AES Corp Files 2023 Annual Report on Form 10-K

Ticker: AES · Form: 10-K · Filed: Feb 26, 2024 · CIK: 874761

Sentiment: neutral

Topics: 10-K, AES Corp, Financial Report, Energy Sector, Annual Filing

TL;DR

<b>AES Corp has filed its 2023 10-K report detailing its financial performance and operational segments for the fiscal year ending December 31, 2023.</b>

AI Summary

AES CORP (AES) filed a Annual Report (10-K) with the SEC on February 26, 2024. AES Corp filed its 2023 Form 10-K on February 26, 2024, reporting on the fiscal year ending December 31, 2023. The filing covers financial data for the fiscal years ending December 31, 2023, 2022, 2021, and 2020. Key financial statement elements include revenues, net income, EPS, debt/equity, cash, operating margin, gross margin, total assets, and total debt. The company operates within the Cogeneration Services & Small Power Producers industry (SIC 4991). AES Corp is incorporated in Delaware with its principal business address in Arlington, VA.

Why It Matters

For investors and stakeholders tracking AES CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of AES Corp's financial health, operational segments, and risk factors, crucial for investors and stakeholders to assess the company's performance and future outlook. Understanding the detailed financial statements, including revenues, net income, and debt levels, is essential for evaluating the company's profitability, solvency, and strategic direction within the energy sector.

Risk Assessment

Risk Level: medium — AES CORP shows moderate risk based on this filing. The company's financial performance is subject to various risks inherent in the energy sector, including regulatory changes, market volatility, and operational challenges, as detailed in the risk factors section of the 10-K.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess AES Corp's financial health and future prospects.

Key Numbers

Key Players & Entities

FAQ

When did AES CORP file this 10-K?

AES CORP filed this Annual Report (10-K) with the SEC on February 26, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by AES CORP (AES).

Where can I read the original 10-K filing from AES CORP?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by AES CORP.

What are the key takeaways from AES CORP's 10-K?

AES CORP filed this 10-K on February 26, 2024. Key takeaways: AES Corp filed its 2023 Form 10-K on February 26, 2024, reporting on the fiscal year ending December 31, 2023.. The filing covers financial data for the fiscal years ending December 31, 2023, 2022, 2021, and 2020.. Key financial statement elements include revenues, net income, EPS, debt/equity, cash, operating margin, gross margin, total assets, and total debt..

Is AES CORP a risky investment based on this filing?

Based on this 10-K, AES CORP presents a moderate-risk profile. The company's financial performance is subject to various risks inherent in the energy sector, including regulatory changes, market volatility, and operational challenges, as detailed in the risk factors section of the 10-K.

What should investors do after reading AES CORP's 10-K?

Investors should review the detailed financial statements and risk factors in the 10-K to assess AES Corp's financial health and future prospects. The overall sentiment from this filing is neutral.

How does AES CORP compare to its industry peers?

AES Corp operates in the Cogeneration Services & Small Power Producers industry, a sector focused on generating electricity and heat from various energy sources.

Are there regulatory concerns for AES CORP?

As a publicly traded company, AES Corp is subject to the regulations of the U.S. Securities and Exchange Commission (SEC), requiring regular filings like the 10-K.

Industry Context

AES Corp operates in the Cogeneration Services & Small Power Producers industry, a sector focused on generating electricity and heat from various energy sources.

Regulatory Implications

As a publicly traded company, AES Corp is subject to the regulations of the U.S. Securities and Exchange Commission (SEC), requiring regular filings like the 10-K.

What Investors Should Do

  1. Review the full 10-K filing for detailed financial statements and management discussion.
  2. Analyze the company's segment reporting to understand performance across different business units.
  3. Assess the risk factors section for potential challenges and uncertainties facing AES Corp.

Key Dates

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 31, 2023, providing updated financial and operational data compared to previous filings.

Filing Stats: 4,448 words · 18 min read · ~15 pages · Grade level 15.8 · Accepted 2024-02-26 17:24:09

Key Financial Figures

Filing Documents

RISK FACTORS

ITEM 1A. RISK FACTORS 54

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 71 I TEM 1C. CYBERSECURITY 71

PROPERTIES

ITEM 2. PROPERTIES 73

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 73

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 76 PART II 77

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 77

[RESERVED]

ITEM 6. [RESERVED] 78

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 79 Executive Summary 79 Review of Consolidated Results of Operations 80 SBU Performance Analysis 86 Key Trends and Uncertainties 92 Capital Resources and Liquidity 97 Critical Accounting Policies and Estimates 106

