ARLINGTON, Va., Feb. 24, 2022 /PRNewswire/ --
Strategic Accomplishments
- Signed 5 GW of new renewables PPAs in 2021, surpassing original
target of 3 to 4 GW; backlog of new projects is now 9.2 GW
- Grew pipeline of development projects to 59 GW
- Increased ownership of AES Andes to 99% from 67% in an
accretive transaction, simplifying AES Andes' shareholder base to
enable more efficient growth in renewables
- Fluence completed its IPO and began trading in November 2021
2021 Financial Highlights
- Diluted EPS of ($0.62), compared
to $0.06 in 2020, primarily driven by
a loss on the deconsolidation of the Alto Maipo hydroelectric
project in Chile
- Adjusted EPS1 of $1.52, compared to $1.44 in 2020 and 2021 guidance of $1.50 to $1.58
Financial Position and Outlook
- Announcing intent to exit coal by year-end 2025 versus prior
expectation of a reduction to below 10% by year-end 2025, subject
to necessary approvals
- Initiating 2022 guidance for Adjusted EPS1 of
$1.55 to $1.65
- Reaffirming 7% to 9% annualized growth target through 2025, off
a base year of 2020
- Targeting signing 4.5 to 5.5 GW of new renewables under
long-term PPAs in 2022
The AES Corporation (NYSE: AES) today reported financial results
for the year ended December 31,
2021.
"Last year was AES' best year ever, in terms of safety, new
renewables PPAs signed, growth in our backlog of projects and
pipeline, earnings and cash flow," said Andrés Gluski, AES
President and Chief Executive Officer. "We signed 5 GW of new
PPAs to consolidate our position as the fastest growing US
renewables developer and the largest supplier of corporate
renewables contracts in the world. Our backlog of projects
stands at 9.2 GW and our pipeline of potential projects grew to 59
GW. These results reflect the resiliency of our people,
supply chains and customer relationships in the midst of the global
COVID pandemic. To continue to accelerate the future of
energy, today, we are announcing our intent to exit coal generation
by the end of 2025. We are committed to completing the
transformation of AES, while maintaining our guidance and
delivering strong financial results."
"We delivered on our strategic and financial objectives in 2021,
including Adjusted EPS1 of $1.52, compared to our guidance of $1.50 to $1.58. I am proud that our team was able to
overcome most of the $0.07 per share
non-cash impact from the share count change related to the equity
units issued in March 2021," said
Stephen Coughlin, AES Executive Vice
President and Chief Financial Officer. "We are reaffirming
our annualized growth target of 7% to 9% through 2025 and
initiating 2022 Adjusted EPS1 guidance of $1.55 to $1.65. Our portfolio's performance remains
strong, and our renewables growth is accelerating, opening up
pathways for us to meet our new aim to exit coal by the end of
2025."
Key Full Year 2021 Financial Results
Full year 2021 Diluted Earnings Per Share from Continuing
Operations (Diluted EPS) was ($0.62),
a decrease of $0.68 compared to full
year 2020, primarily reflecting the deconsolidation of Alto Maipo,
higher impairments, and lower contributions from Brazil.
These negative drivers were partially offset by higher margins at
the US and Utilities, Mexico,
Central America and the
Caribbean (MCAC), and Eurasia
Strategic Business Units (SBU) and lower Parent Company interest
expense. The Company also benefited from gains on the Initial
Public Offering (IPO) of Fluence and on remeasurement of the
Company's interest in sPower's development platform.
Full year 2021 Adjusted Earnings Per Share1 (Adjusted
EPS, a non-GAAP financial measure) was $1.52, an increase of $0.08, primarily driven by contributions from new
renewables in the US, and better operating performance at existing
businesses at the US and Utilities, MCAC, and Eurasia SBUs, as well
as lower Parent Company interest expense. These positive
drivers were partially offset by lower contributions from the South
America SBU, and the impact of the inclusion of shares underlying
the forward purchase contract component of the Company's
March 2021 equity units issuance.
Detailed Strategic Highlights
AES is leading the industry's transition to clean energy by
investing in clean power and innovative technology
businesses. The Company is well-positioned to benefit from
very favorable trends in clean power generation, distribution, and
supporting technologies.
- In 2021, the Company completed construction of or the
acquisition of 2,079 MW of renewables and energy storage, primarily
including:
-
- 1,129 MW of solar, wind and energy storage in the US;
- 859 MW of hydro, wind, energy storage and solar in Chile, Brazil
and Colombia; and
- 91 MW of solar in Panama and
the Dominican Republic.
- Since the Company's third quarter 2021 earnings call in
November, the Company has signed or acquired 978 MW of renewables
and energy storage under long-term Power Purchase Agreements
(PPA).
- In full year 2021, the Company signed or agreed to acquire
4,965 MW of renewables and energy storage under long-term PPAs,
bringing the Company's backlog to 9,239 MW expected to be completed
through 2025, including:
-
- 3,497 MW under construction; and
- 5,742 MW signed under long-term PPAs.
- Fluence completed its IPO in November
2021 (Nasdaq: FLNC). Following the IPO, the Company's
ownership interest in Fluence is approximately 34% (on a fully
diluted basis).
- The Company intends to exit coal by 2025, through a combination
of asset sales, fuel conversions and retirements, while maintaining
reliability and affordability, and subject to necessary approvals.
Previously, the Company expected to reduce its generation from coal
to less than 10% of total generation by year-end 2025. The Company
currently has 7.1 GW of coal generation in operation across its
portfolio.
