The AES Corporation ("AES") initiated a quarterly cash distribution to public shareholders of AES common stock beginning on November 15, 2012.
Effective January 1, 2011, issuers of corporate stock must report corporate actions that affect stock basis, including but not limited to mergers, stock splits, stock dividends, recapitalizations and common stock distributions paid in excess of "earnings and profits", as defined by the US Internal Revenue Code.
The tax treatment of AES' distributions characterized as "dividends" or "returns of capital" are generally reported to U.S. shareholders on Form 1099 mailed to U.S. shareholders by January 31st in the year following any distributions. Additionally, distributions characterized as "return of capital" require AES to post on its website Form 8937 reflecting the impact on a shareholder's tax basis for each distribution made. The determination of AES' earnings and profits, and hence whether a distribution is treated as dividend vs. return of capital, is not made until after the end of the fiscal year.
This information is intended to meet the requirements of public disclosure pursuant to Treasury Regulation §1.6045B-1 (a) (3) and (b) (4) for AES. Pursuant to the applicable Treasury Regulations, if AES assumptions turn out to be incorrect, AES will file a corrected Form 8937 within 45 days of such determination.