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 5, 2004
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, 20th Floor
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)
Item 5. Other Events
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED DECEMBER 31, 2003 AND 2002
--------------------------------------------------------------------------------
Quarter Quarter
Ended Ended
($ in millions, except per share amounts) 12/31/2003 12/31/2002
--------------------------------------------------------------------------------
REVENUES:
Sales and services $ 2,281 $ 1,866
OPERATING COSTS AND EXPENSES:
Cost of sales and services 1,637 1,455
Corporate and business development office expenses 59 48
Other operating expense, net 16 23
Goodwill impairment expense 11 675
Asset impairment expense 43 127
------- -------
Total operating costs and expenses 1,766 2,328
------- -------
OPERATING INCOME (LOSS) 515 (462)
OTHER INCOME AND (EXPENSE):
Interest expense, net (395) (379)
Other nonoperating expense, net (7) (3)
Foreign currency transaction losses (27) (16)
Loss on sale of investments (52) -
Equity in earnings (losses) of affiliates 37 (238)
------- -------
INCOME (LOSS) BEFORE INCOME TAXES AND
MINORITY INTEREST 71 (1,098)
Income tax expense 34 302
Minority interest expense (income) 33 7
------- -------
INCOME (LOSS) FROM CONTINUING OPERATIONS 4 (1,407)
Loss from operations of discontinued components (net
of income tax benefit of $72 and $423, respectively) (490) (1,359)
------- -------
LOSS BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE (486) (2,766)
Cumulative effect of accounting change
(net of income taxes of $23) 42 -
------- --------
NET LOSS $ (444) $(2,766)
======= ========
DILUTED EARNINGS PER SHARE:
Income from continuing operations $ 0.01 $ (2.58)
Discontinued operations (0.79) (2.50)
Cumulative effect of accounting change 0.07 -
------- --------
Total $ (0.71) $ (5.08)
======= ========
Diluted weighted average
shares outstanding (in millions) 628 545
=== ===
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002
--------------------------------------------------------------------------------
Year Year
Ended Ended
($ in millions, except per share amounts) 12/31/2003 12/31/2002
--------------------------------------------------------------------------------
REVENUES:
Sales and services $ 8,415 $ 7,380
OPERATING COSTS AND EXPENSES:
Cost of sales and services 5,982 5,430
Corporate and business development office expenses 157 112
Other operating expense (income), net 46 (37)
Goodwill impairment expense 11 675
Asset impairment expense 148 295
-------- --------
Total operating costs and expenses 6,344 6,475
-------- --------
OPERATING INCOME 2,071 905
OTHER INCOME AND (EXPENSE):
Interest expense, net (1,706) (1,485)
Other nonoperating income, net 107 13
Foreign currency transaction gains (losses) 127 (459)
Equity in earnings (losses) of affiliates 94 (203)
Loss on sale or write-down of investments (53) (115)
-------- --------
INCOME (LOSS) BEFORE INCOME TAXES AND
MINORITY INTEREST 640 (1,344)
Income tax expense 194 285
Minority interest expense (income) 110 (20)
-------- --------
INCOME (LOSS) FROM CONTINUING OPERATIONS 336 (1,609)
Loss from operations of discontinued components (net of
income tax benefit of $72 and $407, respectively) (780) (1,554)
-------- --------
LOSS BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE (444) (3,163)
Cumulative effect of accounting change
(net of income taxes of $22 and $72) 41 (346)
-------- --------
NET LOSS $ (403) (3,509)
======== ========
DILUTED EARNINGS PER SHARE:
Income from continuing operations $ 0.56 $ (2.99)
Discontinued operations (1.30) (2.88)
Cumulative effect of accounting change 0.07 (0.64)
-------- --------
Total $ (0.67) $ (6.51)
======== ========
Diluted weighted average
shares outstanding (in millions) 598 539
=== ===
Business Segment Results
AES's business segments, which include Contract Generation, Large Utilities,
Competitive Supply and Growth Distribution, generated combined income before
income taxes and minority interest, excluding the Corporate segment, of $1,234
million for 2003, as compared with a loss of $(863) million for 2002. Total
income before income taxes and minority interest, including the Corporate
segment, was $640 million for 2003, as compared with a loss of $(1,344) million
for 2002. On a geographic basis, income before income taxes and minority
interest from the business segments was generated $475 million from North
America, $328 million from South America, $160 million from Asia, $55 million
from Europe and Africa and $216 million from the Caribbean.
