Achievements
-
2016
-
Consolidated Net Cash Provided by Operating Activities of $2,884
million, at the high end of the guidance range of $2,000 to $2,900
million
-
Proportional Free Cash Flow of $1,417 million, exceeding the
guidance range of $1,000 to $1,350 million
-
Diluted EPS of $0.00, primarily driven by non-cash impairments
-
Adjusted EPS of $0.98, within the guidance range of $0.95 to $1.05
-
Brought on-line 2,976 MW of new projects, with an additional 3,389
MW under construction and expected to come on-line through 2019
-
In partnership with AIMCo, agreed to acquire sPower, the largest
independent solar developer in the United States
Guidance and Expectations
-
Initiating 2017 guidance for Consolidated Net Cash Provided by
Operating Activities of $2,000 to $2,800 million, Consolidated Free
Cash Flow of $1,400 to $2,000 million and Adjusted EPS of $1.00 to
$1.10
-
Expecting 8% to 10% average annual growth in Consolidated Free Cash
Flow and Adjusted EPS through 2020, off the mid-point of 2016 guidance
ARLINGTON, Va.--(BUSINESS WIRE)--
The
AES Corporation (NYSE: AES) today reported financial results for the
year ending December 31, 2016. Overall results reflected the impact from
the devaluation in foreign currencies, lower electricity prices, certain
gains that benefited 2015 results and higher non-cash impairment losses,
partially offset by a lower effective tax rate. The Company also
benefited from improvements in working capital.
Compared with last year, these results primarily reflect lower margins
at: the US Strategic Business Unit (SBU) largely due to lower wholesale
prices and lower contributions from regulated customers at DPL in Ohio;
the Brazil SBU, reflecting the impacts from the expiration of Tietê’s
Power Purchase Agreement (PPA) in 2015, as well as a liability reversal
at Eletropaulo taken in 2015, which benefited 2015 results; and the
Europe SBU, which was driven by a contracted capacity price reduction at
Maritza in Bulgaria, following the successful settlement of overdue
receivables in 2016, as well as the devaluation of the Kazakhstan Tenge.
Consolidated Net Cash Provided by Operating Activities for full year
2016 was $2,884 million, an increase of $750 million compared to full
year 2015. The increase was primarily driven by higher collections at
the Company’s distribution businesses in Brazil, Eletropaulo and Sul,
and the settlement of overdue receivables at Maritza in Bulgaria. These
positive contributions were offset by lower margins across the SBUs, as
well as the recovery of overdue receivables in the Dominican Republic in
2015, which benefited 2015 results. Full Year 2016 Proportional Free
Cash Flow (a non-GAAP financial measure) increased $176 million to
$1,417 million compared to full year 2015, primarily due to the same
factors as Consolidated Net Cash Provided by Operating Activities.
Full Year 2016 Diluted Earnings Per Share from Continuing Operations
(Diluted EPS) was $0.00, a decrease of $0.48 compared to full year 2015.
Full year 2016 Diluted EPS reflects higher impairment losses, primarily
at certain merchant generating assets at DPL in Ohio and lower overall
margins, partially offset by a lower effective tax rate. Adjusted
Earnings Per Share (Adjusted EPS, a non-GAAP financial measure) for full
year 2016 decreased $0.27 to $0.98, primarily due to lower margins,
$0.06 lower equity in earnings of affiliates from the restructuring gain
at Guacolda in Chile executed in 2015 and the $0.06 impact from a
reserve taken in 2016 for recoverable costs incurred in prior years,
partially offset by a lower adjusted effective tax rate of 23% versus
29% in 2015.
"We ended 2016 on a high note, achieving our guidance for all metrics,
with cash flow coming in at the high end, and Adjusted EPS well within,
our ranges. We also continued to make strides on our strategic
objectives by completing 3 GW of construction projects, selling non-core
assets and making further cost cuts and revenue enhancements," said Andrés
Gluski, AES President and Chief Executive Officer. "The recent
purchase of sPower increases our long-term contracted, U.S.
Dollar-denominated, renewable portfolio, which was one of our stated
objectives for 2016."
"Our solid results in 2016 position us well to deliver 8% to 10% average
annual growth in cash flow, earnings and our dividend through 2020,"
said Tom
O'Flynn, AES Executive Vice President and Chief Financial Officer.
"sPower is a credit-positive business that we expect to be accretive to
earnings. Our continued execution on our strategic objectives puts us on
track to achieve investment grade statistics by 2020."
Table 1: Key Financial Results
|
|
|
|
|
|
|
|
Fourth Quarter
|
Full Year
|
|
Full Year 2016 Guidance
|
|
$ in Millions, Except Per Share Amounts
|
2016
|
|
2015
|
2016
|
|
2015
|
|
|
Consolidated Net Cash Provided by Operating Activities
|
$
|
702
|
|
|
$
|
629
|
|
$
|
2,884
|
|
|
$
|
2,134
|
|
|
$2,000-$2,900
|
|
Proportional Free Cash Flow 1
|
$
|
347
|
|
|
$
|
293
|
|
$
|
1,417
|
|
|
$
|
1,241
|
|
|
$1,000-$1,350
|
|
Diluted EPS from Continuing Operations
|
$
|
(0.30
|
)
|
|
$
|
(0.11
|
)
|
$0.00
|
|
$
|
0.48
|
|
|
N/A
|
|
Adjusted EPS 1
|
$
|
0.35
|
|
|
$
|
0.36
|
|
$
|
0.98
|
|
|
$
|
1.25
|
|
|
$0.95-$1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 A non-GAAP financial measure. See “Non-GAAP Financial
Measures” for definitions and reconciliations to the most comparable
GAAP financial measures.
Guidance and Expectations
The Company is providing ranges and expected average annual growth rates
for Consolidated Free Cash Flow and Adjusted EPS in its 2017 guidance
and its 2020 expectations. The Company previously had provided
Proportional Free Cash Flow to reflect the Company's ownership-adjusted
share of free cash flow. As a result of recent interpretive guidance
issued by the SEC staff, the Company will no longer be providing
guidance and expectations for Proportional Free Cash Flow.
Table 2: Guidance and Expectations
|
|
|
|
|
|
|
|
|
|
$ in Millions, Except Per Share Amounts
|
|
|
2016 Guidance & Expectations
|
|
2017 Guidance
|
|
2020 Expectations
|
|
Consolidated Net Cash Provided by Operating Activities
|
|
|
$2,000-$2,900
|
|
$2,000-$2,800
|
|
N/A
|
|
Consolidated Free Cash Flow1
|
|
|
$1,300-$2,200
|
|
$1,400-$2,000
|
|
8%-10% growth off mid-point of 2016 expectation
|
|
Adjusted EPS 1,2
|
|
|
$0.95-$1.05
|
|
$1.00-$1.10
|
|
8%-10% growth off mid-point of 2016 guidance
|
|
|
|
|
|
|
|
|
|
1 A non-GAAP financial measure. See “Non-GAAP Financial
Measures” for definitions and reconciliations to the most comparable
GAAP financial measures.
2 In providing its full year 2017 Adjusted EPS guidance, the
Company notes that there could be differences between expected reported
earnings and estimated operating earnings for matters such as, but not
limited to: (a) unrealized gains or losses related to derivative
transactions; (b) unrealized foreign currency gains or losses; (c) gains
or losses due to dispositions and acquisitions of business interests;
(d) losses due to impairments; and (e) costs due to the early retirement
of debt. At this time, management is not able to estimate the aggregate
impact, if any, of these items on reported earnings. Accordingly, the
Company is not able to provide a corresponding GAAP equivalent for its
Adjusted EPS guidance.
The Company is initiating 2017 guidance and providing its expectations
for 2020 as follows:
-
The Company is initiating 2017 guidance ranges for Consolidated Net
Cash Provided by Operating Activities of $2,000 to $2,800 million,
Consolidated Free Cash Flow of $1,400 to $2,000 million and Adjusted
EPS of $1.00 to $1.10. 2017 guidance is based on the following
assumptions:
-
The dilution impact from the timing of planned asset sales is
expected to be in the range of $0.03 to $0.04.
-
The Company expects to raise at least $500 million in equity
proceeds from asset sales in 2017 that will be reallocated in 2017
and 2018.
-
The Company expects an effective tax rate of 31% to 33%.
-
The Company expects 8% to 10% average annual growth in Consolidated
Free Cash Flow and Adjusted EPS through 2020 off the mid-point of its
2016 expectations and guidance.
