0000874761FALSE00008747612024-02-262024-02-26


UNITED STATES
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 26, 2024
  _____________________________________________________________________________________________________
THE AES CORPORATION
(Exact name of registrant as specified in its charter)
_________________________________________________________________________________________________________________
Delaware001-1229154-1163725
(State or other jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.)

4300 Wilson Boulevard
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:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per shareAESNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
_________________________________________________________________________________________________________________



Item 2.02 Results of Operations and Financial Condition.

On February 26, 2024, The AES Corporation (“AES” or the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2023. 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 7.01 Regulation FD Disclosure.

On February 26, 2024, AES issued a press release announcing its financial results for the quarter ended December 31, 2023, its most recent guidance and provided additional forward-looking information. 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 7.01 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of 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 or the Exchange Act regardless of any general incorporation language in such filing.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act and of the Exchange Act. 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 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’ 2023 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.

Any Stockholder who desires a copy of the Company’s 2023 Annual Report on Form 10-K filed February 26, 2024, or subsequent filings with the SEC, may obtain a copy (excluding the exhibits thereto) 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 Annual Report on Form 10-K may also be obtained by visiting the Company’s website at www.aes.com.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No.    Description  

99.1        Press Release issued by The AES Corporation, dated February 26, 2024




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:February 26, 2024By:/s/ Stephen Coughlin
Name:Stephen Coughlin
Title:Executive Vice President and Chief Financial Officer



EXHIBIT INDEX
Exhibit No.Description
Press Release issued by The AES Corporation, dated February 26, 2024
101Inline XBRL Document Set for the Cover Page from this Current Report on Form 8-K, formatted as Inline XBRL
104Cover Page Interactive Data File (embedded within the Inline XBRL document)





aeslogo16a.jpg
Press Release
Investor Contact: Susan Harcourt 703-682-1204, susan.harcourt@aes.com
Media Contact: Amy Ackerman 703-682-6399, amy.ackerman@aes.com

AES Reports Record Performance in 2023 & Raises Long-Term Guidance

Strategic Accomplishments
•Signed new contracts for 5.6 GW of renewables in full year 2023, marking the third year in a row of adding 5 GW or more to the backlog
•Completed construction of 3.5 GW of renewables in full year 2023, doubling new additions compared to 2022
•Secured $1.1 billion in asset sale proceeds, exceeding target of $400 to $600 million

2023 Financial Highlights
•Diluted EPS of $0.34, compared to ($0.82) in 2022
•Adjusted EPS1 of $1.76, compared to $1.67 in 2022 and 2023 guidance of $1.65 to $1.75
•2023 Net Loss of $182 million, compared to Net Loss of $505 million in 2022
•2023 Adjusted EBITDA2 of $2,812 million, compared to $2,931 million in 2022 and 2023 guidance of $2,600 to $2,900 million
◦2023 Adjusted EBITDA with Tax Attributes2,3 of $3,423 million, compared to $3,198 million in 2022

Financial Position and Outlook
•With 5.6 GW of signed PPAs in 2023, on track to achieve target of signing 14 to 17 GW in 2023 to 2025
•Expecting to add 3.6 GW of new projects in 2024
•Initiating 2024 guidance for Adjusted EPS1 of $1.87 to $1.97
◦Reaffirming annualized growth target of 7% to 9% through 2025, off a base of 2020
◦Raising annualized growth target to 7% to 9% through 2027 from 6% to 8%, off a base of 2023 guidance
•Initiating 2024 guidance for Adjusted EBITDA2 of $2,600 to $2,900 million
◦Raising annualized growth target2 to 5% to 7% through 2027 from 3% to 5%, off a base of 2023 guidance
◦Expecting 2024 Adjusted EBITDA with Tax Attributes2,3 of $3,550 to $3,950 million

ARLINGTON, Va., February 26, 2024 – The AES Corporation (NYSE: AES) today reported financial results for the year ended December 31, 2023.

"Overall, 2023 was AES' best year ever in terms of both execution and financial performance. We exceeded almost all of our strategic objectives, including increasing renewables construction by 100% to 3.5 GW and signing 5.6 GW of new PPAs," said Andrés Gluski, AES President and Chief Executive Officer. "Our backlog of signed PPAs now stands at 12.3 GW and we continue to see strong and growing
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 quarter and twelve months ended December 31, 2023. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.
2     Adjusted EBITDA is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income (Loss) for the quarter and twelve months ended December 31, 2023. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.
3     Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties.


demand from our corporate customers, including data center companies. We are therefore very well-positioned to add 3.6 GW of new capacity to our operating portfolio in 2024 and sign 14 to 17 GW of new renewable contracts from 2023 through 2025."

