0	0	0		$ (1)
Ending Balance (Shares) at Jun. 30, 2023		818,800,000					1,000,000.0	149,400,000
Ending Balance at Jun. 30, 2023	4,758	$ 8	$ 6,550	$ (1,523)	$ (1,567)	$ 2,266	$ 838	$ (1,814)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' Equity Attributable to Parent	$ 2,492
Preferred Stock, Shares Issued	1,043,050
Preferred Stock, Value, Issued	$ 838
Stockholders' Equity Attributable to Parent	$ (1,523)

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Inventory

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

INVENTORY

INVENTORY

The following table summarizes the Company’s inventory balances as of the periods indicated (in millions):

	June 30, 2023		December 31, 2022
Fuel and other raw materials	$	483	$	733
Spare parts and supplies	291		322
Total	$	774	$	1,055

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Fair Value

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE

FAIR VALUE

The fair value of current financial assets and liabilities, debt service reserves, and other deposits approximate their reported carrying amounts. The estimated fair values of the Company’s assets and liabilities have been determined using available market information. Because these amounts are estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 5—Fair Value in Item 8.—Financial Statements and Supplementary Data of our 2022 Form 10-K.

Recurring Measurements

The following table presents, by level within the fair value hierarchy, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated (in millions). For the Company’s investments in marketable debt securities, the security classes presented were determined based on the nature and risk of the security and are consistent with how the Company manages, monitors, and measures its marketable securities:

	June 30, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:
Certificates of deposit	$	—	$	677	$	—	$	677	$	—	$	698	$	—	$	698
Government debt securities	—		3		—		3		—		3		—		3
Total debt securities	—		680		—		680		—		701		—		701
EQUITY SECURITIES:
Mutual funds	44		—		—		44		38		—		—		38
Total equity securities	44		6		—		50		38		—		—		38
DERIVATIVES:
Interest rate derivatives	—		273		—		273		—		314		—		314
Foreign currency derivatives	—		23		63		86		—		22		64		86
Commodity derivatives	—		233		7		240		—		232		13		245
Total derivatives — assets	—		529		70		599		—		568		77		645
TOTAL ASSETS	$	44	$	1,215	$	70	$	1,329	$	38	$	1,269	$	77	$	1,384
Liabilities
Contingent consideration	$	—	$	—	$	274	$	274	$	—	$	—	$	48	$	48
DERIVATIVES:
Interest rate derivatives	—		15		1		16		—		6		—		6
Cross-currency derivatives	—		76		—		76		—		42		—		42
Foreign currency derivatives	—		22		—		22		—		20		—		20
Commodity derivatives	—		212		85		297		—		346		60		406
Total derivatives — liabilities	—		325		86		411		—		414		60		474
TOTAL LIABILITIES	$	—	$	325	$	360	$	685	$	—	$	414	$	108	$	522

As of June 30, 2023, all available-for-sale debt securities had stated maturities within one year. There were no other-than-temporary impairments of marketable securities during the three and six months ended June 30, 2023. The level 3 contingent consideration relates mainly to the acquisition of Bellefield on June 5, 2023. For further information on the acquisition, see Note 17—Acquisitions. Credit-related impairments are recognized in earnings under ASC 326. Gains and losses on the sale of investments are determined using the specific-identification method. The following table presents gross proceeds from the sale of available-for-sale securities during the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Gross proceeds from sale of available-for-sale securities	$	370	$	150	$	739	$	347

The following tables present a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2023 and 2022 (presented net by type of derivative in millions). Transfers between Level 3 and Level 2 principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.

	Derivative Assets and Liabilities
Three Months Ended June 30, 2023	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at April 1	$	(5)	$	62	$	(69)	$	(55)	$	(67)
Total realized and unrealized gains (losses):
Included in earnings	—		7		(1)		(1)		5
Included in other comprehensive income (loss) — derivative activity	16		3		(10)		—		9
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		—		—
Included in regulatory (assets) liabilities	—		—		3		—		3
Acquisitions	—		—		—		(218)		(218)
Settlements	(2)		(9)		(2)		—		(13)
Transfers of assets (liabilities), net into Level 3	—		—		—		—		—
Transfers of (assets) liabilities, net out of Level 3	(10)		—		1		—		(9)
Balance at June 30, 2023	$	(1)	$	63	$	(78)	$	(274)	$	(290)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	—	$	—	$	(2)	$	(1)	$	(3)
	Derivative Assets and Liabilities
Three Months Ended June 30, 2022	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at April 1	$	1	$	93	$	(13)	$	(69)	$	12
Total realized and unrealized gains (losses):
Included in earnings	1		(32)		(4)		—		(35)
Included in other comprehensive income (loss) — derivative activity	5		(11)		6		—		—
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		2		2
Included in regulatory (assets) liabilities	—		—		15		—		15
Acquisitions	—		—		—		(15)		(15)
Settlements	—		—		2		5		7
Transfers of assets (liabilities), net into Level 3	—		—		31		—		31
Transfers of (assets) liabilities, net out of Level 3	(6)		—		—		—		(6)
Balance at June 30, 2022	$	1	$	50	$	37	$	(77)	$	11
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	1	$	(32)	$	—	$	2	$	(29)

	Derivative Assets and Liabilities
Six Months Ended June 30, 2023	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at January 1	$	—	$	64	$	(47)	$	(48)	$	(31)
Total realized and unrealized gains (losses):
Included in earnings	—		6		(1)		(7)		(2)
Included in other comprehensive income (loss) — derivative activity	—		2		(27)		—		(25)
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		(1)		(1)
Included in regulatory (assets) liabilities	—		—		(2)		—		(2)
Acquisitions	—		—		—		(218)		(218)
Settlements	—		(9)		(2)		—		(11)
Transfers of assets (liabilities), net into Level 3	(1)		—		—		—		(1)
Transfers of (assets) liabilities, net out of Level 3	—		—		1		—		1
Balance at June 30, 2023	$	(1)	$	63	$	(78)	$	(274)	$	(290)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	—	$	(1)	$	(1)	$	(8)	$	(10)
	Derivative Assets and Liabilities
Six Months Ended June 30, 2022	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at January 1	$	(6)	$	108	$	(1)	$	(64)	$	37
Total realized and unrealized gains (losses):
Included in earnings	3		(44)		(4)		(1)		(46)
Included in other comprehensive income (loss) — derivative activity	10		(14)		(8)		—		(12)
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		(2)		(2)
Included in regulatory (assets) liabilities	—		—		15		—		15
Acquisitions	—		—		—		(15)		(15)
Settlements	—		—		2		5		7
Transfers of assets (liabilities), net into Level 3	—		—		31		—		31
Transfers of (assets) liabilities, net out of Level 3	(6)		—		2		—		(4)
Balance at June 30, 2022	$	1	$	50	$	37	$	(77)	$	11
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	3	$	(44)	$	1	$	(2)	$	(42)

The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of June 30, 2023 (in millions, except range amounts):

Type of Derivative	Fair Value		Unobservable Input	Amount or Range (Weighted Average)
Interest rate	$	(1)	Subsidiary credit spread	0.4% to 2.5% (1.7%)
Foreign currency:
Argentine peso	63		Argentine peso to U.S. dollar currency exchange rate after one year	576 to 957 (854)
Commodity:
CAISO Energy Swap	(86)		Forward energy prices per MWh after 2030	$12 to $97 ($52)
Other	8
Total	$	(16)

For interest rate derivatives and foreign currency derivatives, increases (decreases) in the estimates of the Company’s own credit spreads would decrease (increase) the value of the derivatives in a liability position. For foreign currency derivatives, increases (decreases) in the estimate of the above exchange rate would increase (decrease) the value of the derivative.

Contingent consideration is primarily related to future milestone payments associated with acquisitions of renewable development projects. The estimated fair value of contingent consideration is determined using probability-weighted discounted cash flows based on internal forecasts, which are considered Level 3 inputs. Changes in Level 3 inputs, particularly changes in the probability of achieving development milestones, could result in material changes to the fair value of the contingent consideration and could materially impact the amount of expense or income recorded each reporting period. Contingent consideration is updated quarterly with any

prospective changes in fair value recorded through earnings.

Nonrecurring Measurements

The Company measures fair value using the applicable fair value measurement guidance. Impairment expense, shown as pre-tax loss below, is measured by comparing the fair value at the evaluation date to the then-latest available carrying amount and is included in Asset impairment expense or Other non-operating expense, as applicable, on the Condensed Consolidated Statements of Operations. The following table summarizes our major categories of asset groups measured at fair value on a nonrecurring basis and their level within the fair value hierarchy (in millions).

	Measurement Date	Carrying Amount (1)		Fair Value						Pre-tax Loss
Six Months Ended June 30, 2023				Level 1		Level 2		Level 3
Long-lived assets held and used:
Norgener (2)	5/1/2023	$	196	$	—	$	—	$	24	$	137
GAF Projects (AES Renewable Holdings)	5/31/2023	29		—		—		11		18
Held-for-sale businesses: (3)
Jordan (4)	3/31/2023	$	179	$	—	$	170	$	—	$	14
Jordan (4)	6/30/2023	179		—		170		—		15
	Measurement Date	Carrying Amount (1)		Fair Value
Six Months Ended June 30, 2022				Level 1		Level 2		Level 3		Pre-tax Loss
Long-lived assets held and used:
Maritza	4/30/2022	$	927	$	—	$	—	$	452	$	475

_____________________________

(1)Represents the carrying values of the asset groups at the dates of measurement, before fair value adjustment.

(2)The Norgener asset group includes long-lived assets, inventory, land, and other working capital, however per ASC 360-10, the pre-tax impairment expense is limited to the carrying amount of the long-lived assets. See Note 15 — Asset Impairment Expense for further information. The Company evaluated the carrying amount of the assets outside the scope of ASC 360-10 and determined that the carrying value of the other assets should not be reduced.

(3)See Note 16 — Held-for-Sale for further information.

(4)The pre-tax loss recognized was calculated using the $170 million fair value of the Jordan disposal group less costs to sell of $5 million and $6 million for the March 31, 2023 and June 30, 2023 measurement dates, respectively.

The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets held and used measured on a nonrecurring basis during the six months ended June 30, 2023 (in millions, except range amounts):

	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Long-lived assets held and used:
Norgener (1)	$	24	Discounted cash flow	Annual revenue growth	(90)% to 994% (85%)
				Annual variable margin	(75)% to 276% (16%)
GAF Projects (AES Renewable Holdings)	11		Discounted cash flow	Annual revenue growth	(42)% to 44% (1%)
				Annual variable margin	(194)% to 77% (66%)
				Discount rate	9%
Total	$	35

_____________________________

(1)The fair value of the Norgener asset group is mainly related to existing coal inventory not subject to impairment under ASC 360-10.

Financial Instruments not Measured at Fair Value in the Condensed Consolidated Balance Sheets

The following table presents (in millions) the carrying amount, fair value, and fair value hierarchy of the Company’s financial assets and liabilities that are not measured at fair value in the Condensed Consolidated Balance Sheets as of the periods indicated, but for which fair value is disclosed:

		June 30, 2023
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	295	$	338	$	—	$	—	$	338
Liabilities:	Non-recourse debt	20,872		20,540		—		19,084		1,456
	Recourse debt	5,476		5,093		—		5,093		—

		December 31, 2022
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	255	$	294	$	—	$	—	$	294
Liabilities:	Non-recourse debt	19,429		18,527		—		17,089		1,438
	Recourse debt	3,894		3,505		—		3,505		—

_____________________________

(1)These amounts primarily relate to amounts impacted by the Stabilization Funds enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets.

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Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

For further information on the Company’s derivative and hedge accounting policies, see Note 1—General and Summary of Significant Accounting Policies—Derivatives and Hedging Activities of Item 8.—Financial Statements and Supplementary Data in the 2022 Form 10-K.

Volume of Activity — The following tables present the Company’s maximum notional (in millions) over the remaining contractual period by type of derivative as of June 30, 2023, regardless of whether they are in qualifying cash flow hedging relationships, and the dates through which the maturities for each type of derivative range:

Interest Rate and Foreign Currency Derivatives	Maximum Notional Translated to USD		Latest Maturity
Interest rate	$	7,062	2059
Cross-currency swaps (Brazilian real)	404		2026
Foreign Currency:
Chilean peso	173		2026
Euro	142		2025
Colombian peso	49		2024
Brazilian real	28		2024
Mexican peso	12		2024
Argentine peso	3		2026

Commodity Derivatives	Maximum Notional	Latest Maturity
Natural Gas (in MMBtu)	108	2029
Power (in MWhs)	18	2040
Coal (in Tons or Metric Tons)	5	2027

Accounting and Reporting — Assets and Liabilities — The following tables present the fair value of assets and liabilities related to the Company’s derivative instruments as of the periods indicated (in millions):

Fair Value	June 30, 2023						December 31, 2022
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	273	$	—	$	273	$	313	$	1	$	314
Foreign currency derivatives	29		57		86		27		59		86
Commodity derivatives	—		240		240		—		245		245
Total assets	$	302	$	297	$	599	$	340	$	305	$	645
Liabilities
Interest rate derivatives	$	16	$	—	$	16	$	6	$	—	$	6
Cross-currency derivatives	76		—		76		42		—		42
Foreign currency derivatives	3		19		22		9		11		20
Commodity derivatives	86		211		297		59		347		406
Total liabilities	$	181	$	230	$	411	$	116	$	358	$	474

	June 30, 2023				December 31, 2022
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	310	$	127	$	271	$	168
Noncurrent	289		284		374		306
Total	$	599	$	411	$	645	$	474

Earnings and Other Comprehensive Income (Loss) — The following table presents the pre-tax gains (losses) recognized in AOCL and earnings related to all derivative instruments for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives	$	160	$	323	$	22	$	627
Foreign currency derivatives	4		(24)		12		(12)
Commodity derivatives	(4)		32		(27)		61
Total	$	160	$	331	$	7	$	676
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives	$	13	$	(23)	$	49	$	(50)
Foreign currency derivatives	(3)		—		(3)		—
Commodity derivatives	(1)		—		13		(1)
Total	$	9	$	(23)	$	59	$	(51)
Gains (losses) on fair value hedging relationship
Cross-currency derivatives	$	(33)	$	8	$	(86)	$	(35)
Hedged items	3		(25)		53		22
Total	$	(30)	$	(17)	$	(33)	$	(13)
Loss reclassified from AOCL to earnings due to impairment of assets	$	—	$	(16)	$	—	$	(16)
Gains (losses) reclassified from AOCL to earnings due to discontinuance of hedge accounting	$	13	$	(15)	14		(15)
Gains (losses) recognized in earnings related to
Not designated as hedging instruments:
Interest rate derivatives	$	—	$	1	$	—	$	3
Foreign currency derivatives	4		4		—		(15)
Commodity derivatives and other	126		30		191		17
Total	$	130	$	35	$	191	$	5

AOCL is expected to increase pre-tax income from continuing operations for the twelve months ended June 30, 2024 by $39 million, primarily due to interest rate derivatives.

FAIR VALUE

FAIR VALUE

The fair value of current financial assets and liabilities, debt service reserves, and other deposits approximate their reported carrying amounts. The estimated fair values of the Company’s assets and liabilities have been determined using available market information. Because these amounts are estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 5—Fair Value in Item 8.—Financial Statements and Supplementary Data of our 2022 Form 10-K.

Recurring Measurements

The following table presents, by level within the fair value hierarchy, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated (in millions). For the Company’s investments in marketable debt securities, the security classes presented were determined based on the nature and risk of the security and are consistent with how the Company manages, monitors, and measures its marketable securities:

	June 30, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:
Certificates of deposit	$	—	$	677	$	—	$	677	$	—	$	698	$	—	$	698
Government debt securities	—		3		—		3		—		3		—		3
Total debt securities	—		680		—		680		—		701		—		701
EQUITY SECURITIES:
Mutual funds	44		—		—		44		38		—		—		38
Total equity securities	44		6		—		50		38		—		—		38
DERIVATIVES:
Interest rate derivatives	—		273		—		273		—		314		—		314
Foreign currency derivatives	—		23		63		86		—		22		64		86
Commodity derivatives	—		233		7		240		—		232		13		245
Total derivatives — assets	—		529		70		599		—		568		77		645
TOTAL ASSETS	$	44	$	1,215	$	70	$	1,329	$	38	$	1,269	$	77	$	1,384
Liabilities
Contingent consideration	$	—	$	—	$	274	$	274	$	—	$	—	$	48	$	48
DERIVATIVES:
Interest rate derivatives	—		15		1		16		—		6		—		6
Cross-currency derivatives	—		76		—		76		—		42		—		42
Foreign currency derivatives	—		22		—		22		—		20		—		20
Commodity derivatives	—		212		85		297		—		346		60		406
Total derivatives — liabilities	—		325		86		411		—		414		60		474
TOTAL LIABILITIES	$	—	$	325	$	360	$	685	$	—	$	414	$	108	$	522

As of June 30, 2023, all available-for-sale debt securities had stated maturities within one year. There were no other-than-temporary impairments of marketable securities during the three and six months ended June 30, 2023. The level 3 contingent consideration relates mainly to the acquisition of Bellefield on June 5, 2023. For further information on the acquisition, see Note 17—Acquisitions. Credit-related impairments are recognized in earnings under ASC 326. Gains and losses on the sale of investments are determined using the specific-identification method. The following table presents gross proceeds from the sale of available-for-sale securities during the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Gross proceeds from sale of available-for-sale securities	$	370	$	150	$	739	$	347

The following tables present a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2023 and 2022 (presented net by type of derivative in millions). Transfers between Level 3 and Level 2 principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.

	Derivative Assets and Liabilities
Three Months Ended June 30, 2023	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at April 1	$	(5)	$	62	$	(69)	$	(55)	$	(67)
Total realized and unrealized gains (losses):
Included in earnings	—		7		(1)		(1)		5
Included in other comprehensive income (loss) — derivative activity	16		3		(10)		—		9
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		—		—
Included in regulatory (assets) liabilities	—		—		3		—		3
Acquisitions	—		—		—		(218)		(218)
Settlements	(2)		(9)		(2)		—		(13)
Transfers of assets (liabilities), net into Level 3	—		—		—		—		—
Transfers of (assets) liabilities, net out of Level 3	(10)		—		1		—		(9)
Balance at June 30, 2023	$	(1)	$	63	$	(78)	$	(274)	$	(290)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	—	$	—	$	(2)	$	(1)	$	(3)
	Derivative Assets and Liabilities
Three Months Ended June 30, 2022	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at April 1	$	1	$	93	$	(13)	$	(69)	$	12
Total realized and unrealized gains (losses):
Included in earnings	1		(32)		(4)		—		(35)
Included in other comprehensive income (loss) — derivative activity	5		(11)		6		—		—
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		2		2
Included in regulatory (assets) liabilities	—		—		15		—		15
Acquisitions	—		—		—		(15)		(15)
Settlements	—		—		2		5		7
Transfers of assets (liabilities), net into Level 3	—		—		31		—		31
Transfers of (assets) liabilities, net out of Level 3	(6)		—		—		—		(6)
Balance at June 30, 2022	$	1	$	50	$	37	$	(77)	$	11
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	1	$	(32)	$	—	$	2	$	(29)

	Derivative Assets and Liabilities
Six Months Ended June 30, 2023	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at January 1	$	—	$	64	$	(47)	$	(48)	$	(31)
Total realized and unrealized gains (losses):
Included in earnings	—		6		(1)		(7)		(2)
Included in other comprehensive income (loss) — derivative activity	—		2		(27)		—		(25)
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		(1)		(1)
Included in regulatory (assets) liabilities	—		—		(2)		—		(2)
Acquisitions	—		—		—		(218)		(218)
Settlements	—		(9)		(2)		—		(11)
Transfers of assets (liabilities), net into Level 3	(1)		—		—		—		(1)
Transfers of (assets) liabilities, net out of Level 3	—		—		1		—		1
Balance at June 30, 2023	$	(1)	$	63	$	(78)	$	(274)	$	(290)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	—	$	(1)	$	(1)	$	(8)	$	(10)
	Derivative Assets and Liabilities
Six Months Ended June 30, 2022	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at January 1	$	(6)	$	108	$	(1)	$	(64)	$	37
Total realized and unrealized gains (losses):
Included in earnings	3		(44)		(4)		(1)		(46)
Included in other comprehensive income (loss) — derivative activity	10		(14)		(8)		—		(12)
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		(2)		(2)
Included in regulatory (assets) liabilities	—		—		15		—		15
Acquisitions	—		—		—		(15)		(15)
Settlements	—		—		2		5		7
Transfers of assets (liabilities), net into Level 3	—		—		31		—		31
Transfers of (assets) liabilities, net out of Level 3	(6)		—		2		—		(4)
Balance at June 30, 2022	$	1	$	50	$	37	$	(77)	$	11
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	3	$	(44)	$	1	$	(2)	$	(42)

The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of June 30, 2023 (in millions, except range amounts):

Type of Derivative	Fair Value		Unobservable Input	Amount or Range (Weighted Average)
Interest rate	$	(1)	Subsidiary credit spread	0.4% to 2.5% (1.7%)
Foreign currency:
Argentine peso	63		Argentine peso to U.S. dollar currency exchange rate after one year	576 to 957 (854)
Commodity:
CAISO Energy Swap	(86)		Forward energy prices per MWh after 2030	$12 to $97 ($52)
Other	8
Total	$	(16)

For interest rate derivatives and foreign currency derivatives, increases (decreases) in the estimates of the Company’s own credit spreads would decrease (increase) the value of the derivatives in a liability position. For foreign currency derivatives, increases (decreases) in the estimate of the above exchange rate would increase (decrease) the value of the derivative.

Contingent consideration is primarily related to future milestone payments associated with acquisitions of renewable development projects. The estimated fair value of contingent consideration is determined using probability-weighted discounted cash flows based on internal forecasts, which are considered Level 3 inputs. Changes in Level 3 inputs, particularly changes in the probability of achieving development milestones, could result in material changes to the fair value of the contingent consideration and could materially impact the amount of expense or income recorded each reporting period. Contingent consideration is updated quarterly with any

prospective changes in fair value recorded through earnings.

Nonrecurring Measurements

The Company measures fair value using the applicable fair value measurement guidance. Impairment expense, shown as pre-tax loss below, is measured by comparing the fair value at the evaluation date to the then-latest available carrying amount and is included in Asset impairment expense or Other non-operating expense, as applicable, on the Condensed Consolidated Statements of Operations. The following table summarizes our major categories of asset groups measured at fair value on a nonrecurring basis and their level within the fair value hierarchy (in millions).

	Measurement Date	Carrying Amount (1)		Fair Value						Pre-tax Loss
Six Months Ended June 30, 2023				Level 1		Level 2		Level 3
Long-lived assets held and used:
Norgener (2)	5/1/2023	$	196	$	—	$	—	$	24	$	137
GAF Projects (AES Renewable Holdings)	5/31/2023	29		—		—		11		18
Held-for-sale businesses: (3)
Jordan (4)	3/31/2023	$	179	$	—	$	170	$	—	$	14
Jordan (4)	6/30/2023	179		—		170		—		15
	Measurement Date	Carrying Amount (1)		Fair Value
Six Months Ended June 30, 2022				Level 1		Level 2		Level 3		Pre-tax Loss
Long-lived assets held and used:
Maritza	4/30/2022	$	927	$	—	$	—	$	452	$	475

_____________________________

(1)Represents the carrying values of the asset groups at the dates of measurement, before fair value adjustment.

(2)The Norgener asset group includes long-lived assets, inventory, land, and other working capital, however per ASC 360-10, the pre-tax impairment expense is limited to the carrying amount of the long-lived assets. See Note 15 — Asset Impairment Expense for further information. The Company evaluated the carrying amount of the assets outside the scope of ASC 360-10 and determined that the carrying value of the other assets should not be reduced.

(3)See Note 16 — Held-for-Sale for further information.

(4)The pre-tax loss recognized was calculated using the $170 million fair value of the Jordan disposal group less costs to sell of $5 million and $6 million for the March 31, 2023 and June 30, 2023 measurement dates, respectively.