During the fourth quarter of 2003, AES decided to exit Wolf Hollow, a 730 MW
gas plant in Texas, Granite Ridge, a 720 MW gas plant in New Hampshire, and
Termomamonal, a 90 MW gas plant in Colombia, all of which were previously
reported in the competitive supply. Additionally, AES decided to exit Ede Este,
a distribution company in the Dominican Republic which was previously reported
in the growth distribution segment. All amounts have been restated to reflect
discontinued operations that have occurred in the current and prior periods.
Contract Generation
($ in millions) 2003 2002 Variance
------ ------ --------
Segment revenues $3,108 $2,550 $558
% of total revenues 37% 35% 2%
Gross margin $1,267 $1,065 $202
% of segment revenues 41% 42% (1)%
Income before income taxes and minority interest $599 $665 $(66)
% of income before income taxes and
minority interest from segments 49% 77% (28)%
Contract Generation consists of multiple power generation facilities located
around the world that generally have contractually limited their exposure to
commodity price risks and electricity price volatility by entering into
long-term (5 years or longer) power purchase agreements for 75% or more of
their expected output capacity.
For 2003, Contract Generation revenues were $3,108 million and represented 37%
of total revenues, an increase of $558 million over 2002. The most significant
contributions came from North and South America, which in aggregate comprised
58% of Contract Generation revenue for the year as compared to 67% for the same
period in 2002. Revenues were enhanced with the addition of recently completed
contract generation businesses totaling 1,451 mw, including Red Oak in New
Jersey (832 mw gas), Puerto Rico (454 mw coal), Kelanitissa in Sri Lanka (165
mw gas), Barka in Oman (427 mw gas), Ras Laffan in Qatar (750 mw gas) and Andres
in the Dominican Republic (310 mw gas). Revenues also improved at Los Mina in
the Dominican Republic, Merida III in Mexico, Tiszai in Hungary, Gener in Chile
and Tiete in Brazil. These improvements were offset by declines at Shady Point
in Oklahoma due to a step-down in the contracted capacity payment and at Lal Pir
and Pak Gen in Pakistan.
The gross margin for the Contract Generation segment was $1,267 million for
2003, an increase of 19% from 2002. Gross margin increases were attributable to
Tiete in Brazil, and Ebute in Nigeria. Additionally, new plants that came
online contributed to the increase. These increases were partially offset by
declines in gross margin at Beaver Valley and Ironwood in Pennsylvania, Shady
Point in Oklahoma, Kilroot in Northern Ireland and the Chigen plants in China.
As a percentage of revenues, the gross margin for the Contract Generation
segment was 41% for 2003 compared to 42% for 2002.
Contract Generation generated $599 million of income before income taxes and
minority interest (or 49% of the net total) for 2003, a decrease from $665
million for 2002. South America showed an increase due to Tiete in Brazil.
North America experienced declines due to Beaver Valley in Pennsylvania,
Warrior Run in Maryland due to significant FAS 133 mark-to-market gains in 2002
related to their power purchase agreement, Shady Point in Oklahoma due to a
step-down in the contracted capacity payment in 2003 and Hawaii due to
write-offs of deferred financing and swap breakage costs of $22 million related
to their non-recourse debt refinancing during 2003. These declines were
partially offset by increases in the Southland plants in California. The
Caribbean experienced an overall increase due to the start of commercial
operations at Andres in the Dominican Republic and Puerto Rico offset slightly
by the write-off of project development costs related to El Faro, a terminated
business development project in Honduras. Europe/Africa experienced a
significant decrease due to the $76 million write-off of previously capitalized
costs of Bujagali, a construction project in Uganda that the company decided to
terminate during the third quarter of 2003 and Zeg, a construction project in
Poland that the company decided to terminate during the fourth quarter of 2003.
