The AES Corporation (AES) 10-K 26 Feb 10 2009 FY Annual report Financial data

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
CURRENT ASSETS
Cash and cash equivalents	$1,809	$881
Restricted cash	407	722
Short-term investments	1,648	1,382
Accounts receivable, net of allowance for doubtful accounts of $290 and $253, respectively	2,152	2,064
Inventory	569	547
Receivable from affiliates	24	31
Deferred income taxes-current	218	178
Prepaid expenses	162	175
Other current assets	1,558	1,102
Current assets of discontinued and held for sale businesses	240	234
Total current assets	8,787	7,316
Property, Plant and Equipment:
Land	1,111	854
Electric generation, distribution assets and other	27,462	24,002
Accumulated depreciation	(8,920)	(7,385)
Construction in progress	4,644	3,408
Property, plant and equipment, net	24,297	20,879
Other Assets:
Deferred financing costs, net of accumulated amortization of $297 and $264, respectively	384	364
Investments in and advances to affiliates	1,157	901
Debt service reserves and other deposits	595	634
Goodwill	1,299	1,421
Other intangible assets, net of accumulated amortization of $223 and $186, respectively	510	500
Deferred income taxes-noncurrent	604	567
Other	1,551	1,694
Noncurrent assets of discontinued and held for sale businesses	351	530
Total other assets	6,451	6,611
TOTAL ASSETS	39,535	34,806
CURRENT LIABILITIES
Accounts payable	1,217	1,033
Accrued interest	271	244
Accrued and other liabilities	3,017	2,640
Non-recourse debt-current	1,759	917
Recourse debt-current	214	154
Current liabilities of discontinued and held for sale businesses	143	194
Total current liabilities	6,621	5,182
LONG-TERM LIABILITIES
Non-recourse debt-noncurrent	12,642	11,625
Recourse debt-noncurrent	5,301	4,994
Deferred income taxes-noncurrent	1,090	1,115
Pension and other post-retirement liabilities	1,322	1,017
Other long-term liabilities	3,208	3,357
Long-term liabilities of discontinued and held for sale businesses	411	429
Total long-term liabilities	23,974	22,537
Contingencies and Commitments (see Notes 11 and 12)
Cumulative preferred stock of subsidiary	60	60
THE AES CORPORATION STOCKHOLDERS' EQUITY
Common stock ($0.01 par value, 1,200,000,000 shares authorized; 677,214,493 issued and 667,679,913 outstanding at December 31, 2009 and 673,478,012 issued and 662,786,745 outstanding at December 31, 2008)	7	7
Additional paid-in capital	6,868	6,832
Retained earnings (accumulated deficit)	650	(8)
Accumulated other comprehensive loss	(2,724)	(3,018)
Treasury stock, at cost (9,534,580 and 10,691,267 shares at December 31, 2009 and 2008, respectively)	(126)	(144)
Total The AES Corporation stockholders' equity	4,675	3,669
NONCONTROLLING INTERESTS	4,205	3,358
Total equity	8,880	7,027
TOTAL LIABILITIES AND EQUITY	$39,535	$34,806

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Accounts receivable, allowance for doubtful accounts	$290	$253
Deferred financing costs, accumulated amortization	297	264
Other intangible assets, accumulated amortization	$223	$186
Common stock, par value	0.01	0.01
Common stock, shares authorized	1,200,000,000	1,200,000,000
Common stock, issued	677,214,493	673,478,012
Common stock, outstanding	667,679,913	662,786,745
Treasury stock, shares	9,534,580	10,691,267

Statement Of Income

Statement Of Income (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenue:
Regulated	$7,816	$7,768	$6,863
Non-Regulated	6,303	7,590	6,151
Total revenue	14,119	15,358	13,014
Cost of Sales:
Regulated	(5,705)	(5,564)	(4,746)
Non-Regulated	(4,919)	(6,162)	(4,970)
Total cost of sales	(10,624)	(11,726)	(9,716)
Gross margin	3,495	3,632	3,298
General and administrative expenses	(345)	(371)	(378)
Interest expense	(1,515)	(1,803)	(1,755)
Interest income	348	519	489
Other expense	(111)	(161)	(253)
Other income	466	377	358
Gain on sale of investments	131	909	0
(Loss) gain on sale of subsidiary stock	0	(31)	134
Goodwill impairment	(122)	0	0
Asset impairment expense	(25)	(175)	(408)
Foreign currency transaction gains (losses) on net monetary position	33	(184)	29
Other non-operating expense	(12)	(15)	(57)
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES	2,343	2,697	1,457
Income tax expense	(599)	(771)	(676)
Net equity in earnings of affiliates	92	33	76
INCOME FROM CONTINUING OPERATIONS	1,836	1,959	857
Income from operations of discontinued businesses, net of income tax expense of $3, $7 and $32, respectively	69	67	161
Gain (loss) from disposal of discontinued businesses, net of income tax benefit of $-, $- and $8, respectively	(150)	6	(661)
NET INCOME	1,755	2,032	357
Noncontrolling interests:
Less: Income from continuing operations attributable to noncontrolling interests	(1,107)	(770)	(403)
Less: Income (loss) from discontinued operations attributable to noncontrolling interests	10	(28)	(49)
Total net income attributable to noncontrolling interests	(1,097)	(798)	(452)
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	658	1,234	(95)
BASIC EARNINGS (LOSS) PER SHARE:
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax	1.09	1.78	0.68
Discontinued operations attributable to The AES Corporation common stockholders, net of tax	-0.1	0.06	-0.82
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS	0.99	1.84	-0.14
DILUTED EARNINGS (LOSS) PER SHARE:
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax	1.09	1.76	0.67
Discontinued operations attributable to The AES Corporation common stockholders, net of tax	-0.11	0.06	-0.81
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS	0.98	1.82	-0.14
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:
Income from continuing operations, net of tax	729	1,189	454
Discontinued operations, net of tax	(71)	45	(549)
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION	$658	$1,234	($95)

Statement Of Income (Parentheti

Statement Of Income (Parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Income from operations of discontinued businesses, income tax expense	$3	$7	$32
Gain (loss) from disposal of discontinued businesses, income tax benefit	$0	$0	$8

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
OPERATING ACTIVITIES:
Net income	$1,755	$2,032	$357
Adjustments to net income:
Depreciation and amortization	1,049	1,001	942
Loss (gain) from sale of investments and impairment expense	57	(712)	333
Loss (gain) on disposal and impairment write-down-discontinued operations	150	(7)	669
Provision for deferred taxes	15	160	210
Contingencies	(122)	52	196
(Gain) loss on the extinguishment of debt	(6)	56	92
Noncontrolling interest of discontinued operations	0	(4)	(21)
Other	(99)	127	(13)
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	62	(451)	(306)
Increase in inventory	(34)	(83)	(26)
Decrease (increase) in prepaid expenses and other current assets	149	(61)	362
Increase in other assets	(177)	(467)	(134)
(Decrease) increase in accounts payable and accrued liabilities	(308)	260	(322)
Increase (decrease) in income taxes and other income tax payables, net	88	226	(140)
(Decrease) increase in other liabilities	(366)	32	155
Net cash provided by operating activities	2,213	2,161	2,354
INVESTING ACTIVITIES:
Capital expenditures	(2,520)	(2,850)	(2,425)
Acquisitions-net of cash acquired	0	(1,135)	(315)
Proceeds from the sale of businesses	2	1,328	1,136
Proceeds from the sale of assets	17	105	16
Sale of short-term investments	4,526	5,150	2,492
Purchase of short-term investments	(4,248)	(5,469)	(2,982)
Decrease (increase) in restricted cash	302	(295)	(28)
Decrease (increase) in debt service reserves and other assets	185	(100)	122
Affiliate advances and equity investments	(155)	(240)	(32)
Loan advances	0	(173)	0
Other investing	(26)	98	46
Net cash used in investing activities	(1,917)	(3,581)	(1,970)
FINANCING ACTIVITIES:
Borrowings (repayments) under the revolving credit facilities, net	11	298	(85)
Issuance of recourse debt	503	625	2,000
Issuance of non-recourse debt	1,997	2,158	2,297
Repayments of recourse debt	(154)	(1,037)	(1,315)
Repayments of non-recourse debt	(1,008)	(1,260)	(2,251)
Payments for deferred financing costs	(91)	(82)	(97)
Distributions to noncontrolling interests	(846)	(597)	(699)
Contributions from noncontrolling interests	190	410	374
Financed capital expenditures	(18)	(47)	(35)
Purchase of treasury stock	0	(143)	0
Other financing	26	37	55
Net cash provided by financing activities	610	362	244
Effect of exchange rate changes on cash	22	(96)	69
Total increase (decrease) in cash and cash equivalents	928	(1,154)	697
Cash and cash equivalents, beginning	881	2,035	1,338
Cash and cash equivalents, ending	1,809	881	2,035
SUPPLEMENTAL DISCLOSURES:
Cash payments for interest, net of amounts capitalized	1,395	1,615	1,762
Cash payments for income taxes, net of refunds	484	465	621
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Assets acquired in acquisition of subsidiary	0	1,097	434
Non-recourse debt assumed in acquisition of subsidiary	0	0	647
Liabilities extinguished due to sale of assets	0	0	134
Liabilities assumed in acquisition of subsidiary	0	49	37
Assets acquired in noncash asset exchange	111	18	0
Assets disposed of in noncash asset exchange	$0	$4	$0

