-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JeRW8yxEAVTsCVGyFlGD+jTWua+0Wl5iGAHCFaudezhiOYjBQRNtsVxbSkYc0RMx ZMkZHzJ2r+2yKAg+hzpVZQ== 0000950103-03-000646.txt : 20030220 0000950103-03-000646.hdr.sgml : 20030220 20030220172246 ACCESSION NUMBER: 0000950103-03-000646 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030220 ITEM INFORMATION: Other events FILED AS OF DATE: 20030220 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AES CORPORATION CENTRAL INDEX KEY: 0000874761 STANDARD INDUSTRIAL CLASSIFICATION: COGENERATION SERVICES & SMALL POWER PRODUCERS [4991] IRS NUMBER: 541163725 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12291 FILM NUMBER: 03574830 BUSINESS ADDRESS: STREET 1: 1001 N 19TH ST STREET 2: STE 2000 CITY: ARLINGTON STATE: VA ZIP: 22209 BUSINESS PHONE: 7035221315 8-K 1 feb2003_8k-2.txt =============================================================================== SECURITIES AND EXCHANGE COMMISSION Washington, D.C.20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (date of earliest event reported): February 20, 2003 THE AES CORPORATION (exact name of registrant as specified in its charter) DELAWARE 333-15487 54-1163725 (State of Incorporation) (Commission File No.) (IRS Employer Identification No.) 1001 North 19th Street, Suite 2000 Arlington, Virginia 22209 (Address of principal executive offices, including zip code) Registrant's telephone number, including area code: (703) 522-1315 NOT APPLICABLE (Former Name or Former Address, if changed since last report) =============================================================================== Item 5. Other Events The AES Corporation (NYSE: AES) announced that net income from recurring operations for 2002 was $421 million before certain charges. Diluted earnings per share from recurring operations were $0.78 for the year. Net income (loss) and diluted earnings (loss) per share for the year, after all charges, were $(3.509) billion and $(6.51) per share, respectively. For the year, revenues increased 13% to $8.6 billion. For the quarter ended December 31, 2002, net income and diluted earnings per share from recurring operations were $15 million and $0.03 per share, respectively. Net income (loss) and diluted earnings (loss) per share for the quarter, after all charges, were $(2.766) billion and $(5.08) per share, respectively. Parent Operating Cash Flow ("POCF") for 2002 was $1.095 billion. THE AES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE QUARTERS ENDED DECEMBER 31, 2002 AND 2001 - -------------------------------------------------------------------------------------------------- Quarter Quarter Ended Ended ($ in millions, except per share amounts) 12/31/02 12/31/01 - -------------------------------------------------------------------------------------------------- REVENUES: Sales and services $ 2,214 $ 1,926 OPERATING COSTS AND EXPENSES: Cost of sales and services 2,000 1,287 Selling, general and administrative expenses 44 47 ------------ ------------ Total operating costs and expenses 2,044 1,334 ------------ ------------ OPERATING INCOME 170 592 OTHER INCOME AND (EXPENSE): Interest expense, net (439) (368) Other expense, net (48) (1) Equity in (loss) earnings of affiliates (before income tax) (239) 50 (Loss) gain on sale of assets and asset impairment expense (1,928) 18 ------------ ------------ (LOSS) INCOME BEFORE INCOME TAXES AND MINORITY INTEREST (2,484) 291 Income tax (benefit) expense (8) 66 Minority interest (income) expense (23) 38 ------------ ------------ (LOSS) INCOME FROM CONTINUING OPERATIONS (2,453) 187 Loss from operations of discontinued components (net of income taxes of $136 and $6, respectively) (313) (143) ------------ ------------ NET (LOSS) INCOME $ (2,766) $ 44 ============ ============ DILUTED EARNINGS PER SHARE: (Loss) income from continuing operations $ (4.50) $ 0.35 Discontinued operations (0.58) (0.27) ------------ ------------ Total $ (5.08) $ 0.08 ============ ============ Diluted weighted average shares outstanding (in millions) 545 541 === ===