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 110

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 114 Consolidated Balance Sheets 119 Consolidated Statements of Operations 120 Consolidated Statements of Comprehensive Income (Loss) 121 Consolidated Statements of Changes in Equity 122 Consolidated Statements of Cash Flows 123 Note 1 - General and Summary of Significant Accounting Policies 125 Note 2 - Inventory 137 Note 3 - Property, Plant and Equipment 137 Note 4 - Asset Retirement Obligation s 138 Note 5 - Fair Value 139 Note 6 - Derivative Instruments and Hedging Activities 145 Note 7 - Financing Receivables 146 Note 8 - Investments in and Advances to Affiliates 147 Note 9 - Goodwill and Other Intangible Assets 149 Note 10 - Regulatory Assets and Liabilities 151 Note 11 - Debt 152 Note 12 - Commitments 156 Note 13 - Contingencies 156 Note 14 - Leases 157 Note 15 - Benefit Plans 159 Note 16 - Redeemable Stock of Subsidiaries 163 Note 17 - Equity 164 Note 18 - Segments and Geographic Information 169 Note 19 - Share-Based Compensation 172 Note 20 - Revenue 173 Note 21 - Other Income and Expense 174 Note 22 - Asset Impairment Expense 175 Note 23 - Income Taxes 178 Note 24 - Held-for-Sale and Dispositions 182 Note 25 - Acquisitions 183 Note 26 - Earnings Per Share 187 Note 27 - Risks and Uncertainties 188 Note 28 - Related Party Transactions 190 Note 29 - Subsequent Events 190

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 191

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 191

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 193

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 193 PART III 194

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 194

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 194

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 194

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS, AND DIRECTOR INDEPENDENCE 195

PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 195

- ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULE 196

PART IV - ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULE 196

SIGNATURES

SIGNATURES 198 1 | 2023 Annual Report Glossary of Terms The following is a list of frequently used terms and abbreviations that appear in the text of this report and have the definitions indicated below: ACED AES Clean Energy Development, LLC Adjusted EBITDA Adjusted earnings before interest income and expense, taxes, depreciation and amortization, a non-GAAP measure of operating performance Adjusted EBITDA with Tax Attributes Adjusted earnings before interest income and expense, taxes, depreciation and amortization, adding back the pre-tax effect of Production Tax Credits, Investment Tax Credits and depreciation tax expense allocated to tax equity investors, a non-GAAP measure Adjusted EPS Adjusted Earnings Per Share, a non-GAAP measure Adjusted PTC Adjusted Pre-tax Contribution, a non-GAAP measure of operating performance AES The Parent Company and its subsidiaries and affiliates AES Andes AES Andes S.A., formerly AES Gener AES Brasil AES Brasil Operaes S.A., formerly branded as AES Tiet AES Indiana Indianapolis Power & Light Company, formerly branded as IPL. AES Indiana is wholly-owned by IPALCO AES Ohio The Dayton Power & Light Company, formerly branded as DP&L. AES Ohio is wholly-owned by DPL AES Renewable Holdings AES Renewable Holdings, LLC, formerly branded as AES Distributed Energy AFUDC Allowance for Funds Used During Construction AIMCo Alberta Investment Management Corporation ANEEL Brazilian National Electric Energy Agency AOCL Accumulated Other Comprehensive Loss ARO Asset Retirement Obligations ASC Accounting Standards Codification BACT Best Available Control Technology BESS Battery energy storage system BOT Build, Operate and Transfer CAA U.S. Clean Air Act CAMMESA Wholesale Electric Market Administrator in Argentina CCEE Brazilian Chamber of Electric Energy Commercialization CCGT Combined Cycle Gas Turbine CCR Coal Combustion Residuals, which includes bottom ash, fly ash and air pollution control wastes generated

BUSINESS

ITEM 1. BUSINESS Item 1.— Business is an outline of our strategy and our businesses by SBU, including key financial drivers. Additional items that may have an impact on our businesses are discussed in Item 1A.— Risk Factors and Item 3.— Legal Proceedings . 5 | 2023 Annual Report Executive Summary Incorporated in 1981, AES is a global energy company accelerating the future of energy. Together with our many stakeholders, we are improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. Our Strategy AES remains an industry leader in developing and operating the innovative solutions that enable the transition to zero and low-carbon sources of energy. We continue to see an enormous opportunity from the once-in-a-lifetime transformation of the electricity sector driven by decarbonization, electrification, and digitalization. The focus of our strategy is to partner with large corporations that are transitioning to carbon-free sources of electricity. One example of our successful execution is our collaboration with large technology companies. Specifically, demand from data centers in the U.S. is expected to nearly double in the next three years. Our well-established relationships with these customers, combined with our proven track record of delivering our projects, positions us well to take advantage of this opportunity. In 2023, we signed long-term contracts for 5.6 GW of renewables, bringing our backlog of projects — those with signed contracts, but which are not yet in operation — to 12.3 GW. Our backlog serves as the core component of future growth. As a result, we have been consistently rated by Bloomberg New Energy Finance as one of the top two largest sellers globally of renewable power to corporate customers, with a focus

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