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Discontinued Operations and Held For Sale Businesses | 12 Months Ended
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Dec. 31, 2012
DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES | 23. DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES Discontinued operations include the results of the following businesses: Tisza II (sold in December 2012); Red Oak and Ironwood (sold in April 2012); Argentina distribution businesses (sold in November 2011); Eletropaulo Telecomunicacões Ltda. and AES Communications Rio de Janeiro S.A. (collectively, “Brazil Telecom”), our Brazil telecommunication businesses (sold in October 2011); Carbon reduction projects (held for sale in December 2011); Wind projects (abandoned in December 2011); Eastern Energy in New York (held for sale in March 2011); Borsod in Hungary (held for sale in March 2011); Thames in Connecticut (disposed of in December 2011); Barka in Oman (sold in August 2010); Lal Pir and Pak Gen in Pakistan (sold in June 2010); and Ras Laffan in Qatar (sold in October 2010). Information for business es included in discontinued operations and the income (loss) on disposal and impairment of discontinued operations for the years ended December 31, 2012, 2011 and 2010 is provided in the tables below:
|  | Year ended December 31,
|  | 2012 |  | 2011 |  | 2010
|  | (in millions)
Revenue |  | $ | 66 |  | $ | 836 |  | $ | 1,695
Loss from operations of discontinued businesses, before income tax |  | $ | (10) |  | $ | (157) |  | $ | (770)
Income tax (expense) benefit |  |  | (3) |  |  | 26 |  |  | 284
Loss from operations of discontinued businesses, after income tax |  | $ | (13) |  | $ | (131) |  | $ | (486)
Gain (loss) on disposal of discontinued businesses, after income tax |  | $ | 16 |  | $ | 86 |  | $ | 64
Gain (Loss) on Disposal of Discontinued Businesses |  |  |  |  |  |  |  |  |
|  | Year ended December 31,
Subsidiary |  | 2012 |  | 2011 |  | 2010
|  | (in millions)
Red Oak and Ironwood |  | $ | 73 |  | $ | - |  | $ | -
Eastern Energy |  | $ | 30 |  | $ | - |  | $ | -
Tisza II |  |  | (87) |  |  | - |  |  | -
Carbon reduction projects |  |  | (6) |  |  | - |  |  | -
Brazil Telecom |  |  | 6 |  |  | 446 |  |  | -
Argentina distribution businesses |  |  | - |  |  | (338) |  |  | -
Wind projects |  |  | - |  |  | (22) |  |  | -
Barka |  |  | - |  |  | - |  |  | 80
Lal Pir and Pak Gen |  |  | - |  |  | - |  |  | (22)
Ras Laffan |  |  | - |  |  | - |  |  | 6
Gain (loss) on disposal, after income tax |  | $ | 16 |  | $ | 86 |  | $ | 64
Tisza II— In December 2012, the Company completed the sale of its 100% ownership interest in Tisza II, a 900 MW gas/oil fired plant in Hungary. Net proceeds from the sale transaction were $14 million and the Company recognized a loss on disposal of $87 million, net of tax (including the realization of cumulative foreign currency translation loss of $73 million). In 2011 and 2010, the long-lived asset group of Tisza II was evaluated for impairment due to deteriorati ng economic and business conditions in Hungary, and was determined to be unrecoverable based on undiscounted cash flows. As a result, the Company had measured the asset group at fair value using discounted cash flow s analysis and recognized asset impairment expense of $52 million and $85 million in 2011 and 2010, respectively, which is included in loss from operations of discontinued businesses above. Tisza II was reported in EMEA Generation segment. Red Oak and Ironwood― I n April 2012, the Company completed the sale of its 100%% interest in Red Oak, a n 832 MW coal-fired plant in New Jersey, and Ironwood, a 710 MW coal-fired plant in Pennsylvania, for $228 million and recognized a gain of $73 million, net of tax. Both Red Oak and Ironwood were reported in the US Generation segment. Argentina distribution businesses—On November 17, 2011, the Company completed the sale of its 90% equity interest in Edelap and Edes, two distribution companies in Argenti na serving approximately 329,000 and 172,000 cus tomers, respectively, and its 51% equity interest in Central Dique, a 68 MW gas and diesel generation plant (collectively, “Argentina distribution businesses”) in Argentina. Net proceeds from the sale were approximately $4 million. T he Company recognized a loss on disposal of $338 million, net of tax (including the realization of cumulative foreign currency translation loss of $208 million). These businesses were previously reported in “Corporate and Other”. Brazil Telecom—In October 2011, a subsidiary of the Company completed the sale of its ownership interest in two telecommunication companies in Brazil. The Company held approximately 46% ownership interest in these companies through the subsidiary. T he subsidiary received net proceeds of approximately $893 million. The gain on sale wa s approximately $446 