The AES Corporation (AES) 10-Q 6 Nov 09 2009 Q3 Quarterly report Financial data

Statement Of Income

Statement Of Income (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Revenues:
Regulated	$2,092	$2,089	$5,542	$6,043
Non-regulated	1,746	2,230	5,169	6,483
Total revenues	3,838	4,319	10,711	12,526
Cost of Sales:
Regulated	(1,448)	(1,446)	(3,993)	(4,253)
Non-regulated	(1,382)	(1,911)	(3,980)	(5,240)
Total cost of sales	(2,830)	(3,357)	(7,973)	(9,493)
Gross margin	1,008	962	2,738	3,033
General and administrative expenses	(82)	(90)	(255)	(287)
Interest expense	(421)	(458)	(1,195)	(1,362)
Interest income	94	156	282	405
Other expense	(15)	(18)	(67)	(128)
Other income	35	63	279	258
Gain on sale of investments	17	0	132	912
Impairment expense	(6)	(22)	(7)	(94)
Foreign currency transaction losses on net monetary position	(1)	(60)	(13)	(123)
Other non-operating expense	(2)	0	(12)	0
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES	627	533	1,882	2,614
Income tax expense	(205)	(168)	(485)	(725)
Net equity in earnings of affiliates	18	(4)	75	38
INCOME FROM CONTINUING OPERATIONS	440	361	1,472	1,927
(Loss) income from operations of discontinued businesses, net of income tax expense of $-, $-, $- and $-, respectively	0	(2)	0	1
Loss from disposal of discontinued businesses, net of income tax expense of $-, $-, $- and $-, respectively	0	0	0	(1)
NET INCOME	440	359	1,472	1,927
Less: Net income attributable to noncontrolling interests	(255)	(214)	(766)	(646)
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION	185	145	706	1,281
BASIC EARNINGS PER SHARE:
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax	0.28	0.22	1.06	1.91
Discontinued operations attributable to The AES Corporation common stockholders, net of tax	$0	$0	$0	$0
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS	0.28	0.22	1.06	1.91
DILUTED EARNINGS PER SHARE:
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax	0.28	0.22	1.06	1.87
Discontinued operations attributable to The AES Corporation common stockholders, net of tax	$0	$0	$0	$0
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS	0.28	0.22	1.06	1.87
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:
Income from continuing operations, net of tax	185	147	706	1,281
Discontinued operations, net of tax	0	(2)	0	0
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION	$185	$145	$706	$1,281

Statement Of Income (Parentheti

Statement Of Income (Parenthetical) (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
(Loss) income from operations of discontinued businesses, income tax expense	$0	$0	$0	$0
Loss from disposal of discontinued businesses, income tax expense	$0	$0	$0	$0

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Dec. 31, 2008
CURRENT ASSETS
Cash and cash equivalents	$2,020	$903
Restricted cash	510	729
Short-term investments	1,357	1,382
Accounts receivable, net of allowance for doubtful accounts of $275 and $254, respectively	2,387	2,233
Inventory	578	564
Receivable from affiliates	28	31
Deferred income taxes-current	158	180
Prepaid expenses	274	177
Other current assets	1,416	1,117
Total current assets	8,728	7,316
Property, Plant and Equipment:
Land	1,092	854
Electric generation, distribution assets, and other	27,467	24,654
Accumulated depreciation	(8,799)	(7,515)
Construction in progress	4,466	3,410
Property, plant and equipment, net	24,226	21,403
Other assets:
Deferred financing costs, net of accumulated amortization of $292 and $272, respectively	391	366
Investments in and advances to affiliates	1,109	901
Debt service reserves and other deposits	655	636
Goodwill	1,423	1,421
Other intangible assets, net of accumulated amortization of $202 and $185, respectively	487	500
Deferred income taxes-noncurrent	674	567
Other	1,568	1,696
Total other assets	6,307	6,087
TOTAL ASSETS	39,261	34,806
CURRENT LIABILITIES
Accounts payable	1,223	1,042
Accrued interest	358	252
Accrued and other liabilities	3,086	2,660
Non-recourse debt-current	1,357	1,074
Recourse debt-current	214	154
Total current liabilities	6,238	5,182
LONG-TERM LIABILITIES
Non-recourse debt-noncurrent	12,791	11,869
Recourse debt-noncurrent	5,298	4,994
Deferred income taxes-noncurrent	1,316	1,132
Pension and other post-retirement liabilities	1,158	1,017
Other long-term liabilities	3,835	3,525
Total long-term liabilities	24,398	22,537
Contingencies and Commitments (see Note 8)	-	-
Cumulative preferred stock of subsidiary	60	60
THE AES CORPORATION STOCKHOLDERS' EQUITY
Common stock ($0.01 par value, 1,200,000,000 shares authorized; 677,017,626 issued and 667,483,036 outstanding at September 30, 2009; 673,478,012 issued and 662,786,745 outstanding at December 31, 2008)	7	7
Additional paid-in capital	6,859	6,832
Retained earnings (accumulated deficit)	698	(8)
Accumulated other comprehensive loss	(2,855)	(3,018)
Treasury stock, at cost (9,534,590 and 10,691,267 shares at September 30, 2009 and December 31, 2008, respectively)	(126)	(144)
Total The AES Corporation stockholders' equity	4,583	3,669
NONCONTROLLING INTERESTS	3,982	3,358
Total equity	8,565	7,027
TOTAL LIABILITIES AND EQUITY	$39,261	$34,806

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Millions, except Share data	Sep. 30, 2009	Dec. 31, 2008
Accounts receivable, allowance for doubtful accounts	$275	$254
Deferred financing costs, accumulated amortization	292	272
Other intangible assets, accumulated amortization	$202	$185
Common stock, par value	0.01	0.01
Common stock, shares authorized	1,200,000,000	1,200,000,000
Common stock, issued	677,017,626	673,478,012
Common stock, outstanding	667,483,036	662,786,745
Treasury stock, shares	9,534,590	10,691,267

