XML 43 R18.htm IDEA: XBRL DOCUMENT
v3.21.2

Leases (Notes) | 9 Months Ended
--- | ---
Sep. 30, 2021
Lessor, Lease, Description [Line Items] |
Lessor, Operating Leases | LEASES LESSOR — The Company has operating leases for certain generation contracts that contain provisions to provide capacity to a customer, which is a stand-ready obligation to deliver energy when required by the customer. Capacity receipts are generally considered lease elements as they cover the majority of available output from a facility. The allocation of contract payments between the lease and non-lease elements is made at the inception of the lease. Lease receipts from such contracts are recognized as lease revenue on a straight-line basis over the lease term, whereas variable lease receipts are recognized when earned. The following table presents lease revenue from operating leases in which the Company is the lessor for the periods indicated (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
Operating Lease Income | 2021 |  | 2020 |  | 2021 |  | 2020
Total lease revenue | $ | 193 |  |  | $ | 154 |  |  | $ | 454 |  |  | $ | 442 |
Less: Variable lease revenue | 24 |  |  | 24 |  |  | 63 |  |  | 58 |
Total Non-variable lease revenue | $ | 169 |  |  | $ | 130 |  |  | $ | 391 |  |  | $ | 384 |
The following table presents the underlying gross assets and accumulated depreciation of operating leases included in Property, Plant and Equipment for the periods indicated (in millions):
Property, Plant and Equipment |  | September 30, 2021 |  | December 31, 2020
Gross assets |  | $ | 2,514 |  |  | $ | 3,103 |
Accumulated depreciation |  | (821) |  |  | (1,011) |
Net assets (1) |  | $ | 1,693 |  |  | $ | 2,092 |
_______________________________ (1)The decrease in net assets is primarily related to the asset impairment at Puerto Rico. See Note 16—Asset Impairment Expense for further information. The option to extend or terminate a lease is based on customary early termination provisions in the contract, such as payment defaults, bankruptcy, and lack of performance on energy delivery. The Company has not recognized any early terminations as of September 30, 2021. Certain leases may provide for variable lease payments based on usage or index-based (e.g., the U.S. Consumer Price Index) adjustments to lease payments. The following table shows the future lease receipts as of September 30, 2021 for the remainder of 2021 through 2025 and thereafter (in millions):
| Future Cash Receipts for
| Sales-Type Leases (1) |  | Operating Leases
2021 | $ | 5 |  |  | $ | 118 |
2022 | 20 |  |  | 465 |
2023 | 20 |  |  | 401 |
2024 | 21 |  |  | 402 |
2025 | 21 |  |  | 402 |
Thereafter | 336 |  |  | 1,031 |
Total | $ | 423 |  |  | $ | 2,819 |
Less: Imputed interest | (202) |  |  |
Present value of total lease receipts | $ | 221 |  |  |
_______________________________ (1)The sales-type lease receivable balance is primarily related to AES Energy Storage Alamitos project that commenced in January 2021. Battery Storage Lease Arrangements — The Company is constructing and operating projects that pair BESS with solar energy systems, which allows the project more flexibility on when to provide energy to the grid. The Company will enter into PPAs for the full output of the facility that allow customers the ability to determine when to charge and discharge the BESS. These arrangements include both lease and non-lease elements under ASC 842, with the BESS component constituting a sales-type lease. Upon commencement of the lease, the book value of the leased asset is removed from the balance sheet and a net investment in sales-type lease is recognized based on the present value of fixed payments under the contract and the residual value of the underlying asset. Due to the variable nature of lease payments under these contracts, the Company recorded losses at commencement of sales-type leases of $13 million for the nine months ended September 30, 2021. These amounts are recognized in Other expense in the Consolidated Statement of Operations. See Note 15—Other Income and Expense for further information. The Company recognized lease income on sales-type leases through interest income of $3 million and $11 million for the three and nine months ended September 30, 2021, respectively

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_LessorLeaseDescriptionLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration