AES Corp Files 10-Q for Q2 2024

Ticker: AES · Form: 10-Q · Filed: Aug 1, 2024 · CIK: 874761

Sentiment: neutral

Topics: 10-Q, financials, reporting

TL;DR

AES Corp's Q2 2024 10-Q is in. Check financials.

AI Summary

AES Corp filed its 10-Q for the period ending June 30, 2024. The company, based in Arlington, VA, operates in the cogeneration services and small power producers sector. Key financial data and disclosures related to its operations and financial position are detailed within this report.

Why It Matters

This filing provides investors and analysts with an update on AES Corp's financial performance and operational status for the second quarter of 2024, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — 10-Q filings inherently carry medium risk due to the detailed financial and operational information they contain, which can reveal significant company performance and potential future challenges.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of AES Corp?

AES Corp is primarily involved in Cogeneration Services & Small Power Producers, as indicated by its SIC code [4991].

What is the reporting period for this 10-Q filing?

The Conformed Period of Report is June 30, 2024, indicating the filing covers the second quarter of 2024.

Where is AES Corp headquartered?

AES Corp's business and mail address is 4300 WILSON BOULEVARD, ARLINGTON, VA 22203.

When was this 10-Q filing submitted?

The filing was submitted on August 1, 2024, as indicated by the 'Filed as of Date'.

What are some of the financial reporting standards referenced in the filing?

The filing references US GAAP standards for 'OtherAssetsCurrent', 'AccruedLiabilitiesCurrent', 'OtherAssetsNoncurrent', and 'OtherLiabilitiesNoncurrent'.

Filing Stats: 5,022 words · 20 min read · ~17 pages · Grade level 20 · Accepted 2024-08-01 16:31:57

Key Financial Figures

Filing Documents

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION 3

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) 3 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations 4 Condensed Consolidated Statements of Comprehensive Income (Loss) 5 Condensed Consolidated Statements of Changes in Equity 6 Condensed Consolidated Statements of Cash Flows 8 Notes to Condensed Consolidated Financial Statements 9 Note 1 - Financial Statement Presentation 9 Note 2 - Inventory 11 Note 3 - Fair Value 11 Note 4 - Derivative Instruments and Hedging Activities 15 Note 5 - Financing Receivables 16 Note 6 - Allowance for Credit Losses 17 Note 7 - Investments in and Advances to Affiliates 17 Note 8 - Debt 19 Note 9 - Commitments and Contingencies 21 Note 10 - Leases 23 Note 11 - Redeemable Stock of Subsidiaries 24 Note 12 - Equity 24 Note 13 - Segments 27 Note 14 - Revenue 28 Note 15 - Other Income and Expense 30 Note 16 - Asset Impairment Expense 31 Note 17 - Income Taxes 32 Note 18 - Held-for-Sale and Dispositions 32 Note 19 - Acquisitions 33 Note 20 - Earnings Per Share 33

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

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 36 Executive Summary 36 Review of Consolidated Results of Operations 39 SBU Performance Analysis 46 Key Trends and Uncertainties 53 Capital Resources and Liquidity 62 Critical Accounting Policies and Estimates 69

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 69

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 72

: OTHER INFORMATION

PART II: OTHER INFORMATION 73

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 73

RISK FACTORS

ITEM 1A. RISK FACTORS 76

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 76

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 76

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 77

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 77

EXHIBITS

ITEM 6. EXHIBITS 77

SIGNATURES

SIGNATURES 78 1 | The AES Corporation | June 30, 2024 Form 10-Q Glossary of Terms The following terms and acronyms appear in the text of this report and have the definitions indicated below: 2024 Base Rate Order The order issued in April 2024 by the IURC authorizing AES Indiana to, among other things, increase its basic rates and charges by $71 million annually 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 deductions 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 Clean Energy Development AES Clean Energy Development, LLC 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 AGIC AES Global Insurance Company, AES' captive insurance company AOCL Accumulated Other Comprehensive Loss ASC Accounting Standards Codification ASU Accounting Standards Update BESS Battery Energy Storage System CAA United States Clean Air Act CCR Coal Combustion Residuals, which includes bottom ash, fly ash, and air pollution control wastes generated at coal-fired generation plant sites CECL Current Expe

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Condensed Consolidated Balance Sheets (Unaudited) June 30, 2024 December 31, 2023 (in millions, except share and per share amounts) ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,773 $ 1,426 Restricted cash 299 370 Short-term investments 61 395 Accounts receivable, net of allowance of $ 22 and $ 15 , respectively 1,507 1,420 Inventory 661 712 Prepaid expenses 141 177 Other current assets, net of allowance of $ 0 and $ 14 , respectively 1,458 1,387 Current held-for-sale assets 3,655 762 Total current assets 9,555 6,649 NONCURRENT ASSETS Property, Plant and Equipment: Land 488 522 Electric generation, distribution assets and other 29,467 30,190 Accumulated depreciation ( 8,270 ) ( 8,602 ) Construction in progress 9,047 7,848 Property, plant and equipment, net 30,732 29,958 Other Assets: Investments in and advances to affiliates 1,156 941 Debt service reserves and other deposits 76 194 Goodwill 348 348 Other intangible assets, net of accumulated amortization of $ 420 and $ 498 , respectively 1,879 2,243 Deferred income taxes 435 396 Other noncurrent assets, net of allowance of $ 11 and $ 9 , respectively 2,845 3,259 Noncurrent held-for-sale assets 712 811 Total other assets 7,451 8,192 TOTAL ASSETS $ 47,738 $ 44,799 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 1,869 $ 2,199 Accrued interest 242 315 Accrued non-income taxes 229 278 Supplier financing arrangements 553 974 Accrued and other liabilities 1,043 1,334 Recourse debt 890 200 Non-recourse debt, including $ 335 and $ 1,080 , respectively, related to variable interest entities 2,176 3,932 Current held-for-sale liabilities 2,821 499 Total current liabilities 9,823 9,731 NONCURRENT LIABILITIES Recourse debt 5,256 4,264 Non-recourse debt, including $ 2,087 and $ 1,715 , respectively, related to variable interest entities 20,232 18,482 Deferred income taxes 1,588 1,245 Other noncurrent liabilities 2,452 3,11

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