-
The Company also expects 8% to 10% average annual growth in Parent
Free Cash Flow (a non-GAAP financial metric) through 2020 off the
mid-point of its 2016 expectation of $525 to $625 million. Subject
to Board approval, and in line with this expectation, the Company
expects its shareholder dividend to grow 8% to 10% annually on
average, as well.
The Company's 2017 guidance and its expectations through 2020 are based
on foreign currency and commodity forward curves as of December 31,
2016. As a part of the Company's strategic shift to reduce AES' exposure
to the Brazilian distribution business, the Company's 2017 guidance and
its expectations through 2020 assumes the deconsolidation of Eletropaulo.
Additional Highlights
-
In February 2017, the Company and Alberta Investment Management
Corporation (AIMCo) agreed to acquire 100% of FTP Power LLC (sPower)
for $853 million in cash, plus the assumption of $724 million in
non-recourse debt. In connection with this transaction, AES and AIMCo
will directly and independently purchase and own slightly below 50%
equity interests in sPower. A portion of the acquisition will be
funded with $90 million of subordinated debt to sPower, and the
remaining amount of $763 million will be funded with equity from AES
and AIMCo in equal proportion.
-
The sPower portfolio includes 1,274 MW of solar and wind projects
in operation or under construction and a development pipeline of
more than 10,000 MW, located in the United States. The operating
assets and projects under construction are under long-term Power
Purchase Agreements (PPA) with an average remaining life of 21
years. The offtakers under the PPAs have an average credit rating
of A1. After closing, AES' ownership of renewable energy projects
in operation and under construction will grow from 8,278 MW to
9,552 MW, including hydro, wind, solar and energy storage.
-
This transaction is expected to close by the third quarter of
2017, subject to review or approval by the Federal Energy
Regulatory Commission, the Committee on Foreign Investment in the
United States and the expiration or termination of any waiting
period under the Hart-Scott-Rodino Act. The acquisition price is
subject to customary post-signing purchase price adjustments.
-
In 2016, the Company's Parent Free Cash Flow was $579 million, within
the Company's expectation for $525 to $625 million and up 9% from 2015.
-
In 2016, the Company used $312 million to prepay and refinance Parent
debt.
-
In 2016, the Company returned $369 million to shareholders through
dividends and share repurchases.
-
The Company paid $290 million in quarterly dividends. The Company
also increased its quarterly dividend by 9.1% to $0.12 per share
beginning in the first quarter of 2017.
-
The Company repurchased 9 million shares for $79 million, at an
average price of $9.07 per share. All share repurchases were
executed during the first quarter of 2016.
-
In 2016, the Company successfully completed 2,976 MW of projects on
time and on budget.
-
The Company currently has 3,389 MW of capacity under construction
and expected to come on-line through 2019.
-
In 2016, the Company announced or closed approximately $500 million in
asset sale proceeds to AES.
Non-GAAP Financial Measures
See Non-GAAP Financial Measures for definitions of Consolidated Free
Cash Flow, Proportional Free Cash Flow, Adjusted Earnings Per Share,
Adjusted Pre-Tax Contribution, as well as reconciliations to the most
comparable GAAP financial measures.
Attachments
Consolidated Statements of Operations, Segment Information, Consolidated
Balance Sheets, Consolidated Statements of Cash Flows, Non-GAAP
Financial Measures, Parent Financial Information, 2016 Financial
Guidance Elements and 2017 Financial Guidance Elements.
Conference Call Information
AES will host a conference call on Monday, February 27, 2017 at 9:00
a.m. Eastern Standard Time (EST). Interested parties may listen to the
teleconference by dialing 1-888-317-6003 at least ten minutes before the
start of the call. International callers should dial +1-412-317-6061.
The Conference ID for this call is 0110900. Internet access to the
conference call and presentation materials will be available on the AES
website at www.aes.com by
selecting “Investors”
and then “Presentations
and Webcasts.”
A webcast replay, as well as a replay in downloadable MP3 format, will
be accessible at www.aes.com beginning
shortly after the completion of the call.
About AES
The AES Corporation (NYSE: AES) is a Fortune 200 global power company.
We provide affordable, sustainable energy to 17 countries through our
diverse portfolio of distribution businesses as well as thermal and
renewable generation facilities. Our workforce of 19,000 people is
committed to operational excellence and meeting the world’s changing
power needs. Our 2016 revenues were $14 billion and we own and manage
$36 billion in total assets. To learn more, please visit www.aes.com.
Follow AES on Twitter @TheAESCorp.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning
of the Securities Act of 1933 and of the Securities Exchange Act of
1934. Such forward-looking statements include, but are not limited to,
those related to future earnings, growth and financial and operating
performance. Forward-looking statements are not intended to be a
guarantee of future results, but instead constitute AES’ current
expectations based on reasonable assumptions. Forecasted financial
information is based on certain material assumptions. These assumptions
include, but are not limited to, our accurate projections of future
interest rates, commodity price and foreign currency pricing, continued
normal levels of operating performance and electricity volume at our
distribution companies and operational performance at our generation
businesses consistent with historical levels, as well as achievements of
planned productivity improvements and incremental growth investments at
normalized investment levels and rates of return consistent with prior
experience.
Actual results could differ materially from those projected in our
forward-looking statements due to risks, uncertainties and other
factors. Important factors that could affect actual results are
discussed in AES’ filings with the Securities and Exchange Commission
(the “SEC”), including, but not limited to, the risks discussed under
Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in
AES’ 2016 Annual Report on Form 10-K and in subsequent reports filed
with the SEC. Readers are encouraged to read AES’ filings to learn more
about the risk factors associated with AES’ business. AES undertakes no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
Any Stockholder who desires a copy of the Company’s 2016 Annual Report
on Form 10-K dated on or about February 24, 2017 with the SEC may obtain
a copy (excluding Exhibits) without charge by addressing a request to