"I am extremely pleased with our financial results for 2023, which met or exceeded our expectations on all metrics. We also significantly exceeded our asset sales goal for the year, positioning us very well to support our future growth," said Stephen Coughlin, AES Executive Vice President and Chief Financial Officer. "Our 2024 targets and our higher long-term growth rates reflect our confidence in our strategy, our leading market position, and our ability to continue executing on our plan."

2023 Financial Results

Full year 2023 Net Income (Loss) was ($182) million, including $1.1 billion of impairments in 2023 primarily related to the Company's continued exit from coal-fired generation. This represents an improvement of $323 million compared to full year 2022, primarily due to favorable contributions at the Utilities, New Energy Technologies, and Renewables Strategic Business Units (SBU), partially offset by lower contributions from LNG transactions as compared to 2022 at the Energy Infrastructure SBU.

Full year 2023 Adjusted EBITDA4 (a non-GAAP financial measure) was $2,812 million, a decrease of $119 million compared to full year 2022, primarily driven by lower contributions from the Energy Infrastructure SBU, partially offset by contributions from new renewables projects and the 2023 recovery of AES Ohio purchased power costs recognized in 2022.
During full year 2023, the Company realized Tax Attributes5 of $611 million, an increase of $344 million compared to full year 2022.

Full year 2023 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was $0.34, an increase of $1.16 compared to full year 2022, primarily reflecting lower goodwill impairments in 2023, higher contributions from renewables projects placed into service, gain on sale of shares in Fluence in 2023, and higher contributions at the Utilities SBU due to the 2023 recovery of AES Ohio purchased power costs recognized in 2022. These positive drivers were partially offset by lower contributions from LNG transactions versus 2022, and higher unrealized foreign currency losses at the Energy Infrastructure SBU.

4     Adjusted EBITDA is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income (Loss) for the quarter and twelve months ended December 31, 2023. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.
5     Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties.


Full year 2023 Adjusted Earnings Per Share6 (Adjusted EPS, a non-GAAP financial measure) was $1.76, an increase of $0.09 compared to full year 2022, primarily driven by contributions from new renewables projects and the 2023 recovery of AES Ohio purchased power costs recognized in 2022, partially offset by lower contributions from the Energy Infrastructure SBU and higher Parent Company interest.

Strategic Accomplishments
•As of today, the Company’s backlog, which consists of projects with signed contracts, but which are not yet operational, is 12.3 GW, including 5.1 GW under construction.
•In 2023, the Company completed the construction of 3.5 GW of solar, wind and energy storage.
•In 2023, the Company signed 5.6 GW of long-term contracts for new renewables.
•AES Indiana reached a unanimous settlement agreement for its first rate case since 2018, and expects to receive approval from the Indiana Utility Regulatory Commission (IURC) by the middle of 2024.
•AES Ohio received approval from the Public Utilities Commission of Ohio (PUCO) for its Electric Security Plan (ESP4), providing the regulatory foundation necessary to enable future investments.
•Exited, or announced the sale or closure of, 2.1 GW of coal generation in Vietnam, the United States and Chile.
•Signed agreements for three-year extensions of 1.4 GW of gas generation at the Southland legacy units in Southern California. These extensions will help meet the State of California's grid reliability needs while supporting its decarbonization goals.
•Awarded up to $2.4 billion of grant funding by the US Department of Energy for two green hydrogen hubs with AES participation.
•Secured $1.1 billion in asset sale proceeds, to accelerate portfolio transformation, outpacing target of $400 to $600 million.


Guidance and Expectations7,8

The Company is raising its expectation for annualized growth in Adjusted EBITDA7 to 5% to 7% from 3% to 5% through 2027, from a base of its 2023 guidance of $2,600 to $2,900 million.

The Company is initiating 2024 guidance for Adjusted EBITDA7 of $2,600 to $2,900 million. Results are expected to be driven by the impacts from significant asset sales closed in 2023 and expected to close in
6     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 quarter and twelve months ended December 31, 2023. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.
7     Adjusted EBITDA is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income (Loss) for the quarter and twelve months ended December 31, 2023. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.
8     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 quarter and twelve months ended December 31, 2023. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.


2024, as well as prior year margins earned on LNG transactions, partially offset by contributions from new renewables projects, improved margins in Chile, and rate base growth at US utilities.

The Company is reaffirming its annualized growth target for Adjusted EPS9 of 7% to 9% through 2025, from a base of 2020. The Company is also raising its annualized growth target for Adjusted EPS7 to 7% to 9% from 6% to 8% through 2027, from a base of its 2023 guidance of $1.65 to $1.75.

