8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20349

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): November 6, 2007

THE AES CORPORATION

(Exact name of registrant as specified in its charter)

DELAWARE	001-12291	54-1163725
(State of Incorporation)	(Commission File No.)	(IRS Employer Identification No.)

4300 Wilson Boulevard, Suite 1100

Arlington, Virginia 22203

(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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition.

On November 6, 2007, The AES Corporation issued a press release announcing its financial results for the quarter ending September 30, 2007. A copy of the press release is being furnished as Exhibit 99.1 attached hereto and is incorporated by reference herein.  Such information is furnished pursuant to Item 2.02 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act regardless of any general incorporation language in such filing.

Item 9.01  Financial Statements and Exhibits

(d)           Exhibits

Exhibit No.	Description
99.1	Press Release issued by The AES Corporation, dated November 6, 2007.

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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 of the undersigned hereunto duly authorized.

	THE AES CORPORATION
Date: November 6, 2007	By:	/s/Mary E. Wood
		Name:	Mary E. Wood
		Title:	Vice President and Corporate Controller

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EXHIBIT INDEX

No.	Description
99.1	Press Release issued by The AES Corporation, dated November 6, 2007.

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EX-99.1

Exhibit 99.1

Press Release

Media Contact Robin Pence 703 682 6552

Investor Contact Ahmed Pasha 703 682 6451

AES Reports Third Quarter Results

Quarterly Revenues Up 18% to $3.5 Billion; Gross Margin Up 2% to $840 Million

Arlington, VA, November 6, 2007 – The AES Corporation (NYSE:AES) today reported results for the third quarter ending September 30, 2007. During the quarter, revenues increased by $524 million or 18% to $3.5 billion.  The increase in revenues reflects higher rates and volumes of approximately $284 million in Latin America, North America and Europe & Africa, favorable foreign currency translation of approximately $174 million and contributions from TEG and TEP, two plants in Mexico the Company acquired in first quarter 2007, of approximately $57 million.  Gross margin increased by $14 million or 2% to $840 million, primarily due higher prices in North America and contributions from TEG and TEP as well as the impacts of favorable foreign currency translation, a combined impact of approximately $106 million. These gains were partially offset by the impacts of gas curtailments and lower hydrology at our businesses in Argentina and Chile of approximately $112 million.

Third quarter income from continuing operations was $91 million, or $0.14 per diluted share, versus ($368) million, or ($0.56) per diluted share in third quarter 2006. Third quarter net income was $103 million, or $0.15 per diluted share, versus net loss of $327 million, or $0.50 per diluted share, in third quarter 2006. Adjusted earnings per share (a non-GAAP financial measure) was $0.18 in third quarter 2007 versus $0.30 in third quarter 2006. The main driver of the quarter-over-quarter differences in both GAAP and adjusted earnings was the restructuring of certain of the Company’s Brazilian subsidiaries in third quarter 2006. This restructuring resulted in a non-cash, after-tax charge to income from continuing operations of $500 million, or $0.76 per diluted share in third quarter 2006. It also resulted in a benefit of $0.07 to adjusted earnings per share in third quarter 2006. Excluding these one-time impacts, the decrease in third quarter 2007 earnings per diluted share and adjusted earnings per share was primarily driven by the Company’s operations in Chile and Argentina, which negatively impacted income from continuing operations by approximately $45 million, or $0.07 impact on both diluted and adjusted earnings per share. Additionally, impairments in North American subsidiaries impacted income from continuing operations by approximately $20 million, or $0.03 impact on diluted earnings

per share. The impairments did not impact adjusted earnings per share. Higher energy prices in North America and contributions from new businesses partially offset these negative impacts.

During the quarter, net cash from operating activities decreased by $187 million to $741 million. This decrease was primarily due to the sale of a Venezuelan subsidiary, C.A. La Electricidad de Caracas (EDC), in May 2007.  Excluding any contribution from EDC, net cash from operating activities would have decreased by approximately $19 million.