The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets held and used measured on a nonrecurring basis during the six months ended June 30, 2023 (in millions, except range amounts):

	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Long-lived assets held and used:
Norgener (1)	$	24	Discounted cash flow	Annual revenue growth	(90)% to 994% (85%)
				Annual variable margin	(75)% to 276% (16%)
GAF Projects (AES Renewable Holdings)	11		Discounted cash flow	Annual revenue growth	(42)% to 44% (1%)
				Annual variable margin	(194)% to 77% (66%)
				Discount rate	9%
Total	$	35

_____________________________

(1)The fair value of the Norgener asset group is mainly related to existing coal inventory not subject to impairment under ASC 360-10.

Financial Instruments not Measured at Fair Value in the Condensed Consolidated Balance Sheets

The following table presents (in millions) the carrying amount, fair value, and fair value hierarchy of the Company’s financial assets and liabilities that are not measured at fair value in the Condensed Consolidated Balance Sheets as of the periods indicated, but for which fair value is disclosed:

		June 30, 2023
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	295	$	338	$	—	$	—	$	338
Liabilities:	Non-recourse debt	20,872		20,540		—		19,084		1,456
	Recourse debt	5,476		5,093		—		5,093		—

		December 31, 2022
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	255	$	294	$	—	$	—	$	294
Liabilities:	Non-recourse debt	19,429		18,527		—		17,089		1,438
	Recourse debt	3,894		3,505		—		3,505		—

_____________________________

(1)These amounts primarily relate to amounts impacted by the Stabilization Funds enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets.

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Financing Receivables

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

FINANCING RECEIVABLES

FINANCING RECEIVABLES

Receivables with contractual maturities of greater than one year are considered financing receivables. The following table presents financing receivables by country as of the dates indicated (in millions):

	June 30, 2023						December 31, 2022
	Gross Receivable		Allowance		Net Receivable		Gross Receivable		Allowance		Net Receivable
Chile	$	244	$	—	$	244	$	239	$	—	$	239
U.S.	39		—		39		—		—		—
Other	13		—		13		18		—		18
Total	$	296	$	—	$	296	$	257	$	—	$	257

Chile — AES Andes has recorded receivables pertaining to revenues recognized on regulated energy contracts that were impacted by the Stabilization Funds created by the Chilean government in October 2019 and August 2022, in conjunction with the Tariff Stabilization Laws. Historically, the government updated the prices for these contracts every six months to reflect the contracts' indexation to exchange rates and commodities prices. The Tariff Stabilization Laws do not allow the pass-through of these contractual indexation updates to customers beyond the pricing in effect at July 1, 2019, until new lower-cost renewable contracts are incorporated to supply regulated contracts. Consequently, costs incurred in excess of the July 1, 2019 price are accumulated and borne by generators. Through different programs, AES Andes aims to reduce its exposure and has already sold a significant portion of the receivables accumulated as of December 31, 2021.

As of June 30, 2023, $226 million of noncurrent receivables were recorded in Other noncurrent assets pertaining to the Stabilization Funds. Additionally, $18 million of payment deferrals granted to mining customers as part of our green blend agreements were recorded as financing receivables included in Other noncurrent assets at June 30, 2023.

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Investment In and Advances To Affiliates

6 Months Ended

Jun. 30, 2023

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

INVESTMENTS IN AND ADVANCES TO AFFILIATES

Summarized Financial Information — The following table summarizes financial information of the Company’s 50%-or-less-owned affiliates and majority-owned unconsolidated subsidiaries that are accounted for using the equity method (in millions):

	50%-or-less Owned Affiliates				Majority-Owned Unconsolidated Subsidiaries
Six Months Ended June 30,	2023		2022		2023		2022
Revenue	$	1,370	$	792	$	1	$	1
Operating loss	(34)		(249)		—		—
Net loss	(91)		(323)		—		—
Net loss attributable to affiliates	(72)		(275)		—		—

sPower — In December 2022, the Company agreed to sell 49% of its indirect interest in a portfolio of sPower's operating assets ("OpCo B"). On February 28, 2023, sPower closed on the sale for $196 million. As a result of the transaction, the Company received $98 million in sales proceeds and recorded a pre-tax gain on sale of $5 million, recorded in Loss on disposal and sale of business interests. After the sale, the Company's ownership interest in OpCo B decreased from 50% to approximately 26%. As the Company still does not control but has significant influence over sPower after the transaction, it continues to be accounted for as an equity method investment and is reported in the Renewables SBU reportable segment.

Alto Maipo — In May 2022, Alto Maipo emerged from bankruptcy in accordance with Chapter 11 of the U.S. Bankruptcy Code. Alto Maipo, as restructured, is considered a VIE. As the Company lacks the power to make significant decisions, it does not meet the criteria to be considered the primary beneficiary of Alto Maipo and therefore does not consolidate the entity. The Company has elected the fair value option to account for its investment in Alto Maipo as management believes this approach will better reflect the economics of its equity interest. As of June 30, 2023, the fair value is insignificant. Alto Maipo is reported in the Energy Infrastructure SBU reportable segment.

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Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

DEBT

DEBT

Recourse Debt

Senior Notes due 2028 — In May 2023, the Company issued $900 million aggregate principal of 5.45% senior notes due in 2028. The Company used the proceeds from this issuance for general corporate purposes and to fund investments in the Company’s Renewables and Utilities SBUs.

AES Clean Energy Development — In March 2023, AES Clean Energy Development Holdings, LLC executed a $500 million bridge loan due in December 2023 and used the proceeds for general corporate purposes. The obligations under the bridge loan are unsecured and are fully guaranteed by the Parent Company.

Commercial Paper Program — In March 2023, the Company established a commercial paper program under which the Company may issue unsecured commercial paper notes (the “Notes”) up to a maximum aggregate face amount of $750 million outstanding at any time. The maturities of the Notes may vary but will not exceed 397 days from the date of issuance. The proceeds of the Notes will be used for general corporate purposes. The Notes will be sold on customary terms in the U.S. commercial paper market on a private placement basis. The Company must have revolving credit facilities in place, and the Company cannot issue commercial paper in an aggregate amount exceeding the then available capacity under its revolving credit facilities. As of June 30, 2023, the Company had $517 million outstanding borrowings under the commercial paper program with a weighted average interest rate of 6.06%. The Notes are classified as noncurrent.

Non-Recourse Debt

During the six months ended June 30, 2023, the Company’s subsidiaries had the following significant debt transactions (in millions):

Subsidiary	Transaction Period	Issuances		Repayments		Loss on Extinguishment of Debt
Netherlands and Colon	Q1	$	350	$	(500)	$	(1)
AES Brasil	Q1	169		—		—
AES Clean Energy	Q2	497		—		—
AES Ohio	Q2	100		—		—

Netherlands and Colon — In March 2022, AES Hispanola Holdings BV, a Netherlands based company, and Colon, as co-borrowers, executed a $500 million bridge loan due in 2023. The Company allocated $450 million and $50 million of the proceeds from the agreement to AES Hispanola Holdings BV and Colon, respectively.

In January 2023, AES Hispanola Holdings BV and Colon, as co-borrowers, executed a $350 million credit agreement at 8.85%, due in 2028. The Company allocated $300 million and $50 million of the proceeds from the agreement to AES Hispanola Holdings BV and Colon, respectively. The net proceeds from the agreement were used to partially repay the $500 million bridge loan executed in 2022. The remaining principal outstanding of the bridge loan was repaid with proceeds from operating cash flows as well as cash from the Parent Company. As a result of these transactions, the Company recognized a loss on extinguishment of debt of $1 million for the six months ended June 30, 2023.

United Kingdom — On January 6, 2022, Mercury Chile HoldCo LLC (“Mercury Chile”), a UK based company, executed a $350 million bridge loan, and used the proceeds, as well as an additional capital contribution of $196 million from the Parent Company, to purchase the minority interest in AES Andes through intermediate holding companies (see Note 11—Equity for further information). On January 24, 2022, Mercury Chile issued $360 million aggregate principal of 6.5% senior secured notes due in 2027 and used the proceeds from the issuance to fully prepay the $350 million bridge loan.

AES Clean Energy — In December 2022, AES Clean Energy Development, AES Renewable Holdings, and sPower, an equity method investment, collectively referred to as the Issuers, entered into a Master Indenture agreement whereby long-term notes will be issued from time to time to finance or refinance operating wind, solar, and energy storage projects that are owned by the Issuers. On December 13, 2022, the Issuers entered into the Note Purchase Agreement for the issuance of up to $647 million of 6.55% Senior Notes due in 2047. The notes were sold on December 14, 2022, at par for $647 million. In 2023, the Issuers sold an additional $246 million in 6.37% notes, resulting in aggregate principal amount of notes issued of $893 million. Each of the Issuers is considered a “Co-Issuer” and will be jointly and severally liable with each other Co-Issuer for all obligations under the facility. As a result of the 2023 issuance, AES Clean Energy Development recorded an increase in liabilities of $215 million, resulting in an aggregate carrying amount of the notes attributable to AES Clean Energy Development and AES Renewable Holdings of $252 million as of June 30, 2023.

In 2021, AES Clean Energy Development, AES Renewable Holdings, and sPower, collectively referred to as the Borrowers, executed two Credit Agreements with aggregate commitments of $1.2 billion and maturity dates in December 2024 and September 2025. The Borrowers executed amendments to the revolving credit facilities, which resulted in an aggregate increase in the commitments of $2.1 billion, bringing the total commitments under the new agreements to $3.3 billion. Under a 2023 amendment, the maturity date of one of the Credit Agreements was extended from December 2024 to May 2026. Each of the Borrowers is considered a “Co-Borrower” and will be jointly and severally liable with each other Co-Borrower for all obligations under the facilities. As a result of increases in commitments used, AES Clean Energy Development and AES Renewable Holdings recorded, in aggregate, an increase in liabilities of $641 million in 2023, resulting in total commitments used under the revolving credit facilities, as of June 30, 2023, of $1.9 billion. As of June 30, 2023, the aggregate commitments used under the revolving credit facilities for the Co-Borrowers was $2.5 billion.

Non-Recourse Debt Covenants, Restrictions, and Defaults — The terms of the Company's non-recourse debt include certain financial and nonfinancial covenants. These covenants are limited to subsidiary activity and vary among the subsidiaries. These covenants may include, but are not limited to, maintenance of certain reserves and financial ratios, minimum levels of working capital, and limitations on incurring additional indebtedness.

As of June 30, 2023 and December 31, 2022, approximately $402 million and $424 million, respectively, of restricted cash was maintained in accordance with certain covenants of the non-recourse debt agreements. These amounts were included within Restricted cash and Debt service reserves and other deposits in the accompanying Condensed Consolidated Balance Sheets.

Various lender and governmental provisions restrict the ability of certain of the Company's subsidiaries to transfer their net assets to the Parent Company. Such restricted net assets of subsidiaries amounted to approximately $1.8 billion at June 30, 2023.

The following table summarizes the Company’s subsidiary non-recourse debt in default (in millions) as of June 30, 2023. Due to the defaults, these amounts are included in the current portion of non-recourse debt unless otherwise indicated:

Subsidiary	Primary Nature of Default	Debt in Default		Net Assets (Liabilities)
AES Maritza(1)	Covenant	$	164	$	314
AES Puerto Rico	Covenant/Payment	143		(173)
AES Ilumina (Puerto Rico)	Covenant	25		28
AES Jordan Solar	Covenant	7		11
Total		$	339

_____________________________

(1)In July 2023, AES Maritza and its lenders reached an agreement to waive the potential covenant defaults through late September 2023. The associated non-recourse debt is classified as noncurrent in the accompanying Condensed Consolidated Balance Sheets

The amounts in default related to AES Puerto Rico are covenant and payment defaults. In July 2023, AES Puerto Rico signed forbearance and standstill agreements with its noteholders because of the insufficiency of funds to meet the principal and interest obligations on its Series A Bond Loans due and payable on June 1, 2023, and going forward. AES Puerto Rico continues to work with PREPA and its noteholders on these liquidity challenges. These agreements will expire on October 15, 2023.

All other defaults listed are not payment defaults. All other subsidiary non-recourse defaults were triggered by failure to comply with covenants or other requirements contained in the non-recourse debt documents of the applicable subsidiary.

The AES Corporation’s recourse debt agreements include cross-default clauses that will trigger if a subsidiary or group of subsidiaries for which the non-recourse debt is in default provides 20% or more of the Parent Company’s total cash distributions from businesses for the four most recently completed fiscal quarters. As of June 30, 2023, the Company had no defaults which resulted in, or were at risk of triggering, a cross-default under the recourse debt of the Parent Company. In the event the Parent Company is not in compliance with the financial covenants of its revolving credit facility, restricted payments will be limited to regular quarterly shareholder dividends at the then-prevailing rate. Payment defaults and bankruptcy defaults would preclude the making of any restricted payments.

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Contingencies and Commitments

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES AND COMMITMENTS

COMMITMENTS AND CONTINGENCIES

Guarantees, Letters of Credit and Commitments — In connection with certain project financings, acquisitions and dispositions, power purchases and other 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. In the normal course of business, the Parent Company has entered into various agreements, mainly guarantees and letters of credit, to provide financial or performance assurance to third parties on behalf of AES businesses. These agreements are entered into primarily to support or enhance the creditworthiness otherwise achieved by a business on a stand-alone basis, thereby facilitating the availability of sufficient credit to accomplish their intended business purposes. Most of the contingent obligations relate to future performance commitments which the Company or its businesses expect to fulfill within the normal course of business. The expiration dates of these guarantees vary from less than one year to no more than 17 years.

The following table summarizes the Parent Company’s contingent contractual obligations as of June 30, 2023. Amounts presented in the following table represent the Parent Company’s current undiscounted exposure to guarantees and the range of maximum undiscounted potential exposure and excludes guarantees presented on the Condensed Consolidated Balance Sheets within Recourse debt. The maximum exposure is not reduced by the amounts, if any, that could be recovered under the recourse or collateralization provisions in the guarantees.

Contingent Contractual Obligations	Amount (in millions)		Number of Agreements	Maximum Exposure Range for Each Agreement (in millions)
Guarantees and commitments	$	2,610	69	<$1 — 505
Letters of credit under bilateral agreements	123		2	$59 — 64
Letters of credit under the revolving credit facility	100		11	<$1 — 60
Letters of credit under the unsecured credit facilities	95		33	<$1 — 36
Surety bonds	2		2	<$1 — 1
Total	$	2,930	117

During the six months ended June 30, 2023, the Company paid letter of credit fees ranging from 1% to 3% per annum on the outstanding amounts of letters of credit.

Contingencies

Environmental — The Company periodically reviews its obligations as they relate to compliance with environmental laws, including site restoration and remediation. For the periods ended June 30, 2023 and December 31, 2022, the Company recognized liabilities of $10 million for projected environmental remediation costs. Due to the uncertainties associated with environmental assessment and remediation activities, future costs of compliance or remediation could be higher or lower than the amount currently accrued. Moreover, where no liability has been recognized, it is reasonably possible that the Company may be required to incur remediation costs or make expenditures in amounts that could be material but could not be estimated as of June 30, 2023. In aggregate, the Company estimates the range of potential losses related to environmental matters, where estimable, to be up to $13 million. The amounts considered reasonably possible do not include amounts accrued as discussed above.

Litigation — The Company is involved in certain claims, suits and legal proceedings in the normal course of business. The Company accrues for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company has recognized aggregate liabilities for all claims of approximately $26 million and $22 million as of June 30, 2023 and December 31, 2022, respectively. These amounts are reported on the Condensed Consolidated Balance Sheets within Accrued and other liabilities and Other noncurrent liabilities. A significant portion of these accrued liabilities relate to regulatory matters and commercial disputes in international jurisdictions. There can be no assurance that these accrued liabilities will be adequate to cover all existing and future claims or that we will have the liquidity to pay such claims as they arise.

Where no accrued liability has been recognized, it is reasonably possible that some matters could be decided unfavorably to the Company and could require the Company to pay damages or make expenditures in amounts that could be material but could not be estimated as of June 30, 2023. The material contingencies where a loss is reasonably possible primarily include disputes with offtakers, suppliers and EPC contractors; alleged breaches of contract; alleged violation of laws and regulations; income tax and non-income tax matters with tax authorities; and regulatory matters. In aggregate, the Company estimates the range of potential losses, where estimable, related to these reasonably possible material contingencies to be between $53 million and $89 million. The amounts considered reasonably possible do not include the amounts accrued, as discussed above. These material contingencies do not include income tax-related contingencies which are considered part of our uncertain tax positions.

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Leases (Notes)

6 Months Ended

Jun. 30, 2023

Lessor, Lease, Description [Line Items]

Lessor, Operating Leases

LEASES

LESSOR — The Company has operating leases for certain generation contracts that contain provisions to provide capacity to a customer, which is a stand-ready obligation to deliver energy when required by the customer. Capacity receipts are generally considered lease elements as they cover the majority of available output from a facility. The allocation of contract payments between the lease and non-lease elements is made at the inception of the lease. Lease receipts from such contracts are recognized as lease revenue on a straight-line basis over the lease term, whereas variable lease receipts are recognized when earned.

The following table presents lease revenue from operating leases in which the Company is the lessor, recognized in Revenue on the Condensed Consolidated Statements of Operations for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
Operating Lease Revenue	2023		2022		2023		2022
Total lease revenue	$	136	$	140	$	257	$	274
Less: Variable lease revenue	(24)		(16)		(32)		(23)
Total Non-variable lease revenue	$	112	$	124	$	225	$	251

The following table presents the underlying gross assets and accumulated depreciation of operating leases included in Property, plant and equipment on the Condensed Consolidated Balance Sheets as of the periods indicated (in millions):

Property, Plant and Equipment, Net	June 30, 2023		December 31, 2022
Gross assets	$	1,355	$	1,319
Less: Accumulated depreciation	(176)		(139)
Net assets	$	1,179	$	1,180

The option to extend or terminate a lease is based on customary early termination provisions in the contract, such as payment defaults, bankruptcy, and lack of performance on energy delivery. The Company has not recognized any early terminations as of June 30, 2023. Certain leases may provide for variable lease payments based on usage or index-based (e.g., the U.S. Consumer Price Index) adjustments to lease payments.

The following table shows the future lease receipts as of June 30, 2023 for the remainder of 2023 through 2027 and thereafter (in millions):

	Future Cash Receipts for
	Sales-Type Leases		Operating Leases
2023	$	13	$	195
2024	25		391
2025	25		392
2026	25		280
2027	25		203
Thereafter	361		544
Total	$	474	$	2,005
Less: Imputed interest	(248)
Present value of total lease receipts	$	226

Battery Storage Lease Arrangements — The Company constructs and operates projects consisting only of a stand-alone battery energy storage system (“BESS”) facility, as well as projects that pair a BESS with solar energy systems. These projects allow more flexibility on when to provide energy to the grid. The Company will enter into PPAs for the full output of the facility that allow customers the ability to determine when to charge and discharge the BESS. These arrangements include both lease and non-lease elements under ASC 842, with the BESS component typically constituting a sales-type lease. The Company recognized lease income on sales-type leases through interest income of $3 million and $7 million for the three and six months ended June 30, 2023, respectively; and $13 million and $16 million for the three and six months ended June 30, 2022, respectively.

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Redeemable Stocks of Subsidiaries (Notes)

6 Months Ended

Jun. 30, 2023

Redeemable Stock of Subsidiaries [Abstract]

Redeemable Noncontrolling Interest [Table Text Block]

REDEEMABLE STOCK OF SUBSIDIARIES

The following table summarizes the Company’s redeemable stock of subsidiaries balances as of the periods indicated (in millions):

	June 30, 2023		December 31, 2022
IPALCO common stock	$	765	$	782
AES Clean Energy Development common stock	439		436
AES Clean Energy Development tax equity partnerships	66		86
Potengi common and preferred stock	19		17
Total redeemable stock of subsidiaries	$	1,289	$	1,321

Potengi — In March 2022, Tucano Holding I (“Tucano”), a subsidiary of AES Brasil, issued new shares in the Potengi wind development project. BRF S.A. (“BRF”) acquired shares representing 24% of the equity in the project for $12 million, reducing the Company’s indirect ownership interest in Potengi to 35.5%. As the Company maintained control after the transaction, Potengi continues to be consolidated by the Company. As part of the transaction, BRF was given an option to sell its entire ownership interest at the conclusion of the PPA term. As a result, the minority ownership interest is considered temporary equity, which will be adjusted for earnings or losses allocated to the noncontrolling interest under ASC 810. Any subsequent changes in the redemption value of the exit rights will be recognized in accordance with ASC 480-10-S99, as it is probable that the shares will become redeemable.

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Equity

1 Months Ended

Feb. 05, 2021

Equity [Abstract]

EQUITY

EQUITY

Equity Units

In March 2021, the Company issued 10,430,500 Equity Units with a total notional value of $1,043 million. Each Equity Unit has a stated amount of $100 and was initially issued as a Corporate Unit, consisting of a forward stock purchase contract (“2024 Purchase Contracts”) and a 10% undivided beneficial ownership interest in one share of 0% Series A Cumulative Perpetual Convertible Preferred Stock, issued without par and with a liquidation preference of $1,000 per share (“Series A Preferred Stock”).

The Company concluded that the Equity Units should be accounted for as one unit of account based on the economic linkage between the 2024 Purchase Contracts and the Series A Preferred Stock, as well as the Company's assessment of the applicable accounting guidance relating to combining freestanding instruments. The Equity Units represent mandatorily convertible preferred stock. Accordingly, the shares associated with the combined instrument are reflected in diluted earnings per share using the if-converted method.

In conjunction with the issuance of the Equity Units, the Company received approximately $1 billion in proceeds, net of underwriting costs and commissions, before offering expenses. The proceeds for the issuance of 1,043,050 shares are attributed to the Series A Preferred Stock for $838 million and $205 million for the present value of the quarterly payments due to holders of the 2024 Purchase Contracts ("Contract Adjustment Payments"). The proceeds will be used for the development of the AES renewable businesses, U.S. utility businesses, LNG infrastructure, and for other developments determined by management.

The Series A Preferred Stock will initially not bear any dividends and the liquidation preference of the convertible preferred stock will not accrete. The Series A Preferred Stock has no maturity date and will remain outstanding unless converted by holders or redeemed by the Company. Holders of the shares of the convertible preferred stock will have limited voting rights.

The Series A Preferred Stock is pledged as collateral to support holders’ purchase obligations under the 2024 Purchase Contracts and can be remarketed. In connection with any successful remarketing, the Company may increase the dividend rate, increase the conversion rate, and modify the earliest redemption date for the convertible preferred stock. After any successful remarketing in connection with which the dividend rate on the convertible preferred stock is increased, the Company will pay cumulative dividends on the convertible preferred stock, if declared by the board of directors, quarterly in arrears from the applicable remarketing settlement date.

Holders of Corporate Units may create Treasury Units or Cash Settled Units from their Corporate Units as provided in the Purchase Contract Agreement by substituting Treasury securities or cash, respectively, for the Convertible Preferred Stock comprising a part of the Corporate Units.

The Company may not redeem the Series A Preferred Stock prior to March 22, 2024. At the election of the Company, on or after March 22, 2024, the Company may redeem for cash, all or any portion of the outstanding shares of the Series A Preferred Stock at a redemption price equal to 100% of the liquidation preference, plus any accumulated and unpaid dividends.

The 2024 Purchase Contracts obligate the holders to purchase, on February 15, 2024, for a price of $100 in cash, a maximum number of 57,364,621 shares of the Company’s common stock (subject to customary anti-dilution adjustments). The 2024 Purchase Contract holders may elect to settle their obligation early, in cash. The Series A Preferred Stock is pledged as collateral to guarantee the holders’ obligations to purchase common stock under the terms of the 2024 Purchase Contracts. The initial settlement rate determining the number of shares that each holder must purchase will not exceed the maximum settlement rate and is determined over a market value averaging period preceding February 15, 2024.

The initial maximum settlement rate of 3.864 was calculated using an initial reference price of $25.88, equal to the last reported sale price of the Company’s common stock on March 4, 2021. As of June 30, 2023, due to the customary anti-dilution provisions, the maximum settlement rate was 3.8739, equivalent to a reference price of $25.81. If the applicable market value of the Company’s common stock is less than or equal to the reference price, the settlement rate will be the maximum settlement rate; and if the applicable market value of common stock is greater than the reference price, the settlement rate will be a number of shares of the Company’s common stock equal to $100 divided by the applicable market value. Upon successful remarketing of the Series A Preferred Stock (“Remarketed Series A Preferred Stock”), the Company expects to receive additional cash proceeds of $1 billion and issue shares of Remarketed Series A Preferred Stock.