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Loss	Noncontrolling Interests	Total
Beginning Balance at Dec. 31, 2006	$7	$0	$6,659	($1,093)	($2,594)	$2,867
Beginning Balance (in shares) at Dec. 31, 2006	665.1	0
Net income (loss)				(95)		452	357
Cumulative effect of adoption of uncertain tax position accounting guidance				(53)
Change in fair value of available-for-sale securities, net of income tax					3
Foreign currency translation adjustment, net of income tax					324	319
Change in unfunded pensions obligation, net of income tax					8	(11)
Change in derivative fair value, including a reclassification to earnings, net of income tax					(119)	(15)
Capital contributions from noncontrolling interests						290
Dividends declared to noncontrolling interests						(578)
Disposition of businesses						(143)
Issuance of common stock under benefit plans and exercise of stock options and warrants, net of income tax (in shares)	5.2
Issuance of common stock under benefit plans and exercise of stock options and warrants, net of income tax			85
Stock compensation			32
Ending Balance (in shares) at Dec. 31, 2007	670.3	0
Ending Balance at Dec. 31, 2007	7	0	6,776	(1,241)	(2,378)	3,181
Net income (loss)				1,234		798	2,032
Foreign currency translation adjustment, net of income tax					(560)	(492)
Change in unfunded pensions obligation, net of income tax					(49)	(100)
Change in derivative fair value, including a reclassification to earnings, net of income tax					(31)	(37)
Capital contributions from noncontrolling interests						619
Dividends declared to noncontrolling interests						(574)
Disposition of businesses						(37)
Effect of pension measurement date change				(1)
Acquisition of treasury stock (in shares)		10.7
Acquisition of treasury stock		(144)
Issuance of common stock under benefit plans and exercise of stock options and warrants, net of income tax (in shares)	3.2
Issuance of common stock under benefit plans and exercise of stock options and warrants, net of income tax			30
Stock compensation			26
Ending Balance (in shares) at Dec. 31, 2008	673.5	10.7
Ending Balance at Dec. 31, 2008	7	(144)	6,832	(8)	(3,018)	3,358	7,027
Net income (loss)				658		1,097	1,755
Change in fair value of available-for-sale securities, net of income tax					6
Foreign currency translation adjustment, net of income tax					271	471
Change in unfunded pensions obligation, net of income tax					(23)	(116)
Change in derivative fair value, including a reclassification to earnings, net of income tax					40	33
Capital contributions from noncontrolling interests						195
Dividends declared to noncontrolling interests						(825)
Disposition of businesses						(8)
Issuance of treasury stock (in shares)		-1.2
Issuance of treasury stock		18	(20)
Issuance of common stock under benefit plans and exercise of stock options and warrants, net of income tax (in shares)	3.7
Issuance of common stock under benefit plans and exercise of stock options and warrants, net of income tax			18
Stock compensation			38
Ending Balance (in shares) at Dec. 31, 2009	677.2	9.5
Ending Balance at Dec. 31, 2009	$7	($126)	$6,868	$650	($2,724)	$4,205	$8,880

GENERAL AND SUMMARY OF SIGNIFIC

GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The AES Corporation is a holding company (the Parent Company) that through its subsidiaries and affiliates, (collectively, AES or the Company) operates a geographically diversified portfolio of electricity generation and distribution businesses. PRINCIPLES OF CONSOLIDATIONThe Consolidated Financial Statements of the Company include the accounts of The AES Corporation, its subsidiaries and controlled affiliates, and variable interest entities (VIEs) of which the Company is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. A VIE is an entity (a)that has a total equity investment at risk that is not sufficient to finance its activities without additional subordinated financial support provided by any parties or (b)where the group of equity holders does not have (i)the ability to make significant decisions about the entitys activities, (ii)the obligation to absorb the entitys expected losses or (iii)the right to receive the entitys expected residual returns or (c)where the voting rights of some equity holders are not proportional to their obligations to absorb expected losses, receive expected residual returns or both, and substantially all of the entitys activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. The Company is considered the primary beneficiary of a VIE and thus consolidates the VIE when the Company absorbs a majority of expected losses of the VIE, receives a majority of expected residual returns of the VIE (unless another enterprise absorbs the majority of expected losses), or both. Where it is not clear which variable interest holder is the primary beneficiary the Company performs computations and allocations of expected losses and expected residual returns as necessary to determine the primary beneficiary. The primary beneficiary determination has not historically required significant judgments or assumptions to be made. The Company determines if it is the primary beneficiary when it becomes involved in the VIE. If the Company is the primary beneficiary, it reconsiders this decision when it sells or otherwise disposes of all or part of our variable interests to unrelated parties or if the VIE issues new variable interests to parties other than the Company or its related parties. Conversely, if the Company is not the primary beneficiary, it reconsiders this decision when it acquires additional variable interests in these entities.

Significant Accounting Policies

Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Significant Accounting Policies	USE OF ESTIMATESThe preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires the Company to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Items subject to such estimates and assumptions include the carrying value and estimated useful lives of long-lived assets; impairment of goodwill and equity method investments; valuation allowances for receivables and deferred tax assets; the recoverability of deferred regulatory assets; the valuation of certain financial instruments; the determination of noncontrolling interest using the hypothetical liquidation at book value (HLBV) method for certain wind generation partnerships; pension liabilities; environmental liabilities; and potential litigation claims and settlements. DISCONTINUED OPERATIONS AND RECLASSIFICATIONSCertain immaterial prior period amounts have been reclassified within the Consolidated Financial Statements to conform to current year presentation. Additionally, in December 2009, the Company entered into agreements to sell its entire interests in two oil-fired generation plants, Lal Pir and Pak Gen, in Pakistan and a combined gas-fired generation and water desalination facility, Barka, in Oman. In accordance with the accounting standards on the impairment or disposal of long-lived assets, these operations were considered to be held for sale as of December 31, 2009 and the prior period Consolidated Financial Statements in this Form10-K have been restated to reflect these businesses as discontinued operations, as discussed in Note21Discontinued Operations and Held for Sale Businesses. FAIR VALUEFair value, as defined in the fair value measurement accounting guidance, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, or exit price. The Company adopted the fair value measurement accounting guidance for financial assets and liabilities on January1, 2008 and for nonfinancial assets and liabilities measured on a non-recurring basis on January1, 2009. This guidance was applied prospectively and the adoption did not materially impact the Companys financial condition, results of operations, or cash flows. The Company applies the fair value measurement accounting guidance to determine the fair value of short and long term investments in marketable debt and equity securities, included in the consolidated balance sheet line items Short-term investments and Other assets (noncurrent), derivative assets, included in Other current assets and Other assets (noncurrent) and derivative liabilities, included in Accrued and other liabilities (current) and Other long-term liabilities. The fair value measurement accounting guidance requires that the Company make assumptions market participants would us

Accounting Pronouncements Issue

Accounting Pronouncements Issued But Not Yet Effective
	12 Months Ended Dec. 31, 2009 USD / shares
Accounting Pronouncements Issued But Not Yet Effective	Accounting Pronouncements Issued But Not Yet Effective The following accounting standards have been issued, but as of December31, 2009 are not yet effective for and have not been adopted by AES. ASU No.2009-17, Consolidations, Improvements to Financial Reporting by Enterprises involved with Variable Interest Entities (ASU No.2009-17) (former FAS No.167, Amendments to FASB Interpretation No.46(R)) In June 2009, the Financial Accounting Standards Board (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 ASU No.2009-17 will 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; see further discussion below. It may also require the Company to deconsolidate 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. The new accounting guidance for VIEs is effective for fiscal years beginning after November15, 2009, or January1, 2010 for AES. Early adoption is prohibited. Based on its review to date, the Company has determined that an entity that had not been previously consolidated will be required to be consolidated upon the adoption of the new standard. Cartagena, the Companys generation business in Spain, is currently accounted for under the equity method of accounting and is expected to be consolidated upon the adoption of the new VIE accounting guidance. Total assets and revenue for Cartagena as of and for the year ended December31, 2009 were $929 million and $147 million, respectively. The Company is still in the process of quantifying the expected impact of the cumulative adjustment to be recorded upon adoption of the new VIE guidance. AES is in the process of completing its review of the potential impact from the adoption of this guidance and may identify additional entities to consolidate or deconsolidate upon adoption in the first quarter of 2010.