the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson
Boulevard, Arlington, Virginia 22203. Exhibits also may be requested,
but a charge equal to the reproduction cost thereof will be made. A copy
of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.
|
|
|
THE AES CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
|
|
|
(in millions, except per share amounts)
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Regulated
|
|
|
|
$
|
6,629
|
|
|
$
|
6,852
|
|
|
$
|
7,852
|
|
|
Non-Regulated
|
|
|
|
6,957
|
|
|
7,303
|
|
|
8,272
|
|
|
Total revenue
|
|
|
|
13,586
|
|
|
14,155
|
|
|
16,124
|
|
|
Cost of Sales:
|
|
|
|
|
|
|
|
|
|
Regulated
|
|
|
|
(6,078
|
)
|
|
(5,764
|
)
|
|
(6,615
|
)
|
|
Non-Regulated
|
|
|
|
(5,075
|
)
|
|
(5,533
|
)
|
|
(6,529
|
)
|
|
Total cost of sales
|
|
|
|
(11,153
|
)
|
|
(11,297
|
)
|
|
(13,144
|
)
|
|
Operating margin
|
|
|
|
2,433
|
|
|
2,858
|
|
|
2,980
|
|
|
General and administrative expenses
|
|
|
|
(194
|
)
|
|
(196
|
)
|
|
(187
|
)
|
|
Interest expense
|
|
|
|
(1,431
|
)
|
|
(1,344
|
)
|
|
(1,451
|
)
|
|
Interest income
|
|
|
|
464
|
|
|
460
|
|
|
320
|
|
|
Loss on extinguishment of debt
|
|
|
|
(13
|
)
|
|
(182
|
)
|
|
(261
|
)
|
|
Other expense
|
|
|
|
(103
|
)
|
|
(58
|
)
|
|
(65
|
)
|
|
Other income
|
|
|
|
65
|
|
|
82
|
|
|
121
|
|
|
Gain on disposal and sale of businesses
|
|
|
|
29
|
|
|
29
|
|
|
358
|
|
|
Goodwill impairment expense
|
|
|
|
—
|
|
|
(317
|
)
|
|
(164
|
)
|
|
Asset impairment expense
|
|
|
|
(1,096
|
)
|
|
(285
|
)
|
|
(91
|
)
|
|
Foreign currency transaction gains (losses)
|
|
|
|
(15
|
)
|
|
107
|
|
|
11
|
|
|
Other non-operating expense
|
|
|
|
(2
|
)
|
|
—
|
|
|
(128
|
)
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN
EARNINGS OF AFFILIATES
|
|
|
|
137
|
|
|
1,154
|
|
|
1,443
|
|
|
Income tax benefit (expense)
|
|
|
|
188
|
|
|
(472
|
)
|
|
(371
|
)
|
|
Net equity in earnings of affiliates
|
|
|
|
36
|
|
|
105
|
|
|
19
|
|
|
INCOME FROM CONTINUING OPERATIONS
|
|
|
|
361
|
|
|
787
|
|
|
1,091
|
|
|
Income (loss) from operations of discontinued businesses, net of
income tax benefit (expense) of $9, $7, and $(71), respectively
|
|
|
|
(19
|
)
|
|
(25
|
)
|
|
111
|
|
|
Net loss from disposal and impairments of discontinued businesses,
net of income tax benefit (expense) of $266, $0, and $(4),
respectively
|
|
|
|
(1,119
|
)
|
|
—
|
|
|
(55
|
)
|
|
NET INCOME (LOSS)
|
|
|
|
(777
|
)
|
|
762
|
|
|
1,147
|
|
|
Noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
Less: Net (income) attributable to noncontrolling interests
|
|
|
|
(364
|
)
|
|
(456
|
)
|
|
(386
|
)
|
|
Less: Net loss attributable to redeemable stocks of subsidiaries
|
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
Plus: Loss from discontinued operations attributable to
noncontrolling interests
|
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
Total net income attributable to noncontrolling interests
|
|
|
|
(353
|
)
|
|
(456
|
)
|
|
(378
|
)
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION
|
|
|
|
$
|
(1,130
|
)
|
|
$
|
306
|
|
|
$
|
769
|
|
|
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax
|
|
|
|
$
|
8
|
|
|
$
|
331
|
|
|
$
|
705
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
|
(1,138
|
)
|
|
(25
|
)
|
|
64
|
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION
|
|
|
|
$
|
(1,130
|
)
|
|
$
|
306
|
|
|
$
|
769
|
|
|
BASIC EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to The AES
Corporation common stockholders, net of tax
|
|
|
|
$
|
—
|
|
|
$
|
0.48
|
|
|
$
|
0.98
|
|
|
Income (loss) from discontinued operations attributable to The AES
Corporation common stockholders, net of tax
|
|
|
|
(1.72
|
)
|
|
(0.03
|
)
|
|
0.09
|
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS
|
|
|
|
$
|
(1.72
|
)
|
|
$
|
0.45
|
|
|
$
|
1.07
|
|
|
DILUTED EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to The AES
Corporation common stockholders, net of tax
|
|
|
|
$
|
—
|
|
|
$
|
0.48
|
|
|
$
|
0.97
|
|
|
Income (loss) from discontinued operations attributable to The AES
Corporation common stockholders, net of tax
|
|
|
|
(1.71
|
)
|
|
(0.04
|
)
|
|
0.09
|
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS
|
|
|
|
$
|
(1.71
|
)
|
|
$
|
0.44
|
|
|
$
|
1.06
|
|
|
DIVIDENDS DECLARED PER COMMON SHARE
|
|
|
|
$
|
0.45
|
|
|
$
|
0.41
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
(in millions, except per share amounts)
|
|
Revenue:
|
|
|
|
|
|
|
|
Regulated
|
|
|
|
$
|
1,703
|
|
|
$
|
1,533
|
|
|
Non-Regulated
|
|
|
|
1,841
|
|
|
1,686
|
|
|
Total revenue
|
|
|
|
3,544
|
|
|
3,219
|
|
|
Cost of Sales:
|
|
|
|
|
|
|
|
Regulated
|
|
|
|
(1,557
|
)
|
|
(1,317
|
)
|
|
Non-Regulated
|
|
|
|
(1,325
|
)
|
|
(1,185
|
)
|
|
Total cost of sales
|
|
|
|
(2,882
|
)
|
|
(2,502
|
)
|
|
Operating margin
|
|
|
|
662
|
|
|
717
|
|
|
General and administrative expenses
|
|
|
|
(59
|
)
|
|
(46
|
)
|
|
Interest expense
|
|
|
|
(345
|
)
|
|
(349
|
)
|
|
Interest income
|
|
|
|
99
|
|
|
139
|
|
|
Loss on extinguishment of debt
|
|
|
|
(1
|
)
|
|
(21
|
)
|
|
Other expense
|
|
|
|
(61
|
)
|
|
(11
|
)
|
|
Other income
|
|
|
|
22
|
|
|
40
|
|
|
Gain (loss) on disposal and sale of businesses
|
|
|
|
(1
|
)
|
|
5
|
|
|
Goodwill impairment expense
|
|
|
|
—
|
|
|
(317
|
)
|
|
Asset impairment expense
|
|
|
|
(623
|
)
|
|
(9
|
)
|
|
Foreign currency transaction gains
|
|
|
|
1
|
|
|
103
|
|
|
Other non-operating expense
|
|
|
|
(2
|
)
|
|
—
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN
EARNINGS OF AFFILIATES
|
|
|
|
(308
|
)
|
|
251
|
|
|
Income tax benefit (expense)
|
|
|
|
353
|
|
|
(206
|
)
|
|
Net equity in earnings of affiliates
|
|
|
|
11
|
|
|
9
|
|
|
INCOME FROM CONTINUING OPERATIONS
|
|
|
|
56
|
|
|
54
|
|
|
(Loss) from operations of discontinued businesses, net of income tax
benefit of $5, and $1, respectively
|
|
|
|
(12
|
)
|
|
(13
|
)
|
|
Net (loss) from disposal and impairments of discontinued businesses,
net of income tax (expense) of $(135), and $0, respectively
|
|
|
|
(737
|
)
|
|
—
|
|
|
NET INCOME (LOSS)
|
|
|
|
(693
|
)
|
|
41
|
|
|
Noncontrolling interests:
|
|
|
|
|
|
|
|
Less: (Income) from continuing operations attributable to
noncontrolling interests
|
|
|
|
(259
|
)
|
|
(126
|
)
|
|
Less: Net loss attributable to redeemable stocks of subsidiaries
|
|
|
|
3
|
|
|
—
|
|
|
Less: (Income) loss from discontinued operations attributable to
noncontrolling interests
|
|
|
|
—
|
|
|
—
|
|
|
Total net income attributable to noncontrolling interests
|
|
|
|
(256
|
)
|
|
(126
|
)
|
|
NET (LOSS) ATTRIBUTABLE TO THE AES CORPORATION
|
|
|
|
$
|
(949
|
)
|
|
$
|
(85
|
)
|
|
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:
|
|
|
|
|
|
|
|
(Loss) from continuing operations, net of tax
|
|
|
|
$
|
(200
|
)
|
|
$
|
(72
|
)
|
|
(Loss) from discontinued operations, net of tax
|
|
|
|
(749
|
)
|
|
(13
|
)
|
|
Net (loss)
|
|
|
|
$
|
(949
|
)
|
|
$
|
(85
|
)
|
|