The Company pays Contract Adjustment Payments to the holders of the 2024 Purchase Contracts at a rate of 6.875% per annum, payable quarterly in arrears on February 15, May 15, August 15, and November 15, commencing on May 15, 2021. The $205 million present value of the Contract Adjustment Payments at inception reduced the Series A Preferred Stock. As each quarterly Contract Adjustment Payment is made, the related liability is reduced and the difference between the cash payment and the present value will accrete to interest expense, approximately $5 million over the three-year term. As of June 30, 2023, the present value of the Contract Adjustment Payments was $54 million.

The holders can settle the purchase contracts early, for cash, subject to certain exceptions and conditions in the prospectus supplement. Upon early settlement of any purchase contracts, the Company will deliver the number of shares of its common stock equal to 85% of the number of shares of common stock that would have otherwise been deliverable.

Equity Transactions with Noncontrolling Interests

AES Clean Energy Tax Equity Partnerships — The majority of solar projects under AES Clean Energy have been financed with tax equity structures, in which tax equity investors receive a portion of the economic attributes of the facilities, including tax attributes, that vary over the life of the projects.

During the second quarter of 2023 and 2022, AES Clean Energy Development, through multiple transactions, sold noncontrolling interests in project companies to tax equity partners, resulting in increases to NCI of $208 million and $98 million, respectively. AES Clean Energy Development is reported in the Renewables SBU reportable segment.

Chile Renovables — Under its renewable partnership agreement with Global Infrastructure Management, LLC (“GIP”), AES Andes will contribute a specified pipeline of renewable development projects to Chile Renovables as the projects reach commercial operations, and GIP may make additional contributions to maintain its 49% ownership interest. In January 2022, AES Andes completed the sale of Andes Solar 2a to Chile Renovables for $37 million, resulting in an increase to NCI of $28 million and an increase to additional paid-in capital of $9 million. In June 2022, the sale of Los Olmos was completed for $80 million, resulting in an increase to NCI of $68 million and an increase to additional paid-in capital of $12 million. As the Company maintained control after these transactions, Chile Renovables continues to be consolidated by the Company within the Energy Infrastructure SBU reportable segment.

Guaimbê Holding — In January 2022, the Ventus wind complex and AGV solar complex were incorporated by Guaimbê Holding. Guaimbê Holding issued preferred shares representing 3.5% ownership in the subsidiary for total proceeds of $63 million. The transaction decreased the Company’s indirect ownership interest to 35.8%. As the Company maintained control after these transactions, Guaimbê Holding continues to be consolidated by the Company within the Renewables SBU reportable segment.

AES Andes — In January 2022, Inversiones Cachagua SpA (“Cachagua”) completed a tender offer for the shares of AES Andes held by minority shareholders for $522 million, net of transaction costs. Upon completion, AES' indirect beneficial interest in AES Andes increased from 67.1% to 98.1%. Through multiple transactions following the tender offer during the first quarter of 2022, Cachagua acquired an additional 0.8% ownership in AES Andes for $13 million, further increasing AES’ indirect beneficial interest to 98.9%. The tender offer and these follow-on the transactions resulted in a $169 million decrease to Parent Company Stockholder’s Equity due to a decrease in additional paid-in capital of $93 million and the reclassification of accumulated other comprehensive losses from NCI to AOCL of $76 million. AES Andes is reported in the Energy Infrastructure SBU reportable segment.

Accumulated Other Comprehensive Loss — The following table summarizes the changes in AOCL by component, net of tax and NCI, for the six months ended June 30, 2023 (in millions):

	Foreign currency translation adjustment, net		Unrealized derivative gains (losses), net		Unfunded pension obligations, net		Total
Balance at the beginning of the period	$	(1,828)	$	211	$	(23)	$	(1,640)
Other comprehensive income before reclassifications	107		9		—		116
Amount reclassified to earnings	—		(43)		—		(43)
Other comprehensive income (loss)	107		(34)		—		73
Balance at the end of the period	$	(1,721)	$	177	$	(23)	$	(1,567)

Reclassifications out of AOCL are presented in the following table. Amounts for the periods indicated are in millions and those in parentheses indicate debits to the Condensed Consolidated Statements of Operations:

AOCL Components	Affected Line Item in the Condensed Consolidated Statements of Operations	Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Derivative gains (losses), net
	Non-regulated revenue	$	(8)	$	—	$	(8)	$	(1)
	Non-regulated cost of sales	—		(1)		(1)		(2)
	Interest expense	13		(10)		16		(33)
	Loss on disposal and sale of business interests	—		(16)		33		(16)
	Foreign currency transaction losses	(3)		—		(3)		—
	Income (loss) from continuing operations before taxes and equity in earnings of affiliates	2		(27)		37		(52)
	Income tax benefit (expense)	(2)		3		(11)		13
	Net equity in earnings (losses) of affiliates	7		4		22		1
	Net income (loss)	7		(20)		48		(38)
	Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	(4)		(3)		(5)		8
	Net income (loss) attributable to The AES Corporation	$	3	$	(23)	$	43	$	(30)
Amortization of defined benefit pension actuarial gain (loss), net
	Regulated cost of sales	$	—	$	(1)	$	—	$	(1)
	Other expense	—		1		—		—
	Net income (loss) attributable to The AES Corporation	$	—	$	—	$	—	$	(1)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	3	$	(23)	$	43	$	(31)

Common Stock Dividends — The Parent Company paid dividends of $0.1659 per outstanding share to its common stockholders during the first and second quarters of 2023 for dividends declared in December 2022 and February 2023.

On July 14, 2023, the Board of Directors declared a quarterly common stock dividend of $0.1659 per share payable on August 15, 2023, to shareholders of record at the close of business on August 1, 2023.

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Segments

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

SEGMENTS

SEGMENTS

The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the businesses internally. In our 2022 Form 10-K, the management reporting structure and the Company’s reportable segments were mainly organized by geographic regions. In March 2023, we announced internal management changes as a part of our ongoing strategy to align our business to meet our customers’ needs and deliver on our major strategic objectives. The management reporting structure is now composed of four SBUs, mainly organized by technology, led by our President and Chief Executive Officer. Using the accounting guidance on segment reporting, the Company determined that its four operating segments are aligned with its four reportable segments corresponding to its SBUs. All prior period results have been retrospectively revised to reflect the new segment reporting structure.

•Renewables — Solar, wind, energy storage, hydro, biomass, and landfill gas generation facilities;

•Utilities — AES Indiana, AES Ohio, and AES El Salvador regulated utilities and their generation facilities;

•Energy Infrastructure — Natural gas, LNG, coal, pet coke, diesel and oil generation facilities, and our businesses in Chile, which have a mix of generation sources, including renewables, that are pooled to service our existing PPAs; and

•New Energy Technologies — Green hydrogen initiatives and investments in Fluence, Uplight, 5B, and other new and innovative energy technology businesses.

Our Renewables, Utilities and Energy Infrastructure SBUs participate in our generation business line, in which we own and/or operate power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. Our Utilities SBU participates in our utilities business line, in which we own and/or operate utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors within a defined service area. In certain circumstances, our utilities also generate and sell electricity on the wholesale market. Our New Energy Technologies SBU includes investments in new and innovative technologies to support leading-edge greener energy solutions.

Included in “Corporate and Other” are the results of the AES self-insurance company, corporate overhead costs which are not directly associated with the operations of our four reportable segments, and certain intercompany charges such as self-insurance premiums which are fully eliminated in consolidation.

During the first quarter of 2023, management began assessing operational performance and making resource

allocation decisions using Adjusted EBITDA. Therefore, the Company uses Adjusted EBITDA as its primary segment performance measure. Adjusted EBITDA, a non-GAAP measure, is defined by the Company as earnings before interest income and expense, taxes, depreciation and amortization, adjusted for the impact of NCI and interest, taxes, depreciation and amortization of our equity affiliates, and adding back interest income recognized under service concession arrangements; excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence.

The Company has concluded Adjusted EBITDA better reflects the underlying business performance of the Company and is the most relevant measure considered in the Company's internal evaluation of the financial performance of its segments. Additionally, given its large number of businesses and overall complexity, the Company concluded that Adjusted EBITDA is a more transparent measure that better assists investors in determining which businesses have the greatest impact on the Company's results.

Revenue and Adjusted EBITDA are presented before inter-segment eliminations, which includes the effect of intercompany transactions with other segments except for charges for certain management fees and the write-off of intercompany balances, as applicable. All intra-segment activity has been eliminated within the segment. Inter-segment activity has been eliminated within the total consolidated results.

The following tables present financial information by segment for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
Total Revenue	2023		2022		2023		2022
Renewables SBU	$	541	$	455	$	1,036	$	875
Utilities SBU	852		821		1,823		1,680
Energy Infrastructure SBU	1,654		1,820		3,378		3,427
New Energy Technologies SBU	1		2		75		2
Corporate and Other	40		34		67		57
Eliminations	(61)		(54)		(113)		(111)
Total Revenue	$	3,027	$	3,078	$	6,266	$	5,930

	Three Months Ended June 30,				Six Months Ended June 30,
Reconciliation of Adjusted EBITDA (in millions)	2023		2022		2023		2022
Net income	$	(19)	$	(136)	$	170	$	35
Income tax expense (benefit)	(2)		(19)		70		41
Interest expense	310		279		640		537
Interest income	(131)		(95)		(254)		(170)
Depreciation and amortization	277		264		550		534
EBITDA	$	435	$	293	$	1,176	$	977
Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1)	(155)		(156)		(325)		(312)
Less: Income taxes expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates	27		23		66		57
Interest income recognized under service concession arrangements	18		20		36		39
Unrealized derivative and equity securities losses (gains)	32		(34)		(7)		8
Unrealized foreign currency losses	32		38		64		20
Disposition/acquisition losses	16		23		13		32
Impairment losses	164		479		173		480
Loss on extinguishment of debt	—		—		1		6
Adjusted EBITDA	$	569	$	686	$	1,197	$	1,307

_____________________________

(1)The allocation of earnings to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA.

	Three Months Ended June 30,				Six Months Ended June 30,
Adjusted EBITDA	2023		2022		2023		2022
Renewables SBU	$	166	$	162	$	290	$	281
Utilities SBU	148		135		310		319
Energy Infrastructure SBU	282		379		645		733
New Energy Technologies SBU	(13)		(26)		(39)		(61)
Corporate and Other	13		(3)		12		1
Eliminations	(27)		39		(21)		34
Adjusted EBITDA	$	569	$	686	$	1,197	$	1,307

The Company uses long-lived assets as its measure of segment assets. Long-lived assets includes amounts recorded in Property, plant and equipment, net and right-of-use assets for operating leases recorded in Other noncurrent assets on the Condensed Consolidated Balance Sheets.

Long-Lived Assets	June 30, 2023		December 31, 2022
Renewables SBU	$	12,220	$	9,533
Utilities SBU	6,602		6,311
Energy Infrastructure SBU	7,613		7,532
New Energy Technologies SBU	1		2
Corporate and Other	16		17
Long-Lived Assets	26,452		23,395
Current assets	7,205		7,643
Investments in and advances to affiliates	858		952
Debt service reserves and other deposits	171		177
Goodwill	362		362
Other intangible assets	2,282		1,841
Deferred income taxes	383		319
Loan receivable	1,018		1,051
Other noncurrent assets, excluding right-of-use assets for operating leases	2,774		2,623
Total Assets	$	41,505	$	38,363

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Revenue (Notes)

6 Months Ended

Jun. 30, 2023

Revenue from Contracts with Customers [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE

The following table presents our revenue from contracts with customers and other revenue for the periods indicated (in millions):

	Three Months Ended June 30, 2023
	Renewables SBU		Utilities SBU		Energy Infrastructure SBU		New Energy Technologies SBU		Corporate, Other and Eliminations		Total
Non-Regulated Revenue
Revenue from contracts with customers	$	505	$	18	$	1,490	$	—	$	(21)	$	1,992
Other non-regulated revenue (1)	36		—		164		1		—		201
Total non-regulated revenue	541		18		1,654		1		(21)		2,193
Regulated Revenue
Revenue from contracts with customers	—		825		—		—		—		825
Other regulated revenue	—		9		—		—		—		9
Total regulated revenue	—		834		—		—		—		834
Total revenue	$	541	$	852	$	1,654	$	1	$	(21)	$	3,027
	Three Months Ended June 30, 2022
	Renewables SBU		Utilities SBU		Energy Infrastructure SBU		New Energy Technologies SBU		Corporate, Other and Eliminations		Total
Non-Regulated Revenue
Revenue from contracts with customers	$	406	$	18	$	1,676	$	1	$	(20)	$	2,081
Other non-regulated revenue (1)	49		1		144		1		—		195
Total non-regulated revenue	455		19		1,820		2		(20)		2,276
Regulated Revenue
Revenue from contracts with customers	—		794		—		—		—		794
Other regulated revenue	—		8		—		—		—		8
Total regulated revenue	—		802		—		—		—		802
Total revenue	$	455	$	821	$	1,820	$	2	$	(20)	$	3,078

	Six Months Ended June 30, 2023
	Renewables SBU		Utilities SBU		Energy Infrastructure SBU		New Energy Technologies SBU		Corporate, Other and Eliminations		Total
Non-Regulated Revenue
Revenue from contracts with customers	$	982	$	35	$	3,062	$	74	$	(46)	$	4,107
Other non-regulated revenue (1)	54		2		316		1		—		373
Total non-regulated revenue	1,036		37		3,378		75		(46)		4,480
Regulated Revenue
Revenue from contracts with customers	—		1,769		—		—		—		1,769
Other regulated revenue	—		17		—		—		—		17
Total regulated revenue	—		1,786		—		—		—		1,786
Total revenue	$	1,036	$	1,823	$	3,378	$	75	$	(46)	$	6,266
	Six Months Ended June 30, 2022
	Renewables SBU		Utilities SBU		Energy Infrastructure SBU		New Energy Technologies SBU		Corporate, Other and Eliminations		Total
Non-Regulated Revenue
Revenue from contracts with customers	$	831	$	41	$	3,177	$	1	$	(54)	$	3,996
Other non-regulated revenue (1)	44		2		250		1		—		297
Total non-regulated revenue	875		43		3,427		2		(54)		4,293
Regulated Revenue
Revenue from contracts with customers	—		1,622		—		—		—		1,622
Other regulated revenue	—		15		—		—		—		15
Total regulated revenue	—		1,637		—		—		—		1,637
Total revenue	$	875	$	1,680	$	3,427	$	2	$	(54)	$	5,930

_______________________________

(1)         Other non-regulated revenue primarily includes lease and derivative revenue not accounted for under ASC 606.

Contract Balances — The timing of revenue recognition, billings, and cash collections results in accounts receivable and contract liabilities. The contract liabilities from contracts with customers were $388 million and $337 million as of June 30, 2023 and December 31, 2022, respectively.

During the six months ended June 30, 2023 and 2022, we recognized revenue of $13 million and $32 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods.

A significant financing arrangement exists for our Mong Duong plant in Vietnam. The plant was constructed under a build, operate, and transfer contract and will be transferred to the Vietnamese government after the completion of a 25 year PPA. The performance obligation to construct the facility was substantially completed in 2015. Contract consideration related to the construction, but not yet collected through the 25 year PPA, was reflected on the Condensed Consolidated Balance Sheet. As of June 30, 2023 and December 31, 2022, the Mong Duong loan receivable had a balance of $1.1 billion, net of CECL reserves of $27 million and $28 million, respectively. Of the loan receivable balance, $102 million and $97 million, respectively, was classified as Other current assets, and $1 billion was classified as Loan receivable on the Condensed Consolidated Balance Sheets.

Remaining Performance Obligations — The transaction price allocated to remaining performance obligations represents future consideration for unsatisfied (or partially unsatisfied) performance obligations at the end of the reporting period. As of June 30, 2023, the aggregate amount of transaction price allocated to remaining performance obligations was $9 million, primarily consisting of fixed consideration for the sale of renewable energy credits in long-term contracts in the U.S. We expect to recognize revenue of approximately $1 million per year between 2023 and 2027 and the remainder thereafter

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Other Income and Expense

6 Months Ended

Jun. 30, 2023

Other Income and Expenses [Abstract]

Other Income and Other Expense Disclosure [Text Block]

OTHER INCOME AND EXPENSE

Other income generally includes gains on insurance recoveries in excess of property damage, gains on asset sales and liability extinguishments, favorable judgments on contingencies, allowance for funds used during construction, and other income from miscellaneous transactions. Other expense generally includes losses on asset sales and dispositions, losses on legal contingencies, and losses from other miscellaneous transactions. The components are summarized as follows (in millions):

		Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Other Income	AFUDC (US Utilities)	$	3	$	2	$	6	$	5
	Legal settlements	—		6		3		6
	Gain on sale of assets	—		—		2		—
	Gain on remeasurement of investment (1)	—		26		—		26
	Insurance proceeds (2)	—		16		—		16
	Gain on acquired customer contracts	—		5		—		5
	Gain on remeasurement of contingent consideration	—		3		—		3
	Other	11		12		13		15
	Total other income	$	14	$	70	$	24	$	76
Other Expense	Loss on sale and disposal of assets	$	7	$	5	$	9	$	9
	Loss on remeasurement of contingent consideration	1		—		8		—
	Non-service pension and other postretirement costs	3		—		7		—
	Allowance for lease receivable (3)	—		20		—		20
	Other	1		4		2		12
	Total other expense	$	12	$	29	$	26	$	41

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Asset Impairment Expense

6 Months Ended

Jun. 30, 2023

Impairment or Disposal of Tangible Assets Disclosure [Abstract]

ASSET IMPAIRMENT EXPENSE

ASSET IMPAIRMENT EXPENSE

The following table presents our asset impairment expense for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Norgener	$	137	$	—	$	137	$	—
Jordan	15		—		29		—
GAF Projects (AES Renewable Holdings)	18		—		18		—
Maritza	—		475		—		475
Other	4		7		10		8
Total	$	174	$	482	$	194	$	483

Norgener — In May 2023, AES Andes announced its intention to accelerate the retirement of the Norgener coal-fired plant in Chile in order to further advance its decarbonization strategy. Due to this strategic development and the resulting decrease in useful life of the generation facility, the Company performed an impairment analysis as of May 1, 2023, and determined that the carrying amount of the asset group was not recoverable. The Norgener asset group was determined to have a fair value of $24 million, using the income approach. As a result, and since pre-tax losses are limited to the carrying amount of the long-lived assets, the Company recognized pre-tax asset impairment expense of $137 million. Norgener is reported in the Energy Infrastructure SBU reportable segment.

Jordan — In November 2020, the Company signed an agreement to sell 26% ownership interest in Amman East and IPP4 for $58 million and as of June 30, 2023, the generation plants were classified as held-for-sale. Due to the delay in closing the transaction, the carrying amount of the asset group in subsequent periods exceeded the agreed-upon sales price and total pre-tax impairment expense of $29 million was recorded during the six months ended June 30, 2023. See Note 16—Held-for-Sale for further information. Amman East and IPP4 are reported in the Energy Infrastructure SBU reportable segment.

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Income Taxes (Notes)	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	INCOME TAXES

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Held-for-Sale and Dispositions (Notes)

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

DISPOSITIONS AND HELD-FOR-SALE BUSINESSES

HELD-FOR-SALE

Jordan — In November 2020, the Company signed an agreement to sell 26% ownership interest in Amman East and IPP4 for $58 million. The sale is expected to close in 2023. After completion of the sale, the Company will retain a 10% ownership interest in Amman East and IPP4, which will be accounted for as an equity method investment. As of June 30, 2023, the generation plants were classified as held-for-sale, but did not meet the criteria to be reported as discontinued operations. On a consolidated basis, the carrying value of the plants held-for-sale as of June 30, 2023 was $164 million. Amman East and IPP4 are reported in the Energy Infrastructure SBU reportable segment.

Excluding any impairment charges, pre-tax income attributable to AES of businesses held-for-sale as of June 30, 2023 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2023		2022		2023		2022
Jordan	$	6	$	6	$	11	$	11

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Acquisitions

6 Months Ended

Jun. 30, 2023

Business Combinations [Abstract]

Acquisitions

. ACQUISITIONS

Bellefield — On June 5, 2023, the Company entered into an agreement for the purchase of 100% of the membership interests in the Bellefield projects, consisting of two late development-stage solar and BESS projects of 1 GW each. The transaction was accounted for as an asset acquisition of variable interest entities that did not meet the definition of a business. The Company agreed to make total cash payments including reimbursement of development and equipment costs of approximately $449 million, a portion of which is contingent upon future milestones and price adjustments. In the case that future milestones are not met, the total cash payment will be adjusted accordingly, along with any other purchase price adjustments.

The assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration to be paid of approximately $402 million, including cash paid of $164 million, contingent consideration of $210 million, and deferred payments of $28 million.

The estimated fair value of the contingent consideration of Bellefield was determined using probability-weighted discounted cash flows based on internal forecasts, which are considered Level 3 inputs. The weighted average probability of achieving the milestone payments used to calculate the acquisition date fair value of the contingent consideration was 90.4%. Payments under the contingent consideration arrangements are largely binary and thus, a single probability of achieving the milestone was applied in the calculation of fair value. The contingent consideration will be updated quarterly with any prospective changes in fair value recorded through earnings. Bellefield is reported in the Renewables SBU reportable segment.

Bolero Solar Park — On June 9, 2023, the Company, through its subsidiary AES Andes S.A., acquired 100% of the equity interests in Helio Atacama Tres SpA, owner of the Bolero photovoltaic power plant for consideration of $114 million. The transaction was accounted for as an asset acquisition that did not meet the definition of a business. As Helio Atacama Tres is not a VIE, any difference between the fair value of the assets and consideration transferred will be allocated to PP&E on a relative fair value basis. Helio Atacama Tres is reported in the Energy Infrastructure SBU reportable segment.

Agua Clara — On June 17, 2022, the Company, through its subsidiaries AES Dominicana Renewable Energy and AES Andres DR, S.A., acquired 100% of the equity interests in Agua Clara, S.A.S., a wind project for consideration of $98 million. The transaction was accounted for as an asset acquisition that did not meet the definition of a business. As Agua Clara is not a VIE, any difference between the fair value of the assets and consideration transferred will be allocated to PP&E on a relative fair value basis. Agua Clara is reported in the Renewables SBU reportable segment.

Tunica Windpower, LLC — On June 17, 2022, the Company entered into an agreement for the purchase of 100% of the membership interests in Tunica Windpower, LLC. The transaction was accounted for as an asset acquisition of variable interest entities that did not meet the definition of a business. The assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration paid of approximately $22 million, including contingent consideration of $7 million. The contingent consideration will be updated quarterly with any prospective changes in fair value recorded through earnings. Tunica Windpower is reported in the Renewables SBU reportable segment.

Windsor PV1, LLC — On May 27, 2022, the Company entered into an agreement for the purchase of 100% of the membership interests in Windsor PV1, LLC, an early development-stage solar project. The transaction was accounted for as an asset acquisition of variable interest entities that did not meet the definition of a business. The assets acquired and liabilities assumed were recorded at their fair values, which equaled the fair value of the consideration paid of approximately $17 million, including contingent consideration of $5 million. The contingent consideration will be updated quarterly with any prospective changes in fair value recorded through earnings. Windsor is reported in the Renewables SBU reportable segment.

Community Energy — In the first quarter of 2022, the Company finalized the purchase price allocation related to the acquisition of Community Energy, LLC. There were no significant adjustments made to the preliminary purchase price allocation recorded in the fourth quarter of 2021 when the acquisition was completed. Community Energy is reported in the Renewables SBU reportable segment.

New York Wind — In the first quarter of 2022, the Company finalized the purchase price allocation related to the acquisition of Cogentrix Valcour Intermediate Holdings, LLC. There were no significant adjustments made to the preliminary purchase price allocation recorded in the fourth quarter of 2021 when the acquisition was completed. New York Wind is reported in the Renewables SBU reportable segment.