During the quarter, the Company was the winning bidder on two projects totaling 1,762 MW in the Philippines and the Republic of South Africa. Additionally, the Company’s Alternative Energy group announced plans to begin construction of a 170 MW expansion of its Buffalo Gap wind farm in Texas. Once completed, the project will increase capacity at Buffalo Gap to 524 MW, making it one of the largest operating wind farms in the United States.

“We are pleased with our continued progress toward achieving our growth goals, such as winning two strategically important projects in the Philippines and South Africa. These investments will be platforms for further expansion in these two high growth markets,” said Paul Hanrahan, AES President and CEO. “In October, the market gave us a vote of confidence when our $500 million offering of unsecured notes generated significant demand and was successfully upsized to $2 billion. This transaction will help us to achieve more flexibility in our existing capital structure, as we were able to refinance existing debt, and will support our growth program.”

Income from continuing operations was $482 million, or $0.71 per diluted share, for the first nine months of 2007 versus $149 million, or $0.22 per diluted share, for the prior year. Net loss, primarily due to the sale of EDC, was $112 million, or $0.17 per diluted share, for the first nine months of 2007 versus net income of $190 million, or $0.28 per diluted share, for the first nine months of 2006. Adjusted earnings per share (a non-GAAP financial measure) for the first nine months was $0.82 versus $0.96 last year. Net cash from operating activities was $1.8 billion for the first nine months of 2007 versus $1.9 billion last year. Excluding the contributions from EDC, net cash from operating activities would have been $1.8 billion for the first nine months of 2007 and $1.6 billion for the first nine months of 2006.

Third Quarter 2007 Segment Highlights

•Latin America Generation revenue increased by $229 million to $914 million, primarily due to higher rates in Chile and Argentina of approximately $150 million and approximately $32 million in higher intercompany sales at Tiete in Brazil. Gross margin decreased by $84 million to $183 million, primarily due to higher costs associated with gas supply curtailments and lower hydrology in Chile and Argentina of approximately $112 million, partially offset by increased intercompany sales at Tiete.

•Latin America Utility revenue increased by $141 million to $1.3 billion, primarily due to approximately $135 million in favorable foreign currency translation and

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approximately $26 million in increased volumes at Eletropaulo in Brazil, partially offset by decreased rates at Eletropaulo due to the 2007 tariff reset. Gross margin increased by $71 million to $259 million, primarily due to approximately $55 million in favorable foreign currency translation and approximately $33 million in lower costs in Brazil.

•North America Generation revenue increased by $76 million to $566 million, primarily due to approximately $57 million in contributions from the newly acquired TEG and TEP businesses in Mexico and approximately $25 million in higher rates and volumes at Eastern Energy in New York. Gross margin increased by $47 million to $196 million, primarily due to the higher rates and volumes as well as lower costs at Eastern Energy, an impact of approximately $34 million, and contributions from TEG and TEP of approximately $20 million.

•North America Utility revenue remained flat at $274 million. Consistent with revenues, gross margin remained relatively flat with a decrease of $3 million to $86 million.

•Europe & Africa Generation revenue increased by $20 million to $216 million, primarily due to increased rates and volumes of approximately $15 million in Kazakhstan and approximately $3 million in favorable foreign currency translation. Gross margin decreased by $3 million, primarily due to decreased sales of excess emission allowances in Hungary.

•Europe & Africa Utility revenue increased by $26 million to $157 million, primarily due to increased rates of approximately $14 million in Ukraine and approximately $6 million in favorable foreign currency translation. Gross margin decreased by $8 million, primarily due to the reversal of approximately $7 million in VAT tax accrual during third quarter 2006 at SONEL in Cameroon.

•Asia Generation revenue increased by $44 million to $235 million, primarily due to higher dispatch in Pakistan and higher volume in Sri Lanka. Gross margin decreased by $6 million to $47 million, primarily due to lower volumes in China. Increased revenue in Pakistan and Sri Lanka had a relatively flat impact on gross margin due to related increases in fuel costs.