Guidance and Expectations1
The Company is reaffirming its 7% to 9% annualized growth rate
target through 2025, from a base year of 2020. This growth
rate includes the impact of the Company's accelerated intent to
exit coal by year-end 2025, which is expected to be largely offset
by increased contributions from higher ownership of AES Andes, as
well as continued higher growth in renewables. Previously,
the Company expected to reduce its generation from coal to less
than 10% of total generation by year-end 2025. From 2022
through 2025, the Company expects to receive $1 billion in asset sale proceeds, compared to
its prior expectation of receiving $500
million of asset sale proceeds.
The Company is initiating 2022 guidance for Adjusted
EPS1 of $1.55 to
$1.65. Growth in 2022 is
expected to be primarily driven by increased contributions from
higher ownership of AES Andes, as well as continued higher growth
in renewables and from existing operations. This growth is
expected to be partially offset by a higher adjusted tax rate, the
full year impact from a higher share count due to the inclusion of
shares underlying the purchase contract component of the Company's
March 2021 equity units issuance, and
assumed dilution from asset sales. In 2022, the Company
expects to receive $500 million to
$700 million in asset sale proceeds,
largely reflecting its accelerated decarbonization
strategy.
Additionally, the Company previously expected the pending
distribution rate case at DPL in Ohio to be resolved early in 2022; however, it
is now expected to be resolved later in the year, and therefore
only a small contribution has been assumed in the Company's
guidance.
The Company's 2022 guidance is based on foreign currency and
commodity forward curves as of December 31,
2021.
1
|
Adjusted EPS is a
non-GAAP financial measure. See attached "Non-GAAP Measures"
for definition of Adjusted EPS and a description of the adjustments
to reconcile Adjusted EPS to Diluted EPS for the year ended
December 31, 2020. The Company is not able to provide a
corresponding GAAP equivalent or reconciliation for its Adjusted
EPS guidance without unreasonable effort.
|
Non-GAAP Financial Measures
See Non-GAAP Measures for definitions of Adjusted Earnings Per
Share and Adjusted Pre-Tax Contribution, as well as reconciliations
to the most comparable GAAP financial measures.
Attachments
Condensed Consolidated Statements of Operations, Segment
Information, Condensed Consolidated Balance Sheets, Condensed
Consolidated Statements of Cash Flows, Non-GAAP Financial Measures
and Parent Financial Information.
Conference Call Information
AES will host a conference call on Friday, February 24,
2022 at 10:00 a.m. Eastern Standard
Time (EST). Interested parties may listen to the
teleconference by dialing 1-844-200-6205 at least ten minutes
before the start of the call. International callers should dial
+1-929-526-1599. The Conference ID for this call is
579271. Internet access to the conference call and
presentation materials will be available on the AES website
at www.aes.com by selecting "Investors" and then
"Presentations and Webcasts."
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
The AES Corporation (NYSE: AES) is a Fortune 500 global power
company accelerating the future of energy. Together with our
many stakeholders, we're improving lives by delivering the greener,
smarter energy solutions the world needs. Our diverse
workforce is committed to continuous innovation and operational
excellence, while partnering with our customers on their strategic
energy transitions and continuing to meet their energy needs
today. For more information,
visit www.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' current expectations
based on reasonable assumptions. Forecasted financial
information is based on certain material assumptions. These
assumptions include, but are not limited to, our expectations
regarding the COVID-19 pandemic, accurate projections of future
interest rates, commodity price and foreign currency pricing,
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 the execution of PPAs, conversion of our backlog and 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 actual
results are discussed in AES' filings with the Securities and
Exchange Commission (the "SEC"), including, but not limited to, the
risks discussed under Item 1A: "Risk Factors" and Item 7:
Management's Discussion & Analysis in AES' Annual Report
on Form 10-K and in subsequent reports filed with the SEC.
Readers are encouraged to read AES' filings to learn more about the
risk factors associated with AES' business. AES undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Any Stockholder who desires a copy of the Company's 2020 Annual
Report on Form 10-K filed February 25,
2021, and any subsequent filing with the SEC, may obtain a
copy (excluding Exhibits) without charge by addressing a request to
the Office of the Corporate Secretary, The AES Corporation, 4300
Wilson Boulevard, Arlington,
Virginia 22203. Exhibits also may be requested, but a
charge equal to the reproduction cost thereof will be made. A
copy of the Form 10-K may be obtained by visiting the Company's
website at www.aes.com.
Website Disclosure
AES uses its website, including its quarterly updates, as
channels of distribution of Company information. The
information AES posts through these channels may be deemed
material. Accordingly, investors should monitor our website,
in addition to following AES' press releases, quarterly SEC filings
and public conference calls and webcasts. In addition, you
may automatically receive e-mail alerts and other information about
AES when you enroll your e-mail address by visiting the "Subscribe
to Alerts" page of AES' Investors website. The contents of
AES' website, including its quarterly updates, are not, however,
incorporated by reference into this release.