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
OPERATING ACTIVITIES:
Net income	$1,472	$1,927
Adjustments to net income:
Depreciation and amortization	767	760
Gain from sale of investments and impairment expense	(115)	(832)
Provision for deferred taxes	(24)	296
Settlement of non-cash contingencies	(14)	44
(Gain) loss on the extinguishment of debt	(3)	56
Other	33	(76)
Changes in operating assets and liabilities:
Increase in accounts receivable	(82)	(363)
Increase in inventory	(10)	(101)
Decrease (increase) in prepaid expenses and other current assets	114	(35)
Increase in other assets	(133)	(246)
(Decrease) increase in accounts payable and accrued liabilities	(159)	156
Increase in income tax receivables and payables, net	96	88
Decrease in other long-term liabilities	(43)	(87)
Net cash provided by operating activities	1,899	1,587
INVESTING ACTIVITIES:
Capital expenditures	(1,765)	(1,963)
Acquisitions-net of cash acquired	0	(1,135)
Proceeds from the sales of businesses	2	1,093
Proceeds from the sales of assets	16	102
Sale of short-term investments	3,277	4,121
Purchase of short-term investments	(2,774)	(4,262)
Decrease (increase) in restricted cash	272	(57)
Decrease (increase) in debt service reserves and other assets	80	(38)
Affiliate advances and equity investments	(137)	(205)
Loan advances	0	(173)
Other investing	(15)	79
Net cash used in investing activities	(1,044)	(2,438)
FINANCING ACTIVITIES:
(Repayments) borrowings under the revolving credit facilities, net	(96)	382
Issuance of recourse debt	503	625
Issuance of non-recourse debt	1,189	1,908
Repayments of recourse debt	(154)	(1,037)
Repayments of non-recourse debt	(622)	(1,037)
Payments for deferred financing costs	(72)	(62)
Distributions to noncontrolling interests	(561)	(450)
Contributions from noncontrolling interests	75	407
Financed capital expenditures	(27)	(52)
Purchase of treasury stock	0	(143)
Other financing	8	21
Net cash provided by financing activities	243	562
Effect of exchange rate changes on cash	19	(50)
Total increase (decrease) in cash and cash equivalents	1,117	(339)
Cash and cash equivalents, beginning	903	2,043
Cash and cash equivalents, ending	2,020	1,704
SUPPLEMENTAL DISCLOSURES:
Cash payments for interest, net of amounts capitalized	971	1,141
Cash payments for income taxes, net of refunds	389	390
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Assets acquired in noncash asset exchange	111	18
Assets acquired in acquisition of subsidiary	0	946
Non-recourse debt assumed in acquisition of subsidiary	0	12
Liabilities assumed in acquisition of subsidiary	0	7
Assets disposed of in noncash asset exchange	$0	$4

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Common Stock	Treasury Stock	Additional Paid-In Capital	(Accumulated Deficit) Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests	Total
Beginning Balance at Dec. 31, 2007	$7	$0	$6,776	($1,241)	($2,378)	$3,181
Comprehensive income
Net income				1,281		646	1,927
Income from operations of discontinued businesses						(1)
Change in fair value of available-for-sale securities, net of income tax					(1)
Foreign currency translation adjustment, net of income tax					(166)	(184)
Change in derivative fair value (including a reclassification to earnings, net of income tax)					47	(1)
Change in unfunded pension obligation, net of income tax					(2)
Capital contributions from noncontrolling interests						432
Dividends declared to noncontrolling interests						(428)
Acquisition of treasury stock		(144)
Issuance of common stock under benefit plans and exercise of stock options			23
Stock compensation			27
Ending Balance at Sep. 30, 2008	7	(144)	6,826	40	(2,500)	3,645
Beginning Balance at Jun. 30, 2008	7
Comprehensive income
Ending Balance at Sep. 30, 2008	7
Beginning Balance at Dec. 31, 2008	7	(144)	6,832	(8)	(3,018)	3,358	7,027
Comprehensive income
Net income				706		766	1,472
Change in fair value of available-for-sale securities, net of income tax					6
Foreign currency translation adjustment, net of income tax					117	437
Change in derivative fair value (including a reclassification to earnings, net of income tax)					38	24
Change in unfunded pension obligation, net of income tax					2
Capital contributions from noncontrolling interests						79
Dividends declared to noncontrolling interests						(673)
Disposition of businesses						(7)
Preferred dividends of subsidiary						(2)
Issuance of common stock under benefit plans and exercise of stock options		18	11
Stock compensation			16
Ending Balance at Sep. 30, 2009	7	(126)	6,859	698	(2,855)	3,982	8,565
Beginning Balance at Jun. 30, 2009	7
Comprehensive income
Ending Balance at Sep. 30, 2009	$7

1. FINANCIAL STATEMENT PRESENTA

1. FINANCIAL STATEMENT PRESENTATION
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
1. FINANCIAL STATEMENT PRESENTATION	1. FINANCIAL STATEMENT PRESENTATION The prior period condensed consolidated financial statements in this Quarterly Report on Form 10-Q (Form10-Q) have been reclassified to reflect the financial statement presentation requirements of new accounting guidance related to noncontrolling interests, which became effective for the Company on January1, 2009, the new reportable segment structure discussed in Note 11 Segments and businesses held for sale and discontinued operations as discussed in Note 13 Discontinued Operations. In addition, certain immaterial prior period amounts have been reclassified within the condensed consolidated financial statements to conform to current period presentation. On September14, 2009, The AES Corporation filed a Current Report on Form 8-K (September 2009 Form8-K) to recast previously filed financial statements included in the Companys Form 10-K for the period ended December31, 2008 (2008 Form 10-K) to reflect the effect of changes to the Companys reportable segments and the adoption of the presentation and disclosure provisions of new accounting guidance for noncontrolling interests, which required retrospective presentation and became effective for the Company on January1, 2009. The revisions to the 2008 Form 10-K were limited to the Companys Business Overview, Selected Financial Data, Managements Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and Notes contained in Items 1, 6, 7 and 8. All other information in the 2008 Form 10-K remains unchanged. Consolidation In this Quarterly Report the terms AES, the Company, us or we refer to the consolidated entity including its subsidiaries and affiliates. The terms The AES Corporation, the Parent or the Parent Company refer only to the publicly-held holding company, The AES Corporation, excluding its subsidiaries and affiliates. Furthermore, variable interest entities (VIEs) in which the Company has an interest have been consolidated where the Company is the primary beneficiary. Investments in which the Company has the ability to exercise significant influence, but not control, are accounted for using the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation. Interim Financial Presentation The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S.GAAP) as contained in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (the Codification or ASC) for interim financial information and Article10 of RegulationS-X issued by the Securities and Exchange Commission (SEC). Accordingly, they do not include all the information and footnotes required by U.S.GAAP for annual fiscal reporting periods. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in equity and cash flows. The results of operations for the three and

Significant New Accounting Poli

Significant New Accounting Policies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Significant New Accounting Policies	Significant New Accounting Policies Noncontrolling Interests Effective January1, 2009, we adopted new accounting guidance which changed the accounting for, and the reporting of, minority interest, now referred to as noncontrolling interests, in the Companys condensed consolidated financial statements.The adoption of this guidance resulted in the reclassification of amounts previously attributable to minority interest to a separate component of stockholders equity titled Noncontrolling Interests in the accompanying condensed consolidated balance sheets and statements of changes in equity.Additionally, net income and comprehensive income attributable to noncontrolling interests are reflected separately from consolidated net income and comprehensive income in the accompanying condensed consolidated statements of operations and statements of changes in equity. As required by the authoritative guidance, prior period financial statements have been reclassified to conform to the current year presentation. The following summarizes significant changes in the Companys accounting policies related to the allocation of losses to noncontrolling interests, sale of stock of a subsidiary and the deconsolidation of a subsidiary: The new authoritative guidance for noncontrolling interests revised the provisions of previously issued accounting standards regarding consolidation. Losses continue to be attributed to the noncontrolling interests, even when the noncontrolling interests basis has been reduced to zero. Previously, losses that otherwise would have been attributed to the noncontrolling interests were allocated to the controlling interest after the associated noncontrolling interests basis was reduced to zero. The Company had no material losses that it did not allocate to noncontrolling interests prior to the adoption of the new noncontrolling interests accounting guidance and the adoption did not have a material impact on the Companys financial position or results of operations. The noncontrolling interests accounting guidance requires changes in a parents ownership interest in a subsidiary, which result in the parent retaining its controlling financial interest to be accounted for as equity transactions. Gains or losses from such transactions are no longer recognized in net income and the carrying values of the subsidiarys assets (including goodwill) and liabilities are not adjusted. Previous SEC guidance provided an option in certain circumstances for a parent to recognize a gain or loss on the sale of stock by a subsidiary or account for the sale as an equity transaction. In certain transactions, AES had previously elected the option to recognize a gain or loss. Under the revised guidance on noncontrolling interests, this option is no longer available. A parent company deconsolidates a subsidiary when that parent company no longer controls the subsidiary. When control is lost, the parent-subsidiary relationship no longer exists and the parent derecognizes the assets and liabilities of the subsidiary. If the parent company retains a noncontrolling interest, the remaining noncontrolling investment in the subsidiary is remeasured at f

New Accounting Pronouncements

New Accounting Pronouncements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements The following accounting standards have been issued, but as of September30, 2009 are not yet effective for and have not been adopted by AES. FAS No.167, Amendments to FASB Interpretation No.46(R) (FAS No.167) In June 2009, the FASB issued an amendment to the accounting and disclosure requirements for the consolidation of VIEs. The amendment requires an entity to qualitatively, rather than quantitatively, assess the determination of the primary beneficiary of a VIE. This determination should be based on whether the entity has the power to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Other key changes include: the requirement for an ongoing reconsideration of the primary beneficiary, the criteria for determining whether service provider or decision maker contracts are variable interests, the consideration of kick-out and removal rights in determining whether an entity is a VIE, the types of events that trigger the reassessment of whether an entity is a VIE and the expansion of the disclosures previously required. The impact of FAS No. 167 may require the Company to consolidate the assets, liabilities and operating results of certain VIEs, including certain entities currently accounted for under the equity method of accounting that AES does not currently consolidate. It may also require the Company to deconsolidated certain VIEs that are currently consolidated. The impact of the adoption may be applied retrospectively with a cumulative-effect adjustment to retained earnings as of the beginning of the first year restated, or through a cumulative-effect adjustment on the date of adoption. FAS No.167 is effective for fiscal years beginning after November15, 2009, or January1, 2010 for AES. Early adoption is prohibited. AES is currently reviewing the potential impact of FAS No.167 and at this time has determined that the adoption of FAS No.167 may have a material impact on its consolidated financial statements. ASU No.2009-05, Fair Value Measurement and Disclosures (ASU No.2009-05) In August 2009, the FASB issued ASU No.2009-05, which amended the fair value measurement and disclosure accounting guidance for the fair value measurement of liabilities. ASU No.2009-05 provided clarification that in circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using one or more of the following techniques: A valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities or similar liabilities when traded as assets. Another valuation technique that is consistent with the fair value principles of the income approach or market approach. ASU No.2009-05 also clarified that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs to reflect the existence of a restricti

2. INVENTORY

2. INVENTORY
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
2. INVENTORY	2. INVENTORY The following table summarizes the Companys inventory balances as of September30, 2009 and December31, 2008: September30, 2009 December31, 2008 (in millions) Coal, fuel oil and other raw materials $ 284 $ 311 Spare parts and supplies 294 253 Total $ 578 $ 564

3. FAIR VALUE DISCLOSURES

3. FAIR VALUE DISCLOSURES
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
3. FAIR VALUE DISCLOSURES	3. FAIR VALUE DISCLOSURES In April 2009, the FASB issued new accounting guidance requiring additional disclosures about the fair value of financial instruments in interim and annual financial statements. The following table summarizes the carrying and fair value of the Companys financial assets and liabilities as of September30, 2009 and December31, 2008: September30, 2009 December31, 2008 Carrying Amount FairValue Carrying Amount FairValue (in millions) Assets Marketable securities (1) $ 1,414 $ 1,414 $ 1,413 $ 1,413 Derivatives (2) 147 147 350 350 Total assets $ 1,561 $ 1,561 $ 1,763 $ 1,763 Liabilities Debt (3) $ 19,660 $ 20,470 $ 18,091 $ 15,588 Derivatives (2) 464 464 534 534 Total liabilities $ 20,124 $ 20,934 $ 18,625 $ 16,122 (1) See Note4 Investments in Marketable Securities for additional information regarding the classification of marketable securities in the fair value hierarchy. (2) See Note5 Derivative Instruments and Hedging Activities for additional information regarding the fair value of derivatives. (3) See Note7 Long-Term Debt for additional information regarding the fair value of the Companys recourse and non-recourse debt. The Company adopted the revised fair value measurement provisions as of January1, 2008 for financial assets and liabilities and January1, 2009 for all nonrecurring fair value measurements of nonfinancial assets. In general the Companys nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis include goodwill; intangible assets, such as sales concessions, land rights and emissions allowances; and long-lived tangible assets including property, plant and equipment. The Company did not recognize any material adjustments to nonfinancial assets or liabilities measured at fair value on a nonrecurring basis during the three or nine months ended September30, 2009. Although the adoption of the new fair value measurement and disclosure accounting guidance did not materially impact our financial condition, results of operations or cash flows, additional disclosures about fair value measurements are included in this Form 10-Q. The Companys financial assets and liabilities that are measured at fair value on a recurring basis fall into two broad categories: marketable securities and derivatives. Marketable securities are generally measured at fair value using the market approach. The Companys investments in marketable securities generally consist of debt and equity securities. Equity securities are adjusted to fair value using quoted market prices. Debt securities primarily consist of unsecured debentures, certificates of deposit, government debt securities and money market funds held by our Brazilian subsidiaries. Returns and pricing on these instruments are generally indexed to the CDI (Brazilian equivalent to LIBOR), Selic (overnight borrowing r