BASIC EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
(Loss) from continuing operations attributable to The AES
Corporation common stockholders, net of tax
|
|
|
|
$
|
(0.30
|
)
|
|
$
|
(0.11
|
)
|
|
(Loss) from discontinued operations attributable to The AES
Corporation common stockholders, net of tax
|
|
|
|
(1.14
|
)
|
|
(0.02
|
)
|
|
NET (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS
|
|
|
|
$
|
(1.44
|
)
|
|
$
|
(0.13
|
)
|
|
DILUTED EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
(Loss) from continuing operations attributable to The AES
Corporation common stockholders, net of tax
|
|
|
|
$
|
(0.30
|
)
|
|
$
|
(0.11
|
)
|
|
(Loss) from discontinued operations attributable to The AES
Corporation common stockholders, net of tax
|
|
|
|
(1.14
|
)
|
|
(0.02
|
)
|
|
NET (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS
|
|
|
|
$
|
(1.44
|
)
|
|
$
|
(0.13
|
)
|
|
DIVIDENDS DECLARED PER COMMON SHARE
|
|
|
|
$
|
0.23
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
|
|
Strategic Business Unit (SBU) Information
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
(in millions)
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
$
|
847
|
|
|
$
|
842
|
|
|
$
|
3,429
|
|
|
$
|
3,593
|
|
|
Andes
|
|
|
|
642
|
|
|
595
|
|
|
2,506
|
|
|
2,489
|
|
|
Brazil
|
|
|
|
994
|
|
|
775
|
|
|
3,755
|
|
|
3,858
|
|
|
MCAC
|
|
|
|
576
|
|
|
557
|
|
|
2,172
|
|
|
2,353
|
|
|
EMEA
|
|
|
|
243
|
|
|
270
|
|
|
918
|
|
|
1,191
|
|
|
Asia
|
|
|
|
178
|
|
|
183
|
|
|
752
|
|
|
684
|
|
|
Corporate, Other and Inter-SBU eliminations
|
|
|
|
64
|
|
|
(3
|
)
|
|
54
|
|
|
(13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue
|
|
|
|
$
|
3,544
|
|
|
$
|
3,219
|
|
|
$
|
13,586
|
|
|
$
|
14,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
|
|
|
(in millions, except share and per share data)
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
1,305
|
|
|
$
|
1,257
|
|
|
Restricted cash
|
|
|
|
278
|
|
|
295
|
|
|
Short-term investments
|
|
|
|
798
|
|
|
469
|
|
|
Accounts receivable, net of allowance for doubtful accounts of $111
and $87, respectively
|
|
|
|
2,166
|
|
|
2,302
|
|
|
Inventory
|
|
|
|
630
|
|
|
671
|
|
|
Deferred income taxes
|
|
|
|
—
|
|
|
—
|
|
|
Prepaid expenses
|
|
|
|
83
|
|
|
106
|
|
|
Other current assets
|
|
|
|
1,151
|
|
|
1,318
|
|
|
Current assets of discontinued operations and held-for-sale
businesses
|
|
|
|
—
|
|
|
424
|
|
|
Total current assets
|
|
|
|
6,411
|
|
|
6,842
|
|
|
NONCURRENT ASSETS
|
|
|
|
|
|
|
|
Property, Plant and Equipment:
|
|
|
|
|
|
|
|
Land
|
|
|
|
779
|
|
|
702
|
|
|
Electric generation, distribution assets and other
|
|
|
|
28,539
|
|
|
27,282
|
|
|
Accumulated depreciation
|
|
|
|
(9,528
|
)
|
|
(8,939
|
)
|
|
Construction in progress
|
|
|
|
3,057
|
|
|
2,977
|
|
|
Property, plant and equipment, net
|
|
|
|
22,847
|
|
|
22,022
|
|
|
Other Assets:
|
|
|
|
|
|
|
|
Investments in and advances to affiliates
|
|
|
|
621
|
|
|
610
|
|
|
Debt service reserves and other deposits
|
|
|
|
593
|
|
|
555
|
|
|
Goodwill
|
|
|
|
1,157
|
|
|
1,157
|
|
|
Other intangible assets, net of accumulated amortization of $519 and
$481, respectively
|
|
|
|
359
|
|
|
340
|
|
|
Deferred income taxes
|
|
|
|
781
|
|
|
410
|
|
|
Service concession assets, net of accumulated amortization of $114
and $34, respectively
|
|
|
|
1,445
|
|
|
1,543
|
|
|
Other noncurrent assets
|
|
|
|
1,905
|
|
|
2,109
|
|
|
Total other assets
|
|
|
|
6,861
|
|
|
7,606
|
|
|
TOTAL ASSETS
|
|
|
|
$
|
36,119
|
|
|
$
|
36,470
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
1,656
|
|
|
$
|
1,571
|
|
|
Accrued interest
|
|
|
|
247
|
|
|
236
|
|
|
Accrued and other liabilities
|
|
|
|
2,066
|
|
|
2,286
|
|
|
Non-recourse debt, including $273 and $258, respectively, related to
variable interest entities
|
|
|
|
1,303
|
|
|
2,172
|
|
|
Recourse debt
|
|
|
|
—
|
|
|
—
|
|
|
Current liabilities of discontinued operations and held-for-sale
businesses
|
|
|
|
—
|
|
|
661
|
|
|
Total current liabilities
|
|
|
|
5,272
|
|
|
6,926
|
|
|
NONCURRENT LIABILITIES
|
|
|
|
|
|
|
|
Non-recourse debt, including $1,502 and $1,531, respectively,
related to variable interest entities
|
|
|
|
14,489
|
|
|
12,943
|
|
|
Recourse debt
|
|
|
|
4,671
|
|
|
4,966
|
|
|
Deferred income taxes
|
|
|
|
804
|
|
|
1,090
|
|
|
Pension and other postretirement liabilities
|
|
|
|
1,396
|
|
|
919
|
|
|
Other noncurrent liabilities
|
|
|
|
3,005
|
|
|
2,794
|
|
|
Noncurrent liabilities of discontinued operations and held-for-sale
businesses
|
|
|
|
—
|
|
|
123
|
|
|
Total noncurrent liabilities
|
|
|
|
24,365
|
|
|
22,835
|
|
|
Redeemable stock of subsidiaries
|
|
|
|
782
|
|
|
538
|
|
|
EQUITY
|
|
|
|
|
|
|
|
THE AES CORPORATION STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Common stock ($0.01 par value, 1,200,000,000 shares authorized;
816,061,123 issued and 659,182,232 outstanding at December 31, 2016
and 815,846,621 issued and 666,808,790 outstanding at December 31,
2015)
|
|
|
|
8
|
|
|
8
|
|
|
Additional paid-in capital
|
|
|
|
8,592
|
|
|
8,718
|
|
|
Retained earnings (accumulated deficit)
|
|
|
|
(1,146
|
)
|
|
143
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(2,756
|
)
|
|
(3,883
|
)
|
|
Treasury stock, at cost (156,878,891 shares at December 31, 2016 and
149,037,831 shares at December 31, 2015)
|
|
|
|
(1,904
|
)
|
|
(1,837
|
)
|
|
Total AES Corporation stockholders’ equity
|
|
|
|
2,794
|
|
|
3,149
|
|
|
NONCONTROLLING INTERESTS
|
|
|
|
2,906
|
|
|
3,022
|
|
|
Total equity
|
|
|
|
5,700
|
|
|
6,171
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
|
$
|
36,119
|
|
|
$
|
36,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
OPERATING ACTIVITIES:
|
|
|
|
(in millions)
|
|
(in millions)
|
|
Net income (loss)
|
|
|
|
$
|
(693
|
)
|
|
$
|
41
|
|
|
$
|
(777
|
)
|
|
$
|
762
|
|
|
Adjustments to net income:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
299
|
|
|
264
|
|
|
1,176
|
|
|
1,144
|
|
|
Loss (gain) on sale of businesses
|
|
|
|
1
|
|
|
(5
|
)
|
|
(29
|
)
|
|
(29
|
)
|
|
Impairment expenses
|
|
|
|
623
|
|
|
326
|
|
|
1,098
|
|
|
602
|
|
|
Deferred income taxes
|
|
|
|
(318
|
)
|
|
(42
|
)
|
|
(793
|
)
|
|
(50
|
)
|
|
Provisions for (reversals of) contingencies
|
|
|
|
20
|
|
|
19
|
|
|
48
|
|
|
(72
|
)
|
|
Loss on extinguishment of debt
|
|
|
|
8
|
|
|
21
|
|
|
20
|
|
|
186
|
|
|
Loss (Gain) on sale and disposal of assets
|
|
|
|
12
|
|
|
(3
|
)
|
|
38
|
|
|
20
|
|
|
Impairments of discontinued operations and held-for-sale businesses
|
|
|
|
600
|
|
|
—
|
|
|
1,383
|
|
|
—
|
|
|
Other
|
|
|
|
62
|
|
|
(42
|
)
|
|
168
|
|
|
8
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable
|
|
|
|
(98
|
)
|
|
(64
|
)
|
|
237
|
|
|
(378
|
)
|
|
(Increase) decrease in inventory
|
|
|
|
6
|
|
|
(15
|
)
|
|
42
|
|
|
(26
|
)
|
|
(Increase) decrease in prepaid expenses and other current assets
|
|
|
|
200
|
|
|
278
|
|
|
870
|
|
|
655
|
|
|
(Increase) decrease in other assets
