x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 54 1163725 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
4300 Wilson Boulevard Arlington, Virginia | 22203 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ | |||
(Do not check if a smaller reporting company) |
ITEM 1. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
ITEM 1. | ||
ITEM 1A. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
ITEM 5. | ||
ITEM 6. | ||
June 30, 2013 | December 31, 2012 | |||||||
(in millions, except share and per share data) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 1,611 | $ | 1,966 | ||||
Restricted cash | 765 | 748 | ||||||
Short-term investments | 703 | 696 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $287 and $306, respectively | 2,417 | 2,671 | ||||||
Inventory | 763 | 766 | ||||||
Deferred income taxes | 207 | 222 | ||||||
Prepaid expenses | 187 | 230 | ||||||
Other current assets | 1,157 | 1,103 | ||||||
Current assets of discontinued operations and held for sale assets | — | 63 | ||||||
Total current assets | 7,810 | 8,465 | ||||||
NONCURRENT ASSETS | ||||||||
Property, Plant and Equipment: | ||||||||
Land | 957 | 1,007 | ||||||
Electric generation, distribution assets and other | 32,058 | 31,656 | ||||||
Accumulated depreciation | (9,747 | ) | (9,645 | ) | ||||
Construction in progress | 2,600 | 2,783 | ||||||
Property, plant and equipment, net | 25,868 | 25,801 | ||||||
Other Assets: | ||||||||
Investments in and advances to affiliates | 1,177 | 1,196 | ||||||
Debt service reserves and other deposits | 495 | 565 | ||||||
Goodwill | 1,999 | 1,999 | ||||||
Other intangible assets, net of accumulated amortization of $200 and $276, respectively | 408 | 429 | ||||||
Deferred income taxes | 896 | 996 | ||||||
Other noncurrent assets | 2,183 | 2,240 | ||||||
Noncurrent assets of discontinued operations and held for sale assets | — | 139 | ||||||
Total other assets | 7,158 | 7,564 | ||||||
TOTAL ASSETS | $ | 40,836 | $ | 41,830 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 2,622 | $ | 2,631 | ||||
Accrued interest | 275 | 295 | ||||||
Accrued and other liabilities | 2,335 | 2,505 | ||||||
Non-recourse debt, including $287 and $282, respectively, related to variable interest entities | 2,923 | 2,829 | ||||||
Recourse debt | 118 | 11 | ||||||
Current liabilities of discontinued operations and held for sale businesses | — | 48 | ||||||
Total current liabilities | 8,273 | 8,319 | ||||||
NONCURRENT LIABILITIES | ||||||||
Non-recourse debt, including $1,172 and $1,076, respectively, related to variable interest entities | 12,476 | 12,554 | ||||||
Recourse debt | 5,553 | 5,951 | ||||||
Deferred income taxes | 1,195 | 1,237 | ||||||
Pension and other post-retirement liabilities | 2,203 | 2,455 | ||||||
Other noncurrent liabilities | 3,251 | 3,705 | ||||||
Noncurrent liabilities of discontinued operations and held for sale businesses | — | 17 | ||||||
Total noncurrent liabilities | 24,678 | 25,919 | ||||||
Contingencies and Commitments (see Note 8) | ||||||||
Cumulative preferred stock of subsidiaries | 78 | 78 | ||||||
EQUITY | ||||||||
THE AES CORPORATION STOCKHOLDERS’ EQUITY | ||||||||
Common stock ($0.01 par value, 1,200,000,000 shares authorized; 812,248,090 issued and 745,144,098 outstanding at June 30, 2013 and 810,679,839 issued and 744,263,855 outstanding at December 31, 2012) | 8 | 8 | ||||||
Additional paid-in capital | 8,481 | 8,525 | ||||||
Accumulated deficit | (15 | ) | (264 | ) | ||||
Accumulated other comprehensive loss | (2,939 | ) | (2,920 | ) | ||||
Treasury stock, at cost (67,103,992 shares at June 30, 2013 and 66,415,984 shares at December 31, 2012) | (786 | ) | (780 | ) | ||||
Total AES Corporation stockholders’ equity | 4,749 | 4,569 | ||||||
NONCONTROLLING INTERESTS | 3,058 | 2,945 | ||||||
Total equity | 7,807 | 7,514 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 40,836 | $ | 41,830 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Revenue: | ||||||||||||||||
Regulated | $ | 2,093 | $ | 2,105 | $ | 4,339 | $ | 4,589 | ||||||||
Non-Regulated | 1,975 | 1,984 | 3,994 | 4,086 | ||||||||||||
Total revenue | 4,068 | 4,089 | 8,333 | 8,675 | ||||||||||||
Cost of Sales: | ||||||||||||||||
Regulated | (1,738 | ) | (1,869 | ) | (3,632 | ) | (3,925 | ) | ||||||||
Non-Regulated | (1,412 | ) | (1,527 | ) | (3,028 | ) | (2,985 | ) | ||||||||
Total cost of sales | (3,150 | ) | (3,396 | ) | (6,660 | ) | (6,910 | ) | ||||||||
Gross margin | 918 | 693 | 1,673 | 1,765 | ||||||||||||
General and administrative expenses | (59 | ) | (74 | ) | (120 | ) | (161 | ) | ||||||||
Interest expense | (346 | ) | (384 | ) | (723 | ) | (800 | ) | ||||||||
Interest income | 63 | 82 | 129 | 173 | ||||||||||||
Loss on extinguishment of debt | (165 | ) | — | (212 | ) | — | ||||||||||
Other expense | (18 | ) | (15 | ) | (46 | ) | (43 | ) | ||||||||
Other income | 13 | 14 | 81 | 32 | ||||||||||||
Gain on sale of investments | 20 | 5 | 23 | 184 | ||||||||||||
Asset impairment expense | — | (18 | ) | (48 | ) | (28 | ) | |||||||||
Foreign currency transaction losses | (17 | ) | (101 | ) | (49 | ) | (102 | ) | ||||||||
Other non-operating expense | — | (1 | ) | — | (50 | ) | ||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES | 409 | 201 | 708 | 970 | ||||||||||||
Income tax expense | (81 | ) | (75 | ) | (163 | ) | (343 | ) | ||||||||
Net equity in earnings of affiliates | 2 | 11 | 6 | 24 | ||||||||||||
INCOME FROM CONTINUING OPERATIONS | 330 | 137 | 551 | 651 | ||||||||||||
Income (loss) from operations of discontinued businesses, net of income tax (benefit) expense of $1, $3, $0, and $5, respectively | — | (5 | ) | 14 | 1 | |||||||||||
Net gain (loss) from disposal and impairments of discontinued businesses, net of income tax (benefit) expense of $(1), $61, $(2), and $61, respectively | 3 | 75 | (33 | ) | 70 | |||||||||||
NET INCOME | 333 | 207 | 532 | 722 | ||||||||||||
Noncontrolling interests: | ||||||||||||||||
Less: Income from continuing operations attributable to noncontrolling interests | (166 | ) | (67 | ) | (281 | ) | (240 | ) | ||||||||
Less: Income from discontinued operations attributable to noncontrolling interests | — | — | (2 | ) | (1 | ) | ||||||||||
Total net income attributable to noncontrolling interests | (166 | ) | (67 | ) | (283 | ) | (241 | ) | ||||||||
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION | $ | 167 | $ | 140 | $ | 249 | $ | 481 | ||||||||
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS: | ||||||||||||||||
Income from continuing operations, net of tax | $ | 164 | $ | 70 | $ | 270 | $ | 411 | ||||||||
Income (loss) from discontinued operations, net of tax | 3 | 70 | (21 | ) | 70 | |||||||||||
Net income | $ | 167 | $ | 140 | $ | 249 | $ | 481 | ||||||||
BASIC EARNINGS PER SHARE: | ||||||||||||||||
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax | $ | 0.22 | $ | 0.09 | $ | 0.36 | $ | 0.54 | ||||||||
Income (loss) from discontinued operations attributable to The AES Corporation common stockholders, net of tax | — | 0.09 | (0.03 | ) | 0.09 | |||||||||||
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS | $ | 0.22 | $ | 0.18 | $ | 0.33 | $ | 0.63 | ||||||||
DILUTED EARNINGS PER SHARE: | ||||||||||||||||
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax | $ | 0.22 | $ | 0.09 | $ | 0.36 | $ | 0.54 | ||||||||
Income (loss) from discontinued operations attributable to The AES Corporation common stockholders, net of tax | — | 0.09 | (0.03 | ) | 0.09 | |||||||||||
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS | $ | 0.22 | $ | 0.18 | $ | 0.33 | $ | 0.63 | ||||||||
DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.08 | $ | — | $ | 0.08 | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions) | ||||||||||||||||
NET INCOME | $ | 333 | $ | 207 | $ | 532 | $ | 722 | ||||||||
Available-for-sale securities activity: | ||||||||||||||||
Change in fair value of available-for-sale securities, net of income tax (expense) benefit of $0, $0, $1 and $0, respectively | (1 | ) | 1 | (1 | ) | 1 | ||||||||||
Reclassification to earnings, net of income tax (expense) benefit of $0, $0, $0 and $0, respectively | 1 | (1 | ) | 1 | (1 | ) | ||||||||||
Total change in fair value of available-for-sale securities | — | — | — | — | ||||||||||||
Foreign currency translation activity: | ||||||||||||||||
Foreign currency translation adjustments, net of income tax (expense) benefit of $2, $2, $2 and $1, respectively | (226 | ) | (383 | ) | (258 | ) | (241 | ) | ||||||||
Reclassification to earnings, net of income tax (expense) benefit of $0, $0, $0 and $0, respectively | 44 | (2 | ) | 41 | (3 | ) | ||||||||||
Total foreign currency translation adjustments | (182 | ) | (385 | ) | (217 | ) | (244 | ) | ||||||||
Derivative activity: | ||||||||||||||||
Change in derivative fair value, net of income tax (expense) benefit of $(28), $24, $(28) and $20, respectively | 102 | (133 | ) | 86 | (112 | ) | ||||||||||
Reclassification to earnings, net of income tax (expense) benefit of $(15), $(5), $(22) and $(33), respectively | 61 | 40 | 85 | 126 | ||||||||||||
Total change in fair value of derivatives | 163 | (93 | ) | 171 | 14 | |||||||||||
Pension activity: | ||||||||||||||||
Reclassification to earnings due to amortization of net actuarial loss, net of income tax (expense) benefit of $(7), $(3), $(14) and $(6), respectively | 13 | 7 | 27 | 13 | ||||||||||||
Total pension adjustments | 13 | 7 | 27 | 13 | ||||||||||||
OTHER COMPREHENSIVE (LOSS) | (6 | ) | (471 | ) | (19 | ) | (217 | ) | ||||||||
COMPREHENSIVE INCOME (LOSS) | 327 | (264 | ) | 513 | 505 | |||||||||||
Less: Comprehensive (income) loss attributable to noncontrolling interests | (147 | ) | 114 | (283 | ) | (131 | ) | |||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION | $ | 180 | $ | (150 | ) | $ | 230 | $ | 374 |
Six Months Ended June 30, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | 532 | $ | 722 | ||||
Adjustments to net income: | ||||||||
Depreciation and amortization | 661 | 706 | ||||||
Gain from sale of investments and impairment expense | 46 | (71 | ) | |||||
Deferred income taxes | (46 | ) | 72 | |||||
Provisions for contingencies | 36 | 35 | ||||||
Loss on the extinguishment of debt | 212 | — | ||||||
(Gain) loss on disposals and impairments - discontinued operations | 31 | (131 | ) | |||||
Other | 23 | 50 | ||||||
Changes in operating assets and liabilities | ||||||||
(Increase) decrease in accounts receivable | 191 | (175 | ) | |||||
(Increase) decrease in inventory | (12 | ) | (43 | ) | ||||
(Increase) decrease in prepaid expenses and other current assets | 55 | 18 | ||||||
(Increase) decrease in other assets | (147 | ) | (293 | ) | ||||
Increase (decrease) in accounts payable and other current liabilities | (252 | ) | 228 | |||||
Increase (decrease) in income tax payables, net and other tax payables | (134 | ) | (249 | ) | ||||
Increase (decrease) in other liabilities | (11 | ) | 245 | |||||
Net cash provided by operating activities | 1,185 | 1,114 | ||||||
INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (866 | ) | (1,071 | ) | ||||
Acquisitions - net of cash acquired | (3 | ) | (13 | ) | ||||
Proceeds from the sale of businesses, net of cash sold | 135 | 332 | ||||||
Proceeds from the sale of assets | 43 | 2 | ||||||
Sale of short-term investments | 2,311 | 3,605 | ||||||
Purchase of short-term investments | (2,381 | ) | (3,261 | ) | ||||
Decrease (increase) in restricted cash | 14 | (73 | ) | |||||
Decrease in debt service reserves and other assets | 18 | 26 | ||||||
Proceeds from government grants for asset construction | 1 | 117 | ||||||
Other investing | 22 | (16 | ) | |||||
Net cash used in investing activities | (706 | ) | (352 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Borrowings (repayments) under the revolving credit facilities, net | 33 | (310 | ) | |||||
Issuance of recourse debt | 750 | — | ||||||
Issuance of non-recourse debt | 2,383 | 579 | ||||||
Repayments of recourse debt | (1,206 | ) | (5 | ) | ||||
Repayments of non-recourse debt | (2,169 | ) | (328 | ) | ||||
Payments for financing fees | (127 | ) | (17 | ) | ||||
Distributions to noncontrolling interests | (211 | ) | (578 | ) | ||||
Contributions from noncontrolling interests | 76 | 12 | ||||||
Dividends paid on AES common stock | (60 | ) | — | |||||
Financed capital expenditures | (257 | ) | (12 | ) | ||||
Purchase of treasury stock | (18 | ) | (231 | ) | ||||
Other financing | 7 | 28 | ||||||
Net cash used in financing activities | (799 | ) | (862 | ) | ||||
Effect of exchange rate changes on cash | (39 | ) | 3 | |||||
Decrease in cash of discontinued and held for sale businesses | 4 | 97 | ||||||
Total decrease in cash and cash equivalents | (355 | ) | — | |||||
Cash and cash equivalents, beginning | 1,966 | 1,688 | ||||||
Cash and cash equivalents, ending | $ | 1,611 | $ | 1,688 | ||||
SUPPLEMENTAL DISCLOSURES: | ||||||||
Cash payments for interest, net of amounts capitalized | $ | 700 | $ | 783 | ||||
Cash payments for income taxes, net of refunds | $ | 432 | $ | 525 |
June 30, 2013 | December 31, 2012 | |||||||
(in millions) | ||||||||
Coal, fuel oil and other raw materials | $ | 363 | $ | 373 | ||||
Spare parts and supplies | 400 | 393 | ||||||
Total | $ | 763 | $ | 766 |
June 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE:(1) | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Unsecured debentures | $ | — | $ | 415 | $ | — | $ | 415 | $ | — | $ | 448 | $ | — | $ | 448 | ||||||||||||||||
Certificates of deposit | — | 196 | — | 196 | — | 143 | — | 143 | ||||||||||||||||||||||||
Government debt securities | — | 25 | — | 25 | — | 34 | — | 34 | ||||||||||||||||||||||||
Subtotal | — | 636 | — | 636 | — | 625 | — | 625 | ||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
Mutual funds | — | 52 | — | 52 | — | 56 | — | 56 | ||||||||||||||||||||||||
Subtotal | — | 52 | — | 52 | — | 56 | — | 56 | ||||||||||||||||||||||||
Total available-for-sale | — | 688 | — | 688 | — | 681 | — | 681 | ||||||||||||||||||||||||
TRADING: | ||||||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
Mutual funds | 13 | — | — | 13 | 12 | — | — | 12 | ||||||||||||||||||||||||
Total trading | 13 | — | — | 13 | 12 | — | — | 12 | ||||||||||||||||||||||||
DERIVATIVES: | ||||||||||||||||||||||||||||||||
Interest rate derivatives | — | 40 | — | 40 | — | 2 | — | 2 | ||||||||||||||||||||||||
Cross currency derivatives | — | 5 | — | 5 | — | 6 | — | 6 | ||||||||||||||||||||||||
Foreign currency derivatives | — | 26 | 78 | 104 | — | 2 | 79 | 81 | ||||||||||||||||||||||||
Commodity derivatives | — | 27 | 12 | 39 | — | 8 | 3 | 11 | ||||||||||||||||||||||||
Total derivatives | — | 98 | 90 | 188 | — | 18 | 82 | 100 | ||||||||||||||||||||||||
TOTAL ASSETS | $ | 13 | $ | 786 | $ | 90 | $ | 889 | $ | 12 | $ | 699 | $ | 82 | $ | 793 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
DERIVATIVES: | ||||||||||||||||||||||||||||||||
Interest rate derivatives | $ | — | $ | 326 | $ | 63 | $ | 389 | $ | — | $ | 153 | $ | 412 | $ | 565 | ||||||||||||||||
Cross currency derivatives | — | 8 | — | 8 | — | 6 | — | 6 | ||||||||||||||||||||||||
Foreign currency derivatives | — | 16 | 8 | 24 | — | 7 | 7 | 14 | ||||||||||||||||||||||||
Commodity derivatives | — | 17 | 68 | 85 | — | 13 | 59 | 72 | ||||||||||||||||||||||||
Total derivatives | — | 367 | 139 | 506 | — | 179 | 478 | 657 | ||||||||||||||||||||||||
TOTAL LIABILITIES | $ | — | $ | 367 | $ | 139 | $ | 506 | $ | — | $ | 179 | $ | 478 | $ | 657 |
(1) | Amortized cost approximated fair value at June 30, 2013 and December 31, 2012. |
Three Months Ended June 30, 2013 | ||||||||||||||||
Interest Rate | Foreign Currency | Commodity | Total | |||||||||||||
(in millions) | ||||||||||||||||
Balance at April 1 | $ | (72 | ) | $ | 71 | $ | (68 | ) | $ | (69 | ) | |||||
Total gains (losses) (realized and unrealized): | ||||||||||||||||
Included in earnings | (4 | ) | 9 | — | 5 | |||||||||||
Included in other comprehensive income | 13 | — | — | 13 | ||||||||||||
Included in regulatory (assets) liabilities | — | — | 11 | 11 | ||||||||||||
Settlements | 4 | (1 | ) | 1 | 4 | |||||||||||
Transfers of assets (liabilities) into Level 3 | (42 | ) | — | — | (42 | ) | ||||||||||
Transfers of (assets) liabilities out of Level 3 | 38 | (9 | ) | — | 29 | |||||||||||
Balance at June 30 | $ | (63 | ) | $ | 70 | $ | (56 | ) | $ | (49 | ) | |||||
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period | $ | — | $ | 11 | $ | 1 | $ | 12 |
Three Months Ended June 30, 2012 | ||||||||||||||||
Interest Rate | Foreign Currency | Commodity | Total | |||||||||||||
(in millions) | ||||||||||||||||
Balance at April 1 | $ | (124 | ) | $ | 48 | $ | (46 | ) | $ | (122 | ) | |||||
Total gains (losses) (realized and unrealized): | ||||||||||||||||
Included in earnings | — | — | (13 | ) | (13 | ) | ||||||||||
Included in other comprehensive income | (58 | ) | — | — | (58 | ) | ||||||||||
Included in regulatory (assets) liabilities | — | — | 7 | 7 | ||||||||||||
Settlements | 6 | (1 | ) | — | 5 | |||||||||||
Transfers of assets (liabilities) into Level 3 | (105 | ) | — | — | (105 | ) | ||||||||||
Balance at June 30 | $ | (281 | ) | $ | 47 | $ | (52 | ) | $ | (286 | ) | |||||
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period | $ | — | $ | (1 | ) | $ | (13 | ) | $ | (14 | ) |
Six Months Ended June 30, 2013 | ||||||||||||||||
Interest Rate | Foreign Currency | Commodity | Total | |||||||||||||
(in millions) | ||||||||||||||||
Balance at January 1 | $ | (412 | ) | $ | 73 | $ | (57 | ) | $ | (396 | ) | |||||
Total gains (losses) (realized and unrealized): | ||||||||||||||||
Included in earnings | (4 | ) | 8 | (11 | ) | (7 | ) | |||||||||
Included in other comprehensive income | 83 | — | — | 83 | ||||||||||||
Included in regulatory (assets) liabilities | — | — | 10 | 10 | ||||||||||||
Settlements | 48 | (2 | ) | 2 | 48 | |||||||||||
Transfers of assets (liabilities) into Level 3 | — | — | — | — | ||||||||||||
Transfers of (assets) liabilities out of Level 3 | 222 | (9 | ) | — | 213 | |||||||||||
Balance at June 30 | $ | (63 | ) | $ | 70 | $ | (56 | ) | $ | (49 | ) | |||||
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period | $ | — | $ | 7 | $ | (9 | ) | $ | (2 | ) |
Six Months Ended June 30, 2012 | ||||||||||||||||||||
Interest Rate | Cross Currency | Foreign Currency | Commodity | Total | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Balance at January 1 | $ | (128 | ) | $ | (18 | ) | $ | 51 | $ | (53 | ) | $ | (148 | ) | ||||||
Total gains (losses) (realized and unrealized): | ||||||||||||||||||||
Included in earnings | (1 | ) | — | (2 | ) | (5 | ) | (8 | ) | |||||||||||
Included in other comprehensive income | (19 | ) | 4 | — | — | (15 | ) | |||||||||||||
Included in regulatory (assets) liabilities | — | — | — | 7 | 7 | |||||||||||||||
Settlements | 13 | 8 | (2 | ) | (1 | ) | 18 | |||||||||||||
Transfers of assets (liabilities) into Level 3 | (146 | ) | — | — | — | (146 | ) | |||||||||||||
Transfers of (assets) liabilities out of Level 3 | — | 6 | — | — | 6 | |||||||||||||||
Balance at June 30 | $ | (281 | ) | $ | — | $ | 47 | $ | (52 | ) | $ | (286 | ) | |||||||
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period | $ | — | $ | — | $ | (3 | ) | $ | (5 | ) | $ | (8 | ) |