4. INVESTMENTS IN MARKETABLE SE

4. INVESTMENTS IN MARKETABLE SECURITIES
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
4. INVESTMENTS IN MARKETABLE SECURITIES	4. INVESTMENTS IN MARKETABLE SECURITIES New accounting guidance related to investments in debt and equity securities became effective and was adopted by the Company for the quarter ended June30, 2009. The new guidance amended existing other-than-temporary impairment guidance for debt securities to change the recognition threshold and to improve the presentation and disclosure of other-than-temporary impairment on debt and equity securities in the financial statements. The new accounting guidance also changed the accounting requirements related to the recognition of other-than-temporary impairment of debt securities. If other-than-temporary impairment is recognized, it is separated into two pieces 1) the amount representing the credit loss is recognized in earnings and 2) the amount related to other factors is recognized in other comprehensive income unless there is a plan to sell the assets in which case it would be recognized in earnings. The amount recognized in other comprehensive income for held-to-maturity debt securities is then amortized over the remaining life of the security. The changes were effective for new and existing securities held by an entity as of the beginning of the period adopted and required a cumulative adjustment to the opening balance of retained earnings in the period of adoption with a corresponding adjustment to accumulated other comprehensive income. The adoption did not have a material impact on the Companys financial condition, results of operations, or cash flows. AES has incorporated the additional disclosure requirements on this Form 10-Q. The following table sets forth the Companys investments in marketable debt and equity securities reported at fair value as of September30, 2009 and December31, 2008 by security type and by level within the fair value hierarchy. The security types are determined based on the nature and risk of the security and are consistent with how the Company manages, monitors and measures its securities. These securities have been classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Companys assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the determination of the fair value of the securities and their placement within the fair value hierarchy levels. September30, 2009 December31, 2008 Level1 Level2 Level3 Total (2) Total (2) (in millions) AVAILABLE-FOR-SALE: Unsecured debentures (1) $ - $ 706 $ - $ 706 $ 674 Certificates of deposit (1) - 470 - 470 493 Government debt securities - 136 - 136 32 Common stock (3) 16 - - 16 1 Money market funds - 29 - 29 21 Other - - 42 42 42 Subtotal $ 16 $ 1,341 $ 42 $ 1,399 $ 1,263 TRADING: Mutual funds 7 - - 7 - Subtotal 7 - - 7 -

5. DERIVATIVE INSTRUMENTS AND H

5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objectives The Company is exposed to market risks associated with its enterprise-wide business activities, namely the purchase and sale of fuels and electricity as well as foreign currency risk and interest rate risk. In order to manage the market risks associated with these business activities, we enter into contracts that incorporate derivatives and financial instruments, including forwards, futures, options, swaps or combinations thereof as appropriate. Derivative transactions are not entered into for trading purposes. Interest Rate Risk AES and its subsidiaries utilize variable rate debt financing for construction projects and operations, resulting in an exposure to interest rate risk. Interest rate swap, cap and floor agreements are entered into to manage interest rate risk by effectively fixing or limiting the interest rate exposure on the underlying financing. These interest rate contracts range in maturity through 2028. The following table sets forth, by type of interest rate index, the Companys current and maximum outstanding notional under its interest rate derivative instruments, the weighted average remaining term and the percentage of variable-rate debt hedged that is based on that index as of September30, 2009 regardless of whether the derivative instruments are in qualifying cash flow hedging relationships: September30, 2009 Current Maximum (1) WeightedAverage RemainingTerm(1) %ofDebt CurrentlyHedged by Index (2) InterestRateDerivatives Derivative Notional Derivative Notional Translated to USD Derivative Notional Derivative Notional Translated to USD (in millions) (in years) Bubor (Hungarian Forint) 3,683 $ 20 3,683 $ 20 <1 83 % Libor (U.S. Dollar) 2,935 2,935 3,606 3,606 10 72 % Euribor (Euro) 780 1,142 820 1,201 13 83 % Treasury Bills (U.S. Dollar) (3) 70 70 70 70 <1 123 % Libor (British Pound Sterling) 51 82 51 82 10 65 % City of Petersburg, IN Pollution Control Refunding Revenue Bonds Adjustable Rate (U.S.Dollar) 40 40 40 40 13 100 % (1) The Companys interest rate derivative instruments primarily include accreting and amortizing notionals. The maximum derivative notional represents the largest notional at any point between September30, 2009 and the maturity of the derivative instrument, which includes forward starting derivative instruments. The weighted average remaining term represents the tenor (remaining term) of our interest rate derivatives weighted by the corresponding maximum notional in USD. (2) Excludes variable-rate debt tied to other indices where the Company had no interest rate derivatives. (3) The debt and swap are related to a construction project. This swap does not currently qualify for cash flow hedge accounting. Cross currency swaps are utilized in certain instances to manage the risk related to fluctuations in both interest rates and certain foreign currencies. These cross currency contracts