|
|
|
|
(14
|
)
|
|
(202
|
)
|
|
(251
|
)
|
|
(1,305
|
)
|
|
Increase (decrease) in accounts payable and other current liabilities
|
|
|
|
(53
|
)
|
|
(207
|
)
|
|
(620
|
)
|
|
31
|
|
|
Increase (decrease) in income tax payables, net and other tax
payables
|
|
|
|
71
|
|
|
179
|
|
|
(199
|
)
|
|
53
|
|
|
Increase (decrease) in other liabilities
|
|
|
|
(24
|
)
|
|
81
|
|
|
473
|
|
|
533
|
|
|
Net cash provided by operating activities
|
|
|
|
702
|
|
|
629
|
|
|
2,884
|
|
|
2,134
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(575
|
)
|
|
(621
|
)
|
|
(2,345
|
)
|
|
(2,308
|
)
|
|
Acquisitions, net of cash acquired
|
|
|
|
6
|
|
|
—
|
|
|
(55
|
)
|
|
(17
|
)
|
|
Proceeds from the sale of businesses, net of cash sold, and equity
method investments
|
|
|
|
474
|
|
|
42
|
|
|
631
|
|
|
138
|
|
|
Sale of short-term investments
|
|
|
|
1,157
|
|
|
1,168
|
|
|
4,904
|
|
|
4,851
|
|
|
Purchase of short-term investments
|
|
|
|
(1,354
|
)
|
|
(1,196
|
)
|
|
(5,151
|
)
|
|
(4,801
|
)
|
|
(Increase) decrease in restricted cash, debt service reserves and
other assets
|
|
|
|
62
|
|
|
(99
|
)
|
|
(61
|
)
|
|
(159
|
)
|
|
Other investing
|
|
|
|
(9
|
)
|
|
(21
|
)
|
|
(31
|
)
|
|
(70
|
)
|
|
Net cash used in investing activities
|
|
|
|
(239
|
)
|
|
(727
|
)
|
|
(2,108
|
)
|
|
(2,366
|
)
|
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings under the revolving credit facilities
|
|
|
|
386
|
|
|
282
|
|
|
1,465
|
|
|
959
|
|
|
Repayments under the revolving credit facilities
|
|
|
|
(1,933
|
)
|
|
(1,512
|
)
|
|
(1,433
|
)
|
|
(937
|
)
|
|
Issuance of recourse debt
|
|
|
|
(1,618
|
)
|
|
(2,706
|
)
|
|
500
|
|
|
575
|
|
|
Repayments of recourse debt
|
|
|
|
48
|
|
|
(271
|
)
|
|
(808
|
)
|
|
(915
|
)
|
|
Issuance of non-recourse debt
|
|
|
|
3,786
|
|
|
5,163
|
|
|
2,978
|
|
|
4,248
|
|
|
Repayments of non-recourse debt
|
|
|
|
(946
|
)
|
|
(844
|
)
|
|
(2,666
|
)
|
|
(3,312
|
)
|
|
Payments for financing fees
|
|
|
|
(19
|
)
|
|
(25
|
)
|
|
(105
|
)
|
|
(90
|
)
|
|
Distributions to noncontrolling interests
|
|
|
|
(120
|
)
|
|
(144
|
)
|
|
(476
|
)
|
|
(326
|
)
|
|
Contributions from noncontrolling interests and redeemable security
holders
|
|
|
|
36
|
|
|
9
|
|
|
190
|
|
|
126
|
|
|
Proceeds from the sale of redeemable stock of subsidiaries
|
|
|
|
—
|
|
|
—
|
|
|
134
|
|
|
461
|
|
|
Dividends paid on AES common stock
|
|
|
|
(72
|
)
|
|
(67
|
)
|
|
(290
|
)
|
|
(276
|
)
|
|
Payments for financed capital expenditures
|
|
|
|
(5
|
)
|
|
(40
|
)
|
|
(113
|
)
|
|
(150
|
)
|
|
Purchase of treasury stock
|
|
|
|
—
|
|
|
(74
|
)
|
|
(79
|
)
|
|
(482
|
)
|
|
Proceeds from sales to noncontrolling interests, net of transaction
costs
|
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
154
|
|
|
Other financing
|
|
|
|
(32
|
)
|
|
17
|
|
|
(44
|
)
|
|
(7
|
)
|
|
Net cash used in financing activities
|
|
|
|
(489
|
)
|
|
(58
|
)
|
|
(747
|
)
|
|
28
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
2
|
|
|
(12
|
)
|
|
9
|
|
|
(52
|
)
|
|
Decrease (Increase) in cash of discontinued operations and
held-for-sale businesses
|
|
|
|
4
|
|
|
(11
|
)
|
|
10
|
|
|
(4
|
)
|
|
Total Increase (decrease) in cash and cash equivalents
|
|
|
|
(20
|
)
|
|
(179
|
)
|
|
48
|
|
|
(260
|
)
|
|
Cash and cash equivalents, beginning
|
|
|
|
1,325
|
|
|
1,436
|
|
|
1,257
|
|
|
1,517
|
|
|
Cash and cash equivalents, ending
|
|
|
|
$
|
1,305
|
|
|
$
|
1,257
|
|
|
$
|
1,305
|
|
|
$
|
1,257
|
|
|
SUPPLEMENTAL DISCLOSURES:
|
|
|
|
|
|
|
|
|
|
|
|
Cash payments for interest, net of amounts capitalized
|
|
|
|
$
|
436
|
|
|
$
|
390
|
|
|
$
|
1,273
|
|
|
$
|
1,265
|
|
|
Cash payments for income taxes, net of refunds
|
|
|
|
$
|
62
|
|
|
$
|
69
|
|
|
$
|
487
|
|
|
$
|
388
|
|
|
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Assets acquired through capital lease and other liabilities
|
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
18
|
|
|
Dividends declared but not yet paid
|
|
|
|
$
|
174
|
|
|
$
|
135
|
|
|
$
|
174
|
|
|
$
|
135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
AES is a holding company that derives its income and cash flows from the
activities of its subsidiaries, some of which may not be wholly-owned by
the Company. Accordingly, the Company has presented certain financial
metrics which are defined as Proportional (a non-GAAP financial
measure). Proportional metrics present the Company's estimate of its
share in the economics of the underlying metric. The Company believes
that the proportional metrics are useful to investors because they
exclude the economic share in the metric presented that is held by
non-AES shareholders.
Proportional metrics are reconciled to the nearest GAAP measure. Certain
assumptions have been made to estimate our proportional financial
measures. These assumptions include: (i) the Company's economic interest
has been calculated based on a blended rate for each consolidated
business when such business represents multiple legal entities; (ii) the
Company's economic interest may differ from the percentage implied by
the recorded net income or loss attributable to noncontrolling interests
or dividends paid during a given period; (iii) the Company's economic
interest for entities accounted for using the hypothetical liquidation
at book value method is 100%; (iv) individual operating performance of
the Company's equity method investments is not reflected and (v)
inter-segment transactions are included as applicable for the metric
presented.
The Company's non-GAAP metrics are Proportional Free Cash Flow, Adjusted
pre-tax contribution (“adjusted PTC”) and Adjusted earnings per share
(“adjusted EPS”) used by management and external users of our
consolidated financial statements such as investors, industry analysts
and lenders.
Proportional Free Cash Flow is defined as cash flows from operating
activities (adjusted for service concession asset capital expenditures),
less maintenance capital expenditures (including non-recoverable
environmental capital costs and net of reinsurance proceeds) adjusted
for the estimated impact of noncontrolling interests. Proportional Free
Cash Flow in each SBU includes the effect of intercompany transactions
with other SBUs except for interest, tax sharing, charges for management
fees and transfer pricing. The proportionate share of cash flows and
related adjustments attributable to noncontrolling interest in our
subsidiaries comprise the proportional adjustment factor presented in
the reconciliation below.
The GAAP measure most comparable to Proportional Free Cash Flow is Net
Cash Flows Provided By Operating Activities. We believe that
Proportional Free Cash Flow better reflects the underlying business
performance of the Company, as it measures the cash generated by the
business after the funding of maintenance capital expenditures that may
be available for investing in growth opportunities or repaying debt.
