AES AES Corp

¹

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, 2024.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.

²

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.

³

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, 2024.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.

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, 2024.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.

⁵

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, 2024.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.

⁶

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.

⁷

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, 2024.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.

⁸

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, 2024.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.

⁹

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.

¹⁰

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, 2024.  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,

2024

2023

2022

(in millions, except per share amounts)

Revenue:

Non-Regulated

$         8,756

$         9,245

$         9,079

Regulated

3,522

3,423

3,538

Total revenue

12,278

12,668

12,617

Cost of Sales:

Non-Regulated

(6,985)

(7,173)

(6,907)

Regulated

(2,979)

(2,991)

(3,162)

Total cost of sales

(9,964)

(10,164)

(10,069)

Operating margin

2,314

2,504

2,548

General and administrative expenses

(288)

(255)

(207)

Interest expense

(1,485)

(1,319)

(1,117)

Interest income

381

551

389

Loss on extinguishment of debt

(17)

(63)

(15)

Other expense

(175)

(99)

(68)

Other income

156

89

102

Gain (loss) on disposal and sale of business interests

(444)

134

(9)

Goodwill impairment expense

—

(12)

(777)

Asset impairment expense

(571)

(1,067)

(763)

Foreign currency transaction gains (losses)

31

(359)

(77)

Other non-operating expense

—

—

(175)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND
EQUITY IN EARNINGS OF AFFILIATES

790

104

(169)

Income tax expense

(59)

(261)

(265)

Net equity in losses of affiliates

(26)

(32)

(71)

INCOME (LOSS) FROM CONTINUING OPERATIONS

705

(189)

(505)

Gain (loss) from disposal of discontinued businesses, net of income tax benefit
(expense) of $(7), $7, and $0, respectively

(7)

7

—

NET INCOME (LOSS)

698

(182)

(505)

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

981

431

(41)

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION

$         1,679

$           249

$          (546)

AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS:

Income (loss) from continuing operations, net of tax

$         1,686

$           242

$          (546)

Income (loss) from discontinued operations, net of tax

(7)

7

—

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION

$         1,679

$           249

$          (546)

BASIC EARNINGS PER SHARE:

Income (loss) from continuing operations attributable to The AES Corporation
common stockholders, net of tax

$          2.39

$          0.36

$         (0.82)

Income (loss) 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

$          2.38

$          0.37

$         (0.82)

DILUTED EARNINGS PER SHARE:

Income (loss) from continuing operations attributable to The AES Corporation
common stockholders, net of tax

$          2.37

$          0.34

$         (0.82)

Income (loss) 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

$          2.36

$          0.35

$         (0.82)

THE AES CORPORATION

Consolidated Statements of Operations (Unaudited)

Three Months Ended December 31,

2024

2023

(in millions, except per share amounts)

Revenue:

Non-Regulated

$                     2,102

$                     2,194

Regulated

860

774

Total revenue

2,962

2,968

Cost of Sales:

Non-Regulated

(1,787)

(1,781)

Regulated

(755)

(693)

Total cost of sales

(2,542)

(2,474)

Operating margin

420

494

General and administrative expenses

(90)

(64)

Interest expense

(360)

(353)

Interest income

69

153

Loss on extinguishment of debt

(6)

(62)

Other expense

(22)

(61)

Other income

36

53

Gain on disposal and sale of business interests

401

138

Goodwill impairment expense

—

(12)

Asset impairment expense

(216)

(715)

Foreign currency transaction gains (losses)

29

(150)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND
EQUITY IN EARNINGS OF AFFILIATES

261

(579)

Income tax expense

(7)

(82)

Net equity in earnings (losses) of affiliates

(5)

11

INCOME (LOSS) FROM CONTINUING OPERATIONS

249

(650)

Gain from disposal and impairments of discontinued businesses

—

7

NET INCOME (LOSS)

249

(643)

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

311

549

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION

$                         560

$                        (94)

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

$                       0.79

$                     (0.15)

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

$                       0.79

$                     (0.14)

DILUTED EARNINGS PER SHARE:

Income (loss) from continuing operations attributable to The AES Corporation
common stockholders, net of tax

$                       0.79

$                     (0.15)

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

$                       0.79

$                     (0.14)

DILUTED SHARES OUTSTANDING

713

668

THE AES CORPORATION

Strategic Business Unit (SBU) Information

(Unaudited)

Three Months Ended
December 31,

Year Ended
December 31,

(in millions)

2024

2023

2024

2023

REVENUE

Renewables SBU

$              569

$              595

$           2,510

$           2,339

Utilities SBU

878

792

3,608

3,495

Energy Infrastructure SBU

1,532

1,597

6,238

6,836

New Energy Technologies SBU

—

1

1

76

Corporate and Other

56

42

162

138

Eliminations

(73)

(59)

(241)

(216)

Total Revenue

$           2,962

$           2,968

$         12,278

$         12,668

THE AES CORPORATION

Consolidated Balance Sheets 

December 31,
2024

December 31,
2023

(in millions, except share and per share data)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$               1,524

$               1,426

Restricted cash

437

370

Short-term investments

79

395

Accounts receivable, net of allowance of $52 and $15, respectively

1,646

1,420

Inventory

593

712

Prepaid expenses

157

177

Other current assets, net of allowance of $0 and $14, respectively

1,533

1,387

Current held-for-sale assets

862

762

Total current assets

6,831

6,649

NONCURRENT ASSETS

Property, plant and equipment, net of accumulated depreciation of $8,701 and $8,602,
respectively

33,166

29,958

Investments in and advances to affiliates

1,124

941

Debt service reserves and other deposits

78

194

Goodwill

345

348

Other intangible assets, net of accumulated amortization of $426 and $498, respectively

1,947

2,243

Deferred income taxes

365

396

Other noncurrent assets, net of allowance of $20 and $9, respectively

2,917

3,259

Noncurrent held-for-sale assets

633

811

Total noncurrent assets

7,409

8,192

TOTAL ASSETS

$             47,406

$             44,799

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts payable

$               1,654

$               2,199

Accrued interest

256

315

Accrued non-income taxes

249

278

Supplier financing arrangements

917

974

Accrued and other liabilities

1,246

1,334

Recourse debt

899

200

Non-recourse debt

2,688

3,932

Current held-for-sale liabilities

662

499

Total current liabilities

8,571

9,731

NONCURRENT LIABILITIES

Recourse debt

4,805

4,264

Non-recourse debt

20,626

18,482

Deferred income taxes

1,490

1,245

Other noncurrent liabilities

2,881

3,114

Noncurrent held-for-sale liabilities

391

514

Total noncurrent liabilities

30,193

27,619

Commitments and Contingencies

Redeemable stock of subsidiaries

938

1,464

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)

—

838

Common stock ($0.01 par value, 1,200,000,000 shares authorized; 859,709,987 issued
and 711,074,269 outstanding at December 31, 2024 and 819,051,591 issued and
669,693,234 outstanding at December 31, 2023)

9

8

Additional paid-in capital

5,913

6,355

Retained earnings (accumulated deficit)

293

(1,386)

Accumulated other comprehensive loss

(766)

(1,514)

Treasury stock, at cost (148,635,718 and 149,358,357 shares, respectively)

(1,805)

(1,813)

Total AES Corporation stockholders' equity

3,644

2,488

NONCONTROLLING INTERESTS

4,060

3,497

Total equity

7,704

5,985

TOTAL LIABILITIES, REDEEMABLE STOCK OF SUBSIDIARIES, AND EQUITY

$             47,406

$             44,799

THE AES CORPORATION

Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended
December 31,

Year Ended 
December 31,

2024

2023

2024

2023

OPERATING ACTIVITIES:

(in millions)

(in millions)

Net income (loss)

$         249

$         (643)

$           698

$         (182)

Adjustments to net income (loss):