THE AES
CORPORATION
|
Consolidated
Statements of Operations
|
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2019
|
|
(in millions, except
per share amounts)
|
Revenue:
|
|
|
|
|
|
Regulated
|
$
2,868
|
|
$
2,661
|
|
$
3,028
|
Non-Regulated
|
8,273
|
|
6,999
|
|
7,161
|
Total
revenue
|
11,141
|
|
9,660
|
|
10,189
|
Cost of
Sales:
|
|
|
|
|
|
Regulated
|
(2,448)
|
|
(2,235)
|
|
(2,484)
|
Non-Regulated
|
(5,982)
|
|
(4,732)
|
|
(5,356)
|
Total cost of
sales
|
(8,430)
|
|
(6,967)
|
|
(7,840)
|
Operating
margin
|
2,711
|
|
2,693
|
|
2,349
|
General and
administrative expenses
|
(166)
|
|
(165)
|
|
(196)
|
Interest
expense
|
(911)
|
|
(1,038)
|
|
(1,050)
|
Interest
income
|
298
|
|
268
|
|
318
|
Loss on extinguishment
of debt
|
(78)
|
|
(186)
|
|
(169)
|
Other
expense
|
(60)
|
|
(53)
|
|
(80)
|
Other
income
|
410
|
|
75
|
|
145
|
Gain (loss) on
disposal and sale of business interests
|
(1,683)
|
|
(95)
|
|
28
|
Asset impairment
expense
|
(1,575)
|
|
(864)
|
|
(185)
|
Foreign currency
transaction gains (losses)
|
(10)
|
|
55
|
|
(67)
|
Other non-operating
expense
|
—
|
|
(202)
|
|
(92)
|
INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE TAXES AND
EQUITY IN EARNINGS OF AFFILIATES
|
(1,064)
|
|
488
|
|
1,001
|
Income tax benefit
(expense)
|
133
|
|
(216)
|
|
(352)
|
Net equity in losses
of affiliates
|
(24)
|
|
(123)
|
|
(172)
|
INCOME (LOSS) FROM
CONTINUING OPERATIONS
|
(955)
|
|
149
|
|
477
|
Gain from disposal of
discontinued businesses, net of income tax expense of $1, $0,
and $0, respectively
|
4
|
|
3
|
|
1
|
NET INCOME
(LOSS)
|
(951)
|
|
152
|
|
478
|
Less: Loss (income)
from continuing operations attributable to noncontrolling
interests
and redeemable stock of subsidiaries
|
542
|
|
(106)
|
|
(175)
|
NET INCOME (LOSS)
ATTRIBUTABLE TO THE AES CORPORATION
|
$
(409)
|
|
$
46
|
|
$
303
|
AMOUNTS ATTRIBUTABLE
TO THE AES CORPORATION COMMON
STOCKHOLDERS:
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
$
(413)
|
|
$
43
|
|
$
302
|
Income from
discontinued operations, net of tax
|
4
|
|
3
|
|
1
|
NET INCOME (LOSS)
ATTRIBUTABLE TO THE AES CORPORATION
|
$
(409)
|
|
$
46
|
|
$
303
|
BASIC EARNINGS PER
SHARE:
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to The AES Corporation
common
stockholders, net of tax
|
$
(0.62)
|
|
$
0.06
|
|
$
0.46
|
Income from
discontinued operations attributable to The AES Corporation
common
stockholders, net of tax
|
0.01
|
|
0.01
|
|
—
|
NET INCOME (LOSS)
ATTRIBUTABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS
|
$
(0.61)
|
|
$
0.07
|
|
$
0.46
|
DILUTED EARNINGS PER
SHARE:
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to The AES Corporation
common
stockholders, net of tax
|
$
(0.62)
|
|
$
0.06
|
|
$
0.45
|
Income from
discontinued operations attributable to The AES Corporation
common
stockholders, net of tax
|
0.01
|
|
0.01
|
|
—
|
NET INCOME (LOSS)
ATTRIBUTABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS
|
$
(0.61)
|
|
$
0.07
|
|
$
0.45
|
DILUTED SHARES
OUTSTANDING
|
666
|
|
668
|
|
667
|
THE AES
CORPORATION
|
Consolidated
Statements of Operations (Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
|
2021
|
|
2020
|
|
|
(in millions, except
per share amounts)
|
Revenue:
|
|
|
|
|
Regulated
|
|
$
721
|
|
$
645
|
Non-Regulated
|
|
2,049
|
|
1,915
|
Total
revenue
|
|
2,770
|
|
2,560
|
Cost of
Sales:
|
|
|
|
|
Regulated
|
|
(642)
|
|
(560)
|
Non-Regulated
|
|
(1,569)
|
|
(1,094)
|
Total cost of
sales
|
|
(2,211)
|
|
(1,654)
|
Operating
margin
|
|
559
|
|
906
|
General and
administrative expenses
|
|
(36)
|
|
(46)
|
Interest
expense
|
|
(242)
|
|
(297)
|
Interest
income
|
|
86
|
|
70
|
Loss on extinguishment
of debt
|
|
(37)
|
|
(91)
|
Other
expense
|
|
(28)
|
|
(26)
|
Other
income
|
|
136
|
|
15
|
Gain on disposal and
sale of business interests
|
|
(1,764)
|
|
22
|
Asset impairment
expense
|
|
(201)
|
|
(9)
|
Foreign currency
transaction gains (losses)
|
|
(2)
|
|
35
|
INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE TAXES AND
EQUITY IN EARNINGS OF AFFILIATES
|
|
(1,529)
|
|
579
|
Income tax benefit
(expense)
|
|
208
|
|
(161)
|
Net equity in losses
of affiliates
|
|
(9)
|
|
(17)
|
NET INCOME
(LOSS)
|
|
(1,330)
|
|
401
|
Less: Loss (income)
from continuing operations attributable to noncontrolling
interests
and redeemable stock of subsidiaries
|
|
698
|
|
(83)
|
NET INCOME (LOSS)
ATTRIBUTABLE TO THE AES CORPORATION
|
|
$
(632)
|
|
$
318
|
AMOUNTS ATTRIBUTABLE
TO THE AES CORPORATION COMMON
STOCKHOLDERS:
|
|
|
|
|
BASIC EARNINGS PER
SHARE:
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO THE AES CORPORATION
COMMON STOCKHOLDERS
|
|
$
(0.95)
|
|
$
0.48
|
DILUTED EARNINGS PER
SHARE:
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO THE AES CORPORATION
COMMON STOCKHOLDERS
|
|
$
(0.95)
|
|
$
0.47
|
DILUTED SHARES
OUTSTANDING
|
|
667
|
|
669
|
THE AES
CORPORATION
|
Strategic Business
Unit (SBU) Information
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
(in