Type of Derivative | Fair Value | Unobservable Input | Amount or Range (Weighted Average) | |||||
(in millions) | ||||||||
Interest rate | $ | (63 | ) | Subsidiaries’ credit spreads | 3.13% - 5.95% (4.47%) | |||
Foreign currency: | ||||||||
Embedded derivative — Argentine Peso | 77 | Argentine Peso to U.S. Dollar currency exchange rate after 3 years | 18.15 - 31.85 (25.68) | |||||
Other | (7 | ) | ||||||
Commodity: | ||||||||
Embedded derivative — Aluminum | (65 | ) | Market price of power for customer in Cameroon (per KWh) | $0.06 - $0.14 ($0.12) | ||||
Other | 9 | |||||||
Total | $ | (49 | ) |
Six Months Ended June 30, 2013 | ||||||||||||||||||||
Carrying Amount | Fair Value | Gross Loss | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Long-lived assets held and used:(1) | ||||||||||||||||||||
Beaver Valley | $ | 61 | $ | — | $ | — | $ | 15 | $ | 46 | ||||||||||
Long-lived assets held for sale:(1) | ||||||||||||||||||||
Wind turbines | 25 | — | 25 | — | — | |||||||||||||||
Discontinued operations and held for sale businesses:(2) | ||||||||||||||||||||
Ukraine utilities | 143 | — | 113 | — | 34 |
Six Months Ended June 30, 2012 | ||||||||||||||||||||
Carrying Amount | Fair Value | Gross Loss | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Long-lived assets held and used:(1) | ||||||||||||||||||||
Kelanitissa | $ | 22 | $ | — | $ | — | $ | 10 | $ | 12 | ||||||||||
Long-lived assets held for sale:(1) | ||||||||||||||||||||
St. Patrick | 33 | — | 22 | — | 11 | |||||||||||||||
Equity method investments | 205 | — | 155 | — | 50 |
(1) | See Note 13 — Asset Impairment Expense for further information. |
(2) | See Note 14 — Discontinued Operations and Held For Sale Businesses for further information. Also, the gross loss equals the carrying amount of the disposal group less its fair value less costs to sell. |
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||||
(in millions) | ($ in millions) | ||||||||||
Long-lived assets held and used: | |||||||||||
Beaver Valley | $ | 15 | Discounted cash flow | Annual revenue growth | 3% to 45% (19%) | ||||||
Annual pretax operating margin | -42% to 41% (25%) | ||||||||||
Weighted-average cost of capital | 7 | % |
Carrying Amount | Fair Value | |||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Accounts receivable — noncurrent(1) | $ | 300 | $ | 163 | $ | — | $ | — | $ | 163 | ||||||||||
Liabilities | ||||||||||||||||||||
Non-recourse debt | 15,399 | 16,394 | — | 14,096 | 2,298 | |||||||||||||||
Recourse debt | 5,671 | 6,032 | — | 6,032 | — | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Accounts receivable — noncurrent(1) | $ | 304 | $ | 188 | $ | — | $ | — | $ | 188 | ||||||||||
Liabilities | ||||||||||||||||||||
Non-recourse debt | 15,383 | 16,110 | — | 13,811 | 2,299 | |||||||||||||||
Recourse debt | 5,962 | 6,628 | — | 6,628 | — |
(1) | These accounts receivable principally relate to amounts due from the independent system operator in Argentina and are included in “Noncurrent assets — Other” in the accompanying condensed consolidated balance sheets. The fair value of these accounts receivable excludes value-added tax of $52 million and $55 million at June 30, 2013 and December 31, 2012, respectively. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in millions) | |||||||||||||||||
Gains included in earnings that relate to trading securities held at the reporting date | $ | — | $ | — | $ | 1 | $ | — | |||||||||
Unrealized gains on available-for-sale securities included in other comprehensive income | 1 | — | 1 | — | |||||||||||||
Gains reclassified out of other comprehensive income into earnings | 1 | — | 1 | — | |||||||||||||
Gross proceeds from sales of available-for-sale securities | 619 | 2,080 | 2,323 | 3,603 | |||||||||||||
Gross realized gains on sales | — | 1 | — | 1 |
Current | Maximum | ||||||||||||||||||
Interest Rate and Cross Currency | Derivative Notional | Derivative Notional Translated to USD | Derivative Notional | Derivative Notional Translated to USD | Weighted- Average Remaining Term | % of Debt Currently Hedged by Index(2) | |||||||||||||
(in millions) | (in years) | ||||||||||||||||||
Interest Rate Derivatives:(1) | |||||||||||||||||||
LIBOR (U.S. Dollar) | 3,539 | $ | 3,539 | 5,043 | $ | 5,043 | 9 | 73 | % | ||||||||||
EURIBOR (Euro) | 591 | 769 | 592 | 770 | 13 | 65 | % | ||||||||||||
LIBOR (British Pound) | 68 | 104 | 68 | 104 | 7 | 83 | % | ||||||||||||
Cross Currency Swaps: | |||||||||||||||||||
Chilean Unidad de Fomento | 6 | 252 | 6 | 252 | 8 | 85 | % |
(1) | The Company’s interest rate derivative instruments primarily include accreting and amortizing notionals. The maximum derivative notional represents the largest notional at any point between June 30, 2013 and the maturity of the derivative instrument, which includes forward-starting derivative instruments. The interest rate and cross currency derivatives range in maturity through 2030 and 2028, respectively. |
(2) | The percentage of variable-rate debt currently hedged is based on the related index and excludes forecasted issuances of debt and variable-rate debt tied to other indices where the Company has no interest rate derivatives. |
June 30, 2013 | |||||||||
Foreign Currency Derivatives | Notional(1) | Notional Translated to USD | Weighted- Average Remaining Term(2) | ||||||
(in millions) | (in years) | ||||||||
Foreign Currency Options and Forwards: | |||||||||
Chilean Unidad de Fomento | 6 | $ | 255 | 1 | |||||
Chilean Peso | 46,233 | 91 | <1 | ||||||
Brazilian Real | 104 | 47 | <1 | ||||||
Euro | 35 | 45 | <1 | ||||||
Colombian Peso | 179,416 | 97 | <1 | ||||||
Argentine Peso | 83 | 15 | <1 | ||||||
British Pound | 28 | 43 | <1 | ||||||
Embedded Foreign Currency Derivatives: | |||||||||
Argentine Peso | 821 | 152 | 11 | ||||||
Kazakhstani Tenge | 811 | 5 | 4 | ||||||
Euro | 1 | 2 | 10 |
(1) | Represents contractual notionals. The notionals for options have not been probability adjusted, which generally would decrease them. |
(2) | Represents the remaining tenor of our foreign currency derivatives weighted by the corresponding notional. These options and forwards and these embedded derivatives range in maturity through 2016 and 2026, respectively. |
June 30, 2013 | |||||
Commodity Derivatives | Notional | Weighted-Average Remaining Term(1) | |||
(in millions) | (in years) | ||||
Aluminum (MWh)(2) | 13 | 7 | |||
Power (MWh) | 9 | 2 |
(1) | Represents the remaining tenor of our commodity derivatives weighted by the corresponding volume. These derivatives range in maturity through 2019. |
(2) | Our exposure is to fluctuations in the price of aluminum while the notional is based on the amount of power we sell under the power purchase agreement ("PPA"). |
June 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Designated | Not Designated | Total | Designated | Not Designated | Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest rate derivatives | $ | 38 | $ | 2 | $ | 40 | $ | — | $ | 2 | $ | 2 | ||||||||||||
Cross currency derivatives | 5 | — | 5 | 6 | — | 6 | ||||||||||||||||||
Foreign currency derivatives | 10 | 94 | 104 | — | 81 | 81 | ||||||||||||||||||
Commodity derivatives | 7 | 32 | 39 | 2 | 9 | 11 | ||||||||||||||||||
Total assets | $ | 60 | $ | 128 | $ | 188 | $ | 8 | $ | 92 | $ | 100 | ||||||||||||
Liabilities | ||||||||||||||||||||||||
Interest rate derivatives | $ | 374 | $ | 15 | $ | 389 | $ | 544 | $ | 21 | $ | 565 | ||||||||||||
Cross currency derivatives | 8 | — | 8 | 6 | — | 6 | ||||||||||||||||||
Foreign currency derivatives | 15 | 9 | 24 | 7 | 7 | 14 | ||||||||||||||||||
Commodity derivatives | 10 | 75 | 85 | 8 | 64 | 72 | ||||||||||||||||||
Total liabilities | $ | 407 | $ | 99 | $ | 506 | $ | 565 | $ | 92 | $ | 657 |
June 30, 2013 | December 31, 2012 | |||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||
(in millions) | ||||||||||||||||
Current | $ | 50 | $ | 182 | $ | 14 | $ | 186 | ||||||||
Noncurrent | 138 | 324 | 86 | 471 | ||||||||||||
Total | $ | 188 | $ | 506 | $ | 100 | $ | 657 | ||||||||
Derivatives subject to master netting agreement or similar agreement: | ||||||||||||||||
Gross (which equals net) amounts recognized in the balance sheet | $ | 82 | $ | 392 | $ | 25 | $ | 522 | ||||||||
Gross amounts of derivative instruments not offset | (16 | ) | (16 | ) | (9 | ) | (9 | ) | ||||||||
Gross amounts of cash collateral received/pledged not offset | — | (5 | ) | — | (5 | ) | ||||||||||
Net amount | $ | 66 | $ | 371 | $ | 16 | $ | 508 | ||||||||
Other balances that had been, but are no longer, accounted for as derivatives that are to be amortized to earnings over the remaining term of the associated PPA | $ | 177 | $ | 190 | $ | 186 | $ | 191 |
Gains (Losses) Recognized in AOCL | Gains (Losses) Reclassified from AOCL into Earnings | |||||||||||||||||
Three Months Ended June 30, | Classification in Condensed Consolidated Statements of Operations | Three Months Ended June 30, | ||||||||||||||||
Type of Derivative | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in millions) | (in millions) | |||||||||||||||||
Interest rate derivatives | $ | 134 | $ | (153 | ) | Interest expense | $ | (31 | ) | $ | (30 | ) | ||||||
Non-regulated cost of sales | (1 | ) | (1 | ) | ||||||||||||||
Net equity in earnings of affiliates | (2 | ) | (1 | ) | ||||||||||||||
Gain on sale of investments | (21 | ) | (4 | ) | ||||||||||||||
Cross currency derivatives | (12 | ) | (9 | ) | Interest expense | (3 | ) | (3 | ) | |||||||||
Foreign currency transaction gains (losses) | (19 | ) | (6 | ) | ||||||||||||||
Foreign currency derivatives | 1 | 6 | Foreign currency transaction gains (losses) | 2 | — | |||||||||||||
Commodity derivatives | 7 | (1 | ) | Non-regulated revenue | (1 | ) | — | |||||||||||
Total | $ | 130 | $ | (157 | ) | $ | (76 | ) | $ | (45 | ) |
Gains (Losses) Recognized in AOCL | Gains (Losses) Reclassified from AOCL into Earnings | |||||||||||||||||
Six Months Ended June 30, | Classification in Condensed Consolidated Statements of Operations | Six Months Ended June 30, | ||||||||||||||||
Type of Derivative | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in millions) | (in millions) | |||||||||||||||||
Interest rate derivatives | $ | 121 | $ | (142 | ) | Interest expense | $ | (63 | ) | $ | (62 | ) | ||||||
Non-regulated cost of sales | (2 | ) | (3 | ) | ||||||||||||||
Net equity in earnings of affiliates | (4 | ) | (2 | ) | ||||||||||||||
Gain on sale of investments | (21 | ) | (96 | ) | ||||||||||||||
Cross currency derivatives | (11 | ) | 5 | Interest expense | (6 | ) | (6 | ) | ||||||||||
Foreign currency transaction gains (losses) | (14 | ) | 12 | |||||||||||||||
Foreign currency derivatives | 2 | 12 | Foreign currency transaction gains (losses) | 4 | — | |||||||||||||
Commodity derivatives | 2 | (7 | ) | Non-regulated revenue | (1 | ) | (2 | ) | ||||||||||
Total | $ | 114 | $ | (132 | ) | $ | (107 | ) | $ | (159 | ) |
Gains (Losses) Recognized in Earnings | ||||||||||||||||||
Classification in Condensed Consolidated Statements of Operations | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Type of Derivative | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in millions) | ||||||||||||||||||
Interest rate derivatives | Interest expense | $ | 31 | $ | 2 | $ | 30 | $ | 1 | |||||||||
Net equity in earnings of affiliates | — | (1 | ) | — | (1 | ) | ||||||||||||
Total | $ | 31 | $ | 1 | $ | 30 | $ | — |
Gains (Losses) Recognized in Earnings | ||||||||||||||||||
Classification in Condensed Consolidated Statements of Operations | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Type of Derivative | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in millions) | ||||||||||||||||||
Interest rate derivatives | Interest expense | $ | 1 | $ | (1 | ) | $ | 2 | $ | (3 | ) | |||||||
Net equity in earnings of affiliates | — | — | (6 | ) | — | |||||||||||||
Foreign currency derivatives | Foreign currency transaction gains (losses) | 17 | (38 | ) | 23 | (76 | ) | |||||||||||
Net equity in earnings of affiliates | (12 | ) | — | (15 | ) | — | ||||||||||||
Commodity and other derivatives | Non-regulated revenue | 13 | (13 | ) | (8 | ) | 1 | |||||||||||
Regulated revenue | 3 | (3 | ) | — | 1 | |||||||||||||
Non-regulated cost of sales | — | — | 1 | 3 | ||||||||||||||
Regulated cost of sales | 11 | (5 | ) | 11 | (17 | ) | ||||||||||||
Total | $ | 33 | $ | (60 | ) | $ | 8 | $ | (91 | ) |
June 30, 2013 | December 31, 2012 | |||||||
(in millions) | ||||||||
Argentina(1) | $ | 247 | $ | 196 | ||||
Dominican Republic | 27 | 35 | ||||||
Brazil | 16 | 8 | ||||||
Total long-term financing receivables | $ | 290 | $ | 239 |
(1) | Excludes noncurrent receivables of $63 million and $120 million, respectively, as of June 30, 2013 and December 31, 2012, which have not been converted into long-term financing receivables and currently have no due date. |
• | Tietê issued new debt of $496 million partially offset by repayments of $396 million; |
• | El Salvador issued new debt of $310 million partially offset by repayments of $301 million; |
• | Sul issued new debt of $150 million partially offset by repayments of $37 million; |
• | Mong Duong drew $210 million under its construction loan facility; |
• | DPL terminated its $425 million term loan and replaced it with a new $200 million term loan; |
• | IPL issued new debt of $170 million partially offset by repayments of $110 million; and |
• | Masinloc refinanced its senior debt facility of $500 million and incurred a loss on extinguishment of debt of $43 million. See Note 12-Other Income and Expense for further information. |
Primary Nature of Default | June 30, 2013 | |||||||||
Subsidiary | Default Amount | Net Assets | ||||||||
(in millions) | ||||||||||
Maritza | Covenant | $ | 832 | $ | 620 | |||||
Changuinola | Covenant | 372 | 231 | |||||||
Sonel | Covenant | 268 | 375 | |||||||
Kavarna | Covenant | 197 | 82 | |||||||
Saurashtra | Covenant | 22 | 13 | |||||||
$ | 1,691 |
Contingent Contractual Obligations | Amount | Number of Agreements | Maximum Exposure Range for Each Agreement | ||||||
(in millions) | (in millions) | ||||||||
Guarantees and commitments | $ | 640 | 20 | <$1 - 265 | |||||
Cash collateralized letters of credit | 231 | 13 | $1 - 154 | ||||||
Letters of credit under the senior secured credit facility | 3 | 4 | <$1 - 2 | ||||||
Total | $ | 874 | 37 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Service cost | $ | 4 | $ | 7 | $ | 3 | $ | 3 | $ | 8 | $ | 14 | $ | 7 | $ | 10 | ||||||||||||||||
Interest cost | 11 | 135 | 12 | 126 | 22 | 274 | 24 | 267 | ||||||||||||||||||||||||
Expected return on plan assets | (16 | ) | (127 | ) | (14 | ) | (111 | ) | (31 | ) | (257 | ) | (28 | ) | (233 | ) | ||||||||||||||||
Amortization of prior service cost | 2 | — | 2 | — | 3 | — | 3 | — | ||||||||||||||||||||||||
Amortization of net loss | 7 | 21 | 6 | 11 | 14 | 42 | 12 | 21 | ||||||||||||||||||||||||
Total pension cost | $ | 8 | $ | 36 | $ | 9 | $ | 29 | $ | 16 | $ | 73 | $ | 18 | $ | 65 |
Six Months Ended June 30, 2013 | Six Months Ended June 30, 2012 | |||||||||||||||||||||||
The AES Corporation Stockholders’ Equity | Noncontrolling Interests | Total Equity | The AES Corporation Stockholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Balance at January 1 | $ | 4,569 | $ | 2,945 | $ | 7,514 | $ | 5,946 | $ | 3,783 | $ | 9,729 | ||||||||||||
Net income | 249 | 283 | 532 | 481 | 241 | 722 | ||||||||||||||||||
Total foreign currency translation adjustment, net of income tax | (148 | ) | (69 | ) | (217 | ) | (134 | ) | (110 | ) | (244 | ) | ||||||||||||
Total change in derivative fair value, net of income tax | 123 | 48 | 171 | 23 | (9 | ) | 14 | |||||||||||||||||
Total pension adjustments, net of income tax | 6 | 21 | 27 | 4 | 9 | 13 | ||||||||||||||||||
Capital contributions from noncontrolling interests | — | 55 | 55 | — | 12 | 12 | ||||||||||||||||||
Distributions to noncontrolling interests | — | (226 | ) | (226 | ) | — | (507 | ) | (507 | ) | ||||||||||||||
Disposition of businesses | (1 | ) | (20 | ) | (21 | ) | — | (37 | ) | (37 | ) | |||||||||||||
Acquisition of treasury stock | (18 | ) | — | (18 | ) | (231 | ) | — | (231 | ) | ||||||||||||||
Issuance and exercise of stock-based compensation benefit plans, net of income tax | 24 | — | 24 | 34 | — | 34 | ||||||||||||||||||
Dividends declared on common stock ($0.08 per share) | (60 | ) | — | (60 | ) | — | — | — | ||||||||||||||||
Sale of subsidiary shares to noncontrolling interests | 11 | 22 | 33 | — | — | — | ||||||||||||||||||
Acquisition of subsidiary shares from noncontrolling interests | (6 | ) | (1 | ) | (7 | ) | — | (4 | ) | (4 | ) | |||||||||||||
Balance at June 30 | $ | 4,749 | $ | 3,058 | $ | 7,807 | $ | 6,123 | $ | 3,378 | $ | 9,501 |
Unrealized derivative losses, net | Unfunded pension obligations, net | Available for sale securities, net | Foreign currency translation adjustment, net | Total | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Balance at January 1 | $ | (481 | ) | $ | (382 | ) | $ | — | $ | (2,057 | ) | $ | (2,920 | ) | ||||||
Other comprehensive income before reclassifications | 51 | — | (1 | ) | (184 | ) | (134 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 72 | 6 | 1 | 36 | 115 | |||||||||||||||
Net current-period other comprehensive income | 123 | 6 | — | (148 | ) | (19 | ) | |||||||||||||
Balance at June 30 | $ | (358 | ) | $ | (376 | ) | $ | — | $ | (2,205 | ) | $ | (2,939 | ) |
Details About Accumulated Other Comprehensive Loss Components | Affected Line Item in the Condensed Consolidated Statement of Operations | Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | |||||||
(in millions) | ||||||||||
Unrealized derivative losses, net | ||||||||||
Non-regulated revenue | $ | (1 | ) | $ | (1 | ) | ||||
Interest expense | (34 | ) | (69 | ) | ||||||
Gain on sale of investments | (21 | ) | (21 | ) | ||||||
Foreign currency transaction gains (losses) | (17 | ) | (10 | ) | ||||||
Non-regulated cost of sales | (1 | ) | (2 | ) | ||||||
Income from continuing operations before taxes and equity in earnings of affiliates | (74 | ) | (103 | ) | ||||||
Income tax expense | 15 | 22 | ||||||||
Net equity in earnings of affiliates | (2 | ) | (4 | ) | ||||||
Income from continuing operations | (61 | ) | (85 | ) | ||||||
Income from continuing operations attributable to noncontrolling interests | 11 | 13 | ||||||||
Net income attributable to the AES Corporation | $ | (50 | ) | $ | (72 | ) | ||||
Amortization of defined benefit pension actuarial loss, net | ||||||||||
Non-regulated cost of sales | $ | (1 | ) | $ | (2 | ) | ||||
Regulated cost of sales | (19 | ) | (39 | ) | ||||||
Income from continuing operations before taxes and equity in earnings of affiliates | (20 | ) | (41 | ) | ||||||
Income tax expense | 7 | 14 | ||||||||
Income from continuing operations | (13 | ) | (27 | ) | ||||||
Income from continuing operations attributable to noncontrolling interests | 10 | 21 | ||||||||
Net income attributable to the AES Corporation | $ | (3 | ) | $ | (6 | ) | ||||
Available-for-sale securities, net | ||||||||||
Interest income | $ | (1 | ) | $ | (1 | ) | ||||
Net income attributable to The AES Corporation | $ | (1 | ) | $ | (1 | ) | ||||
Foreign currency translation adjustment, net | ||||||||||
Gain on sale of investment | $ | (4 | ) | $ | (1 | ) | ||||
