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Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest Rate And Cross Currency Derivatives By Type Table

The following tables present the Company’s maximum notional (in millions) over the remaining contractual period by type of derivative as of September 30, 2024, and the dates through which the maturities for each type of derivative range:

Interest Rate and Foreign Currency Derivatives						Maximum Notional Translated to USD						Latest Maturity
Interest rate						$	10,010					2059
Cross-currency swaps (Brazilian real)						404						2026
Foreign currency:
Brazilian real						392						2026
Chilean peso						165						2027
Mexican peso						112						2025
Euro						95						2026
Colombian peso						41						2026

Commodity Derivatives						Maximum Notional						Latest Maturity
Natural Gas (in MMBtu)						213						2029
Power (in MWhs)						51						2040
Coal (in Metric Tons)						11						2027

Derivative Assets Liabilities At Fair Value Net By Balance Sheet Classification And Type Table

The following tables present the fair value of the Company’s derivative assets and liabilities as of the dates indicated (in millions):

Fair Value			September 30, 2024																		December 31, 2023
Assets			Designated						Not Designated						Total						Designated						Not Designated						Total
Interest rate derivatives			$	131					$	—					$	131					$	184					$	—					$	184
Cross-currency derivatives			10						—						10						—						—						—
Foreign currency derivatives			21						69						90						23						51						74
Commodity derivatives			1						527						528						—						128						128
Total assets (1)			$	163					$	596					$	759					$	207					$	179					$	386
Liabilities
Interest rate derivatives			$	168					$	—					$	168					$	108					$	—					$	108
Cross-currency derivatives			11						—						11						63						—						63
Foreign currency derivatives			9						8						17						5						14						19
Commodity derivatives			78						397						475						107						149						256
Total liabilities (1)			$	266					$	405					$	671					$	283					$	163					$	446

			September 30, 2024												December 31, 2023
Fair Value			Assets						Liabilities						Assets						Liabilities
Current			$	531					$	363					$	216					$	152
Noncurrent			228						308						170						294
Total (1)			$	759					$	671					$	386					$	446

_____________________________

(1)Includes $234 million of derivative assets reported in Current held-for-sale assets and $236 million of derivative liabilities reported in Current held-for-sale liabilities on the Condensed Consolidated Balance Sheets related to AES Brasil as of September 30, 2024.

Gain Loss In Earnings On Ineffective Portion Of Qualifying Cash Flow Hedges Table

The following table presents the pre-tax gains (losses) recognized in AOCL and earnings on the Company’s derivative instruments for the periods indicated (in millions):

			Three Months Ended September 30,												Nine Months Ended September 30,
			2024						2023						2024						2023
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives			$	(337)					$	358					$	3					$	380
Foreign currency derivatives			10						(18)						—						(6)
Commodity derivatives			1						7						29						(20)
Total			$	(326)					$	347					$	32					$	354
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives			$	2					$	(2)					$	(28)					$	47
Foreign currency derivatives			1						(1)						3						(4)
Commodity derivatives			—						4						—						17
Total			$	3					$	1					$	(25)					$	60
Gains (losses) on fair value hedging relationship
Cross-currency derivatives			$	4					$	29					$	(2)					$	(57)
Hedged items			4						1						(1)						54
Total			$	8					$	30					$	(3)					$	(3)
Gains reclassified from AOCL to earnings due to change in forecast			$	—					$	—					$	11					$	14
Gains (losses) recognized in earnings
Not designated as hedging instruments:
Interest rate derivatives			$	—					$	—					$	1					$	—
Foreign currency derivatives			(12)						3						46						3
Commodity derivatives and other			65						74						158						265
Total			$	53					$	77					$	205					$	268

Fair Value Measurements, Recurring and Nonrecurring

The following table summarizes our major categories of asset groups measured at fair value on a nonrecurring basis and their level within the fair value hierarchy (in millions):