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
REVENUE
|
|
|
|
|
|
|
|
US and Utilities
SBU
|
$
1,087
|
|
$
973
|
|
$
4,335
|
|
$
3,918
|
South America
SBU
|
797
|
|
886
|
|
3,541
|
|
3,159
|
MCAC SBU
|
573
|
|
511
|
|
2,157
|
|
1,766
|
Eurasia SBU
|
319
|
|
194
|
|
1,123
|
|
828
|
Corporate and
Other
|
34
|
|
40
|
|
116
|
|
231
|
Eliminations
|
(40)
|
|
(44)
|
|
(131)
|
|
(242)
|
Total
Revenue
|
$
2,770
|
|
$
2,560
|
|
$
11,141
|
|
$
9,660
|
THE AES
CORPORATION
|
Consolidated
Balance Sheets
|
|
|
|
|
December 31,
2021
|
|
December 31,
2020
|
|
(in millions,
except share and per share data)
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
943
|
|
$
1,089
|
Restricted
cash
|
304
|
|
297
|
Short-term
investments
|
232
|
|
335
|
Accounts receivable,
net of allowance for doubtful accounts of $5 and $13,
respectively
|
1,418
|
|
1,300
|
Inventory
|
604
|
|
461
|
Prepaid
expenses
|
142
|
|
102
|
Other current
assets
|
897
|
|
726
|
Current held-for-sale
assets
|
816
|
|
1,104
|
Total current
assets
|
5,356
|
|
5,414
|
NONCURRENT
ASSETS
|
|
|
|
Property, Plant and
Equipment:
|
|
|
|
Land
|
426
|
|
417
|
Electric generation,
distribution assets and other
|
25,552
|
|
26,707
|
Accumulated
depreciation
|
(8,486)
|
|
(8,472)
|
Construction in
progress
|
2,414
|
|
4,174
|
Property, plant and
equipment, net
|
19,906
|
|
22,826
|
Other
Assets:
|
|
|
|
Investments in and
advances to affiliates
|
1,080
|
|
835
|
Debt service reserves
and other deposits
|
237
|
|
441
|
Goodwill
|
1,177
|
|
1,061
|
Other intangible
assets, net of accumulated amortization of $385 and $330,
respectively
|
1,450
|
|
827
|
Deferred income
taxes
|
409
|
|
288
|
Other noncurrent
assets, net of allowance of $23 and $21, respectively
|
2,188
|
|
1,660
|
Noncurrent
held-for-sale assets
|
1,160
|
|
1,251
|
Total other
assets
|
7,701
|
|
6,363
|
TOTAL
ASSETS
|
$
32,963
|
|
$
34,603
|
LIABILITIES AND
EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Accounts
payable
|
$
1,153
|
|
$
1,156
|
Accrued
interest
|
182
|
|
191
|
Accrued non-income
taxes
|
266
|
|
257
|
Deferred
income
|
85
|
|
438
|
Accrued and other
liabilities
|
1,120
|
|
1,223
|
Non-recourse debt,
including $302 and $336, respectively, related to variable interest
entities
|
1,367
|
|
1,430
|
Current held-for-sale
liabilities
|
559
|
|
667
|
Total current
liabilities
|
4,732
|
|
5,362
|
NONCURRENT
LIABILITIES
|
|
|
|
Recourse
debt
|
3,729
|
|
3,446
|
Non-recourse debt,
including $2,223 and $3,918, respectively, related to variable
interest entities
|
13,603
|
|
15,005
|
Deferred income
taxes
|
977
|
|
1,100
|
Other noncurrent
liabilities
|
3,358
|
|
3,241
|
Noncurrent
held-for-sale liabilities
|
740
|
|
857
|
Total noncurrent
liabilities
|
22,407
|
|
23,649
|
Commitments and
Contingencies
|
|
|
|
Redeemable stock of
subsidiaries
|
1,257
|
|
872
|
EQUITY
|
|
|
|
THE AES CORPORATION
STOCKHOLDERS' EQUITY
|
|
|
|
Preferred stock
(without par value, 50,000,000 shares authorized; 1,043,500 issued
and
outstanding at September 30, 2021)
|
825
|
|
—
|
Common stock ($0.01
par value, 1,200,000,000 shares authorized; 818,717,043 issued
and
666,793,625 outstanding at December 31, 2021 and 818,398,654 issued
and 665,370,128
outstanding at December 31, 2020)
|
8
|
|
8
|
Additional paid-in
capital
|
7,119
|
|
7,561
|
Accumulated
deficit
|
(1,089)
|
|
(680)
|
Accumulated other
comprehensive loss
|
(2,220)
|
|
(2,397)
|
Treasury stock, at
cost (151,923,418 and 153,028,526 shares at December 31, 2021
and
December 31, 2020, respectively)
|
(1,845)
|
|
(1,858)
|
Total AES Corporation
stockholders' equity
|
2,798
|
|
2,634
|
NONCONTROLLING
INTERESTS
|
1,769
|
|
2,086
|
Total
equity
|
4,567
|
|
4,720
|
TOTAL LIABILITIES AND
EQUITY
|
$
32,963
|
|
$
34,603
|
THE AES
CORPORATION
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
OPERATING
ACTIVITIES:
|
(in
millions)
|
|
(in
millions)
|
Net income
(loss)
|
$
(1,330)
|
|
$
401
|
|
$
(951)
|
|
$
152
|
Adjustments to net
income (loss):
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
261
|
|
265
|
|
1,056
|
|
1,068
|
Loss (gain) on
disposal and sale of business interests
|
1,764
|
|
(22)
|
|
1,683
|
|
95
|
Impairment
expense
|
201
|
|
9
|
|
1,575
|
|
1,066
|
Deferred income
taxes
|
(329)
|
|
109
|
|
(406)
|
|
(233)
|
Provisions for
(reversals of) contingencies
|
—
|
|
(183)
|
|
(10)
|
|
(186)
|
Loss on extinguishment
of debt
|
37
|
|
91
|
|
78
|
|
186
|
Gain on remeasurement
to acquisition date fair value
|
(34)
|
|
—
|
|
(254)
|
|
—
|
Loss of affiliates,
net of dividends
|
8
|
|
12
|
|
36
|
|
128
|
Emissions allowance
expense
|
128
|
|
47
|
|
337
|
|
135
|
Other
|
(35)
|
|
42
|
|
120
|
|
54
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
(Increase) decrease in
accounts receivable
|
(52)
|
|
88
|
|
(170)
|
|
48
|
(Increase) decrease in
inventory
|
(23)
|
|
(5)
|
|
(93)
|
|
(20)
|
(Increase) decrease in
prepaid expenses and other current assets
|
(132)
|
|
(20)
|
|
(168)
|
|
13
|