Net loss from disposal and impairments of discontinued businesses | (35 | ) | (35 | ) | ||||||
Net income attributable to the AES Corporation | $ | (39 | ) | $ | (36 | ) | ||||
Total reclassifications for the period, net of income tax and noncontrolling interests | $ | (93 | ) | $ | (115 | ) |
(1) | Amounts in parentheses indicate debits to the condensed consolidated statement of operations. |
• | US — Generation; |
• | US — Utilities; |
• | Andes — Gener — Generation; |
• | Andes — Other — Generation; |
• | Brazil — Generation; |
• | Brazil — Utilities; |
• | MCAC — Generation; |
• | EMEA — Generation; and |
• | Asia — Generation. |
Revenue Three Months Ended June 30, | Total Revenue | Intersegment | External Revenue | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
US — Generation | $ | 190 | $ | 216 | $ | — | $ | — | $ | 190 | $ | 216 | ||||||||||||
US — Utilities | 674 | 678 | — | — | 674 | 678 | ||||||||||||||||||
Andes — Gener — Generation | 612 | 547 | — | (9 | ) | 612 | 538 | |||||||||||||||||
Andes — Other — Generation | 112 | 223 | (1 | ) | — | 111 | 223 | |||||||||||||||||
Brazil — Generation | 279 | 274 | (250 | ) | (248 | ) | 29 | 26 | ||||||||||||||||
Brazil — Utilities | 1,202 | 1,230 | — | — | 1,202 | 1,230 | ||||||||||||||||||
MCAC — Generation | 471 | 426 | — | — | 471 | 426 | ||||||||||||||||||
EMEA — Generation | 314 | 269 | (20 | ) | (8 | ) | 294 | 261 | ||||||||||||||||
Asia — Generation | 143 | 182 | — | — | 143 | 182 | ||||||||||||||||||
Corporate and Other | 343 | 310 | (1 | ) | (1 | ) | 342 | 309 | ||||||||||||||||
Total Revenue | $ | 4,340 | $ | 4,355 | $ | (272 | ) | $ | (266 | ) | $ | 4,068 | $ | 4,089 |
Revenue Six Months Ended June 30, | Total Revenue | Intersegment | External Revenue | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
US — Generation | $ | 360 | $ | 414 | $ | — | $ | — | $ | 360 | $ | 414 | ||||||||||||
US — Utilities | 1,396 | 1,410 | — | — | 1,396 | 1,410 | ||||||||||||||||||
Andes — Gener — Generation | 1,198 | 1,143 | — | (18 | ) | 1,198 | 1,125 | |||||||||||||||||
Andes — Other — Generation | 217 | 361 | (1 | ) | — | 216 | 361 | |||||||||||||||||
Brazil — Generation | 665 | 579 | (530 | ) | (530 | ) | 135 | 49 | ||||||||||||||||
Brazil — Utilities | 2,525 | 2,761 | — | — | 2,525 | 2,761 | ||||||||||||||||||
MCAC — Generation | 929 | 819 | (1 | ) | (1 | ) | 928 | 818 | ||||||||||||||||
EMEA — Generation | 665 | 746 | (28 | ) | (17 | ) | 637 | 729 | ||||||||||||||||
Asia — Generation | 277 | 364 | — | — | 277 | 364 | ||||||||||||||||||
Corporate and Other | 663 | 646 | (2 | ) | (2 | ) | 661 | 644 | ||||||||||||||||
Total Revenue | $ | 8,895 | $ | 9,243 | $ | (562 | ) | $ | (568 | ) | $ | 8,333 | $ | 8,675 |
Adjusted Pre-Tax Contribution(1) Three Months Ended June 30, | Total Adjusted Pre-tax Contribution | Intersegment | External Adjusted Pre-tax Contribution | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
US — Generation | $ | 41 | $ | 42 | $ | 2 | $ | 9 | $ | 43 | $ | 51 | |||||||||||||
US — Utilities | 24 | 32 | 1 | 1 | 25 | 33 | |||||||||||||||||||
Andes — Gener — Generation | 57 | 24 | 3 | (4 | ) | 60 | 20 | ||||||||||||||||||
Andes — Other — Generation | 28 | 25 | 1 | — | 29 | 25 | |||||||||||||||||||
Brazil — Generation | 66 | 45 | (61 | ) | (59 | ) | 5 | (14 | ) | ||||||||||||||||
Brazil — Utilities | 11 | 9 | 41 | 40 | 52 | 49 | |||||||||||||||||||
MCAC — Generation | 89 | 88 | 3 | 2 | 92 | 90 | |||||||||||||||||||
EMEA — Generation | 64 | 55 | (9 | ) | (2 | ) | 55 | 53 | |||||||||||||||||
Asia — Generation | 40 | 55 | — | 1 | 40 | 56 | |||||||||||||||||||
Corporate and Other | (149 | ) | (169 | ) | 19 | 12 | (130 | ) | (157 | ) | |||||||||||||||
Total Adjusted Pre-Tax Contribution | 271 | 206 | — | — | 271 | 206 |
Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates: | ||||||||
Non-GAAP Adjustments: | ||||||||
Unrealized derivative gains (losses) | 65 | (42 | ) | |||||
Unrealized foreign currency gains (losses) | (15 | ) | (41 | ) | ||||
Disposition/acquisition gains | 23 | 4 | ||||||
Impairment losses | — | (17 | ) | |||||
Loss on extinguishment of debt | (164 | ) | — | |||||
Pre-tax contribution | 180 | 110 | ||||||
Add: income from continuing operations before taxes, attributable to noncontrolling interests | 231 | 102 | ||||||
Less: Net equity in earnings of affiliates | 2 | 11 | ||||||
Income from continuing operations before taxes and equity in earnings of affiliates | $ | 409 | $ | 201 |
Adjusted Pre-Tax Contribution(1) Six Months Ended June 30, | Total Adjusted Pre-tax Contribution | Intersegment | External Adjusted Pre-tax Contribution | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
US — Generation | $ | 106 | $ | 78 | $ | 4 | $ | 20 | $ | 110 | $ | 98 | |||||||||||||
US — Utilities | 94 | 89 | 1 | 1 | 95 | 90 | |||||||||||||||||||
Andes — Gener — Generation | 131 | 119 | 5 | (10 | ) | 136 | 109 | ||||||||||||||||||
Andes — Other — Generation | 34 | 41 | 2 | 1 | 36 | 42 | |||||||||||||||||||
Brazil — Generation | 106 | 97 | (128 | ) | (127 | ) | (22 | ) | (30 | ) | |||||||||||||||
Brazil — Utilities | 13 | 65 | 86 | 86 | 99 | 151 | |||||||||||||||||||
MCAC — Generation | 137 | 159 | 6 | 4 | 143 | 163 | |||||||||||||||||||
EMEA — Generation | 158 | 242 | (11 | ) | (16 | ) | 147 | 226 | |||||||||||||||||
Asia — Generation | 71 | 87 | 1 | 1 | 72 | 88 | |||||||||||||||||||
Corporate and Other | (314 | ) | (358 | ) | 34 | 40 | (280 | ) | (318 | ) | |||||||||||||||
Total Adjusted Pre-Tax Contribution | $ | 536 | $ | 619 | — | — | 536 | 619 |
Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates: | ||||||||
Non-GAAP Adjustments: | ||||||||
Unrealized derivative gains (losses) | 52 | (72 | ) | |||||
Unrealized foreign currency gains (losses) | (42 | ) | (12 | ) | ||||
Disposition/acquisition gains | 26 | 182 | ||||||
Impairment losses | (48 | ) | (75 | ) | ||||
Loss on extinguishment of debt | (207 | ) | — | |||||
Pre-tax contribution | 317 | 642 | ||||||
Add: income from continuing operations before taxes, attributable to noncontrolling interests | 397 | 352 | ||||||
Less: Net equity in earnings of affiliates | 6 | 24 | ||||||
Income from continuing operations before taxes and equity in earnings of affiliates | $ | 708 | $ | 970 |
(1) | Adjusted Pre-tax contribution in each segment before intersegment eliminations includes the effect of intercompany transactions with other segments except for interest, charges for certain management fees and the write-off of intercompany balances. |
Total Assets | ||||||||
June 30, 2013 | December 31, 2012 | |||||||
(in millions) | ||||||||
Assets | ||||||||
US — Generation | $ | 3,157 | $ | 3,259 | ||||
US — Utilities | 7,427 | 7,534 | ||||||
Andes — Gener — Generation | 5,871 | 5,820 | ||||||
Andes — Other — Generation | 754 | 799 | ||||||
Brazil — Generation | 1,446 | 1,590 | ||||||
Brazil — Utilities | 7,566 | 8,120 | ||||||
MCAC — Generation | 4,434 | 4,293 | ||||||
EMEA — Generation | 4,634 | 4,578 | ||||||
Asia — Generation | 2,708 | 2,625 | ||||||
Discontinued businesses | — | 202 | ||||||
Corporate and Other & eliminations | 2,839 | 3,010 | ||||||
Total Assets | $ | 40,836 | $ | 41,830 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in millions) | |||||||||||||||||
Contract termination | $ | — | $ | — | $ | 60 | $ | — | |||||||||
Gain on sale of assets | 4 | 1 | 5 | 3 | |||||||||||||
Other | 9 | 13 | 16 | 29 | |||||||||||||
Total other income | $ | 13 | $ | 14 | $ | 81 | $ | 32 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in millions) | |||||||||||||||||
Loss on sale and disposal of assets | $ | 10 | $ | 11 | $ | 25 | $ | 35 | |||||||||
Contract termination | — | — | 7 | — | |||||||||||||
Other | 8 | 4 | 14 | 8 | |||||||||||||
Total other expense | $ | 18 | $ | 15 | $ | 46 | $ | 43 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions) | ||||||||||||||||
Beaver Valley | $ | — | $ | — | $ | 46 | $ | — | ||||||||
Kelanitissa | — | 7 | — | 12 | ||||||||||||
St. Patrick | — | 11 | — | 11 | ||||||||||||
Other | — | — | 2 | 5 | ||||||||||||
Total asset impairment expense | $ | — | $ | 18 | $ | 48 | $ | 28 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions) | ||||||||||||||||
Revenue | $ | 40 | $ | 113 | $ | 187 | $ | 304 | ||||||||
Income (loss) from operations of discontinued businesses, before income tax | $ | 1 | $ | (2 | ) | $ | 14 | $ | 6 | |||||||
Income tax benefit (expense) | (1 | ) | (3 | ) | — | (5 | ) | |||||||||
Income (loss) from operations of discontinued businesses, after income tax | $ | — | $ | (5 | ) | $ | 14 | $ | 1 | |||||||
Net loss (gain) from disposal and impairments of discontinued businesses, after income tax | $ | 3 | $ | 75 | $ | (33 | ) | $ | 70 |
Three Months Ended June 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Income | Shares | $ per Share | Income | Shares | $ per Share | |||||||||||||||||
(in millions except per share data) | ||||||||||||||||||||||
BASIC EARNINGS PER SHARE | ||||||||||||||||||||||
Income from continuing operations attributable to The AES Corporation common stockholders | $ | 164 | 747 | $ | 0.22 | $ | 70 | 764 | $ | 0.09 | ||||||||||||
EFFECT OF DILUTIVE SECURITIES | ||||||||||||||||||||||
Stock options | — | — | — | — | 1 | — | ||||||||||||||||
Restricted stock units | — | 4 | — | — | 3 | — | ||||||||||||||||
DILUTED EARNINGS PER SHARE | $ | 164 | 751 | $ | 0.22 | $ | 70 | 768 | $ | 0.09 |
Six Months Ended June 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Income | Shares | $ per Share | Income | Shares | $ per Share | |||||||||||||||||
(in millions except per share data) | ||||||||||||||||||||||
BASIC EARNINGS PER SHARE | ||||||||||||||||||||||
Income from continuing operations attributable to The AES Corporation common stockholders | $ | 270 | 746 | $ | 0.36 | $ | 411 | 765 | $ | 0.54 | ||||||||||||
EFFECT OF DILUTIVE SECURITIES | ||||||||||||||||||||||
Stock options | — | 1 | — | — | 1 | — | ||||||||||||||||
Restricted stock units | — | 3 | — | — | 3 | — | ||||||||||||||||
DILUTED EARNINGS PER SHARE | $ | 270 | 750 | $ | 0.36 | $ | 411 | 769 | $ | 0.54 |
• | the final maturity date of the revolving credit loan facility is extended to July 26, 2018 from January 29, 2015; |
• | the interest rate margin applicable to the revolving credit loan facility is based on the credit rating assigned to the loans under the credit agreement, with pricing currently at LIBOR + 2.25%, a 0.75% decrease; |
• | there is an un-drawn fee of 0.50% per annum; and |
• | the subsidiary guarantors party to the Existing Credit Agreement are released from their obligations under the Existing Credit Agreement and have no obligations under the Sixth Amended and Restated Credit Agreement. |
• | US SBU |
• | US — Generation |
• | US — Utilities |
• | Andes SBU |
• | Andes — Generation |
• | Brazil SBU |
• | Brazil — Generation |
• | Brazil — Utilities |
• | MCAC SBU |
• | MCAC — Generation |
• | EMEA SBU |
• | EMEA — Generation |
• | Asia SBU |
• | Asia — Generation |
• | Management of our portfolio of generation and utility businesses to create value for our stakeholders, including customers and shareholders, through safe, reliable, and sustainable operations and effective cost management; |
• | Driving our operating business to manage capital more effectively and to increase the amount of discretionary cash available for deployment into debt repayment, growth investments, shareholder dividends and share buybacks; |
• | Realignment of our geographic focus. To this end, we will continue to exit markets where we do not have a competitive advantage or where we are unable to earn a fair risk-adjusted return relative to monetization alternatives. In addition, we will focus our growth investments on platform expansions or opportunities to expand our existing operations; and |
• | Reduce the cash flow and earnings volatility of our businesses by proactively managing our currency, commodity and political risk exposures, mostly through contractual and regulatory mechanisms, as well as commercial hedging activities. We also will continue to limit our risk by utilizing non-recourse project financing for the majority of our businesses. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2013 | 2012 | Change | % Change | 2013 | 2012 | Change | % Change | ||||||||||||||||||||||
Diluted earnings per share from continuing operations | $ | 0.22 | $ | 0.09 | $ | 0.13 | 144 | % | $ | 0.36 | $ | 0.54 | $ | -0.18 | -33 | % | |||||||||||||
Adjusted earnings per share (a non-GAAP measure)(1) | $ | 0.32 | $ | 0.18 | $ | 0.14 | 78 | % | $ | 0.58 | $ | 0.55 | $ | 0.03 | 5 | % |
(1) | See reconciliation and definition under Non-GAAP Measure. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||
($ in millions) | ||||||||||||||||||||||
Revenue | $ | 4,068 | $ | 4,089 | -1 | % | $ | 8,333 | $ | 8,675 | -4 | % | ||||||||||
Gross margin | $ | 918 | $ | 693 | 32 | % | $ | 1,673 | $ | 1,765 | -5 | % | ||||||||||
Net income attributable to The AES Corporation | $ | 167 | $ | 140 | 19 | % | $ | 249 | $ | 481 | -48 | % | ||||||||||
Adjusted pre-tax contribution (a non-GAAP measure)(1) | $ | 271 | $ | 206 | 32 | % | $ | 536 | $ | 619 | -13 | % | ||||||||||
Net cash provided by operating activities | $ | 567 | $ | 580 | -2 | % | $ | 1,185 | $ | 1,114 | 6 | % | ||||||||||
Dividends declared per common share | $ | 0.08 | $ | — | N/A | $ | 0.08 | $ | — | N/A |
(1) | See reconciliation and definition below under Non-GAAP Measures. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
Results of operations | 2013 | 2012 | $ change | % change | 2013 | 2012 | $ change | % change | ||||||||||||||||||||||
($ in millions, except per share amounts) | ||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
US — Generation | $ | 190 | $ | 216 | $ | (26 | ) | -12 | % | $ | 360 | $ | 414 | $ | (54 | ) | -13 | % | ||||||||||||
US — Utilities | 674 | 678 | (4 | ) | -1 | % | 1,396 | 1,410 | (14 | ) | -1 | % | ||||||||||||||||||
Andes — Generation | 724 | 770 | (46 | ) | -6 | % | 1,415 | 1,504 | (89 | ) | -6 | % | ||||||||||||||||||
Brazil — Generation | 279 | 274 | 5 | 2 | % | 665 | 579 | 86 | 15 | % | ||||||||||||||||||||
Brazil — Utilities | 1,202 | 1,230 | (28 | ) | -2 | % | 2,525 | 2,761 | (236 | ) | -9 | % | ||||||||||||||||||
MCAC — Generation | 471 | 426 | 45 | 11 | % | 929 | 819 | 110 | 13 | % | ||||||||||||||||||||
EMEA — Generation | 314 | 269 | 45 | 17 | % | 665 | 746 | (81 | ) | -11 | % | |||||||||||||||||||
Asia — Generation | 143 | 182 | (39 | ) | -21 | % | 277 | 364 | (87 | ) | -24 | % | ||||||||||||||||||
Corporate and Other(1) | 343 | 310 | 33 | 11 | % | 663 | 646 | 17 | 3 | % | ||||||||||||||||||||
Intersegment eliminations(2) | (272 | ) | (266 | ) | (6 | ) | -2 | % | (562 | ) | (568 | ) | 6 | 1 | % | |||||||||||||||
Total Revenue | 4,068 | 4,089 | (21 | ) | -1 | % | 8,333 | 8,675 | (342 | ) | -4 | % | ||||||||||||||||||
Gross Margin: | ||||||||||||||||||||||||||||||
US — Generation | $ | 49 | $ | 59 | $ | (10 | ) | -17 | % | $ | 80 | $ | 112 | $ | (32 | ) | -29 | % | ||||||||||||
US — Utilities | 99 | 92 | 7 | 8 | % | 217 | 206 | 11 | 5 | % | ||||||||||||||||||||
Andes — Generation | 149 | 99 | 50 | 51 | % | 283 | 266 | 17 | 6 | % | ||||||||||||||||||||
Brazil — Generation | 238 | 197 | 41 | 21 | % | 401 | 422 | (21 | ) | -5 | % | |||||||||||||||||||
Brazil — Utilities | 75 | (27 | ) | 102 | 378 | % | 115 | 56 | 59 | 105 | % | |||||||||||||||||||
MCAC — Generation | 123 | 122 | 1 | 1 | % | 210 | 227 | (17 | ) | -7 | % | |||||||||||||||||||
EMEA — Generation | 102 | 83 | 19 | 23 | % | 223 | 330 | (107 | ) | -32 | % | |||||||||||||||||||
Asia — Generation | 48 | 59 | (11 | ) | -19 | % | 89 | 113 | (24 | ) | -21 | % | ||||||||||||||||||
Corporate and Other(1) | 20 | (3 | ) | 23 | 767 | % | 27 | 20 | 7 | 35 | % | |||||||||||||||||||
Intersegment eliminations(2) | 15 | 12 | 3 | 25 | % | 28 | 13 | 15 | 115 | % | ||||||||||||||||||||
Total Gross Margin | 918 | 693 | 225 | 32 | % | 1,673 | 1,765 | (92 | ) | -5 | % | |||||||||||||||||||
General and administrative expenses | (59 | ) | (74 | ) | 15 | 20 | % | (120 | ) | (161 | ) | 41 | 25 | % | ||||||||||||||||
Interest expense | (346 | ) | (384 | ) | 38 | 10 | % | (723 | ) | (800 | ) | 77 | 10 | % | ||||||||||||||||
Interest income | 63 | 82 | (19 | ) | -23 | % | 129 | 173 | (44 | ) | -25 | % | ||||||||||||||||||
Loss on extinguishment of debt | (165 | ) | — | (165 | ) | NA | (212 | ) | — | (212 | ) | NA | ||||||||||||||||||
Other expense | (18 | ) | (15 | ) | (3 | ) | -20 | % | (46 | ) | (43 | ) | (3 | ) | -7 | % | ||||||||||||||
Other income | 13 | 14 | (1 | ) | -7 | % | 81 | 32 | 49 | 153 | % | |||||||||||||||||||
Gain on sale of investments | 20 | 5 | 15 | 300 | % | 23 | 184 | (161 | ) | -88 | % | |||||||||||||||||||
Asset impairment expense | — | (18 | ) | 18 | 100 | % | (48 | ) | (28 | ) | (20 | ) | -71 | % | ||||||||||||||||
Foreign currency transaction losses | (17 | ) | (101 | ) | 84 | 83 | % | (49 | ) | (102 | ) | 53 | 52 | % | ||||||||||||||||
Other non-operating expense | — | (1 | ) | 1 | 100 | % | — | (50 | ) | 50 | 100 | % | ||||||||||||||||||
Income tax expense | (81 | ) | (75 | ) | (6 | ) | -8 | % | (163 | ) | (343 | ) | 180 | 52 | % | |||||||||||||||
Net equity in earnings of affiliates | 2 | 11 | (9 | ) | -82 | % | 6 | 24 | (18 | ) | -75 | % | ||||||||||||||||||
Income from continuing operations | 330 | 137 | 193 | 141 | % | 551 | 651 | (100 | ) | -15 | % | |||||||||||||||||||
Income (loss) from operations of discontinued businesses | — | (5 | ) | 5 | 100 | % | 14 | 1 | 13 | NM | ||||||||||||||||||||
Net gain (loss) from disposal and impairments of discontinued businesses | 3 | 75 | (72 | ) | -96 | % | (33 | ) | 70 | (103 | ) | -147 | % | |||||||||||||||||
Net income | 333 | 207 | 126 | 61 | % | 532 | 722 | (190 | ) | -26 | % | |||||||||||||||||||
Noncontrolling interests: | ||||||||||||||||||||||||||||||
Income from continuing operations attributable to noncontrolling interests | (166 | ) | (67 | ) | (99 | ) | -148 | % | (281 | ) | (240 | ) | (41 | ) | -17 | % | ||||||||||||||
Income from discontinued operations attributable to noncontrolling interests | — | — | — | NA | (2 | ) | (1 | ) | (1 | ) | -100 | % | ||||||||||||||||||
Net income attributable to The AES Corporation | $ | 167 | $ | 140 | $ | 27 | 19 | % | $ | 249 | $ | 481 | $ | (232 | ) | -48 | % | |||||||||||||
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS: | ||||||||||||||||||||||||||||||
Income from continuing operations, net of tax | $ | 164 | $ | 70 | $ | 94 | 134 | % | $ | 270 | $ | 411 | $ | (141 | ) | -34 | % | |||||||||||||
Income (loss) from discontinued operations, net of tax | 3 | 70 | (67 | ) | -96 | % | (21 | ) | 70 | (91 | ) | -130 | % | |||||||||||||||||
Net income | $ | 167 | $ | 140 | $ | 27 | 19 | % | $ | 249 | $ | 481 | $ | (232 | ) | -48 | % |
(1) | Corporate and other includes revenue and gross margin from our utility businesses in El Salvador and Africa. |
(2) | Represents intersegment eliminations of revenue and gross margin primarily related to transfers of electricity from Tietê (Brazil — Generation) to Eletropaulo (Brazil — Utilities). |