Asia had overall decreases due to declines at Lal Pir and Pak Gen in Pakistan
and Chigen in China which were partially offset by the start of commercial
operations at Barka and Ras Laffan.
Competitive Supply
($ in millions) 2003 2002 Variance
---- ---- --------
Segment revenues $880 $812 $68
% of total revenues 10% 11% (1)%
Gross margin $220 $183 $37
% of segment revenues 25% 23% 2%
Income (loss) before income taxes and minority
interest $140 $(357) $497
% of income before income taxes
and minority interest from segments 11% (41)% 52%
Competitive Supply consists primarily of the 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 2003, Competitive Supply revenues were $880 million and represented 10% of
total revenues for the year. The most significant contributions were from the
competitive markets of the U.S., which comprised 51% of Competitive Supply
revenue for 2003 and 2002. Competitive market prices increased year over year
in New York, which resulted in increased revenue in the New York plants.
Additionally, other plants showed revenue improvements, including Alicura and
Parana in Argentina, Panama in the Caribbean and Ekibastuz in Asia. These
increases were partially offset by decreased revenues from Deepwater in Texas
due to an outage during the third quarter of 2003 and from Borsod in Hungary.
Gross margin as a percentage of revenues for the Competitive Supply segment was
25% for 2003, an increase from 23% for 2002. Overall, the gross margin for
Competitive Supply increased to $220 million from $183 million. Margins and
margin percentages were higher at the New York plants, CTSN and Parana in South
America and Altai in Asia. These increases were partially offset by lower
margins and margin percentages at Deepwater in Texas and Borsod.
Competitive Supply generated $140 million of income before income taxes and
minority interest (or 11% of the net total) for 2003, which represents a $497
million improvement over the same period in 2002. The increase is primarily due
to the write-off of $168 million of construction costs associated with
Greystone, a project in Tennessee, and $83 million of construction costs during
2002 related to Lake Worth, a project in Florida. Operationally, during 2003
increases at CTSN in Argentina and the New York plants were partially offset by
decreases at Parana in Argentina, Panama, Borsod in Hungary and Deepwater in
Texas.
Large Utilities
($ in millions) 2003 2002 Variance
------ ------ --------
Segment revenues $3,301 $3,150 $151
% of total revenues 39% 43% (4)%
Gross margin $762 $687 $75
% of segment revenues 23% 22% 1%
Income (loss) before income taxes and minority
interest $380 $(978) $1,358
% of income before income taxes
and minority interest from segments 31% (113)% 144%
The Large Utilities segment is comprised of the large integrated utilities that
serve nearly 7 million customers in North America, the Caribbean and South
America. The Large Utility businesses include IPALCO in Indiana, EDC in
Venezuela and Eletropaulo in Brazil.
For 2003, revenues for Large Utilities were $3,301 million and represented 39%
of total revenues for the year. Revenues for Large Utilities increased $151
million, or 5%, compared to 2002. Eletropaulo's revenues for the year increased
due to appreciation of the Brazilian Real compared to the same quarter of 2002.
EDC's revenues decreased due to devaluation of the Venezuelan Bolivar partially
offset by a higher demand and a tariff increase. IPALCO had a slight increase
year over year.
The gross margin as a percentage of revenues for the Large Utility segment was
23% for 2003 compared to 22% for 2002. The South America gross margin increased
mainly due to an impairment charge taken for Cemig in the fourth quarter of
2002. EDC's gross margin increased due to higher demand and increased tariffs
in 2003 compared to 2002. IPALCO experienced a lower margin and margin
percentage due to milder weather and higher operating and maintenance costs in
2003. Overall, gross margin for Large Utilities increased to $762 million for
2003 from $687 million for 2002.