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Earnings Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic and diluted earnings per share are based on the weighted average number of shares of common stock and potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted earnings per share, includes the effects of dilutive RSUs, stock options, and equity units. The effect of such potential common stock is computed using the treasury stock method for RSUs and stock options, and is computed using the if-converted method for equity units.

The following table is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for income from continuing operations for the three and six months ended June 30, 2023 and 2022, where income represents the numerator and weighted average shares represent the denominator.

Three Months Ended June 30,	2023					2022
(in millions, except per share data)	Loss		Shares	$ per Share		Loss		Shares	$ per Share
BASIC EARNINGS (LOSS) PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	(39)	669	$	(0.06)	$	(179)	668	$	(0.27)
EFFECT OF DILUTIVE SECURITIES
Stock options	—		—	—		—		—	—
Restricted stock units	—		—	—		—		—	—
Equity units	—		—	—		—		—	—
DILUTED EARNINGS (LOSS) PER SHARE	$	(39)	669	$	(0.06)	$	(179)	668	$	(0.27)

Six Months Ended June 30,	2023					2022
(in millions, except per share data)	Income		Shares	$ per Share		Loss		Shares	$ per Share
BASIC EARNINGS (LOSS) PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	112	669	$	0.17	$	(64)	668	$	(0.10)
EFFECT OF DILUTIVE SECURITIES
Stock options	—		1	—		—		—	—
Restricted stock units	—		2	—		—		—	—
Equity units	—		40	(0.01)		—		—	—
DILUTED EARNINGS (LOSS) PER SHARE	$	112	712	$	0.16	$	(64)	668	$	(0.10)

For the three months ended June 30, 2023, the calculation of diluted earnings per share excluded 3 million outstanding stock awards and 40 million shares underlying our March 2021 Equity Units because their impact would be anti-dilutive given the loss from continuing operations. These shares could potentially dilute basic earnings per share in the future. Had the Company generated income, 2 million and 40 million potential shares of common stock related to the stock awards and the Equity Units, respectively, would have been included in diluted weighted-average shares outstanding.

The calculation of diluted earnings per share excluded 1 million outstanding stock awards for the six months ended June 30, 2023, which would be anti-dilutive. These stock awards could potentially dilute basic earnings per share in the future.

For the three and six months ended June 30, 2022, the calculation of diluted earnings per share excluded 4 million outstanding stock awards and 40 million shares underlying our March 2021 Equity Units because their impact would be anti-dilutive given the loss from continuing operations. These shares could potentially dilute basic earnings per share in the future. Had the Company generated income, 2 million and 40 million potential shares of common stock related to the stock awards and the Equity Units, respectively, would have been included in diluted weighted-average shares outstanding.

As described in Note 11—Equity, the Company issued 10,430,500 Equity Units in March 2021 with a total notional value of $1,043 million. Each Equity Unit has a stated amount of $100 and was initially issued as a Corporate Unit, consisting of a 2024 Purchase Contract and a 10% undivided beneficial ownership interest in one share of Series A Preferred Stock. Prior to February 15, 2024, the Series A Preferred Stock may be converted at the option of the holder only in connection with a fundamental change. On and after February 15, 2024, the Series A Preferred Stock may be converted freely at the option of the holder. Upon conversion, the Company will deliver to the holder with respect to each share of Series A Preferred Stock being converted (i) a share of our Series B Preferred Stock, or, solely with respect to conversions in connection with a redemption, cash and (ii) shares of our common stock, if any, in respect of any conversion value in excess of the liquidation preference of the preferred stock being converted. The conversion rate was initially 31.5428 shares of common stock per one share of Series A Preferred Stock, which was equivalent to an initial conversion price of approximately $31.70 per share of common stock. As of June 30, 2023, due to customary anti-dilution provisions, the conversion rate was 31.6239, equivalent to a conversion price of approximately $31.62 per share of common stock. The Series A Preferred Stock and the 2024 Purchase Contracts are being accounted for as one unit of account. In calculating diluted EPS, the Company has applied the if-converted method to determine the impact of the forward purchase feature and considered if there are incremental shares that should be included related to the Series A Preferred conversion value.

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Risks and Uncertainties (Notes)

6 Months Ended

Jun. 30, 2023

Risks and Uncertainties [Abstract]

Unusual Risks and Uncertainties [Table Text Block]

RISKS AND UNCERTAINTIES

Puerto Rico — Earlier this year, AES Puerto Rico took certain measures to address identified liquidity challenges. On July 6, 2023, PREPA agreed to the release of funds in the escrow account guaranteeing AES Puerto Rico’s obligations under the Power Purchase and Operating Agreement (“PPOA”) in order to provide additional liquidity for the business. Additionally, AES Puerto Rico entered into a standstill and forbearance agreement with its noteholders because of the insufficiency of funds to meet the principal and interest obligations on its Series A Bond Loans due and payable on June 1, 2023, and going forward. AES Puerto Rico continues to work with PREPA and its noteholders on these liquidity challenges.

Despite these challenges and considering the information available as of the filing date, management believes the carrying amount of our long-lived assets at AES Puerto Rico of $63 million is recoverable as of June 30, 2023. However, it is reasonably possible that the estimate of undiscounted cash flows may change in the near term resulting in the need to write down our long-lived assets in Puerto Rico to fair value.

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Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Event [Line Items]
Subsequent Events [Text Block]	SUBSEQUENT EVENTS [T

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (39)	$ (179)	$ 112	$ (64)

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Financial Statement Presentation (Policies)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation

Consolidation — In this Quarterly Report, the terms “AES,” “the Company,” “us” or “we” refer to the consolidated entity, including its subsidiaries and affiliates. The terms “The AES Corporation” or “the Parent Company” refer only to the publicly held holding company, The AES Corporation, excluding its subsidiaries and affiliates. Furthermore, VIEs in which the Company has a variable interest have been consolidated where the Company is the primary beneficiary. Investments in which the Company has the ability to exercise significant influence, but not control, are accounted for using the equity method of accounting, except for our investment in Alto Maipo, for which we have elected the fair value option as permitted under ASC 825. All intercompany transactions and balances have been eliminated in consolidation.

Basis of Presentation and Significant Accounting Policies [Text Block]

Interim Financial Presentation — The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial information and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, comprehensive income, changes in equity, and cash flows. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of expected results for the year ending December 31, 2023. The accompanying condensed consolidated financial statements are unaudited and should be read in conjunction with the 2022 audited consolidated financial statements and notes thereto, which are included in the 2022 Form 10-K filed with the SEC on March 1, 2023 (the “2022 Form 10-K”).

Schedule of Cash and Cash Equivalents [Table Text Block]

Cash, Cash Equivalents, and Restricted Cash — The following table provides a summary of cash, cash equivalents, and restricted cash amounts reported on the Condensed Consolidated Balance Sheets that reconcile to the total of such amounts as shown on the Condensed Consolidated Statements of Cash Flows (in millions):

	June 30, 2023		December 31, 2022
Cash and cash equivalents	$	1,322	$	1,374
Restricted cash	517		536
Debt service reserves and other deposits	171		177
Cash, Cash Equivalents, and Restricted Cash	$	2,010	$	2,087

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Contingencies and Commitments Contingencies and Commitments (Policies)	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies, Policy [Policy Text Block]	The Company is involved in certain claims, suits and legal proceedings in the normal course of business. The Company accrues for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.

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Leases (Policies)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Early Termination [Policy Text Block]	The option to extend or terminate a lease is based on customary early termination provisions in the contract, such as payment defaults, bankruptcy, and lack of performance on energy delivery.
Separation of Lease and Nonlease Components [Policy Text Block]	Capacity receipts are generally considered lease elements as they cover the majority of available output from a facility. The allocation of contract payments between the lease and non-lease elements is made at the inception of the lease.

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Segments Segments (Policies)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Reporting

SEGMENTS

The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the businesses internally. In our 2022 Form 10-K, the management reporting structure and the Company’s reportable segments were mainly organized by geographic regions. In March 2023, we announced internal management changes as a part of our ongoing strategy to align our business to meet our customers’ needs and deliver on our major strategic objectives. The management reporting structure is now composed of four SBUs, mainly organized by technology, led by our President and Chief Executive Officer. Using the accounting guidance on segment reporting, the Company determined that its four operating segments are aligned with its four reportable segments corresponding to its SBUs. All prior period results have been retrospectively revised to reflect the new segment reporting structure.

•Renewables — Solar, wind, energy storage, hydro, biomass, and landfill gas generation facilities;

•Utilities — AES Indiana, AES Ohio, and AES El Salvador regulated utilities and their generation facilities;

•Energy Infrastructure — Natural gas, LNG, coal, pet coke, diesel and oil generation facilities, and our businesses in Chile, which have a mix of generation sources, including renewables, that are pooled to service our existing PPAs; and

•New Energy Technologies — Green hydrogen initiatives and investments in Fluence, Uplight, 5B, and other new and innovative energy technology businesses.

Our Renewables, Utilities and Energy Infrastructure SBUs participate in our generation business line, in which we own and/or operate power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. Our Utilities SBU participates in our utilities business line, in which we own and/or operate utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors within a defined service area. In certain circumstances, our utilities also generate and sell electricity on the wholesale market. Our New Energy Technologies SBU includes investments in new and innovative technologies to support leading-edge greener energy solutions.

Included in “Corporate and Other” are the results of the AES self-insurance company, corporate overhead costs which are not directly associated with the operations of our four reportable segments, and certain intercompany charges such as self-insurance premiums which are fully eliminated in consolidation.

During the first quarter of 2023, management began assessing operational performance and making resource

allocation decisions using Adjusted EBITDA. Therefore, the Company uses Adjusted EBITDA as its primary segment performance measure. Adjusted EBITDA, a non-GAAP measure, is defined by the Company as earnings before interest income and expense, taxes, depreciation and amortization, adjusted for the impact of NCI and interest, taxes, depreciation and amortization of our equity affiliates, and adding back interest income recognized under service concession arrangements; excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence.

The Company has concluded Adjusted EBITDA better reflects the underlying business performance of the Company and is the most relevant measure considered in the Company's internal evaluation of the financial performance of its segments. Additionally, given its large number of businesses and overall complexity, the Company concluded that Adjusted EBITDA is a more transparent measure that better assists investors in determining which businesses have the greatest impact on the Company's results.

Revenue and Adjusted EBITDA are presented before inter-segment eliminations, which includes the effect of intercompany transactions with other segments except for charges for certain management fees and the write-off of intercompany balances, as applicable. All intra-segment activity has been eliminated within the segment. Inter-segment activity has been eliminated within the total consolidated results.

The following tables present financial information by segment for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
Total Revenue	2023		2022		2023		2022
Renewables SBU	$	541	$	455	$	1,036	$	875
Utilities SBU	852		821		1,823		1,680
Energy Infrastructure SBU	1,654		1,820		3,378		3,427
New Energy Technologies SBU	1		2		75		2
Corporate and Other	40		34		67		57
Eliminations	(61)		(54)		(113)		(111)
Total Revenue	$	3,027	$	3,078	$	6,266	$	5,930

	Three Months Ended June 30,				Six Months Ended June 30,
Reconciliation of Adjusted EBITDA (in millions)	2023		2022		2023		2022
Net income	$	(19)	$	(136)	$	170	$	35
Income tax expense (benefit)	(2)		(19)		70		41
Interest expense	310		279		640		537
Interest income	(131)		(95)		(254)		(170)
Depreciation and amortization	277		264		550		534
EBITDA	$	435	$	293	$	1,176	$	977
Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1)	(155)		(156)		(325)		(312)
Less: Income taxes expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates	27		23		66		57
Interest income recognized under service concession arrangements	18		20		36		39
Unrealized derivative and equity securities losses (gains)	32		(34)		(7)		8
Unrealized foreign currency losses	32		38		64		20
Disposition/acquisition losses	16		23		13		32
Impairment losses	164		479		173		480
Loss on extinguishment of debt	—		—		1		6
Adjusted EBITDA	$	569	$	686	$	1,197	$	1,307

_____________________________

(1)The allocation of earnings to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA.

	Three Months Ended June 30,				Six Months Ended June 30,
Adjusted EBITDA	2023		2022		2023		2022
Renewables SBU	$	166	$	162	$	290	$	281
Utilities SBU	148		135		310		319
Energy Infrastructure SBU	282		379		645		733
New Energy Technologies SBU	(13)		(26)		(39)		(61)
Corporate and Other	13		(3)		12		1
Eliminations	(27)		39		(21)		34
Adjusted EBITDA	$	569	$	686	$	1,197	$	1,307

The Company uses long-lived assets as its measure of segment assets. Long-lived assets includes amounts recorded in Property, plant and equipment, net and right-of-use assets for operating leases recorded in Other noncurrent assets on the Condensed Consolidated Balance Sheets.

Long-Lived Assets	June 30, 2023		December 31, 2022
Renewables SBU	$	12,220	$	9,533
Utilities SBU	6,602		6,311
Energy Infrastructure SBU	7,613		7,532
New Energy Technologies SBU	1		2
Corporate and Other	16		17
Long-Lived Assets	26,452		23,395
Current assets	7,205		7,643
Investments in and advances to affiliates	858		952
Debt service reserves and other deposits	171		177
Goodwill	362		362
Other intangible assets	2,282		1,841
Deferred income taxes	383		319
Loan receivable	1,018		1,051
Other noncurrent assets, excluding right-of-use assets for operating leases	2,774		2,623
Total Assets	$	41,505	$	38,363

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Earnings Per Share EPS Policy (Policies)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Earnings Per Share, Policy [Policy Text Block]	Basic and diluted earnings per share are based on the weighted average number of shares of common stock and potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted earnings per share, includes the effects of dilutive RSUs, stock options, and equity units. The effect of such potential common stock is computed using the treasury stock method for RSUs and stock options, and is computed using the if-converted method for equity units.

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Financial Statement Presentation New Accounting Standards (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

New Accounting Pronouncements Issued

New Accounting Pronouncements Issued But Not Yet Effective — The following table provides a brief description of recent accounting pronouncements that could have a material impact on the Company’s consolidated financial statements once adopted. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on the Company’s consolidated financial statements.

New Accounting Standards Issued But Not Yet Effective
ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2023-01 Leases (Topic 842): Common Control Arrangements	The amendments in this Update require that leasehold improvements associated with common control leases be: 1. Amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset (the leased asset) through a lease. However, if the lessor obtained the right to control the use of the underlying asset through a lease with another entity not within the same common control group, the amortization period may not exceed the amortization period of the common control group. 2. Accounted for as a transfer between entities under common control through an adjustment to equity (or net assets for not-for-profit entities) if, and when, the lessee no longer controls the use of the underlying asset. Additionally, those leasehold improvements are subject to the impairment guidance in Topic 360, Property, Plant, and Equipment.	For fiscal years beginning after December 15, 2023, including interim periods within those fiscal years.	The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements.

New Accounting Pronouncements Adopted

New Accounting Pronouncements Adopted in 2023 — The following table provides a brief description of recent accounting pronouncements that had an impact on the Company’s consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on the Company’s consolidated financial statements.

New Accounting Standards Adopted
ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	This update is to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the following: (1) recognition of an acquired contract liability, and (2) payment terms and their effect on subsequent revenue recognized by the acquirer. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application.	January 1, 2023	The Company adopted this standard on a prospective basis, which will be applied to any business combinations that occur in 2023 or after. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.

2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures	ASU 2022-02 amends ASC 326-20-50-6 to require public business entities to disclose gross write-offs recorded in the current period, on a year-to-date basis, by year of origination in the vintage disclosures. This disclosure should cover each of the previous five annual periods starting with the date of the financial statements and, for the annual periods before that, an aggregate total. However, upon adoption of the ASU, an entity would not provide the previous five annual periods of gross write-offs. The FASB decided that disclosure of gross write-offs would instead be applied on a prospective transition basis so that preparers can “build” the five-annual-period disclosure over time.	January 1, 2023	The Company adopted this standard on a prospective basis and it did not have a material impact on the financial statements.
2022-04,Liabilities - Supplier Finance Programs (Topic 450-50): Disclosure of Supplier Finance Program Obligations	This update is to provide additional information and disclosures about an entity’s use of supplier finance programs to see how these programs will affect an entity’s working capital, liquidity, and cash flows. Entities that use supplier finance programs as the buyer party should disclose (1) the key terms of the payment terms and assets pledged as security or other forms of guarantees provided and (2) the unpaid amount outstanding, a description of where those obligations are presented on the balance sheet, and a rollforward of those obligations during the annual period.	January 1, 2023, except for the rollforward information, which is effective for fiscal years beginning after December 15, 2023.	The ASU only requires disclosures related to the Company's supplier finance programs and does not affect the recognition, measurement, or presentation of supplier finance program obligations on the balance sheet or cash flow statement. The Company adopted the new disclosure requirements in the first quarter of 2023, except for the annual requirement to disclose rollforward information, which the Company expects to adopt and present prospectively beginning in the 2024 annual financial statements.
2023-03, Presentation of Financial Statements (Topic 205), Income Statement - Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation - Stock Compensation (Topic 718)	This Accounting Standards Update amends various SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. The amendments in this Update are effective for all entities upon issuance of this Update.	June 30, 2023	The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

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Inventory (Tables)

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Inventory Balance By Type

The following table summarizes the Company’s inventory balances as of the periods indicated (in millions):

	June 30, 2023		December 31, 2022
Fuel and other raw materials	$	483	$	733
Spare parts and supplies	291		322
Total	$	774	$	1,055

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Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair value hierarchy for recurring measurements table

The following table presents, by level within the fair value hierarchy, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated (in millions). For the Company’s investments in marketable debt securities, the security classes presented were determined based on the nature and risk of the security and are consistent with how the Company manages, monitors, and measures its marketable securities:

	June 30, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:
Certificates of deposit	$	—	$	677	$	—	$	677	$	—	$	698	$	—	$	698
Government debt securities	—		3		—		3		—		3		—		3
Total debt securities	—		680		—		680		—		701		—		701
EQUITY SECURITIES:
Mutual funds	44		—		—		44		38		—		—		38
Total equity securities	44		6		—		50		38		—		—		38
DERIVATIVES:
Interest rate derivatives	—		273		—		273		—		314		—		314
Foreign currency derivatives	—		23		63		86		—		22		64		86
Commodity derivatives	—		233		7		240		—		232		13		245
Total derivatives — assets	—		529		70		599		—		568		77		645
TOTAL ASSETS	$	44	$	1,215	$	70	$	1,329	$	38	$	1,269	$	77	$	1,384
Liabilities
Contingent consideration	$	—	$	—	$	274	$	274	$	—	$	—	$	48	$	48
DERIVATIVES:
Interest rate derivatives	—		15		1		16		—		6		—		6
Cross-currency derivatives	—		76		—		76		—		42		—		42
Foreign currency derivatives	—		22		—		22		—		20		—		20
Commodity derivatives	—		212		85		297		—		346		60		406
Total derivatives — liabilities	—		325		86		411		—		414		60		474
TOTAL LIABILITIES	$	—	$	325	$	360	$	685	$	—	$	414	$	108	$	522

Marketable Securities [Table Text Block]

The following table presents gross proceeds from the sale of available-for-sale securities during the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Gross proceeds from sale of available-for-sale securities	$	370	$	150	$	739	$	347

Fair Value, Net Derivative Assets (Liabilities) measured on a recurring basis, Unobservable Input Reconciliation Table

The following tables present a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2023 and 2022 (presented net by type of derivative in millions). Transfers between Level 3 and Level 2 principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.

	Derivative Assets and Liabilities
Three Months Ended June 30, 2023	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at April 1	$	(5)	$	62	$	(69)	$	(55)	$	(67)
Total realized and unrealized gains (losses):
Included in earnings	—		7		(1)		(1)		5
Included in other comprehensive income (loss) — derivative activity	16		3		(10)		—		9
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		—		—
Included in regulatory (assets) liabilities	—		—		3		—		3
Acquisitions	—		—		—		(218)		(218)
Settlements	(2)		(9)		(2)		—		(13)
Transfers of assets (liabilities), net into Level 3	—		—		—		—		—
Transfers of (assets) liabilities, net out of Level 3	(10)		—		1		—		(9)
Balance at June 30, 2023	$	(1)	$	63	$	(78)	$	(274)	$	(290)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	—	$	—	$	(2)	$	(1)	$	(3)
	Derivative Assets and Liabilities
Three Months Ended June 30, 2022	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at April 1	$	1	$	93	$	(13)	$	(69)	$	12
Total realized and unrealized gains (losses):
Included in earnings	1		(32)		(4)		—		(35)
Included in other comprehensive income (loss) — derivative activity	5		(11)		6		—		—
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		2		2
Included in regulatory (assets) liabilities	—		—		15		—		15
Acquisitions	—		—		—		(15)		(15)
Settlements	—		—		2		5		7
Transfers of assets (liabilities), net into Level 3	—		—		31		—		31
Transfers of (assets) liabilities, net out of Level 3	(6)		—		—		—		(6)
Balance at June 30, 2022	$	1	$	50	$	37	$	(77)	$	11
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	1	$	(32)	$	—	$	2	$	(29)

Fair value schedule of Significant Unobservable Input Recurring

The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of June 30, 2023 (in millions, except range amounts):

Type of Derivative	Fair Value		Unobservable Input	Amount or Range (Weighted Average)
Interest rate	$	(1)	Subsidiary credit spread	0.4% to 2.5% (1.7%)
Foreign currency:
Argentine peso	63		Argentine peso to U.S. dollar currency exchange rate after one year	576 to 957 (854)
Commodity:
CAISO Energy Swap	(86)		Forward energy prices per MWh after 2030	$12 to $97 ($52)
Other	8
Total	$	(16)

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets held and used measured on a nonrecurring basis during the six months ended June 30, 2023 (in millions, except range amounts):

	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Long-lived assets held and used:
Norgener (1)	$	24	Discounted cash flow	Annual revenue growth	(90)% to 994% (85%)
				Annual variable margin	(75)% to 276% (16%)
GAF Projects (AES Renewable Holdings)	11		Discounted cash flow	Annual revenue growth	(42)% to 44% (1%)
				Annual variable margin	(194)% to 77% (66%)
				Discount rate	9%
Total	$	35

_____________________________

(1)The fair value of the Norgener asset group is mainly related to existing coal inventory not subject to impairment under ASC 360-10.

Financial instruments not measured at fair value in the condensed consolidated balance sheets

The following table presents (in millions) the carrying amount, fair value, and fair value hierarchy of the Company’s financial assets and liabilities that are not measured at fair value in the Condensed Consolidated Balance Sheets as of the periods indicated, but for which fair value is disclosed:

		June 30, 2023
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	295	$	338	$	—	$	—	$	338
Liabilities:	Non-recourse debt	20,872		20,540		—		19,084		1,456
	Recourse debt	5,476		5,093		—		5,093		—

		December 31, 2022
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	255	$	294	$	—	$	—	$	294
Liabilities:	Non-recourse debt	19,429		18,527		—		17,089		1,438
	Recourse debt	3,894		3,505		—		3,505		—

_____________________________

(1)These amounts primarily relate to amounts impacted by the Stabilization Funds enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets.

