XML 44 R23.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Dispositions (Notes) | 6 Months Ended
--- | ---
Jun. 30, 2018
Discontinued Operations and Disposal Groups [Abstract] |
DISPOSITIONS AND HELD-FOR-SALE BUSINESSES | DISCONTINUED OPERATIONS Due to a portfolio evaluation in the first half of 2016, management decided to pursue a strategic shift of its distribution companies in Brazil, Sul and Eletropaulo, to reduce the Company's exposure to the Brazilian distribution market. The disposals of Sul and Eletropaulo were completed in October 2016 and June 2018, respectively. In November 2017, Eletropaulo converted its preferred shares into ordinary shares and transitioned the listing of those shares to the Novo Mercado, which is a listing segment of the Brazilian stock exchange with the highest standards of corporate governance. Upon conversion of the preferred shares into ordinary shares, AES no longer controlled Eletropaulo, but maintained significant influence over the business. As a result, the Company deconsolidated Eletropaulo. After deconsolidation, the Company's 17% ownership interest was reflected as an equity method investment. The Company recorded an after-tax loss on deconsolidation of $611 million, which primarily consisted of $455 million related to cumulative translation losses and $243 million related to pension losses reclassified from AOCL. In December 2017, all the remaining criteria were met for Eletropaulo to qualify as a discontinued operation. Therefore, its results of operations and financial position were reported as such in the consolidated financial statements for all periods presented. In June 2018, the Company completed the sale of its entire 17% ownership interest in Eletropaulo through a bidding process hosted by the Brazilian securities regulator, CVM. Gross proceeds of $340 million were received at our subsidiary in Brazil, subject to the payment of taxes. Upon disposal of Eletropaulo, the Company recorded a pre-tax gain on sale of $238 million (after-tax $196 million). Prior to its classification as discontinued operations, Eletropaulo was reported in the South America SBU reportable segment. The following table summarizes the carrying amounts of the major classes of assets and liabilities of discontinued operations at December 31, 2017:
(in millions) | December 31, 2017
Assets of discontinued operations and held-for-sale businesses: |
Investments in and advances to affiliates (1) | $ | 86 |
Total assets of discontinued operations | $ | 86 |
Other assets of businesses classified as held-for-sale (2) | 1,948 |
Total assets of discontinued operations and held-for-sale businesses | $ | 2,034 |
Liabilities of discontinued operations and held-for-sale businesses: |
Other liabilities of businesses classified as held-for-sale (2) | 1,033 |
Total liabilities of discontinued operations and held-for-sale businesses | $ | 1,033 |
_____________________________
(1) | Represents the Company's 17% ownership interest in Eletropaulo.
(2) | Electrica Santiago, the DPL Peaker Assets and Masinloc were classified as held-for-sale as of December 31, 2017. See Note 17—Held-for-Sale and Dispositions for further information.
Excluding the gain on sale, income from discontinued operations and cash flows from operating and investing activities of discontinued operations were immaterial for the three and six months ended June 30, 2018. The following table summarizes the major line items constituting income from discontinued operations for the three and six months ended June 30, 2017 (in millions):
Income from discontinued operations, net of tax: | Three Months Ended June 30, 2017 |  | Six Months Ended June 30, 2017
Revenue — regulated | $ | 862 |  |  | $ | 1,781 |
Cost of sales | (823 | ) |  | (1,697 | )
Other income and expense items that are not major | (26 | ) |  | (68 | )
Income from discontinued operations | $ | 13 |  |  | $ | 16 |
Less: Net income attributable to noncontrolling interests | (8 | ) |  | (9 | )
Income from discontinued operations attributable to The AES Corporation | $ | 5 |  |  | $ | 7 |
Income tax expense | (5 | ) |  | (7 | )
Income from discontinued operations, net of tax | $ | — |  |  | $ | — |
The following table summarizes the operating and investing cash flows from discontinued operations for the three and six months ended June 30, 2017 (in millions):
| Three Months Ended June 30, 2017 |  | Six Months Ended June 30, 2017
Cash flows provided by (used in) operating activities of discontinued operations | $ | (43 | ) |  | $ | 125 |
Cash flows provided by (used in) investing activities of discontinued operations | 7 |  |  | (120 | )