Factors in this determination include the impact of noncontrolling
interest, where AES consolidates the results of a subsidiary that is not
wholly-owned by the Company.
|
|
|
THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
(in millions)
|
|
Calculation of Maintenance Capital Expenditures for Free Cash
Flow (1) Reconciliation Below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance Capital Expenditures
|
|
|
|
$
|
160
|
|
|
$
|
195
|
|
|
$
|
624
|
|
|
$
|
612
|
|
|
Environmental Capital Expenditures
|
|
|
|
33
|
|
|
129
|
|
|
231
|
|
|
322
|
|
|
Growth Capital Expenditures
|
|
|
|
387
|
|
|
337
|
|
|
1,603
|
|
|
1,524
|
|
|
Total Capital Expenditures
|
|
|
|
$
|
580
|
|
|
$
|
661
|
|
|
$
|
2,458
|
|
|
$
|
2,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Proportional Adjusted Operating Cash Flow(2)
|
|
|
|
|
|
|
|
Consolidated Operating Cash Flow
|
|
|
|
$
|
702
|
|
|
$
|
629
|
|
|
$
|
2,884
|
|
|
$
|
2,134
|
|
|
Add: Capital Expenditures Related to Service Concession Assets (3)
|
|
|
|
2
|
|
|
17
|
|
|
29
|
|
|
165
|
|
|
Less: Proportional Adjustment Factor (2),5)
|
|
|
|
(245
|
)
|
|
(197
|
)
|
|
(1,032
|
)
|
|
(558
|
)
|
|
Proportional Adjusted Operating Cash Flow (2) (5)
|
|
|
|
$
|
459
|
|
|
$
|
449
|
|
|
$
|
1,881
|
|
|
$
|
1,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow(1)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Cash Flow
|
|
|
|
$
|
702
|
|
|
$
|
629
|
|
|
$
|
2,884
|
|
|
$
|
2,134
|
|
|
Add: Capital Expenditures Related to Service Concession Assets (3)
|
|
|
|
2
|
|
|
17
|
|
|
29
|
|
|
165
|
|
|
Less: Maintenance Capital Expenditures, net of reinsurance proceeds
|
|
|
|
(160
|
)
|
|
(195
|
)
|
|
(624
|
)
|
|
(612
|
)
|
|
Less: Non-recoverable Environmental Capital Expenditures
|
|
|
|
(9
|
)
|
|
(17
|
)
|
|
(45
|
)
|
|
(60
|
)
|
|
Free Cash Flow(1)
|
|
|
|
$
|
535
|
|
|
$
|
434
|
|
|
$
|
2,244
|
|
|
$
|
1,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Proportional Free Cash Flow(1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
Proportional Operating Cash Flow (2)
|
|
|
|
$
|
458
|
|
|
$
|
441
|
|
|
$
|
1,866
|
|
|
$
|
1,657
|
|
|
Add: Proportional Capital Expenditures Related to Service Concession
Assets (3)
|
|
|
|
1
|
|
|
8
|
|
|
15
|
|
|
84
|
|
|
Proportional Adjusted Operating Cash Flow (2) (5)
|
|
|
|
459
|
|
|
449
|
|
|
1,881
|
|
|
1,741
|
|
|
Less: Proportional Maintenance Capital Expenditures, net of
reinsurance proceeds (2)
|
|
|
|
(103
|
)
|
|
(140
|
)
|
|
(425
|
)
|
|
(449
|
)
|
|
Less: Proportional Non-Recoverable Environmental Capital
Expenditures (2) (4)
|
|
|
|
(9
|
)
|
|
(16
|
)
|
|
(39
|
)
|
|
(51
|
)
|
|
Proportional Free Cash Flow(1) (2)
|
|
|
|
$
|
347
|
|
|
$
|
293
|
|
|
$
|
1,417
|
|
|
$
|
1,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Free cash flow (a non-GAAP financial measure) is proportional free
cash flow as defined above but inclusive of noncontrolling interest
impacts.
|
|
(2)
|
|
The proportional adjustment factor, proportional maintenance capital
expenditures (net of reinsurance proceeds) and proportional
non-recoverable environmental capital expenditures are calculated by
multiplying the percentage owned by noncontrolling interests for
each entity by its corresponding consolidated cash flow metric and
are totaled to the resulting figures. For example, Parent Company A
owns 80% of Subsidiary Company B, a consolidated subsidiary. Thus,
Subsidiary Company B has a 20% noncontrolling interest. Assuming a
consolidated net cash flow from operating activities of $100 from
Subsidiary B, the proportional adjustment factor for Subsidiary B
would equal ($20), or $100 x (20%). The Company calculates the
proportional adjustment factor for each consolidated business in
this manner and then sums these amounts to determine the total
proportional adjustment factor used in the reconciliation. The
proportional adjustment factor may differ from the proportion of
income attributable to noncontrolling interests as a result of (a)
non-cash items which impact income but not cash and (b) AES'
ownership interest in the subsidiary where such items occur.
|
|
(3)
|
|
Service concession asset expenditures are excluded from free cash
flow and proportional free cash flow non-GAAP metric due to the
adoption of service concession accounting effective January 1, 2015.
|
|
(4)
|
|
Excludes IPALCO’s proportional recoverable environmental capital
expenditures of $16 million and $84 million for the three months
ended December 31, 2016 and 2015, as well as, $132 million and $205
million for the twelve months ended December 31, 2016 and 2015,
respectively.
|
|
(5)
|
|
Includes proportional adjustment amount for service concession asset
expenditures of $1 million and $8 million for the three months ended
December 31, 2016 and 2015, as well as, $15 million and $84 million
for the twelve months ended December 31, 2016 and December 31, 2015,
respectively. The Company adopted service concession accounting
effective January 1, 2015.
|
|
|
|
|
THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED PRE-TAX CONTRIBUTION (PTC) AND ADJUSTED EPS
Adjusted PTC is defined as pre-tax income from continuing operations
attributable to AES excluding gains or losses of the consolidated entity
due to (a) unrealized gains or losses related to derivative
transactions, (b) unrealized foreign currency gains or losses, (c) gains
or losses due to dispositions and acquisitions of business interests,
(d) losses due to impairments, and (e) costs due to the early retirement
of debt. Adjusted PTC also includes net equity in earnings of affiliates
on an after-tax basis adjusted for the same gains or losses excluded
from consolidated entities.
Adjusted EPS is defined as diluted earnings per share from continuing
operations excluding gains or losses of both consolidated entities and
entities accounted for under the equity method due to (a) unrealized
gains or losses related to derivative transactions, (b) unrealized
foreign currency gains or losses, (c) gains or losses due to
dispositions and acquisitions of business interests, (d) losses due to
impairments, and (e) costs due to the early retirement of debt.
The GAAP measure most comparable to adjusted PTC is income from
continuing operations attributable to AES. The GAAP measure most
comparable to adjusted EPS is diluted earnings per share from continuing
operations. We believe that adjusted PTC and adjusted EPS better reflect
the underlying business performance of the Company and are considered in
the Company’s internal evaluation of financial performance. Factors in
this determination include the variability due to unrealized gains or
losses related to derivative transactions, unrealized foreign currency
gains or losses, losses due to impairments and strategic decisions to
dispose of or acquire business interests or retire debt, which affect
results in a given period or periods. In addition, for adjusted PTC,
earnings before tax represents the business performance of the Company
before the application of statutory income tax rates and tax
adjustments, including the effects of tax planning, corresponding to the
various jurisdictions in which the Company operates. Adjusted PTC and
adjusted EPS should not be construed as alternatives to income from
continuing operations attributable to AES and diluted earnings per share
from continuing operations, which are determined in accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2016
|
|
Three Months Ended December 31, 2015
|
|
Twelve Months Ended December 31, 2016
|
|
Twelve Months Ended December 31, 2015
|
|
|
|
|
|
|
Net of NCI(1)
|
|
Per Share (Diluted) Net of NCI(1)
|
|
Net of NCI(1)
|
|
Per Share(Diluted) Net of NCI(1)
|
|
Net of NCI(1)
|
|
Per Share (Diluted) Net of NCI(1)
|
|
Net of NCI(1)
|
|
Per Share (Diluted) Net of NCI(1)
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to AES and
Diluted EPS
|
|
|
|
$
|
(200
|
)
|
|
$
|
(0.30
|
)
|
|
$
|
(72
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
8
|
|
|
$
|
—
|
|
(2)
|
$
|
331
|
|
|
$
|
0.48
|
|
|
|
Add: Income Tax Expense (Benefit) from Continuing Operations
Attributable to AES
|
|
|
|
(214
|
)
|
|
|
|
162
|
|
|
|
|
(148
|
)
|
|
|
|
275
|
|
|
|
|
|
Pre-Tax contribution
|
|
|
|
$
|
(414
|
)
|
|
|
|
$
|
90
|
|
|
|
|
$
|
(140
|
)
|
|
|
|
$
|
606
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized Derivative (Gains)/ Losses
|
|
|
|
$
|
(10
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(138
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(9
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(166
|
)
|
|
$
|
(0.24
|
)
|
|
|
Unrealized Foreign Currency Transaction Losses
|
|
|
|
9
|
|
|
0.01
|
|
|
50
|
|
|
0.07
|
|
|
23
|
|
|
0.04
|
|
|
96
|
|
|
0.14
|
|
|
|
Disposition/Acquisition (Gains) / Losses
|
|
|
|
12
|
|
|
0.02
|
|
(3)
|
(10
|
)
|
|
(0.01
|
)
|
|
6
|
|
|
0.01
|
|
(4)
|
(42
|
)
|
|
(0.06
|
)
|
(5)
|
|
Impairment Losses
|
|
|
|
624
|
|
|
0.95
|
|
(6)
|
328
|
|
|
0.49
|
|
(7)
|
933
|
|
|
1.41
|
|
(8)
|
504
|
|
|
0.73
|
|
(9)
|
|
Loss on Extinguishment of Debt
|
|
|
|
3
|
|
|
—
|
|
|
20
|
|
|
0.03
|
|
(10)
|
29
|
|
|
0.05
|
|
(11)
|
179
|
|
|
0.26
|
|
(12)
|
|
Less: Net Income Tax (Benefit) Expense
|
|
|
|
|
|
(0.31
|
)
|
(13)
|
|
|
0.09
|
|
(14)
|
|
|
(0.51
|
)
|
(15)
|
|
|
(0.06
|
)
|
(16)
|
|
Adjusted pre-tax contribution and Adjusted EPS
|
|
|
|
$
|
224
|
|
|
$
|
0.35
|
|
|
$
|
340
|
|
|
$
|
0.36
|
|
|
$
|
842
|
|
|
$
|
0.98
|
|
|
$
|
1,177
|
|
|
$
|
1.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________
|
(1)
|
|
NCI is defined as Noncontrolling Interests.