INVENTORY

INVENTORY
	12 Months Ended Dec. 31, 2009 USD / shares
INVENTORY	2. INVENTORY As of December31, 2009, 84% of the inventory was determined using average cost, 15% was determined using the FIFO method and the remaining were valued using the specific identification method. The following table summarizes our inventory balances as of December31, 2009 and 2008: December31, 2009 2008 (in millions) Coal, fuel oil and other raw materials $ 293 $ 306 Spare parts and supplies 276 241 Total $ 569 $ 547

PROPERTY, PLANT & EQUIPMENT

PROPERTY, PLANT & EQUIPMENT
	12 Months Ended Dec. 31, 2009 USD / shares
PROPERTY, PLANT & EQUIPMENT	3. PROPERTY, PLANT EQUIPMENT The following table summarizes the components of the electric generation and distribution assets and other property, plant and equipment with their estimated useful lives: Estimated UsefulLife December31, 2009 2008 (in millions) Electric generation and distribution facilities 3-50yrs. $ 24,116 $ 21,353 Other buildings 3-50 yrs. 1,926 1,652 Furniture, fixtures and equipment 3-30 yrs. 687 528 Other 2-50 yrs. 733 469 Total electric generation and distribution assets and other 27,462 24,002 Accumulated depreciation (8,920 ) (7,385 ) Net electric generation and distribution assets and other(1) $ 18,542 $ 16,617 (1) Net electric generation and distribution assets and other related to Lal Pir, Pak Gen and Barka of $346million and $522 million as of December31, 2009 and 2008, respectively, are excluded from the table above and are included in the noncurrent assets of held for sale and discontinued businesses. The following table summarizes interest capitalized during development and construction on qualifying assets for the years ended December31, 2009, 2008 and 2007: December31, 2009 2008 2007 (in millions) Interest capitalized during development and construction $ 187 $ 176 $ 86 Recoveries of liquidated damages from construction delays and government subsidies are reflected as a reduction in the related projects construction costs. Approximately $13billion of property, plant and equipment, net of accumulated depreciation, was mortgaged, pledged or subject to liens as of December31, 2009. Depreciation expense, including the amortization of assets recorded under capital leases, was $1,005million, $953million and $880million for the years ended December31, 2009, 2008 and 2007, respectively. Net electric generation and distribution assets and other include unamortized internal use software costs of $182million and $104million as of December31, 2009 and 2008, respectively. Amortization expense associated with software costs was $48million, $41million and $20million for the years ended December31, 2009, 2008 and 2007. The following table summarizes regulated and non-regulated generation and distribution facilities property, plant and equipment and accumulated depreciation as of December31, 2009 and 2008: December31, 2009 2008 (in millions) Regulated assets $ 11,744 $ 9,760 Regulated accumulated depreciation (4,830 ) (3,902 ) Regulated generation, distribution assets, and other, net 6,914 5,858 Non-regulated assets 15,718 14,242 Non-regulated accumulated depreciation (4,090 ) (3,483 ) Non-regulated generation, distribution assets, and other, net 11,628 10,759 Total generation and distribution assets, and other, net $ 18,542 $ 16,617

INVESTMENTS IN MARKETABLE SECUR

INVESTMENTS IN MARKETABLE SECURITIES
	12 Months Ended Dec. 31, 2009 USD / shares
INVESTMENTS IN MARKETABLE SECURITIES	4. INVESTMENTS IN MARKETABLE SECURITIES The following table sets forth the Companys investments in marketable debt and equity securities classified as trading and available-for-sale as of December31, 2009 and 2008 by type of investment 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. December31, 2009 2008 Level1 Level 2 Level3 Total Total (in millions) AVAILABLE-FOR-SALE:(1) Debt securities: Unsecured debentures(2) $ $ 667 $ $ 667 $ 674 Certificates of deposit(2) 652 652 493 Government debt securities 152 152 32 Other debt securities 42 42 42 Subtotal 1,471 42 1,513 1,241 Equity securities: Mutual funds 117 117 Common stock(3) 16 16 1 Money market funds 30 30 21 Subtotal 133 30 163 22 Total available-for-sale $ 133 $ 1,501 $ 42 $ 1,676 $ 1,263 TRADING: Equity securities: Mutual funds 7 7 Total trading 7 7 TOTAL $ 140 $ 1,501 $ 42 $ 1,683 $ 1,263 Held-to-maturitysecurities(4) 8 150 Totalmarketablesecurities $ 1,691 $ 1,413 (1) Amortized cost approximated fair value at December31, 2009 and 2008, with the exception of the common stock discussed below. (2) Unsecured debentures are instruments similar to certificates of deposit that are held primarily by our subsidiaries in Brazil. The unsecured debentures and certificates of deposit included here do not qualify as cash equivalents and meet the definition of a security under the relevant guidance and are therefore classified as available-for-sale securities. (3) During the year ended December31, 2009, an investment of the Company with a cost basis of $5 million, previously accounted for under the cost method, underwent an initial public offering (IPO). Subsequent to the IPO, the Companys investment in common stock became marketable. Beginning in the third quarter, the common stock was accounted for as available-for-sale and was accordingly adjusted to fair v

DERIVATIVE INSTRUMENTS AND HEDG

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
	12 Months Ended Dec. 31, 2009 USD / shares
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. The Company will apply hedge accounting for all contracts so long as they are eligible under the accounting standards for derivatives and hedging. 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 2027, and are typically designated as cash flow hedges. 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 December31, 2009 regardless of whether the derivative instruments are in qualifying cash flow hedging relationships: Interest Rate Derivatives December31, 2009 Current Maximum(1) Weighted Average Remaining Term(1) %ofDebt Currently Hedged byIndex(2) Derivative Notional Derivative Notional Translated to USD Derivative Notional Derivative Notional Translated to USD (in millions) (in years) Libor (U.S. Dollar) 2,853 $ 2,853 3,245 $ 3,245 10 73 % Euribor (Euro) 804 1,151 820 1,175 12 78 % Libor (British Pound Sterling) 49 79 49 79 10 66 % Treasury Bills (U.S. Dollar) 70 70 70 70 <1 100 % City of Petersburg, IN Pollution Control Refunding Revenue Bonds Adjustable Rate (U.S. Dollar) 40 40 40 40 13 100 % Bubor (Hungarian Forint) 1,841 10 1,841 10 <1 70 % (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 December31, 2009 and the maturity of the derivative instrument, which includes forward starting derivative instruments. The weighted average remaining term represents the remaining tenor 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 has no interest rate derivatives. Cross currency swaps are utilized in certain instances to manage the risk related to fluctuations in both interest rates and certain foreign curre

FAIR VALUE

FAIR VALUE
	12 Months Ended Dec. 31, 2009 USD / shares
FAIR VALUE	6. FAIR VALUE The fair value of current financial assets and liabilities, debt service reserves and other deposits is estimated to be equal to their reported carrying amounts. The fair value of non-recourse debt is estimated differently based upon the type of loan. For variable rate loans, carrying value approximates fair value. For fixed rate loans, the fair value is estimated using quoted market prices or discounted cash flow analyses. See Note10Debt for additional information on the fair value and carrying value of debt. The fair value of interest rate swap, cap and floor agreements, foreign currency forwards, swaps and options, and energy derivatives is the estimated net amount that the Company would receive or pay to sell or transfer agreements as of the balance sheet date. The estimated fair values of the Companys assets and liabilities have been determined using available market information. By virtue of these amounts being estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. 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 recognized material goodwill impairment during the year ended December31, 2009 as a result of the annual goodwill impairment evaluation as of October1, but this impairment was not a result of the adoption of the new fair value measurement provisions. This is further described in Note 8Goodwill and Other Intangible Assets. 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-K. The following table summarizes the carrying and fair value of certain of the Companys financial assets and liabilities as of December31, 2009 and 2008: December31, 2009 2008 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Assets Marketable securities(1) $ 1,691 $ 1,691 $ 1,413 $ 1,413 Derivatives(2) 141 141 350 350 Total assets $ 1,832 $ 1,832 $ 1,763 $ 1,763 Liabilities Debt(3) $ 19,916 $ 20,387 $ 17,690 $ 15,249 Derivatives(2) 350 350 504 504 Total liabilities $ 20,266 $ 20,737 $ 18,194 $ 15,753 (1) See Note4Investments in Marketable Securities for additional information regarding the classification of marketable securities in the Fair Value Hierarchy. (2) See Note5Derivative Instruments and Hedging Activities for additional information regarding the fair value of derivati