Non-GAAP Financial Measures

See Non-GAAP Financial Measures for definitions of adjusted earnings per share and free cash flow and reconciliations to the most comparable GAAP financial measure.

Attachments

Condensed Consolidated Statements of Operations, Segment Information, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows, Non-GAAP Financial Measures, Parent Financial Information.

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Conference Call Information

AES will host a conference call on Wednesday, November 7, 2007 at 9:00 a.m. Eastern Standard Time (EST). The call may be accessed via a live webcast which will be available at www.aes.com by selecting “Investor Information” and then “Quarterly Financial Results” or by telephone in listen-only mode at (877)-493-9121. International callers should dial (973)-582-2750. Please call at least ten minutes before the scheduled start time. You will be requested to provide your name and affiliation. The AES Financial Review presentation will be available prior to the call at www.aes.com by selecting “Investor Information” and then “Quarterly Financial Results.”

A telephonic replay will be available at approximately 12:00 p.m. EST by dialing (877)-519-4471 or (973)-341-3080 for international callers. The system will ask for a reservation number; please enter 9425835 followed by the pound key (#). The telephonic replay will be available until November 28, 2007. A webcast replay, as well as a replay in downloadable .mp3 format, will be accessible at www.aes.com beginning shortly after the completion of the call.

About AES

AES is one of the world’s largest global power companies, with 2006 revenues of $11.6 billion. With operations in 28 countries on five continents, AES’s generation and distribution facilities have the capacity to serve 100 million people worldwide. Our 13 regulated utilities amass annual sales of over 73,000 GWh and our 121 generation facilities have the capacity to generate over 43,000 megawatts. Our global workforce of 30,000 people is committed to operational excellence and meeting the world’s growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at media@aes.com.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’s current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect

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actual results are discussed in AES’s filings with the Securities and Exchange Commission, including, but not limited to, the risks discussed under Item 1A “Risk Factors” in AES’s 2006 Annual Report on Form 10-K/A. Readers are encouraged to read AES’s filings to learn more about the risk factors associated with AES’s business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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THE AES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions, except per share amounts)	2007			2006			2007			2006
				(Restated)						(Restated)
Revenues	$	3,471		$	2,947		$	9,924		$	8,615
Cost of sales	(2,631		)	(2,121		)	(7,340		)	(6,017		)
GROSS MARGIN	840			826			2,584			2,598
General and administrative expenses	(93		)	(67		)	(264		)	(181		)
Interest expense	(448		)	(473		)	(1,281		)	(1,323		)
Interest income	122			115			363			316
Other expense	(25		)	(53		)	(90		)	(162		)
Other income	25			31			324			74
Gain on sale of investments	—			9			10			98
Loss on sale of subsidiary stock	—			(536		)	—			(536		)
Asset impairment expense	(38		)	—			(38		)	(16		)
Foreign currency transaction gain (loss) on net monetary position	2			(49		)	(2		)	(76		)
Equity in earnings of affiliates	15			19			56			65
Other non-operating expense	—			—			(45		)	—
INCOME (LOSS) BEFORE INCOME TAXES AND MINORITY INTEREST	400			(178		)	1,617			857
Income tax expense	(146		)	(5		)	(601		)	(280		)
Minority interest expense	(163		)	(185		)	(534		)	(428		)
INCOME (LOSS) FROM CONTINUING OPERATIONS	91			(368		)	482			149
Income from operations of discontinued businesses, net of tax	—			34			71			79
Gain (loss) from disposal of discontinued businesses, net of tax	12			7			(665		)	(59		)
Income from extraordinary item, net of tax	—			—			—			21
NET INCOME (LOSS)	$	103		$	(327	)	$	(112	)	$	190
DILUTED EARNINGS (LOSS) PER SHARE
Income (loss) from continuing operations	$	0.14		$	(0.56	)	$	0.71		$	0.22
Discontinued operations	0.01			0.06			(0.88		)	0.03
Extraordinary item	—			—			—			0.03
DILUTED EARNINGS (LOSS) PER SHARE	$	0.15		$	(0.50	)	$	(0.17	)	$	0.28
Diluted weighted average shares outstanding (in millions)	675			658			677			670

THE AES CORPORATION

SEGMENT INFORMATION (unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions)	2007			2006			2007			2006
				(Restated)						(Restated)
REVENUES
Latin America Generation	$	914		$	685		$	2,475		$	1,905
Latin America Utilities	1,311			1,170			3,795			3,430
North America Generation	566			490			1,622			1,444
North America Utilities	274			274			796			780
Europe & Africa Generation	216			196			682			590
Europe & Africa Utilities	157			131			482			419
Asia Generation	235			191			686			611
Corporate and Other	(202		)	(190		)	(614		)	(564		)
Total revenues	$	3,471		$	2,947		$	9,924		$	8,615
GROSS MARGIN
Latin America Generation	$	183		$	267		$	633		$	781
Latin America Utilities	259			188			758			684
North America Generation	196			149			531			458
North America Utilities	86			89			245			212
Europe & Africa Generation	35			38			168			173
Europe & Africa Utilities	22			30			63			95
Asia Generation	47			53			153			158
Corporate and Other	12			12			33			37
Total gross margin	$	840		$	826		$	2,584		$	2,598
INCOME BEFORE INCOME TAXES AND MINORITY INTEREST
Latin America Generation	$	141		$	212		$	648		$	653
Latin America Utilities	193			(444		)	589			(151		)
North America Generation	83			62			437			337
North America Utilities	57			58			159			121
Europe & Africa Generation	26			13			137			151
Europe & Africa Utilities	20			25			53			84
Asia Generation	35			40			112			113
Corporate and Other	(155		)	(144		)	(518		)	(451		)
Total income before income taxes and minority interest	$	400		$	(178	)	$	1,617		$	857

THE AES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

	September 30,			December 31,
($ in millions, except shares and par value)	2007			2006
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,664		$	1,379
Restricted cash	609			548
Short term investments	994			640
Accounts receivable, net of reserves of $261 and $233, respectively	2,088			1,769
Inventory	511			471
Receivable from affiliates	31			76
Deferred income taxes - current	256			208
Prepaid expenses	158			109
Other current assets	1,309			927
Current assets of held for sale and discontinued businesses	—			438
Total current assets	7,620			6,565
NONCURRENT ASSETS
Property, plant and equipment:
Land	1,032			928
Electric generation and distribution assets	24,891			21,835
Accumulated depreciation	(7,395		)	(6,545		)
Construction in progress	1,300			979
Property, plant and equipment, net	19,828			17,197
Other assets:
Deferred financing costs, net of accumulated amortization of $213 and $188, respectively	290			279
Investment in and advances to affiliates	709			595
Debt service reserves and other deposits	612			524
Goodwill, net	1,438			1,416
Other intangible assets, net of accumulated amortization of $216 and $171, respectively	333			298
Deferred income taxes - noncurrent	695			602
Other assets	1,825			1,634
Noncurrent assets of held for sale and discontinued businesses	—			2,091
Total other assets	5,902			7,439
TOTAL ASSETS	$	33,350		$	31,201
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	978		$	795
Accrued interest	335			404
Accrued and other liabilities	2,603			2,131
Non-recourse debt - current portion	1,247			1,411
Recourse debt - current portion	415			—
Current liabilities of held for sale and discontinued businesses	—			288
Total current liabilities	5,578			5,029
LONG-TERM LIABILITIES
Non-recourse debt	11,058			9,834
Recourse debt	4,484			4,790
Deferred income taxes - noncurrent	1,181			803
Pension liabilities and other post-retirement liabilities	923			844
Other long-term liabilities	3,690			3,554
Long-term liabilities of held for sale and discontinued businesses	—			434
Total long-term liabilities	21,336			20,259
Minority Interest (including discontinued businesses of $- and $175, respectively)	3,237			2,948
STOCKHOLDERS’ EQUITY
Common stock ($.01 par value, 1,200,000,000 shares authorized; 668,825,239 and 665,126,309 shares issued and outstanding at September 30, 2007 and December 31, 2006, respectively)	7			7
Additional paid-in capital	6,820			6,654
Accumulated deficit	(1,260		)	(1,096		)
Accumulated other comprehensive loss	(2,368		)	(2,600		)
Total stockholders’ equity	3,199			2,965
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	33,350		$	31,201