Large Utilities generated $380 million of income before income taxes and
minority interest (or 31% of the net total) for 2003, up from a loss of $(978)
million for the same period in 2002. The increase relates primarily to
impairment charges taken in 2002 for Eletropaulo and Cemig, which were not
recurring in 2003.
Growth Distribution
($ in millions) 2003 2002 Variance
------ ---- --------
Segment revenues $1,126 $868 $258
% of total revenues 13% 12% 1%
Gross margin $184 $15 $169
% of segment revenues 16% 2% 14%
Income (loss) before income taxes
and minority interest $115 $(193) $308
% of income before income taxes
and minority interest from segments 9% (22)% 31%
The Growth Distribution segment, serving nearly 4 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 2003, revenues were $1,126 million, a 1% increase over 2002, and
represented 13% of total revenues for the year. The Caribbean and South America
represent the most
significant contributors with 67% of Growth Distribution revenues, while
Europe/Africa contributes the remaining 33%. There were increases in revenues
at Eden & Edes and Edelap in Argentina, Sonel in Cameroon and Clesa and Caess
in El Salvador. These were partially offset by reductions at Sul in Brazil.
The gross margin as a percentage of revenues for the Growth Distribution
segment was 16% for 2003, an increase from 2% for 2002. Gross margin and gross
margin percentages increased at Sonel in Cameroon and Caess in El Salvador.
Additionally, there was a nonrecurring charge taken in 2002 for the write-off
of $141 million related to MAE settlements at Sul in Brazil that was not
recurring in 2003. These increases were partially offset by decreased gross
margins at Eden, Edes and Edelap in Argentina. Overall, the gross margin for
the Growth Distribution segment increased to $184 million for 2003.
Growth Distribution businesses generated $115 million of income before income
taxes and minority interest for 2003, an increase of $308 million from a loss
before income taxes of $(193) million for 2002. Income before income taxes and
minority interest increased at Sul in Brazil and Caess in El Salvador. These
increases were partially offset by lower operating margins at Eden & Edes in
Argentina. Additionally, the charge taken in 2002 for the write-off of $141
million related to MAE settlements at Sul in Brazil contributed to the change.
THE AES CORPORATION -- Supplemental Data
----------------------------------------------------
($ in millions, except Total Assets in billions)
---------------------------2002------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
GEOGRAPHIC:
North America
Revenues $ 489 $ 491 $ 569 $ 538 $ 2,087
Income before Income Taxes and Minority Interest $ 137 $ 139 $ 6 $ (2) $ 280
Caribbean (1)
Revenues $ 313 $ 296 $ 271 $ 314 $ 1,194
Income before Income Taxes and Minority Interest $ 72 $ 91 $ 59 $ (51) $ 171
South America
Revenues $ 786 $ 706 $ 710 $ 684 $ 2,886
Income before Income Taxes and Minority Interest $ (38) $ (307) $ (285) $ (983) $(1,613)
Europe/Africa
Revenues $ 217 $ 176 $ 194 $ 234 $ 821
Income before Income Taxes and Minority Interest $ 56 $ 30 $ 18 $ 62 $ 166
Asia
Revenues $ 100 $ 108 $ 88 $ 96 $ 392
Income before Income Taxes and Minority Interest $ 41 $ 46 $ 26 $ 20 $ 133