INVESTMENTS IN AND ADVANCES TO

INVESTMENTS IN AND ADVANCES TO AFFILIATES
	12 Months Ended Dec. 31, 2009 USD / shares
INVESTMENTS IN AND ADVANCES TO AFFILIATES	7. INVESTMENTS IN AND ADVANCES TO AFFILIATES The following table summarizes the relevant effective equity ownership interest and carrying values for the Companys investments accounted for under the equity method as of December31, 2009 and 2008. December31, Affiliate Country 2009 2008 2009 2008 Carrying Value OwnershipInterest% Barry(1) UnitedKingdom $ $ 100 100 Cartagena(1) Spain 71 71 CEMIG Brazil 10 10 AES Solar Ltd. United States 224 126 50 50 Chigen affiliates China 182 179 27 27 Elsta Netherlands 204 138 50 50 Guacolda Chile 131 81 35 35 Huanghua China 52 36 49 49 IC Ictas Energy Group Turkey 104 94 51 51 InnoVent(1) France 30 37 40 40 OPGC India 208 192 49 49 Trinidad Generation Unlimited(1) Trinidad 16 16 10 60 Other affiliates United States 6 2 Total investments in and advances to affiliates $ 1,157 $ 901 (1) Represent VIEs in which we hold a significant variable interest. AES Barry Ltd.The Company holds a 100% ownership interest in AES BarryLtd. (Barry), a dormant entity in the United Kingdom that disposed of its generation and other operating assets. As a result of a debt agreement, no material financial or operating decisions can be made without the banks consent, and the Company does not control Barry. As of December31, 2009 and 2008 other long-term liabilities included $54million and $49million, respectively, related to this debt agreement. Cartagena EnergiaThe Company owns 71% of Cartagena Energia (Cartagena) a 1,219MW power plant in Cartagena, Spain completed in November 2007. The Companys initial investment in Cartagena was approximately $29million. Cartagena was determined to be a VIE and the Company is not the primary beneficiary due to the fact that the sole customer of the plant absorbs the majority of the commodity price risk. In December2008, the Companys basis in its investment in Cartagena was reduced to zero and the equity method of accounting was 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 generation plant. Cartagena used the settlement proceeds to repay a portion of the participative loans outstanding to its investors including AES. In June 2009, the Company received its proportionate share of the settlement, $35 million, which was recognized as net equity in earnings of affiliates 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. As a result of the new accounting guidance issued in the fourth quarter of 2009 regarding VIEs, the Company believes at this time that upon the January1, 2010 effective date, Cartagena will no longer be accounted

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS
	12 Months Ended Dec. 31, 2009 USD / shares
GOODWILL AND OTHER INTANGIBLE ASSETS	8. GOODWILL AND OTHER INTANGIBLE ASSETS The accounting guidance for goodwill requires that goodwill be evaluated for impairment at the reporting unit level. A reporting unit is an operating segment, as defined by the segment reporting accounting guidance, or a component or combination of components within an operating segment with similar economic characteristics that are one level below an operating segment. Generally, each AES business constitutes a reporting unit. In the event that more than one reporting unit is acquired in a single acquisition, goodwill is assigned to the reporting units that benefit from the goodwill on a relative fair value basis. The following table summarizes the changes in the carrying amount of goodwill, by segment as of December31, 2009, 2008 and 2007. There was no goodwill associated with our North AmericaUtilities segment during the years ended December31, 2009, 2008 and 2007. Latin America - Generation Latin America- Utilities North America - Generation Europe - Generation Asia - Generation Corporate and Other Total Balance as of December31, 2007 Goodwill $ 929 $ 140 $ 130 $ 167 $ 24 $ 98 $ 1,488 Accumulated impairment losses (24 ) (7 ) (20 ) (19 ) (2 ) (72 ) Net balance 905 133 110 148 24 96 1,416 Goodwill acquired during the year 65 (1) 6 71 Goodwill associated with the sale of a business (4 ) (4 ) Foreign currency translation and other (3 ) (9 ) (40 ) (7 ) (3 ) (62 ) Balance as of December31, 2008 Goodwill 926 140 121 127 78 101 1,493 Accumulated impairment losses (24 ) (7 ) (20 ) (19 ) (2 ) (72 ) Net balance 902 133 101 108 78 99 1,421 Impairment losses (118 ) (4 ) (122 ) Goodwill associated with the sale of a business (2 ) (2 ) Foreign currency translation and other (10 ) 10 2 2 Balance as of December31, 2009 Goodwill 926 140 111 137 78 101 1,493 Accumulated impairment losses (24 ) (7 ) (20 ) (137 ) (6 ) (194 ) Net balance $ 902 $ 133 $ 91 $ $ 78 $ 95 $ 1,299 (1) Represents goodwill acquired for the period of $65million related to the acquisition of Masinloc. The Company conducts its annual goodwill impairment analysis as of October1st each year. The fair value of the reporti

REGULATORY ASSETS & LIABILITIES

REGULATORY ASSETS & LIABILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
REGULATORY ASSETS & LIABILITIES	9. REGULATORY ASSETS LIABILITIES The Company has recorded regulatory assets and liabilities that it expects to pass through to its customers in accordance with, and subject to, regulatory provisions as follows: December31, 2009 2008 RecoveryPeriod (in millions) REGULATORY ASSETS Current regulatory assets: Brazil tariff recoveries(2) Energy purchases $ 144 $ 76 Overtariffresetperiod Transmission costs, regulatory fees and other 120 121 Over tariff reset period El Salvador tariff recoveries(3) 125 136 Over tariff reset period Other(4) 6 18 Various Total current regulatory assets 395 351 Noncurrent regulatory assets: Defined benefit pension obligations(1)(5) 217 281 Various Income taxes recoverable from customers(1)(6) 70 75 Various Brazil tariff recoveries(2) Energy purchases 22 31 Over tariff reset period Transmission costs, regulatory fees and other 30 48 Over tariff reset period Other(4) 111 106 Various Total noncurrent regulatory assets 450 541 TOTAL REGULATORY ASSETS $ 845 $ 892 REGULATORY LIABILITIES Current regulatory liabilities: Efficiency program costs(7) $ 133 $ 116 Over tariff reset period Brazil tariff recoveries(2) Energy purchases 61 31 Over tariff reset period Transmission costs, regulatory fees and other 67 44 Over tariff reset period Other(4) 35 14 Various Total current regulatory liabilities 296 205 Noncurrent regulatory liabilities: Asset retirement obligations(8) 482 459 Overbooklifeofassets Brazil special obligations(9) 402 291 To be determined Brazil tariff recoveries(2) Energy purchases 42 8 Over tariff reset period Transmission costs, regulatory fees and other 35 2 Over tariff reset period Unamortized investment tax credit(1)(6) 9 10 Various Efficiency program costs(7) 4 Over tariff reset period Other(4) 8 9 Various Total noncurrent regulatory liabilities 982 779 TOTAL REGULATORY LIABILITIES $ 1,278 $ 984 (1) Past expenditures on which the Company does not earn a rate of return. (2) Recoverable per National Electric Energy Agency (ANEEL) regulations through the Annual Tariff Adjustment (IRT). These costs are generally non-controllable costs and primarily consist of purchased electricity, energy transmission costs and sector costs that are considered volatile. These costs are recovered in 24installments through the annual IRTprocess and are amortized over the tariff reset period. (3) Deferred fuel costs incurred by our ElSalvador subsidiaries associated with purchase of energy

DEBT

DEBT
	12 Months Ended Dec. 31, 2009 USD / shares
DEBT	10. DEBT The Company has two types of debt reported on its balance sheet: non-recourse and recourse debt. Non-recourse debt is used to fund investments and capital expenditures for the construction and acquisition of our 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 acquisition and functions as equity investments or loans to the affiliates. This debt is with recourse to the Parent Company and is structurally subordinated to the affiliates non-recourse debt. Recourse and non-recourse debt is carried at amortized cost. The following table summarizes the carrying amount and estimated fair values of the Companys recourse and non-recourse debt as of December31, 2009 and 2008: December31, 2009 2008 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Non-recourse debt $ 14,401 $ 14,784 $ 12,542 $ 10,861 Recourse debt 5,515 5,603 5,148 4,388 Total debt $ 19,916 $ 20,387 $ 17,690 $ 15,249 The fair value of non-recourse debt, excluding capital leases, is estimated differently based upon the type of loan. The fair value of fixed rate loans is estimated using quoted market prices or a discounted cash flow analysis. In the discounted cash flow analysis, the discount rate is based on the credit rating of the individual debt instruments if available, or the credit rating of The AES Corporation. For subsidiaries located in countries with credit ratings lower than The AES Corporation, we used the appropriate country specific yield curve. 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 half 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 December31, 2009. The estimated fair value was determined using available market information as of December31, 2009 and 2008. The Company is not aware of any factors that would significantly affect the estimated fair value amounts since December31, 2009. NON-RECOURSE DEBT The following ta

COMMITMENTS

COMMITMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
COMMITMENTS	11. COMMITMENTS OPERATING LEASESAs of December31, 2009, the Company was obligated under long-term non-cancelable operating leases, primarily for certain transmission lines, office rental and site leases. Rental expense for lease commitments under these operating leases for the years ended December31, 2009, 2008 and 2007 was $63million, $74million and $64million, respectively. The table below sets forth the future minimum lease commitments under these operating leases as of December31, 2009 for 2010 through 2014 and thereafter: December31, Future Commitments for Operating Leases (in millions) 2010 $ 55 2011 40 2012 40 2013 40 2014 38 Thereafter 264 Total $ 477 CAPITAL LEASESSeveral AES subsidiaries lease operating and office equipment and vehicles that are considered capital lease transactions. These capital leases are recognized in Property, Plant and Equipment within Electric generation and distribution assets and primarily relate to transmission lines at our subsidiaries in Brazil. The gross value of the leased assets as of December31, 2009 and 2008 was $106million and $95million, respectively. The following table summarizes the future minimum lease payments under capital leases together with the present value of the net minimum lease payments as of December31, 2009 for 2010 through 2014 and thereafter: December31, FutureMinimum Lease Payments (in millions) 2010 $ 14 2011 13 2012 12 2013 10 2014 9 Thereafter 146 Total $ 204 Less: Imputed interest 129 Present value of total minimum lease payments $ 75 SALE/LEASEBACKIn May1999, a subsidiary of the Company acquired six electric generating stations from NewYork State Electric and Gas (NYSEG). Concurrently, the subsidiary sold two of the plants to an unrelated third party for $666million and simultaneously entered into a leasing arrangement with the unrelated party. This transaction has been accounted for as a sale/leaseback with operating lease treatment. In May2007, the subsidiary purchased a portion of the lessors interest in a trust estate that holds the leased plants. Future minimum lease commitments under the lease agreement are reduced by the subsidiarys interest in the plants. Rental expense was $34million, $34million and $42million for the years ended December31, 2009, 2008 and 2007, respectively. The following table summarizes the future minimum lease commitments under the sale/leaseback arrangement as of December31, 2009 for 2010 through 2014 and thereafter: December31, FutureMinimum Lease Commitments (in millions) 2010 $ 41 2011 43 2012 44 2013 46 2014 47 Thereafter 483 Total $ 704 CONTRACTSOperating subsidiaries of the Company have entered into contracts for the purchase of electricity from third parties that primarily include energy auction agreements at our Brazil subsidiaries with extended terms from 2010 through 2042. Purchases in the years ended December

CONTINGENCIES

CONTINGENCIES
	12 Months Ended Dec. 31, 2009 USD / shares
CONTINGENCIES	12. CONTINGENCIES ENVIRONMENTAL The Company reviews its obligations as they relate to compliance with environmental laws, including site restoration and remediation. As of December31, 2009, the Company has recognized liabilities of $28million 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 December31, 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 Item1.Business-Regulatory Matters-Environmental and Land Use Regulations of this Form 10-K. 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 in which Companys subsidiaries operate in, all but onethe United States (including Puerto Rico)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 states are required to implement EC-approved national allocation plans (NAPs). The European Union has announced that it intends to keep the European Un

BENEFIT PLANS

BENEFIT PLANS
	12 Months Ended Dec. 31, 2009 USD / shares
BENEFIT PLANS	13. BENEFIT PLANS DEFINED CONTRIBUTION PLANThe Company sponsors one defined contribution plan, qualified under section401 of the Internal Revenue Code. All U.S. employees of the Company are eligible to participate in the plan except for those employees who are not covered by their collective bargaining agreement. The plan provides for Company matching contributions in Company stock, other Company contributions at the discretion of the Compensation Committee of the Board of Directors in Company stock and discretionary tax deferred contributions from the participants. Participants are fully vested in their own contributions and the Companys matching contributions. Participants vest in other Company contributions ratably over a five-year period ending on the fifth anniversary of their hire date. Company contributions to the plans were approximately $22million, $21million, and $22million for the years ended December31, 2009, 2008, and 2007, respectively. DEFINED BENEFIT PLANSCertain of the Companys subsidiaries have defined benefit pension plans covering substantially all of their respective employees. Pension benefits are based on years of credited service, age of the participant and average earnings. Of the 25 defined benefit plans, three are at U.S.subsidiaries and the remaining plans are at foreign subsidiaries. AES adopted the measurement date provisions of the pension accounting guidance, which require a year-end measurement date of plan assets and obligations for all defined benefit plans, for the fiscal year ended December31, 2008 and accordingly, recognized a cumulative adjustment of $1million to retained earnings as of December31, 2008. The following table reconciles the Companys funded status, both domestic and foreign, as of December31, 2009 and 2008: December31, 2009 2008 U.S. Foreign U.S. Foreign (inmillions) CHANGE IN PROJECTED BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 557 $ 3,498 $ 513 $ 4,358 Adjustments due to adoption of measurement date provisions 3 1 Service cost 7 13 6 11 Interest cost 34 459 32 453 Employee contributions 19 20 Plan amendments 10 Plan settlements (1 ) Benefits paid (30 ) (366 ) (32 ) (377 ) Actuarial loss (gain) 11 304 26 138 Effect of foreign currency exchange rate change 1,211 (1,106 ) Benefit obligation as of December31 $ 579 $ 5,138 $ 557 $ 3,498 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year 327 2,752 430 3,587 Actual return on plan assets 74 489 (129 ) 268 Employer contributions 21 188 59 138 Employee contributions 19 20 Plan settlements (1 ) Benefits paid (30 ) (

EQUITY

EQUITY
	12 Months Ended Dec. 31, 2009 USD / shares
EQUITY	14. EQUITY STOCK PURCHASE AGREEMENT On November6, 2009, the Company entered into a stock purchase agreement (the Stock Purchase Agreement) with Terrific Investment Corporation (Investor), a wholly-owned subsidiary of China Investment Corporation (CIC), pursuant to which the Company agreed to issue and sell to Investor 125,468,788 shares of the Companys common stock for $12.60 per share, for an aggregate purchase price of $1.58 billion. Following the issuance of the shares of common stock, Investors ownership in the Companys common stock will be approximately 15% percent of the Companys total outstanding shares of common stock on a fully diluted basis. The closing of the sale of the shares of common stock of the Company to Investor is subject to certain closing conditions including, the receipt of various regulatory approvals and no occurrence of a material adverse change prior to closing with respect to the Company. The transaction is expected to close in the first quarter of 2010. At the closing of the transaction, the Company and Investor would enter into a stockholder agreement (the Stockholder Agreement). Under the Stockholder Agreement, as long as Investor holds more than 5% of the outstanding shares of common stock of the Company, Investor will have the right to nominate one representative for election to the Board of Directors of the Company. In addition, until such time as Investor holds 5% or less of the outstanding shares of common stock, Investor has agreed to vote its shares in accordance with the recommendation of the Company on any matters submitted to a vote of the stockholders of the Company relating to the election of directors and compensation matters. Otherwise, Investor may vote such shares in its discretion. Further, under the Stockholder Agreement, Investor will be subject to a customary standstill restriction which generally prohibits Investor from purchasing additional securities of the Company beyond the 15% fully diluted ownership level acquired by it under the Stock Purchase Agreement. In addition, Investor has agreed to a lock-up restriction such that Investor would not sell its shares for a period of 12 months following the closing, subject to certain exceptions. The standstill and lock-up restrictions also terminate at such time as Investor holds 5% or less of the outstanding shares of common stock. Investor will have certain registration rights and preemptive rights under the Stockholder Agreement with respect to its shares of common stock of the Company. STOCK REPURCHASE On August7, 2008, the Companys Board of Directors approved a share repurchase plan for up to $400million of its outstanding common stock. The Board authorization permitted the Company to repurchase shares over a six month period ending February7, 2009. Shares of common stock repurchased under this plan through December31, 2008 totaled 10,691,267 at a total cost of $143million plus commissions of $0.3million (average of $13.41 per share including commissions). The shares of stock repurchased have been classified as treasury stock and accounted for using the cost method. A total of 9,534,580 and 10,691,267 shares were held i

SEGMENT AND GEOGRAPHIC INFORMAT

SEGMENT AND GEOGRAPHIC INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
SEGMENT AND GEOGRAPHIC INFORMATION	15. SEGMENT AND GEOGRAPHIC INFORMATION The management reporting structure is organized along our two lines of business (Generation and Utilities) and three regions: (1)Latin America Africa; (2)North America; and (3)Europe, Middle East Asia (collectively EMEA), each managed by a regional president. The segment reporting structure uses the Companys management reporting structure as its foundation 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 it has six reportable segments which include: Latin AmericaGeneration; Latin AmericaUtilities; North AmericaGeneration; North AmericaUtilities; EuropeGeneration; AsiaGeneration. Corporate and OtherThe Companys Europe Utilities, Africa Utilities and Africa Generation operating segments are reported within Corporate and Other because they do not meet the criteria to allow for aggregation with another operating segment or the quantitative thresholds that would require separate disclosure under segment reporting accounting guidance. Additionally, AES Wind Generation is managed within our North America region and the Companys climate solutions projects (Climate Solutions) are managed within 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 AES Wind Generation by the North America region and Climate Solutions within the regions, AES Wind Generation and Climate Solutions are reported within Corporate and Other because they do not meet the aggregation criteria to be combined into the respective regions Generation or Utilities segments or the quantitative thresholds that would require separate disclosure under segment reporting accounting guidance. AES Solar and certain other unconsolidated businesses are accounted for using the equity method of accounting; therefore their operating results are included in Net Equity in Earnings of Affiliates on the face of the consolidated statements of operations, not in revenue or gross margin. None of these operating segments are currently material to our presentation of reportable segments, individually or in the aggregate. Corporate and Other also includes costs related to business development efforts, which with certain exceptions, the Company manages centrally through a development group; corporate overhead costs which are not directly associated with the operations of our six reportable segments; and other intercompany charges such as self-insurance premiums which are fully eliminated in consolidation. The Company uses Adjusted Gross Margin, a non-GAAP measure, to evaluate the performance of its segments. Adjusted Gross Margin is defined by the Company as: Gross Margin plus depreciation and amortization less general and administrative expenses. In 2009, the Company changed the segment performance