(Increase) decrease in
other assets
|
(310)
|
|
118
|
|
(285)
|
|
(134)
|
Increase (decrease) in
accounts payable and other current liabilities
|
6
|
|
(88)
|
|
(251)
|
|
(186)
|
Increase (decrease) in
income tax payables, net and other tax payables
|
104
|
|
(3)
|
|
(271)
|
|
59
|
Increase (decrease) in
deferred income
|
46
|
|
(175)
|
|
(314)
|
|
431
|
Increase (decrease) in
other liabilities
|
213
|
|
(18)
|
|
190
|
|
79
|
Net cash provided by
operating activities
|
523
|
|
668
|
|
1,902
|
|
2,755
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
Capital
expenditures
|
(582)
|
|
(525)
|
|
(2,116)
|
|
(1,900)
|
Acquisitions of
business interests, net of cash and restricted cash
acquired
|
(565)
|
|
(42)
|
|
(658)
|
|
(136)
|
Proceeds from the sale
of business interests, net of cash and restricted cash
sold
|
4
|
|
128
|
|
95
|
|
169
|
Sale of short-term
investments
|
91
|
|
188
|
|
616
|
|
627
|
Purchase of short-term
investments
|
(147)
|
|
(107)
|
|
(519)
|
|
(653)
|
Contributions and
loans to equity affiliates
|
(106)
|
|
(46)
|
|
(427)
|
|
(332)
|
Affiliate repayments
and returns of capital
|
125
|
|
48
|
|
320
|
|
158
|
Purchase of emissions
allowances
|
(86)
|
|
(67)
|
|
(265)
|
|
(188)
|
Other
investing
|
(57)
|
|
(16)
|
|
(97)
|
|
(40)
|
Net cash used in
investing activities
|
(1,323)
|
|
(439)
|
|
(3,051)
|
|
(2,295)
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
Borrowings under the
revolving credit facilities
|
1,551
|
|
321
|
|
2,802
|
|
2,420
|
Repayments under the
revolving credit facilities
|
(1,389)
|
|
(964)
|
|
(2,420)
|
|
(2,479)
|
Issuance of recourse
debt
|
—
|
|
1,800
|
|
7
|
|
3,419
|
Repayments of recourse
debt
|
(19)
|
|
(1,770)
|
|
(26)
|
|
(3,366)
|
Issuance of
non-recourse debt
|
666
|
|
451
|
|
1,644
|
|
4,680
|
Repayments of
non-recourse debt
|
(670)
|
|
(685)
|
|
(2,012)
|
|
(4,136)
|
Payments for financing
fees
|
(13)
|
|
(28)
|
|
(32)
|
|
(107)
|
Distributions to
noncontrolling interests
|
(111)
|
|
(228)
|
|
(284)
|
|
(422)
|
Acquisitions of
noncontrolling interests
|
(100)
|
|
(19)
|
|
(117)
|
|
(259)
|
Contributions from
noncontrolling interests
|
270
|
|
1
|
|
365
|
|
1
|
Sales to
noncontrolling interests
|
92
|
|
512
|
|
173
|
|
553
|
Issuance of preferred
shares in subsidiaries
|
2
|
|
(1)
|
|
153
|
|
112
|
Issuance of preferred
stock
|
—
|
|
—
|
|
1,014
|
|
—
|
Dividends paid on AES
common stock
|
(100)
|
|
(95)
|
|
(401)
|
|
(381)
|
Payments for financed
capital expenditures
|
(18)
|
|
(1)
|
|
(24)
|
|
(60)
|
Other
financing
|
115
|
|
(29)
|
|
(45)
|
|
(53)
|
Net cash provided by
(used in) financing activities
|
276
|
|
(735)
|
|
797
|
|
(78)
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(21)
|
|
9
|
|
(46)
|
|
(24)
|
(Increase) decrease in
cash, cash equivalents and restricted cash of held-for-sale
businesses
|
55
|
|
(57)
|
|
55
|
|
(103)
|
Total increase
(decrease) in cash, cash equivalents and restricted cash
|
(490)
|
|
(554)
|
|
(343)
|
|
255
|
Cash, cash equivalents
and restricted cash, beginning
|
1,974
|
|
2,381
|
|
1,827
|
|
1,572
|
Cash, cash equivalents
and restricted cash, ending
|
$
1,484
|
|
$
1,827
|
|
$
1,484
|
|
$
1,827
|
SUPPLEMENTAL
DISCLOSURES:
|
|
|
|
|
|
|
|
Cash payments for
interest, net of amounts capitalized
|
$
239
|
|
$
290
|
|
$
815
|
|
$
908
|
Cash payments for
income taxes, net of refunds
|
52
|
|
75
|
|
459
|
|
333
|
SCHEDULE OF NONCASH
INVESTING AND FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Notes payable issued
for the acquisition of business interests
|
$
—
|
|
$
47
|
|
$
258
|
|
$
47
|
Non-cash consideration
transferred for the Clean Energy acquisitions
|
$
19
|
|
$
—
|
|
$
118
|
|
$
—
|
Dividends declared
but not yet paid
|
$
105
|
|
$
100
|
|
$
105
|
|
$
100
|
THE AES CORPORATION
NON-GAAP
FINANCIAL MEASURES
(Unaudited)
RECONCILIATION
OF ADJUSTED PRE-TAX CONTRIBUTION (PTC) AND ADJUSTED EPS
Adjusted PTC is defined 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 South America 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 EPS is defined 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, 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 South America 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 PTC is income from
continuing operations attributable to The AES Corporation. The GAAP
measure most comparable to Adjusted EPS is diluted earnings per
share from continuing operations. We believe that Adjusted PTC and
Adjusted EPS better reflect the underlying business performance of
the Company and are 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, 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, for Adjusted
PTC, 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. Adjusted PTC and Adjusted EPS should not be construed as
alternatives to income from continuing operations attributable to
The AES Corporation and diluted earnings per share from continuing
operations, which are determined in accordance with GAAP.