Depreciation, amortization, and accretion of AROs

338

311

1,264

1,147

Emissions allowance expense

94

53

238

264

Loss (gain) on realized/unrealized derivatives

51

64

(143)

143

Loss (gain) on disposal and sale of business interests

(401)

(138)

(444)

(134)

Impairment expense

216

721

571

1,079

Loss on realized/unrealized foreign currency

16

147

108

331

Deferred income tax expense (benefit), net of tax credit transfer proceeds allocated to
AES

(312)

48

111

(54)

Tax credit transfer proceeds allocated to noncontrolling interests

220

—

220

—

Other

140

12

221

130

Changes in operating assets and liabilities:

(Increase) decrease in accounts receivable

215

145

(361)

161

(Increase) decrease in inventory

28

53

86

306

(Increase) decrease in prepaid expenses and other current assets

149

(38)

269

38

(Increase) decrease in other assets

(250)

9

(73)

5

Increase (decrease) in accounts payable and other current liabilities

(74)

55

(40)

(132)

Increase (decrease) in income tax payables, net and other tax payables

380

(42)

(134)

(109)

Increase (decrease) in other liabilities

29

(32)

161

41

Net cash provided by operating activities

1,088

725

2,752

3,034

INVESTING ACTIVITIES:

Capital expenditures

(1,727)

(2,429)

(7,392)

(7,724)

Acquisitions of business interests, net of cash and restricted cash acquired

(167)

(231)

(246)

(542)

Proceeds from the sale of business interests, net of cash and restricted cash sold

412

156

423

254

Sale of short-term investments

65

316

796

1,318

Purchase of short-term investments

(93)

(173)

(818)

(937)

Contributions and loans to equity affiliates

(32)

(31)

(103)

(178)

Affiliate repayments and returns of capital

6

5

6

5

Purchase of emissions allowances

(49)

(107)

(206)

(268)

Other investing

(26)

(21)

(160)

(116)

Net cash used in investing activities

(1,611)

(2,515)

(7,700)

(8,188)

FINANCING ACTIVITIES:

Borrowings under the revolving credit facilities

1,154

3,164

6,806

7,103

Repayments under the revolving credit facilities

(2,146)

(3,555)

(6,197)

(6,285)

Issuance of recourse debt

500

—

1,450

1,400

Repayments of recourse debt

(200)

(500)

(200)

(500)

Issuance of non-recourse debt

2,037

2,737

7,236

4,521

Repayments of non-recourse debt

(995)

(1,233)

(4,306)

(2,495)

Payments for financing fees

(50)

(66)

(138)

(142)

Purchases under supplier financing arrangements

575

551

1,786

1,858

Repayments of obligations under supplier financing arrangements

(382)

(392)

(1,794)

(1,491)

Distributions to noncontrolling interests

(265)

(150)

(430)

(323)

Acquisitions of noncontrolling interests

—

(127)

—

(127)

Contributions from noncontrolling interests

85

39

222

102

Sales to noncontrolling interests

378

1,567

1,247

1,938

Issuance of preferred shares in subsidiaries

—

—

—

421

Dividends paid on AES common stock

(122)

(111)

(483)

(444)

Payments for financed capital expenditures

(98)

(2)

(127)

(10)

Other financing

(84)

(74)

(109)

(121)

Net cash provided by financing activities

387

1,848

4,963

5,405

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(16)

(162)

(63)

(270)

(Increase) decrease in cash, cash equivalents and restricted cash of held-for-sale
businesses

243

(58)

97

(78)

Total increase (decrease) in cash, cash equivalents and restricted cash

(520)

(766)

49

(97)

Cash, cash equivalents and restricted cash, beginning

2,559

2,335

1,990

2,087

Cash, cash equivalents and restricted cash, ending

$        2,039

$        1,569

$        2,039

$        1,990

SUPPLEMENTAL DISCLOSURES:

Cash payments for interest, net of amounts capitalized

$       432

$           582

$           1,535

$        1,317

Cash payments for income taxes, net of refunds

75

34

345

301

SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:

Conversion of Corporate Units to shares of common stock

—

—

838

—

     Noncash recognition of new operating and financing leases  

216

38

456

225

     Noncash contributions from noncontrolling interests  

75

-

288

60

Liabilities derecognized upon completion of remaining performance obligation for sale of
Warrior Run receivables

—

—

273

—

Dividends declared but not yet paid

125

116

125

116

     Initial recognition of contingent consideration for acquisitions  

62

24

76

239

Noncash contributions to equity affiliates related to tax credit transfers

—

52

—

52

Three Months Ended December 31,

Twelve Months Ended December 31,

Reconciliation of Adjusted EBITDA (in millions)

2024

2023

2024

2023

Net income (loss)

$               (249)

$               (643)

$                 698

$               (182)

Income tax expense

7

82

59

261

Interest expense

360

353

1,485

1,319

Interest income

(69)

(153)

(381)

(551)

Depreciation, amortization, and accretion of AROs

319

298

1,264

1,147

EBITDA

$                 866

$                 (63)

$              3,125

$              1,994

Less: (Income) loss from discontinued operations

—

(7)

7

(7)

Less: Adjustment for noncontrolling interests and redeemable stock
of subsidiaries ⁽¹⁾

(157)

(45)

(631)

(556)

Less: Income tax expense (benefit), interest expense (income) and
depreciation, amortization, and accretion of AROs from equity affiliates

44

37

136

131

Interest income recognized under service concession arrangements

16

17

65

71

Unrealized derivative and equity securities losses (gains)

91

31

(94)

34

Unrealized foreign currency losses

6

140

16

301

Disposition/acquisition losses (gains)

(424)

(100)

(416)

(79)

Impairment losses

195

559

374

877

Loss on extinguishment of debt

6

61

57

62

Adjusted EBITDA ⁽¹⁾

$                 643

$                 630

$              2,639

$              2,828

Tax attributes

418

542

1,313

611

Adjusted EBITDA with Tax Attributes ⁽²⁾

$              1,061

$              1,172

$              3,952

$              3,439

⁽¹⁾

The allocation of earnings to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA. NCI also excludes amounts allocated to preferred shareholders during the construction phase before a project becomes operational, as this is akin to a financing arrangement.

⁽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 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.

Three Months Ended
December 31, 2024

Three Months Ended
December 31, 2023

Twelve Months Ended
December 31, 2024

Twelve Months Ended
December 31, 2023

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

$        560

$      0.79

$     (101)

$    (0.14)

$    1,686

$      2.37

$       242

$      0.34

Income tax expense from continuing operations attributable to AES

(15)

70

(19)

206

Pre-tax contribution

$       545

$       (31)

$    1,667

$       448

Adjustments

Unrealized derivative and equity securities losses (gains)

$         91

$      0.13

(2)

$         38

$      0.05

(3)

$       (94)

$    (0.13)

(4)

$         41

$      0.06

(5)

Unrealized foreign currency losses

6

0.01

141

0.20

(6)

16

0.02

301

0.42

(7)

Disposition/acquisition losses (gains)

(422)

(0.59)

(8)

(100)

(0.14)

(9)

(414)

(0.58)

(10)

(79)

(0.11)

(11)

Impairment losses

195

0.27

(12)

559

0.78

(13)

374

0.52

(14)

877

1.23

(15)

Loss on extinguishment of debt

8

0.01

63

0.09

(16)

65

0.09

(17)

70

0.10

(18)

Less: Net income tax benefit

(0.08)

(19)

(0.11)

(20)

(0.15)

(21)

(0.28)

(22)

Adjusted PTC and Adjusted EPS

$       423

$      0.54

$       670

$      0.73

$    1,614

$      2.14

$    1,658

$      1.76

⁽¹⁾

NCI is defined as Noncontrolling Interests.

⁽²⁾

Amount primarily relates to net unrealized derivative losses at the Energy Infrastructure SBU of $84 million, or $0.12 per share.

⁽³⁾

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.