THE AES CORPORATION --- Supplemental Schedule Reconciliation of GAAP net (loss) income before discontinued operations to net income excluding Brazil, Argentina and Venezuela foreign currency effects, effects of FAS No. 133 and nonrecurring items. FOR THE QUARTERS ENDED DECEMBER 31, 2002 AND 2001 - --------------------------------------------------------------------------------------------------------------------------- ($ in millions, except per share amounts) ---------------------------- ---------------------------- Quarter ended 12/31/2002 Quarter ended 12/31/2001 ---------------------------- ---------------------------- Amount Amount Amount per share Amount per share ----------- ----------- ----------- ----------- Net (loss) income before discontinued operations $ (2,453) $ (4.50) $ 187 $ 0.35 South America foreign currency transaction losses (gains), net (1) 31 0.06 (48) (0.09) Mark to market losses from FAS No. 133 (2) 48 0.09 7 0.01 Loss (gain) on sale of assets and asset impairment expense (3) 2,389 4.38 (16) (0.03) ----------- ----------- ----------- ----------- Net income from recurring operations $ 15 $ 0.03 $ 130 $ 0.24 =========== =========== =========== =========== Diluted weighted average shares outstanding (in millions) 545 536 === ===
(1) South America foreign currency transaction losses, net, consist of the following in 2002: a gain of approximately $46 million after income tax, or $0.08 per share, from Brazil; a loss of approximately $5 million after income tax, or $0.01 per share, from Argentina; and a loss of approximately $72 million after income tax, or $0.13 per share, from Venezuela. For 2001, South America foreign currency transaction gains consist of a gain of approximately $48 million after income tax, or $0.09 per share, from Brazil. (2) Mark to market losses from FAS No. 133 consist of the following in 2002: a loss of approximately $17 million after income tax, or $0.03 per share, from interest rate instruments, a loss of approximately $18 million after income tax, or $0.04 per share, from foreign exchange rate instruments, and a loss of $13 million after income tax, or $0.02 per share, from commodity contracts. For 2001, mark to market losses from FAS No. 133 consist of the following: a gain of approximately $3 million after income tax, or $0.01 per share, from interest rate instruments, a loss of approximately $8 million after income tax, or $0.02 per share, from foreign exchange rate instruments, and a loss of approximately $2 million after income tax from commodity contracts. (3) Loss on sale of assets and asset impairment expense consists of the following in 2002: a loss of approximately $1.293 billion after income tax, or $2.37 per share, from goodwill and other asset impairment charges in Brazil; a loss of approximately $1.013 billion after income tax, or $1.86 per share, from asset impairment charges in the United Kingdom; a loss of approximately $63 million after income tax, or $0.11 per share, from asset impairment charges in the United States; and a loss of approximately $20 million after income tax, or $0.04 per share, from other asset impairment charges. For 2001, amount consists of a gain of $16 million after income tax, or $0.03 per share, related to a gain recognized on the sale of CANTV shares. THE AES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001 - -------------------------------------------------------------------------------------------------- Year Ended Year Ended ($ in millions, except per share amounts) 12/31/02 12/31/01 - -------------------------------------------------------------------------------------------------- REVENUES: Sales and services $ 8,632 $ 7,645 OPERATING COSTS AND EXPENSES: Cost of sales and services 6,713 5,468 Selling, general and administrative expenses 112 120 ------------ ------------ Total operating costs and expenses 6,825 5,588 ------------ ------------ OPERATING INCOME 1,807 2,057 OTHER INCOME AND (EXPENSE): Interest expense, net (1,719) (1,386) Other (expense) income, net (324) 21 Equity in (loss) earnings of affiliates (before income tax) (203) 176 (Loss) gain on sale of assets and asset impairment expense (2,212) 18 Nonrecurring severance and transaction costs - (131) ------------ ------------ (LOSS) INCOME BEFORE INCOME TAXES AND MINORITY INTEREST (2,651) 755 Income tax (benefit) expense (27) 206 Minority interest (income) expense (34) 103 ------------ ------------ (LOSS) INCOME FROM CONTINUING OPERATIONS (2,590) 446 Loss from operations of discontinued components (net of income taxes of $90 and $10, respectively) (573) (173) ------------ ------------ (LOSS) INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (3,163) 273 Cumulative effect of accounting change (net of income taxes of $72) (346) - ------------ ------------ NET (LOSS) INCOME $ (3,509) $ 273 ============ ============ DILUTED EARNINGS PER SHARE: (Loss) income from continuing operations $ (4.81) $ 0.83 Discontinued operations (1.05) (0.32) Cumulative effect of accounting change (0.65) - ------------ ------------ Total $ (6.51) $ 0.51 ============ ============ Diluted weighted average shares outstanding (in millions) 539 538 === ===