For the year ended December 31,
2020, the Company changed the definitions of Adjusted
Operating Margin, Adjusted PTC and Adjusted EPS to exclude net
gains at Angamos, one of our businesses in the South America SBU,
associated with the early contract terminations with Minera
Escondida and Minera Spence. We
believe the inclusion of the effects of this non-recurring
transaction would result in a lack of comparability in our results
of operations and would distort the metrics that our investors use
to measure us.
Effective January 1, 2021, the
Company changed the definitions of Adjusted Operating Margin,
Adjusted PTC, and Adjusted EPS to remove the adjustment for costs
directly associated with a major restructuring program, including,
but not limited to, workforce reduction efforts, relocations, and
office consolidation. As this adjustment was specific to the major
restructuring program announced by the Company in 2018, we believe
removing this adjustment from our non-GAAP definitions provides
simplification and clarity for our investors.
For the year ended December 31,
2021, the Company updated the definition of Adjusted EPS
item (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 to
include the 2021 tax benefit on reversal of uncertain tax positions
effectively settled upon the closure of the Company's U.S. 2017 tax
return exam.
Reconciliation of
GAAP to Non-GAAP Diluted Loss per Share
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP Diluted Loss per
Share from Continuing Operations
|
$
(0.95)
|
|
$
0.47
|
|
$
(0.62)
|
|
$
0.06
|
Effect of Dilutive
Securities
|
|
|
|
|
|
|
|
Restricted stock
units
|
0.01
|
|
—
|
|
—
|
|
—
|
Equity
units
|
0.05
|
|
—
|
|
0.03
|
|
—
|
NON-GAAP DILUTED LOSS
PER SHARE
|
$
(0.89)
|
|
$
0.47
|
|
$
(0.59)
|
|
$
0.06
|
|
Three Months Ended
December 31, 2021
|
|
Three Months Ended
December 31, 2020
|
|
Twelve Months
Ended December 31, 2021
|
|
Twelve Months
Ended December 31, 2020
|
|
|
Net of NCI
(1)
|
|
Per Share (Diluted)
Net of NCI (1)
|
|
Net of NCI
(1)
|
|
Per Share (Diluted)
Net of NCI (1)
|
|
Net of NCI
(1)
|
|
Per Share (Diluted)
Net of NCI (1)
|
|
Net of
NCI (1)
|
|
Per Share
(Diluted) Net of NCI (1)
|
|
|
(in millions,
except per share amounts)
|
|
Income (loss) from
continuing operations, net of tax, attributable to AES and Diluted
EPS
|
$
(632)
|
|
$
(0.89)
|
|
$
318
|
|
$
0.47
|
|
$
(413)
|
|
$
(0.59)
|
|
$
43
|
|
$
0.06
|
|
Add: Income tax
expense from continuing operations attributable to AES
|
(122)
|
|
|
|
92
|
|
|
|
(31)
|
|
|
|
130
|
|
|
|
Pre-tax
contribution
|
$
(754)
|
|
|
|
$
410
|
|
|
|
$
(444)
|
|
|
|
$
173
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized derivative
and equity securities losses (gains)
|
$
(25)
|
|
$
(0.04)
|
(2)
|
$
(21)
|
|
$
(0.03)
|
|
$
(1)
|
|
$
—
|
|
$
3
|
|
$
0.01
|
|
Unrealized foreign
currency losses (gains)
|
9
|
|
0.01
|
|
(3)
|
|
—
|
|
14
|
|
0.02
|
|
(10)
|
|
(0.01)
|
|
Disposition/acquisition losses
|
1,138
|
|
1.60
|
(3)
|
(18)
|
|
(0.02)
|
(4)
|
861
|
|
1.22
|
(5)
|
112
|
|
0.17
|
(6)
|
Impairment
losses
|
32
|
|
0.05
|
(7)
|
50
|
|
0.07
|
(8)
|
1,153
|
|
1.65
|
(9)
|
928
|
|
1.39
|
(10)
|
Loss on
extinguishment of debt
|
40
|
|
0.06
|
(11)
|
120
|
|
0.18
|
(12)
|
91
|
|
0.13
|
(13)
|
223
|
|
0.33
|
(14)
|
Net gains from early
contract terminations at Angamos
|
—
|
|
—
|
|
(110)
|
|
(0.16)
|
(15)
|
(256)
|
|
(0.37)
|
(16)
|
(182)
|
|
(0.27)
|
(15)
|
U.S. Tax Law Reform
Impact
|
|
|
(0.25)
|
(17)
|
|
|
—
|
|
|
|
(0.25)
|
(17)
|
|
|
0.02
|
(18)
|
Less: Net income tax
benefit
|
|
|
(0.09)
|
(19)
|
|
|
(0.03)
|
(20)
|
|
|
(0.29)
|
(21)
|
|
|
(0.26)
|
(22)
|
Adjusted PTC and
Adjusted EPS
|
$
440
|
|
$
0.45
|
|
$
428
|
|
$
0.48
|
|
$
1,418
|
|
$
1.52
|
|
$
1,247
|
|
$
1.44
|
|
_____________________________
|
(1)
|
NCI is defined as
Noncontrolling Interests.