⁽⁴⁾

Amount primarily relates to unrealized gains on cross currency swaps in Brazil of $39 million, or $0.05 per share, unrealized gains on commodity derivatives at AES Clean Energy of $38 million, or $0.05 per share, and net unrealized derivative gains at the Energy Infrastructure SBU of $25 million, or $0.04 per share.

⁽⁵⁾

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. 

⁽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 $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. 

⁽⁸⁾

Amount primarily relates to gain on sale of AES Brasil of $406 million, or $0.57 per share.

⁽⁹⁾

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; partially offset by day-one losses at commencement of sales-type leases at AES Renewable Holdings of $63 million, or $0.09 per share, and loss on partial sale of our ownership interest in Amman East and IPP4 in Jordan of $10 million, or $0.01 per share.

⁽¹⁰⁾

Amount primarily relates to gain on sale of AES Brasil of $406 million, or $0.57 per share, a gain on dilution of ownership in Uplight due to its acquisition of AutoGrid of $53 million, or $0.07 per share, and realized gains on cross currency swaps hedging the AES Brasil sale proceeds of $34 million, or $0.05 per share; partially offset by day-one losses at commencement of sales-type leases at AES Renewable Holdings of $63 million, or $0.09 per share, and loss on partial sale of our ownership interest in Amman East and IPP4 in Jordan of $10 million, or $0.01 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 impairments at Ventanas of $125 million, or $0.18 per share, and at AES Clean Energy Development projects of $55 million, or $0.08 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 impairments at Brazil of $131 million, or $0.18 per share, Ventanas of $125 million, or $0.18 per share, at AES Clean Energy Development projects of $70 million, or $0.10 per share, and at Mong Duong of $32 million, or $0.04 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, at 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 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.

⁽¹⁷⁾

Amount primarily relates to losses incurred at AES Andes due to early retirement of debt of $29 million, or $0.04 per share, and costs incurred due to troubled debt restructuring at Puerto Rico of $20 million, or $0.03 per share.

⁽¹⁸⁾

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.

⁽¹⁹⁾

Amount primarily relates to income tax benefits associated with the impairment and tax over book investment basis difference related to AES Ventanas of $68 million, or $0.09 per share.

⁽²⁰⁾

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.

⁽²¹⁾

Amount primarily relates to income tax benefits associated with the impairment and tax over book investment basis difference related to AES Ventanas of $68 million, or $0.09 per share, the sale of AES Brasil of $18 million, or $0.02 per share, the impairment at AES Clean Energy Development projects of $16 million, or $0.02 per share, and the day-one sales-type lease loss at AES Renewable Holdings of $13 million, or $0.02 per share.

⁽²²⁾

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.

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, 2024

September 30, 2024

June 30, 2024

March 31, 2024

Actual

Actual

Actual

Actual

Subsidiary distributions⁽¹⁾ to Parent & QHCs

$             1,603

$             1,424

$             1,531

$            1,438

Returns of capital distributions to Parent & QHCs

30

80

140

139

Total subsidiary distributions & returns of capital to Parent

$             1,633

$             1,504

$             1,671

$            1,577

Parent only data: quarterly

(in millions)

Quarter Ended

Total subsidiary distributions & returns of capital to Parent

December 31, 2024

September 30, 2024

June 30, 2024

March 31, 2024

Actual

Actual

Actual

Actual

Subsidiary distributions¹ to Parent & QHCs

$                715

$                204

$                298

$               386

Returns of capital distributions to Parent & QHCs

28

—

1

1

Total subsidiary distributions & returns of capital to Parent

$                743

$                204

$                299

$               387

(in millions)

Balance at

December 31, 2024

September 30, 2024

June 30, 2024

March 31, 2024

Parent Company Liquidity⁽²⁾

Actual

Actual

Actual

Actual

Cash at Parent & Cash at QHCs⁽³⁾

$                265

$                    6

$                  53

$                 90

Availability under credit facilities

1,782

335

736

642

Ending liquidity

$             2,047

$                341

$                789

$               732

⁽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.