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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): February 20, 2003
THE AES CORPORATION
(exact name of registrant as specified in its charter)
DELAWARE 333-15487 54-1163725
(State of Incorporation) (Commission File No.) (IRS Employer
Identification No.)
1001 North 19th Street, Suite 2000
Arlington, Virginia 22209
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (703) 522-1315
NOT APPLICABLE
(Former Name or Former Address, if changed since last report)
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Item 5. Other Events
The AES Corporation (NYSE: AES) announced that net income from recurring
operations for 2002 was $421 million before certain charges. Diluted earnings
per share from recurring operations were $0.78 for the year. Net income (loss)
and diluted earnings (loss) per share for the year, after all charges, were
$(3.509) billion and $(6.51) per share, respectively. For the year, revenues
increased 13% to $8.6 billion.
For the quarter ended December 31, 2002, net income and diluted earnings
per share from recurring operations were $15 million and $0.03 per share,
respectively. Net income (loss) and diluted earnings (loss) per share for the
quarter, after all charges, were $(2.766) billion and $(5.08) per share,
respectively. Parent Operating Cash Flow ("POCF") for 2002 was $1.095 billion.
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED DECEMBER 31, 2002 AND 2001
--------------------------------------------------------------------------------------------------
Quarter Quarter
Ended Ended
($ in millions, except per share amounts) 12/31/02 12/31/01
--------------------------------------------------------------------------------------------------
REVENUES:
Sales and services $ 2,214 $ 1,926
OPERATING COSTS AND EXPENSES:
Cost of sales and services 2,000 1,287
Selling, general and administrative expenses 44 47
------------ ------------
Total operating costs and expenses 2,044 1,334
------------ ------------
OPERATING INCOME 170 592
OTHER INCOME AND (EXPENSE):
Interest expense, net (439) (368)
Other expense, net (48) (1)
Equity in (loss) earnings of affiliates (before income tax) (239) 50
(Loss) gain on sale of assets and asset impairment expense (1,928) 18
------------ ------------
(LOSS) INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST (2,484) 291
Income tax (benefit) expense (8) 66
Minority interest (income) expense (23) 38
------------ ------------
(LOSS) INCOME FROM CONTINUING
OPERATIONS (2,453) 187
Loss from operations of discontinued components
(net of income taxes of $136 and $6, respectively) (313) (143)
------------ ------------
NET (LOSS) INCOME $ (2,766) $ 44
============ ============
DILUTED EARNINGS PER SHARE:
(Loss) income from continuing operations $ (4.50) $ 0.35
Discontinued operations (0.58) (0.27)
------------ ------------
Total $ (5.08) $ 0.08
============ ============
Diluted weighted average
shares outstanding (in millions) 545 541
=== ===
THE AES CORPORATION --- Supplemental Schedule
Reconciliation of GAAP net (loss) income before discontinued operations to net
income excluding Brazil, Argentina and Venezuela foreign currency effects,
effects of FAS No. 133 and nonrecurring items.
FOR THE QUARTERS ENDED DECEMBER 31, 2002 AND 2001
---------------------------------------------------------------------------------------------------------------------------
($ in millions, except per share amounts)
---------------------------- ----------------------------
Quarter ended 12/31/2002 Quarter ended 12/31/2001
---------------------------- ----------------------------
Amount Amount
Amount per share Amount per share
----------- ----------- ----------- -----------
Net (loss) income before discontinued operations $ (2,453) $ (4.50) $ 187 $ 0.35
South America foreign currency transaction
losses (gains), net (1) 31 0.06 (48) (0.09)
Mark to market losses from FAS No. 133 (2) 48 0.09 7 0.01
Loss (gain) on sale of assets and asset
impairment expense (3) 2,389 4.38 (16) (0.03)
----------- ----------- ----------- -----------
Net income from recurring operations $ 15 $ 0.03 $ 130 $ 0.24
=========== =========== =========== ===========
Diluted weighted average shares
outstanding (in millions) 545 536
=== ===
(1) South America foreign currency transaction losses, net, consist of the
following in 2002: a gain of approximately $46 million after income tax, or
$0.08 per share, from Brazil; a loss of approximately $5 million after income
tax, or $0.01 per share, from Argentina; and a loss of approximately $72
million after income tax, or $0.13 per share, from Venezuela. For 2001, South
America foreign currency transaction gains consist of a gain of approximately
$48 million after income tax, or $0.09 per share, from Brazil.