|
(2)
|
Amount primarily
relates to unrealized gains on commodities swaps at Integrated
Energy of $23 million, or $0.03 per share.
|
(3)
|
Amount primarily
relates to loss on deconsolidation of Alto Maipo of $1.5 billion,
or $2.07 per share, and additional loss on Uplight transaction with
shareholders of $14 million, or $0.02 per share; partially offset
by a gain on initial public offering of Fluence of $325 million, or
$0.46 per share, and a gain on remeasurement of our equity interest
in sPower to acquisition-date fair value of $35 million, or 0.05
per share.
|
(4)
|
Amount primarily
relates to gain on sale of OPGC of $23 million, or $0.03 per
share.
|
(5)
|
Amount primarily
relates to loss on deconsolidation of Alto Maipo of $1.5 billion,
or $2.09 per share, loss on Uplight transaction with shareholders
of $25 million, or $0.04 per share, and a day-one loss recognized
at commencement of a sales-type lease at AES Renewable Holdings of
$13 million, or $0.02 per share, partially offset by gain on
initial public offering of Fluence of $325 million, or $0.46 per
share, gain on remeasurement of our equity interest in sPower to
acquisition-date fair value of $249 million, or $0.35 per share,
gain on Fluence issuance of shares of $60 million, or $0.09 per
share, and gain on sale of Guacolda of $22 million, or $0.03 per
share.
|
(6)
|
Amount primarily
relates to loss on sale of Uruguaiana of $85 million, or $0.13 per
share, loss on sale of the Kazakhstan HPPs of $30 million, or $0.05
per share, as a result of the final arbitration decision, and
advisor fees associated with the successful acquisition of
additional ownership interest in AES Brasil of $9 million, or $0.01
per share; partially offset by gain on sale of OPGC of $23 million,
or $0.03 per share.
|
(7)
|
Amount primarily
relates to asset impairments at Buffalo Gap of $22 million, or
$0.03 per share, and at Laurel Mountain of $7 million, or $0.01 per
share.
|
(8)
|
Amount primarily
relates to asset impairments at our sPower equity affiliate,
impacting equity earnings by $41 million, or $0.06 per
share.
|
(9)
|
Amount primarily
relates to asset impairments at AES Andes of $540 million, or $0.77
per share, at Puerto Rico of $475 million, or $0.68 per share, at
Mountain View of $67 million, or $0.10 per share, at our sPower
equity affiliate, impacting equity earnings by $24 million, or
$0.03 per share, at Buffalo Gap of $22 million, or $0.03 per share,
at Clean Energy of $14 million, or $0.02 per share, and at Laurel
Mountain of $7 million, or $0.01 per share.
|
(10)
|
Amount primarily
relates to asset impairments at AES Andes of $527 million, or $0.79
per share, other-than-temporary impairment of OPGC of $201 million,
or $0.30 per share, impairments at our Guacolda and sPower equity
affiliates, impacting equity earnings by $85 million, or $0.13 per
share, and $57 million, or $0.09 per share, respectively;
impairment at AES Hawaii of $38 million, or $0.06 per share, and
impairment at Panama of $15 million, or $0.02 per share.
|
(11)
|
Amount primarily
relates to loss on early retirement of debt at AES Brasil of $27
million, or $0.04 per share, and at Argentina of $9 million, or
$0.01 per share.
|
(12)
|
Amount primarily
relates to losses on early retirement of debt at the Parent Company
of $108 million, or $0.16 per share, and at Angamos of $6 million,
or $0.01 per share.
|
(13)
|
Amount primarily
relates to losses on early retirement of debt at AES Brasil of $27
million, or $0.04 per share, at Argentina of $17 million, or $0.02
per share, at AES Andes of $15 million, or $0.02 per share, and at
Andres and Los Mina of $15 million, or $0.02 per share.
|
(14)
|
Amount primarily
relates to losses on early retirement of debt at the Parent Company
of $146 million, or $0.22 per share, DPL of $32 million, or $0.05
per share, Angamos of $17 million, or $0.02 per share, and Panama
of $11 million, or $0.02 per share.
|
(15)
|
Amounts relate to net
gains at Angamos associated with the early contract terminations
with Minera Escondida and Minera Spence of $110 million, or $0.16
per share, and $182 million, or $0.27 per share, for the three and
twelve months ended December 31, 2020, respectively.
|
(16)
|
Amount relates to net
gains at Angamos associated with the early contract terminations
with Minera Escondida and Minera Spence of $256 million, or $0.37
per share.
|
(17)
|
Amount relates to the
tax benefit on reversal of uncertain tax positions effectively
settled upon closure of the Company's 2017 U.S. tax return exam of
$176 million, or $0.25 per share.
|
(18)
|
Amount represents
adjustment to tax law reform remeasurement due to incremental
deferred taxes related to DPL of $16 million, or $0.02 per
share.
|
(19)
|
Amount primarily
relates to income tax benefits associated with the loss on
deconsolidation of Alto Maipo of $209 million, or $0.29 per share;
partially offset by income tax expense associated with the gain on
initial public offering of Fluence of $73 million, or $0.10 per
share, income tax expense adjustments associated with the
impairments of Puerto Rico and AES Andes of $50 million, or $0.07
per share, and $28 million, or $0.04 per share, respectively, and
income tax expense associated with the gain on remeasurement of our
equity interest in sPower of $8 million, or $0.01 per
share.
