AES AES Corp

_________________________

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.

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.

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.

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.

THE AES CORPORATION

Consolidated Statements of Operations

Year Ended December 31,

2023

2022

2021

(in millions, except per share amounts)

Revenue:

Non-Regulated

$         9,245

$         9,079

$         8,273

Regulated

3,423

3,538

2,868

Total revenue

12,668

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 margin

2,504

2,548

2,711

General and administrative expenses

(255)

(207)

(166)

Interest expense

(1,319)

(1,117)

(911)

Interest income

551

389

298

Loss on extinguishment of debt

(63)

(15)

(78)

Other expense

(99)

(68)

(60)

Other income

89

102

410

Gain (loss) on disposal and sale of business interests

134

(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 AFFILIATES

104

(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, respectively

7

—

4

NET LOSS

(182)

(505)

(951)

Less: Net loss (income) attributable to noncontrolling interests and redeemable stock of subsidiaries

431

(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 tax

7

—

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 tax

0.01

—

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 tax

0.01

—

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,

2023

2022

(in millions, except per share amounts)

Revenue:

Non-Regulated

$                     2,194

$                     2,135

Regulated

774

925

Total revenue

2,968

3,060

Cost of Sales:

Non-Regulated

(1,781)

(1,670)

Regulated

(693)

(827)

Total cost of sales

(2,474)

(2,497)

Operating margin

494

563

General and administrative expenses

(64)

(58)

Interest expense

(353)

(304)

Interest income

153

119

Loss on extinguishment of debt

(62)

(7)

Other expense

(61)

(17)

Other income

53

22

Loss on disposal and sale of business interests

138

(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 affiliates

11

(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 subsidiaries

549

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 OUTSTANDING

670

668

THE AES CORPORATION

Strategic Business Unit (SBU) Information

(Unaudited)

Three Months Ended
December 31,

Year Ended
December 31,

(in millions)

2023

2022

2023

2022

REVENUE

Renewables SBU

$              595

$              486

$           2,339

$           1,893

Utilities SBU

792

943

3,495

3,617

Energy Infrastructure SBU

1,597

1,651

6,836

7,204

New Energy Technologies SBU

1

1

76

3

Corporate and Other

42

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, 2023

December 31, 2022

(in millions, except share and per share data)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$               1,426

$               1,374

Restricted cash

370

536

Short-term investments

395

730

Accounts receivable, net of allowance of $15 and $5, respectively

1,420

1,799

Inventory

712

1,055

Prepaid expenses

177

98

Other current assets, net of allowance of $0 and $2, respectively

1,387

1,533

Current held-for-sale assets

762

518

Total current assets

6,649

7,643

NONCURRENT ASSETS

Property, Plant and Equipment:

Land

522

470

Electric generation, distribution assets and other

30,190

26,599

Accumulated depreciation

(8,602)

(8,651)

Construction in progress

7,848

4,621

Property, plant and equipment, net

29,958

23,039

Other Assets:

Investments in and advances to affiliates

941

952

Debt service reserves and other deposits

194

177

Goodwill

348

362

Other intangible assets, net of accumulated amortization of $498 and $434, respectively

2,243

1,841

Deferred income taxes

396

319

Other noncurrent assets, net of allowance of $9 and $77, respectively

3,259

4,030

Noncurrent held-for-sale assets

811

—

Total other assets

8,192

7,681

TOTAL ASSETS

$             44,799

$             38,363

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts payable

$               2,199

$               1,730

Accrued interest

315

249

Accrued non-income taxes

278

249

Supplier financing arrangements

974

662

Accrued and other liabilities

1,334

1,489

Recourse debt

200

—

Non-recourse debt, including $1080 and $416, respectively, related to variable interest entities

3,932

1,758

Current held-for-sale liabilities

499

354

Total current liabilities

9,731

6,491

NONCURRENT LIABILITIES

Recourse debt

4,264

3,894

Non-recourse debt, including $1,715 and $2,295, respectively, related to variable interest entities

18,482

17,846

Deferred income taxes

1,245

1,139

Other noncurrent liabilities

3,114

3,168

Noncurrent held-for-sale liabilities

514

—

Total noncurrent liabilities

27,619

26,047

Redeemable stock of subsidiaries

1,464

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 capital

6,355

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' equity

2,488

2,437

NONCONTROLLING INTERESTS

3,497

2,067

Total equity

5,985

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,

2023

2022

2023

2022

OPERATING ACTIVITIES:

(in millions)

(in millions)

Net loss

$       (643)

$       (986)

$       (182)

$       (505)

Adjustments to net loss:

Depreciation and amortization

292

253

1,128

1,053

Emissions allowance expense

53

106

264

425

Loss (gain) on realized/unrealized derivatives

64

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 expense

721

1,182

1,079

1,715

Loss on realized/unrealized foreign currency

147

13

331

58

Deferred income taxes

48

4

(54)

4

Other

31

110

149

123

Changes in operating assets and liabilities:

(Increase) decrease in accounts receivable

145

(123)

161

(532)

(Increase) decrease in inventory

53

(56)

306

(417)

(Increase) decrease in prepaid expenses and other current assets

(38)

76

38

(40)

(Increase) decrease in other assets

9

182

5

433

Increase (decrease) in accounts payable and other current liabilities

55

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 liabilities

20

(189)

43

(185)

Net cash provided by operating activities

725

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 sold

156

—

254

1

Sale of short-term investments

316

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 capital

5

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 facilities

3,164

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 debt

2,737

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 arrangements

551

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 interests

39

111

102

233

Sales to noncontrolling interests

1,567

406

1,938

742

Issuance of preferred shares in subsidiaries

418

—

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 activities

1,665

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, beginning

2,335

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 refunds

34

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 paid

116

111

116

111

Noncash contributions from noncontrolling interests

—

—

60

—

Noncash contributions to equity affiliates from transfers of tax credits

52

—

52

—

Three Months Ended December 31,

Twelve Months Ended December 31,

Reconciliation of Adjusted EBITDA (in millions)

2023

2022

2023

2022

Net loss

$               (643)

$               (986)

$               (182)

$               (505)

Income tax expense

82

79

261

265

Interest expense

353

304

1,319

1,117

Interest income

(153)

(119)

(551)

(389)

Depreciation and amortization

292

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 affiliates

37

33

130

126

Interest income recognized under service concession arrangements

17

19

71

77

Unrealized derivative and equity securities losses

31

131

34

131

Unrealized foreign currency losses

140

19

301

42

Disposition/acquisition losses (gains)

(100)

4

(79)

40

Impairment losses

559

1,161

877

1,658

Loss on extinguishment of debt

61

13

62

20

Adjusted EBITDA ⁽¹⁾

$                 625

$                 693

$              2,812

$              2,931

Tax attributes

542

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.

Reconciliation of GAAP to Non-GAAP Diluted Loss per Share

Three Months Ended December 31,

Twelve Months Ended December 31,

2022

2022

GAAP DILUTED LOSS PER SHARE

$                                            (1.35)

$                                            (0.82)

EFFECT OF DILUTIVE SECURITIES

Restricted stock units

—

—

Equity units

0.08

0.05

NON-GAAP DILUTED LOSS PER SHARE

$                                            (1.27)

$                                            (0.77)

Three Months Ended
December 31, 2023

Three Months Ended
December 31, 2022

Twelve Months Ended
December 31, 2023

Twelve Months Ended
December 31, 2022

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 losses

141

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 losses

559

0.78

⁽¹³⁾

1,161

1.63

⁽¹⁴⁾

877

1.23

⁽¹⁵⁾

1,658

2.33

⁽¹⁶⁾

Loss on extinguishment of debt

63

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

_____________________________

⁽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 Parent

December 31, 2023

September 30, 2023

June 30, 2023

March 31, 2023

Actual

Actual

Actual

Actual

Subsidiary distributions¹ to Parent & QHCs

$             1,408

$             1,625

$             1,383

$            1,489

Returns of capital distributions to Parent & QHCs

194

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 Parent

December 31, 2023

September 30, 2023

June 30, 2023

March 31, 2023

Actual

Actual

Actual

Actual

Subsidiary distributions¹ to Parent & QHCs

$                536

$                311

$                205

$               356

Returns of capital distributions to Parent & QHCs

78

60

—

56

Total subsidiary distributions & returns of capital to Parent

$                614

$                371

$                205

$               412

(in millions)

Balance at

December 31, 2023

September 30, 2023

June 30, 2023

March 31, 2023

Parent Company Liquidity²

Actual

Actual

Actual

Actual

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.