The Company is initiating 2024 guidance for Adjusted EPS9 of $1.87 to $1.97. Growth in 2024 is expected to be primarily driven by new renewables commissionings, rate base growth at US utilities, and improved margins in Chile, but partially offset by asset sales and prior year margins on LNG transactions.

The Company's 2024 guidance is based on foreign currency and commodity forward curves as of December 31, 2023.

The Company expects to grow its dividend by 2% to 3% annually after 2024, reflecting a larger pool of attractive investment opportunities and to minimize equity issuance as a source of capital.

Non-GAAP Financial Measures

See Non-GAAP Measures for definitions of Adjusted EBITDA, Adjusted EBITDA with Tax Attributes, Tax Attributes, 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 Tuesday, February 27, 2024 at 10:00 a.m. Eastern Time (ET). Interested parties may listen to the teleconference by dialing 1-833-470-1428 at least ten minutes before the start of the call. International callers should dial +1-404-975-4839. The Participant Access Code for this call is 958499. 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.”

9     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 quarter and twelve months ended December 31, 2023. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.


A webcast replay 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 energy 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 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’ 2023 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 where required by law.

Any Stockholder who desires a copy of the Company’s 2023 Annual Report on Form 10-K filed February 26, 2024 with the SEC may obtain a copy (excluding the exhibits thereto) 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 Annual Report on 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,
202320222021
(in millions, except per share amounts)
Revenue:
Non-Regulated$9,245 $9,079 $8,273 
Regulated3,423 3,538 2,868 
Total revenue12,668 12,617 11,141 
Cost of Sales:
Non-Regulated(7,173)(6,907)(5,982)
Regulated(2,991)(3,162)(2,448)
Total cost of sales(10,164)(10,069)(8,430)
Operating margin2,504 2,548 2,711 
General and administrative expenses(255)(207)(166)
Interest expense(1,319)(1,117)(911)
Interest income551 389 298 
Loss on extinguishment of debt(63)(15)(78)
Other expense(99)(68)(60)
Other income89 102 410 
Gain (loss) on disposal and sale of business interests134 (9)(1,683)
Goodwill impairment expense(12)(777)— 
Asset impairment expense(1,067)(763)(1,575)
Foreign currency transaction losses(359)(77)(10)
Other non-operating expense— (175)— 
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES104 (169)(1,064)
Income tax benefit (expense)(261)(265)133 
Net equity in losses of affiliates(32)(71)(24)
LOSS FROM CONTINUING OPERATIONS(189)(505)(955)
Gain from disposal of discontinued businesses, net of income tax benefit (expense) of $7, $0, and $-1, respectively7 — 4 
NET LOSS(182)(505)(951)
Less: Net loss (income) attributable to noncontrolling interests and redeemable stock of subsidiaries431 (41)542 
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION$249 $(546)$(409)
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:
Income (loss) from continuing operations, net of tax$242 $(546)$(413)
Income from discontinued operations, net of tax7 — 4 
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION$249 $(546)$(409)
BASIC EARNINGS PER SHARE:
Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax$0.36 $(0.82)$(0.62)
Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax0.01 — 0.01 
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS$0.37 $(0.82)$(0.61)
DILUTED EARNINGS PER SHARE:
Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax$0.34 $(0.82)$(0.62)
Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax0.01 — 0.01 
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS$0.35 $(0.82)$(0.61)






THE AES CORPORATION
Consolidated Statements of Operations (Unaudited)
Three Months Ended December 31,
20232022
(in millions, except per share amounts)
Revenue:
Non-Regulated$2,194 $2,135 
Regulated774 925 
Total revenue2,968 3,060 
Cost of Sales:
Non-Regulated(1,781)(1,670)
Regulated(693)(827)
Total cost of sales(2,474)(2,497)
Operating margin494 563 
General and administrative expenses(64)(58)
Interest expense(353)(304)
Interest income153 119 
Loss on extinguishment of debt(62)(7)
Other expense(61)(17)
Other income53 22 
Loss on disposal and sale of business interests138 (9)
Goodwill impairment expense(12)(777)
Asset impairment expense(715)(230)
Foreign currency transaction losses(150)(17)
Other non-operating expense— (175)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES(579)(890)
Income tax benefit (expense)(82)(79)
Net equity in losses of affiliates11 (17)
LOSS FROM CONTINUING OPERATIONS(650)(986)
Gain (loss) from disposal and impairments of discontinued businesses
7 — 
NET LOSS(643)(986)
Less: Net loss (income) attributable to noncontrolling interests and redeemable stock of subsidiaries549 83 
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION$(94)$(903)
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:
BASIC EARNINGS PER SHARE:
Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax$(0.15)$(1.35)
Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax
0.01 — 
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS$(0.14)$(1.35)
DILUTED EARNINGS PER SHARE:
Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax$(0.15)$(1.35)
Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax
0.01 — 
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS$(0.14)$(1.35)
DILUTED SHARES OUTSTANDING670668