|
(20)
|
Amount primarily
relates to income tax benefits associated with the loss on early
retirement of debt at the Parent Company of $21 million, or $0.03
per share, and income tax benefits associated with the impairments
of AES Andes of $17 million, or $0.02 per share, and at sPower of
$10 million, or $0.01 per share; partially offset by income tax
expense related to net gains at Angamos associated with the early
contract terminations with Minera Escondida and Minera Spence of
$32 million, or $0.05 per share.
|
(21)
|
Amount primarily
relates to income tax benefits associated with the loss on
deconsolidation of Alto Maipo of $209 million, or $0.30 per share,
income tax benefits associated with the impairments at AES Andes of
$146 million, or $0.21 per share, at Puerto Rico of $20 million, or
$0.03 per share, and at Mountain View of $15 million, or $0.02 per
share, partially offset by income tax expense associated with the
gain on initial public offering of Fluence of $73 million, or $0.10
per share, income tax expense related to net gains at Angamos
associated with the early contract terminations with Minera
Escondida and Minera Spence of $69 million, or $0.10 per share, and
income tax expense associated with the gain on remeasurement of our
equity interest in sPower of $55 million, or $0.08 per
share.
|
(22)
|
Amount primarily
relates to income tax benefits associated with the impairments at
AES Andes and Guacolda of $164 million, or $0.25 per share, and
income tax benefits associated with losses on early retirement of
debt at the Parent Company of $31 million, or $0.05 per share;
partially offset by income tax expense related to net gains at
Angamos associated with the early contract terminations with Minera
Escondida and Minera Spence of $49 million, or $0.07 per
share.
|
The AES
Corporation
|
Parent Financial
Information
|
Parent only data:
last four quarters
|
|
|
|
|
|
(in
millions)
|
4 Quarters
Ended
|
Total subsidiary
distributions & returns of capital to Parent
|
December 31,
2021
|
September 30,
2021
|
June 30,
2021
|
March 31,
2021
|
|
Actual
|
Actual
|
Actual
|
Actual
|
|
Subsidiary
distributions1 to Parent & QHCs
|
$
1,166
|
$
966
|
$
1,203
|
$
1,145
|
|
Returns of capital
distributions to Parent & QHCs
|
1
|
(118)
|
45
|
45
|
|
Total subsidiary
distributions & returns of capital to Parent
|
$
1,167
|
$
848
|
$
1,248
|
$
1,190
|
|
Parent only data:
quarterly
|
|
|
|
|
|
(in
millions)
|
Quarter
Ended
|
Total subsidiary
distributions & returns of capital to Parent
|
December 31,
2021
|
September 30,
2021
|
June 30,
2021
|
March 31,
2021
|
|
Actual
|
Actual
|
Actual
|
Actual
|
|
Subsidiary
distributions1 to Parent & QHCs
|
$
477
|
$
278
|
$
164
|
$
247
|
|
Returns of capital
distributions to Parent & QHCs
|
1
|
—
|
—
|
—
|
|
Total subsidiary
distributions & returns of capital to Parent
|
$
478
|
$
278
|
$
164
|
$
247
|
|
|
|
(in
millions)
|
Balance
at
|
|
December 31,
2021
|
September 30,
2021
|
June 30,
2021
|
March 31,
2021
|
|
Parent Company
Liquidity2
|
Actual
|
Actual
|
Actual
|
Actual
|
|
Cash at Parent &
Cash at QHCs3
|
$
41
|
$
338
|
$
373
|
$
565
|
|
Availability under
credit facilities
|
837
|
1,175
|
941
|
916
|
|
Ending
liquidity
|
$
878
|
$
1,513
|
$
1,314
|
$
1,481
|
|
____________________________
|
|
|
(1)
|
Subsidiary
distributions received by Qualified Holding Companies ("QHCs")
excluded from Schedule 1. Subsidiary Distributions should not be
construed as an alternative to Consolidated Net Cash Provided by
Operating Activities, which is determined in accordance with US
GAAP. Subsidiary Distributions are important to the Parent
Company because the Parent Company is a holding company that does
not derive any significant direct revenues from its own activities
but instead relies on its subsidiaries' business activities and the
resultant distributions to fund the debt service, investment and
other cash needs of the holding company. The reconciliation of
the difference between the Subsidiary Distributions and
Consolidated Net Cash Provided by Operating Activities consists of
cash generated from operating activities that is retained at the
subsidiaries for a variety of reasons which are both discretionary
and non-discretionary in nature. These factors include, but
are not limited to, retention of cash to fund capital expenditures
at the subsidiary, cash retention associated with non-recourse debt
covenant restrictions and related debt service requirements at the
subsidiaries, retention of cash related to sufficiency of local
GAAP statutory retained earnings at the subsidiaries, retention of
cash for working capital needs at the subsidiaries, and other
similar timing differences between when the cash is generated at
the subsidiaries and when it reaches the Parent Company and related
holding companies.
|
(2)
|
Parent Company
Liquidity is defined as cash available to the Parent Company,
including cash at qualified holding companies (QHCs), plus
available borrowings under our existing credit facility. AES
believes that unconsolidated Parent Company liquidity is important
to the liquidity position of AES as a Parent Company because of the
non-recourse nature of most of AES' indebtedness.
|
(3)
|
The cash held at QHCs
represents cash sent to subsidiaries of the company domiciled
outside of the US. Such subsidiaries have no contractual
restrictions on their ability to send cash to AES, the Parent
Company. 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.
|
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SOURCE The AES Corporation