|
|
(2)
|
|
Diluted EPS calculation includes income from continuing operations,
net of tax, of $8 million less the $5 million adjustment to retained
earnings to record the DP&L redeemable preferred stock at its
redemption value as of December 31, 2016.
|
|
(3)
|
|
Amount primarily relates to the losses associated with the sale of
SUL of $10 million, or $0.02 per share.
|
|
(4)
|
|
Amount primarily relates to the loss on deconsolidation of UK Wind
of $20 million, or $0.03 per share and losses associated with the
sale of Sul of $10 million, or $0.02; partially offset by the gain
on sale of DPLER of $22 million, or $0.03 per share.
|
|
(5)
|
|
Amount primarily relates to the gains on the sale of Armenia
Mountain of $22 million, or $0.03 per share and from the sale of
Solar Spain and Solar Italy of $7 million, or $0.01 per share.
|
|
(6)
|
|
Amount primarily relates to asset impairments at DPL of $624
million, or $0.94 per share.
|
|
(7)
|
|
Amount primarily relates to asset impairments at DPL of $317
million, or $0.47 per share.
|
|
(8)
|
|
Amount primarily relates to asset impairments at DPL of $859
million, or $1.30 per share; $159 million at Buffalo Gap II ($49
million, or $0.07 per share, net of NCI); and $77 million at Buffalo
Gap I ($23 million, or $0.03 per share, net of NCI).
|
|
(9)
|
|
Amount primarily relates to the goodwill impairment at DPL of $317
million, or $0.46 per share, and asset impairments at Kilroot of
$121 million ($119 million, or $0.17 per share, net of NCI), at
Buffalo Gap III of $116 million ($27 million, or $0.04 per share,
net of NCI), and at U.K. Wind (Development Projects) of $38 million
($30 million, or $0.04 per share, net of NCI).
|
|
(10)
|
|
Amount primarily relates to the loss on early retirement of debt at
Andres of $11 million ($10 million, or $0.01 per share, net of NCI).
|
|
(11)
|
|
Amount primarily relates to the loss on early retirement of debt at
the Parent Company of $19 million, or $0.03 per share.
|
|
(12)
|
|
Amount primarily relates to the loss on early retirement of debt at
the Parent Company of $116 million, or $0.17 per share and at IPL of
$22 million ($17 million, or $0.02 per share, net of NCI).
|
|
(13)
|
|
Amount primarily relates to the per share income tax benefit
associated with losses on impairment of $209 million, or $0.32 per
share in the three months ended December 31, 2016.
|
|
(14)
|
|
Amount primarily relates to the per share income tax benefit
associated with unrealized derivatives of $49 million, or $0.07 per
share in the three months ended December 31, 2015.
|
|
(15)
|
|
Amount primarily relates to the per share income tax benefit
associated with asset impairment of $332 million, or $0.50 per share
in the twelve months ended December 31, 2016.
|
|
(16)
|
|
Amount primarily relates to the per share income tax benefit
associated with losses on extinguishment of debt of $55 million, or
$0.08 per share in the twelve months ended December 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
The AES Corporation
|
|
Parent Financial Information
|
|
Parent only data: last four quarters
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
4 Quarters Ended
|
|
Total subsidiary distributions & returns
of capital to Parent
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
|
|
|
Actual
|
|
Actual
|
|
Actual
|
|
Actual
|
|
Subsidiary distributions(1) to Parent & QHCs
|
|
|
$
|
1,112
|
|
$
|
1,242
|
|
$
|
1,070
|
|
$
|
968
|
|
Returns of capital distributions to Parent & QHCs
|
|
|
46
|
|
34
|
|
30
|
|
24
|
|
Total subsidiary distributions & returns of capital to Parent
|
|
|
$
|
1,158
|
|
$
|
1,276
|
|
$
|
1,100
|
|
$
|
992
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent only data: quarterly
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
Quarter Ended
|
|
Total subsidiary distributions & returns
of capital to Parent
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
|
|
|
Actual
|
|
Actual
|
|
Actual
|
|
Actual
|
|
Subsidiary distributions to Parent & QHCs
|
|
|
$
|
426
|
|
$
|
265
|
|
$
|
337
|
|
$
|
85
|
|
Returns of capital distributions to Parent & QHCs
|
|
|
12
|
|
4
|
|
14
|
|
16
|
|
Total subsidiary distributions & returns of capital to Parent
|
|
|
$
|
438
|
|
$
|
269
|
|
$
|
351
|
|
$
|
101
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company Liquidity (2)
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
Balance at
|
|
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
|
|
|
|
Actual
|
|
Actual
|
|
Actual
|
|
Actual
|
|
Cash at Parent & Cash at QHCs (3)
|
|
|
$
|
100
|
|
$
|
42
|
|
$
|
30
|
|
$
|
17
|
|
Availability under credit facilities
|
|
|
794
|
|
519
|
|
733
|
|
658
|
|
Ending liquidity
|
|
|
$
|
894
|
|
$
|
561
|
|
$
|
763
|
|
$
|
675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Subsidiary distributions should not be construed as an alternative
to Net Cash Provided by Operating Activities which are determined in
accordance with GAAP. Subsidiary distributions are important to the
Parent Company because the Parent Company is a holding company that
does not derive any significant direct revenues from its own
activities but instead relies on its subsidiaries’ business
activities and the resultant distributions to fund the debt service,
investment and other cash needs of the holding company. The
reconciliation of the difference between the subsidiary
distributions and the Net Cash Provided by Operating Activities
consists of cash generated from operating activities that is
retained at the subsidiaries for a variety of reasons which are both
discretionary and non-discretionary in nature. These factors
include, but are not limited to, retention of cash to fund capital
expenditures at the subsidiary, cash retention associated with
non-recourse debt covenant restrictions and related debt service
requirements at the subsidiaries, retention of cash related to
sufficiency of local GAAP statutory retained earnings at the
subsidiaries, retention of cash for working capital needs at the
subsidiaries, and other similar timing differences between when the
cash is generated at the subsidiaries and when it reaches the Parent
Company and related holding companies.
|
|
(2)
|
|
Parent Company Liquidity is defined as cash at the Parent Company
plus availability under corporate credit facilities plus cash at
qualified holding companies (QHCs). AES believes that unconsolidated
Parent Company liquidity is important to the liquidity position of
AES as a Parent Company because of the non-recourse nature of most
of AES’s indebtedness.
|
|
(3)
|
|
The cash held at QHCs represents cash sent to subsidiaries of the
company domiciled outside of the US. Such subsidiaries had no
contractual restrictions on their ability to send cash to AES, the
Parent Company. Cash at those subsidiaries was used for investment
and related activities outside of the US. These investments included
equity investments and loans to other foreign subsidiaries as well
as development and general costs and expenses incurred outside the
US. Since the cash held by these QHCs is available to the Parent,
AES uses the combined measure of subsidiary distributions to Parent
and QHCs as a useful measure of cash available to the Parent to meet
its international liquidity needs.