million, net of tax. These businesses we re previously reported in the Brazil Utilities segment. Carbon reduction projects ― In December 2011, the Company's b oard of d irectors approved plan s to sell its 100% equity interest s i n its carbon reduction businesses in Asia and Latin America. The aggregate carrying amount of $49 million of these projects was written down as their estimated fair value was considered zero, resulting in a pre-tax impairment expense of $40 million, which is included in income from operations of discontinued businesses. The i mpairment expense recognized was limited to the carrying amounts of the individual assets within the asset group, where the fair value was gre ater than the carrying amount. When the disposal group met the held for sale criteria, the disposal group was measured at the lower of carrying amount or fair value less cost to sell. Carbon reduction projects were previously reported in “Corporate and Other”. Wind projects—In the fourth quarter of 2011, the Company determined that it would no longer pursue certain development projects in Poland and the United K ingdom due to revisions in its growth strategy. As a result, the Company abandon ed these projects and recognized the related project development rights, which were previously included in intangible assets, as a loss on disposal of discontinued operations of $22 million, net of tax. These wind projects were previously reported in EMEA generation reportable segment. Eastern Energy—In March 2011, AES Eastern Energy (“AEE”) met the held for sale criteria and was reclassified from continuing operation s to held for sale. AEE operated four coal-fired power plants: Cayuga, Greenidge, Somerset and Westover, representing generation capacity of 1,169 MW in the western New York power market. In 2010, AEE had recognized a pre-tax impairment expense of $827 million due to adverse market conditions. In December 2011, AEE along with certain of its affiliates filed for bankruptcy protection and wa s recorded as a cost method investment. In December 2012, the AEE bankrupt cy proceedings were finalized and a gain of $30 million, net of tax, was recognized in gain on disposal of discontinued business es. AEE was previously reported in the US Generation segment. Borsod—In March 2011, Borsod, which holds two coal/biomass-fired generation plants in Hungary with generating capacity of 161 MW, met the held for sale criteria and was reclassified from continuing operations to held for sale. In November 2011, Borsod filed for liquidation and wa s recorded as a cost method investment. Borsod was previously reported in the E MEA Generation reportable segment. Thames—In December 2011, Thames, a 208 MW coal-fired plant in Connecticut, met the discontinued operations criteria and its operating results were retrospectively reflected as discontinued operations. Thames had filed for liquidation in February 2011, and wa s recorded as a cost method investment with the historical operating results reflected in discontinued operations. Thames was previously reported in the US Generation reportable segment. Barka—On August 19, 2010, the Company completed the sale of its 35% ownership interest in Barka, a 456 MW combined cycle gas facility and water de salination plant in Oman, and its 100% interest in two Barka related service companies. Total consideration received in the transaction was approximately $170 million, of which $124 million was AES' portion. The Company recognized a gain on disposal of $80 million, net of tax, during the year ended December 31, 2010. Barka was previously reported in the Asia Generation reportable segment. Lal Pir and Pak Gen—On June 11, 2010, the Company completed the sale of its 55% ownership in Lal Pir and Pak Gen, two oil-fired facilities in Pakistan with respective generation capacities of 362 MW and 365 MW. Total consideration received in the transaction was approximately $117 million, of which $65 million was AES' portion. The Company recognized a loss on disposal of $22 million, net of tax, during the year ended December 31, 20 10. These businesses were previously reported i n the Asia Generation reportable segment. Ras Laffan—On October 20, 2010, the Company completed the sale of its 55% equity interest in Ras Laffan, a 756 MW combined cycle gas plant and a water desalination facility in Qatar, and the as sociated operations company for aggregate proceeds of approximately $234 million. The Company recognized a gain on disposal of $6 million, net of tax, during the year ended December 31, 2010. Ras Laffan was previously reported in the Asia Generation reportable segment.

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- Definition The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 43-48 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759 + Details
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