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION
	12 Months Ended Dec. 31, 2009 USD / shares
SHARE-BASED COMPENSATION	16. SHARE-BASED COMPENSATION STOCK OPTIONSAES grants options to purchase shares of common stock under stock option plans. Under the terms of the plans, the Company may issue options to purchase shares of the Companys common stock at a price equal to 100% of the market price at the date the option is granted. Stock options are generally granted based upon a percentage of an employees base salary. Stock options issued under these plans in 2009, 2008 and 2007 have a three-year vesting schedule and vest in one-third increments over the three-year period. The stock options have a contractual term of ten years. At December31, 2009, approximately 16million shares were remaining for award under the plans. In all circumstances, stock options granted by AES do not entitle the holder the right, or obligate AES, to settle the stock option in cash or other assets of AES. The weighted average fair value of each option grant has been estimated, as of the grant date, using the Black-Scholes option-pricing model with the following weighted average assumptions: December31, 2009 2008 2007 Expected volatility 66 % 37 % 29 % Expected annual dividend yield % % % Expected option term (years) 6 6 6 Risk-free interest rate 2.01 % 3.04 % 4.67 % The Company exclusively relies on implied volatility as the expected volatility to determine the fair value using the Black-Scholes option-pricing model. The implied volatility may be exclusively relied upon due to the following factors: The Company utilizes a valuation model that is based on a constant volatility assumption to value its employee share options; The implied volatility is derived from options to purchase AES common stock that are actively traded; The market prices of both the traded options and the underlying share are measured at a similar point in time to each other and on a date reasonably close to the grant date of the employee share options; The traded options have exercise prices that are both near-the-money and close to the exercise price of the employee share options; and The remaining maturities of the traded options on which the estimate is based are at least one year. Pursuant to share-based compensation accounting guidance, the Company used a simplified method to determine the expected term based on the average of the original contractual term and the pro rata vesting period. This simplified method was used for stock options granted during the years ended December31, 2009, 2008, and 2007. This is appropriate given a lack of relevant stock option exercise data. This simplified method may be used as the Companys stock options have the following characteristics: The stock options are granted at-the-money; Exercisability is conditional only on performing service through the vesting date; If an employee terminates service prior to vesting, the employee forfeits the stock options; If an employee terminates service after vesting, the employee has a limited time to exercise the stock option; and

SUBSIDIARY STOCK

SUBSIDIARY STOCK
	12 Months Ended Dec. 31, 2009 USD / shares
SUBSIDIARY STOCK	17. SUBSIDIARY STOCK The Company held $60 million of cumulative preferred stock of a subsidiary at December31, 2009 and 2008. This represented five series of preferred stock of IPL, the Companys integrated utility in Indiana. The total annual dividend requirements were approximately $3million at December31, 2009 and 2008. Certain series of the preferred stock were redeemable solely at the option of the issuer at prices between $100 and $118 per share. Holders of the preferred stock are entitled to elect a majority of IPLs board of directors if IPL has not paid dividends to its preferred stockholders for four full quarters. Based on the preferred stockholders ability to elect a majority of IPLs board of directors in this circumstance, the redemption of the preferred shares is considered to be not solely within the control of the issuer and the preferred stock is considered temporary equity and presented in the mezzanine level of the consolidated balance sheets in accordance with the relevant accounting guidance for non-controlling interests and redeemable securities. In February 2009, in connection with a preemptive rights period associated with a share issuance (capital increase) at AES Gener, Inversiones Cachagua Limitada (Cachagua), a wholly-owned subsidiary of the Company, paid $175 million to AES Gener to maintain its current ownership percentage of approximately 70.6%. On November6, 2008, Cachagua sold a 9.6% ownership interest in AESGener in a private transaction for $174.9million. The sale reduced the Companys ownership percentage of AESGener from 80.2% to 70.6%. The Company recognized a pre-tax loss of $30.8million, net of $3.6million of related fees, from this transaction in the fourth quarter of 2008. In May and October 2007, Cachagua sold a 0.9% and 10.2% ownership interest, respectively, in AES Gener for $330.9million. The sale reduced the Companys ownership percentage of AES Gener to 80.2%. The Company recorded a pre-tax gain on the sale of $134.2million, including $8.3million of related fees.

OTHER INCOME AND EXPENSE

OTHER INCOME AND EXPENSE
	12 Months Ended Dec. 31, 2009 USD / shares
OTHER INCOME AND EXPENSE	18. OTHER INCOME AND EXPENSE The components of other income are summarized as follows: YearsEndedDecember31, 2009 2008 2007 (inmillions) Extinguishment of tax liabilities $ 165 $ $ Tax credit settlement 129 Management performance incentive 80 Gain on extinguishment of liabilities 3 199 22 Insurance proceeds 40 18 Gain on sale of assets 14 34 24 Contract settlement gain 135 Gross receipts tax recovery 93 Other 75 104 66 Total other income $ 466 $ 377 $ 358 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 $466million for the year ended December31, 2009 included $165 million from the reduction in interest and penalties associated with federal tax debts at Eletropaulo and Sul as a result of the Programa de Recuperacao Fiscal (Refis) program and a $129 million gain related to a favorable court decision enabling Eletropaulo to receive reimbursement of excess non-income taxes paid from 1989 to 1992 in the form of tax credits to be applied against future tax liabilities. The net impact to the Company after income taxes and noncontrolling interests for these items was $44 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 22Acquisitions and Dispositions. Other income of $377million for the year ended December31, 2008 included gains on the extinguishment of a gross receipts tax liability and a legal contingency at Eletropaulo of $117million and $75million, respectively, $32million of cash proceeds related to a favorable legal settlement at Southland in California, $29million of insurance recoveries for damaged turbines at Uruguaiana, $23million of gains associated with a sale of land at Eletropaulo and sales of turbines at Itabo, and compensation of $18million for the impairment associated with the settlement agreement to shut down Hefei. Other income of $358million for the year ended December31, 2007 included a $135 million contract settlement gain at Eastern Energy in New York, a $93 million gross receipts tax recovery at Eletropaulo and Tiete, and favorable legal settlements at Eletropaulo and Red Oak in New Jersey. The components of other expense are summarized as follows: YearsEndedDecember31, 2009 2008 2007 (inmillions) Loss on extinguishment of liabilities $ $ 70 $ 106 Loss on sale and disposal of assets 42 34 79 Other 69 57 68 Total other expense $ 111 $ 161 $ 253 Other expense generally includes losses on asset sales, losses on extinguishment of debt, le

ASSET IMPAIRMENT EXPENSE

ASSET IMPAIRMENT EXPENSE
	12 Months Ended Dec. 31, 2009 USD / shares
ASSET IMPAIRMENT EXPENSE	19. ASSET IMPAIRMENT EXPENSE Asset impairment expense for the years ended December31, 2009, 2008 and 2007 consisted of: 2009 (inmillions) Piabanha $ 11 Other 14 Total $ 25 During the fourth quarter of 2009, the Company recognized a pre-tax long-lived asset impairment charge of $11 million related to the Companys Piabanha hydro project in Brazil. The Company determined that the carrying value exceeded the future discounted cash flows and abandoned the project. 2008 (inmillions) LNG projects in North America $ 67 Uruguaiana 36 South African peakers 31 Hefei 18 Other 23 Total $ 175 In the fourth quarter of 2008 and in response to the financial market crisis, the Company reviewed and prioritized projects in the development pipeline. From this review, the Company determined that the carrying value exceeded the future discounted cash flows for certain projects. In accordance with the accounting standards for the impairment or disposal of long-lived assets, the Company recorded a total pre-tax impairment charge of $75million ($34million, net of noncontrolling interests and income taxes) related to two liquefied natural gas projects in North America and a non-power development project at one of our facilities in North America. These projects were reported in the North America Generation segment. Following an initial impairment charge in the fourth quarter of 2007 at Uruguaiana, there were impairment charges of $36million recognized during the first three quarters of 2008. The impairment was triggered by a combination of gas curtailments and increases in the spot market price of energy in 2007 that continued in 2008. The additional impairment charges in 2008 were primarily due to fixed asset purchase agreements in place. Uruguaiana is a thermoelectric generation plant located in Brazil and reported in the Latin America Generation segment. The Company recognized impairment charges totaling $31million related to a project in South Africa the Company withdrew from during the first quarter of 2008. These represented project development costs and an impairment of turbine deposits related to the project. All costs capitalized and incurred on the project have been written off as no future benefit is expected from these assets. This project was reported in Corporate and Other. The Anhui Development and Reform commission issued notice to our Hefei plant in China, in March 2007 as a result of the 2007 State Councils decision to shut down smaller, inefficient and potentially polluting generation units nationwide. A settlement agreement was signed March30, 2008 to end the contractual PPA arrangement. In accordance with the accounting standards for goodwill and other intangible assets, management concluded that the assets were impaired in March 2008, since the long-lived asset group would be sold or otherwise disposed of significantly before the end of its previously estimated life. As a result, impairment charges of $18million were recognized associated with the settlement agreement to shut down the Hefei p