(2) Mark to market losses from FAS No. 133 consist of the following in 2002: a
loss of approximately $17 million after income tax, or $0.03 per share, from
interest rate instruments, a loss of approximately $18 million after income
tax, or $0.04 per share, from foreign exchange rate instruments, and a loss of
$13 million after income tax, or $0.02 per share, from commodity contracts. For
2001, mark to market losses from FAS No. 133 consist of the following: a gain
of approximately $3 million after income tax, or $0.01 per share, from interest
rate instruments, a loss of approximately $8 million after income tax, or $0.02
per share, from foreign exchange rate instruments, and a loss of approximately
$2 million after income tax from commodity contracts.
(3) Loss on sale of assets and asset impairment expense consists of the
following in 2002: a loss of approximately $1.293 billion after income tax, or
$2.37 per share, from goodwill and other asset impairment charges in Brazil; a
loss of approximately $1.013 billion after income tax, or $1.86 per share, from
asset impairment charges in the United Kingdom; a loss of approximately $63
million after income tax, or $0.11 per share, from asset impairment charges in
the United States; and a loss of approximately $20 million after income tax, or
$0.04 per share, from other asset impairment charges. For 2001, amount consists
of a gain of $16 million after income tax, or $0.03 per share, related to a
gain recognized on the sale of CANTV shares.
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
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Year Ended Year Ended
($ in millions, except per share amounts) 12/31/02 12/31/01
--------------------------------------------------------------------------------------------------
REVENUES:
Sales and services $ 8,632 $ 7,645
OPERATING COSTS AND EXPENSES:
Cost of sales and services 6,713 5,468
Selling, general and administrative expenses 112 120
------------ ------------
Total operating costs and expenses 6,825 5,588
------------ ------------
OPERATING INCOME 1,807 2,057
OTHER INCOME AND (EXPENSE):
Interest expense, net (1,719) (1,386)
Other (expense) income, net (324) 21
Equity in (loss) earnings of affiliates (before income tax) (203) 176
(Loss) gain on sale of assets and asset impairment expense (2,212) 18
Nonrecurring severance and transaction costs - (131)
------------ ------------
(LOSS) INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST (2,651) 755
Income tax (benefit) expense (27) 206
Minority interest (income) expense (34) 103
------------ ------------
(LOSS) INCOME FROM CONTINUING
OPERATIONS (2,590) 446
Loss from operations of discontinued components
(net of income taxes of $90 and $10, respectively) (573) (173)
------------ ------------
(LOSS) INCOME BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE (3,163) 273
Cumulative effect of accounting change
(net of income taxes of $72) (346) -
------------ ------------
NET (LOSS) INCOME $ (3,509) $ 273
============ ============
DILUTED EARNINGS PER SHARE:
(Loss) income from continuing operations $ (4.81) $ 0.83
Discontinued operations (1.05) (0.32)
Cumulative effect of accounting change (0.65) -
------------ ------------
Total $ (6.51) $ 0.51
============ ============
Diluted weighted average
shares outstanding (in millions) 539 538
=== ===
THE AES CORPORATION --- Supplemental Schedule
Reconciliation of GAAP net (loss) income before discontinued operations and
accounting change to net income excluding Brazil, Argentina and Venezuela
foreign currency effects, effects of FAS No. 133 and nonrecurring items.