• | US — Overall unfavorable impact of $30 million, or 3%, driven by lower capacity revenue, lower average wholesale prices, and lower average retail prices due to downward price pressure as a result of generating services competition at DPL in Ohio, the impact of the PPA buyout at Beaver Valley in Pennsylvania, and the temporary operations of two generating units at Huntington Beach at Southland in 2012 that did not recur in 2013, partially offset by higher wholesale volume at DPL driven by switching of regulated customers as well as increased generation available from DPL's co-owned and operated plants. |
• | Andes — Overall unfavorable impact of $8 million, or 1%, driven by lower prices due to the change in regulatory framework as a result of Resolution 95 whereby alternate fuel costs are no longer recognized as revenue as well as lower generation in Argentina, lower spot prices in Chile, and lower generation at Chivor in Colombia due to lower water inflows, partially offset by higher spot and contract sales in Chile, higher spot and contract prices at Chivor, and lower outages in Argentina. |
• | Brazil — Overall favorable impact of $60 million, or 4%, primarily driven by higher tariffs compared to the 2012 tariff reset provision at Eletropaulo and higher prices at Tietê due to the annual PPA indexation in July 2012, partially offset by lower tariffs at Sul mainly driven by lower pass through of energy and other costs. |
• | MCAC — Overall favorable impact of $46 million, or 7%, driven by higher spot and contract sales in the Dominican Republic due to increased demand and higher volume of gas sales to third parties, and higher prices at Puerto Rico and Merida in Mexico primarily due to favorable fuel prices. |
• | EMEA — Overall favorable impact of $72 million, or 20%, driven by the favorable impact of a mark-to-market adjustment primarily due to a derivative loss in 2012 at Sonel, new business at Kribi in Cameroon which commenced operations in May 2013, increased volume and higher prices at Kilroot and Ballylumford in the U.K., and higher electricity sales in Kazakhstan as a result of higher inflows and increased capacity. |
• | Asia — Overall unfavorable impact of $39 million, or 21%, driven by lower prices in the Philippines and lower volume at Kelanitissa in Sri Lanka, partially offset by higher contract demand in the Philippines. |
• | US — Overall unfavorable impact of $3 million, or 2%, driven by lower retail margin due to customer switching and lower capacity margin at DPL as well as the temporary operations at Southland as discussed above, partially offset by lower depreciation and amortization expense as well as higher wholesale volume and the favorable impact of mark-to-market adjustments on derivative contracts at DPL. |
• | Andes — Overall favorable impact of $56 million, or 57%, driven by the commencement of operations at Ventanas IV in March 2013 in Chile, higher availability in Chile and Argentina, and higher spot prices at Chivor, partially offset by lower generation at Chivor as a result of lower water inflows and in Chile due to lower gas availability, lower prices in Chile and Argentina as discussed above and higher fixed costs. |
• | Brazil — Overall favorable impact of $161 million, or 94%, driven by the tariff impact as discussed above as well as lower fixed costs due primarily to the reversal of bad debt allowance at Eletropaulo and the extinguishment of a liability at Uruguaiana, partially offset by lower tariffs at Sul. |
• | MCAC — Overall favorable impact of $13 million, or 10%, driven by higher spot sales and higher contract prices in the Dominican Republic, reimbursement costs in Panama resulting from a settlement with the EPC contractor over the Esti tunnel collapse, and higher rates at El Salvador mainly due to a tariff reset approved by the regulator at the beginning of 2013, partially offset by an increase in purchases of replacement energy at higher prices in Panama due to lower hydrology. |
• | EMEA — Overall favorable impact of $29 million, or 42%, driven by the favorable impact of a mark-to-market derivative adjustment at Sonel and new operations at Kribi in Cameroon as discussed above, as well as lower outages and lower fixed costs at Ballylumford and higher energy prices at Kilroot in the U.K. |
• | Asia — Overall unfavorable impact of $11 million, or 19%, driven by lower contract and spot prices in the Philippines, partially offset by higher contract demand. |
• | the increase in gross margin as described above; |
• | lower foreign currency losses; |
• | a lower effective tax rate; and |
• | lower interest expense due to gains resulting from ineffectiveness on interest rate swaps at Puerto Rico. |
• | the loss on the early extinguishment of debt at the Parent Company; and |
• | the 2012 gain from the disposal of the discontinued Red Oak and Ironwood businesses. |
• | a decrease of $426 million in accounts payable and other current liabilities, primarily due to reduced operations and the extinguishment of a liability based on a favorable arbitration decision at Uruguaiana, a decrease in current regulatory liabilities at Eletropaulo, higher interest payments at the Parent Company and DPL and higher energy purchases at Tietê; |
• | an increase of $102 million in other assets primarily due to an increase in noncurrent regulatory assets at Eletropaulo, resulting from higher priced energy purchases which are recoverable through future tariffs; partially offset by |
• | a decrease of $247 million in prepaid expenses and other current assets due to a decrease in current regulatory assets, for the recovery of prior period tariff cycle energy purchases and regulatory charges at Eletropaulo and in a receivable from the regulator at Sul; and |
• | a decrease of $149 million in accounts receivable due to the reduced operations at Uruguaiana and a lower tariff at Eletropaulo. |
• | an increase of $204 million in other liabilities primarily due to an increase in long-term regulatory liabilities related to the tariff reset at Eletropaulo; |
• | a decrease of $135 million in prepaid expenses and other current assets, including the recovery of value added tax on a construction project in Chile and the use of prepaid fuel at one of our plants in the Dominican Republic; partially offset by |
• | an increase of $137 million in other assets mainly due to an increase in long-term regulatory assets at Eletropaulo, resulting from higher priced energy purchases and regulatory charges compared with the ones recovered through the current tariff; and |
• | a decrease of $88 million primarily for the payment of income taxes in excess of the accrual of new tax liabilities. |
• | US — Overall unfavorable impact of $68 million, or 4%, driven by lower capacity revenue, lower average wholesale prices, and lower average retail prices due to downward price pressure as a result of generating services competition at DPL in Ohio, the impact of the PPA buyout at Beaver Valley in Pennsylvania, increased outages at Hawaii, and the temporary operations of two generating units at Huntington Beach at Southland in 2012 that did not recur in 2013, partially offset by higher wholesale volume at DPL in Ohio and IPL in Indiana. |
• | Andes — Overall unfavorable impact of $33 million, or 2%, driven by lower prices due to the change in regulatory framework as a result of Resolution 95, whereby alternate fuel costs are no longer recognized as revenue as well as lower generation in Argentina, lower contract and spot prices in Chile, and lower generation at Chivor in Colombia due to lower water inflows, partially offset by higher spot and contract prices at Chivor, higher spot and contract sales in Chile, and lower outages in Argentina in 2013. |
• | Brazil — Overall favorable impact of $155 million, or 5%, driven by the temporary restart of operations at Uruguaiana in the first quarter of 2013, higher tariffs mainly due to higher energy pass through costs and higher tariffs compared to the 2012 tariff reset provision at Eletropaulo, and higher prices at Tietê due to the annual PPA indexation in July 2012, partially offset by lower tariffs at Sul and overall lower demand and volume at our Brazil Utilities. |
• | MCAC — Overall favorable impact of $117 million, or 9%, driven by higher contract and spot sales in the Dominican Republic from increased demand and higher international gas prices and gas sales to third parties, higher volume and rates at Merida in Mexico and Puerto Rico, as well as higher rates in El Salvador mainly due to a tariff increase approved by the regulator in the beginning of 2013. |
• | EMEA — Overall unfavorable impact of $76 million, or 8%, driven by the sale of 80% of our ownership and a non-recurring favorable arbitration settlement in Cartagena in February 2012, reduction in capacity remuneration in line with the PPA at Ballylumford beginning in April 2012, and lower volume at Maritza mainly due to lower net capacity factor, partially offset by increased volume and higher prices at Kilroot and lower outages at Ballylumford in the U.K., as well as higher electricity sales from higher inflows and increased capacity in Kazakhstan. |
• | Asia — Overall unfavorable impact of $87 million, or 24%, driven by lower volume at Kelanitissa in Sri Lanka and lower rates in the Philippines, partially offset by higher contract demand. |
• | US — Overall unfavorable impact of $21 million, or 7%, driven by lower retail margin due to customer switching and lower capacity margin at DPL, increased outages and related fixed costs at Hawaii, the PPA buyout at Beaver Valley, partially offset by lower depreciation and amortization expense and higher wholesale volume at DPL and IPL. |
• | Andes — Overall favorable impact of $25 million, or 9%, driven by new operations of Ventanas IV in Chile which commenced operations in March 2013, higher spot and contract prices at Chivor, and higher availability in Chile and Argentina, partially offset by lower generation at Chivor as a result of lower water inflows and in Chile due to lower gas availability, lower prices in Chile and Argentina as discussed above and higher fixed costs. |
• | Brazil — Overall favorable impact of $82 million, or 17%, driven by the tariff impact at Eletropaulo as discussed above, the temporary restart of operations in the first quarter of 2013 and extinguishment of a liability at Uruguaiana, and lower fixed costs across the region, partially offset by lower tariff and demand at Sul as well as lower water inflows in the system resulting in higher energy purchases at higher spot prices due to shared hydrologic risk requirement among all hydro generators at Tietê. |
• | MCAC — Overall unfavorable impact of $3 million, or 1%, driven by higher replacement purchase energy at higher spot prices in Panama caused by lower hydrology, partially offset by higher contract and spot sales in the Dominican Republic as a result of increased demand and higher international gas prices and gas sales to third parties, reimbursement costs in Panama resulting from a settlement with the EPC contractor over the Esti tunnel collapse and higher tariff in El Salvador as discussed above. |
• | EMEA — Overall unfavorable impact of $115 million, or 35%, driven by the sale of 80% of our ownership and a non-recurring favorable arbitration settlement in Cartagena in February 2012 as well as lower capacity prices at Ballylumford as discussed above, partially offset by increased volume and higher prices at Kilroot and lower outages at Ballylumford in the U.K. as well as new operations at Kribi in Cameroon. |
• | Asia — Overall unfavorable impact of $24 million, or 21%, driven by lower prices in the Philippines and the favorable impact of a mark-to-market commodity derivative adjustment in 2012, partially offset by higher contract demand. |
• | the loss on the early extinguishment of debt at the Parent Company and at Masinloc; |
• | lower gain on sale of investments recorded in 2013 on the sale of our remaining 20% interest in Cartagena compared to the prior year gain recorded from the sale of 80% of our interest in Cartagena in the first quarter of 2012; |
• | the decrease in gross margin as described above; and |
• | losses in 2013 from the disposal and impairment of the discontinued Ukraine Utility businesses compared to the gain in 2012 from the disposal of the discontinued Red Oak and Ironwood businesses. |
• | lower tax expense in 2013 due to lower income before tax and a decrease in the effective tax rate from 35% to 23%; |
• | lower interest expense primarily due to gains resulting from ineffectiveness on interest rate swaps at Puerto Rico; |
• | lower foreign currency losses; |
• | a decrease in other non-operating expense due to the prior year other-than-temporary impairments of equity method investments in China and France; |
• | higher other income due to the gain arising from the termination of the PPA at Beaver Valley; and |
• | lower general and administrative expenses. |
Three Months Ended June 30, 2013 | Three Months Ended June 30, 2012 | Six Months Ended June 30, 2013 | Six Months Ended June 30, 2012 | |||||||||||||||||||||||||||||
Net of NCI(1) | Per Share (Diluted) Net of NCI(1) and Tax | Net of NCI(1) | Per Share (Diluted) Net of NCI(1) and Tax | Net of NCI(1) | Per Share (Diluted) Net of NCI(1) and Tax | Net of NCI(1) | Per Share (Diluted) Net of NCI(1) and Tax | |||||||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||||||||||||||
Income from continuing operations attributable to AES and Diluted EPS | $ | 164 | $ | 0.22 | $ | 70 | $ | 0.09 | $ | 270 | $ | 0.36 | $ | 411 | $ | 0.54 | ||||||||||||||||
Add back income tax expense from continuing operations attributable to AES | 16 | 40 | 47 | 231 | ||||||||||||||||||||||||||||
Pre-tax contribution | $ | 180 | $ | 110 | $ | 317 | $ | 642 | ||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||
Unrealized derivative (gains) losses(2) | $ | (65 | ) | $ | (0.06 | ) | $ | 42 | $ | 0.04 | $ | (52 | ) | $ | (0.05 | ) | $ | 72 | $ | 0.07 | ||||||||||||
Unrealized foreign currency transaction (gains) losses(3) | 15 | 0.02 | 41 | 0.04 | 42 | 0.04 | 12 | 0.01 | ||||||||||||||||||||||||
Disposition/ acquisition (gains) | (23 | ) | (0.03 | ) | (4) | (4 | ) | — | (5) | (26 | ) | (0.03 | ) | (6) | (182 | ) | (0.14 | ) | (7) | |||||||||||||
Impairment losses | — | — | 17 | 0.01 | (8) | 48 | 0.05 | (9) | 75 | 0.07 | (10) | |||||||||||||||||||||
Loss on extinguishment of debt | 164 | 0.17 | (11) | — | — | 207 | 0.21 | (12) | — | — | ||||||||||||||||||||||
Adjusted pre-tax contribution and Adjusted EPS | $ | 271 | $ | 0.32 | $ | 206 | $ | 0.18 | $ | 536 | $ | 0.58 | $ | 619 | $ | 0.55 |
(1) | NCI is defined as Noncontrolling Interests |
(2) | Unrealized derivative (gains) losses were net of income tax per share of $(0.02) and $0.02 in the three months ended June 30, 2013 and 2012, and of $(0.02) and $0.03 in the six months ended June 30, 2013 and 2012, respectively. |
(3) | Unrealized foreign currency transaction (gains) losses were net of income tax per share of $0.00 and $0.02 in the three months ended June 30, 2013 and 2012, and of $0.02 and $0.00 in the six months ended June 30, 2013 and 2012, respectively. |
(4) | Amount primarily relates to the gain from the sale of the remaining 20% interest in Cartagena for $20 million ($15 million, or $0.02 per share, net of income tax per share of $0.01). |
(5) | Amount primarily relates to the gain from the sale of St. Patrick, for $4 million ($4 million, or $0.00 per share, net of income tax per share of $0.00). |
(6) | Amount primarily relates to the gain from the sale of the remaining 20% interest in Cartagena for $20 million ($15 million, or $0.02 per share, net of income tax per share of $0.01), the gain from the sale of wind turbines for $3 million ($2 million, or $0.00 per share, net of income tax per share of $0.00) as well as the gain from the sale of Chengdu, an equity method investment in China for $3 million ($2 million, or $0.00 per share, net of income tax per share of $0.00). |
(7) | Amount primarily relates to the gain from the sale of 80% of our interest in Cartagena for $178 million ($106 million, or $0.14 per share, net of income tax per share of $0.09). |
(8) | Amount includes impairments at our St. Patrick business of $11 million ($7 million, or $0.01 per share, net of income tax per share of $0.00) and Kelanitissa of $7 million ($4 million, or $0.01 per share, net of noncontrolling interest of $1 million and income tax per share of $0.00). |
(9) | Amount primarily relates to asset impairments at Beaver Valley of $46 million ($34 million, or $0.05 per share, net of income tax per share of $0.02). |
(10) | Amount primarily relates to the other-than-temporary impairment of equity method investments in China of $32 million ($26 million, or $0.03 per share, net of income tax per share of $0.01), and at InnoVent of $17 million ($12 million, or $0.02 per share, net of income tax per share of $0.01), and asset impairments at St. Patrick of $11 million ($7 million or $0.01 per share, net of income tax per share of $0.00) and at Kelanitissa of $12 million ($8 million, or $0.01 per share, net of non-controlling interest of $1 million and income tax per share of $0.00). |
(11) | Amount primarily relates to the loss on early retirement of debt at Corporate of $163 million ($121 million, or $0.16 per share, net of income tax per share of $0.06). |
(12) | Amount primarily relates to the loss on early retirement of debt at Corporate of $165 million ($123 million, or $0.16 per share, net of income tax per share of $0.06), and loss on early retirement of debt at Masinloc of $43 million ($29 million, or $0.04 per share, net of noncontrolling interest of $3 million and of income tax per share of $0.01). |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||
($’s in millions) | ||||||||||||||||||||||
Revenue | $ | 190 | $ | 216 | -12 | % | $ | 360 | $ | 414 | -13 | % | ||||||||||
Gross Margin | $ | 49 | $ | 59 | -17 | % | $ | 80 | $ | 112 | -29 | % |
• | a decrease of $17 million at Beaver Valley in Pennsylvania, as a result of the early termination of the PPA with the offtaker in January 2013; and |
• | a decrease of $11 million at Southland in California, primarily due to the short-term restart of two generating units at Huntington Beach in May 2012. |
• | a decrease of $9 million at Southland as discussed above; and |
• | a decrease of $4 million at Beaver Valley as discussed above. |
• | a decrease of $32 million at Beaver Valley, as a result of the early termination of the PPA with the offtaker in January 2013; |
• | a decrease of $12 million at Southland, primarily due to the short-term restart of two generating units at Huntington Beach in May 2012; and |
• | a decrease of $11 million at Hawaii, primarily due to lower availability as a result of outages. |
• | a decrease of $19 million at Hawaii, primarily due to lower availability and increased fixed costs as a result of outages; |
• | a decrease of $11 million at Beaver Valley as discussed above; and |
• | a decrease of $5 million at Southland as discussed above. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||
($’s in millions) | ||||||||||||||||||||||
Revenue | $ | 674 | $ | 678 | -1 | % | $ | 1,396 | $ | 1,410 | -1 | % | ||||||||||
Gross Margin | $ | 99 | $ | 92 | 8 | % | $ | 217 | $ | 206 | 5 | % |