THE AES CORPORATION --- Supplemental Schedule Reconciliation of GAAP net (loss) income before discontinued operations and accounting change to net income excluding Brazil, Argentina and Venezuela foreign currency effects, effects of FAS No. 133 and nonrecurring items. FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001 - ------------------------------------------------------------------------------------------------------------------------- ($ in millions, except per share amounts) ---------------------------- ---------------------------- Year ended 12/31/2002 Year ended 12/31/2001 ---------------------------- ---------------------------- Amount Amount Amount per share Amount per share ----------- ----------- ----------- ----------- Net (loss) income before discontinued operations and accounting change $ (2,590) $ (4.81) $ 446 $ 0.83 South America foreign currency transaction losses, net (1) 353 0.66 128 0.24 Mark to market (gains) losses from FAS No. 133 (2) (42) (0.08) 36 0.06 Loss (gain) on sale of assets and asset impairment expense (3) 2,601 4.83 (16) (0.03) Provision for regulatory decision in Brazil (4) 99 0.18 - - Transaction and severance costs related to IPALCO transaction - - 85 0.16 ----------- ----------- ----------- ----------- Net income from recurring operations $ 421 $ 0.78 $ 679 $ 1.26 =========== =========== =========== =========== Diluted weighted average shares outstanding (in millions) 540 544 === ===
(1) South America foreign currency transaction losses, net, consist of the following in 2002: a loss of approximately $252 million after income tax, or $0.47 per share, from Brazil; a loss of approximately $139 million after income tax, or $0.26 per share, from Argentina; and a gain of approximately $38 million after income tax, or $0.07 per share, from Venezuela. For 2001, South America foreign currency transaction losses, net, consist of the following: a loss of approximately $140 million after income tax, or $0.26 per share, from Brazil, and a gain of approximately $12 million after income tax, or $0.02 per share, from Venezuela. (2) Mark to market gains from FAS No. 133 consist of the following in 2002: a loss of approximately $46 million after income tax, or $0.09 per share, from interest rate instruments, a gain of approximately $20 million after income tax, or $0.04 per share, from foreign exchange rate instruments, and a gain of approximately $68 million after income tax, or $0.13 per share, from commodity contracts. For 2001, mark to market losses from FAS No. 133 consist of the following: a loss of approximately $63 million after income tax, or $0.11 per share, from interest rate instruments, a gain of approximately $21 million after income tax, or $0.04 per share, from foreign exchange rate instruments, and a gain of approximately $6 million after income tax, or $0.01 per share, from commodity contracts. (3) Loss on sale of assets and asset impairment expense consists of the following in 2002: a loss of approximately $1.293 billion after income tax, or $2.40 per share, from goodwill and other asset impairment charges in Brazil; a loss of approximately $1.013 billion after income tax, or $1.88 per share, from asset impairment charges in the United Kingdom; a loss of approximately $171 million after income tax, or $0.32 per share, from asset impairment charges in the United States; a loss of $54 million after income tax, or $0.10 per share, resulting from impairment charges related to equity method investments in Latin American telecommunications companies; a loss of $50 million after income tax, or $0.09 per share, related to the loss recognized on the sale of CANTV shares; and a loss of approximately $20 million after income tax, or $0.04 per share, from other asset impairment charges. For 2001, amount consists of a gain of $16 million after income tax, or $0.03 per per share, related to a gain recognized on the sale of CANTV