THE AES CORPORATION
Strategic Business Unit (SBU) Information
(Unaudited)
Three Months Ended December 31,
Year Ended
December 31,
(in millions)
2023202220232022
REVENUE
Renewables SBU$595 $486 $2,339 $1,893 
Utilities SBU792 943 3,495 3,617 
Energy Infrastructure SBU1,597 1,651 6,836 7,204 
New Energy Technologies SBU1 1 76 3 
Corporate and Other42 35 138 116 
Eliminations(59)(56)(216)(216)
Total Revenue
$2,968 $3,060 $12,668 $12,617 



THE AES CORPORATION
Consolidated Balance Sheets
December 31, 2023December 31, 2022
(in millions, except share and per share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents$1,426 $1,374 
Restricted cash370 536 
Short-term investments395 730 
Accounts receivable, net of allowance of $15 and $5, respectively1,420 1,799 
Inventory712 1,055 
Prepaid expenses177 98 
Other current assets, net of allowance of $14 and $2, respectively1,387 1,533 
Current held-for-sale assets762 518 
Total current assets6,649 7,643 
NONCURRENT ASSETS
Property, Plant and Equipment:
Land522 470 
Electric generation, distribution assets and other30,190 26,599 
Accumulated depreciation(8,602)(8,651)
Construction in progress7,848 4,621 
Property, plant and equipment, net29,958 23,039 
Other Assets:
Investments in and advances to affiliates941 952 
Debt service reserves and other deposits194 177 
Goodwill348 362 
Other intangible assets, net of accumulated amortization of $498 and $434, respectively2,243 1,841 
Deferred income taxes396 319 
Other noncurrent assets, net of allowance of $9 and $77, respectively3,259 4,030 
Noncurrent held-for-sale assets811 — 
Total other assets8,192 7,681 
TOTAL ASSETS$44,799 $38,363 
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable$2,199 $1,730 
Accrued interest315 249 
Accrued non-income taxes278 249 
Supplier financing arrangements
974 662 
Accrued and other liabilities1,334 1,489 
Recourse debt200 — 
Non-recourse debt, including $1080 and $416, respectively, related to variable interest entities3,932 1,758 
Current held-for-sale liabilities499 354 
Total current liabilities9,731 6,491 
NONCURRENT LIABILITIES
Recourse debt4,264 3,894 
Non-recourse debt, including $1,715 and $2,295, respectively, related to variable interest entities18,482 17,846 
Deferred income taxes1,245 1,139 
Other noncurrent liabilities3,114 3,168 
Noncurrent held-for-sale liabilities514 — 
Total noncurrent liabilities27,619 26,047 
Redeemable stock of subsidiaries1,464 1,321 
EQUITY
THE AES CORPORATION STOCKHOLDERS’ EQUITY
Preferred stock (without par value, 50,000,000 shares authorized; 1,043,050 issued and outstanding at December 31, 2023 and December 31, 2022)838 838 
Common stock ($0.01 par value, 1,200,000,000 shares authorized; 819,051,591 issued and 669,693,234 outstanding at December 31, 2023 and 818,790,001 issued and 668,743,464 outstanding at December 31, 2022)8 8 
Additional paid-in capital6,355 6,688 
Accumulated deficit(1,386)(1,635)
Accumulated other comprehensive loss(1,514)(1,640)
Treasury stock, at cost (149,358,357 and 150,046,537 shares, respectively)(1,813)(1,822)
Total AES Corporation stockholders’ equity2,488 2,437 
NONCONTROLLING INTERESTS3,497 2,067 
Total equity5,985 4,504 
TOTAL LIABILITIES AND EQUITY$44,799 $38,363 


THE AES CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended December 31,
Year Ended
December 31,
2023202220232022
OPERATING ACTIVITIES:
(in millions)
(in millions)
Net loss$(643)$(986)$(182)$(505)
Adjustments to net loss:
Depreciation and amortization292 253 1,128 1,053 
Emissions allowance expense53 106 264 425 
Loss (gain) on realized/unrealized derivatives64 63 143 127 
Gain on remeasurement to acquisition date fair value— (5)— (5)
Loss (gain) on disposal and sale of business interests(138)9 (134)9 
Impairment expense721 1,182 1,079 1,715 
Loss on realized/unrealized foreign currency147 13 331 58 
Deferred income taxes48 4 (54)4 
Other31 110 149 123 
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable145 (123)161 (532)
(Increase) decrease in inventory53 (56)306 (417)
(Increase) decrease in prepaid expenses and other current assets(38)76 38 (40)
(Increase) decrease in other assets9 182 5 433 
Increase (decrease) in accounts payable and other current liabilities55 362 (132)470 
Increase (decrease) in income tax payables, net and other tax payables(42)80 (109)(51)
Increase (decrease) in deferred income(52)(15)(2)33 
Increase (decrease) in other liabilities20 (189)43 (185)
Net cash provided by operating activities725 1,066 3,034 2,715 
INVESTING ACTIVITIES:
Capital expenditures(2,429)(1,840)(7,724)(4,551)
Acquisitions of business interests, net of cash and restricted cash acquired(231)(129)(542)(243)
Proceeds from the sale of business interests, net of cash and restricted cash sold156 — 254 1 
Sale of short-term investments316 395 1,318 1,049 
Purchase of short-term investments(173)(401)(937)(1,492)
Contributions and loans to equity affiliates(31)(30)(178)(232)
Affiliate repayments and returns of capital5 78 5 149 
Purchase of emissions allowances(107)(73)(268)(488)
Other investing(21)(11)(116)(29)
Net cash used in investing activities(2,515)(2,011)(8,188)(5,836)
FINANCING ACTIVITIES:
Borrowings under the revolving credit facilities3,164 1,210 7,103 5,424 
Repayments under the revolving credit facilities(3,555)(1,905)(6,285)(4,687)
Commercial paper borrowings (repayments), net(604)— — — 
Issuance of recourse debt— — 1,400 200 
Repayments of recourse debt(500)— (500)(29)
Issuance of non-recourse debt2,737 2,234 4,521 5,788 
Repayments of non-recourse debt(1,233)(1,372)(2,495)(3,144)
Payments for financing fees(66)(37)(142)(120)
Purchases under supplier financing arrangements551 743 1,858 1,042 
Repayments of obligations under supplier financing arrangements(392)(198)(1,491)(432)
Distributions to noncontrolling interests(150)(136)(323)(265)
Acquisitions of noncontrolling interests(115)(61)(127)(602)
Contributions from noncontrolling interests39 111 102 233 
Sales to noncontrolling interests1,567 406 1,938 742 
Issuance of preferred shares in subsidiaries418 — 421 60 
Dividends paid on AES common stock(111)(106)(444)(422)
Payments for financed capital expenditures(2)(10)(10)(33)
Other financing(83)16 (121)3 
Net cash provided by financing activities1,665 895 5,405 3,758 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(162)(12)(270)(56)
(Increase) decrease in cash, cash equivalents and restricted cash of held-for-sale businesses(58)115 (78)22 
Total increase (decrease) in cash, cash equivalents and restricted cash(345)53 (97)603 
Cash, cash equivalents and restricted cash, beginning2,335 2,034 2,087 1,484 
Cash, cash equivalents and restricted cash, ending$1,990 $2,087 $1,990 $2,087 
SUPPLEMENTAL DISCLOSURES:
Cash payments for interest, net of amounts capitalized$582 $274 $1,317 $928 
Cash payments for income taxes, net of refunds34 68 301 271 
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Initial recognition of contingent consideration for acquisitions (see Note 25)24 9 239 24 
Noncash recognition of new operating and financing leases (see Note 14)38 5 225 134 
Dividends declared but not yet paid116 111 116 111 
Noncash contributions from noncontrolling interests— — 60 — 
Noncash contributions to equity affiliates from transfers of tax credits52 — 52 — 



THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED PRE-TAX CONTRIBUTION (PTC) AND ADJUSTED EPS
EBITDA is defined as earnings before interest income and expense, taxes, depreciation, and amortization. We define Adjusted EBITDA as EBITDA adjusted for the impact of NCI and interest, taxes, depreciation, and amortization of our equity affiliates, adding back interest income recognized under service concession arrangements, and excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence. Adjusted EBITDA with Tax Attributes is defined as Adjusted EBITDA, adding back the pre-tax effect of Production Tax Credits (“PTCs”), Investment Tax Credits (“ITCs”), and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties.
The GAAP measure most comparable to EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes is Net income. We believe that EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes better reflect the underlying business performance of the Company. Adjusted EBITDA is the most relevant measure considered in the Company’s internal evaluation of the financial performance of its segments. Factors in this determination include the variability due to unrealized gains or losses related to derivative transactions or equity securities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests or retire debt, the non-recurring nature of the impact of the early contract terminations at Angamos, and the variability of allocations of earnings to tax equity investors, which affect results in a given period or periods. In addition, each of these metrics represent the business performance of the Company before the application of statutory income tax rates and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. Given its large number of businesses and overall complexity, the Company concluded that Adjusted EBITDA is a more transparent measure than Net income that better assists investors in determining which businesses have the greatest impact on the Company’s results.
EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes should not be construed as alternatives to Net income, which is determined in accordance with GAAP.
Three Months Ended December 31,Twelve Months Ended December 31,
Reconciliation of Adjusted EBITDA (in millions)2023202220232022
Net loss
$(643)$(986)$(182)$(505)
Income tax expense
82 79 261 265 
Interest expense353 304 1,319 1,117 
Interest income(153)(119)(551)(389)
Depreciation and amortization292 253 1,128 1,053 
EBITDA$(69)$(469)$1,975 $1,541 
Less: Income from discontinued operations(7)— (7)— 
Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1)
(44)(218)(552)(704)
Less: Income tax expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates37 33 130 126 
Interest income recognized under service concession arrangements17 19 71 77 
Unrealized derivative and equity securities losses
31 131 34 131 
Unrealized foreign currency losses140 19 301 42 
Disposition/acquisition losses (gains)
(100)4 (79)40 
Impairment losses559 1,161 877 1,658 
Loss on extinguishment of debt61 13 62 20 
Adjusted EBITDA (1)
$625 $693 $2,812 $2,931 
Tax attributes542 158 611 267 
Adjusted EBITDA with Tax Attributes (2)
$1,167 $851 $3,423 $3,198 
_____________________________
(1)The allocation of earnings to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA.
(2)         Adjusted EBITDA with Tax Attributes includes the impact of the share of the ITCs, PTCs, and depreciation deductions allocated to tax equity investors under the HLBV accounting method and recognized as Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries on the Condensed Consolidated Statements of Operations. It also includes the tax benefit recorded from tax credits retained or transferred directly to third parties. The tax attributes are related to the Renewables and Utilities SBUs.
Adjusted PTC, a non-GAAP measure, is defined by the Company as pre-tax income from continuing operations attributable to The AES Corporation excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities.
Adjusted EPS, a non-GAAP measure, is defined by the Company 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,

THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED PRE-TAX CONTRIBUTION (PTC) AND ADJUSTED EPS
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; and (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence.
The 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, and for Adjusted EPS, the one-time impact of the 2017 U.S. tax law reform and subsequent period adjustments related to enactment effects, 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.
Reconciliation of GAAP to Non-GAAP Diluted Loss per ShareThree Months Ended December 31,Twelve Months Ended December 31,
20222022
GAAP DILUTED LOSS PER SHARE$(1.35)$(0.82)
EFFECT OF DILUTIVE SECURITIES
Restricted stock units— — 
Equity units0.08 0.05 
NON-GAAP DILUTED LOSS PER SHARE$(1.27)$(0.77)
Three Months Ended December 31, 2023Three Months Ended December 31, 2022Twelve Months Ended December 31, 2023Twelve Months Ended December 31, 2022
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$(101)$(0.14)$(903)$(1.27)$242 $0.34 $(546)$(0.77)
Income tax expense from continuing operations attributable to AES
70 61 206 210 
Pre-tax contribution$(31)$(842)$448 $(336)
Adjustments
Unrealized derivative and equity securities losses
$38 $0.05 (2)$130 $0.18 (3)$41 $0.06 (4)$128 $0.18 (5)
Unrealized foreign currency losses141 0.20 (6)19 0.03 (7)301 0.42 (8)42 0.07 (9)
Disposition/acquisition losses (gains)
(100)(0.14)(10)4 0.01 (79)(0.11)(11)40 0.06 (12)
Impairment losses559 0.78 (13)1,161 1.63 (14)877 1.23 (15)1,658 2.33 (16)
Loss on extinguishment of debt63 0.09 (17)15 0.02 (18)70 0.10 (19)35 0.05 (20)
Less: Net income tax benefit(0.11)(21)(0.11)(22)(0.28)(23)(0.25)(24)
Adjusted PTC and Adjusted EPS$670 $0.73 $487 $0.49 $1,658 $1.76 $1,567 $1.67 
_____________________________


THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED PRE-TAX CONTRIBUTION (PTC) AND ADJUSTED EPS
(1)NCI is defined as Noncontrolling Interests.
(2)Amount primarily relates to unrealized derivative losses at the Energy Infrastructure SBU of $24 million, or $0.03 per share and unrealized derivative losses at the Parent Company of $15 million, or $0.02 per share.
(3)Amount primarily relates to unrealized losses on power swaps at Southland Energy of $97 million, or $0.14 per share.
(4)Amount primarily relates to unrealized derivative losses due to the termination of a PPA of $72 million, or $0.10 per share and net unrealized derivative losses at AES Clean Energy of $20 million, or $0.03 per share, offset by net unrealized derivative gains at the Energy Infrastructure SBU of $46 million, or $0.06 per share.
(5)Amount primarily relates to unrealized losses on power swaps at Southland Energy of $109 million, or $0.15 per share.
(6)Amount primarily relates to unrealized foreign currency losses in Argentina of $158 million, or $0.22 per share, partially offset by unrealized foreign currency gains at AES Andes of $30 million, or $0.04 per share.
(7)Amount primarily relates to unrealized foreign currency losses in Argentina of $20 million, or $0.03 per share, mainly associated with the devaluation of long-term receivables denominated in Argentine pesos.
(8)Amount primarily relates to unrealized foreign currency losses in Argentina of $262 million, or $0.37 per share, mainly associated with the devaluation of long-term receivables denominated in Argentine pesos, and unrealized foreign currency losses at AES Andes of $25 million, or $0.03 per share.
(9)Amount primarily relates to unrealized foreign currency losses in Argentina of $39 million, or $0.05 per share, mainly associated with the devaluation of long-term receivables denominated in Argentine pesos.
(10)Amount primarily relates to the gain on sale of Fluence shares of $136 million, or $0.19 per share; partially offset by costs due to the early plant closures at Norgener and Ventanas 2 at AES Andes of $30 million, or $0.04 per share and at Warrior Run of $6 million, or $0.01 per share, and day-one losses on commencement of sales-type leases at AES Renewable Holdings of $19 million, or $0.03 per share.
(11)Amount primarily relates to the gain on sale of Fluence shares of $136 million, or $0.19 per share, partially offset by costs due to early plant closure at the Ventanas 2 and Norgener coal-fired plants in Chile of $37 million, or $0.05 per share and at Warrior Run of $6 million, or $0.01 per share, and day-one losses recognized at commencement of sales-type leases at AES Renewable Holdings of $20 million, or $0.03 per share.
(12)Amount primarily relates to costs on disposition of AES Gilbert, including the recognition of an allowance on the sales-type lease receivable, of $13 million, or $0.02 per share, and a day-one loss recognized at commencement of a sales-type lease at AES Waikoloa Solar of $5 million, or $0.01 per share.
(13)Amount primarily relates to asset impairments at Warrior Run of $198 million, or $0.28 per share, at New York Wind of $139 million, or $0.20 per share, at AES Clean Energy development projects of $103 million, or $0.14 per share, at Mong Duong of $88 million, or $0.12 per share, and a goodwill impairment at TEG TEP reporting unit of $12 million, or $0.02 per share.
(14)Amount primarily relates to goodwill impairments at AES Andes of $644 million, or $0.91 per share, and at AES El Salvador of $133 million, or $0.19 per share, other-than-temporary impairment at sPower of $175 million, or $0.25, as well as long-lived asset impairment at TEG TEP of $191 million, or $0.27 per share.
(15)Amount primarily relates to asset impairments at Warrior Run of $198 million, or $0.28 per share, at New York Wind of $139 million, or $0.20 per share, the Norgener coal-fired plant in Chile of $136 million, or $0.19 per share, at TEG and TEP of $76 million and $58 million, respectively, or $0.19 per share, AES Clean Energy development projects of $114 million, or $0.16 per share, at Mong Duong of $88 million, or $0.12 per share, at Jordan of $21 million, or $0.03 per share, and at the GAF Projects at AES Renewable Holdings of $18 million, or $0.03 per share, and a goodwill impairment at the TEG TEP reporting unit of $12 million, or $0.02 per share.
(16)Amount primarily relates to goodwill impairments at AES Andes of $644 million, or $0.91 per share, and at AES El Salvador of $133 million, or $0.19 per share, other-than-temporary impairment at sPower of $175 million, or $0.25, as well as long-lived asset impairments at Maritza of $468 million, or $0.66 per share, at TEG TEP of $191 million, or $0.27 per share, and in Jordan of $28 million, or $0.04 per share.
(17)Amount primarily relates to losses incurred at AES Andes due to early retirement of debt of $46 million, or $0.07 per share, and a loss on early retirement of debt at AES Hispanola Holdings BV of $9 million, or $0.01 per share.
(18)Amount primarily relates to losses on early retirement of debt due to refinancing at AES Renewable Holdings of $12 million, or $0.02 per share.
(19)Amount primarily relates to losses incurred at AES Andes due to early retirement of debt of $46 million, or $0.07 per share, and loss on early retirement of debt at AES Hispanola Holdings BV of $10 million, or $0.01 per share.
(20)Amount primarily relates to losses on early retirement of debt due to refinancing at AES Renewable Holdings of $12 million, or $0.02 per share, at AES Clean Energy of $5 million, or $0.01 per share, at Mong Duong of $4 million, or $0.01 per share, and at TEG TEP of $4 million, or $0.01 per share.
(21)Amount primarily relates to income tax benefits associated with the asset impairments at Warrior Run of $46 million, or $0.06 per share, at New York Wind of $32 million, or $0.05 per share, and at AES Clean Energy development projects of $23 million, or $0.03 per share; and income tax benefits associated with losses incurred at AES Andes due to early retirement of debt of $13 million, or $0.02 per share; partially offset by income tax expense associated with the gain on sale of Fluence shares of $31 million, or $0.04 per share.
(22)Amount primarily relates to income tax benefits associated with the impairments at TEG TEP of $57 million, or $0.09 per share, and the income tax benefits associated with the other-than-temporary impairment at sPower of $39 million, or $0.06 per share.
(23)Amount primarily relates to income tax benefits associated with the asset impairments at Warrior Run of $46 million, or $0.06 per share, at the Norgener coal-fired plant in Chile of $37 million, or $0.05 per share, at New York Wind of $32 million, or $0.05 per share, at TEG and TEP of $27 million, or $0.04 per share, and at AES Clean Energy development projects of $26 million, or $0.04 per share; income tax benefits associated with the recognition of unrealized losses due to the termination of a PPA of $17 million, or $0.02 per share; and income tax benefits associated with losses incurred at AES Andes due to early retirement of debt of $13 million, or $0.02 per share; partially offset by income tax expense associated with the gain on sale of Fluence shares of $31 million, or $0.04 per share.
(24)Amount primarily relates to income tax benefits associated with the impairment at Maritza of $48 million, or $0.07 per share, income tax benefits associated with the other-than-temporary impairment at sPower of $39 million, or $0.06 per share, income tax benefits associated with the impairment at TEG TEP of $34 million, or $0.05 per share, and income tax benefits associated with unrealized losses on power swaps at Southland Energy of $24 million, or $0.03 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 ParentDecember 31, 2023September 30, 2023June 30, 2023March 31, 2023
ActualActualActualActual
Subsidiary distributions1 to Parent & QHCs
$1,408 $1,625 $1,383 $1,489 
Returns of capital distributions to Parent & QHCs194 116 56 56 
Total subsidiary distributions & returns of capital to Parent$1,602 $1,741 $1,439 $1,545 
Parent only data: quarterly
(in millions)Quarter Ended
Total subsidiary distributions & returns of capital to ParentDecember 31, 2023September 30, 2023June 30, 2023March 31, 2023
ActualActualActualActual
Subsidiary distributions1 to Parent & QHCs
$536 $311 $205 $356 
Returns of capital distributions to Parent & QHCs78 60 — 56 
Total subsidiary distributions & returns of capital to Parent$614 $371 $205 $412 
(in millions)
Balance at
December 31, 2023September 30, 2023June 30, 2023March 31, 2023
Parent Company Liquidity2
ActualActualActualActual
Cash at Parent & Cash at QHCs3
$33 $51 $35 $117 
Availability under credit facilities
1,376 857 883 970 
Ending liquidity$1,409 $908 $918 $1,087 

____________________________

(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.

v3.24.0.1
Cover Document
Feb. 26, 2024
Entity Information [Line Items]  
Entity Central Index Key 0000874761
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, par value $0.01 per share
Pre-commencement Issuer Tender Offer false
Pre-commencement Tender Offer false
Soliciting Material false
City Area Code 703
Local Phone Number 522-1315
Written Communications false
Entity Incorporation, State or Country Code DE
Document Type 8-K
Document Period End Date Feb. 26, 2024
Entity Registrant Name THE AES CORPORATION
Entity Address, Address Line One 4300 Wilson Boulevard
Entity File Number 001-12291
Entity Tax Identification Number 54-1163725
Entity Address, City or Town Arlington
Entity Address, State or Province VA
Entity Address, Postal Zip Code 22203
Trading Symbol AES
Entity Listing, Description NYSE
Amendment Flag false
AES (NYSE:AES)
Historical Stock Chart
Von Mär 2024 bis Apr 2024 Click Here for more AES Charts.
AES (NYSE:AES)
Historical Stock Chart
Von Apr 2023 bis Apr 2024 Click Here for more AES Charts.