• | lower prices of $58 million at DPL, in Ohio, primarily due to lower average wholesale prices, lower capacity revenues, and lower average retail prices due to downward price pressure as a result of generation services competition. |
• | higher volume of $50 million at DPL, primarily due to increased energy available for wholesale sales caused by switching of regulated customers to other suppliers as well as increased generation available from DPL's co-owned and operated plants. |
• | lower depreciation and amortization expense of $23 million at DPL primarily because DPL's ESP intangible asset was fully amortized at the end of 2012; |
• | higher wholesale margins at DPL and IPL of $23 million and $7 million, respectively, primarily due to increased volumes as described above; and |
• | an increase of $13 million at DPL due to the favorable impact of mark-to-market adjustments on derivative contracts. |
• | lower retail margin at IPL of $7 million primarily due to the mild early summer temperatures in 2013; |
• | lower capacity margins at DPL of $9 million primarily due to lower capacity prices in the PJM market in 2013; and |
• | lower retail margin at DPL of $37 million primarily due to DP&L customers switching to DPL Inc.'s competitive retail supplier or other third parties. |
• | lower prices of $127 million at DPL, primarily due to lower capacity revenues, lower average wholesale prices, and lower average retail prices due to downward price pressure as a result of generation services competition. |
• | higher volume of $89 million at DPL, primarily due to increased wholesale volumes due to more energy available for wholesale sales caused by switching of regulated customers to other suppliers as well as increased generation available from DPL's co-owned and operated plants; and |
• | higher volume of $24 million at IPL, due to increased wholesale volumes resulting from increases in natural gas prices, which improved IPL's ability to compete in the wholesale market. |
• | lower depreciation and amortization expense of $49 million at DPL primarily because DPL's ESP intangible asset was fully amortized at the end of 2012; and |
• | higher wholesale margins at DPL and IPL of $45 million and $10 million, respectively, primarily due to increased volumes as described above. |
• | lower retail margin at DPL of $78 million primarily due to DP&L customers switching to DPL Inc.'s competitive retail supplier or other third parties; and |
• | lower capacity margins at DPL of $15 million primarily due to lower capacity prices in the PJM market in 2013. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||
($’s in millions) | ||||||||||||||||||||||
Revenue | $ | 724 | $ | 770 | -6 | % | $ | 1,415 | $ | 1,504 | -6 | % | ||||||||||
Gross Margin | $ | 149 | $ | 99 | 51 | % | $ | 283 | $ | 266 | 6 | % |
• | lower prices in Argentina of $79 million primarily due to a change in the regulatory framework as a result of Resolution 95 whereby alternate fuel costs are no longer recognized as revenue, See Note 6— Long-term Financing Receivables; |
• | lower generation at Argentina of $53 million driven by lower dispatch; |
• | lower spot prices in the SIC market at Gener of $35 million; and |
• | lower generation at Chivor in Colombia of $7 million as a result of lower inflows. |
• | higher volume in Chile of $57 million due to higher spot and contract sales in the SIC market; |
• | higher contract and spot prices at Chivor in Colombia of $55 million due to pressure from lower water inflows; and |
• | lower outages at Argentina of $54 million. |
• | new business in Chile of $58 million due to the commencement of operations at Ventanas IV in March 2013 due to efficiently generating energy to cover existing contracts rather than having to purchase energy on the spot market; |
• | higher availability of our plants in Chile and Argentina by $37 million and $19 million respectively; and |
• | higher prices at Chivor of $26 million as discussed above. |
• | lower generation of $49 million mainly driven by $30 million at Chivor due to lower inflows and $16 million at Chile primarily due to lower gas generation; |
• | lower prices in Chile of $16 million as a result of lower contract and spot prices in the SIC market; |
• | higher fixed costs and depreciation of $14 million mainly driven by higher maintenance expenses; and |
• | lower prices in Argentina of $6 million as discussed above. |
• | lower prices in Argentina of $85 million primarily due to the change in the regulatory framework |
• | lower generation at Argentina of $54 million driven by lower dispatch; |
• | lower contract and spot prices in the SIC market at Gener of $55 million; and |
• | lower generation at Chivor of $29 million as a result of lower inflows. |
• | higher volume in Chile of $45 million due to higher spot and contract sales in the SIC market; |
• | higher contract and spot prices at Chivor of $98 million due to pressure from lower water inflows; and |
• | lower outages at Argentina of $45 million. |
• | new business in Chile of $66 million due to the commencement of operations at Ventanas IV, as discussed above. |
• | higher availability of our plants in Chile and Argentina by $39 million and $17 million respectively; and |
• | higher prices at Chivor of $43 million as discussed above. |
• | lower generation of $107 million mainly driven by $50 million at Chivor due to lower inflows and $48 million at Chile primarily due to lower gas availability; |
• | lower prices in Chile of $13 million as a result of lower contract and spot prices in the SIC market; |
• | higher fixed costs and depreciation of $15 million mainly driven by higher maintenance expenses; and |
• | lower prices in Argentina of $8 million as discussed above. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||
($’s in millions) | ||||||||||||||||||||||
Revenue | $ | 279 | $ | 274 | 2 | % | $ | 665 | $ | 579 | 15 | % | ||||||||||
Gross Margin | $ | 238 | $ | 197 | 21 | % | $ | 401 | $ | 422 | -5 | % |
• | higher prices of $17 million at Tietê mainly due to $13 million of PPA annual indexation in July 2012 and higher spot prices of $9 million; and |
• | positive impact of $8 million at Tietê driven by higher energy sold to Eletropaulo and third party contracts, offset by the spot market. |
• | $50 million of gross margin mainly from the extinguishment of a liability at Uruguaiana of $57 million in June 2013 based on the favorable decision issued by an arbitration panel in which Uruguaiana was legally released of this obligation; and |
• | positive impact of $20 million at Tietê driven by the higher prices of energy sold, offset by higher energy costs on the spot market. |
• | higher energy purchases of $15 million at Tietê mainly driven by hydrologic risk requirement among hydro generators at higher spot prices. |
• | higher volume of $117 million mainly driven by $93 million from generation at Uruguaiana due to the temporary restart of operations during February and March of 2013; and |
• | higher prices of $34 million at Tietê mainly due to $29 million of PPA annual indexation in July 2012. |
• | the reversal of a liability of $57 million and temporary restart of operations at Uruguaiana as mentioned above; and |
• | lower operating and maintenance costs of $6 million at Tietê. |
• | negative impact of $34 million at Tietê driven mainly by higher energy costs on the spot market, offset by higher prices in energy sold; and |
• | higher energy purchases at Tietê of $23 million mainly due to hydrologic risk requirement among hydro generators at higher spot prices. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||
($’s in millions) | ||||||||||||||||||||||
Revenue | $ | 1,202 | $ | 1,230 | -2 | % | $ | 2,525 | $ | 2,761 | -9 | % | ||||||||||
Gross Margin | $ | 75 | $ | (27 | ) | -378 | % | $ | 115 | $ | 56 | 105 | % |
• | higher tariffs of $67 million at Eletropaulo compared to the 2012 tariff reset provision, partially offset by lower pass through of energy and other costs. |
• | lower tariffs of $34 million at Sul mainly driven by lower pass through of energy and other operational costs. |
• | higher tariffs of $85 million at Eletropaulo compared to the 2012 tariff reset provision; |
• | lower fixed costs of $29 million mainly driven by the reversal of bad debt allowance; and |
• | higher volume at Sul of $9 million due to the increase in market demand. |
• | lower tariffs of $22 million at Sul mainly driven by lower other operational costs included in the tariff. |
• | higher tariffs of $125 million at Eletropaulo mainly due to higher energy pass through costs and higher tariffs compared to the 2012 tariff reset provision. |
• | lower tariffs of $75 million at Sul mainly driven by lower energy pass through costs and a cumulative adjustment to regulatory assets and liabilities; and |
• | lower volume of $46 million due to decreased market demand. |
• | higher tariffs of $105 million at Eletropaulo compared to the 2012 tariff reset provision; and |
• | lower fixed costs of $20 million mainly driven by the reversal of bad debt allowance, partially offset by higher pension costs and other. |
• | lower tariffs of $34 million at Sul mainly driven by a cumulative adjustment to regulatory assets and liabilities; and |
• | lower volume of $20 million due to decreased market demand. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||
($’s in millions) | ||||||||||||||||||||||
Revenue | $ | 471 | $ | 426 | 11 | % | $ | 929 | $ | 819 | 13 | % | ||||||||||
Gross Margin | $ | 123 | $ | 122 | 1 | % | $ | 210 | $ | 227 | -7 | % |
• | the positive impact of $27 million at Andres - Los Mina in the Dominican Republic mainly due to higher spot and contract sales from increased demand and higher volume of gas sales to third parties; and |
• | higher rates of $20 million at Merida and Puerto Rico, mainly due to higher fuel prices. |
• | a decrease in Panama of $50 million mainly due to replacement energy purchases at higher prices caused by lower hydrology. |
• | reimbursement costs in Panama of $31 million resulting from a settlement with the EPC contractor over the Esti tunnel collapse; and |
• | an increase of $21 million at Andres - Los Mina mainly from higher contract energy prices and higher spot sales as discussed above. |
• | the positive impact of $69 million at Andres - Los Mina mainly due to higher spot and contract sales from increased demand and higher international gas prices and volume of gas sales to third parties; and |
• | an increase of $45 million in Merida and Puerto Rico primarily due to higher volume and rates. |
• | lower contract prices of $14 million at Itabo, primarily related to lower fuel costs. |
• | a decrease in Panama of $50 million mainly due to replacement energy purchases at higher prices caused by lower hydrology; |
• | higher fixed costs across the segment of $14 million mainly due to maintenance performed at Itabo; and |
• | a decrease of $12 million at Andres-Los Mina mainly due to higher energy purchases caused by outages. |
• | an increase of $37 million at Andres -Los Mina mainly from higher contract energy and spot sales and higher volume of gas sales to third parties; and |
• | reimbursement costs in Panama of $31 million, resulting from a settlement with the EPC contractor over the Esti tunnel collapse. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||
($’s in millions) | ||||||||||||||||||||||
Revenue | $ | 314 | $ | 269 | 17 | % | $ | 665 | $ | 746 | -11 | % | ||||||||||
Gross Margin | $ | 102 | $ | 83 | 23 | % | $ | 223 | $ | 330 | -32 | % |
• | higher revenue of $21 million at our plants in the U.K. driven by higher volume and prices at Kilroot and higher prices and volume along with better reliability at Ballylumford; |
• | new business impact of $12 million for the commencement of operations at Kribi in Cameroon in May 2013; and |
• | higher volume of $9 million in Kazakhstan mainly driven by higher electricity sales from higher inflows and increased capacity. |
• | higher margin of $12 million at our plants in the U.K. driven by the items discussed above, lower coal costs and fixed costs, partially offset by higher gas costs related to higher demand, higher cost of CO2 emissions which were free in 2012, and insurance proceeds in prior year; and |
• | new business impact of $9 million in Africa driven by new operations at Kribi as discussed above. |
• | a decrease of $119 million as a result of the sale of 80% of our ownership of Cartagena, in Spain, in February 2012 and a non-recurring favorable arbitration settlement in the first quarter of 2012; and |
• | lower volumes of $10 million at Maritza in Bulgaria mainly due to a lower net capacity factor. |
• | higher revenue of $28 million at our plants in the U.K. driven by higher prices and higher dispatch at Kilroot and better reliability partially offset by lower prices primarily due to reduction in capacity remuneration in line with the PPA at Ballylumford; |
• | new business impact of $12 million in Africa for the commencement of operations at Kribi in Cameroon; and |
• | an increase of $7 million in Kazakhstan mainly driven by higher electricity sales from higher inflows and increased capacity. |
• | a decrease of $105 million at Cartagena as a result of the sale of 80% or our ownership in February 2012 and from a non-recurring favorable arbitration settlement in Q1 2012; |
• | lower prices of $40 million at Ballylumford as a result of reduced capacity as discussed above, 2012 insurance proceeds, and unfavorable gas prices. |
• | impact of $21 million due to better reliability at Ballylumford in U.K. due to lower forced outages in 2013 and planned outages that occurred in 2012; |
• | higher rates and volume of $18 million at Kilroot due to an increase in electricity prices in 2013, lower fuel costs and higher dispatch, partially offset by higher cost of CO2 allowances which were free in 2012; and |
• | new business impact of $9 million in Africa for the commencement of operations at Kribi in Cameroon. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||
($’s in millions) | ||||||||||||||||||||||
Revenue | $ | 143 | $ | 182 | -21 | % | $ | 277 | $ | 364 | -24 | % | ||||||||||
Gross Margin | $ | 48 | $ | 59 | -19 | % | $ | 89 | $ | 113 | -21 | % |
• | lower prices of $29 million at Masinloc in the Philippines as a result of lower bilateral contract rates reducing previous spot exposure and, lower spot prices due to higher grid availability; and |
• | lower volume of $25 million at Kelanitissa in Sri Lanka attributable to lower off-taker demand as a result of higher hydrology. |
• | higher volume of $13 million at Masinloc due to higher contract customer demand. |
• | lower volume of $50 million at Kelanitissa attributable to lower off-taker demand as a result of higher hydrology; |
• | lower prices of $50 million at Masinloc as discussed above; and |
• | a decrease of $8 million at Masinloc due to the favorable impact of a mark-to-market inflation-related derivative adjustment in the six months ended June 30, 2012. |
• | higher volume of $21 million at Masinloc due to higher contract customer demand. |
• | a decrease of $15 million largely attributable to lower margins from lower rates and lower spot sales, partially offset by higher contract demand at Masinloc; and |
• | a decrease of $8 million at Masinloc due to the favorable impact of a mark-to-market inflation-related derivative adjustment in the six months ended June 30, 2012. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||
($’s in millions) | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
El Salvador Utilities | $ | 223 | $ | 216 | 3 | % | $ | 434 | $ | 419 | 4 | % | ||||||||||
Africa Utilities | 119 | 92 | 29 | % | 226 | 222 | 2 | % | ||||||||||||||
Corporate/Other | 1 | 2 | -50 | % | 3 | 5 | -40 | % | ||||||||||||||
Total Corporate and Other | $ | 343 | $ | 310 | 11 | % | $ | 663 | $ | 646 | 3 | % | ||||||||||
Gross Margin | ||||||||||||||||||||||
El Salvador Utilities | $ | 26 | $ | 12 | 117 | % | $ | 44 | $ | 28 | 57 | % | ||||||||||
Africa Utilities | (5 | ) | (15 | ) | 67 | % | (13 | ) | (5 | ) | -160 | % | ||||||||||
Corporate/Other | (1 | ) | — | NA | (4 | ) | (3 | ) | -33 | % | ||||||||||||
Total Corporate and Other | $ | 20 | $ | (3 | ) | 767 | % | $ | 27 | $ | 20 | 35 | % |
• | the favorable impact of a mark-to-market derivative adjustment of $16 million at Sonel in Cameroon driven by a derivative loss in the second quarter of 2012; and |
• | higher rates and volume of $7 million in El Salvador mainly due to a tariff increase approved by the regulator at the beginning of 2013. |
• | the favorable impact of a mark-to-market derivative adjustment of $16 million at Sonel as discussed above; and |
• | higher rates of $15 million in El Salvador due to the tariff increase as discussed above. |
• | higher energy purchases of $11 million at Sonel due to the delay in the Kribi plant commissioning. |
• | higher rates and volume of $15 million in El Salvador due to the tariff increase as discussed above; and |
• | higher volume of $5 million at Sonel mainly due to increased demand. |
• | lower rates at Sonel of $6 million mainly due to a favorable 2011 tariff compensation adjustment in the first quarter 2012. |
• | higher rates and volume of $18 million in El Salvador mainly due to the tariff increase as discussed above. |
• | lower rates at Sonel of $7 million mainly due to a favorable 2011 tariff compensation adjustment in the first quarter 2012 as discussed above. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
($ in millions) | ||||||||||||||||
AES Corporation | $ | 8 | $ | (34 | ) | $ | (23 | ) | $ | (16 | ) | |||||
Chile | (10 | ) | (6 | ) | (14 | ) | 3 | |||||||||
Brazil | (7 | ) | (9 | ) | (10 | ) | (6 | ) | ||||||||
Philippines | (7 | ) | (42 | ) | (7 | ) | (66 | ) | ||||||||
Argentina | 1 | (6 | ) | (3 | ) | (12 | ) | |||||||||
Other | (2 | ) | (4 | ) | 8 | (5 | ) | |||||||||
Total(1) | $ | (17 | ) | $ | (101 | ) | $ | (49 | ) | $ | (102 | ) |
(1) | Includes $17 million in gains and $41 million in losses on foreign currency derivative contracts for the three months ended June 30, 2013 and 2012, respectively, and $19 million in gains and $80 million in losses on foreign currency derivative contracts for the six months ended June 30, 2013 and 2012, respectively. |
• | losses of $10 million in Chile were primarily due to a 5% weakening of the Chilean Peso, resulting in losses at Gener (a U.S. Dollar functional currency subsidiary) from working capital denominated in Chilean Pesos, primarily cash, accounts receivables and VAT receivables. These losses were partially offset by income on foreign currency derivatives. |
• | losses of $34 million at The AES Corporation were primarily due to decreases in the valuation of intercompany notes receivable denominated in foreign currency, resulting from the weakening of the Euro and British Pound during the quarter, partially offset by gains related to foreign currency options; |
• | losses of $42 million in the Philippines were primarily due to unrealized foreign exchange losses on embedded derivatives, which was a result of the forecasted strengthening of the Philippine Peso versus the U.S. Dollar in future periods; and |