shares. (4) The Company has recorded the retroactive regulatory decision by the Brazilian regulator depriving AES Sul of amounts the Company believes it was entitled to receive as a reduction in revenue. Pro forma revenues for the year ended December 31, 2002, are approximately $8.8 billion. Business Segment Results AES's business segments, which include Contract Generation, Large Utilities, Competitive Supply and Growth Distribution generated combined income before income taxes (EBT) of $1.169 billion for 2002 as compared to $1.574 billion for 2001. On a geographic basis, EBT for 2002 was generated 50% from North America, 14% from Europe and Africa, 13% from South America, 12% from Asia and 11% from the Caribbean. Businesses that were sold or that were classified as discontinued operations during 2002 are excluded from this discussion. This discussion is based on recurring operations and excludes nonrecurring items, South America foreign currency transaction gains and losses and FAS 133 mark to market gains and losses. Contract Generation ($ in millions) 2002 2001 Variance ---- ---- -------- Segment revenues $2,478 $2,417 $ 61 % of total revenues 28% 32% (4)% Operating margin $1,050 $ 854 $ 196 % of segment revenues 42% 35% 7% EBT $ 635 $ 532 $ 103 % of total EBT 54% 34% 20% Contract Generation consists of our power plants located around the world that have contractually limited their exposure to commodity price risks (primarily electricity prices) for a period of at least five years and for 75% or more of their expected output capacity. For 2002, Contract Generation revenues were $2.478 billion and represented 28% of total revenues for the year, an increase of $61 million over 2001. The most significant contributions continued to be from North and South America, which in aggregate comprised 63% of Contract Generation revenue for the year as compared to 64% for 2001. Revenues were enhanced with the addition of recently completed commercial contract generation businesses totaling 1,736 mw (added subsequent to the fourth quarter of 2001), including Red Oak in New Jersey (832 mw natural gas) Meghnaghat in Bangladesh (450 mw natural gas) and Puerto Rico (454 mw coal). Revenues also improved at Beaver Valley in Pennsylvania, Tiszai in Hungary, Ebute in Nigeria, Haripur in Bangladesh and the Chigen plants in China. These improvements were offset by declines at Uruguaiana and Tiete in Brazil, the Gener plants in Chile, Mtkvari in the Republic of Georgia, Los Mina in the Dominican Republic and Merida in Mexico. The operating margin (as a percentage of sales) for our Contract Generation segment showed significant improvement over 2001 at 42% for 2002 as compared to 35% for 2001. Stronger margins and margin percentages arose during the quarter at many contract generation plants and in all geographic regions, with the most significant improvements at the Gener plants in Chile, Uruguaiana in Brazil, Ironwood and Red Oak in the U.S., Kilroot in Northern Ireland, Ebute in Nigeria and the Chigen plants in China. These improvements were partially offset by declines at Tiete in Brazil, Shady Point in Oklahoma, Thames in Connecticut and Lal Pir/Pak Gen in Pakistan. Overall, Contract Generation operating margins increased $196 million to $1.050 billion for 2002. As a result, Contract Generation delivered $635 million of EBT (or 54% of the total) for 2002, an increase of 19% over 2001 EBT of $532 million (34% of the total). All geographic regions showed increases in EBT within the contract generation segment except for South America and the Caribbean. Competitive Supply ($ in millions) 2002 2001 Variance ---- ---- -------- Segment revenues $1,837 $1,973 $ (136) % of total revenues 21% 26% (5)% Operating margin $ 394 $ 484 $ (90) % of segment revenues 21% 25% (4)% EBT $ 129 $ 182 $ (53) % of total EBT 11% 12% (1)% Competitive Supply consists primarily of our power plants selling electricity directly to wholesale customers in competitive markets and as a result the profitability of such plants are generally more sensitive to fluctuations in the market price of electricity, natural gas and coal, in particular. For 2002, revenues for this segment were $1.837 billion and represented 21% of total revenues for the year. The most significant contributions continued to be from the competitive markets of the UK and the U.S. that in