THE AES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Three Months Ended September 30,							Nine Months Ended September 30,
($ in millions)		2007			2006 (Restated)			2007			2006 (Restated)
OPERATING ACTIVITIES
Net cash provided by operating activities		$	741		$	928		$	1,848		$	1,879
INVESTING ACTIVITIES
Capital expenditures		(538		)	(445		)	(1,728		)	(997		)
Acquisitions - net of cash acquired		(60		)	—			(316		)	(13		)
Proceeds from the sales of businesses		54			583			835			817
Proceeds from the sales of assets		5			3			10			10
Sales of short-term investments		909			403			1,663			1,161
Purchases of short-term investments		(644		)	(518		)	(1,811		)	(1,463		)
Decrease (increase) in restricted cash		74			67			(105		)	(57		)
Purchases of emission allowances		(1		)	(5		)	(3		)	(53		)
Proceeds from the sales of emission allowances		—			8			10			75
(Increase) decrease in debt service reserves and other assets		(46		)	(4		)	63			(14		)
Purchases of long-term available-for-sale securities		—			—			(23		)	(52		)
Repayment of affiliate loan		55			—			55			—
Other investing activities		4			13			15			12
Net cash (used in) provided by investing activities		(188		)	105			(1,335		)	(574		)
FINANCING ACTIVITIES
Borrowings (repayments) under the revolving credit facilities, net		101			(39		)	(82		)	104
Issuance of non-recourse debt		371			237			1,169			1,437
Repayments of recourse debt		—			—			—			(150		)
Repayments of non-recourse debt		(538		)	(353		)	(1,135		)	(1,934		)
Payments for deferred financing costs		(15		)	(9		)	(36		)	(64		)
Distributions to minority interests		(305		)	(85		)	(571		)	(210		)
Contributions from minority interests		34			—			370			117
Issuance of common stock		7			31			36			59
Financed capital expenditures		(19		)	(30		)	(27		)	(47		)
Other financing		1			(4		)	2			(7		)
Net cash used in financing activities		(363		)	(252		)	(274		)	(695		)
Effect of exchange rate changes on cash		(4		)	(14		)	46			13
Total increase in cash and cash equivalents		186			767			285			623
Cash and cash equivalents, beginning		1,478			1,032			1,379			1,176
Cash and cash equivalents, ending		$	1,664		$	1,799		$	1,664		$	1,799

THE AES CORPORATION

NON-GAAP FINANCIAL MEASURES (unaudited)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
($ in millions, except per share amounts)	2007		2006 (Restated)			2007		2006 (Restated)
Diluted EPS From Continuing Operations	$	0.14	$	(0.56	)	$	0.71	$	0.22
FAS 133 Mark to Market (Gains)/Losses	0.01		0.02			0.02		—
Currency Transaction (Gains)/Losses	—		0.01			—		0.01
Net Asset (Gains)/Losses and Impairments	0.03		0.83			0.09		0.69
Debt Retirement (Gains)/Losses	—		—			—		0.04
Adjusted Earnings Per Share (1)	$	0.18	$	0.30		$	0.82	$	0.96
Capital Expenditures
Maintenance Capital Expenditures	$	168	$	196		$	679	$	575
Growth Capital Expenditures	389		279			1,076		469
Total Capital Expenditures	$	557	$	475		$	1,755	$	1,044
Reconciliation of Free Cash Flow
Net Cash from Operating Activities	$	741	$	928		$	1,848	$	1,879
Less: Maintenance Capital Expenditures	168		196			679		575
Free Cash Flow (2)	$	573	$	732		$	1,169	$	1,304