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
-------------------------------------------------------------------------------------------------------------------------
($ in millions, except per share amounts)
---------------------------- ----------------------------
Year ended 12/31/2002 Year ended 12/31/2001
---------------------------- ----------------------------
Amount Amount
Amount per share Amount per share
----------- ----------- ----------- -----------
Net (loss) income before discontinued operations
and accounting change $ (2,590) $ (4.81) $ 446 $ 0.83
South America foreign currency transaction
losses, net (1) 353 0.66 128 0.24
Mark to market (gains) losses from FAS No. 133 (2) (42) (0.08) 36 0.06
Loss (gain) on sale of assets and asset
impairment expense (3) 2,601 4.83 (16) (0.03)
Provision for regulatory decision in Brazil (4) 99 0.18 - -
Transaction and severance costs related to
IPALCO transaction - - 85 0.16
----------- ----------- ----------- -----------
Net income from recurring operations $ 421 $ 0.78 $ 679 $ 1.26
=========== =========== =========== ===========
Diluted weighted average shares
outstanding (in millions) 540 544
=== ===
(1) South America foreign currency transaction losses, net, consist of the
following in 2002: a loss of approximately $252 million after income tax, or
$0.47 per share, from Brazil; a loss of approximately $139 million after income
tax, or $0.26 per share, from Argentina; and a gain of approximately $38
million after income tax, or $0.07 per share, from Venezuela. For 2001, South
America foreign currency transaction losses, net, consist of the following: a
loss of approximately $140 million after income tax, or $0.26 per share, from
Brazil, and a gain of approximately $12 million after income tax, or $0.02 per
share, from Venezuela.
(2) Mark to market gains from FAS No. 133 consist of the following in 2002: a
loss of approximately $46 million after income tax, or $0.09 per share, from
interest rate instruments, a gain of approximately $20 million after income
tax, or $0.04 per share, from foreign exchange rate instruments, and a gain of
approximately $68 million after income tax, or $0.13 per share, from commodity
contracts. For 2001, mark to market losses from FAS No. 133 consist of the
following: a loss of approximately $63 million after income tax, or $0.11 per
share, from interest rate instruments, a gain of approximately $21 million
after income tax, or $0.04 per share, from foreign exchange rate instruments,
and a gain of approximately $6 million after income tax, or $0.01 per share,
from commodity contracts.
(3) Loss on sale of assets and asset impairment expense consists of the
following in 2002: a loss of approximately $1.293 billion after income tax, or
$2.40 per share, from goodwill and other asset impairment charges in Brazil; a
loss of approximately $1.013 billion after income tax, or $1.88 per share, from
asset impairment charges in the United Kingdom; a loss of approximately $171
million after income tax, or $0.32 per share, from asset impairment charges in
the United States; a loss of $54 million after income tax, or $0.10 per share,
resulting from impairment charges related to equity method investments in Latin
American telecommunications companies; a loss of $50 million after income tax,
or $0.09 per share, related to the loss recognized on the sale of CANTV shares;
and a loss of approximately $20 million after income tax, or $0.04 per share,
from other asset impairment charges. For 2001, amount consists of a gain of $16
million after income tax, or $0.03 per per share, related to a gain recognized
on the sale of CANTV shares.
(4) The Company has recorded the retroactive regulatory decision by the
Brazilian regulator depriving AES Sul of amounts the Company believes it was
entitled to receive as a reduction in revenue. Pro forma revenues for the year
ended December 31, 2002, are approximately $8.8 billion.
Business Segment Results
AES's business segments, which include Contract Generation, Large Utilities,
Competitive Supply and Growth Distribution generated combined income before
income taxes (EBT) of $1.169 billion for 2002 as compared to $1.574 billion for
2001. On a geographic basis, EBT for 2002 was generated 50% from North America,
14% from Europe and Africa, 13% from South America, 12% from Asia and 11% from
the Caribbean. Businesses that were sold or that were classified as
discontinued operations during 2002 are excluded from this discussion. This
discussion is based on recurring operations and excludes nonrecurring items,
South America foreign currency transaction gains and losses and FAS 133 mark to
market gains and losses.
Contract Generation
($ in millions) 2002 2001 Variance
---- ---- --------
Segment revenues $2,478 $2,417 $ 61
% of total revenues 28% 32% (4)%
Operating margin $1,050 $ 854 $ 196
% of segment revenues 42% 35% 7%
EBT $ 635 $ 532 $ 103
% of total EBT 54% 34% 20%
Contract Generation consists of our power plants located around the world that
have contractually limited their exposure to commodity price risks (primarily
electricity prices) for a period of at least five years and for 75% or more of
their expected output capacity.
For 2002, Contract Generation revenues were $2.478 billion and represented 28%
of total revenues for the year, an increase of $61 million over 2001. The most
significant contributions continued to be from North and South America, which
in aggregate comprised 63% of Contract Generation revenue for the year as
compared to 64% for 2001. Revenues were enhanced with the addition of recently
completed commercial contract generation businesses totaling 1,736 mw (added
subsequent to the fourth quarter of 2001), including Red Oak in New Jersey (832
mw natural gas) Meghnaghat in Bangladesh (450 mw natural gas) and Puerto Rico
(454 mw coal). Revenues also improved at Beaver Valley in Pennsylvania, Tiszai
in Hungary, Ebute in Nigeria, Haripur in Bangladesh and the Chigen plants in
China. These improvements were offset by declines at Uruguaiana and Tiete in
Brazil, the Gener plants in Chile, Mtkvari in the Republic of Georgia, Los Mina
in the Dominican Republic and Merida in Mexico.
The operating margin (as a percentage of sales) for our Contract Generation
segment showed significant improvement over 2001 at 42% for 2002 as compared to
35% for 2001. Stronger margins and margin percentages arose during the quarter
at many contract generation plants and in all geographic regions, with the most
significant improvements at the Gener plants in Chile, Uruguaiana in Brazil,
Ironwood and Red Oak in the U.S., Kilroot in Northern Ireland, Ebute in Nigeria
and the Chigen plants in China. These improvements were partially offset by
declines at Tiete in Brazil, Shady Point in Oklahoma, Thames in Connecticut and
Lal Pir/Pak Gen in Pakistan. Overall, Contract Generation operating margins
increased $196 million to $1.050 billion for 2002.
As a result, Contract Generation delivered $635 million of EBT (or 54% of the
total) for 2002, an increase of 19% over 2001 EBT of $532 million (34% of the
total). All geographic regions showed increases in EBT within the contract
generation segment except for South America and the Caribbean.
Competitive Supply
($ in millions) 2002 2001 Variance
---- ---- --------
Segment revenues $1,837 $1,973 $ (136)
% of total revenues 21% 26% (5)%
Operating margin $ 394 $ 484 $ (90)
% of segment revenues 21% 25% (4)%
EBT $ 129 $ 182 $ (53)
% of total EBT 11% 12% (1)%
Competitive Supply consists primarily of our power plants selling electricity
directly to wholesale customers in competitive markets and as a result the
profitability of such plants are generally more sensitive to fluctuations in
the market price of electricity, natural gas and coal, in particular.
For 2002, revenues for this segment were $1.837 billion and represented 21% of
total revenues for the year. The most significant contributions continued to be
from the competitive markets of the UK and the U.S. that in aggregate comprised
73% of Competitive Supply revenue for the year. Competitive market prices
declined year over year in Argentina due to the devaluation of the Peso in
January 2002 and prices were also lower in California and the UK compared to
2001 and as a result total revenue for the competitive supply segment decreased
7% from 2001. Certain plants showed offsetting revenue improvements including
Tiszapalkonya in Hungary, Ottana in Italy and Chivor in Colombia. Year on year
increases associated with new businesses in 2002 included Parana in Argentina
(845 mw gas) and Delano in California (50 mw gas).
The operating margin (as a percentage of sales) for our Competitive Supply
segment was 21% in 2002, a decrease from 25% in 2001. Margins and margin
percentages were lower in South America, North America and Europe and Africa
due primarily to lower market prices. The most significant declines were at
Drax in the UK, the New York plants, Placerita in California and Alicura in
Argentina. These declines were offset in part by improvements at Deepwater in
Texas, Delano in California, Panama and Altai in Kazakhstan. Overall, operating
margin for Competitive Supply declined 19% to $394 million for 2002.
As a result of lower competitive prices, primarily in the US and the UK,
Competitive Supply generated $129 million of EBT (or 11% of the total) for
2002, a decrease from 2001 EBT of $182 million.
Large Utilities
($ in millions) 2002 2001 Variance
---- ---- --------
Segment revenues $ 3,151 $ 1,642 $ 1,509
% of total revenues 36% 21% 15%
Operating margin $ 781 $ 615 $ 166
% of segment revenues 25% 37% (12)%
EBT $ 418 $ 774 $ (356)
% of total EBT 36% 49% (13)%
The Large Utilities segment is comprised of our four large integrated utilities
that serve nearly 11 million customers in North America, the Caribbean and
South America. Businesses include IPALCO in Indiana, EDC in Venezuela along
with CEMIG (an equity affiliate) and Eletropaulo in Brazil.
