AES Corp Files Q3 2024 10-Q

Ticker: AES · Form: 10-Q · Filed: Oct 31, 2024 · CIK: 874761

Sentiment: neutral

Topics: 10-Q, financials, quarterly-report

TL;DR

**AES Corp Q3 2024 10-Q filed. Financials look solid, check for details.**

AI Summary

AES Corp filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including assets and liabilities. Specific financial figures and operational segments are presented within the report, which is crucial for investors and stakeholders to assess the company's current standing.

Why It Matters

This filing provides investors with a detailed look at AES Corp's financial health and operational performance for the third quarter of 2024, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the energy sector can be subject to regulatory and market volatility.

Key Numbers

Key Players & Entities

FAQ

What is the total revenue for AES Corp for the nine months ended September 30, 2024?

The filing does not explicitly state the total revenue for the nine months ended September 30, 2024, but it provides links to financial statements where this information would be detailed.

What were the net earnings attributable to AES Corp for the third quarter of 2024?

The filing does not explicitly state the net earnings for the third quarter of 2024, but it indicates the reporting period and form type.

What is the company's current ratio as of September 30, 2024?

The filing references 'CurrentAssets' and 'CurrentLiabilities' but does not directly provide the current ratio calculation.

Are there any significant changes in AES Corp's long-term debt from the previous fiscal year?

The filing mentions 'OtherLiabilitiesNoncurrent' for both 2024 and 2023, suggesting a comparison point for long-term debt, but specific figures are not detailed in this header.

What are the primary business segments of AES Corp as detailed in this filing?

The filing mentions 'aes:segment' and 'aes:agreement' as XBRL tags, indicating that segment information is part of the detailed financial reporting.

Filing Stats: 5,184 words · 21 min read · ~17 pages · Grade level 19 · Accepted 2024-10-31 16:30:38

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 17 Note 6 - Allowance for Credit Losses 18 Note 7 - Investments in and Advances to Affiliates 18 Note 8 - Debt 20 Note 9 - Commitments and Contingencies 23 Note 10 - Leases 24 Note 11 - Redeemable Stock of Subsidiaries 25 Note 12 - Equity 26 Note 13 - Segments 28 Note 14 - Revenue 30 Note 15 - Other Income and Expense 32 Note 16 - Asset Impairment Expense 32 Note 17 - Income Taxes 33 Note 18 - Held-for-Sale and Dispositions 34 Note 19 - Acquisitions 35 Note 20 - Earnings Per Share 35 Note 21 - Subsequent Events 36

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 37 Executive Summary 37 Review of Consolidated Results of Operations 41 SBU Performance Analysis 48 Key Trends and Uncertainties 55 Capital Resources and Liquidity 64 Critical Accounting Policies and Estimates 71

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 71

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 74

: OTHER INFORMATION

PART II: OTHER INFORMATION 75

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 75

RISK FACTORS

ITEM 1A. RISK FACTORS 78

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 79

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 78

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 78

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 79

EXHIBITS

ITEM 6. EXHIBITS 79

SIGNATURES

SIGNATURES 80 1 | The AES Corporation | September 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

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Condensed Consolidated Balance Sheets (Unaudited) September 30, 2024 December 31, 2023 (in millions, except share and per share amounts) ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,919 $ 1,426 Restricted cash 563 370 Short-term investments 62 395 Accounts receivable, net of allowance of $ 32 and $ 15 , respectively 1,868 1,420 Inventory 646 712 Prepaid expenses 134 177 Other current assets, net of allowance of $ 0 and $ 14 , respectively 1,460 1,387 Current held-for-sale assets 3,874 762 Total current assets 10,526 6,649 NONCURRENT ASSETS Property, plant and equipment, net of accumulated depreciation of $ 8,505 and $ 8,602 , respectively 32,354 29,958 Investments in and advances to affiliates 1,162 941 Debt service reserves and other deposits 77 194 Goodwill 348 348 Other intangible assets, net of accumulated amortization of $ 426 and $ 498 , respectively 1,928 2,243 Deferred income taxes 421 396 Other noncurrent assets, net of allowance of $ 11 and $ 9 , respectively 2,593 3,259 Noncurrent held-for-sale assets 670 811 Total other assets 7,199 8,192 TOTAL ASSETS $ 50,079 $ 44,799 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 1,965 $ 2,199 Accrued interest 328 315 Accrued non-income taxes 257 278 Supplier financing arrangements 698 974 Accrued and other liabilities 1,182 1,334 Recourse debt 1,709 200 Non-recourse debt, including $ 416 and $ 1,080 , respectively, related to variable interest entities 3,237 3,932 Current held-for-sale liabilities 2,999 499 Total current liabilities 12,375 9,731 NONCURRENT LIABILITIES Recourse debt 4,840 4,264 Non-recourse debt, including $ 1,947 and $ 1,715 , respectively, related to variable interest entities 19,666 18,482 Deferred income taxes 1,696 1,245 Other noncurrent liabilities 2,501 3,114 Noncurrent held-for-sale liabilities 457 514 Total noncurrent liabilities 29,160 27,619 Commitments and Contingencies (see Note

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