6. INVESTMENTS IN AND ADVANCES

6. INVESTMENTS IN AND ADVANCES TO AFFILIATES
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
6. INVESTMENTS IN AND ADVANCES TO AFFILIATES	6. INVESTMENTS IN AND ADVANCES TO AFFILIATES 50%-or-less Owned Affiliates and Majority-owned Unconsolidated Subsidiaries AES holds a 71% ownership interest in AES Energia Cartagena (Cartagena), a VIE, in which the Company is not the primary beneficiary. The Companys investment in Cartagena is a combination of common stock and participative loans. As a result of unrealized losses on Cartagenas interest rate hedges, in December 2008 the investment balance was reduced to zero and the recognition of equity losses was suspended. AES will resume the equity method of accounting and recognize income once Cartagena generates income of which AESs portion is greater than or equal to the cumulative losses AES has not recognized while the equity method of accounting has been suspended. In June 2009, Cartagena received a cash settlement of $53 million for liquidated damages, including legal costs incurred, related to the construction delay from December 2005 to November 2006 of the 1,200 MW generation plant in Cartagena, Spain. Cartagena used the settlement proceeds to repay a portion of the participative loans outstanding to its investors including AES. The Company received its proportionate share of the settlement, $35 million, which was recognized as net equity in earnings of affiliates in the second quarter of 2009 because the distribution was in excess of the Companys current investment balance of zero and AES does not have an obligation or intent to fund future cash flow requirements of Cartagena. The following table summarizes financial information of the affiliates in which we own 50% or less and have the ability to exercise significant influence but do not control and our majority-owned unconsolidated subsidiaries accounted for using the equity method of accounting: 50%-or-less Owned Affiliates (1) Majority-owned Unconsolidated Subsidiaries (2) ThreeMonthsEnded September30, NineMonthsEnded September30, ThreeMonthsEnded September30, NineMonthsEnded September30, 2009 2008 2009 2008 2009 2008 2009 2008 (in millions) (in millions) Revenue $ 343 $ 301 $ 880 $ 889 $ 41 $ 43 $ 120 $ 131 Gross margin $ 73 $ 14 $ 143 $ 99 $ 21 $ 18 $ 41 $ 49 Net income (loss) $ 58 $ (3 ) $ 92 $ 80 $ 5 $ (5 ) $ 27 $ (2 ) (1) The 50%-or-less Owned Affiliates portion of the table excludes information related to the Companhia Energetica de Minas Gerais (CEMIG) business because the Company discontinued the application of the equity method of accounting in accordance with its accounting policy regarding equity method investments. In addition, although the Companys ownership interest in Trinidad Generation Unlimited, (Trinidad) is 10%, the Company accounts for its investment in Trinidad as an equity method investment because AES continues to exercise significant influence through the supermajority vote requirement for any significant future project development activities. (2) The Majority-owned Unconsolidated Subsidiaries portion of the table includes inform

7. LONG-TERM DEBT

7. LONG-TERM DEBT
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
7. LONG-TERM DEBT	7. LONG-TERM DEBT The Company has two types of debt reported on its condensed consolidated balance sheet: non-recourse and recourse debt. Non-recourse debt is used to fund investments and capital expenditures for the construction and acquisition of electric power plants, wind projects and distribution companies at our subsidiaries. Non-recourse debt is generally secured by the capital stock, physical assets, contracts and cash flows of the related subsidiary. The default risk is limited to the respective business and is without recourse to the Parent Company and other subsidiaries. Recourse debt is direct borrowings by the Parent Company and is used to fund development, construction or acquisitions, including serving as funding for equity investments or loans to the affiliates. The Parent Companys debt is among other things, recourse to the Parent Company and is structurally subordinated to the affiliates debt. Recourse and non-recourse debt are carried at amortized cost. The following table summarizes the carrying amount and fair value of the Companys recourse and non-recourse debt as of September30, 2009 and December31, 2008: September30, 2009 December31, 2008 Carrying Amount FairValue Carrying Amount FairValue (in millions) Non-recourse debt $ 14,148 $ 14,897 $ 12,943 $ 11,200 Recourse debt 5,512 5,573 5,148 4,388 Total debt $ 19,660 $ 20,470 $ 18,091 $ 15,588 The fair value of non-recourse debt is estimated differently depending upon the type of loan. The fair value of fixed rate loans is estimated using quoted market prices or a discounted cash flow analysis. For variable rate loans, carrying value typically approximates fair value. At December31, 2008, credit spreads were significantly above historic levels. For the U.S.Dollar, Euro and British Pound markets where the Company believed the expanded credit spread was material, fair value was estimated using a discounted cash flow analysis. The increase in credit spreads was calculated as the difference between composite fair value curves, published by pricing services for the relevant issuer credit rating, and London Inter-Bank Offered Rate (LIBOR). For all other currencies, the Company continued to assume the carrying value was equal to fair value. During the second and third quarters of 2009, credit spreads returned to a typical range for all currencies and the Company concluded that carrying value approximated fair value for all of our variable rate debt as of September30, 2009. The fair value was determined using available market information as of September30, 2009. The Company is not aware of any factors that would significantly affect the fair value amounts subsequent to September30, 2009. Non-Recourse Debt Subsidiary non-recourse debt in default or accelerated, including any temporarily waived default, is classified as current debt in the accompanying condensed consolidated balance sheets. The following table summarizes the Companys subsidiary non-recourse debt in default or accelerated as of September30, 2009:

8. CONTINGENCIES AND COMMITMENT

8. CONTINGENCIES AND COMMITMENTS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
8. CONTINGENCIES AND COMMITMENTS	8. CONTINGENCIES AND COMMITMENTS Environmental The Company periodically reviews its obligations as they relate to compliance with environmental laws, including site restoration and remediation. As of September30, 2009, the Company had recorded liabilities of $30million for projected environmental remediation costs. Due to the uncertainties associated with environmental assessment and remediation activities, future costs of compliance or remediation could be higher or lower than the amount currently accrued. Based on currently available information and analysis, the Company believes that it is reasonably possible that costs associated with such liabilities, or as yet unknown liabilities, may exceed current reserves in amounts that could be material but cannot be estimated as of September30, 2009. The Company faces certain risks and uncertainties related to numerous environmental laws and regulations, including potential greenhouse gas (GHG) legislation or regulations, and actual or potential laws and regulations pertaining to water discharges, waste management (including disposal of coal combustion by-products), and certain air emissions, such as SO2, NOx, particulate matter and mercury. Such risks and uncertainties include risks and uncertainties related to increased capital expenditures or other compliance costs which could have a material adverse effect on certain of our U.S. or international subsidiaries and our consolidated results of operations. To date, the primary regulation of GHG emissions affecting the Companys U.S. plants has been through the Regional Greenhouse Gas Initiative (RGGI). Under RGGI, ten Northeastern States have coordinated to establish rules that require reductions in CO2 emissions from power plant operations within those states through a cap-and-trade program. States in which our subsidiaries have generating facilities include Connecticut, Maryland, New York and New Jersey. Under RGGI, power plants must acquire one carbon allowance through auction or in the emission trading markets for each ton of CO2 emitted. As noted in the Companys 2008 Form 10-K and September 2009 Form 8-K, we have estimated that the costs to the Company of compliance with RGGI could be approximately $29 million per year for 2009 through 2011. The primary international agreement concerning GHG emissions is the Kyoto Protocol which became effective on February16, 2005 and requires the industrialized countries that have ratified it to significantly reduce their GHG emissions. The vast majority of the developing countries which have ratified the Kyoto Protocol have no GHG reduction requirements. Many of the countries in which the Companys subsidiaries operate have no reduction obligations under the Kyoto Protocol. In addition, of the 29 countries that the Companys subsidiaries operate in, all but two the United States (including Puerto Rico) and Kazakhstan have ratified the Kyoto Protocol. In July 2003, the European Community Directive 2003/87/EC on Greenhouse Gas Emission Allowance Trading was created, which requires member states to limit emissions of CO2 from large industrial sources within their countries. To do so, member