aggregate comprised 73% of Competitive Supply revenue for the year. Competitive market prices declined year over year in Argentina due to the devaluation of the Peso in January 2002 and prices were also lower in California and the UK compared to 2001 and as a result total revenue for the competitive supply segment decreased 7% from 2001. Certain plants showed offsetting revenue improvements including Tiszapalkonya in Hungary, Ottana in Italy and Chivor in Colombia. Year on year increases associated with new businesses in 2002 included Parana in Argentina (845 mw gas) and Delano in California (50 mw gas). The operating margin (as a percentage of sales) for our Competitive Supply segment was 21% in 2002, a decrease from 25% in 2001. Margins and margin percentages were lower in South America, North America and Europe and Africa due primarily to lower market prices. The most significant declines were at Drax in the UK, the New York plants, Placerita in California and Alicura in Argentina. These declines were offset in part by improvements at Deepwater in Texas, Delano in California, Panama and Altai in Kazakhstan. Overall, operating margin for Competitive Supply declined 19% to $394 million for 2002. As a result of lower competitive prices, primarily in the US and the UK, Competitive Supply generated $129 million of EBT (or 11% of the total) for 2002, a decrease from 2001 EBT of $182 million. Large Utilities ($ in millions) 2002 2001 Variance ---- ---- -------- Segment revenues $ 3,151 $ 1,642 $ 1,509 % of total revenues 36% 21% 15% Operating margin $ 781 $ 615 $ 166 % of segment revenues 25% 37% (12)% EBT $ 418 $ 774 $ (356) % of total EBT 36% 49% (13)% The Large Utilities segment is comprised of our four large integrated utilities that serve nearly 11 million customers in North America, the Caribbean and South America. Businesses include IPALCO in Indiana, EDC in Venezuela along with CEMIG (an equity affiliate) and Eletropaulo in Brazil. For 2002, revenues for this segment were $3.151 billion and represented 36% of total revenues for the year. The significant increase in revenues of 92% resulted from consolidating the results of Eletropaulo (serving Sao Paulo, Brazil) beginning in February 2002 when AES acquired control of that business with a 68% voting interest (increased from 49% prior to that date when Eletropaulo was treated as an equity affiliate). The additional revenues from Eletropaulo were offset in part by a 21% decrease in revenues at EDC due primarily to the devaluation of the Bolivar during 2002 and a slight decline in revenues at IPALCO. The operating margin was $781 million for the year, an increase of 27% over 2001 due to the consolidation of Eletropaulo and an improvement in the operating margin at IPALCO. These increases were offset by a decline in the operating margin at EDC. As a percentage of sales the operating margin for large utilities was 25%, down from 37% for 2001 because of the reductions in margin at EDC resulting in part from the devaluation of the Bolivar as well as lower than average segment margins at Eletropaulo. Large Utilities generated $418 million of EBT (or 36% of the total) for 2002, down from $774 million (or 49%) for 2001. The reduction in 2002 results primarily from reduced contributions (after associated interest costs) from Eletropaulo due to the slow recovery of electricity demand to pre-rationing levels in Brazil and from EDC due to the devaluation of the Bolivar and the deterioration in economic conditions in Venezuela. Growth Distribution ($ in millions) 2002 2001 Variance ---- ---- -------- Segment revenues $ 1,326 $ 1,613 $ (287) % of total revenues 15% 21% (6)% Operating margin $ 150 $ 221 $ (71) % of segment revenues 11% 14% (3)% EBT $ (13) $ 86 $ (99) % of total EBT (1)% 5% (6)% Our Growth Distribution segment, serving over 5 million customers, consists of electricity distribution companies that are generally located in developing countries or regions where the demand for electricity is expected to grow at a rate higher than in more developed regions. For 2002, revenues were $1.326 billion, an 18% decline from 2001, and represented 15% of total revenues for the year. The Caribbean represents the most significant contributor with 42% of growth distribution revenues, while South America represents 31% and Europe and Africa contributes the remaining 27%. The decrease