INCOME TAXES

INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
INCOME TAXES	20. INCOME TAXES INCOME TAX PROVISION The following table summarizes the expense for income taxes on continuing operations, for the years ended December31, 2009, 2008 and 2007: December31, 2009 2008 2007 (in millions) Federal: Current $ 3 $ 12 $ 2 Deferred (146 ) 122 5 State: Current (1 ) 2 Deferred (9 ) (7 ) 8 Foreign: Current 552 611 475 Deferred 199 34 184 Total $ 599 $ 771 $ 676 EFFECTIVE AND STATUTORY RATE RECONCILIATION The following table summarizes a reconciliation of the U.S.statutory federal income tax rate to the Companys effective tax rate, as a percentage of income from continuing operations before taxes for the years ended December31, 2009, 2008 and 2007: December31, 2009 2008 2007 Statutory Federal tax rate 35 % 35 % 35 % State taxes, net of Federal tax benefit (1 ) (1 ) Taxes on foreign earnings (5 ) (4 ) 13 Valuation allowance 2 (2 ) Gain on sale of Kazakhstan businesses (3 ) (12 ) Taxes on cash repatriation 6 Othernet 2 1 Effective tax rate 26 % 29 % 46 % The current income taxes receivable and payable are included in Other Current Assets and Accrued and Other Liabilities, respectively, on the accompanying Consolidated Balance Sheets. The noncurrent income taxes receivable and payable are included in Other Assets and Other Long-Term Liabilities respectively, on the accompanying Consolidated Balance Sheets. The following table summarizes the income taxes receivable and payable as of December31, 2009 and 2008: December31, 2009 2008 (in millions) Income taxes receivablecurrent $ 434 $ 326 Income taxes receivablenoncurrent 22 1 Total income taxes receivable $ 456 $ 327 Income taxes payablecurrent $ 508 $ 377 Income taxes payablenoncurrent 11 10 Total income taxes payable $ 519 $ 387 DEFERRED INCOME TAXESDeferred income taxes reflect the net tax effects of (a)temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b)operating loss and tax credit carry forwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. As of December31, 2009, the Company had federal net operating loss carry forwards for tax purposes of approximately $2.1billion expiring in years 2020 to 2029. Due to a transaction undertaken in the second quarter of 2009, the federal net operating loss carryforward now includes a U.S. entity that previously was not included in the U.S. consolidated tax group. Approximately $68million of the net operating loss carry

DISCONTINUED OPERATIONS AND HEL

DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES
	12 Months Ended Dec. 31, 2009 USD / shares
DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES	21. DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES The following table summarizes the income (loss) on disposal and impairment for the following discontinued operations for the years ended December31, 2009, 2008 and 2007: December31, 2009 2008 2007 Subsidiary (in millions) Central Valley $ $ (1 ) $ 20 EDC (680 ) Eden (1 ) Jiaozuo 7 Lal Pir (74 ) Pak Gen (76 ) (Loss) gain on disposal and impairment, after taxes $ (150 ) $ 6 $ (661 ) In December 2009, the Company entered into agreements to sell its interests in three generation businesses located in Pakistan and Oman, reported in the Asia Generation segment. The businesses, Lal Pir and Pak Gen, located in Pakistan, and Barka, located in Oman, will be sold to two separate buyers. The sales are expected to close in the first half of 2010. Upon completion of the transactions, the company will sell its 55% ownership in Lal Pir and Pak Gen, two oil-fired facilities with respective generation capacities of 362 MW and 365 MW. Further, the company will also sell its 35% ownership interest in Barka, a 456MW combined cycle gas facility and water desalination plant and its 100% ownership interest in two Barka related service companies. The Company will receive proceeds upon the closing of the two transactions of approximately $200 million before purchase price adjustments. The Company recognized an impairment after noncontrolling interests of $105 million against its share of Lal Pir and Pak Gen, which represents the net book value of the Companys investment in Lal Pir and Pak Gen less the fair value. In December2008, the Company reached an agreement to sell its 70% equity interest in Jiaozuo AESWanfang PowerCo.,Ltd. (Jiaozuo), which is reported in the Asia Generation segment, for approximately $73million net of any withholding taxes. The AES Board of Directors approved the sale of Jiaozuo which closed on December15, 2008 and the Company recognized a gain on the sale of approximately $7million. Goodwill of $4million was written off in connection with the gain on sale. This gain is included in the 2008 gain (loss) from disposal of discontinued businesses line item on the consolidated Statement of Operations for the year ended December31, 2008. On February22, 2007, the Company entered into a definitive agreement with Petrleos de Venezuela,S.A., (PDVSA) to sell all of its shares of EDC, a distribution business reported in the Latin America Utilities segment, for $739million, net of any withholding taxes. In addition, the agreement provided for the payment of a $120million dividend in 2007 which was declared on March1, 2007 payable to the EDC shareholders of record as of March9, 2007. A wholly-owned subsidiary of the Company was the owner of 82.14% of the outstanding shares of EDC, and therefore, on May31, 2007, received approximately $97million in dividends (representing approximately $99million in gross dividends offset by fees). The sale of EDC and the pay

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS AND DISPOSITIONS
	12 Months Ended Dec. 31, 2009 USD / shares
ACQUISITIONS AND DISPOSITIONS	22. ACQUISITIONS AND DISPOSITIONS Acquisitions In April2008, the Company completed the purchase of a 92% interest in a 660 grossMW coal-fired thermal power generation facility in Masinloc, Philippines (Masinloc) from the Power Sector Assets Liabilities Management Corporation, a state enterprise, for $930million in cash. Project financing of $665million was obtained from International Finance Corporation (IFC), the Asian Development Bank and a consortium of commercial banks. IFC is also an 8% minority shareholder in Masinloc. AES immediately embarked upon a comprehensive rehabilitation program to improve the output, reliability and general condition of the plant. Environmental clean-up costs have been estimated pending a detailed study. Including transaction costs and completion of the planned upgrade program to improve environmental and operational performance, the total project cost is estimated to be $1.1billion. Beginning on the acquisition date in April2008, the results of operations of Masinloc are reflected in the Consolidated Financial Statements. The Company finalized the purchase price allocation of this acquisition in the fourth quarter of 2008. Dispositions On May30, 2008 the Company completed the sale of two of its wholly-owned subsidiaries in Kazakhstan, Ekibastuz, a coal-fired generation plant, and 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 terminati

EARNINGS PER SHARE

EARNINGS PER SHARE
	12 Months Ended Dec. 31, 2009 USD / shares
EARNINGS PER SHARE	23. 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 restrictive stock units, stock options and convertible securities. 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 numerators and denominators of the basic and diluted earnings per share computations for income from continuing operations. In the table below, income represents the numerator (inmillions) and shares represent the denominator (inmillions): December31, 2009 December31, 2008 December31, 2007 Income Shares $ per Share Income Shares $ per Share Income Shares $ per Share BASIC EARNINGS PER SHARE Income from continuing operations attributable to The AES Corporation common stockholders $ 729 667 $ 1.09 $ 1,189 669 $ 1.78 $ 454 668 $ 0.68 EFFECT OF DILUTIVE SECURITIES Convertible securities 22 15 (0.02 ) Stock options and warrants 1 4 9 (0.01 ) Restricted stock units 2 1 1 DILUTED EARNINGS PER SHARE $ 729 670 $ 1.09 $ 1,211 689 $ 1.76 $ 454 678 $ 0.67 The calculation of diluted earnings per share excluded 18,035,813, 11,150,853 and 5,740,727 options outstanding at December31, 2009, 2008 and 2007, 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 of those options exceeded the average market price during the related period. In 2008, all convertible debentures were included in the earnings per share calculation. In 2009 and 2007, all convertible debentures were omitted from the earnings per share calculation because they were antidilutive.