9. PENSION PLANS

9. PENSION PLANS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
9. PENSION PLANS	9. PENSION PLANS Total pension cost for the three and nine months ended September30, 2009 and 2008 included the following components: Three Months Ended September30, Nine Months Ended September30, 2009 2008 2009 2008 U.S. Foreign U.S. Foreign U.S. Foreign U.S. Foreign (in millions) Service cost $ 2 $ 4 $ 1 $ 3 $ 6 $ 10 $ 4 $ 10 Interest cost 8 123 8 121 25 334 24 365 Expected return on plan assets (7 ) (100 ) (8 ) (108 ) (20 ) (271 ) (25 ) (328 ) Amortization of initial net asset - (1 ) - - - (2 ) - (2 ) Amortization of prior service cost 1 - 1 - 3 - 2 - Amortization of net loss 4 2 1 - 12 5 2 2 Total pension cost $ 8 $ 28 $ 3 $ 16 $ 26 $ 76 $ 7 $ 47 Total employer contributions for the nine months ended September30, 2009 for the Companys U.S. and foreign subsidiaries were $16million and $133million, respectively. The expected remaining scheduled annual employer contributions for 2009 are $5million for U.S. subsidiaries and $21million for foreign subsidiaries. As of September30, 2009, the depreciation of the U.S.Dollar compared to the Brazilian Real (BRL) resulted in an increase of $18 million in the Companys estimate of total remaining expected 2009 employer contributions for foreign subsidiaries when translated into the U.S. Dollar. This increase is entirely due to the change in the exchange rate used to translate the BRL, the local currency, to a U.S.Dollar estimate of expected future contributions. The expected contributions, which will be made in BRL, remain unchanged.

10. COMPREHENSIVE INCOME

10. COMPREHENSIVE INCOME (LOSS)
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
10. COMPREHENSIVE INCOME (LOSS)	10. COMPREHENSIVE INCOME (LOSS) The components of comprehensive income (loss) for the three and nine months ended September30, 2009 and 2008 were as follows: ThreeMonthsEndedSeptember30, NineMonthsEndedSeptember30, 2009 2008 2009 2008 (in millions) Net income $ 440 $ 359 $ 1,472 $ 1,927 Change in fair value of available-for-sale securities, net of income tax (expense) benefit of $(4), $, $(4) and $1, respectively 6 - 6 (1 ) Foreign currency translation adjustments, net of income tax (expense) benefit of $(19), $33, $(51) and $17, respectively 221 (640 ) 554 (350 ) Derivative activity: Reclassification to earnings, net of income tax benefit of $12, $4, $38 and $14, respectively 10 - (33 ) - Change in derivative fair value, net of income tax benefit (expense) of $16, $(139), $(53) and $(45), respectively (91 ) 192 95 46 Total change in fair value of derivatives (81 ) 192 62 46 Change in unfunded pension obligation, net of income tax (expense) benefit of $, $(11), $(1) and $1, respectively - 9 2 (2 ) Other comprehensive income (loss) 146 (439 ) 624 (307 ) Comprehensive income (loss) 586 (80 ) 2,096 1,620 Less: Comprehensive (income) loss attributable to noncontrolling interests (1) (409 ) 157 (1,227 ) (461 ) Comprehensive income attributable to The AES Corporation $ 177 $ 77 $ 869 $ 1,159 (1) Reflects the income (loss) attributed to noncontrolling interests in the form of common securities and dividends on preferred stock of subsidiary. The components of accumulated other comprehensive loss as of September30, 2009 were as follows: (inmillions) Foreign currency translation adjustment $ 2,466 Unrealized derivative losses 226 Unfunded pension obligation 169 Securities available for sale (6 ) Accumulated other comprehensive loss as of September30, 2009 $ 2,855

11. SEGMENTS

11. SEGMENTS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
11. SEGMENTS	11. SEGMENTS As further described below, beginning with the Companys Form 10-Q for the quarterly period ended March31, 2009 filed with the SEC on May8, 2009, the Company modified its segment reporting in accordance with the relevant guidance. On September14, 2009, the Company filed the September 2009 Form 8-K to recast previously filed financial statements included in the Companys 2008 Form 10-K to reflect, among other things, the effect of changes to the Companys reportable segments for all periods presented therein. 2009 Segment Reporting Management Reporting Structure In early 2009, we implemented certain internal organizational changes in an effort to streamline the organization. These changes affected how results are reported internally for management review. The new management reporting structure continues to be organized along our two lines of business, but there are now three regions: (1)Latin America Africa; (2)North America and AES Wind; and (3)Europe, Middle East Asia (collectively EMEA), each managed by a regional president. The Company no longer has an alternative energy group. Instead, AES Wind Generation is managed with our North America region while climate solutions projects are now managed in the region in which they are located. Key climate solutions initiatives include investments in GHG initiatives, projects to create emissions offsets for the voluntary U.S. market and projects that produce certified emission reduction credits (CERs). Despite the management of these climate solution initiatives within the different geographic regions, these businesses do not meet the aggregation criteria to be combined into the respective regions Generation or Utilities segments and continue to be reported as part of Corporate and Other. AES Solar is accounted for using the equity method of accounting and continues to be reflected in Corporate and Other. In addition to the change in regional management structure, with the exception of AES Wind Development, the Company now manages all development efforts centrally through a development group which is reflected in Corporate and Other. Segment Reporting Structure The new segment reporting structure uses the management reporting structure as its foundation. The Companys segment reporting structure continues to be organized along our two lines of business and three regions to reflect how the Company manages the business internally. The Company applied the segment reporting accounting guidance, which provides certain quantitative thresholds and aggregation criteria, and the Company concluded that it now has six reportable segments. This new segment structure was reflected in the September 2009 Form 8-K and the Forms 10-Q for the quarterly periods ended March31 and June30, 2009. The operating segments comprising the former Europe Africa Generation and Utilities reportable segments are no longer managed together. Under the new management structure Africa is managed with the Latin America region and Europe is managed with the Asia region. Only Europe Generation was determined to be a reportable segment based on the Companys application of segment reporting accounting guidance.