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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest Rate And Cross Currency Derivatives By Type Table

The following tables present the Company’s maximum notional (in millions) over the remaining contractual period by type of derivative as of June 30, 2023, regardless of whether they are in qualifying cash flow hedging relationships, and the dates through which the maturities for each type of derivative range:

Interest Rate and Foreign Currency Derivatives	Maximum Notional Translated to USD		Latest Maturity
Interest rate	$	7,062	2059
Cross-currency swaps (Brazilian real)	404		2026
Foreign Currency:
Chilean peso	173		2026
Euro	142		2025
Colombian peso	49		2024
Brazilian real	28		2024
Mexican peso	12		2024
Argentine peso	3		2026

Commodity Derivatives	Maximum Notional	Latest Maturity
Natural Gas (in MMBtu)	108	2029
Power (in MWhs)	18	2040
Coal (in Tons or Metric Tons)	5	2027

Derivative Assets Liabilities At Fair Value Net By Balance Sheet Classification And Type Table

The following tables present the fair value of assets and liabilities related to the Company’s derivative instruments as of the periods indicated (in millions):

Fair Value	June 30, 2023						December 31, 2022
Assets	Designated		Not Designated		Total		Designated		Not Designated		Total
Interest rate derivatives	$	273	$	—	$	273	$	313	$	1	$	314
Foreign currency derivatives	29		57		86		27		59		86
Commodity derivatives	—		240		240		—		245		245
Total assets	$	302	$	297	$	599	$	340	$	305	$	645
Liabilities
Interest rate derivatives	$	16	$	—	$	16	$	6	$	—	$	6
Cross-currency derivatives	76		—		76		42		—		42
Foreign currency derivatives	3		19		22		9		11		20
Commodity derivatives	86		211		297		59		347		406
Total liabilities	$	181	$	230	$	411	$	116	$	358	$	474

	June 30, 2023				December 31, 2022
Fair Value	Assets		Liabilities		Assets		Liabilities
Current	$	310	$	127	$	271	$	168
Noncurrent	289		284		374		306
Total	$	599	$	411	$	645	$	474

Gain Loss In Earnings On Ineffective Portion Of Qualifying Cash Flow Hedges Table

The following table presents the pre-tax gains (losses) recognized in AOCL and earnings related to all derivative instruments for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives	$	160	$	323	$	22	$	627
Foreign currency derivatives	4		(24)		12		(12)
Commodity derivatives	(4)		32		(27)		61
Total	$	160	$	331	$	7	$	676
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives	$	13	$	(23)	$	49	$	(50)
Foreign currency derivatives	(3)		—		(3)		—
Commodity derivatives	(1)		—		13		(1)
Total	$	9	$	(23)	$	59	$	(51)
Gains (losses) on fair value hedging relationship
Cross-currency derivatives	$	(33)	$	8	$	(86)	$	(35)
Hedged items	3		(25)		53		22
Total	$	(30)	$	(17)	$	(33)	$	(13)
Loss reclassified from AOCL to earnings due to impairment of assets	$	—	$	(16)	$	—	$	(16)
Gains (losses) reclassified from AOCL to earnings due to discontinuance of hedge accounting	$	13	$	(15)	14		(15)
Gains (losses) recognized in earnings related to
Not designated as hedging instruments:
Interest rate derivatives	$	—	$	1	$	—	$	3
Foreign currency derivatives	4		4		—		(15)
Commodity derivatives and other	126		30		191		17
Total	$	130	$	35	$	191	$	5

Fair Value Measurements, Recurring and Nonrecurring

The following table summarizes our major categories of asset groups measured at fair value on a nonrecurring basis and their level within the fair value hierarchy (in millions).

	Measurement Date	Carrying Amount (1)		Fair Value						Pre-tax Loss
Six Months Ended June 30, 2023				Level 1		Level 2		Level 3
Long-lived assets held and used:
Norgener (2)	5/1/2023	$	196	$	—	$	—	$	24	$	137
GAF Projects (AES Renewable Holdings)	5/31/2023	29		—		—		11		18
Held-for-sale businesses: (3)
Jordan (4)	3/31/2023	$	179	$	—	$	170	$	—	$	14
Jordan (4)	6/30/2023	179		—		170		—		15
	Measurement Date	Carrying Amount (1)		Fair Value
Six Months Ended June 30, 2022				Level 1		Level 2		Level 3		Pre-tax Loss
Long-lived assets held and used:
Maritza	4/30/2022	$	927	$	—	$	—	$	452	$	475

_____________________________

(1)Represents the carrying values of the asset groups at the dates of measurement, before fair value adjustment.

(2)The Norgener asset group includes long-lived assets, inventory, land, and other working capital, however per ASC 360-10, the pre-tax impairment expense is limited to the carrying amount of the long-lived assets. See Note 15 — Asset Impairment Expense for further information. The Company evaluated the carrying amount of the assets outside the scope of ASC 360-10 and determined that the carrying value of the other assets should not be reduced.

(3)See Note 16 — Held-for-Sale for further information.

(4)The pre-tax loss recognized was calculated using the $170 million fair value of the Jordan disposal group less costs to sell of $5 million and $6 million for the March 31, 2023 and June 30, 2023 measurement dates, respectively.

Fair Value Of Financial Instruments Not Carried At Fair Value [Table Text Block]

The following table presents (in millions) the carrying amount, fair value, and fair value hierarchy of the Company’s financial assets and liabilities that are not measured at fair value in the Condensed Consolidated Balance Sheets as of the periods indicated, but for which fair value is disclosed:

		June 30, 2023
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	295	$	338	$	—	$	—	$	338
Liabilities:	Non-recourse debt	20,872		20,540		—		19,084		1,456
	Recourse debt	5,476		5,093		—		5,093		—

		December 31, 2022
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	255	$	294	$	—	$	—	$	294
Liabilities:	Non-recourse debt	19,429		18,527		—		17,089		1,438
	Recourse debt	3,894		3,505		—		3,505		—

_____________________________

(1)These amounts primarily relate to amounts impacted by the Stabilization Funds enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets.

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets held and used measured on a nonrecurring basis during the six months ended June 30, 2023 (in millions, except range amounts):

	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Long-lived assets held and used:
Norgener (1)	$	24	Discounted cash flow	Annual revenue growth	(90)% to 994% (85%)
				Annual variable margin	(75)% to 276% (16%)
GAF Projects (AES Renewable Holdings)	11		Discounted cash flow	Annual revenue growth	(42)% to 44% (1%)
				Annual variable margin	(194)% to 77% (66%)
				Discount rate	9%
Total	$	35

_____________________________

(1)The fair value of the Norgener asset group is mainly related to existing coal inventory not subject to impairment under ASC 360-10.

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Financing Receivables (Tables)

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Financing Receivables Table

The following table presents financing receivables by country as of the dates indicated (in millions):

	June 30, 2023						December 31, 2022
	Gross Receivable		Allowance		Net Receivable		Gross Receivable		Allowance		Net Receivable
Chile	$	244	$	—	$	244	$	239	$	—	$	239
U.S.	39		—		39		—		—		—
Other	13		—		13		18		—		18
Total	$	296	$	—	$	296	$	257	$	—	$	257

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Investments In and Advances To Affiliates (Tables)

6 Months Ended

Jun. 30, 2023

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Investments In and Advances to Affiliates Financial Information

The following table summarizes financial information of the Company’s 50%-or-less-owned affiliates and majority-owned unconsolidated subsidiaries that are accounted for using the equity method (in millions):

	50%-or-less Owned Affiliates				Majority-Owned Unconsolidated Subsidiaries
Six Months Ended June 30,	2023		2022		2023		2022
Revenue	$	1,370	$	792	$	1	$	1
Operating loss	(34)		(249)		—		—
Net loss	(91)		(323)		—		—
Net loss attributable to affiliates	(72)		(275)		—		—

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Debt (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Non-recourse debt [Table Text Block]

During the six months ended June 30, 2023, the Company’s subsidiaries had the following significant debt transactions (in millions):

Subsidiary	Transaction Period	Issuances		Repayments		Loss on Extinguishment of Debt
Netherlands and Colon	Q1	$	350	$	(500)	$	(1)
AES Brasil	Q1	169		—		—
AES Clean Energy	Q2	497		—		—
AES Ohio	Q2	100		—		—

Debt In Default

The following table summarizes the Company’s subsidiary non-recourse debt in default (in millions) as of June 30, 2023. Due to the defaults, these amounts are included in the current portion of non-recourse debt unless otherwise indicated:

Subsidiary	Primary Nature of Default	Debt in Default		Net Assets (Liabilities)
AES Maritza(1)	Covenant	$	164	$	314
AES Puerto Rico	Covenant/Payment	143		(173)
AES Ilumina (Puerto Rico)	Covenant	25		28
AES Jordan Solar	Covenant	7		11
Total		$	339

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Contingencies and Commitments (Tables)

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Contingent Contractual Obligations [Table Text Block]

The following table summarizes the Parent Company’s contingent contractual obligations as of June 30, 2023. Amounts presented in the following table represent the Parent Company’s current undiscounted exposure to guarantees and the range of maximum undiscounted potential exposure and excludes guarantees presented on the Condensed Consolidated Balance Sheets within Recourse debt. The maximum exposure is not reduced by the amounts, if any, that could be recovered under the recourse or collateralization provisions in the guarantees.

Contingent Contractual Obligations	Amount (in millions)		Number of Agreements	Maximum Exposure Range for Each Agreement (in millions)
Guarantees and commitments	$	2,610	69	<$1 — 505
Letters of credit under bilateral agreements	123		2	$59 — 64
Letters of credit under the revolving credit facility	100		11	<$1 — 60
Letters of credit under the unsecured credit facilities	95		33	<$1 — 36
Surety bonds	2		2	<$1 — 1
Total	$	2,930	117

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Leases (Tables)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Operating Lease, Lease Income [Table Text Block]

The following table presents lease revenue from operating leases in which the Company is the lessor, recognized in Revenue on the Condensed Consolidated Statements of Operations for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
Operating Lease Revenue	2023		2022		2023		2022
Total lease revenue	$	136	$	140	$	257	$	274
Less: Variable lease revenue	(24)		(16)		(32)		(23)
Total Non-variable lease revenue	$	112	$	124	$	225	$	251

Sales-type Lease, Lease Income [Table Text Block]

The following table shows the future lease receipts as of June 30, 2023 for the remainder of 2023 through 2027 and thereafter (in millions):

	Future Cash Receipts for
	Sales-Type Leases		Operating Leases
2023	$	13	$	195
2024	25		391
2025	25		392
2026	25		280
2027	25		203
Thereafter	361		544
Total	$	474	$	2,005
Less: Imputed interest	(248)
Present value of total lease receipts	$	226

Property, Plant, and Equipment, Lessor Asset under Operating Lease

The following table presents the underlying gross assets and accumulated depreciation of operating leases included in Property, plant and equipment on the Condensed Consolidated Balance Sheets as of the periods indicated (in millions):

Property, Plant and Equipment, Net	June 30, 2023		December 31, 2022
Gross assets	$	1,355	$	1,319
Less: Accumulated depreciation	(176)		(139)
Net assets	$	1,179	$	1,180

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Redeemable Stocks of Subsidiaries (Tables)

6 Months Ended

Jun. 30, 2023

Redeemable Stock of Subsidiaries [Abstract]

Temporary Equity [Table Text Block]

The following table summarizes the Company’s redeemable stock of subsidiaries balances as of the periods indicated (in millions):

	June 30, 2023		December 31, 2022
IPALCO common stock	$	765	$	782
AES Clean Energy Development common stock	439		436
AES Clean Energy Development tax equity partnerships	66		86
Potengi common and preferred stock	19		17
Total redeemable stock of subsidiaries	$	1,289	$	1,321

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Equity (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Components Of Accumulated Other Comprehensive Income

The following table summarizes the changes in AOCL by component, net of tax and NCI, for the six months ended June 30, 2023 (in millions):

	Foreign currency translation adjustment, net		Unrealized derivative gains (losses), net		Unfunded pension obligations, net		Total
Balance at the beginning of the period	$	(1,828)	$	211	$	(23)	$	(1,640)
Other comprehensive income before reclassifications	107		9		—		116
Amount reclassified to earnings	—		(43)		—		(43)
Other comprehensive income (loss)	107		(34)		—		73
Balance at the end of the period	$	(1,721)	$	177	$	(23)	$	(1,567)

Schedule Of Amounts Reclassified Out Of Accumulated Other Comprehensive Income

Reclassifications out of AOCL are presented in the following table. Amounts for the periods indicated are in millions and those in parentheses indicate debits to the Condensed Consolidated Statements of Operations:

AOCL Components	Affected Line Item in the Condensed Consolidated Statements of Operations	Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Derivative gains (losses), net
	Non-regulated revenue	$	(8)	$	—	$	(8)	$	(1)
	Non-regulated cost of sales	—		(1)		(1)		(2)
	Interest expense	13		(10)		16		(33)
	Loss on disposal and sale of business interests	—		(16)		33		(16)
	Foreign currency transaction losses	(3)		—		(3)		—
	Income (loss) from continuing operations before taxes and equity in earnings of affiliates	2		(27)		37		(52)
	Income tax benefit (expense)	(2)		3		(11)		13
	Net equity in earnings (losses) of affiliates	7		4		22		1
	Net income (loss)	7		(20)		48		(38)
	Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	(4)		(3)		(5)		8
	Net income (loss) attributable to The AES Corporation	$	3	$	(23)	$	43	$	(30)
Amortization of defined benefit pension actuarial gain (loss), net
	Regulated cost of sales	$	—	$	(1)	$	—	$	(1)
	Other expense	—		1		—		—
	Net income (loss) attributable to The AES Corporation	$	—	$	—	$	—	$	(1)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	3	$	(23)	$	43	$	(31)

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Segments (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Revenue By Segment Table

The following tables present financial information by segment for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
Total Revenue	2023		2022		2023		2022
Renewables SBU	$	541	$	455	$	1,036	$	875
Utilities SBU	852		821		1,823		1,680
Energy Infrastructure SBU	1,654		1,820		3,378		3,427
New Energy Technologies SBU	1		2		75		2
Corporate and Other	40		34		67		57
Eliminations	(61)		(54)		(113)		(111)
Total Revenue	$	3,027	$	3,078	$	6,266	$	5,930

	Three Months Ended June 30,				Six Months Ended June 30,
Reconciliation of Adjusted EBITDA (in millions)	2023		2022		2023		2022
Net income	$	(19)	$	(136)	$	170	$	35
Income tax expense (benefit)	(2)		(19)		70		41
Interest expense	310		279		640		537
Interest income	(131)		(95)		(254)		(170)
Depreciation and amortization	277		264		550		534
EBITDA	$	435	$	293	$	1,176	$	977
Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1)	(155)		(156)		(325)		(312)
Less: Income taxes expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates	27		23		66		57
Interest income recognized under service concession arrangements	18		20		36		39
Unrealized derivative and equity securities losses (gains)	32		(34)		(7)		8
Unrealized foreign currency losses	32		38		64		20
Disposition/acquisition losses	16		23		13		32
Impairment losses	164		479		173		480
Loss on extinguishment of debt	—		—		1		6
Adjusted EBITDA	$	569	$	686	$	1,197	$	1,307

_____________________________

(1)The allocation of earnings to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA.

	Three Months Ended June 30,				Six Months Ended June 30,
Adjusted EBITDA	2023		2022		2023		2022
Renewables SBU	$	166	$	162	$	290	$	281
Utilities SBU	148		135		310		319
Energy Infrastructure SBU	282		379		645		733
New Energy Technologies SBU	(13)		(26)		(39)		(61)
Corporate and Other	13		(3)		12		1
Eliminations	(27)		39		(21)		34
Adjusted EBITDA	$	569	$	686	$	1,197	$	1,307

The Company uses long-lived assets as its measure of segment assets. Long-lived assets includes amounts recorded in Property, plant and equipment, net and right-of-use assets for operating leases recorded in Other noncurrent assets on the Condensed Consolidated Balance Sheets.

Long-Lived Assets	June 30, 2023		December 31, 2022
Renewables SBU	$	12,220	$	9,533
Utilities SBU	6,602		6,311
Energy Infrastructure SBU	7,613		7,532
New Energy Technologies SBU	1		2
Corporate and Other	16		17
Long-Lived Assets	26,452		23,395
Current assets	7,205		7,643
Investments in and advances to affiliates	858		952
Debt service reserves and other deposits	171		177
Goodwill	362		362
Other intangible assets	2,282		1,841
Deferred income taxes	383		319
Loan receivable	1,018		1,051
Other noncurrent assets, excluding right-of-use assets for operating leases	2,774		2,623
Total Assets	$	41,505	$	38,363

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Revenue (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contracts with Customers [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table presents our revenue from contracts with customers and other revenue for the periods indicated (in millions):

	Three Months Ended June 30, 2023
	Renewables SBU		Utilities SBU		Energy Infrastructure SBU		New Energy Technologies SBU		Corporate, Other and Eliminations		Total
Non-Regulated Revenue
Revenue from contracts with customers	$	505	$	18	$	1,490	$	—	$	(21)	$	1,992
Other non-regulated revenue (1)	36		—		164		1		—		201
Total non-regulated revenue	541		18		1,654		1		(21)		2,193
Regulated Revenue
Revenue from contracts with customers	—		825		—		—		—		825
Other regulated revenue	—		9		—		—		—		9
Total regulated revenue	—		834		—		—		—		834
Total revenue	$	541	$	852	$	1,654	$	1	$	(21)	$	3,027
	Three Months Ended June 30, 2022
	Renewables SBU		Utilities SBU		Energy Infrastructure SBU		New Energy Technologies SBU		Corporate, Other and Eliminations		Total
Non-Regulated Revenue
Revenue from contracts with customers	$	406	$	18	$	1,676	$	1	$	(20)	$	2,081
Other non-regulated revenue (1)	49		1		144		1		—		195
Total non-regulated revenue	455		19		1,820		2		(20)		2,276
Regulated Revenue
Revenue from contracts with customers	—		794		—		—		—		794
Other regulated revenue	—		8		—		—		—		8
Total regulated revenue	—		802		—		—		—		802
Total revenue	$	455	$	821	$	1,820	$	2	$	(20)	$	3,078

	Six Months Ended June 30, 2023
	Renewables SBU		Utilities SBU		Energy Infrastructure SBU		New Energy Technologies SBU		Corporate, Other and Eliminations		Total
Non-Regulated Revenue
Revenue from contracts with customers	$	982	$	35	$	3,062	$	74	$	(46)	$	4,107
Other non-regulated revenue (1)	54		2		316		1		—		373
Total non-regulated revenue	1,036		37		3,378		75		(46)		4,480
Regulated Revenue
Revenue from contracts with customers	—		1,769		—		—		—		1,769
Other regulated revenue	—		17		—		—		—		17
Total regulated revenue	—		1,786		—		—		—		1,786
Total revenue	$	1,036	$	1,823	$	3,378	$	75	$	(46)	$	6,266
	Six Months Ended June 30, 2022
	Renewables SBU		Utilities SBU		Energy Infrastructure SBU		New Energy Technologies SBU		Corporate, Other and Eliminations		Total
Non-Regulated Revenue
Revenue from contracts with customers	$	831	$	41	$	3,177	$	1	$	(54)	$	3,996
Other non-regulated revenue (1)	44		2		250		1		—		297
Total non-regulated revenue	875		43		3,427		2		(54)		4,293
Regulated Revenue
Revenue from contracts with customers	—		1,622		—		—		—		1,622
Other regulated revenue	—		15		—		—		—		15
Total regulated revenue	—		1,637		—		—		—		1,637
Total revenue	$	875	$	1,680	$	3,427	$	2	$	(54)	$	5,930

_______________________________

(1)         Other non-regulated revenue primarily includes lease and derivative revenue not accounted for under ASC 606.

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Other Income and Expense (Tables)

6 Months Ended

Jun. 30, 2023

Other Income and Expenses [Abstract]

Schedule of other Income and other expense [Table Text Block]

The components are summarized as follows (in millions):

		Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Other Income	AFUDC (US Utilities)	$	3	$	2	$	6	$	5
	Legal settlements	—		6		3		6
	Gain on sale of assets	—		—		2		—
	Gain on remeasurement of investment (1)	—		26		—		26
	Insurance proceeds (2)	—		16		—		16
	Gain on acquired customer contracts	—		5		—		5
	Gain on remeasurement of contingent consideration	—		3		—		3
	Other	11		12		13		15
	Total other income	$	14	$	70	$	24	$	76
Other Expense	Loss on sale and disposal of assets	$	7	$	5	$	9	$	9
	Loss on remeasurement of contingent consideration	1		—		8		—
	Non-service pension and other postretirement costs	3		—		7		—
	Allowance for lease receivable (3)	—		20		—		20
	Other	1		4		2		12
	Total other expense	$	12	$	29	$	26	$	41

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Asset Impairment Expense (Tables)

6 Months Ended

Jun. 30, 2023

Impairment or Disposal of Tangible Assets Disclosure [Abstract]

Details of Impairment of Long-Lived Assets Held and Used by Asset [Table Text Block]

The following table presents our asset impairment expense for the periods indicated (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Norgener	$	137	$	—	$	137	$	—
Jordan	15		—		29		—
GAF Projects (AES Renewable Holdings)	18		—		18		—
Maritza	—		475		—		475
Other	4		7		10		8
Total	$	174	$	482	$	194	$	483

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Held-for-Sale and Dispositions (Tables)

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Disclosure of Long Lived Assets Held-for-sale [Table Text Block]

Excluding any impairment charges, pre-tax income attributable to AES of businesses held-for-sale as of June 30, 2023 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2023		2022		2023		2022
Jordan	$	6	$	6	$	11	$	11

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share Basic And Diluted Table

The following table is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for income from continuing operations for the three and six months ended June 30, 2023 and 2022, where income represents the numerator and weighted average shares represent the denominator.