			Measurement Date						Carrying Amount (1)						Fair Value																		Pre-tax Loss
Nine Months Ended September 30, 2024															Level 1						Level 2						Level 3
Held-for-sale businesses: (2)
Mong Duong			3/31/2024						$	450					$	—					$	413					$	—					$	37
AES Brasil (3)			5/15/2024						1,556						—						1,352						—						217
Mong Duong (5)			6/30/2024						390						—						389						—						6
AES Brasil (4)			9/30/2024						1,351						—						1,313						—						60
Mong Duong (5)			9/30/2024						407						—						400						—						11
			Measurement Date						Carrying Amount (1)						Fair Value
Nine Months Ended September 30, 2023															Level 1						Level 2						Level 3						Pre-tax Loss
Long-lived asset groups held and used:
Norgener (6)			5/1/2023						$	196					$	—					$	—					$	24					$	137
GAF Projects (AES Renewable Holdings)			5/31/2023						29						—						—						11						18
TEG			7/31/2023						170						—						—						93						77
TEP			7/31/2023						153						—						—						94						59
Held-for-sale businesses: (2)
Jordan (7)			3/31/2023						$	179					$	—					$	170					$	—					$	14
Jordan (7)			6/30/2023						179						—						170						—						15
Jordan (7)			9/30/2023						178						—						170						—						14

_____________________________

(1)Represents the carrying values of the asset groups at the dates of measurement, before fair value adjustment.

(2)See Note 18—Held-for-Sale and Dispositions for further information.

(3)The pre-tax loss recognized was calculated using the fair value of the AES Brasil disposal group less costs to sell of $13 million. For purposes of the impairment analysis, the Company used the carrying value of the disposal group as of April 30, 2024. A subsequent impairment analysis was performed as of June 30, 2024 and no additional impairment was identified.

(4)The pre-tax loss recognized was calculated using the fair value of the AES Brasil disposal group less costs to sell of $22 million.

(5)The pre-tax loss recognized was calculated using the fair value of the Mong Duong disposal group less costs to sell of $5 million for both the June 30, 2024 and September 30, 2024 measurement dates.

(6)The Norgener asset group includes long-lived assets, inventory, land, and other working capital, however per ASC 360-10, the pre-tax impairment expense is limited to the carrying amount of the long-lived assets. See Note 16—Asset Impairment Expense for further information. The Company evaluated the carrying amount of the assets outside the scope of ASC 360-10 and determined that the carrying value of the other assets should not be reduced.

(7)The pre-tax loss recognized was calculated using the fair value of the Jordan disposal group less costs to sell of $5 million, $6 million, and $6 million for the March 31, 2023, June 30, 2023, and September 30, 2023 measurement dates, respectively.

The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets held and used measured on a nonrecurring basis during the nine months ended September 30, 2023 (in millions, except range amounts):

Nine Months Ended September 30, 2023

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted Average)

Long-lived asset groups held and used:

TEP

$

94

Discounted cash flow

Annual revenue growth

(31)% to 6% (-2%)

Annual variable margin

22% to 37% (26%)

Discount rate

14% to 25% (14%)

TEG

93

Discounted cash flow

Annual revenue growth

(7)% to 9% (0%)

Annual variable margin

14% to 33% (20%)

Discount rate

14% to 25% (14%)

Norgener (1)

24

Discounted cash flow

Annual revenue growth

(90)% to 994% (85%)

Annual variable margin

(75)% to 276% (16%)

GAF Projects (AES Renewable Holdings)

11

Discounted cash flow

Annual revenue growth

(42)% to 44% (1%)

Discount rate

9%

Total

$

222

_____________________________

(1)The fair value of the Norgener asset group is mainly related to existing coal inventory not subject to impairment under ASC 360-10.

Fair Value Of Financial Instruments Not Carried At Fair Value [Table Text Block]

The following table presents (in millions) the carrying amount, fair value, and fair value hierarchy of the Company’s financial assets and liabilities that are not measured at fair value in the Condensed Consolidated Balance Sheets as of the periods indicated, but for which fair value is disclosed:

						September 30, 2024
						Carrying Amount						Fair Value
												Total						Level 1						Level 2						Level 3
Assets:			Accounts receivable — noncurrent (1)			$	97					$	166					$	—					$	—					$	166
Liabilities:			Non-recourse debt			22,483						23,150						—						20,919						2,231
			Recourse debt			6,549						6,459						—						6,459						—

						December 31, 2023
						Carrying Amount						Fair Value
												Total						Level 1						Level 2						Level 3
Assets:			Accounts receivable — noncurrent (1)			$	193					$	239					$	—					$	—					$	239
Liabilities:			Non-recourse debt			22,144						22,174						—						20,676						1,498
			Recourse debt			4,464						4,210						—						4,210						—

_____________________________

(1)These amounts primarily relate to the sale of the Redondo Beach land, the amounts impacted by the Stabilization Funds enacted by the Chilean government, and for December 31, 2023 only, the receivables under the Warrior Run PPA termination agreement. These are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. See Note 5—Financing Receivables for further information.

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