in revenues is due primarily to significant reductions in Argentina because of the devaluation of the Argentine peso, as well as reductions at Sul in Brazil and at our distribution businesses in El Salvador. These reductions were offset in part by increases at Kievoblenergo and Rivnooblenergo in Ukraine as well as from Sonel in Cameroon. The operating margin (as a percentage of sales) was $150 million or 11% of revenues as compared with $221 million or 14% of revenues for 2001. Margins improved at Sonel in Cameroon, Telasi in Georgia, Kievoblenergo and Rivnooblenergo in the Ukraine and Ede Este in the Dominican Republic. As a result, Growth Distribution had an EBT loss of $(13) for 2002, a decline from EBT of $86 million in 2001. THE AES CORPORATION --- Supplemental Data --------------------2001-------------------- --------------------2002------------------ 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year ------- ------- ------- ------- ---- ------- ------- ------- ------- ---- GEOGRAPHIC - % of Total North America Revenues (5) 26% 27% 32% 24% 27% 22% 22% 27% 24% 24% Income before Taxes (1, 5) 41% 31% 57% 34% 40% 35% 38% 71% 75% 50% Caribbean (2) Revenues (5) 26% 25% 24% 21% 24% 18% 17% 17% 19% 18% Income before Taxes (1, 5) 17% 29% 14% 30% 22% 12% 9% 7% 20% 11% South America Revenues (5) 21% 24% 21% 26% 23% 34% 38% 32% 30% 33% Income before Taxes (1, 5) 34% 36% 22% 24% 30% 27% 26% 6% (31)% 13% Europe/Africa Revenues (5) 20% 17% 21% 24% 20% 21% 18% 19% 22% 20% Income before Taxes (1, 5) 5% (1)% 1% 6% 3% 16% 14% 6% 17% 14% Asia Revenues (5) 7% 7% 2% 5% 6% 5% 5% 5% 5% 5% Income before Taxes (1, 5) 3% 5% 6% 6% 5% 10% 13% 10% 19% 12% SEGMENTS - % of Total Contract Generation Revenues (5) 31% 32% 32% 31% 32% 28% 27% 28% 30% 28% Operating Margin (3, 5) 39% 36% 31% 49% 39% 39% 43% 41% 57% 44% Income before Taxes (1, 5) 34% 21% 20% 64% 34% 46% 44% 54% 94% 54% Competitive Supply Revenues (5) 28% 24% 28% 24% 26% 21% 19% 21% 23% 21% Operating Margin (3, 5) 28% 19% 27% 16% 22% 15% 16% 17% 19% 17% Income before Taxes (1, 5) 17% 4% 23% 1% 12% 9% 14% 12% 10% 11% Large Utilities Revenues (5) 21% 23% 23% 19% 21% 34% 39% 37% 33% 36% Operating Margin (3, 5) 28% 36% 32% 20% 29% 34% 33% 34% 30% 33% Income before Taxes (1, 5) 49% 72% 57% 12% 49% 34% 37% 34% 36% 36% Growth Distribution Businesses Revenues (5) 20% 21% 17% 26% 21% 17% 15% 14% 14% 15% Operating Margin (3, 5) 5% 9% 10% 15% 10% 12% 8% 8% (6)% 6% Income before Taxes (1, 5) - 3% - 23% 5% 11% 5% - (40)% (1)% FINANCIAL HIGHLIGHTS - $ in millions, except Total Assets in billions Revenues (5) $2,035 $1,856 $1,828 $1,926 $7,645 $2,228 $2,240 $2,110 $2,214 $8,792 Gross Margin Percentage (5) 30% 25% 26% 33% 28% 31% 27% 28% 23% 27% Income before Taxes (1, 5) $475 $417 $356 $326 $1,574 $387 $343 $256 $183 $1,169 Net Income Excluding Extraordinary and Other Items (4) $222 $178 $149 $130 $679 $181 $139 $86 $15 $421 Total Assets (billions) $36 $36 $36 $37 $37 $40 $39 $37 $34 $34 Deprec./Amort. $180 $185 $197 $194 $756 $199 $201 $196 $201 $797
(1) Income before taxes excludes the Corporate and Business Development segment. The following items are included in the Corporate and Business Development segment: corporate interest, other corporate costs, business development expenses, Brazilian affiliates foreign currency effects, Argentine affiliates foreign currency effects, Venezuelan affiliates foreign currency effects, effects of FAS No. 133, nonrecurring items, discontinued operations and cumulative effect of accounting change. (2) Includes Venezuela and Colombia. (3) Operating Margin is revenues reduced by cost of sales, depreciation and amortization and other operating expenses. (4) Net income excludes Brazilian affiliates foreign currency effects, Argentine affiliates foreign currency effects, Venezuelan affiliates foreign currency effects, effects of FAS No. 133, nonrecurring items, discontinued operations and cumulative effect of accounting change. (5) The effect of the provision related to the Brazilian regulatory decision recorded by AES Sul and the effect of impairment charges recorded by Drax and Eletropaulo are excluded from these calculations. THE AES CORPORATION CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2002 AND 2001 ($ in millions) December 31, 2002 December 31, 2001 ----------------- ----------------- Assets: Current assets: Cash and cash