Corporate (3)
Income before Income Taxes and Minority Interest $ (124) $ (117) $ (96) $ (144) $ (481)
SEGMENTS:
Contract Generation
Revenues $ 652 $ 632 $ 598 $ 668 $ 2,550
Gross Margin (2) $ 272 $ 260 $ 242 $ 291 $ 1,065
Income before Income Taxes and Minority Interest $ 190 $ 166 $ 155 $ 154 $ 665
Competitive Supply
Revenues $ 192 $ 177 $ 214 $ 229 $ 812
Gross Margin (2) $ 33 $ 35 $ 53 $ 62 $ 183
Income before Income Taxes and Minority Interest $ (104) $ (49) $ (130) $ (74) $ (357)
Large Utilities
Revenues $ 768 $ 863 $ 783 $ 736 $ 3,150
Gross Margin (2) $ 232 $ 186 $ 199 $ 70 $ 687
Income before Income Taxes and Minority Interest $ 169 $ 39 $ (192) $ (994) $ (978)
Growth Distribution
Revenues $ 293 $ 105 $ 237 $ 233 $ 868
Gross Margin (2) $ 75 $ (93) $ 45 $ (12) $ 15
Income before Income Taxes and Minority Interest $ 13 $ (157) $ (9) $ (40) $ (193)
Corporate (3)
Income before Income Taxes and Minority Interest $ (124) $ (117) $ (96) $ (144) $ (481)
ADDITIONAL INFORMATION:
Revenues $ 1,905 $ 1,777 $ 1,832 $ 1,866 $ 7,380
Gross Margin (2) $ 612 $ 388 $ 539 $ 411 $ 1,950
Gross Margin Percentage (2) 32% 22% 29% 22% 26%
Income before Income Taxes and Minority Interest $ 144 $ (118) $ (272) $(1,098) $(1,344)
Diluted EPS from Continuing Operations(4) $ 0.17 $ (0.18) $ (0.37) $ (2.58) $ (2.99)
Total Assets (billions) $ 40 $ 39 $ 37 $ 34 $ 34
Depreciation and Amortization $ 168 $ 169 $ 162 $ 165 $ 664
FAS 133 Gain (Loss)(5) $ 4 $ 43 $ -- $ (45) $ 2
Foreign Exchange Gain (Loss) from Brazil(5) $ (10) $ (85) $ (203) $ 46 $ (252)
Foreign Exchange Gain (Loss) from Argentina(5) $ (82) $ (52) $ -- $ (5) $ (139)
Foreign Exchange Gain (Loss) from Venezuela(5) $ 65 $ 25 $ 21 $ (72) $ 39
(1) Includes Venezuela and Colombia.
(2) Gross Margin is revenues reduced by cost of sales and services.
(3) Corporate consists of interest expense and corporate and business development expenses. Revenue and Gross
Margin for Corporate equal zero.
(4) The sum of these amounts do not equal the annual amount due to rounding or because the quarterly calculations
are based on varying numbers of shares outstanding.
(5) Amount is net of the income tax effect.
---------------------------2003------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
GEOGRAPHIC:
North America
Revenues $ 546 $ 507 $ 581 $ 525 $ 2,159
Income before Income Taxes and Minority Interest $ 120 $ 100 $ 134 $ 121 $ 475
Caribbean (1)
Revenues $ 347 $ 373 $ 387 $ 421 $ 1,528
Income before Income Taxes and Minority Interest $ 56 $ 20 $ 83 $ 57 $ 216
South America
Revenues $ 675 $ 796 $ 908 $ 929 $ 3,308
Income before Income Taxes and Minority Interest $ 68 $ 143 $ 64 $ 53 $ 328
Europe/Africa
Revenues $ 236 $ 209 $ 217 $ 252 $ 914
Income before Income Taxes and Minority Interest $ 64 $ 22 $ (55) $ 24 $ 55
Asia
Revenues $ 107 $ 107 $ 138 $ 154 $ 506
Income before Income Taxes and Minority Interest $ 42 $ 46 $ 53 $ 19 $ 160
Corporate (3)
Income before Income Taxes and Minority Interest $ (137) $ (106) $ (148) $ (203) $ (594)
SEGMENTS:
Contract Generation
Revenues $ 716 $ 735 $ 817 $ 840 $ 3,108
Gross Margin (2) $ 291 $ 285 $ 327 $ 364 $ 1,267
Income before Income Taxes and Minority Interest $ 169 $ 142 $ 103 $ 185 $ 599
Competitive Supply
Revenues $ 229 $ 196 $ 230 $ 225 $ 880