• | losses of $9 million in Brazil that were mainly related to commercial liabilities denominated in U.S. Dollars due to the 8% weakening of the Brazilian Real versus the U.S. Dollar. |
• | losses of $23 million at The AES Corporation were primarily due to decreases in the valuation of intercompany notes receivable denominated in foreign currency, resulting from the weakening of the Euro and British Pound during the year, partially offset by gains related to foreign currency options; |
• | losses of $14 million in Chile which were primarily due to a 6% weakening of the Chilean Peso, resulting in losses at Gener (a U.S. Dollar functional currency subsidiary) from working capital denominated in Chilean Pesos, primarily cash, accounts receivables and VAT receivables. Additional losses were related to foreign currency derivatives; and |
• | losses of $10 million in Brazil which were mainly related to commercial liabilities denominated in U.S. Dollars due to the 8% weakening of the Brazilian Real versus the U.S. Dollar. |
• | losses of $16 million at The AES Corporation which were primarily due to decreases in the valuation of intercompany notes receivable denominated in foreign currency, resulting from the weakening of the Euro and British Pound during the year, and due to a decline in value of foreign currency options; |
• | losses of $66 million in the Philippines which were primarily due to unrealized foreign exchange losses on embedded derivatives, which was a result of the forecasted strengthening of the Philippine Peso versus the U.S. Dollar in future periods; and |
• | losses of $12 million in Argentina which were primarily related to losses due to the weakening of the Argentine Peso by 5%, resulting in losses at AES Argentina Generacion (an Argentine Peso functional currency subsidiary) associated with its U.S. Dollar denominated debt and losses at Termoandes (a U.S. Dollar functional currency subsidiary) mainly associated with cash and account receivable balances in local currency. These losses were partially offset by a gain on a foreign currency embedded derivative related to Government receivables. |
• | issue a proposed rule by June 1, 2014; |
• | issue a final rule by June 1, 2015; and |
• | require that States submit their implementation plans to the EPA by no later than June 30, 2016. |
• | In April 2013, the EPA announced proposed rules to reduce pollutants discharged into waterways by power plants. These rules are updates to the existing rules and identify four preferred options for controlling the discharge of these pollutants. The EPA is required to finalize these rules by May 2014. |
• | In April 2013, IPL received a two-year extension, through September 2017, of the compliance deadline required by the National Pollutant Discharge Elimination System ("NPDES") permits that the Indiana Department of Environmental Management issued to the IPL Petersburg, and Harding Street generating stations by the Indiana Department of Environmental Management. NPDES permits regulate specific industrial wastewater and storm water discharges to the waters of Indiana under Sections 402 and 405 of the U.S. Clean Water Act. These permits set new levels of acceptable metal effluent water discharge, as well as monitoring and other requirements designed to protect aquatic life. |
• | In June 2013, DP&L's Hutchings generation station's Unit 4 was retired as part of DP&L's plan to retire by June 2015 the six coal-fired units aggregating approximately 360 MW at such generation station. DP&L is retiring these units as a result of existing and expected environmental regulations. Conversion of the coal-fired units to natural gas was investigated, but the cost of investment exceeded the expected return. In addition, DP&L owns approximately 207 MW of coal-fired generation at Beckjord Unit 6, which is operated by Duke Energy Ohio. |
• | a decrease of $252 million in accounts payable and other current liabilities primarily at Eletropaulo due to a decrease in regulatory liabilities and a decrease in value added taxes payables due to the lower tariff in 2013 and at Uruguaiana primarily related to the extinguishment of a liability based on a favorable arbitration decision; |
• | an increase of $147 million in other assets primarily due to an increase in noncurrent regulatory assets at Eletropaulo, resulting from higher priced energy purchases which are recoverable through future tariffs; |
• | a decrease of $134 million in net income tax and other tax payables primarily from payment of income taxes exceeding accruals for the tax liability on 2013 income, partially offset by an accrual of indirect taxes in Brazil; partially offset by |
• | a decrease of $191 million in accounts receivable primarily due to lower tariffs at Eletropaulo and higher collections combined with lower tariffs and reduced consumption at Sul, partially offset by lower collections at Maritza. |
• | an increase of $293 million in other assets primarily due to an increase in long term regulatory assets at Eletropaulo as a result of the high price and volume of energy purchases and regulatory charges to be recovered in future tariffs and the establishment of a long term note receivable at Cartagena in Spain following the arbitration settlement; |
• | a decrease of $249 million in net income tax and other tax payables primarily due to the payment of income taxes in excess of accruals for new current tax liabilities; |
• | an increase of $175 million in accounts receivable primarily due to lower collection rates at Maritza, Sonel and Itabo; partially offset by |
• | an increase of $245 million from an increase in other liabilities primarily explained by long term regulatory liabilities at Eletropaulo related to the tariff reset discussed in the gross margin analysis above; and |
• | an increase of $228 million in accounts payable and other current liabilities primarily at Eletropaulo due to an increase in short term regulatory liabilities driven by the tariff reset, offset by a decrease in other current liabilities arising from value added tax payables. |
• | US — an increase of $49 million at our generation businesses primarily due to proceeds of $60 million from the PPA termination at Beaver Valley in January 2013. |
• | Andes — a decrease of $104 million at our generation businesses primarily due to higher working capital requirements at Gener. |
• | Brazil — an increase of $138 million at our utility businesses primarily driven by the recovery of deferred costs from the regulator, lower transmission costs and regulatory charges partially offset by higher priced energy purchases and lower collections at Eletropaulo, as well as a decrease of $87 million at our generation businesses primarily due to higher purchases on spot market and income taxes payments, offset by higher energy sales. |
• | MCAC — an increase of $97 million at our generation businesses primarily due to lower working capital requirements. |
• | Asia — a decrease of $44 million at our generation businesses primarily due to higher working capital requirements at Masinloc. |
• | dividends and other distributions from our subsidiaries, including refinancing proceeds; |
• | proceeds from debt and equity financings at the Parent Company level, including availability under our credit facilities; and |
• | proceeds from asset sales. |
• | interest; |
• | principal repayments of debt; |
• | acquisitions; |
• | construction commitments; |
• | other equity commitments; |
• | equity repurchases; |
• | taxes; |
• | Parent Company overhead and development costs; and |
• | dividends on common stock. |
Parent Company Liquidity | June 30, 2013 | December 31, 2012 | ||||||
(in millions) | ||||||||
Consolidated cash and cash equivalents | $ | 1,611 | $ | 1,966 | ||||
Less: Cash and cash equivalents at subsidiaries | 1,500 | 1,655 | ||||||
Parent and qualified holding companies’ cash and cash equivalents | 111 | 311 | ||||||
Commitments under Parent credit facilities | 800 | 800 | ||||||
Less: Letters of credit under the credit facilities | (3 | ) | (5 | ) | ||||
Borrowings available under Parent credit facilities | 797 | 795 | ||||||
Total Parent Company Liquidity | $ | 908 | $ | 1,106 |
• | limitations on other indebtedness, liens, investments and guarantees; |
• | limitations on dividends, stock repurchases and other equity transactions; |
• | restrictions and limitations on mergers and acquisitions, sales of assets, leases, transactions with affiliates and off-balance sheet and derivative arrangements; |
• | maintenance of certain financial ratios; and |
• | financial and other reporting requirements. |
• | reducing our cash flows as the subsidiary will typically be prohibited from distributing cash to the Parent Company during the time period of any default; |
• | triggering our obligation to make payments under any financial guarantee, letter of credit or other credit support we have provided to or on behalf of such subsidiary; |
• | causing us to record a loss in the event the lender forecloses on the assets; and |
• | triggering defaults in our outstanding debt at the Parent Company. |
Repurchase Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Repurchased as part of a Publicly Announced Purchase Plan (1) | Dollar Value of Maximum Number Of Shares To Be Purchased Under the Plan | ||||||||||
4/1/2013 - 4/30/13 | — | — | — | $ | 300,000,000 | |||||||||
5/1/2013 - 5/31/13 | — | — | — | 300,000,000 | ||||||||||
6/1/2013 - 6/30/13 | 1,558,900 | 11.50 | 1,558,900 | 282,055,544 | ||||||||||
Total | 1,558,900 | $ | 11.50 | 1,558,900 |
(1) | See Note 10 — Equity, Stock Repurchase Program to the condensed consolidated financial statements in Item 1. — Financial Statements for further information on our stock repurchase program. |
10.1 | Amendment No. 3, dated as of July 26, 2013, to the Fifth Amended and Restated Credit and Reimbursement agreement dated as of July 29, 2010 is incorporated herein by reference to Exhibit 10.1 of the Company's Form 8-K filed on July 29, 2013. | |
10.1.A | Sixth Amended and Restated Credit and Reimbursement Agreement dated as of July 26, 2013 among The AES Corporation, a Delaware corporation, the Banks listed on the signature pages thereof, Citibank, N.A., as Administrative Agent and Collateral Agent, Citigroup Global Markets Inc., as Lead Arranger and Book Runner, Banc of America Securities LLC, as Lead Arranger and Book Runner and Co-Syndication Agent, Barclays Capital, as Lead Arranger and Book Runner and Co-Syndication Agent, RBS Securities Inc., as Lead Arranger and Book Runner and Co-Syndication Agent and Union Bank, N.A., as Lead Arranger and Book Runner and Co-Syndication Agent is incorporated herein by reference to Exhibit 10.1.A of the Company's Form 8-K filed on July 29, 2013. | |
10.1.B | Appendices and Exhibits to the Sixth Amended and Restated Credit and Reimbursement Agreement, dated as of July 26, 2013 is incorporated herein by reference to Exhibit 10.1.B of the Company's Form 8-K filed on July 29, 2013. | |
31.1 | Rule13a-14(a)/15d-14(a) Certification of Andrés Gluski (filed herewith). | |
31.2 | Rule 13a-14(a)/15d-14(a) Certification of Thomas M. O’Flynn (filed herewith). | |
32.1 | Section 1350 Certification of Andrés Gluski (filed herewith). | |
32.2 | Section 1350 Certification of Thomas M. O’Flynn (filed herewith). | |
101.INS | XBRL Instance Document (filed herewith). | |
101.SCH | XBRL Taxonomy Extension Schema Document (filed herewith). | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith). | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document (filed herewith). | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document (filed herewith). | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith). |
THE AES CORPORATION (Registrant) | |||||||
Date: | August 7, 2013 | By: | /s/ THOMAS M. O’FLYNN | ||||
Name: | Thomas M. O’Flynn | ||||||
Title: | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||
By: | /s/ SHARON A. VIRAG | ||||||
Name: | Sharon A. Virag | ||||||
Title: | Vice President and Controller (Principal Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of The AES Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/S/ ANDRÉS GLUSKI |
Name: Andrés Gluski |
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of The AES Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ THOMAS M. O’FLYNN |
Name: Thomas M. O’Flynn |
Executive Vice President and Chief Financial Officer |
(1) | the Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, (the “Periodic Report”) which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
(2) | information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of The AES Corporation. |
/S/ ANDRÉS GLUSKI |
Name: Andrés Gluski |
President and Chief Executive Officer |
(1) |
(1) | the Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, (the “Periodic Report”) which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
(2) | information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of The AES Corporation. |
/s/ THOMAS M. O’FLYNN |
Name: Thomas M. O’Flynn |
Executive Vice President and Chief Financial Officer |
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Pension Plans
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Jun. 30, 2013
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PENSION PLANS | PENSION PLANS Total pension cost for the three and six months ended June 30, 2013 and 2012 included the following components:
Total employer contributions for the six months ended June 30, 2013 for the Company’s U.S. and foreign subsidiaries were $50 million and $47 million, respectively. The expected remaining scheduled employer contributions for 2013 are $2 million and $124 million for U.S. and foreign subsidiaries, respectively. |
Long-Term Financing Receivables (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | |||||
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Jun. 30, 2013
agreement
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Dec. 31, 2012
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Financing Receivable Recorded Investment [Line Items] | ||||||
Financing receivable | $ 290 | $ 239 | ||||
Argentina [Member]
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Financing Receivable Recorded Investment [Line Items] | ||||||
Number of Foninvemem Agreements | 3 | |||||
Foninvemem Agreement, collection period | 10 years | |||||
Number of Foninvemem Agreements with active collections | 2 | |||||
Noncurrent receivables | 63 | 120 | ||||
Financing receivable | 247 | [1] | 196 | [1] | ||
Dominican Republic [Member]
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Financing Receivable Recorded Investment [Line Items] | ||||||
Financing receivable | 27 | 35 | ||||
Brazil [Member]
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Financing Receivable Recorded Investment [Line Items] | ||||||
Financing receivable | $ 16 | $ 8 | ||||
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Inventory
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORY | INVENTORY The following table summarizes the Company’s inventory balances as of June 30, 2013 and December 31, 2012:
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Earnings Per Share
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE Basic and diluted earnings per share are based on the weighted-average number of shares of common stock and potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted earnings per share, includes the effects of dilutive restricted stock units, stock options and convertible securities. The effect of such potential common stock is computed using the treasury stock method or the if-converted method, as applicable. The following tables present a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for income from continuing operations for the three and six months ended June 30, 2013 and 2012. In the table below, income represents the numerator and weighted-average shares represent the denominator:
The calculation of diluted earnings per share excluded 7 million options outstanding at June 30, 2013 and 2012, that could potentially dilute basic earnings per share in the future. These options were not included in the computation of diluted earnings per share because the exercise price of these options exceeded the average market price during the related period. The calculation of diluted earnings per share also excluded 1 million and 2 million restricted stock units outstanding at June 30, 2013 and 2012, respectively, that could potentially dilute basic earnings per share in the future. These restricted stock units were not included in the computation of diluted earnings per share because the average amount of compensation cost per share attributed to future service and not yet recognized exceeded the average market price during the related period and thus to include the restricted units would have been anti-dilutive. For the three and six months ended June 30, 2013 and 2012, all 15 million shares of potential common stock associated with convertible debentures were omitted from the earnings per share calculation because they were anti-dilutive. During the six months ended June 30, 2013, 1 million shares of common stock were issued under the Company’s profit-sharing plan. |
Equity
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Jun. 30, 2013
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY | EQUITY Changes in Equity The following table provides a reconciliation of the beginning and ending equity attributable to stockholders of The AES Corporation, noncontrolling interests and total equity as of June 30, 2013 and 2012:
Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component, net of tax and noncontrolling interests for the six months ended June 30, 2013 were as follows:
Reclassifications out of accumulated other comprehensive loss for the three and six months ended June 30, 2013 were as follows:
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Stock Repurchase Program During the three months ended June 30, 2013, shares of common stock repurchased under the existing stock repurchase program (the "Program") totaled 1,558,900 at a total cost of $18 million. The cumulative total purchases under the Program totaled 60,274,089 shares at a total cost of $698 million, which includes a nominal amount of commissions (average of $11.58 per share including commissions). As of June 30, 2013, $282 million was available under the Program. The common stock repurchased has been classified as treasury stock and accounted for using the cost method. A total of 67,103,992 and 66,415,984 shares were held as treasury stock at June 30, 2013 and December 31, 2012, respectively. Restricted stock units under the Company’s employee benefit plans are issued from treasury stock. The Company has not retired any common stock repurchased since it began the Program. Subsequent to June 30, 2013, the Company, repurchased an additional 3,738,142 shares at a cost of $45 million, bringing the cumulative total through August 7, 2013 to 64,012,231 shares at a total cost of $743 million (average price of $11.60 per share including commissions). |
Investments In Marketable Securities (Details) (USD $)