equivalents, including restricted cash of $181 and $357, respectively $ 961 $ 1,159 Short term investments 211 215 Accounts receivable, net of reserves of $424 and $239, respectively 1,239 1,127 Inventory 384 468 Receivable from affiliates 25 10 Deferred income taxes - current 130 244 Prepaid expenses and other assets 926 597 Current assets of held for sale and discontinued businesses 473 872 --------------- --------------- Total current assets 4,349 4,692 Property, Plant and Equipment: Land 703 542 Electric generation and distribution assets 19,125 16,326 Accumulated depreciation (4,204) (3,015) Construction in progress 3,222 4,259 --------------- --------------- Property, plant and equipment, net 18,846 18,112 Other assets: Deferred financing costs, net 433 368 Project development costs 15 66 Investment in and advances to affiliates 194 3,031 Debt service reserves and other deposits 515 433 Goodwill, net 1,388 2,367 Deferred income taxes - noncurrent 968 - Long-term assets of held for sale and discontinued businesses 5,322 6,936 Other assets 1,746 807 --------------- --------------- Total other assets 10,581 14,008 --------------- --------------- Total Assets $ 33,776 $ 36,812 =============== =============== Liabilities & Stockholders' Equity Current liabilities: Accounts payable $ 1,139 $ 727 Accrued interest 369 266 Accrued and other liabilities 1,165 674 Current liabilities of held for sale and discontinued businesses 497 812 Recourse debt-current portion 26 488 Non-recourse debt-current portion 3,315 1,961 --------------- --------------- Total current liabilities 6,511 4,928 Long-term liabilities Recourse debt 5,778 4,913 Non-recourse debt 10,928 11,515 Deferred income taxes 981 627 Long-term liabilities of held for sale and discontinued businesses 4,785 4,827 Other long-term liabilities 3,338 1,955 --------------- --------------- Total long-term liabilities 25,810 23,837 Minority interest, including discontinued operations of $41 and $124, respectively 818 1,530 Company obligated convertible mandatorily redeemable preferred securities of subsidiary trusts holding solely junior subordinated debentures of AES 978 978 Stockholders' equity: Common stock 6 5 Additional paid-in capital 5,311 5,225 Retained earnings (699) 2,809 Accumulated other comprehensive loss (4,959) (2,500) --------------- --------------- Total stockholders' equity (341) 5,539 --------------- --------------- Total Liabilities and Stockholders' Equity $ 33,776 $ 36,812 =============== ===============
THE AES CORPORATION CAPITAL RESOURCES AND OTHER BALANCE SHEET DATA DECEMBER 31, 2002 AND 2001 December 31, December 31, Capitalization: 2002 2001 ------------------ ------------------ Recourse debt $ 5.80 $ 5.40 Non-recourse debt 14.24 13.48 ------------------ ------------------ Total debt 20.04 18.88 Preferred Securities 0.98 0.98 Minority Interest 0.82 1.53 Stockholders' equity (0.34) 5.54 ------------------ ------------------ Total capitalization $ 21.50 $ 26.93 ================== ==================
Selected Balance Sheet Data by Geographic Region: Property, Plant Total Non-recourse December 31, 2002 & Equipment Assets Debt ------------------------------------------------------------ North America 33% 22% 30% Caribbean 27% 20% 20% South America 23% 24% 35% Europe/Africa 8% 18% 6% Asia 9% 8% 9% Discontinued operations - 7% - Corporate - 1% - December 31, 2001 North America 34% 20% 33% Caribbean 27% 18% 23% South America 25% 27% 33% Europe/Africa 8% 18% 5% Asia 6% 6% 6% Discontinued operations - 10% - Corporate - 1% -
Selected Balance Sheet Data by Line of Business: Property, Plant Total Non-recourse December 31, 2002 & Equipment Assets Debt ------------------------------------------------------------ Contract Generation 45% 37% 48% Competitive Supply 17% 22% 11% Large Utilities 30% 24% 32% Growth Distribution Businesses 8% 9% 9% Discontinued operations - 7% - Corporate - 1% - December 31, 2001 Contract Generation 44% 33% 46% Competitive Supply 21% 24% 13% Large Utilities 23% 20% 31% Growth Distribution Businesses 12% 12% 10% Discontinued operations - 10% - Corporate - 1% -
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 hereunto duly authorized. THE AES CORPORATION Date: February 20, 2003 By: /s/ Brian Miller ------------------------------ Name: Brian Miller Title: Deputy General Counsel and Secretary -----END PRIVACY-ENHANCED MESSAGE-----