For 2002, revenues for this segment were $3.151 billion and represented 36% of
total revenues for the year. The significant increase in revenues of 92%
resulted from consolidating the results of Eletropaulo (serving Sao Paulo,
Brazil) beginning in February 2002 when AES acquired control of that business
with a 68% voting interest (increased from 49% prior to that date when
Eletropaulo was treated as an equity affiliate). The additional revenues from
Eletropaulo were offset in part by a 21% decrease in revenues at EDC due
primarily to the devaluation of the Bolivar during 2002 and a slight decline in
revenues at IPALCO.
The operating margin was $781 million for the year, an increase of 27% over
2001 due to the consolidation of Eletropaulo and an improvement in the
operating margin at IPALCO. These increases were offset by a decline in the
operating margin at EDC. As a percentage of sales the operating margin for
large utilities was 25%, down from 37% for
2001 because of the reductions in margin at EDC resulting in part from the
devaluation of the Bolivar as well as lower than average segment margins at
Eletropaulo.
Large Utilities generated $418 million of EBT (or 36% of the total) for 2002,
down from $774 million (or 49%) for 2001. The reduction in 2002 results
primarily from reduced contributions (after associated interest costs) from
Eletropaulo due to the slow recovery of electricity demand to pre-rationing
levels in Brazil and from EDC due to the devaluation of the Bolivar and the
deterioration in economic conditions in Venezuela.
Growth Distribution
($ in millions) 2002 2001 Variance
---- ---- --------
Segment revenues $ 1,326 $ 1,613 $ (287)
% of total revenues 15% 21% (6)%
Operating margin $ 150 $ 221 $ (71)
% of segment revenues 11% 14% (3)%
EBT $ (13) $ 86 $ (99)
% of total EBT (1)% 5% (6)%
Our Growth Distribution segment, serving over 5 million customers, consists of
electricity distribution companies that are generally located in developing
countries or regions where the demand for electricity is expected to grow at a
rate higher than in more developed regions.
For 2002, revenues were $1.326 billion, an 18% decline from 2001, and
represented 15% of total revenues for the year. The Caribbean represents the
most significant contributor with 42% of growth distribution revenues, while
South America represents 31% and Europe and Africa contributes the remaining
27%. The decrease in revenues is due primarily to significant reductions in
Argentina because of the devaluation of the Argentine peso, as well as
reductions at Sul in Brazil and at our distribution businesses in El Salvador.
These reductions were offset in part by increases at Kievoblenergo and
Rivnooblenergo in Ukraine as well as from Sonel in Cameroon.
The operating margin (as a percentage of sales) was $150 million or 11% of
revenues as compared with $221 million or 14% of revenues for 2001. Margins
improved at Sonel in Cameroon, Telasi in Georgia, Kievoblenergo and
Rivnooblenergo in the Ukraine and Ede Este in the Dominican Republic.
As a result, Growth Distribution had an EBT loss of $(13) for 2002, a decline
from EBT of $86 million in 2001.