Three Months Ended June 30,	2023					2022
(in millions, except per share data)	Loss		Shares	$ per Share		Loss		Shares	$ per Share
BASIC EARNINGS (LOSS) PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	(39)	669	$	(0.06)	$	(179)	668	$	(0.27)
EFFECT OF DILUTIVE SECURITIES
Stock options	—		—	—		—		—	—
Restricted stock units	—		—	—		—		—	—
Equity units	—		—	—		—		—	—
DILUTED EARNINGS (LOSS) PER SHARE	$	(39)	669	$	(0.06)	$	(179)	668	$	(0.27)

Six Months Ended June 30,	2023					2022
(in millions, except per share data)	Income		Shares	$ per Share		Loss		Shares	$ per Share
BASIC EARNINGS (LOSS) PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	112	669	$	0.17	$	(64)	668	$	(0.10)
EFFECT OF DILUTIVE SECURITIES
Stock options	—		1	—		—		—	—
Restricted stock units	—		2	—		—		—	—
Equity units	—		40	(0.01)		—		—	—
DILUTED EARNINGS (LOSS) PER SHARE	$	112	712	$	0.16	$	(64)	668	$	(0.10)

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Financial Statement Presentation New Accounting Pronouncement Adopted (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) agreement	Jun. 30, 2022 USD ($) Rate	Dec. 31, 2022 USD ($) agreement Rate	Dec. 31, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and Cash Equivalents, at Carrying Value	$ 1,322		$ 1,374
Restricted Cash and Cash Equivalents, Current	517		536
Debt service reserves and other deposits	171		177
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	2,010	$ 1,651	2,087	$ 1,484
Accounts Receivable, Allowance for Credit Loss, Current	8		5
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)	19	28
Accounts Receivable, Allowance for Credit Loss, Writeoff	(27)	(11)
Financing Receivable, Allowance for Credit Loss, Recovery	(1)	0
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	(10)	(5)
Accounts and Financing Receivable, Allowance for Credit Loss	67	75	84	63
Loans and Leases Receivable, Allowance	25		26
Allowance for Doubtful Accounts, Premiums and Other Receivables		5
Preferred Stock, Value, Issued	838	838	838
Additional Paid in Capital	$ 6,550		6,688
Obligations Number Of Agreements	117
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 2,930
Secured Debt [Member] | Standby Letters of Credit [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Obligations Number Of Agreements | agreement	2
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 123
Accounts Payable and Accrued Liabilities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Supplier Finance Program, Obligation, Current	$ 617		$ 662
Obligations Number Of Agreements | agreement	65		46
Accounts Payable and Accrued Liabilities | Supplier Finance Program [Domain]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Supplier Finance Program, Obligation, Current		477	$ 296
Accounts Payable and Accrued Liabilities | Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Supplier Finance Program, Obligation, Current			1
Accounts Payable and Accrued Liabilities | Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Supplier Finance Program, Obligation, Current		$ 69	$ 88
Accounts Payable and Accrued Liabilities | Weighted Average [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt, Weighted Average Interest Rate | Rate		6.95%	4.32%
Accounts Receivable [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current	$ 8	$ 4	$ 3	3
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)	10	5
Accounts Receivable, Allowance for Credit Loss, Writeoff	(7)	(5)
Financing Receivable, Allowance for Credit Loss, Recovery	(2)	(1)
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	0	0
Mong Duong Subsidiary [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current	28	29	29	30
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)	0	0
Accounts Receivable, Allowance for Credit Loss, Writeoff	0	0
Financing Receivable, Allowance for Credit Loss, Recovery	(1)	(1)
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	0	0
AES Argentina [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current	21	21	30	23
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)	0	3
Accounts Receivable, Allowance for Credit Loss, Writeoff	0	0
Financing Receivable, Allowance for Credit Loss, Recovery	0	0
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	(9)	(5)
AES Southland [Domain] | Accounts Receivable [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current	0	20	20	0
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)	0	20
Accounts Receivable, Allowance for Credit Loss, Writeoff	(20)	0
Financing Receivable, Allowance for Credit Loss, Recovery	0	0
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	0	0
Other Entity [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, Allowance for Credit Loss, Current	10	1	$ 2	$ 7
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)	9	0
Accounts Receivable, Allowance for Credit Loss, Writeoff	0	(6)
Financing Receivable, Allowance for Credit Loss, Recovery	0	0
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	$ (1)	$ 0

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Inventory (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Fuel and other raw materials	$ 483	$ 733
Spare parts and supplies	291	322
Total	$ 774	$ 1,055

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Fair Value (Recurring Measurements) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	$ (290)	$ 11	$ (290)	$ 11	$ (31)	$ (67)	$ 12	$ 37
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	1,329		1,329		1,384
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability					48
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	411		411		474
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	5	(35)	(2)	(46)
Fair Value Measurements with Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	(3)	(15)	(2)	(15)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(13)	7	(11)	7
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	31		31
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	(9)	(6)	(1)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	(3)	(29)	(10)	(42)
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	(16)		(16)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				4
Other Asset Impairment Charges	174	482	194	483
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	685		685		522
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases	(218)	(15)	(218)	(15)
Foreign currency translation adjustments, net of $0 income tax for all periods	79	(149)	119	(17)
Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	677		677		698
US Government Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	3		3		3
Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	680		680		701
Mutual Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	44		44		38
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	50		50		38
Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	273		273		314
Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	86		86		86
Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	240		240		245
Derivative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	599		599		645
Contingent Consideration Type [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	274		274		48
Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(1)	1	(1)	1	0	(5)	1	(6)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	16		16		6
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	0	1	0	3
Fair Value Measurements with Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	0	0	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(2)	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	0	1	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	(10)	(6)	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	0	1	0	3
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				6
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases	0	0	0	0
Foreign currency translation adjustments, net of $0 income tax for all periods				0
Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	76		76		42
Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	63	50	63	50	64	62	93	108
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	22		22		20
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	7	(32)	6	(44)
Fair Value Measurements with Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	0	0	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(9)	0	(9)	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	0	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	0	(32)	(1)	(44)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases	0	0	0	0
Foreign currency translation adjustments, net of $0 income tax for all periods				0
Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(78)	37	(78)	37	(47)	$ (69)	$ (13)	(1)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	297		297		406
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	(1)	(4)	(1)	(4)
Fair Value Measurements with Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	(3)	(15)	2	(15)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(2)	2	(2)	2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	31	0	31
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	1	0	(1)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	(2)	0	(1)	1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				(2)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases	0	0	0	0
Contingent Consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(274)	(77)	(274)	(77)	(48)			$ (64)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings			(7)	(1)
Fair Value Measurements with Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities			0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements			0	5
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3			0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3			0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)			(8)	(2)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases			(218)	(15)
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	44		44		38
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability			0		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	0		0		0
Level 1 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 1 [Member] | US Government Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 1 [Member] | Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 1 [Member] | Mutual Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	44		44		38
Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	44		44		38
Level 1 [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 1 [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 1 [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 1 [Member] | Derivative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 1 [Member] | Contingent Consideration Type [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 1 [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0		0
Level 1 [Member] | Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0		0
Level 1 [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0		0
Level 1 [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0		0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	1,215		1,215		1,269
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability			0		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	325		325		414
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	325		325		414
Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	677		677		698
Level 2 [Member] | US Government Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	3		3		3
Level 2 [Member] | Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	680		680		701
Level 2 [Member] | Mutual Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 2 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	6		6		0
Level 2 [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	273		273		314
Level 2 [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	23		23		22
Level 2 [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	233		233		232
Level 2 [Member] | Derivative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	529		529		568
Level 2 [Member] | Contingent Consideration Type [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 2 [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	15		15		6
Level 2 [Member] | Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	76		76		42
Level 2 [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	22		22		20
Level 2 [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	212		212		346
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	70		70		77
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability					48
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	86		86		60
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	360		360		108
Level 3 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 3 [Member] | US Government Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 3 [Member] | Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 3 [Member] | Mutual Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 3 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 3 [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0
Level 3 [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	63		63		64
Level 3 [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	7		7		13
Level 3 [Member] | Derivative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	70		70		77
Level 3 [Member] | Contingent Consideration Type [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	274		274		48
Level 3 [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	1		1		0
Level 3 [Member] | Cross currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0		0
Level 3 [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0		0
Level 3 [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	85		85		$ 60
Other comprehensive income - Derivative activity [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	9	0	(25)	(12)
Other comprehensive income - Derivative activity [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	16	5	0	10
Other comprehensive income - Derivative activity [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	3	(11)	2	(14)
Other comprehensive income - Derivative activity [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	(10)	6	(27)	(8)
Other comprehensive income - Derivative activity [Member] | Contingent Consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)			0	0
Other Comprehensive Income- Foreign currency translation activity [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	0	2	(1)
Foreign currency translation adjustments, net of $0 income tax for all periods				(2)
Other Comprehensive Income- Foreign currency translation activity [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	0	0	0
Other Comprehensive Income- Foreign currency translation activity [Member] | Foreign currency derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	0	0	0
Other Comprehensive Income- Foreign currency translation activity [Member] | Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	$ 0	$ 0	0
Foreign currency translation adjustments, net of $0 income tax for all periods				0
Other Comprehensive Income- Foreign currency translation activity [Member] | Contingent Consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)			$ (1)
Foreign currency translation adjustments, net of $0 income tax for all periods				$ (2)
Measurement Input, Entity Credit Risk [Member] | Minimum [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring			0.40%
Measurement Input, Entity Credit Risk [Member] | Maximum [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring			2.50%
Measurement Input, Entity Credit Risk [Member] | Weighted Average [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring			1.70%

XML

Fair Value Investment in Marketable Securities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Gain Loss On Marketable Securities
Gross proceeds from sales of AFS securities	$ 370	$ 150	$ 739	$ 347

XML

Fair Value (Level 3 Reconciliation) (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	$ (290)	$ 11	$ (290)	$ 11	$ (67)	$ (31)	$ 12	$ 37
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	5	(35)	(2)	(46)
Foreign currency translation adjustments, net of $0 income tax for all periods	79	(149)	119	(17)
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	(16)		(16)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(13)	7	(11)	7
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	31		31
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	9	6	1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				(4)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	(3)	(29)	(10)	(42)
Other comprehensive income - Derivative activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	9	0	(25)	(12)
Other Comprehensive Income- Foreign currency translation activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	0	2	(1)
Foreign currency translation adjustments, net of $0 income tax for all periods				(2)
Other derivative Contract [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	8		8
Interest Rate Contract [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(1)	1	(1)	1	(5)	0	1	(6)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	0	1	0	3
Foreign currency translation adjustments, net of $0 income tax for all periods				0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(2)	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	0	1	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	10	6	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				(6)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	0	1	0	3
Interest Rate Contract [Member] | Other comprehensive income - Derivative activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	16	5	0	10
Interest Rate Contract [Member] | Other Comprehensive Income- Foreign currency translation activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	0	0	0
Foreign currency derivatives [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	63	50	63	50	62	64	93	108
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	7	(32)	6	(44)
Foreign currency translation adjustments, net of $0 income tax for all periods				0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(9)	0	(9)	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	0	(32)	(1)	(44)
Foreign currency derivatives [Member] | Other comprehensive income - Derivative activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	3	(11)	2	(14)
Foreign currency derivatives [Member] | Other Comprehensive Income- Foreign currency translation activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	0	0	0
Commodity Contract [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(78)	37	(78)	37	$ (69)	$ (47)	$ (13)	$ (1)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	(1)	(4)	(1)	(4)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(2)	2	(2)	2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	0	31	0	31
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	(1)	0	1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3				2
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	(2)	0	(1)	1
Commodity Contract [Member] | Other comprehensive income - Derivative activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	(10)	6	(27)	(8)
Commodity Contract [Member] | Other Comprehensive Income- Foreign currency translation activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	$ 0	$ 0	$ 0
Foreign currency translation adjustments, net of $0 income tax for all periods				$ 0
Minimum [Member] | Interest Rate Contract [Member] | Measurement Input, Entity Credit Risk [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value Measurement Inputs, Nonrecurring			0.40%
Minimum [Member] | Foreign Exchange | Argentina, Pesos
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Derivative, Forward Exchange Rate	576		576
Maximum [Member] | Interest Rate Contract [Member] | Measurement Input, Entity Credit Risk [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value Measurement Inputs, Nonrecurring			2.50%
Maximum [Member] | Foreign Exchange | Argentina, Pesos
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Derivative, Forward Exchange Rate	957		957
Weighted Average [Member] | Interest Rate Contract [Member] | Measurement Input, Entity Credit Risk [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Fair Value Measurement Inputs, Nonrecurring			1.70%
Weighted Average [Member] | Foreign Exchange | Argentina, Pesos
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Derivative, Forward Exchange Rate	854		854

XML

Fair Value (Quantitative Information) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Fair Value Inputs Quantitative Information [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	$ (290)	$ 11	$ (290)	$ 11	$ (67)	$ (31)	$ 12	$ 37
Fair Value Derivative Assets Liabilities Measured On Recurring Basis Unobservable Inputs [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	5	(35)	(2)	(46)
Fair Value Measurements With Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	(16)		(16)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(13)	7	(11)	7
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers into Level 3			1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	9	6	1
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	(3)	(29)	(10)	(42)
Other comprehensive income - Derivative activity [Member]
Fair Value Derivative Assets Liabilities Measured On Recurring Basis Unobservable Inputs [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	9	0	(25)	(12)
Interest Rate Contract [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(1)	1	(1)	1	(5)	0	1	(6)
Fair Value Derivative Assets Liabilities Measured On Recurring Basis Unobservable Inputs [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	0	1	0	3
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(2)	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	10	6	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	0	1	0	3
Interest Rate Contract [Member] | Other comprehensive income - Derivative activity [Member]
Fair Value Derivative Assets Liabilities Measured On Recurring Basis Unobservable Inputs [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	16	5	0	10
Foreign Exchange Contract [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	63	50	63	50	62	64	93	108
Fair Value Derivative Assets Liabilities Measured On Recurring Basis Unobservable Inputs [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	7	(32)	6	(44)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(9)	0	(9)	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	0	0	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	0	(32)	(1)	(44)
Foreign Exchange Contract [Member] | Other comprehensive income - Derivative activity [Member]
Fair Value Derivative Assets Liabilities Measured On Recurring Basis Unobservable Inputs [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	3	(11)	2	(14)
Commodity Contract [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(78)	37	(78)	37	$ (69)	$ (47)	$ (13)	$ (1)
Fair Value Derivative Assets Liabilities Measured On Recurring Basis Unobservable Inputs [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	(1)	(4)	(1)	(4)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	(2)	2	(2)	2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	(1)	0	1
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	(2)	0	(1)	1
Commodity Contract [Member] | Other comprehensive income - Derivative activity [Member]
Fair Value Derivative Assets Liabilities Measured On Recurring Basis Unobservable Inputs [Abstract]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	$ (10)	$ 6	$ (27)	$ (8)
Measurement Input, Entity Credit Risk [Member] | Interest Rate Contract [Member] | Minimum [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value Measurement Inputs, Nonrecurring			0.40%
Measurement Input, Entity Credit Risk [Member] | Interest Rate Contract [Member] | Maximum [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value Measurement Inputs, Nonrecurring			2.50%
Measurement Input, Entity Credit Risk [Member] | Interest Rate Contract [Member] | Weighted Average [Member]
Fair Value Inputs Quantitative Information [Line Items]
Fair Value Measurement Inputs, Nonrecurring			1.70%

XML

Fair Value (Nonrecurring Measurements) (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges	$ 174,000,000		$ 482,000,000	$ 194,000,000	$ 483,000,000
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(290,000,000)	$ (67,000,000)	11,000,000	(290,000,000)	11,000,000	$ (31,000,000)	$ 12,000,000	$ 37,000,000
Corporate, Non-Segment | Corporate Other And Other Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted EBITDA	13,000,000		(3,000,000)	12,000,000	1,000,000
Operating Segments [Member] | Renewables
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted EBITDA	166,000,000		162,000,000	290,000,000	281,000,000
Operating Segments [Member] | Utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted EBITDA	148,000,000		135,000,000	310,000,000	319,000,000
Operating Segments [Member] | Energy Infrastructure
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted EBITDA	282,000,000		379,000,000	645,000,000	733,000,000
Operating Segments [Member] | New Energy Technologies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted EBITDA	(13,000,000)		(26,000,000)	(39,000,000)	(61,000,000)
Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(78,000,000)	(69,000,000)	37,000,000	(78,000,000)	37,000,000	$ (47,000,000)	$ (13,000,000)	$ (1,000,000)
Other Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	8,000,000			8,000,000
Commodity Option
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	(86,000,000)			(86,000,000)
Jordan (IPP1 & IPP4)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling Expense	6,000,000	5,000,000
Weighted Average [Member] | Commodity | United States of America, Dollars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, Commodity prices				52
Maximum [Member] | Commodity | United States of America, Dollars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, Commodity prices				97
Minimum [Member] | Commodity | United States of America, Dollars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, Commodity prices				12
Long Lived Assets Held And Used [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges	0		475,000,000	0	475,000,000
Long Lived Assets Held And Used [Member] | Jordan (IPP1 & IPP4)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges	15,000,000	14,000,000	0	29,000,000	0
Long Lived Assets Held And Used [Member] | Norgener
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges	137,000,000		0	137,000,000	0
Long Lived Assets Held And Used [Member] | AES Renewable Holdings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges	18,000,000		0	18,000,000	0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Maritza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			927,000,000		927,000,000
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Maritza | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Maritza | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Maritza | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			$ 452,000,000		$ 452,000,000
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Jordan (IPP1 & IPP4)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	179,000,000	179,000,000		179,000,000
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Jordan (IPP1 & IPP4) | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	0	0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Jordan (IPP1 & IPP4) | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	170,000,000	170,000,000		170,000,000
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Jordan (IPP1 & IPP4) | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	0	$ 0		0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Norgener
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	196,000,000			196,000,000
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Norgener | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	0			0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Norgener | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	0			0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | Norgener | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	24,000,000			24,000,000
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | AES Renewable Holdings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	29,000,000			29,000,000
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | AES Renewable Holdings | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	0			0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | AES Renewable Holdings | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	0			0
Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member] | AES Renewable Holdings | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	11,000,000			11,000,000
Long Lived Assets held and Used | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	35,000,000			35,000,000
Long Lived Assets held and Used | Estimate of Fair Value Measurement [Member] | Norgener | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	24,000,000			24,000,000
Long Lived Assets held and Used | Estimate of Fair Value Measurement [Member] | AES Renewable Holdings | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	$ 11,000,000			$ 11,000,000
Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Weighted Average [Member] | Norgener
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				85.00%
Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Weighted Average [Member] | AES Renewable Holdings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				1.00%
Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Maximum [Member] | Norgener
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				994.00%
Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Maximum [Member] | AES Renewable Holdings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				44.00%
Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Minimum [Member] | Norgener
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				(90.00%)
Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Minimum [Member] | AES Renewable Holdings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				(42.00%)
Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Weighted Average [Member] | AES Renewable Holdings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				9.00%
Measurement Input, Variable Margin | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Weighted Average [Member] | Norgener
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				16.00%
Measurement Input, Variable Margin | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Weighted Average [Member] | AES Renewable Holdings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				66.00%
Measurement Input, Variable Margin | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Maximum [Member] | Norgener
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				276.00%
Measurement Input, Variable Margin | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Maximum [Member] | AES Renewable Holdings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				77.00%
Measurement Input, Variable Margin | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Minimum [Member] | Norgener
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				(75.00%)
Measurement Input, Variable Margin | Valuation, Income Approach [Member] | Property, Plant and Equipment [Member] | Minimum [Member] | AES Renewable Holdings
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Inputs, Nonrecurring				(194.00%)

XML

Fair Value (Instruments Not Measured at Fair Value) (Details) - USD ($) $ in Millions		Jun. 30, 2023	Dec. 31, 2022
Estimate of Fair Value Measurement [Member]
Assets, Fair Value Disclosure [Abstract]
Accounts receivable - noncurrent	[1]	$ 338	$ 294
Liabilities, Fair Value Disclosure [Abstract]
Non-recourse debt, including $2,032 and $2,295, respectively, related to variable interest entities		20,540	18,527
Recourse debt		5,093	3,505
Carrying Amount [Member]
Assets, Fair Value Disclosure [Abstract]
Accounts receivable - noncurrent	[1]	295	255
Liabilities, Fair Value Disclosure [Abstract]
Non-recourse debt, including $2,032 and $2,295, respectively, related to variable interest entities		20,872	19,429
Recourse debt		5,476	3,894
Non-recourse debt, including $2,032 and $2,295, respectively, related to variable interest entities		18,622	17,846
Level 1 [Member] | Estimate of Fair Value Measurement [Member]
Assets, Fair Value Disclosure [Abstract]
Accounts receivable - noncurrent		0	0
Liabilities, Fair Value Disclosure [Abstract]
Non-recourse debt, including $2,032 and $2,295, respectively, related to variable interest entities		0	0
Recourse debt		0	0
Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Assets, Fair Value Disclosure [Abstract]
Accounts receivable - noncurrent		0	0
Liabilities, Fair Value Disclosure [Abstract]
Non-recourse debt, including $2,032 and $2,295, respectively, related to variable interest entities		19,084	17,089
Recourse debt		5,093	3,505
Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Assets, Fair Value Disclosure [Abstract]
Accounts receivable - noncurrent	[1]	338	294
Liabilities, Fair Value Disclosure [Abstract]
Non-recourse debt, including $2,032 and $2,295, respectively, related to variable interest entities		1,456	1,438
Recourse debt		$ 0	$ 0

[1] These amounts primarily relate to amounts impacted by the Stabilization Funds enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets.

XML

Derivative Instruments and Hedging Activities - Part 1 (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Derivative Tables [Line Items]
Derivative Liability, Fair Value, Gross Liability	$ (411,000,000)	$ (474,000,000)
Natural Gas and Natural Gas Liquids [Member]
Derivative Tables [Line Items]
Commodity Contract Asset, Current	108,000,000
Energy [Domain]
Derivative Tables [Line Items]
Commodity Contract Asset, Current	18,000,000
Coal [Member]
Derivative Tables [Line Items]
Commodity Contract Asset, Current	5,000,000
Interest Rate Contract [Member]
Derivative Tables [Line Items]
Derivative Liability, Fair Value, Gross Liability	(16,000,000)	(6,000,000)
Interest Rate Contract [Member] | Libor and Euribor [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	7,062,000,000
Cross currency derivatives [Member]
Derivative Tables [Line Items]
Derivative Liability, Fair Value, Gross Liability	(76,000,000)	(42,000,000)
Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivative Liability, Fair Value, Gross Liability	(22,000,000)	(20,000,000)
Commodity Contract [Member]
Derivative Tables [Line Items]
Derivative Liability, Fair Value, Gross Liability	(297,000,000)	$ (406,000,000)
Unidad de Fomento (funds code) | Cross currency derivatives [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	404,000,000
Argentina, Pesos | Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	3,000,000
Chile, Pesos | Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	173,000,000
Colombia, Pesos | Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	49,000,000
Mexico, Pesos | Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	142,000,000
Euro Member Countries, Euro | Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	12,000,000
Brazil, Brazil Real | Foreign Exchange Contract [Member]
Derivative Tables [Line Items]
Derivatives, notional amount	$ 28,000,000

XML

Derivative Instruments and Hedging Activities - Part 2 (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Liabilities
Derivative Liability, Fair Value, Gross Liability	$ 411	$ 474
Derivative Liabilities, Net	685	522
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	$ 599	$ 645
Derivative Asset, Noncurrent	Other noncurrent assets, net of allowance of $21 and $51, respectively	Other noncurrent assets, net of allowance of $21 and $51, respectively
Derivative Liability, Noncurrent	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration]	Other current assets	Other current assets
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities, Current	Accrued Liabilities, Current
Designated as Hedging Instruments [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	$ 181	$ 116
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	302	340
Not Designated as Hedging Instruments [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	230	358
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	297	305
Interest Rate Contract [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	16	6
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	273	314
Interest Rate Contract [Member] | Designated as Hedging Instruments [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	16	6
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	273	313
Interest Rate Contract [Member] | Not Designated as Hedging Instruments [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	0	0
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	0	1
Cross currency derivatives [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	76	42
Cross currency derivatives [Member] | Designated as Hedging Instruments [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	76	42
Cross currency derivatives [Member] | Not Designated as Hedging Instruments [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	0	0
Foreign Exchange Contract [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	22	20
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	86	86
Foreign Exchange Contract [Member] | Designated as Hedging Instruments [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	3	9
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	29	27
Foreign Exchange Contract [Member] | Not Designated as Hedging Instruments [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	19	11
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	57	59
Commodity Contract [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	297	406
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	240	245
Commodity Contract [Member] | Designated as Hedging Instruments [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	86	59
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	0	0
Commodity Contract [Member] | Not Designated as Hedging Instruments [Member]
Liabilities
Derivative Liability, Fair Value, Gross Liability	211	347
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Assets, Gross	$ 240	$ 245

XML

Derivative Instruments and Hedging Activities - Part 3 (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Cash Flow Hedging [Member]
Derivative Instruments Gain Loss [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ 9	$ (23)	$ 59	$ (51)
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	160	331	7	676
Cash Flow Hedging [Member] | Commodity Contract [Member]
Derivative Instruments Gain Loss [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(1)	0	13	(1)
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	(4)	32	(27)	61
Cash Flow Hedging [Member] | Foreign currency derivatives [Member]
Derivative Instruments Gain Loss [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(3)	0	(3)	0
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	4	(24)	12	(12)
Cash Flow Hedging [Member] | Interest Rate Contract [Member]
Derivative Instruments Gain Loss [Line Items]
Accumulated Other Comprehensive Income Loss Before Tax Expected Increase Decrease Next Twelve Months	39		39
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	13	(23)	49	(50)
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	160	323	22	627
Loss on Cash Flow Hedges due to impairment of assets	0	(16)	0	(16)
Loss on Cash Flow Hedges due to change in forecast	13	(15)	14	(15)
Fair Value Hedging
Derivative Instruments Gain Loss [Line Items]
Gain (Loss) on Hedging Activity	(30)	(17)	(33)	(13)
Fair Value Hedging | Other Contract [Member]
Derivative Instruments Gain Loss [Line Items]
Gain (Loss) on Hedging Activity	3	(25)	53	22
Not Designated as Hedging Instrument [Member]
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	130	35	191	5
Not Designated as Hedging Instrument [Member] | Other Contract [Member]
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	126	30	191	17
Not Designated as Hedging Instrument [Member] | Foreign currency derivatives [Member]
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	4	4	0	(15)
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member]
Gain Loss By Type Of Derivative Tables
Gains (Losses) Recognized in Earnings (not designated as hedging instruments)	0	1	0	3
Designated as Hedging Instruments [Member] | Fair Value Hedging
Derivative Instruments Gain Loss [Line Items]
Gain (Loss) on Hedging Activity	$ (33)	$ 8	$ (86)	$ (35)

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Derivative Instruments and Hedging Activities Credit Risk-Related Contingent Features (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Derivative [Line Items]
Derivative, Net Liability Position, Aggregate Fair Value	$ 411	$ 474

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Financing Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable Recorded Investment [Line Items]
Financing Receivable, before Allowance for Credit Loss	$ 296	$ 257
Financing Receivable, Allowance for Credit Loss	0	0
Financing receivable	296	257
Accounts Receivable, Allowance for Credit Loss, Current	8	5
Other current assets	1,449	1,533
Chile [Member]
Financing Receivable Recorded Investment [Line Items]
Financing Receivable, before Allowance for Credit Loss	244	239
Financing Receivable, Allowance for Credit Loss	0	0
Financing receivable	244	239
Accounts Receivable, Allowance for Credit Loss, Noncurrent	226
Other current assets	18
Other Entity [Member]
Financing Receivable Recorded Investment [Line Items]
Financing Receivable, before Allowance for Credit Loss	13	18
Financing Receivable, Allowance for Credit Loss	0	0
Financing receivable	13	18
UNITED STATES
Financing Receivable Recorded Investment [Line Items]
Financing Receivable, before Allowance for Credit Loss	39	0
Financing Receivable, Allowance for Credit Loss	0	0
Financing receivable	$ 39	$ 0