12. OTHER INCOME

12. OTHER INCOME (EXPENSE)
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
12. OTHER INCOME (EXPENSE)	12. OTHER INCOME (EXPENSE) The components of other income for the three and nine months ended September30, 2009 and 2008 were as follows: ThreeMonthsEnded September30, NineMonthsEnded September30, 2009 2008 2009 2008 (in millions) Gain on sale of assets $ 5 $ 23 $ 13 $ 27 Tax credit settlement - - 129 - Management performance incentive - - 80 - Gain on extinguishment of liabilities - - 3 124 Other 30 40 54 107 Total other income $ 35 $ 63 $ 279 $ 258 Other income generally includes gains on asset sales and extinguishments of liabilities, favorable judgments on contingencies and other income from miscellaneous transactions. Other income of $35million for the three months ended September30, 2009 included the reversal of contingencies at Sonel in Cameroon and Sul in Brazil, a gain on sale of assets at Placerita, and the reversal of tax liabilities at Altai. Other income of $63 million for the three months ended September30, 2008 included $29 million of cash proceeds received by AES Southland in California for a settlement, $23 million of gains associated with a sale of land at Eletropaulo in Brazil and the sale of turbines at Itabo in the Dominican Republic. Other income of $279 million for the nine months ended September30, 2009 included a favorable court decision in which Eletropaulo had requested reimbursement for excess non-income taxes paid from 1989 to 1992. Eletropaulo received reimbursement in the form of tax credits to be applied against future tax liabilities resulting in a $129 million gain. The net impact to the Company after noncontrolling interests was $21 million. In addition, the Company recognized income of $80 million from a performance incentive bonus for management services provided to Ekibastuz and Maikuben in 2008. The management agreement was related to the sale of these businesses in Kazakhstan in May 2008; see further discussion of this transaction in Note 14 Acquisitions and Dispositions. Other income also included $9 million of insurance proceeds at Uruguaiana in Brazil and Andres in the Dominican Republic. Other income of $258 million for the nine months ended September30, 2008 included income from the above mentioned settlement and sales of assets, as well as a $117 million gain related to the extinguishment of a non-income tax liability at Eletropaulo, insurance recoveries of $14 million for damaged turbines at Uruguaiana, and $14 million of compensation received from the local government for the impairment of plant assets and cessation of the power purchase agreement associated with a settlement agreement to shut down the Hefei generation facility in China. The components of other expense for the three and nine months ended September30, 2009 and 2008 were as follows: ThreeMonthsEnded September30, NineMonthsEnded September30, 2009 2008 2009 2008 (in millions) Loss on sale and disposal of assets $ 6 $ 10 $ 20 $ 25 Loss on ex

13. DISCONTINUED OPERATIONS

13. DISCONTINUED OPERATIONS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
13. DISCONTINUED OPERATIONS	13. DISCONTINUED OPERATIONS In December 2008, the Company completed the sale of its 70% equity interest in Jiaozuo AES Wanfang Power Co., Ltd. (Jiaozuo), which was reported in the Asia Generation segment, for approximately $73 million, net of any withholding taxes. The following table summarizes the revenue, income tax expense, income from operations of the discontinued businesses and loss on the disposal of discontinued businesses for the three and nine months ended September30, 2008: ThreeMonthsEnded September30,2008 NineMonthsEnded September30,2008 (in millions) Revenue $ 26 $ 69 Income from operations of discontinued businesses $ (2 ) $ 1 Income tax benefit - - Income from operations of discontinued businesses, net of tax $ (2 ) $ 1 Loss on disposal of discontinued operations $ - $ (1 )

14. ACQUISITIONS AND DISPOSITIO

14. ACQUISITIONS AND DISPOSITIONS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
14. ACQUISITIONS AND DISPOSITIONS	14. ACQUISITIONS AND DISPOSITIONS Dispositions On May30, 2008 the Company completed the sale of two of its wholly-owned subsidiaries in Kazakhstan, AES EkibastuzLLP (Ekibastuz), a coal-fired generation plant, and Maikuben WestLLP (Maikuben), a coal mine. Total consideration received in the transaction was approximately $1.1billion plus additional potential earn-out provisions, a three-year management and operation agreement and a capital expenditures program bonus. Due to the fact that AES was to have significant continuing involvement in the management and operations of the businesses through its three-year management and operation agreement, the results of operations from Ekibastuz and Maikuben were included in income from continuing operations through the date of the disposition. Income earned as a result of the three-year management and operation agreement has been recognized as management fee income for all periods subsequent to the disposition. On March23, 2009, the Company and Kazakhmys PLC (Kazakhmys), which purchased the subsidiaries, mutually agreed to terminate the original sale agreement and the three-year management and operation agreement. In connection with the termination of these agreements, the Company and Kazakhmys entered into a new agreement (the 2009 Agreement). Under the 2009 Agreement, Kazakhmys agreed to pay the Company an $80 million performance incentive bonus in April 2009 for management services provided in 2008. This was recognized as Other Income in the Companys condensed consolidated statement of operations during the first quarter of 2009. The cash was received by the Company in April 2009. A $13 million gain was recognized related to a reversal of a tax contingency for a contractual obligation, under which the Company provided indemnification to Kazakhmys, which expired in January 2009. This was recorded as an adjustment to the gain on the sale of Ekibastuz and Maikuben during the first quarter of 2009. The 2009 agreement also provided for an additional $102 million payment, primarily related to the termination of the management agreement, payable to AES in January 2010. In May 2009, Kazakhmys provided an irrevocable standby letter of credit from a credit worthy institution to AES of $102 million to secure the final payment. The payment of the final component of the management termination agreement is not contingent upon any future events. As a result, the Company recognized an additional gain on the sale of Ekibastuz and Maikuben of approximately $98.5 million in the second quarter of 2009. The parties agreed to terminate both the Stock Purchase Agreement and the Management Agreement, and have further agreed to a mutual release of prior claims. As part of the management termination agreement, AES agreed to transition the management of the businesses to Kazakhmys over a period of 100 days from March13, 2009. The transition period ended June21, 2009 and at that time the management of Ekibastuz and Maikuben became the responsibility of Kazakhmys. The Companys involvement with the businesses remained in place for more than one year from the date of the sale; therefore, the Company has continue