THE AES CORPORATION --- Supplemental Data
--------------------2001-------------------- --------------------2002------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
------- ------- ------- ------- ---- ------- ------- ------- ------- ----
GEOGRAPHIC - % of Total
North America
Revenues (5) 26% 27% 32% 24% 27% 22% 22% 27% 24% 24%
Income before Taxes (1, 5) 41% 31% 57% 34% 40% 35% 38% 71% 75% 50%
Caribbean (2)
Revenues (5) 26% 25% 24% 21% 24% 18% 17% 17% 19% 18%
Income before Taxes (1, 5) 17% 29% 14% 30% 22% 12% 9% 7% 20% 11%
South America
Revenues (5) 21% 24% 21% 26% 23% 34% 38% 32% 30% 33%
Income before Taxes (1, 5) 34% 36% 22% 24% 30% 27% 26% 6% (31)% 13%
Europe/Africa
Revenues (5) 20% 17% 21% 24% 20% 21% 18% 19% 22% 20%
Income before Taxes (1, 5) 5% (1)% 1% 6% 3% 16% 14% 6% 17% 14%
Asia
Revenues (5) 7% 7% 2% 5% 6% 5% 5% 5% 5% 5%
Income before Taxes (1, 5) 3% 5% 6% 6% 5% 10% 13% 10% 19% 12%
SEGMENTS - % of Total
Contract Generation
Revenues (5) 31% 32% 32% 31% 32% 28% 27% 28% 30% 28%
Operating Margin (3, 5) 39% 36% 31% 49% 39% 39% 43% 41% 57% 44%
Income before Taxes (1, 5) 34% 21% 20% 64% 34% 46% 44% 54% 94% 54%
Competitive Supply
Revenues (5) 28% 24% 28% 24% 26% 21% 19% 21% 23% 21%
Operating Margin (3, 5) 28% 19% 27% 16% 22% 15% 16% 17% 19% 17%
Income before Taxes (1, 5) 17% 4% 23% 1% 12% 9% 14% 12% 10% 11%
Large Utilities
Revenues (5) 21% 23% 23% 19% 21% 34% 39% 37% 33% 36%
Operating Margin (3, 5) 28% 36% 32% 20% 29% 34% 33% 34% 30% 33%
Income before Taxes (1, 5) 49% 72% 57% 12% 49% 34% 37% 34% 36% 36%
Growth Distribution Businesses
Revenues (5) 20% 21% 17% 26% 21% 17% 15% 14% 14% 15%
Operating Margin (3, 5) 5% 9% 10% 15% 10% 12% 8% 8% (6)% 6%
Income before Taxes (1, 5) - 3% - 23% 5% 11% 5% - (40)% (1)%
FINANCIAL HIGHLIGHTS - $ in millions, except Total Assets in billions
Revenues (5) $2,035 $1,856 $1,828 $1,926 $7,645 $2,228 $2,240 $2,110 $2,214 $8,792
Gross Margin Percentage (5) 30% 25% 26% 33% 28% 31% 27% 28% 23% 27%
Income before Taxes (1, 5) $475 $417 $356 $326 $1,574 $387 $343 $256 $183 $1,169
Net Income Excluding
Extraordinary and Other Items (4) $222 $178 $149 $130 $679 $181 $139 $86 $15 $421
Total Assets (billions) $36 $36 $36 $37 $37 $40 $39 $37 $34 $34
Deprec./Amort. $180 $185 $197 $194 $756 $199 $201 $196 $201 $797
(1) Income before taxes excludes the Corporate and Business Development
segment. The following items are included in the Corporate and Business
Development segment: corporate interest, other corporate costs, business
development expenses, Brazilian affiliates foreign currency effects, Argentine
affiliates foreign currency effects, Venezuelan affiliates foreign currency
effects, effects of FAS No. 133, nonrecurring items, discontinued operations
and cumulative effect of accounting change.
(2) Includes Venezuela and Colombia.
(3) Operating Margin is revenues reduced by cost of sales, depreciation and
amortization and other operating expenses.
(4) Net income excludes Brazilian affiliates foreign currency effects,
Argentine affiliates foreign currency effects, Venezuelan affiliates foreign
currency effects, effects of FAS No. 133, nonrecurring items, discontinued
operations and cumulative effect of accounting change.
(5) The effect of the provision related to the Brazilian regulatory decision
recorded by AES Sul and the effect of impairment charges recorded by Drax and
Eletropaulo are excluded from these calculations.