|
|
|
|
|
THE AES CORPORATION
2016 FINANCIAL GUIDANCE ELEMENTS(1),
(2)
|
|
|
|
|
2016 Financial Guidance
|
|
|
|
|
|
As of 11/4/16
|
|
|
|
|
|
Consolidated
|
Proportional
|
|
Income Statement Guidance
|
|
|
|
|
|
|
Adjusted Earnings Per Share (3)
|
|
|
|
$0.95-$1.05
|
|
|
Cash Flow Guidance
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
|
|
|
|
$2,000-$2,900 million
|
|
|
Free Cash Flow (4)
|
|
|
|
|
$1,000-$1,350 million
|
|
Reconciliation of Free Cash Flow Guidance
|
|
|
|
|
|
|
Net Cash from Operating Activities
|
|
|
|
$2,000-$2,900 million
|
$1,500-$1,850 million
|
|
Less: Maintenance Capital Expenditures
|
|
|
|
$600-$800 million
|
$400-$600 million
|
|
Free Cash Flow (4)
|
|
|
|
$1,300-$2,200 million
|
$1,000-$1,350 million
|
|
|
|
|
|
|
|
|
(1)
|
|
2016 Guidance is based on expectations for future foreign exchange
rates and commodity prices as of September 30, 2016.
|
|
(2)
|
|
AES is a holding company that derives its income and cash flows from
the activities of its subsidiaries, some of which may not be
wholly-owned by the Company. Accordingly, the Company has presented
certain financial metrics which are defined as Proportional (a
non-GAAP financial measure). Proportional metrics present the
Company's estimate of its share in the economics of the underlying
metric. The Company believes that the Proportional metrics are
useful to investors because they exclude the economic share in the
metric presented that is held by non-AES shareholders. For example,
Net Cash Provided by Operating Activities (Operating Cash Flow) is a
GAAP metric which presents the Company's cash flow from operations
on a consolidated basis, including operating cash flow allocable to
noncontrolling interests. Proportional Operating Cash Flow removes
the share of operating cash flow allocable to noncontrolling
interests and therefore may act as an aid in the valuation of the
Company. Beginning in Q1 2015, the definition was revised to also
exclude cash flows related to service concession assets.
Proportional metrics are reconciled to the nearest GAAP measure.
Certain assumptions have been made to estimate our proportional
financial measures. These assumptions include: (i) the Company's
economic interest has been calculated based on a blended rate for
each consolidated business when such business represents multiple
legal entities; (ii) the Company's economic interest may differ from
the percentage implied by the recorded net income or loss
attributable to noncontrolling interests or dividends paid during a
given period; (iii) the Company's economic interest for entities
accounted for using the hypothetical liquidation at book value
method is 100%; (iv) individual operating performance of the
Company's equity method investments is not reflected and (v)
inter-segment transactions are included as applicable for the metric
presented.
|
|
(3)
|
|
Adjusted Earnings Per Share (a non-GAAP financial measure) is
defined as diluted earnings per share from continuing operations
excluding gains or losses of both consolidated entities and entities
accounted for under the equity method due to (a) unrealized gains or
losses related to derivative transactions, (b) unrealized foreign
currency gains or losses, (c) gains or losses due to dispositions
and acquisitions of business interests, d) losses due to
impairments, and (e) costs due to the early retirement of debt. The
GAAP measure most comparable to Adjusted EPS is diluted earnings per
share from continuing operations. AES believes that adjusted
earnings per share better reflects the underlying business
performance of the Company, and is considered in the Company's
internal evaluation of financial performance. Factors in this
determination include the variability due to unrealized gains or
losses related to derivative transactions, unrealized foreign
currency gains or losses, losses due to impairments and strategic
decisions to dispose or acquire business interests or retire debt,
which affect results in a given period or periods. Adjusted earnings
per share should not be construed as an alternative to diluted
earnings per share from continuing operations, which is determined
in accordance with GAAP.
|
|
(4)
|
|
Free Cash Flow is reconciled above. Free Cash Flow (a non-GAAP
financial measure) is defined as net cash from operating activities
(adjusted for service concession asset capital expenditures) less
maintenance capital expenditures (including non-recoverable
environmental capital expenditures), net of reinsurance proceeds
from third parties. AES believes that free cash flow is a useful
measure for evaluating our financial condition because it represents
the amount of cash generated by the business after the funding of
maintenance capital expenditures that may be available for investing
in growth opportunities or for repaying debt. Free cash flow should
not be construed as an alternative to net cash from operating
activities, which is determined in accordance with GAAP.
|
|
|
|
|
THE AES CORPORATION
2017 FINANCIAL GUIDANCE ELEMENTS(1),
(2)
|
|
|
|
|
2017 Financial Guidance
|
|
|
|
|
|
As of 2/27/17
|
|
Income Statement Guidance
|
|
|
|
|
|
Adjusted Earnings Per Share (3)
|
|
|
|
$1.00-$1.10
|
|
Cash Flow Guidance
|
|
|
|
|
|
Consolidated Net Cash Provided by Operating Activities
|
|
|
|
$2,000-$2,800 million
|
|
Consolidated Free Cash Flow (4)
|
|
|
|
$1,400-$2,000 million
|
|
Reconciliation of Free Cash Flow Guidance
|
|
|
|
|
|
Consolidated Net Cash from Operating Activities
|
|
|
|
$2,000-$2,800 million
|
|
Less: Maintenance Capital Expenditures
|
|
|
|
$600-$800 million
|
|
Consolidated Free Cash Flow (4)
|
|
|
|
$1,400-$2,000 million
|
|
|
|
|
|
|
|
(1)
|
|
2017 Guidance is based on expectations for future foreign exchange
rates and commodity prices as of December 31, 2016.
|
|
(2)
|
|
AES is a holding company that derives its income and cash flows from
the activities of its subsidiaries, some of which may not be
wholly-owned by the Company. Accordingly, the Company has presented
certain financial metrics which are defined as Proportional (a
non-GAAP financial measure). Proportional metrics present the
Company's estimate of its share in the economics of the underlying
metric. The Company believes that the Proportional metrics are
useful to investors because they exclude the economic share in the
metric presented that is held by non-AES shareholders. For example,
Net Cash Provided by Operating Activities (Operating Cash Flow) is a
GAAP metric which presents the Company's cash flow from operations
on a consolidated basis, including operating cash flow allocable to
noncontrolling interests. Proportional Operating Cash Flow removes
the share of operating cash flow allocable to noncontrolling
interests and therefore may act as an aid in the valuation of the
Company. Beginning in Q1 2015, the definition was revised to also
exclude cash flows related to service concession assets.
Proportional metrics are reconciled to the nearest GAAP measure.
Certain assumptions have been made to estimate our proportional
financial measures. These assumptions include: (i) the Company's
economic interest has been calculated based on a blended rate for
each consolidated business when such business represents multiple
legal entities; (ii) the Company's economic interest may differ from
the percentage implied by the recorded net income or loss
attributable to noncontrolling interests or dividends paid during a
given period; (iii) the Company's economic interest for entities
accounted for using the hypothetical liquidation at book value
method is 100%; (iv) individual operating performance of the
Company's equity method investments is not reflected and (v)
inter-segment transactions are included as applicable for the metric
presented.
|
|
(3)
|
|
Adjusted Earnings Per Share (a non-GAAP financial measure) is
defined as diluted earnings per share from continuing operations
excluding gains or losses of both consolidated entities and entities
accounted for under the equity method due to (a) unrealized gains or
losses related to derivative transactions, (b) unrealized foreign
currency gains or losses, (c) gains or losses due to dispositions
and acquisitions of business interests, d) losses due to
impairments, and (e) costs due to the early retirement of debt. The
GAAP measure most comparable to Adjusted EPS is diluted earnings per
share from continuing operations. AES believes that adjusted
earnings per share better reflects the underlying business
performance of the Company, and is considered in the Company's
internal evaluation of financial performance. Factors in this
determination include the variability due to unrealized gains or
losses related to derivative transactions, unrealized foreign
currency gains or losses, losses due to impairments and strategic
decisions to dispose or acquire business interests or retire debt,
which affect results in a given period or periods. Adjusted earnings
per share should not be construed as an alternative to diluted
earnings per share from continuing operations, which is determined
in accordance with GAAP.
|
|
(4)
|
|
Free Cash Flow is reconciled above. Free Cash Flow (a non-GAAP
financial measure) is defined as net cash from operating activities
(adjusted for service concession asset capital expenditures) less
maintenance capital expenditures (including non-recoverable
environmental capital expenditures), net of reinsurance proceeds
from third parties. AES believes that free cash flow is a useful
measure for evaluating our financial condition because it represents
the amount of cash generated by the business after the funding of
maintenance capital expenditures that may be available for investing
in growth opportunities or for repaying debt. Free cash flow should
not be construed as an alternative to net cash from operating
activities, which is determined in accordance with GAAP.
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170227005610/en/
Source: The AES Corporation