Reclassification to earnings, net of $0 income tax for all periods

4 | The AES CorporationCondensed Consolidated Statements of Comprehensive Income (Loss)(Unaudited)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2022 |  | 2021 |  | 2022 |  | 2021 |
|  |  |  |  |  |  |  |  |
|  | (in millions) |
| NET INCOME | $ | 446  |  |  | $ | 485  |  |  | $ | 481  |  |  | $ | 379  |  |
|  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
| Foreign currency translation activity: |  |  |  |  |  |  |  |
| Foreign currency translation adjustments, net of $0 income tax for all periods | (80) |  |  | (58) |  |  | (97) |  |  | (89) |  |
| Reclassification to earnings, net of $0 income tax for all periods | —  |  |  | —  |  |  | —  |  |  | 3  |  |
| Total foreign currency translation adjustments | (80) |  |  | (58) |  |  | (97) |  |  | (86) |  |
| Derivative activity: |  |  |  |  |  |  |  |
| Change in derivative fair value, net of income tax benefit (expense) of $(62), $2, $(196), and $(17), respectively | 189  |  |  | (6) |  |  | 731  |  |  | 62  |  |
| Reclassification to earnings, net of income tax benefit (expense) of $1, $(10), $(12), and $(23), respectively | 14  |  |  | 30  |  |  | 52  |  |  | 79  |  |
| Total change in fair value of derivatives | 203  |  |  | 24  |  |  | 783  |  |  | 141  |  |
| Pension activity: |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
| Change in pension adjustments due to net actuarial gain (loss) for the period, net of income tax expense of $0, $1, $0, and $1, respectively | —  |  |  | (1) |  |  | —  |  |  | (1) |  |
| Reclassification to earnings, net of income tax benefit (expense) of $(1), $1, $(1), and $0, respectively | 1  |  |  | 4  |  |  | 2  |  |  | 5  |  |
| Total pension adjustments | 1  |  |  | 3  |  |  | 2  |  |  | 4  |  |
| OTHER COMPREHENSIVE INCOME (LOSS) | 124  |  |  | (31) |  |  | 688  |  |  | 59  |  |
| COMPREHENSIVE INCOME | 570  |  |  | 454  |  |  | 1,169  |  |  | 438  |  |
| Less: Comprehensive income attributable to noncontrolling interests and redeemable stock of subsidiaries | (50) |  |  | (125) |  |  | (207) |  |  | (172) |  |
| COMPREHENSIVE INCOME ATTRIBUTABLE TO THE AES CORPORATION | $ | 520  |  |  | $ | 329  |  |  | $ | 962  |  |  | $ | 266  |  |

See Notes to Condensed Consolidated Financial Statements.   