15. EARNINGS PER SHARE

15. EARNINGS PER SHARE
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
15. EARNINGS PER SHARE	15. EARNINGS PER SHARE Basic and diluted earnings per share are based on the weighted average number of shares of common stock and potential common stock outstanding during the period, after giving effect to stock splits. Potential common stock, for purposes of determining diluted earnings per share, includes the effects of dilutive restricted stock units and stock options. The effect of such potential common stock is computed using the treasury stock method or the if-converted method, as applicable. The following table presents a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for income from continuing operations for the three and nine months ended September30, 2009 and 2008. In the table below income represents the numerator and weighted-average shares represent the denominator: Three Months Ended September30, 2009 2008 Income Shares $ per Share Income Shares $ per Share (in millions except per share data) BASIC EARNINGS PER SHARE Income from continuing operations attributable to The AES Corporation common stockholders $ 185 667 $ 0.28 $ 147 669 $ 0.22 EFFECT OF DILUTIVE SECURITIES Convertible securities - - - - - - Stock options - 2 - - 4 - Restricted stock units - 2 - - 2 - DILUTED EARNINGS PER SHARE $ 185 671 $ 0.28 $ 147 675 $ 0.22 Nine Months Ended September30, 2009 2008 Income Shares $ per Share Income Shares $ per Share (in millions except per share data) BASIC EARNINGS PER SHARE Income from continuing operations attributable to The AES Corporation common stockholders $ 706 666 $ 1.06 $ 1,281 671 $ 1.91 EFFECT OF DILUTIVE SECURITIES Convertible securities - - - 16 15 (0.04 ) Stock options - 2 - - 5 - Restricted stock units - 1 - - 2 - DILUTED EARNINGS PER SHARE $ 706 669 $ 1.06 $ 1,297 693 $ 1.87 There were approximately 18,380,626 and 9,221,476 additional options outstanding at September30, 2009 and 2008, respectively, that could potentially dilute basic earnings per share in the future. Those options were not included in the computation of diluted earnings per share because the exercise price exceeded the average market price during the related periods. For the three months ended September30, 2009 and 2008, and the nine months ended September30, 2009, all convertible debentures were omitted from the earnings per share calculation because they were anti-dilutive. For the nine months ended September30, 2008, all convertible debentures were included in the earnings per share calculation as their impact was dilutive. During the nine months ended September30, 2009, 2,096,389 shares of common stoc

16. ACCOUNTS RECEIVABLE SECURIT

16. ACCOUNTS RECEIVABLE SECURITIZATION
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
16. ACCOUNTS RECEIVABLE SECURITIZATION	16. ACCOUNTS RECEIVABLE SECURITIZATION IPL, a consolidated subsidiary of the Company, formed IPL Funding Corporation (IPL Funding) in 1996 as a special purpose entity to purchase, on a revolving basis, the receivables originated by IPL. IPL Funding is a qualified special purpose entity and is consolidated by IPL and IPALCO. IPL Funding entered into a sale facility with unrelated parties (the Purchasers) pursuant to which the Purchasers agree to purchase from IPL Funding, on a revolving basis, interests in the pool of receivables purchased from IPL up to the lesser of (1)an amount determined pursuant to the sale facility that takes into account certain eligibility requirements and reserves relating to the receivables, or (2)$50 million. During the second quarter of 2009, this agreement was extended through May25, 2010. Accounts receivable on the Companys condensed consolidated balance sheets are stated net of the $50million sold and include $63 million and $87 million as of September30, 2009 and December31, 2008, respectively, related to IPL Fundings accounts receivable. IPL retains servicing responsibilities for its role as a collection agent on the amounts due on the sold receivables. However, the Purchasers assume the risk of collection on the purchased receivables without recourse to IPL in the event of a loss. While no direct recourse to IPL exists, it risks loss in the event collections are not sufficient to allow for full recovery of its retained interests. No servicing asset or liability is recognized since the servicing fee paid to IPL approximates a market rate. The carrying values of the retained interests are determined by allocating the carrying value of the receivables between the assets sold and the interests retained based on relative fair value. The key assumptions in estimating fair value are credit losses, the selection of discount rates and expected receivables turnover rate. The hypothetical effect on the fair value of the retained interests assuming both a 10% and a 20% unfavorable variation in credit losses or discount rates is not material due to the short turnover of receivables and historically low credit loss history. The losses recognized on the sales of receivables were $0.3million and $0.5 million for the three months ended September30, 2009 and 2008, respectively, and $0.9million and $1.5million for the nine months ended September30, 2009 and 2008, respectively. These losses are included in other expense on the condensed consolidated statements of operations. The amount of the losses recognized depends on the previous carrying amount of the financial assets involved in the transfer, allocated between the assets sold and the interests that continue to be held by the transferor based on their relative fair value at the date of transfer, and the proceeds received. There were no proceeds from new securitizations for each of the three and nine months ended September30, 2009 and 2008. IPL Funding pays IPL annual service fees totaling $1 million, which is financed by capital contributions from IPL to IPL Funding. The following table shows the receivables sold and retained interests as of September30,

17. SUBSEQUENT EVENTS

17. SUBSEQUENT EVENTS
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
17. SUBSEQUENT EVENTS	17. SUBSEQUENT EVENTS On October7, 2009, the Parent Company voluntarily reduced all of the remaining commitments available under the senior unsecured credit facility and terminated the facility agreement. See further discussion in Note 7 Long-Term Debt Recourse Debt. Subsequent events have been evaluated through the date of issuance of this Form10-Q.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Nov. 02, 2009
Entity [Text Block]
Trading Symbol	AES
Entity Registrant Name	AES CORP
Entity Central Index Key	0000874761
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		667,582,796