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Investments In and Advances To Affiliates (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended
	Feb. 28, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 31, 2022	Mar. 04, 2021
Investments in and Advances to Affiliates [Line Items]
Noncash or Part Noncash Divestiture, Amount of Consideration Received				$ 218	$ 15
Revenue		$ 3,027	$ 3,078	6,266	5,930
Operating loss		498	563	1,092	1,093
Gain (Loss) on Disposition of Business		(4)	(2)	(4)	(1)
Income (Loss) from Equity Method Investments		$ (25)	$ 5	(29)	(28)
Contributions and loans to equity affiliates				112	169
Shares Issued, Price Per Share							$ 25.81	$ 25.88
sPower OpCo B
Investments in and Advances to Affiliates [Line Items]
Equity Method Investment, Ownership Percentage	26.00%					50.00%
Majority Owned Affiliate [Member]
Investments in and Advances to Affiliates [Line Items]
Revenue				1	1
Operating loss				0	0
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest				0	0
Net Income (Loss) attributable to affiliates				0	0
Minority Owned Affiliates [Member]
Investments in and Advances to Affiliates [Line Items]
Revenue				1,370	792
Operating loss				(34)	(249)
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest				(91)	(323)
Net Income (Loss) attributable to affiliates				$ (72)	$ (275)
sPower OpCo B
Investments in and Advances to Affiliates [Line Items]
Equity Method Investment, Ownership Percentage Sold						49.00%
Proceeds from Sale of Equity Method Investments	$ 98
Equity Method Investment, Realized Gain (Loss) on Disposal (less than)	5
Equity Method Investment, Amount Sold	$ 196

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Debt - Recourse Debt (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023
Debt Instrument [Line Items]
Borrowings under the revolving credit facilities and commercial paper program			$ 16,716	$ 3,100
Loss on extinguishment of debt	$ 0	$ (1)	$ (1)	$ (7)
Debt defaults at risk of causing cross default	0		0
Bridge Loan due Dec 2023 | Bridge Loan | AES Clean Energy Development
Debt Instrument [Line Items]
Issued senior notes	$ 500		$ 500
Corporate Other And Other Eliminations [Member] | Commercial Paper
Debt Instrument [Line Items]
Commercial Paper Maximum Borrowings					$ 750
Commercial Paper Outstanding Borrowings	$ 517		$ 517
Commercial Paper Outstanding, Weighted Average Interest Rate	0.0606		0.0606
Corporate Other And Other Eliminations [Member] | 900 Million Senior Notes Due 2028 | Senior Notes [Member]
Debt Instrument [Line Items]
Issued senior notes	$ 900		$ 900
Debt Instrument, Interest Rate, Stated Percentage	5.45%		5.45%

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Debt - Non-Recourse Debt Narrative (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended		18 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Dec. 31, 2022	Dec. 14, 2022	Dec. 13, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt					$ 1,457	$ 3,132
Loss on extinguishment of debt	$ 0		$ (1)		(1)	$ (7)
Restricted Net Assets	1,800				1,800		$ 1,800
Restricted Cash And Debt Service Reserves	402				402		402	$ 424
DPL Subsidiary [Member] | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt	100
Repayments of Long-term Debt	0
Loss on extinguishment of debt	0
AES Brasil [Domain] | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt		$ 169
Repayments of Long-term Debt		0
Loss on extinguishment of debt		0
AES Hispanola Holdings BV | Bridge Loan | JPMORGAN CHASE BANK N.A. LONDON BRANCH
Debt Instrument [Line Items]
Issued senior notes								$ 500
AES Hispanola Holdings BV | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt		350
Repayments of Long-term Debt		(500)
Loss on extinguishment of debt		1
AES Hispanola Holdings BV | Nonrecourse Debt [Member] | JPMORGAN CHASE BANK N.A. LONDON BRANCH
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt				$ 450
AES Hispanola Holdings BV | Nonrecourse Debt [Member] | 350 Million Credit Agreement Due 2028
Debt Instrument [Line Items]
Loss on extinguishment of debt					1
AES Hispanola Holdings BV | Nonrecourse Debt [Member] | 350 Million Credit Agreement Due 2028 | BID
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt		300
Issued senior notes		$ 350
Debt Instrument, Interest Rate, Stated Percentage		8.85%
Mercury Chile HoldCo LLC
Debt Instrument [Line Items]
Proceeds from Contributed Capital				196
Mercury Chile HoldCo LLC | Nonrecourse Debt [Member] | Bridge Loan
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt				350
Mercury Chile HoldCo LLC | Senior Notes [Member] | 6.5% senior notes due 2027
Debt Instrument [Line Items]
Issued senior notes				$ 360
Debt Instrument, Interest Rate, Stated Percentage				6.50%
AES Clean Energy Subsidiary | Revolving Credit Facilities, Joint and Several
Debt Instrument [Line Items]
Line of Credit Facility, Increase (Decrease), Net					641
Credit Facility, Commitments Used	1,900				1,900		1,900
AES Clean Energy Subsidiary | Nonrecourse Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt	497
Repayments of Long-term Debt	0
Loss on extinguishment of debt	0
Colon | Nonrecourse Debt [Member] | JPMORGAN CHASE BANK N.A. LONDON BRANCH
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt				$ 50
Colon | Nonrecourse Debt [Member] | 350 Million Credit Agreement Due 2028 | BID
Debt Instrument [Line Items]
Proceeds From Issuance Of Nonrecourse Debt		$ 50
AES Clean Energy and sPower (co-issuers) | Senior Notes [Member] | 6.55% Senior Notes Due 2047
Debt Instrument [Line Items]
Issued senior notes									$ 647	$ 647
Debt Instrument, Interest Rate, Stated Percentage										6.55%
AES Clean Energy and sPower (co-issuers) | Senior Notes [Member] | 6.37% Senior Notes Due 2047
Debt Instrument [Line Items]
Issued senior notes	$ 246				$ 246		$ 246
Debt Instrument, Interest Rate, Stated Percentage	6.37%				6.37%		6.37%
AES Clean Energy and sPower (co-issuers) | Senior Notes [Member] | Master Indenture Notes
Debt Instrument [Line Items]
Issued senior notes	$ 893				$ 893		$ 893
AES Clean Energy Development | Senior Notes [Member] | Master Indenture Notes
Debt Instrument [Line Items]
Issued senior notes	252				252		252
Subordinated Liabilities, Period Increase (Decrease)					215
AES Clean Energy and sPower (co-borrowers) | Revolving Credit Facilities, Joint and Several
Debt Instrument [Line Items]
Issued senior notes	3,300				3,300		3,300				$ 1,200
Line of Credit Facility, Increase (Decrease), Net							2,100
Credit Facility, Commitments Used	$ 2,500				$ 2,500		$ 2,500

XML

Debt - Subsidiary Non-recourse Debt in Default or Accelerated (Details) $ in Millions	Jun. 30, 2023 USD ($)
Nonrecourse Debt Default [Line Items]
Debt Default Amount	$ 339
Materiality threshold for cash distribution from business to Parent	20.00%
Debt defaults at risk of causing cross default	0
Covenant and Payment Violation | AES Puerto Rico
Nonrecourse Debt Default [Line Items]
Debt Default Amount	$ 143
Net Assets	(173)
Covenant Violation [Member] | Maritza
Nonrecourse Debt Default [Line Items]
Debt Default Amount	164
Net Assets	(314)
Covenant Violation [Member] | AES llumina [Member]
Nonrecourse Debt Default [Line Items]
Debt Default Amount	25
Net Assets	(28)
Covenant Violation [Member] | Jordan (IPP1 & IPP4)
Nonrecourse Debt Default [Line Items]
Debt Default Amount	7	[1]
Net Assets	$ (11)	[1]

[1] Subsidiary Primary Nature of DefaultDebt in DefaultNet Assets (Liabilities) AES Maritza(1) Covenant$164 $314 AES Puerto RicoCovenant/Payment143 (173)AES Ilumina (Puerto Rico)Covenant25 28 AES Jordan SolarCovenant7 11 Total$339  _____________________________ (1)In July 2023, AES Maritza and its lenders reached an agreement to waive the potential covenant defaults through late September 2023. The associated non-recourse debt is classified as noncurrent in the accompanying Condensed Consolidated Balance Sheets The amounts in default related to AES Puerto Rico are covenant and payment defaults. In July 2023, AES Puerto Rico signed forbearance and standstill agreements with its noteholders because of the insufficiency of funds to meet the principal and interest obligations on its Series A Bond Loans due and payable on June 1, 2023, and going forward. AES Puerto Rico continues to work with PREPA and its noteholders on these liquidity challenges. These agreements will expire on October 15, 2023.

XML

Contingencies and Commitments (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) agreement
Schedule Of Contingent Contractual Obligations [Line Items]
The range of expiration dates of guarantees made by the Parent Company	less than one year to no more than 17 years
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 2,930
Number of Agreements	117
Obligations Number Of Agreements	117
Accrual for Environmental Loss Contingencies	$ 10
Guarantee Obligations [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 2,610
Number of Agreements	69
Obligations Number Of Agreements	69
Financial Standby Letter of Credit [Member] | Unsecured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 95
Number of Agreements	33
Obligations Number Of Agreements	33
Financial Standby Letter of Credit [Member] | Secured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 100
Number of Agreements	11
Obligations Number Of Agreements	11
Surety Bond
Schedule Of Contingent Contractual Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 2
Number of Agreements	2
Obligations Number Of Agreements	2
Standby Letters of Credit [Member] | Secured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 123
Number of Agreements | agreement	2
Obligations Number Of Agreements | agreement	2
Minimum [Member] | Guarantee Obligations [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 1
Minimum [Member] | Financial Standby Letter of Credit [Member] | Unsecured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	1
Minimum [Member] | Financial Standby Letter of Credit [Member] | Secured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 1
Minimum [Member] | Standby Letters of Credit [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	1.00%
Letter of credit fee percentage paid	1.00%
Maximum [Member] | Guarantee Obligations [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 505
Maximum [Member] | Financial Standby Letter of Credit [Member] | Unsecured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	36
Maximum [Member] | Financial Standby Letter of Credit [Member] | Secured Debt [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	60
Maximum [Member] | Surety Bond
Schedule Of Contingent Contractual Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 1
Maximum [Member] | Standby Letters of Credit [Member]
Schedule Of Contingent Contractual Obligations [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	3.00%
Letter of credit fee percentage paid	3.00%

XML

Contingencies and Commitments - Loss Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Environmental Contingencies
Liability recorded for projected environmental remediation costs	$ 10
Litigation [Member]
Litigation Contingencies
Aggregate reserves for claims deemed both probable and reasonably estimable	26	$ 22
Maximum [Member] | Litigation [Member]
Environmental Contingencies
Loss Contingency, Estimate of Possible Loss	89
Maximum [Member] | Environmental Issue
Environmental Contingencies
Loss Contingency, Estimate of Possible Loss	13
Maximum [Member] | Financial Standby Letter of Credit [Member] | Line of Credit
Environmental Contingencies
Loss Contingency, Estimate of Possible Loss	64
Minimum [Member] | Litigation [Member]
Environmental Contingencies
Loss Contingency, Estimate of Possible Loss	53
Minimum [Member] | Financial Standby Letter of Credit [Member] | Line of Credit
Environmental Contingencies
Loss Contingency, Estimate of Possible Loss	$ 59

XML

Leases Lessor (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Lessor Disclosure [Abstract]
Operating Lease, Lease Income	$ 136	$ 140	$ 257	$ 274
Variable Lease, Income	(24)	(16)	(32)	(23)
Lease Income	112	124	225	251
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, after Year Five	361		361
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received	474		474
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Five	25		25
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Four	25		25
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Three	25		25
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Two	25		25
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year One	13		13
Sales-type and Direct Financing Leases, Lease Receivables, Gross Difference, Amount [Abstract]
Sales-type and Direct Financing Leases, Lease Receivable	226		226
Sales-type and Direct Financing Leases, Lease Receivable, Undiscounted Excess Amount	(248)		(248)
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Lessor, Operating Lease, Payment to be Received, Year One	195		195
Lessor, Operating Lease, Payment to be Received, Year Two	391		391
Lessor, Operating Lease, Payment to be Received, Year Three	392		392
Lessor, Operating Lease, Payment to be Received, Year Four	280		280
Lessor, Operating Lease, Payment to be Received, Year Five	203		203
Lessor, Operating Lease, Payment to be Received, after Year Five	544		544
Lessor, Operating Lease, Payments to be Received	2,005		2,005
Operating Lease, Risk Strategy, Residual Asset	8,413		8,413		$ 8,651
Sales-type Lease, Interest Income	3	$ 13	7	$ 16
Property, Plant and Equipment [Member]
Lessor Disclosure [Abstract]
Operating Lease, Right-of-Use Asset	1,355		1,355		1,319
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Operating Lease, Right-of-Use Asset	1,355		1,355		1,319
Accumulated Amortization on PP&E
Lessor Disclosure [Abstract]
Operating Lease, Right-of-Use Asset	176		176		139
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Operating Lease, Right-of-Use Asset	176		176		139
Assets
Lessor Disclosure [Abstract]
Operating Lease, Right-of-Use Asset	1,179		1,179		1,180
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Operating Lease, Right-of-Use Asset	$ 1,179		$ 1,179		$ 1,180

XML

Redeemable Stocks of Subsidiaries (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Temporary Equity [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount	$ 1,289	$ 1,321
Cajuina Wind Complex
Temporary Equity [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	35.50%
IPALCO Enterprises, Inc. [Member]
Temporary Equity [Line Items]
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount	$ 765	782
Clean Energy
Temporary Equity [Line Items]
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount	439	436
Potengi
Temporary Equity [Line Items]
Redeemable Noncontrolling Interest, Equity, Preferred, Carrying Amount	$ 19	17
Cajuina Wind Complex
Temporary Equity [Line Items]
Sale of Stock, Description of Transaction	24
Sale of Stock, Consideration Received on Transaction	$ 12
AES Clean Energy Development
Temporary Equity [Line Items]
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount	$ 66	$ 86

XML

Equity Equity Transactions with Noncontrolling Interests (Details) - USD ($)
$ in Millions

1 Months Ended

3 Months Ended

6 Months Ended

Jan. 31, 2022

Feb. 05, 2021

Mar. 31, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Noncontrolling Interest [Line Items]

Contributions from noncontrolling interests

$ 18

$ 28

EQUITY

EQUITY

Equity Units

In March 2021, the Company issued 10,430,500 Equity Units with a total notional value of $1,043 million. Each Equity Unit has a stated amount of $100 and was initially issued as a Corporate Unit, consisting of a forward stock purchase contract (“2024 Purchase Contracts”) and a 10% undivided beneficial ownership interest in one share of 0% Series A Cumulative Perpetual Convertible Preferred Stock, issued without par and with a liquidation preference of $1,000 per share (“Series A Preferred Stock”).

The Company concluded that the Equity Units should be accounted for as one unit of account based on the economic linkage between the 2024 Purchase Contracts and the Series A Preferred Stock, as well as the Company's assessment of the applicable accounting guidance relating to combining freestanding instruments. The Equity Units represent mandatorily convertible preferred stock. Accordingly, the shares associated with the combined instrument are reflected in diluted earnings per share using the if-converted method.

In conjunction with the issuance of the Equity Units, the Company received approximately $1 billion in proceeds, net of underwriting costs and commissions, before offering expenses. The proceeds for the issuance of 1,043,050 shares are attributed to the Series A Preferred Stock for $838 million and $205 million for the present value of the quarterly payments due to holders of the 2024 Purchase Contracts ("Contract Adjustment Payments"). The proceeds will be used for the development of the AES renewable businesses, U.S. utility businesses, LNG infrastructure, and for other developments determined by management.

The Series A Preferred Stock will initially not bear any dividends and the liquidation preference of the convertible preferred stock will not accrete. The Series A Preferred Stock has no maturity date and will remain outstanding unless converted by holders or redeemed by the Company. Holders of the shares of the convertible preferred stock will have limited voting rights.

The Series A Preferred Stock is pledged as collateral to support holders’ purchase obligations under the 2024 Purchase Contracts and can be remarketed. In connection with any successful remarketing, the Company may increase the dividend rate, increase the conversion rate, and modify the earliest redemption date for the convertible preferred stock. After any successful remarketing in connection with which the dividend rate on the convertible preferred stock is increased, the Company will pay cumulative dividends on the convertible preferred stock, if declared by the board of directors, quarterly in arrears from the applicable remarketing settlement date.

Holders of Corporate Units may create Treasury Units or Cash Settled Units from their Corporate Units as provided in the Purchase Contract Agreement by substituting Treasury securities or cash, respectively, for the Convertible Preferred Stock comprising a part of the Corporate Units.

The Company may not redeem the Series A Preferred Stock prior to March 22, 2024. At the election of the Company, on or after March 22, 2024, the Company may redeem for cash, all or any portion of the outstanding shares of the Series A Preferred Stock at a redemption price equal to 100% of the liquidation preference, plus any accumulated and unpaid dividends.

The 2024 Purchase Contracts obligate the holders to purchase, on February 15, 2024, for a price of $100 in cash, a maximum number of 57,364,621 shares of the Company’s common stock (subject to customary anti-dilution adjustments). The 2024 Purchase Contract holders may elect to settle their obligation early, in cash. The Series A Preferred Stock is pledged as collateral to guarantee the holders’ obligations to purchase common stock under the terms of the 2024 Purchase Contracts. The initial settlement rate determining the number of shares that each holder must purchase will not exceed the maximum settlement rate and is determined over a market value averaging period preceding February 15, 2024.

The initial maximum settlement rate of 3.864 was calculated using an initial reference price of $25.88, equal to the last reported sale price of the Company’s common stock on March 4, 2021. As of June 30, 2023, due to the customary anti-dilution provisions, the maximum settlement rate was 3.8739, equivalent to a reference price of $25.81. If the applicable market value of the Company’s common stock is less than or equal to the reference price, the settlement rate will be the maximum settlement rate; and if the applicable market value of common stock is greater than the reference price, the settlement rate will be a number of shares of the Company’s common stock equal to $100 divided by the applicable market value. Upon successful remarketing of the Series A Preferred Stock (“Remarketed Series A Preferred Stock”), the Company expects to receive additional cash proceeds of $1 billion and issue shares of Remarketed Series A Preferred Stock.

The Company pays Contract Adjustment Payments to the holders of the 2024 Purchase Contracts at a rate of 6.875% per annum, payable quarterly in arrears on February 15, May 15, August 15, and November 15, commencing on May 15, 2021. The $205 million present value of the Contract Adjustment Payments at inception reduced the Series A Preferred Stock. As each quarterly Contract Adjustment Payment is made, the related liability is reduced and the difference between the cash payment and the present value will accrete to interest expense, approximately $5 million over the three-year term. As of June 30, 2023, the present value of the Contract Adjustment Payments was $54 million.

The holders can settle the purchase contracts early, for cash, subject to certain exceptions and conditions in the prospectus supplement. Upon early settlement of any purchase contracts, the Company will deliver the number of shares of its common stock equal to 85% of the number of shares of common stock that would have otherwise been deliverable.

Equity Transactions with Noncontrolling Interests

AES Clean Energy Tax Equity Partnerships — The majority of solar projects under AES Clean Energy have been financed with tax equity structures, in which tax equity investors receive a portion of the economic attributes of the facilities, including tax attributes, that vary over the life of the projects.

During the second quarter of 2023 and 2022, AES Clean Energy Development, through multiple transactions, sold noncontrolling interests in project companies to tax equity partners, resulting in increases to NCI of $208 million and $98 million, respectively. AES Clean Energy Development is reported in the Renewables SBU reportable segment.

Chile Renovables — Under its renewable partnership agreement with Global Infrastructure Management, LLC (“GIP”), AES Andes will contribute a specified pipeline of renewable development projects to Chile Renovables as the projects reach commercial operations, and GIP may make additional contributions to maintain its 49% ownership interest. In January 2022, AES Andes completed the sale of Andes Solar 2a to Chile Renovables for $37 million, resulting in an increase to NCI of $28 million and an increase to additional paid-in capital of $9 million. In June 2022, the sale of Los Olmos was completed for $80 million, resulting in an increase to NCI of $68 million and an increase to additional paid-in capital of $12 million. As the Company maintained control after these transactions, Chile Renovables continues to be consolidated by the Company within the Energy Infrastructure SBU reportable segment.

Guaimbê Holding — In January 2022, the Ventus wind complex and AGV solar complex were incorporated by Guaimbê Holding. Guaimbê Holding issued preferred shares representing 3.5% ownership in the subsidiary for total proceeds of $63 million. The transaction decreased the Company’s indirect ownership interest to 35.8%. As the Company maintained control after these transactions, Guaimbê Holding continues to be consolidated by the Company within the Renewables SBU reportable segment.

AES Andes — In January 2022, Inversiones Cachagua SpA (“Cachagua”) completed a tender offer for the shares of AES Andes held by minority shareholders for $522 million, net of transaction costs. Upon completion, AES' indirect beneficial interest in AES Andes increased from 67.1% to 98.1%. Through multiple transactions following the tender offer during the first quarter of 2022, Cachagua acquired an additional 0.8% ownership in AES Andes for $13 million, further increasing AES’ indirect beneficial interest to 98.9%. The tender offer and these follow-on the transactions resulted in a $169 million decrease to Parent Company Stockholder’s Equity due to a decrease in additional paid-in capital of $93 million and the reclassification of accumulated other comprehensive losses from NCI to AOCL of $76 million. AES Andes is reported in the Energy Infrastructure SBU reportable segment.

Accumulated Other Comprehensive Loss — The following table summarizes the changes in AOCL by component, net of tax and NCI, for the six months ended June 30, 2023 (in millions):

	Foreign currency translation adjustment, net		Unrealized derivative gains (losses), net		Unfunded pension obligations, net		Total
Balance at the beginning of the period	$	(1,828)	$	211	$	(23)	$	(1,640)
Other comprehensive income before reclassifications	107		9		—		116
Amount reclassified to earnings	—		(43)		—		(43)
Other comprehensive income (loss)	107		(34)		—		73
Balance at the end of the period	$	(1,721)	$	177	$	(23)	$	(1,567)

Reclassifications out of AOCL are presented in the following table. Amounts for the periods indicated are in millions and those in parentheses indicate debits to the Condensed Consolidated Statements of Operations:

AOCL Components	Affected Line Item in the Condensed Consolidated Statements of Operations	Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Derivative gains (losses), net
	Non-regulated revenue	$	(8)	$	—	$	(8)	$	(1)
	Non-regulated cost of sales	—		(1)		(1)		(2)
	Interest expense	13		(10)		16		(33)
	Loss on disposal and sale of business interests	—		(16)		33		(16)
	Foreign currency transaction losses	(3)		—		(3)		—
	Income (loss) from continuing operations before taxes and equity in earnings of affiliates	2		(27)		37		(52)
	Income tax benefit (expense)	(2)		3		(11)		13
	Net equity in earnings (losses) of affiliates	7		4		22		1
	Net income (loss)	7		(20)		48		(38)
	Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	(4)		(3)		(5)		8
	Net income (loss) attributable to The AES Corporation	$	3	$	(23)	$	43	$	(30)
Amortization of defined benefit pension actuarial gain (loss), net
	Regulated cost of sales	$	—	$	(1)	$	—	$	(1)
	Other expense	—		1		—		—
	Net income (loss) attributable to The AES Corporation	$	—	$	—	$	—	$	(1)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	3	$	(23)	$	43	$	(31)

Common Stock Dividends — The Parent Company paid dividends of $0.1659 per outstanding share to its common stockholders during the first and second quarters of 2023 for dividends declared in December 2022 and February 2023.

On July 14, 2023, the Board of Directors declared a quarterly common stock dividend of $0.1659 per share payable on August 15, 2023, to shareholders of record at the close of business on August 1, 2023.