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3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Gain Loss On Marketable Securities | ||||
Realized losses on the sale of available-for-sale securities | $ 0 | $ 0 | $ 0 | $ 0 |
Other-than-temporary impairment of marketable securities | 0 | 0 | 0 | 0 |
Gains included in earnings that relate to trading securities held at the reporting date | 0 | 0 | 1,000,000 | 0 |
Unrealized gains on available-for-sale securities included in other comprehensive income | 1,000,000 | 0 | 1,000,000 | 0 |
Gains reclassified out of other comprehensive income into earnings | 1,000,000 | 0 | 1,000,000 | 0 |
Gross proceeds from sales of available-for-sale securities | 619,000,000 | 2,080,000,000 | 2,323,000,000 | 3,603,000,000 |
Gross realized gains on sales | $ 0 | $ 1,000,000 | $ 0 | $ 1,000,000 |
Contingencies and Commitments - Loss Contingencies (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Environmental [Member]
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Litigation Contingencies | ||
Loss Contingency Range Of Possible Loss Maximum | $ 22 | |
Environmental Contingencies | ||
Liability recorded for projected environmental remediation costs | 12 | |
Litigation [Member]
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Litigation Contingencies | ||
Aggregate reserves for claims deemed both probable and reasonably estimable | 320 | 321 |
Loss Contingency Range Of Possible Loss Minimum | 883 | |
Loss Contingency Range Of Possible Loss Maximum | $ 1,600 |
Asset Impairment Expense (Tables)
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Jun. 30, 2013
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Impairment or Disposal of Tangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details of Impairment of Long-Lived Assets Held and Used by Asset |
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Inventory (Tables)
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Jun. 30, 2013
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Balance By Type | The following table summarizes the Company’s inventory balances as of June 30, 2013 and December 31, 2012:
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Financial Statement Presentation (Policies)
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Jun. 30, 2013
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||
Reclassifications | The prior-period condensed consolidated financial statements in this Quarterly Report on Form 10-Q (“Form 10-Q”) have been reclassified to reflect the businesses held for sale and discontinued operations as discussed in Note 14 — Discontinued Operations and Held for Sale Businesses. |
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Consolidation | Consolidation In this Quarterly Report the terms “AES,” “the Company,” “us” or “we” refer to the consolidated entity including its subsidiaries and affiliates. The terms “The AES Corporation,” “the Parent” or “the Parent Company” refer only to the publicly held holding company, The AES Corporation, excluding its subsidiaries and affiliates. Furthermore, variable interest entities (“VIEs”) in which the Company has a variable interest have been consolidated where the Company is the primary beneficiary. Investments in which the Company has the ability to exercise significant influence, but not control, are accounted for using the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation. Interim Financial Presentation The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, for interim financial information and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and footnotes required by U.S. GAAP for annual fiscal reporting periods. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, comprehensive income and cash flows. The results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of results that may be expected for the year ending December 31, 2013. The accompanying condensed consolidated financial statements are unaudited and should be read in conjunction with the 2012 audited consolidated financial statements and notes thereto, which are included in the 2012 Form 10-K filed with the SEC on February 26, 2013 (the “2012 Form 10-K”). |
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Commitments And Contingencies Policy | The Company is involved in certain claims, suits and legal proceedings in the normal course of business. The Company accrues for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company has evaluated claims in accordance with the accounting guidance for contingencies that it deems both probable and reasonably estimable and, accordingly, has recorded aggregate reserves for all claims of approximately $320 million and $321 million as of June 30, 2013 and December 31, 2012, respectively. These reserves are reported on the condensed consolidated balance sheets within “accrued and other liabilities” and “other noncurrent liabilities.” A significant portion of the reserves relate to employment, non-income tax and customer disputes in international jurisdictions, principally Brazil. Certain of the Company’s subsidiaries, principally in Brazil, are defendants in a number of labor and employment lawsuits. The complaints generally seek unspecified monetary damages, injunctive relief, or other relief. The subsidiaries have denied any liability and intend to vigorously defend themselves in all of these proceedings. There can be no assurance that these reserves will be adequate to cover all existing and future claims or that we will have the liquidity to pay such claims as they arise. |
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Segment Reporting General Information | The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the business internally with further aggregation by geographic regions to provide better socio-political-economic understanding of our business. The management reporting structure is organized along six strategic business units (“SBUs”) — led by our Chief Operating Officer (“COO”), who in turn reports to our Chief Executive Officer (“CEO”). For the three and six months ended June 30, 2013, the Company applied the accounting guidance for segment reporting which provides certain qualitative and quantitative thresholds and aggregation criteria. The Company concluded that the Gener operating segment met the quantitative threshold to require separate presentation. As such, an additional reportable segment, which consists solely of the results of Gener, is now reported as Andes — Gener — Generation. Gener was previously included as part of the Andes — Generation reportable segment. All of the remaining businesses that were formerly part of the Andes — Generation reportable segment are now reported as Andes — Other — Generation. All prior-period results have been retrospectively revised to reflect the new segment reporting structure. The Company has increased from eight to the following nine reportable segments based on the six strategic business units:
Corporate and Other — The Company’s EMEA and MCAC Utilities operating segments are reported within “Corporate and Other” because they do not meet the criteria to allow for aggregation with another operating segment or the quantitative thresholds that would require separate disclosure under the segment reporting accounting guidance. None of these operating segments are currently material to our presentation of reportable segments, individually or in the aggregate. AES Solar and certain other unconsolidated businesses are accounted for using the equity method of accounting; therefore, their operating results are included in “Net Equity in Earnings of Affiliates” on the face of the Consolidated Statements of Operations, not in revenue or Adjusted pre-tax contribution (“Adjusted PTC”). “Corporate and Other” also includes corporate overhead costs which are not directly associated with the operations of our nine reportable segments and other intercompany charges such as self-insurance premiums which are fully eliminated in consolidation. The Company uses Adjusted PTC as its primary segment performance measure. Adjusted PTC, a non-GAAP measure, is defined by the Company as pre-tax income from continuing operations attributable to AES excluding unrealized gains or losses related to derivative transactions, unrealized foreign currency gains or losses, gains or losses due to dispositions and acquisitions of business interests, losses due to impairments and costs due to the early retirement of debt. The Company has concluded that Adjusted PTC best reflects the underlying business performance of the Company and is the most relevant measure considered in the Company’s internal evaluation of the financial performance of its segments. Additionally, given its large number of businesses and complexity, the Company concluded that Adjusted PTC is a more transparent measure that better assists the investor in determining which businesses have the greatest impact on the overall Company results. Total revenue includes inter-segment revenue primarily related to the transfer of electricity from generation plants to utilities within Brazil. No material inter-segment revenue relationships exist between other segments. Corporate allocations include certain self-insurance activities which are reflected within segment adjusted PTC. All intra-segment activity has been eliminated with respect to revenue and adjusted PTC within the segment. Inter-segment activity has been eliminated within the total consolidated results. Asset information for businesses that were discontinued or classified as held for sale as of June 30, 2013 is segregated and is shown in the line “Discontinued Businesses” in the accompanying segment tables. |
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Earnings Per Share Policy | Basic and diluted earnings per share are based on the weighted-average number of shares of common stock and potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted earnings per share, includes the effects of dilutive restricted stock units, stock options and convertible securities. The effect of such potential common stock is computed using the treasury stock method or the if-converted method, as applicable. |
Fair Value (Nonrecurring Unobservable Inputs) (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
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Discounted cash flow [Member] | Long Lived Assets Held And Used [Member] | Beaver Valley [Member]
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Fair Value Assets Measured On Nonrecurring Basis Unobservable Inputs [Line Items] | ||||
Weighted Average Cost Of Capital Input | 7.00% | |||
Discounted cash flow [Member] | Minimum [Member] | Long Lived Assets Held And Used [Member] | Beaver Valley [Member]
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Fair Value Assets Measured On Nonrecurring Basis Unobservable Inputs [Line Items] | ||||
Annual Revenue Growth Input | 3.00% | |||
Pretax Operating Margin Input | (42.00%) | |||
Discounted cash flow [Member] | Maximum [Member] | Long Lived Assets Held And Used [Member] | Beaver Valley [Member]
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Fair Value Assets Measured On Nonrecurring Basis Unobservable Inputs [Line Items] | ||||
Annual Revenue Growth Input | 45.00% | |||
Pretax Operating Margin Input | 41.00% | |||
Discounted cash flow [Member] | Weighted Average [Member] | Long Lived Assets Held And Used [Member] | Beaver Valley [Member]
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Fair Value Assets Measured On Nonrecurring Basis Unobservable Inputs [Line Items] | ||||
Annual Revenue Growth Input | 19.00% | |||
Pretax Operating Margin Input | 25.00% | |||
Fair Value [Member] | Market Approach [Member] | Weighted Average [Member] | Long Lived Assets Held For Sale [Member] | Wind turbines [Member]
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Fair Value Assets Measured On Nonrecurring Basis Unobservable Inputs [Line Items] | ||||
Fair Value, Nonrecurring | $ 0 | [1] | ||
Fair Value [Member] | Level 3 [Member] | Long Lived Assets Held And Used [Member] | Beaver Valley [Member]
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Fair Value Assets Measured On Nonrecurring Basis Unobservable Inputs [Line Items] | ||||
Fair Value, Nonrecurring | $ 15 | [1] | ||
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Pension Plans (Tables)
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Jun. 30, 2013
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost Table | Total pension cost for the three and six months ended June 30, 2013 and 2012 included the following components:
|
Earnings Per Share (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share Basic And Diluted Table | The following tables present a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for income from continuing operations for the three and six months ended June 30, 2013 and 2012. In the table below, income represents the numerator and weighted-average shares represent the denominator:
|
Derivative Instruments and Hedging Activities - Part 1 (Details)
In Millions, unless otherwise specified |
6 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
Chilean Peso CLP [Member]
|
Jun. 30, 2013
Brazilian Real BRL [Member]
|
Jun. 30, 2013
Euro EUR [Member]
|
Jun. 30, 2013
Colombian Peso COP [Member]
|
Jun. 30, 2013
Argentine Peso ARS [Member]
|
Jun. 30, 2013
British Pound GBP [Member]
|
Jun. 30, 2013
Interest rate derivatives [Member]
Libor USD [Member]
|
Jun. 30, 2013
Interest rate derivatives [Member]
Euribor EUR [Member]
|
Jun. 30, 2013
Interest rate derivatives [Member]
Libor GBP [Member]
|
Jun. 30, 2013
Interest rate derivatives [Member]
Current Notional [Member]
Libor USD [Member]
USD ($)
|
Jun. 30, 2013
Interest rate derivatives [Member]
Current Notional [Member]
Euribor EUR [Member]
USD ($)
|
Jun. 30, 2013
Interest rate derivatives [Member]
Current Notional [Member]
Euribor EUR [Member]
EUR (€)
|
Jun. 30, 2013
Interest rate derivatives [Member]
Current Notional [Member]
Libor GBP [Member]
USD ($)
|
Jun. 30, 2013
Interest rate derivatives [Member]
Current Notional [Member]
Libor GBP [Member]
GBP (£)
|
Jun. 30, 2013
Interest rate derivatives [Member]
Maximum [Member]
Libor USD [Member]
USD ($)
|
Jun. 30, 2013
Interest rate derivatives [Member]
Maximum [Member]
Euribor EUR [Member]
USD ($)
|
Jun. 30, 2013
Interest rate derivatives [Member]
Maximum [Member]
Euribor EUR [Member]
EUR (€)
|
Jun. 30, 2013
Interest rate derivatives [Member]
Maximum [Member]
Libor GBP [Member]
USD ($)
|
Jun. 30, 2013
Interest rate derivatives [Member]
Maximum [Member]
Libor GBP [Member]
GBP (£)
|
Jun. 30, 2013
Cross currency derivatives [Member]
Chilean Unidad De Fomento CLF [Member]
|
Jun. 30, 2013
Cross currency derivatives [Member]
Current Notional [Member]
Chilean Unidad De Fomento CLF [Member]
USD ($)
|
Jun. 30, 2013
Cross currency derivatives [Member]
Current Notional [Member]
Chilean Unidad De Fomento CLF [Member]
CLF
|
Jun. 30, 2013
Cross currency derivatives [Member]
Maximum [Member]
Chilean Unidad De Fomento CLF [Member]
USD ($)
|
Jun. 30, 2013
Cross currency derivatives [Member]
Maximum [Member]
Chilean Unidad De Fomento CLF [Member]
CLF
|
Jun. 30, 2013
Foreign Currency Options [ Member]
Chilean Unidad De Fomento CLF [Member]
USD ($)
|
Jun. 30, 2013
Foreign Currency Options [ Member]
Chilean Unidad De Fomento CLF [Member]
CLP
|
Jun. 30, 2013
Foreign Currency Options [ Member]
Chilean Peso CLP [Member]
USD ($)
|
Jun. 30, 2013
Foreign Currency Options [ Member]
Chilean Peso CLP [Member]
CLP
|
Jun. 30, 2013
Foreign Currency Options [ Member]
Brazilian Real BRL [Member]
USD ($)
|
Jun. 30, 2013
Foreign Currency Options [ Member]
Brazilian Real BRL [Member]
BRL
|
Jun. 30, 2013
Foreign Currency Options [ Member]
Euro EUR [Member]
USD ($)
|
Jun. 30, 2013
Foreign Currency Options [ Member]
Euro EUR [Member]
EUR (€)
|
Jun. 30, 2013
Foreign Currency Options [ Member]
Colombian Peso COP [Member]
USD ($)
|
Jun. 30, 2013
Foreign Currency Options [ Member]
Colombian Peso COP [Member]
COP
|
Jun. 30, 2013
Foreign Currency Options [ Member]
Argentine Peso ARS [Member]
USD ($)
|
Jun. 30, 2013
Foreign Currency Options [ Member]
Argentine Peso ARS [Member]
ARS
|
Jun. 30, 2013
Foreign Currency Options [ Member]
British Pound GBP [Member]
USD ($)
|
Jun. 30, 2013
Foreign Currency Options [ Member]
British Pound GBP [Member]
GBP (£)
|
Jun. 30, 2013
Embedded Foreign Currency Derivatives [Member]
Euro EUR [Member]
USD ($)
|
Jun. 30, 2013
Embedded Foreign Currency Derivatives [Member]
Euro EUR [Member]
EUR (€)
|
Jun. 30, 2013
Embedded Foreign Currency Derivatives [Member]
Argentine Peso ARS [Member]
USD ($)
|
Jun. 30, 2013
Embedded Foreign Currency Derivatives [Member]
Argentine Peso ARS [Member]
ARS
|
Jun. 30, 2013
Embedded Foreign Currency Derivatives [Member]
Kazakhstani Tenge KZT [Member]
USD ($)
|
Jun. 30, 2013
Embedded Foreign Currency Derivatives [Member]
Kazakhstani Tenge KZT [Member]
KZT
|
Jun. 30, 2013
Commodity Derivatives [Member]
Aluminum M Wh [Member]
MWh
|
Jun. 30, 2013
Commodity Derivatives [Member]
Power MWh [Member]
MWh
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Tables [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amount Of Interest Rate Derivatives | $ 3,539 | [1] | $ 769 | [1] | € 591 | [1] | $ 104 | [1] | £ 68 | [1] | $ 5,043 | [1] | $ 770 | [1] | € 592 | [1] | $ 104 | [1] | £ 68 | [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Remaining Term (less than 1 for Chilean Peso, Brazilian Real, Euro, Colombian Peso, Argentine Peso and British Pound) | 1 year | 1 year | 1 year | 1 year | 1 year | 1 year | 9 years | [1] | 13 years | [1] | 7 years | [1] | 8 years | 1 year | [2] | 1 year | [2] | 10 years | [2] | 10 years | [2] | 11 years | [2] | 11 years | [2] | 4 years | [2] | 4 years | [2] | 7 years | [3],[4] | 2 years | [4] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Remaining Term (string type) | <1 | [2] | <1 | [2] | <1 | [2] | <1 | [2] | <1 | [2] | <1 | [2] | <1 | [2] | <1 | [2] | <1 | [2] | <1 | [2] | <1 | [2] | <1 | [2] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
% of Debt Currently Hedged by Index | 73.00% | [1],[5] | 65.00% | [1],[5] | 83.00% | [1],[5] | 85.00% | [5] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amount Of Foreign Currency Derivatives | 252 | 252 | 255 | 6 | [6] | 91 | 46,233 | [6] | 47 | 104 | [6] | 45 | 35 | [6] | 97 | 179,416 | [6] | 15 | 83 | [6] | 43 | 28 | [6] | 2 | 1 | [6] | 152 | 821 | [6] | 5 | 811 | [6] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional (CLF) | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional (MWh) | 13,000,000 | [3] | 9,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Long-Term Financing Receivables (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Financing Receivables Table | The following table sets forth the breakdown of financing receivables by country as of June 30, 2013 and December 31, 2012. The increase in long-term financing receivables from December 31, 2012 is primarily due to the incorporation of Resolution 724/ 2008 receivables in FONINVEMEM III project as mentioned above partially offset by a decrease due to the impact of foreign currency translation.