(1)Adjusted earnings per share (a non-GAAP financial measure) is defined as diluted earnings per share from continuing operations excluding gains or losses associated with (a) mark-to-market amounts related to FAS 133 derivative transactions, (b) foreign currency transaction impacts on the net monetary position related to Braziland Argentina, (c) significant asset gains or losses due to disposition transactions and impairments, and (d) costs related to the early retirement of recourse debt. AES believes that adjusted earnings per share 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 associated with mark-to-market gains or losses related to certain derivative transactions, currency transaction gains or losses, periodic strategic decisions to dispose of certain assets which may influence results in a given period, and the early retirement of corporate debt.

(2)Free cash flow (a non-GAAP financial measure) is defined as net cash from operating activities less maintenance capital expenditures (including environmental capital expenditures). AES believes that free cash flow is a useful measure for evaluating our financial condition because it represents the amount of cash provided by operations less maintenance capital expenditures as defined by our businesses, that may be available for investing or for repaying debt.

THE AES CORPORATION

PARENT FINANCIAL INFORMATION

	4 Quarters Ended
	September 30,		June 30,		March 31,		December 31,
Parent only data: last four quarters	2007		2007		2007		2006
($ in millions)	Actual		Actual		Actual		Actual
Total subsidiary distributions & returns of capital to Parent
Subsidiary distributions (1) to Parent & QHCs	$	1,067	$	1,058	$	976	$	971
Returns of capital distributions to Parent & QHCs	94		92		87		72
Total subsidiary distributions & returns of capital to parent	$	1,161	$	1,150	$	1,063	$	1,043

	Quarter Ended
	September 30,		June 30,		March 31,		December 31,
Parent only data: quarterly	2007		2007		2007		2006
($in millions)	Actual		Actual		Actual		Actual
Total subsidiary distributions & returns of capital to Parent
Subsidiary distributions (1) to Parent & QHCs	$	361	$	259	$	137	$	311
Returns of capital distributions to Parent & QHCs	35		34		15		9
Total subsidiary distributions & returns of capital to Parent	$	396	$	293	$	152	$	320

	Balance at
Parent Company	September 30,		June 30,		March 31,		December 31,
Liquidity (3)	2007		2007		2007		2006
($in millions)	Actual		Actual		Actual		Actual
Cash at Parent & Cash at QHCs (2)	$	619	$	405	$	74	$	257
Availability under revolver	896		973		804		889
Ending liquidity	$	1,515	$	1,378	$	878	$	1,146

(1)Subsidiary Distributions (a non-GAAP financial measure) is defined as cash distributions (primarily dividends and interest income) from subsidiary companies to the parent company and qualified holding companies. These cash flows are the source of cash flow to the parent.

(2)The cash held at qualifying holding companies (QHCs) (a non-GAAP financial measure) represents cash sent to subsidiaries of the company domiciled outside of the US. Such subsidiaries had no contractual restrictions on their ability to send cash to AES, the Parent Company (Parent). Cash at those subsidiaries was used for investment and related activities outside of the US. These investments included equity investments and loans to other foreign subsidiaries as well as development and general costs and expenses incurred outside the US. Since the cash held by these QHCs is available to the Parent, AES uses the combined measure of subsidiary distributions to Parent and QHCs as a useful measure of cash available to the Parent to meet its international liquidity needs.

(3)AES believes that unconsolidated parent company liquidity (a non-GAAP financial measure) is important to the liquidity position of AES as a parent company because of the non-recourse nature of most of AES’s indebtedness.