AES Gener

Noncontrolling Interest [Line Items]

Noncontrolling Interest, Ownership Percentage by Parent

98.10%

98.90%

Sale of Stock, Percentage of Ownership before Transaction

67.10%

Ownership interest acquired in subsidiary

0.80%

Cajuina Wind Complex

Noncontrolling Interest [Line Items]

Noncontrolling Interest, Ownership Percentage by Parent

35.50%

AES Gener

Noncontrolling Interest [Line Items]

Sale of Stock, Consideration Received on Transaction

$ 522

Stockholders' Equity, Period Increase (Decrease)

$ 169

Adjustments to Additional Paid in Capital, Other

93

Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent

76

Investment Owned, at Cost

$ 13

Guaimbe Solar Complex [Member]

Noncontrolling Interest [Line Items]

Sale of Stock, Description of Transaction

3.5

Sale of Stock, Consideration Received on Transaction

$ 63

Sale of Stock, Percentage of Ownership after Transaction

35.80%

Chile Renovables SpA

Noncontrolling Interest [Line Items]

Sale of Stock, Consideration Received on Transaction

$ 37

$ 80

Adjustments to Additional Paid in Capital, Other

9

12

Noncontrolling Interest, Increase from Subsidiary Equity Issuance

$ 28

$ 68

Chile Renovables SpA | Global Infrastructure Management

Noncontrolling Interest [Line Items]

Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners

49.00%

49.00%

Cajuina Wind Complex

Noncontrolling Interest [Line Items]

Sale of Stock, Description of Transaction

24

Sale of Stock, Consideration Received on Transaction

$ 12

Clean Energy

Noncontrolling Interest [Line Items]

Contributions from noncontrolling interests

$ 208

$ 98

XML

Equity Accumulated Other Comprehensive Loss (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent			$ 73,000,000
Unfunded pension obligation, Net of Tax	$ (23,000,000)		(23,000,000)		$ (23,000,000)
Foreign currency translation adjustment, Net of Tax	(1,721,000,000)		(1,721,000,000)		(1,828,000,000)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(1,567,000,000)		(1,567,000,000)		(1,640,000,000)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax			116,000,000
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	177,000,000		177,000,000		$ 211,000,000
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			(43,000,000)
Total foreign currency translation adjustment, net of income tax	79,000,000	$ (149,000,000)	119,000,000	$ (17,000,000)
Total pension adjustments, net of income tax	$ 0	$ 0	(1,000,000)	$ (1,000,000)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax			9,000,000
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			(43,000,000)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net			(34,000,000)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax			0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			0
Total pension adjustments, net of income tax			0
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax			107,000,000
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			0
Total foreign currency translation adjustment, net of income tax			$ 107,000,000

XML

Equity Reclassifications Out of AOCL (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of Goods and Services Sold	$ (2,529)	$ (2,515)	$ (5,174)	$ (4,837)
General and Administrative Expense	(72)	(46)	(127)	(98)
Other expense	(12)	(29)	(26)	(41)
Interest expense	(310)	(279)	(640)	(537)
Loss on disposal and sale of business interests	(4)	(2)	(4)	(1)
Impairment expense			(199)	(483)
Foreign currency transaction gains (losses)	(67)	(49)	(109)	(68)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES	4	(160)	269	104
Income tax benefit (expense)	2	19	(70)	(41)
Income (Loss) from Equity Method Investments	(25)	5	(29)	(28)
Net income	(19)	(136)	170	35
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	(39)	(179)	112	(64)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			(43)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	3	(23)	43	(31)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			0
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Other expense	0	1	0	0
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Regulated Operation
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of Goods and Services Sold	0	(1)	0	(1)
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Non-regulated revenue	(8)	0	(8)	(1)
Cost of Goods and Services Sold	0	(1)	(1)	(2)
Interest expense	13	(10)	16	(33)
Loss on disposal and sale of business interests	0	(16)	33	(16)
Foreign currency transaction gains (losses)	(3)	0	(3)	0
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES	2	(27)	37	(52)
Income tax benefit (expense)	(2)	3	(11)	13
Income (Loss) from Equity Method Investments	7	4	22	1
Net income	7	(20)	48	(38)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries	(4)	(3)	(5)	8
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			(43)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	3	(23)	43	(30)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			0
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassifications Out Of Accumulated Other Comprehensive Income [Line Items]
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	$ 0	$ 0	$ 0	$ (1)

XML

Equity Common Stock Dividends (Details) - $ / shares		3 Months Ended
	Aug. 15, 2023	Jun. 30, 2023	Mar. 31, 2023	Mar. 31, 2022
Common Stock, Dividends, Per Share, Cash Paid		$ 0.1659	$ 0.1659
Common Stock, Dividends, Per Share, Declared			$ 0.1659	$ 0.1580
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared	$ 0.1659

XML

Equity Units (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021	Mar. 04, 2021
Equity Units Disclosure [Line Items]
Accretion Expense	$ 5
Equity Unit, Shares Issued					10,430,500
Preferred Stock, Shares Issued	1,043,050	1,043,050	1,043,050
Preferred Stock, Liquidation Preference Per Share	$ 1,000
Preferred Stock, Dividend Rate, Percentage	0.00%
Forward Contract Indexed to Issuer's Equity, Forward Rate Per Share	$ 100
Forward Contract Indexed to Issuer's Equity, Interest Rate	6.875%
Forward Contract Indexed to Issuer's Equity, Shares	57,364,621
Shares Issued, Price Per Share				$ 25.81		$ 25.88
Forward Contract Indexed to Issuer's Equity, Maximum Settlement Rate	3.864	3.8739
Forward Contract Indexed to Equity, Settlement, Cash, Amount	$ 1,000
Forward Contract Indexed to Issuer's Equity, Present Value of Interest Payments	$ 205	$ 54
Preferred Shares Deliverable Upon Early Settlement of Purchase Contracts	85.00%
Corporate Unit, Notional Value	$ 1,043				$ 1,043
Preferred Stock, Value, Issued	$ 838	$ 838	$ 838
Preferred Stock, Convertible, Conversion Price		$ 31.62			$ 31.70
Preferred Stock , Convertible, Initial Conversion Rate					$ 31.5428
Preferred Stock, Redemption Percentage	100.00%
Preferred Stock, Beneficial Ownership Interest in One Share					10.00%
Corporate Equity Unit, Stated Value per Share					$ 100
Proceeds from Equity Units, net of underwriting costs and commissions, before offering expenses	$ 1,000

XML

Segments (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Total Revenue	$ 3,027	$ 3,078	$ 6,266	$ 5,930
Number of strategic business units | segment			4
Number of reportable segments | segment			4
Reconciliation To Income From Continuing Operations Before Taxes
Income (loss) from continuing operations before taxes and equity in earnings of affiliates	4	(160)	$ 269	104
Net equity in earnings (losses) of affiliates	(25)	5	(29)	(28)
Impairment losses	(164)	(479)	(173)	(480)
Assets
Long-Lived Assets	26,452		26,452		$ 23,395
Net income	(19)	(136)	170	35
Income Tax Expense (Benefit)	(2)	(19)	70	41
Interest income	(131)	(95)	(254)	(170)
EBITDA	435	293	1,176	977
Depreciation and amortization	277	264	550	534
Interest expense	310	279	640	537
Adjustment for noncontrolling interests and redeemable stock of subsidiaries	(155)	(156)	(325)	(312)
Less: Income taxes expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates	27	23	66	57
Unrealized derivative and equity securities losses (gains)	32	(34)	(7)	8
Interest income recognized under service concession arrangements	18	20	36	39
Unrealized foreign currency losses (gains)	32	38	64	20
Disposition/ acquisition losses	16	23	13	32
Loss on extinguishment of debt	0	0	1	6
Total Adjusted EBITDA	569	686	1,197	1,307
Other noncurrent assets, excluding ROU assets for operating leases	2,774		2,774		2,623
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Total Revenue	(61)	(54)	(113)	(111)
Assets
Adjusted EBITDA	(27)	39	(21)	34
Corporate Other And Other Eliminations [Member]
Segment Reporting Information [Line Items]
Total Revenue	(21)	(20)	(46)	(54)
Corporate Other And Other Eliminations [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	40	34	67	57
Assets
Long-Lived Assets	16		16		17
Corporate Other And Other Eliminations [Member] | Corporate, Non-Segment
Assets
Adjusted EBITDA	13	(3)	12	1
Renewables
Segment Reporting Information [Line Items]
Total Revenue	541	455	1,036	875
Renewables | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	541	455	1,036	875
Assets
Long-Lived Assets	12,220		12,220		9,533
Adjusted EBITDA	166	162	290	281
Utilities
Segment Reporting Information [Line Items]
Total Revenue	852	821	1,823	1,680
Utilities | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	852	821	1,823	1,680
Assets
Long-Lived Assets	6,602		6,602		6,311
Adjusted EBITDA	148	135	310	319
Energy Infrastructure
Segment Reporting Information [Line Items]
Total Revenue	1,654	1,820	3,378	3,427
Energy Infrastructure | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	1,654	1,820	3,378	3,427
Assets
Long-Lived Assets	7,613		7,613		7,532
Adjusted EBITDA	282	379	645	733
New Energy Technologies
Segment Reporting Information [Line Items]
Total Revenue	1	2	75	2
New Energy Technologies | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	1	2	75	2
Assets
Long-Lived Assets	1		1		$ 2
Adjusted EBITDA	$ (13)	$ (26)	$ (39)	$ (61)

XML

Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 3,027	$ 3,078	$ 6,266	$ 5,930
Regulated Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	825	794	1,769	1,622
Other non-606 revenue	9	8	17	15
Revenue	834	802	1,786	1,637
Non-regulated revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	1,992	2,081	4,107	3,996
Other non-606 revenue	201	195	373	297
Revenue	2,193	2,276	4,480	4,293
Corporate Other And Other Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue	(21)	(20)	(46)	(54)
Corporate Other And Other Eliminations [Member] | Regulated Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	0	0	0	0
Other non-606 revenue	0	0	0	0
Revenue	0	0	0	0
Corporate Other And Other Eliminations [Member] | Non-regulated revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	(21)	(20)	(46)	(54)
Other non-606 revenue	0	0	0	0
Revenue	(21)	(20)	(46)	(54)
Renewables
Disaggregation of Revenue [Line Items]
Revenue	541	455	1,036	875
Renewables | Regulated Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	0	0	0	0
Other non-606 revenue	0	0	0	0
Revenue	0	0	0	0
Renewables | Non-regulated revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	505	406	982	831
Other non-606 revenue	36	49	54	44
Revenue	541	455	1,036	875
Utilities
Disaggregation of Revenue [Line Items]
Revenue	852	821	1,823	1,680
Utilities | Regulated Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	825	794	1,769	1,622
Other non-606 revenue	9	8	17	15
Revenue	834	802	1,786	1,637
Utilities | Non-regulated revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	18	18	35	41
Other non-606 revenue	0	1	2	2
Revenue	18	19	37	43
Energy Infrastructure
Disaggregation of Revenue [Line Items]
Revenue	1,654	1,820	3,378	3,427
Energy Infrastructure | Regulated Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	0	0	0	0
Other non-606 revenue	0	0	0	0
Revenue	0	0	0	0
Energy Infrastructure | Non-regulated revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	1,490	1,676	3,062	3,177
Other non-606 revenue	164	144	316	250
Revenue	1,654	1,820	3,378	3,427
New Energy Technologies
Disaggregation of Revenue [Line Items]
Revenue	1	2	75	2
New Energy Technologies | Regulated Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	0	0	0	0
Other non-606 revenue	0	0	0	0
Revenue	0	0	0	0
New Energy Technologies | Non-regulated revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	0	1	74	1
Other non-606 revenue	1	1	1	1
Revenue	$ 1	$ 2	$ 75	$ 2

XML

Revenue Contract Balances (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Financing Receivable, after Allowance for Credit Loss	$ 296,000,000		$ 257,000,000
Financing Receivable, Allowance for Credit Loss	0		0
Contract with Customer, Liability	388,000,000		337,000,000
Other current assets	1,449,000,000		1,533,000,000
Contract with Customer, Liability	388,000,000		337,000,000
Contract with Customer, Liability, Revenue Recognized	13,000,000	$ 32,000,000
Mong Duong Subsidiary [Member]
Financing Receivable, after Allowance for Credit Loss	1,100,000,000		1,100,000,000
Financing Receivable, Allowance for Credit Loss	27,000,000		28,000,000
Mong Duong Subsidiary [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member]
Financing Receivable, after Allowance for Credit Loss, Noncurrent	1,000,000,000
Other current assets	$ 102,000,000		$ 97,000,000

XML

Revenue Remaining Performance Obligations (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 9
Revenue Performance Obligation per year	$ 1

XML

Other Income and Expense - Other Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Schedule of Other Nonoperating Income [Line Items]
Other Nonoperating Income	$ 14	$ 70	$ 24	$ 76
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Other Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Expenses	Other Expenses	Other Expenses	Other Expenses
Other Expenses	$ 12	$ 29	$ 26	$ 41
Other Income [Member]
Schedule of Other Nonoperating Income [Line Items]
Insurance proceeds (2)	0	(16)	0	(16)
Gain (Loss) on Disposition of Other Assets	0	0	2	0
Other income	11	12	13	15
Other Nonoperating Income	14	70	24	76
Allowance for Funds Used During Construction, Capitalized Interest	3	2	6	5
Litigation Settlement, Amount Awarded from Other Party	0	6	3	6
Proceeds, Financing Receivable, Previously Written Off, Recovery	0	5	0	5
Asset Acquisition of a VIE, Contingent Consideration, Remeasurement Gain	0	3	0	3
Other Income [Member] | Valuation, Market Approach
Schedule of Other Nonoperating Income [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain	0	26	0	26
Other Expense [Member]
Schedule of Other Nonoperating Income [Line Items]
Gain (Loss) on Disposition of Other Assets	7	5	9	9
Loss Contingency Accrual	1	0	8	0
Sales-type and Direct Financing Leases, Profit (Loss)	0	20	0	20
Other Nonoperating Expense	1	4	2	12
Other Expenses	$ 12	$ 29	$ 26	$ 41

XML

Other Income and Expense - Other Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Schedule of other expense [Line Items]
Other Expenses	$ 12	$ 29	$ 26	$ 41
Other Expense [Member]
Schedule of other expense [Line Items]
Sales-type and Direct Financing Leases, Profit (Loss)	0	20	0	20
Other Nonoperating Expense	1	4	2	12
Other Expenses	12	29	26	41
Gain (Loss) on Disposition of Other Assets	7	5	9	9
Other Income [Member]
Schedule of other expense [Line Items]
Insured Event, Gain (Loss)	0	16	0	16
Litigation Settlement, Amount Awarded from Other Party	0	6	3	6
Asset Acquisition of a VIE, Contingent Consideration, Remeasurement Gain	0	3	0	3
Allowance for Funds Used During Construction, Capitalized Interest	3	2	6	5
Proceeds, Financing Receivable, Previously Written Off, Recovery	0	5	0	5
Gain (Loss) on Disposition of Other Assets	0	0	2	0
Other Income [Member] | Valuation, Market Approach
Schedule of other expense [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain	$ 0	$ 26	$ 0	$ 26

XML

Asset Impairment Expense (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Asset Impairment Expense [Line Items]
Impairment of Long-Lived Assets Held-for-use	$ 174		$ 482	$ 194	$ 483
Other Asset Impairment Charges	174		482	194	483
Other Subsidiaries [Member]
Asset Impairment Expense [Line Items]
Impairment of Long-Lived Assets Held-for-use	4		7	10	8
Maritza | Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member]
Asset Impairment Expense [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			927		927
Maritza | Long Lived Assets Held And Used [Member]
Asset Impairment Expense [Line Items]
Other Asset Impairment Charges	0		475	0	475
Maritza | Long Lived Assets Held And Used [Member] | Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Asset Impairment Expense [Line Items]
Assets Carrying Amount Disclosure Nonrecurring			452		452
Jordan (IPP1 & IPP4) | Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member]
Asset Impairment Expense [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	179	$ 179		179
Jordan (IPP1 & IPP4) | Long Lived Assets Held And Used [Member]
Asset Impairment Expense [Line Items]
Other Asset Impairment Charges	15	14	0	29	0
Jordan (IPP1 & IPP4) | Long Lived Assets Held And Used [Member] | Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Asset Impairment Expense [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	0	$ 0		0
AES Renewable Holdings | Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member]
Asset Impairment Expense [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	29			29
AES Renewable Holdings | Long Lived Assets Held And Used [Member]
Asset Impairment Expense [Line Items]
Other Asset Impairment Charges	18		0	18	0
AES Renewable Holdings | Long Lived Assets Held And Used [Member] | Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Asset Impairment Expense [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	11			11
Norgener | Long Lived Assets Held And Used [Member] | Estimate of Fair Value Measurement [Member]
Asset Impairment Expense [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	196			196
Norgener | Long Lived Assets Held And Used [Member]
Asset Impairment Expense [Line Items]
Other Asset Impairment Charges	137		$ 0	137	$ 0
Norgener | Long Lived Assets Held And Used [Member] | Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Asset Impairment Expense [Line Items]
Assets Carrying Amount Disclosure Nonrecurring	$ 24			$ 24

XML

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosures [Line Items]
Income Tax Expense (Benefit)	$ (2)	$ (19)	$ 70	$ 41

XML

Held-for-Sale and Dispositions Dispositions (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2021
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Proceeds from Divestiture of Businesses and Interests in Affiliates				$ 98	$ 1
Gain (loss) on disposal and sale of businesses interests	$ 4	$ 2		4	1
Jordan (IPP1 & IPP4)
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Equity Method Investment, Ownership Percentage						10.00%
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Jordan (IPP1 & IPP4)
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, Attributable to Parent, before Income Tax	6	$ 6		11	$ 11
Assets Carrying Amount Disclosure Nonrecurring	$ 164			$ 164
Proceeds from Divestiture of Businesses and Interests in Affiliates			$ 58
Disposal Group Not Discontinued Operation Ownership Interest Sold						26.00%

XML

Acquisitions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Agua Clara
Business Acquisition [Line Items]
Asset Acquisition, Indemnification Asset, Amount		$ 98		$ 98
Tunica Windpower LLC
Business Acquisition [Line Items]
Asset Acquisition, Indemnification Asset, Amount		22		22
Windor Solar
Business Acquisition [Line Items]
Asset Acquisition, Indemnification Asset, Amount		17		17
Bellefield
Business Acquisition [Line Items]
Asset Acquisition, Indemnification Asset, Amount	$ 402		$ 402
Bolero Solar Park
Business Acquisition [Line Items]
Asset Acquisition, Indemnification Asset, Amount	114		114
Other Income [Member]
Business Acquisition [Line Items]
Asset Acquisition of a VIE, Contingent Consideration, Remeasurement Gain	$ 0	$ 3	0	3
Windor Solar
Business Acquisition [Line Items]
Asset Acquisition, Consideration Transferred, Contingent Consideration				5
Tunica Windpower LLC
Business Acquisition [Line Items]
Asset Acquisition, Consideration Transferred, Contingent Consideration				$ 7
Bellefield
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross			449
Payments to Acquire Businesses, Net of Cash Acquired			164
Other Payments to Acquire Businesses			28
Asset Acquisition, Consideration Transferred, Contingent Consideration			$ 210
Bellefield | Weighted Average [Member]
Business Acquisition [Line Items]
Fair Value Measurement Inputs, Nonrecurring			90.40%
Windor Solar
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%		100.00%
Agua Clara
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%		100.00%
Tunica Windpower LLC
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%		100.00%
Bellefield
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	100000000.00%		100000000.00%
Bolero Solar Park
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	100000000.00%		100000000.00%

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred Stock , Convertible, Initial Conversion Rate						$ 31.5428
Preferred Stock, Convertible, Conversion Price	$ 31.62		$ 31.62			$ 31.70
Corporate Unit, Notional Value		$ 1,043		$ 1,043		$ 1,043
Preferred Stock, Value, Issued	$ 838	838	$ 838	838	$ 838
Preferred Stock, Convertible, Current Conversion Rate	$ 31.6239		$ 31.6239
BASIC EARNINGS (LOSS) PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders (Income)	$ (39)	$ (179)	$ 112	$ (64)
Income from continuing operations attributable to The AES Corporation common stockholders (Shares)	669	668	669	668
Income from continuing operations attributable to The AES Corporation common stockholders (Per Share)	$ (0.06)	$ (0.27)	$ 0.17	$ (0.10)
DILUTED EARNINGS PER SHARE:
Income from continuing operations, diluted	$ (39)	$ (179)	$ 112	$ (64)
Weighted average number of shares outstanding, diluted	669	668	712	668
Income from continuing operations, per diluted share	$ (0.06)	$ (0.27)	$ 0.16	$ (0.10)
Share-based Payment Arrangement, Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units	$ 0	$ 0	$ 0	$ 0
Dilutive Securities Effect On Basic EPS, dilutive Stock Options, per diluted share	$ 0	$ 0	$ 0	$ 0
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	0	0	1	0
EFFECT OF DILUTIVE SECURITIES
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units	$ 0	$ 0	$ 0	$ 0
Dilutive Securities Effect On Basic EPS, dilutive Stock Options, per diluted share	$ 0	$ 0	$ 0	$ 0
Restricted stock units (Shares)	0	0	1	0
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units	$ 0	$ 0	$ 0	$ 0
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	0	0	2	0
Dilutive Securities Effect On Basic EPS, dilutive Restricted Stock Units, per diluted share	$ 0	$ 0	$ 0	$ 0
EFFECT OF DILUTIVE SECURITIES
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units	$ 0	$ 0	$ 0	$ 0
Restricted stock units (Shares)	0	0	2	0
Dilutive Securities Effect On Basic EPS, dilutive Restricted Stock Units, per diluted share	$ 0	$ 0	$ 0	$ 0
Equity Unit Purchase Agreements
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Equity Unit Purchase Agreements	0	0	40	0
Dilutive Securities Effect on Basic EPS, dilutive Equity Unit Purchase Agreements, per diluted share	$ 0	$ 0	$ (0.01)	$ 0
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities	$ 0	$ 0	$ 0	$ 0
EFFECT OF DILUTIVE SECURITIES
Dilutive Securities Effect on Basic EPS, dilutive Equity Unit Purchase Agreements, per diluted share	$ 0	$ 0	$ (0.01)	$ 0
Incremental Common Shares Attributable to Dilutive Effect of Equity Unit Purchase Agreements	0	0	40	0
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities	$ 0	$ 0	$ 0	$ 0

XML

Risks and Uncertainties (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
AES Puerto Rico
Unusual Risk or Uncertainty [Line Items]
Long Lived Assets Held And Used [Member]	$ 63

XML

Label	Element	Value
Fair Value, Recurring [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationPeriodIncreaseDecrease	$ (1,000,000)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Period Increase (Decrease)	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationPeriodIncreaseDecrease	2,000,000
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationPurchases	(218,000,000)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationPurchases	(15,000,000)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs	(77,000,000)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs	(274,000,000)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs	(69,000,000)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs	(55,000,000)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationSettlements	5,000,000
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationSettlements	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationLiabilityTransfersIntoLevel3	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3	us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationLiabilityTransfersIntoLevel3	0
Fair Value Measurements with Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	aes_FairValueMeasurementsWithUnobservableInputsReconciliationRecurringBasisRegulatoryAssetsLiabilities	0
Fair Value Measurements with Unobservable Inputs Reconciliation Recurring Basis Regulatory Assets Liabilities	aes_FairValueMeasurementsWithUnobservableInputsReconciliationRecurringBasisRegulatoryAssetsLiabilities	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationLiabilityTransfersOutOfLevel3	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationLiabilityTransfersOutOfLevel3	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInEarnings	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInEarnings	(1,000,000)
Fair Value, Recurring [Member] | Other Comprehensive Income- Foreign currency translation activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInOtherComprehensiveIncomeLoss	2,000,000
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInOtherComprehensiveIncomeLoss	0
Fair Value, Recurring [Member] | Other comprehensive income - Derivative activity [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInOtherComprehensiveIncomeLoss	0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss)	us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInOtherComprehensiveIncomeLoss	$ 0