_____________________________
|
Asset Impairment Expense (Details) (USD $)
In Millions, unless otherwise specified |
0 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jan. 09, 2013
|
Jun. 30, 2013
MW
|
Jun. 30, 2012
|
Jun. 30, 2013
MW
|
Jun. 30, 2012
|
|
Asset Impairment Expense [Line Items] | |||||
Asset impairment expense | $ 0 | $ 18 | $ 48 | $ 28 | |
Beaver Valley [Member]
|
|||||
Asset Impairment Expense [Line Items] | |||||
Asset impairment expense | 0 | 0 | 46 | 0 | |
Generation Capacity (MW) | 125 | 125 | |||
Lump Sum Payment Received For Termination Of PPA | 60 | ||||
Kelanitissa [ Member]
|
|||||
Asset Impairment Expense [Line Items] | |||||
Asset impairment expense | 0 | 7 | 0 | 12 | |
St. Patrick [Member]
|
|||||
Asset Impairment Expense [Line Items] | |||||
Asset impairment expense | 0 | 11 | 0 | 11 | |
Other Impairment [Member]
|
|||||
Asset Impairment Expense [Line Items] | |||||
Asset impairment expense | $ 0 | $ 0 | $ 2 | $ 5 |
Other Income and Expense - Other Expense (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Component of Operating Other Cost and Expense [Line Items] | ||||
Total other expense | $ 18 | $ 15 | $ 46 | $ 43 |
Loss On Sale And Disposal Of Assets [Member]
|
||||
Component of Operating Other Cost and Expense [Line Items] | ||||
Total other expense | 10 | 11 | 25 | 35 |
Contract Termination [Member]
|
||||
Component of Operating Other Cost and Expense [Line Items] | ||||
Total other expense | 0 | 0 | 7 | 0 |
Other Operating Expense [Member]
|
||||
Component of Operating Other Cost and Expense [Line Items] | ||||
Total other expense | $ 8 | $ 4 | $ 14 | $ 8 |
Subsequent Events
|
6 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Stock Repurchase Program —The Company continued stock repurchases after June 30, 2013 under its stock repurchase program. For additional information on stock repurchases after the quarter, see Note 10.—Equity. Trinidad Generation Unlimited—On July 10, 2013, the Company completed the sale of its 10% equity interest in Trinidad Generation Unlimited, an equity method investment, to the government of Trinidad and received net proceeds of $31 million. The carrying amount of the investment was $28 million and a gain of $3 million will be recognized in the third quarter of 2013. Recourse Debt—On July 26, 2013, the Company entered into an Amendment No. 3 (the “Amendment No. 3”) to the Fifth Amended and Restated Credit and Reimbursement Agreement, dated as of July 29, 2010, among the Company, various subsidiary guarantors and various lending institutions (as amended by Amendment No. 1, dated as of January 13, 2012, and Amendment No. 2, dated as of January 2, 2013, the “Existing Credit Agreement”) that amends and restates the Existing Credit Agreement (as so amended and restated by the Amendment No. 3, the “Sixth Amended and Restated Credit Agreement”). The Sixth Amended and Restated Credit Agreement adjusts the terms and conditions of the Existing Credit Agreement, including the following changes:
The aggregate commitment for the revolving credit loan facility remains $800 million. |
Fair Value
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE The fair value of current financial assets and liabilities, debt service reserves and other deposits approximate their reported carrying amounts. The estimated fair value of the Company’s assets and liabilities have been determined using available market information. By virtue of these amounts being estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. There were no changes in fair valuation techniques during the period and the Company continues to follow the valuation techniques described in Note 4. — Fair Value in Item 8. — Financial Statements and Supplementary Data of its 2012 Form 10-K. Recurring Measurements The following table sets forth, by level within the fair value hierarchy, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012:
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The following tables present a reconciliation of net derivative assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2013 and 2012 (presented net by type of derivative where any foreign currency impacts are presented as part of gains (losses) in earnings or other comprehensive income as appropriate). Transfers between Level 3 and Level 2 are determined as of the end of the reporting period and principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.
The following table summarizes the significant unobservable inputs used for the Level 3 derivative assets (liabilities) as of June 30, 2013:
Nonrecurring Measurements When evaluating impairment of long-lived assets, discontinued operations and held for sale businesses, and equity method investments the Company measures fair value using the applicable fair value measurement guidance. Impairment expense is measured by comparing the fair value of asset groups at the evaluation date to their carrying amount. The following table summarizes major categories of assets and liabilities measured at fair value on a nonrecurring basis during the period and their level within the fair value hierarchy:
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The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets during the six months ended June 30, 2013:
Financial Instruments not Measured at Fair Value in the Condensed Consolidated Balance Sheets The following table sets forth the carrying amount, fair value and fair value hierarchy of the Company’s financial assets and liabilities that are not measured at fair value in the condensed consolidated balance sheets as of June 30, 2013 and December 31, 2012, but for which fair value is disclosed.
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Financial Statement Presentation
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6 Months Ended |
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Jun. 30, 2013
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
FINANCIAL STATEMENT PRESENTATION | FINANCIAL STATEMENT PRESENTATION The prior-period condensed consolidated financial statements in this Quarterly Report on Form 10-Q (“Form 10-Q”) have been reclassified to reflect the businesses held for sale and discontinued operations as discussed in Note 14 — Discontinued Operations and Held for Sale Businesses. Consolidation In this Quarterly Report the terms “AES,” “the Company,” “us” or “we” refer to the consolidated entity including its subsidiaries and affiliates. The terms “The AES Corporation,” “the Parent” or “the Parent Company” refer only to the publicly held holding company, The AES Corporation, excluding its subsidiaries and affiliates. Furthermore, variable interest entities (“VIEs”) in which the Company has a variable interest have been consolidated where the Company is the primary beneficiary. Investments in which the Company has the ability to exercise significant influence, but not control, are accounted for using the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation. Interim Financial Presentation The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, for interim financial information and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and footnotes required by U.S. GAAP for annual fiscal reporting periods. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, comprehensive income and cash flows. The results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of results that may be expected for the year ending December 31, 2013. The accompanying condensed consolidated financial statements are unaudited and should be read in conjunction with the 2012 audited consolidated financial statements and notes thereto, which are included in the 2012 Form 10-K filed with the SEC on February 26, 2013 (the “2012 Form 10-K”). Accounting Pronouncements Issued But Not Yet Effective The following accounting standards have been issued, but are not yet effective for, and have not been adopted by AES. ASU No. 2013-11, Income Taxes (Topic 740), "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force)." In July 2013, the FASB issued ASU No. 2013-11, which requires the netting of unrecognized tax benefits (“UTBs”) against a deferred tax asset for a loss or other carryforward that would apply in settlement of uncertain tax positions. Under the new standard, UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. ASU No. 2013-11 is effective for annual reporting periods beginning after December 15, 2013 and interim periods therein. The new standard requires prospective adoption, but allows optional retrospective adoption. Early adoption is permitted. The Company is currently evaluating the method of adoption and the impact of adopting ASU No. 2013-11 on the Company's financial position. It will have no impact on the results of operations and cash flows. ASU No. 2013-7, Presentation of Financial Statements (Topic 205), "Liquidation Basis of Accounting" In April 2013, the FASB issued ASU No. 2013-7, which requires an entity to prepare financial statements on a liquidation basis when liquidation is imminent, unless the liquidation is the same as the plan specified in an entity's governing documents created at its inception. Under the liquidation basis of accounting, an entity will measure and present assets at the estimated amount of cash proceeds or other consideration that it expects to collect in settling or disposing of those assets in carrying out its plan for liquidation. This includes assets the entity previously had not recognized under U.S. GAAP, but expects to either sell in liquidation or use in settling liabilities (for example, trademarks). An entity will recognize and measure its liabilities in accordance with U.S. GAAP that otherwise applies to those liabilities. An entity should not anticipate it will be legally released from being the primary obligor under those liabilities, either judicially or by creditors. An entity will also accrue and separately present the costs it expects to incur and the income it expects to earn during the course of the liquidation, including any costs associated with the disposal or settlement of its assets and liabilities. ASU No. 2013-7 also requires additional disclosures. ASU No. 2013-7 is effective for annual reporting periods beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU No, 2013-7 is not expected to have a significant impact on the Company's consolidated financial position, results of operations and cash flows. ASU No. 2013-5, Foreign Currency Matters (Topic 830), “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” In March 2013, the FASB issued ASU No. 2013-5, which requires an entity to release any related cumulative translation adjustment into net income when it ceases to have a controlling financial interest in a subsidiary or group of assets that is a business (other than a sale of in-substance real estate) within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. For an equity method investment that is a foreign entity, the partial sale guidance still applies. As such, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. In those instances, the cumulative adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. The amendments are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU No. 2013-5 on the Company’s financial position and results of operations. |
Inventory (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Inventory Disclosure [Abstract] | ||
Coal, fuel oil and other raw materials | $ 363 | $ 373 |
Spare parts and supplies | 400 | 393 |
Total | $ 763 | $ 766 |
Fair Value (Tables)
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value hierarchy for recurring measurements table | The following table sets forth, by level within the fair value hierarchy, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012:
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Derivatives Level 3 Rollforward Table | The following tables present a reconciliation of net derivative assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2013 and 2012 (presented net by type of derivative where any foreign currency impacts are presented as part of gains (losses) in earnings or other comprehensive income as appropriate). Transfers between Level 3 and Level 2 are determined as of the end of the reporting period and principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.
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Significant unobservable inputs, recurring | The following table summarizes the significant unobservable inputs used for the Level 3 derivative assets (liabilities) as of June 30, 2013:
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Fair value hierarchy for nonrecurring measurements table | The following table summarizes major categories of assets and liabilities measured at fair value on a nonrecurring basis during the period and their level within the fair value hierarchy:
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Significant unobservable inputs, nonrecurring | The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets during the six months ended June 30, 2013:
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Financial instruments not measured at fair value in the condensed consolidated balance sheets | The following table sets forth the carrying amount, fair value and fair value hierarchy of the Company’s financial assets and liabilities that are not measured at fair value in the condensed consolidated balance sheets as of June 30, 2013 and December 31, 2012, but for which fair value is disclosed.
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Debt (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt In Default Table | The following table summarizes the Company’s subsidiary non-recourse debt in default or accelerated as of June 30, 2013 and is classified as current non-recourse debt unless otherwise indicated:
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Other Income and Expense (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Other Income Table | The components of other income are summarized as follows:
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Components Of Other Expense Table | The components of other expense are summarized as follows:
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Non-Recourse Debt (Details) (USD $)
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1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||
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May 31, 2013
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Jul. 31, 2013
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Schedule of Significant Transactions [Line Items] | ||||||
Debt Instrument, Face Amount | $ 750,000,000 | $ 750,000,000 | ||||
Extinguishment of Debt, Amount | 928,000,000 | 122,000,000 | 300,000,000 | |||
Loss on extinguishment of debt | (165,000,000) | 0 | (212,000,000) | 0 | ||
Nonrecourse Debt Default [Line Items] | ||||||
Default | 1,691,000,000 | 1,691,000,000 | ||||
Maritza [Member]
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Nonrecourse Debt Default [Line Items] | ||||||
Net Assets | 620,000,000 | 620,000,000 | ||||
Changuinola [Member]
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Nonrecourse Debt Default [Line Items] | ||||||
Net Assets | 231,000,000 | 231,000,000 | ||||
Sonel [Member]
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Nonrecourse Debt Default [Line Items] | ||||||
Net Assets | 375,000,000 | 375,000,000 | ||||
Kavarna [Member]
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Nonrecourse Debt Default [Line Items] | ||||||
Net Assets | 82,000,000 | 82,000,000 | ||||
Saurashtra [Member]
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Nonrecourse Debt Default [Line Items] | ||||||
Net Assets | 13,000,000 | 13,000,000 | ||||
Covenant Violation [Member] | Maritza [Member]
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Nonrecourse Debt Default [Line Items] | ||||||
Default | 832,000,000 | 832,000,000 | ||||
Covenant Violation [Member] | Changuinola [Member]
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Nonrecourse Debt Default [Line Items] | ||||||
Default | 372,000,000 | 372,000,000 | ||||
Covenant Violation [Member] | Sonel [Member]
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Nonrecourse Debt Default [Line Items] | ||||||
Default | 268,000,000 | 268,000,000 | ||||
Covenant Violation [Member] | Kavarna [Member]
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Nonrecourse Debt Default [Line Items] | ||||||
Default | 197,000,000 | 197,000,000 | ||||
Covenant Violation [Member] | Saurashtra [Member]
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Nonrecourse Debt Default [Line Items] | ||||||
Default | 22,000,000 | 22,000,000 | ||||
Tiete [Member] | Nonrecourse Debt [Member]
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Schedule of Significant Transactions [Line Items] | ||||||
Debt Instrument, Face Amount | 496,000,000 | 496,000,000 | ||||
Extinguishment of Debt, Amount | 396,000,000 | |||||
El Salvador [Member] | Nonrecourse Debt [Member]
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Schedule of Significant Transactions [Line Items] | ||||||
Debt Instrument, Face Amount | 310,000,000 | 310,000,000 | ||||
Extinguishment of Debt, Amount | 301,000,000 | |||||
Sul [Member] | Nonrecourse Debt [Member]
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Schedule of Significant Transactions [Line Items] | ||||||
Debt Instrument, Face Amount | 150,000,000 | 150,000,000 | ||||
Extinguishment of Debt, Amount | 37,000,000 | |||||
Mong Duong [Member] | Nonrecourse Debt [Member]
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Schedule of Significant Transactions [Line Items] | ||||||
Debt Instrument, Face Amount | 210,000,000 | 210,000,000 | ||||
DPL Subsidiary [Member] | Nonrecourse Debt [Member]
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Schedule of Significant Transactions [Line Items] | ||||||
Debt Instrument, Face Amount | 200,000,000 | 200,000,000 | ||||
Extinguishment of Debt, Amount | 425,000,000 | |||||
IPL [Member] | Nonrecourse Debt [Member]
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Schedule of Significant Transactions [Line Items] | ||||||
Debt Instrument, Face Amount | 170,000,000 | 170,000,000 | ||||
Extinguishment of Debt, Amount | 110,000,000 | |||||
Masinloc [Member] | Nonrecourse Debt [Member]
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Schedule of Significant Transactions [Line Items] | ||||||
Extinguishment of Debt, Amount | 500,000,000 | |||||
Loss on extinguishment of debt | $ 43,000,000 |
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