THE AES CORPORATION
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2002 AND 2001
($ in millions) December 31, 2002 December 31, 2001
----------------- -----------------
Assets:
Current assets:
Cash and cash equivalents, including restricted cash of $181 and $357, respectively $ 961 $ 1,159
Short term investments 211 215
Accounts receivable, net of reserves of $424 and $239, respectively 1,239 1,127
Inventory 384 468
Receivable from affiliates 25 10
Deferred income taxes - current 130 244
Prepaid expenses and other assets 926 597
Current assets of held for sale and discontinued businesses 473 872
--------------- ---------------
Total current assets 4,349 4,692
Property, Plant and Equipment:
Land 703 542
Electric generation and distribution assets 19,125 16,326
Accumulated depreciation (4,204) (3,015)
Construction in progress 3,222 4,259
--------------- ---------------
Property, plant and equipment, net 18,846 18,112
Other assets:
Deferred financing costs, net 433 368
Project development costs 15 66
Investment in and advances to affiliates 194 3,031
Debt service reserves and other deposits 515 433
Goodwill, net 1,388 2,367
Deferred income taxes - noncurrent 968 -
Long-term assets of held for sale and discontinued businesses 5,322 6,936
Other assets 1,746 807
--------------- ---------------
Total other assets 10,581 14,008
--------------- ---------------
Total Assets $ 33,776 $ 36,812
=============== ===============
Liabilities & Stockholders' Equity
Current liabilities:
Accounts payable $ 1,139 $ 727
Accrued interest 369 266
Accrued and other liabilities 1,165 674
Current liabilities of held for sale and discontinued businesses 497 812
Recourse debt-current portion 26 488
Non-recourse debt-current portion 3,315 1,961
--------------- ---------------
Total current liabilities 6,511 4,928
Long-term liabilities
Recourse debt 5,778 4,913
Non-recourse debt 10,928 11,515
Deferred income taxes 981 627
Long-term liabilities of held for sale and discontinued businesses 4,785 4,827
Other long-term liabilities 3,338 1,955
--------------- ---------------
Total long-term liabilities 25,810 23,837
Minority interest, including discontinued operations of $41 and $124, respectively 818 1,530
Company obligated convertible mandatorily redeemable
preferred securities of subsidiary trusts holding
solely junior subordinated debentures of AES 978 978
Stockholders' equity:
Common stock 6 5
Additional paid-in capital 5,311 5,225
Retained earnings (699) 2,809
Accumulated other comprehensive loss (4,959) (2,500)
--------------- ---------------
Total stockholders' equity (341) 5,539
--------------- ---------------
Total Liabilities and Stockholders' Equity $ 33,776 $ 36,812
=============== ===============
THE AES CORPORATION
CAPITAL RESOURCES AND OTHER BALANCE SHEET DATA
DECEMBER 31, 2002 AND 2001
December 31, December 31,
Capitalization: 2002 2001
------------------ ------------------
Recourse debt $ 5.80 $ 5.40
Non-recourse debt 14.24 13.48
------------------ ------------------
Total debt 20.04 18.88
Preferred Securities 0.98 0.98
Minority Interest 0.82 1.53
Stockholders' equity (0.34) 5.54
------------------ ------------------
Total capitalization $ 21.50 $ 26.93
================== ==================
Selected Balance Sheet Data by Geographic Region:
Property, Plant Total Non-recourse
December 31, 2002 & Equipment Assets Debt
------------------------------------------------------------
North America 33% 22% 30%
Caribbean 27% 20% 20%
South America 23% 24% 35%
Europe/Africa 8% 18% 6%
Asia 9% 8% 9%
Discontinued operations - 7% -
Corporate - 1% -
December 31, 2001
North America 34% 20% 33%
Caribbean 27% 18% 23%
South America 25% 27% 33%
Europe/Africa 8% 18% 5%
Asia 6% 6% 6%
Discontinued operations - 10% -
Corporate - 1% -
Selected Balance Sheet Data by Line of Business:
Property, Plant Total Non-recourse
December 31, 2002 & Equipment Assets Debt
------------------------------------------------------------
Contract Generation 45% 37% 48%
Competitive Supply 17% 22% 11%
Large Utilities 30% 24% 32%
Growth Distribution Businesses 8% 9% 9%
Discontinued operations - 7% -
Corporate - 1% -
December 31, 2001
Contract Generation 44% 33% 46%
Competitive Supply 21% 24% 13%
Large Utilities 23% 20% 31%
Growth Distribution Businesses 12% 12% 10%
Discontinued operations - 10% -
Corporate - 1% -
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE AES CORPORATION
Date: February 20, 2003 By: /s/ Brian Miller
------------------------------
Name: Brian Miller
Title: Deputy General Counsel
and Secretary