Gross Margin (2) $ 69 $ 45 $ 59 $ 47 $ 220
Income before Income Taxes and Minority Interest $ 70 $ 41 $ 37 $ (8) $ 140
Large Utilities
Revenues $ 702 $ 778 $ 908 $ 913 $ 3,301
Gross Margin (2) $ 165 $ 163 $ 244 $ 190 $ 762
Income before Income Taxes and Minority Interest $ 73 $ 91 $ 127 $ 89 $ 380
Growth Distribution
Revenues $ 264 $ 283 $ 276 $ 303 $ 1,126
Gross Margin (2) $ 50 $ 45 $ 46 $ 43 $ 184
Income before Income Taxes and Minority Interest $ 38 $ 57 $ 12 $ 8 $ 115
Corporate (3)
Income before Income Taxes and Minority Interest $ (137) $ (106) $ (148) $ (203) $ (594)
ADDITIONAL INFORMATION:
Revenues $ 1,911 $ 1,992 $ 2,231 $ 2,281 $ 8,415
Gross Margin (2) $ 575 $ 538 $ 676 $ 644 $ 2,433
Gross Margin Percentage (2) 30% 27% 30% 28% 29%
Income before Income Taxes and Minority Interest $ 213 $ 225 $ 131 $ 71 $ 640
Diluted EPS from Continuing Operations(4) $ 0.23 $ 0.24 $ 0.10 $ 0.01 $ 0.56
Total Assets (billions) $ 33 $ 34 $ 30 $ 30 $ 30
Depreciation and Amortization $ 173 $ 182 $ 196 $ 187 $ 738
FAS 133 Gain (Loss)(5) $ (8) $ (18) $ (11) $ (3) $ (40)
Foreign Exchange Gain (Loss) from Brazil(5) $ 22 $ 82 $ (19) $ -- $ 85
Foreign Exchange Gain (Loss) from Argentina(5) $ 33 $ 21 $ (23) $ (7) $ 24
Foreign Exchange Gain (Loss) from Venezuela(5) $ 4 $ (18) $ 10 $ 5 $ 1
(1) Includes Venezuela and Colombia.
(2) Gross Margin is revenues reduced by cost of sales and services.
(3) Corporate consists of interest expense and corporate and business development expenses. Revenue and Gross
Margin for Corporate equal zero.
(4) The sum of these amounts do not equal the annual amount due to rounding or because the quarterly calculations
are based on varying numbers of shares outstanding.
(5) Amount is net of the income tax effect.
THE AES CORPORATION
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2003 AND 2002
($ in millions) December 31, 2003 December 31, 2002
----------------- -----------------
Assets:
Current assets:
Cash and cash equivalents $ 1,737 $ 792
Restricted cash 394 158
Short term investments 189 177
Accounts receivable, net of reserves of
$291 and $310, respectively 1,211 1,001
Inventory 376 353
Receivable from affiliates 3 25
Deferred income taxes - current 136 138
Prepaid expenses 64 27
Other current assets 677 923
Current assets of held for sale and
discontinued businesses 205 763
---------------- -----------------
Total current assets 4,992 4,357
Property, Plant and Equipment:
Land 733 687
Electric generation and distribution assets 21,152 18,176
Accumulated depreciation (4,954) (4,031)
Construction in progress 1,278 2,349
---------------- -----------------
Property, plant and equipment, net 18,209 17,181
Other assets:
Deferred financing costs, net 430 390
Investment in and advances to affiliates 648 678
Debt service reserves and other deposits 428 508
Goodwill, net 1,378 1,373
Deferred income taxes - noncurrent 781 967
Long-term assets of held for sale and
discontinued businesses 750 7,332
Other assets 1,992 1,482
---------------- -----------------
Total other assets 6,407 12,730
---------------- -----------------
Total Assets $ 29,608 $ 34,268
================ =================
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable $ 1,245 $ 1,018
Accrued interest 561 331
Accrued and other liabilities 1,156 1,091
Current liabilities of held for sale
and discontinued businesses 699 763
Recourse debt-current portion 77 26
Non-recourse debt-current portion 2,769 3,277
---------------- -----------------
Total current liabilities 6,507 6,506
Long-term liabilities:
Recourse debt 5,862 6,755
Non-recourse debt 11,015 10,044
Deferred income taxes 1,051 1,186
Long-term liabilities of held for sale
and discontinued businesses 94 5,738
Pension liabilities 947 1,166
Other long-term liabilities 2,702 2,557
---------------- -----------------
Total long-term liabilities 21,671 27,446
Minority Interest, including discontinued
businesses of $12 and $41 in 2003 And 2002 805 657
Stockholders' equity (deficit):
Common stock 6 6
Additional paid-in capital 5,737 5,312
Accumulated deficit (1,103) (700)
Accumulated other comprehensive loss (4,015) (4,959)
---------------- -----------------
Total stockholders' equity (deficit) 625 (341)
---------------- -----------------
Total Liabilities and Stockholders' Equity (Deficit) $ 29,608 $ 34,268
================ =================
THE AES CORPORATION
CAPITAL RESOURCES AND OTHER BALANCE SHEET DATA
($ in billions)
December 31, December 31,
Capitalization: 2003 2002
------------ ------------
Recourse debt $ 5.94 $ 6.78
Non-recourse debt 13.78 13.32
------------ ------------
Total debt 19.72 20.10
Minority Interest 0.81 0.66
Stockholders' equity 0.63 (0.34)
------------ ------------
Total capitalization $ 21.16 $ 20.42
============ ============
Selected Balance Sheet Data by Geographic Region:
Property, Plant Total Non-recourse
December 31, 2003 & Equipment Assets Debt
---------------------------------------------------
North America $ 5.21 $ 6.44 $ 3.86
Caribbean 4.68 5.83 2.49
South America 5.14 10.00 5.21
Europe/Africa 1.50 2.75 0.89
Asia 1.66 2.49 1.34
Discontinued Operations - 0.96 -
Corporate 0.02 1.14 -
December 31, 2002
North America $ 5.26 $ 6.53 $ 3.77
Caribbean 5.00 6.07 2.79
South America 4.23 8.66 4.96
Europe/Africa 1.30 2.32 0.74
Asia 1.38 2.19 1.06
Discontinued Operations - 8.10 -
Corporate 0.01 0.40 -
Selected Balance Sheet Data by Line of Business:
Property, Plant Total Non-recourse
December 31, 2003 & Equipment Assets Debt
---------------------------------------------------
Contract Generation $ 9.12 $ 13.45 $ 7.62
Competitive Supply 1.47 2.14 0.51
Large Utilities 6.03 9.05 4.55
Growth Distribution 1.57 2.87 1.10
Discontinued Operations - 0.96 -
Corporate 0.02 1.14 -
December 31, 2002
Contract Generation $ 8.06 $ 12.09 $ 6.54
Competitive Supply 2.13 2.80 1.07
Large Utilities 5.64 8.49 4.65
Growth Distribution 1.34 2.39 1.06
Discontinued Operations - 8.10 -
Corporate 0.01 0.40 -
Item 12. Results of Operations and Financial Condition
On February 5, 2004, the AES Corporation issued a press release setting
forth its financial results for the year ended December 31, 2003 and the fourth
quarter of the year ended December 31, 2003. A copy of the press release is
attached hereto as Exhibit 99.1 and hereby incorporated by reference solely in
Item 12 of this Form 8-K.
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 5, 2004 By: /s/ Vincent W. Mathis
---------------------------------
Name: Vincent W. Mathis
Title: Assistant General Counsel
INDEX TO EXHIBITS
EXHIBIT EXHIBIT
NUMBER
99.1 Press Release dated February 5, 2004.