RISKS AND UNCERTAINTIES

RISKS AND UNCERTAINTIES
	12 Months Ended Dec. 31, 2009 USD / shares
RISKS AND UNCERTAINTIES	24. RISKS AND UNCERTAINTIES AES is a global power producer in 29 countries on five continents. See additional discussion of the Companys principal markets in Note15Segment and Geographic Information. Our principal lines of business are Generation and Utilities. The Generation line of business uses a wide range of technologies, including coal, gas, hydroelectric, and biomass as fuel to generate electricity. Our Utilities business is comprised of businesses that transmit, distribute, and in certain circumstances generate power. In addition, the Company continues to expand its reach into the renewables area. These efforts include projects primarily in wind and solar. POLITICAL AND ECONOMIC RISKSThe Companys market capitalization was negatively impacted largely in the second half of 2008 and in 2009. During this period, credit markets and global markets deteriorated and experienced increased market volatility, which can pose risks to the overall liquidity and/or asset values of our businesses with heightened unpredictability in currencies, counterparty credit risk and the widening of credit spreads in certain markets. If market conditions are protracted or continue to deteriorate, the Company may be at risk to decreased earnings and cash flows due to, among other factors, adverse fluctuations in the commodities and foreign currency spot markets or deterioration in global macroeconomic conditions. With the tightening of the credit markets, there is a risk that future investments may not be able to be financed through accessing capital and debt markets and may be subject to restrictions in the near future. Currently, the Company has a below-investment grade rating from Standard Poors of BB-. This may limit the ability of the Company to finance new and existing development projects to cash currently available on hand and through reinvestment of earnings. As of December31, 2009, the Company had $1.8 billion of unrestricted cash and cash equivalents. During 2009, approximately 82% of our revenue, and all of our revenue from discontinued businesses, was generated outside the United States and a significant portion of our international operations is conducted in developing countries. While our growth strategy evolved as 2009 progressed, to focus on targeted projects in order to maintain our liquidity, we continue to invest in projects in developing countries because the growth rates and the opportunity to implement operating improvements and achieve higher operating margins may be greater than those typically achievable in more developed countries. International operations, particularly the operation, financing and development of projects in developing countries, entail significant risks and uncertainties, including, without limitation: economic, social and political instability in any particular country or region; adverse changes in currency exchange rates; government restrictions on converting currencies or repatriating funds; unexpected changes in foreign laws and regulations or in trade, monetary or fiscal policies; high inflation and monetary fluctuations; restrict

OFF-BALANCE SHEET ARRANGEMENTS

OFF-BALANCE SHEET ARRANGEMENTS AND RELATED PARTY TRANSACTIONS
	12 Months Ended Dec. 31, 2009 USD / shares
OFF-BALANCE SHEET ARRANGEMENTS AND RELATED PARTY TRANSACTIONS	25. OFF-BALANCE SHEET ARRANGEMENTS AND RELATED PARTY TRANSACTIONS 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 not 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. Historically that amount has remained at $50 million, but during the fourth quarter of 2009, IPLs eligible receivables balance was below $50 million and IPL was required to repay the Purchasers the shortfall, which was approximately $10 million as of December31, 2009. As collections reduce accounts receivable included in the pool, IPL Funding sells ownership interests in additional receivables acquired from IPL to return the ownership interests sold to the maximum amount permitted by the sale facility. During the second quarter of 2009, this agreement was extended through May25, 2010. Accounts receivable on the Companys consolidated balance sheets are stated net of the $40million and $50 million sold as of December31, 2009 and 2008, respectively and include $88 million and $87 million as of December31, 2009 and 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 $1million, $2 million and $3 million for the years ended December31, 2009, 2008 and 2007, respectively. These losses are included in other expense on the 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

SELECTED QUARTERLY FINANCIAL DA

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
	12 Months Ended Dec. 31, 2009 USD / shares
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	26. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly Financial Data The following tables summarize the unaudited quarterly statements of operations for the Company for 2009 and 2008. Amounts reflect all adjustments necessary in the opinion of management for a fair statement of the results for interim periods. Quarter ended 2009 Mar 31 June 30 Sept 30 Dec 31 (in millions, except per share data) Revenue $ 3,269 $ 3,335 $ 3,695 $ 3,820 Gross margin 856 823 985 831 Income from continuing operations, net of tax 482 513 423 418 Discontinued operations, net of tax 20 17 17 (135 ) Net income 502 530 440 283 Net income (loss) attributable to The AES Corporation $ 218 303 185 (48 ) Basic income per share: Income from continuing operations attributable to The AES Corporation, net of tax $ 0.31 $ 0.44 $ 0.27 $ 0.08 Discontinued operations attributable to The AES Corporation, net of tax 0.02 0.01 0.01 (0.15 ) Basic income (loss) per share attributable to The AES Corporation $ 0.33 $ 0.45 $ 0.28 $ (0.07 ) Diluted income per share: Income from continuing operations attributable to The AES Corporation, net of tax $ 0.31 $ 0.44 $ 0.27 $ 0.08 Discontinued operations attributable to The AES Corporation, net of tax 0.02 0.01 0.01 (0.15 ) Diluted income (loss) per share attributable to The AES Corporation $ 0.33 $ 0.45 $ 0.28 $ (0.07 ) Quarter ended 2008 Mar 31 June 30 Sept 30 Dec 31 (in millions, except per share data) Revenue $ 3,864 $ 3,939 $ 4,116 $ 3,439 Gross margin 1,013 1,008 943 668 Income from continuing operations, net of tax 386 1,141 352 80 Discontinued operations, net of tax 24 17 6 26 Net income 410 1,158 358 106 Net income (loss) attributable to The AES Corporation $ 233 903 145 (47 ) Basic income per share: Income from continuing operations attributable to The AES Corporation, net of tax $ 0.33 $ 1.33 $ 0.21 $ (0.10 ) Discontinued operations attributable to The AES Corporation, net of tax 0.02 0.01 0.01 0.03 Basic (loss) income per share attributable to The AES Corporation $ 0.35 $ 1.34 $ 0.22 $ (0.07 ) Diluted income per share: Income from continuing operations attributable to The AES Corporation, net of tax $ 0.32 $ 1.30 $ 0.21 $ (0.1

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS
	12 Months Ended Dec. 31, 2009 USD / shares
SUBSEQUENT EVENTS	27. SUBSEQUENT EVENTS Subsequent events have been evaluated through the date of issuance of this Form10-K.

SCHEDULE I CONDENSED FINANCIAL

SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT	THE AES CORPORATION SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT UNCONSOLIDATED BALANCE SHEETS December31, 2009 2008 (in millions) ASSETS Current Assets: Cash and cash equivalents $ 628 $ 200 Restricted cash 9 13 Accounts and notes receivable from subsidiaries 514 710 Deferred income taxes 27 19 Prepaid expenses and other current assets 34 43 Total current assets 1,212 985 Investment in and advances to subsidiaries and affiliates 8,639 7,659 Office Equipment: Cost 86 66 Accumulated depreciation (47 ) (34 ) Office equipment, net 39 32 Other Assets: Deferred financing costs (net of accumulated amortization of $76 and $89, respectively) 72 67 Deferred income taxes 516 311 Other assets 25 3 Total other assets 613 381 Total $ 10,503 $ 9,057 LIABILITIES AND STOCKHOLDERS EQUITY Current Liabilities: Accounts payable 5 Accrued and other liabilities 208 210 Senior notes payablecurrent portion 214 154 Total current liabilities 427 364 Long-term Liabilities: Term loan 200 200 Senior notes payable 4,584 4,277 Junior subordinated notes and debentures payable 517 517 Other long-term liabilities 100 30 Total long-term liabilities 5,401 5,024 Stockholders equity: Common stock 7 7 Additional paid-in capital 6,868 6,832 Retained earnings (deficit) 650 (8 ) Accumulated other comprehensive loss (2,724 ) (3,018 ) Treasury stock (126 ) (144 ) Total stockholders equity 4,675 3,669 Total $ 10,503 $ 9,057 STATEMENTS OF UNCONSOLIDATED OPERATIONS For the Years Ended December31 2009 2008 2007 (in millions) Revenues from subsidiaries and affiliates $ 39 $ 36 $ 32 Equity in earnings of subsidiaries and affiliates 983 2,019 588 Interest income 131 173 155 General and administrative expenses (218 ) (264 ) (411 ) Interest expense (485 ) (516 ) (471 ) Income (loss) before income taxes 450 1,448 (107 ) Income tax benefit (expense) 208 (215 ) 12 Net income (loss) $ 658 $ 1,233 $ (95 ) STATEMENTS OF UNCONSOLIDATED CASH FLOWS (IN MILLIONS) For the Years Ended December31, 2009 2008 2007 Net cash provided by operating activities $ 178 $ 863 $ 213 Investing Activities:

SCHEDULE II VALUATION AND QUALI

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS	THE AES CORPORATION SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (IN MILLIONS) Balanceat Beginningof the period Charged to Cost andExpense Amounts Writtenoff Translation Adjustment Balanceat the End of the Period Allowance for accounts receivables (current and noncurrent) Year ended December31, 2007 . $ 331 $ 179 $ (192 ) $ 53 $ 371 Year ended December31, 2008 . 371 127 (65 ) (100 ) 333 Year ended December31, 2009 . 333 109 (117 ) 67 392

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 19, 2010	Jun. 30, 2009
Trading Symbol	AES
Entity Registrant Name	AES CORP
Entity Central Index Key	0000874761
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		668,469,159
Entity Public Float			$7,853,000,000