HELD-FOR-SALE AND DISPOSITIONS Held-for-Sale Compañia Transmisora del Norte Grande — In June 2018, AES Gener entered into an agreement to sell the transmission lines held by Compañia Transmisora del Norte Grande (“CTNG”) for $220 million, subject to customary purchase price adjustments. The sale is subject to regulatory approval and is expected to close during the second half of 2018. As of June 30, 2018, CTNG was classified as held-for-sale, but did not meet the criteria to be reported as discontinued operations. CTNG’s carrying value at June 30, 2018 was $95 million. CTNG is reported in the South America SBU reportable segment. Pre-tax income attributable to AES was immaterial for the three and six months ended June 30, 2018 and June 30, 2017, respectively. Dispositions Electrica Santiago — In May 2018, AES Gener completed the sale of Electrica Santiago for total proceeds of $307 million, subject to customary post-closing adjustments, resulting in a pre-tax gain on sale of $89 million. Electrica Santiago consisted of four gas and diesel-fired generation plants in Chile. The sale did not meet the criteria to be reported as discontinued operations. Prior to its sale, Electrica Santiago was reported in the South America SBU reportable segment. Stuart and Killen — In May 2018, DPL retired the co-owned Stuart coal-fired and diesel-fired generating units, and the Killen coal-fired generating unit and combustion turbine. Prior to their retirement, Stuart and Killen were reported in the US and Utilities SBU reportable segment. See Note 14—Asset Impairment Expense for further information. Masinloc — In March 2018, the Company completed the sale of its entire 51% equity interest in Masinloc for cash proceeds of $1.05 billion, subject to customary post-closing adjustments, resulting in a pre-tax gain on sale of $777 million and U.S. tax expense of $155 million. Masinloc consisted of a coal-fired generation plant in operation, a coal-fired generation plant under construction, and an energy storage facility all located in the Philippines. The sale did not meet the criteria to be reported as discontinued operations. Prior to its sale, Masinloc was reported in the Eurasia SBU reportable segment. DPL peaker assets — In March 2018, DPL completed the sale of six of its combustion turbine and diesel-fired generation facilities and related assets ("DPL peaker assets") for total proceeds of $239 million, inclusive of estimated working capital and subject to customary post-closing adjustments, resulting in a loss on sale of $2 million. The sale did not meet the criteria to be reported as discontinued operations. Prior to their sale, the DPL peaker assets were reported in the US and Utilities SBU reportable segment. Beckjord facility — In February 2018, DPL transferred its interest in Beckjord, a coal-fired generation facility retired in 2014, including its obligations to remediate the facility and its site. The transfer resulted in cash expenditures of $15 million, inclusive of disposal charges, and a loss on disposal of $12 million. Prior to the transfer, Beckjord was reported in the US and Utilities SBU reportable segment. Advancion Energy Storage — In January 2018, the Company deconsolidated the AES Advancion energy storage development business and contributed it to the Fluence joint venture, resulting in a gain on sale of $23 million. See Note 6—Investments in and Advances to Affiliates for further discussion. Prior to the transfer, the AES Advancion energy storage development business was reported as part of Corp and Other. Kazakhstan CHPs — In April 2017, the Company completed the sale of Ust-Kamenogorsk CHP and Sogrinsk CHP, its combined heating and power coal plants in Kazakhstan, for net proceeds of $24 million. The Company recognized a pre-tax loss on sale of $48 million, primarily related to cumulative translation losses. The sale did not meet the criteria to be reported as discontinued operations. Prior to their sale, the Kazakhstan CHP plants were reported in the Europe SBU reportable segment. See Note 14—Asset Impairment Expense for further information. Excluding any impairment charges or gain/loss on sale, pre-tax income (loss) attributable to AES of disposed businesses was as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) | 2018 |  | 2017 |  | 2018 |  | 2017
Masinloc | $ | — |  |  | $ | 29 |  |  | $ | 9 |  |  | $ | 52 |
Stuart and Killen | 23 |  |  | 12 |  |  | 30 |  |  | (8 | )
Other | 3 |  |  | 6 |  |  | 12 |  |  | 22 |
Total | $ | 26 |  |  | $ | 47 |  |  | $ | 51 |  |  | $ | 66 |

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration