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Assets held for sale | 12 Months Ended
--- | ---
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Assets held for sale | Assets held for sale On August 9, 2024, the Company entered into an agreement to sell its renewable energy business (excluding hydro) to LS Buyer. Subsequent to year-end, on January 8, 2025 the Company completed the Renewables Sale for proceeds of $2,092,764, after subtracting taxes, transaction fees and other preliminary closing adjustments. The Renewables sale was classified as held for sale and as discontinued operations in the third quarter of 2024. No adjustments were made to the historical activity within the consolidated statements of comprehensive income (loss), consolidated statements of cash flows or the consolidated statements of changes in equity. Unless otherwise noted, the notes to these consolidated financial statements exclude amounts related to discontinued operations for all periods presented. 24.Assets held for sale (continued) (a)Assets held for sale and associated liabilities The following table presents the carrying values of the major classes of assets held for sale and liabilities associated with assets held for sale included in AQN’s consolidated balance sheets:
(thousands of U.S. dollars) | December 31, |  | December 31,
| 2024 |  | 2023
ASSETS HELD FOR SALE |  |  |
Current assets |  |  |
Cash and cash equivalents | $ | 56,673 |  |  | $ | 31,091 |
Trade and other receivables, net | 85,386 |  |  | 122,754 |
Supplies and consumables inventory | 4,201 |  |  | 4,726 |
Prepaid expenses | 8,622 |  |  | 16,140 |
Derivatives instruments | 4,310 |  |  | 5,336 |
Other assets | 7,321 |  |  | 7,261 |
| 166,513 |  |  | 187,308 |
Non-current assets |  |  |
Property, plant and equipment, net | 3,219,776 |  |  | 3,390,677 |
Intangible assets, net | 15,644 |  |  | 21,474 |
Long-term investments |  |  |
Long-term investment carried at fair value | — |  |  | 88,676 |
Other long-term investments | 277,634 |  |  | 474,211 |
Derivative instruments | 3,611 |  |  | 3,122 |
Deferred income taxes | — |  |  | 6,907 |
Other assets | 12,458 |  |  | 14,590 |
| 3,529,123 |  |  | 3,999,657 |
Total assets held for sale | 3,695,636 |  |  | 4,186,965 |
LIABILITIES ASSOCIATED WITH ASSETS HELD FOR SALE |  |  |
Current liabilities |  |  |
Accounts payable | $ | 23,048 |  |  | $ | 30,005 |
Accrued liabilities | 106,733 |  |  | 74,181 |
Other long-term liabilities | 756 |  |  | 1,068 |
Derivative instruments | 22,424 |  |  | 14,206 |
| 152,961 |  |  | 119,460 |
Non-current liabilities |  |  |
Long-term debt (a) | 1,348,727 |  |  | 1,015,875 |
Deferred income taxes | — |  |  | 12,638 |
Derivative instruments | 98,513 |  |  | 69,990 |
Pension and other post-employment benefits obligation | 228 |  |  | 157 |
Other long-term liabilities | 126,866 |  |  | 155,655 |
| 1,574,334 |  |  | 1,254,315 |
Total liabilities associated with assets held for sale | $ | 1,727,295 |  |  | $ | 1,373,775 |
As of December 31, 2024, the non-controlling interests - tax equity partnership units balance is $700,302 (2023 - $715,333), the other non-controlling interests balance is $291,677 (2023 - $277,203), the non-controlling interest, held by related parties balance is $nil (2023 - $1,912) and the redeemable non-controlling interest balance is $5,000 (2023 - $5,000). 24.Assets held for sale (continued) (b)Net income (loss) from discontinued operations The following table presents the results of the discontinued operations, which are included in loss from discontinued operations, net of tax in AQN’s consolidated statements of operations:
(thousands of U.S. dollars) |  | Years ended December 31 |
|  |  | 2024 | 2023 |
Revenue |  |  |  |  |
Non-regulated energy sales |  |  | $ | 276,083 |  | $ | 261,992 |  |
Other revenue |  |  | 63,647 |  | 32,099 |  |
|  |  | 339,730 |  | 294,091 |  |
Operating expenses |  |  | 192,942 |  | 146,902 |  |
Non-regulated energy purchased |  |  | 5,419 |  | 18,969 |  |
Depreciation and amortization |  |  | 80,992 |  | 112,917 |  |
Asset impairment charge |  |  | — |  | 22,011 |  |
Loss (gain) on foreign exchange |  |  | 12,485 |  | (5,300) |  |
|  |  | $ | 291,838 |  | 295,499 |  |
Operating income (loss) from discontinued operations |  |  | 47,892 |  | (1,408) |  |
Interest expense |  |  | (55,369) |  | (45,216) |  |
Income (loss) from long-term investments |  |  | (89,913) |  | 371 |  |
Loss on derivative financial instruments |  |  | (130,665) |  | — |  |
Loss on classification as held for sale |  |  | (1,357,343) |  | — |  |
Other net losses |  |  | (49,164) |  | (11,183) |  |
Pension and other post-employment non-service costs |  |  | (61) |  | (54) |  |
Loss before income taxes |  |  | (1,634,623) |  | (57,490) |  |
Income tax recovery |  |  | 128,347 |  | 49,245 |  |
Loss from discontinued operations |  |  | (1,506,276) |  | (8,245) |  |
Add: Net loss attributable to non-controlling interest |  |  | $ | 60,456 |  | $ | 51,362 |  |
Net income (loss) from discontinued operations attributable to AQN |  |  | $ | (1,445,820) |  | $ | 43,117 |  |
The Discontinued Operations’ held for sale assets include pre-tax impairments of $1,357,343 for the period ended December 31, 2024. The impairment was recorded to write-down the carrying amount of the property, plant and equipment based on the sale consideration. These losses were included in loss from discontinued operations, net of tax in AQN’s consolidated statements of operations. The impairment will be updated, if necessary, for any post-closing adjustments. In addition, hedge accounting was discontinued on all derivative financial instruments as the forecasted transactions being hedged are no longer probable. As a result, a loss of $94,593 was reclassified from accumulated other comprehensive income to Loss from Discontinued Operations, net of tax in AQN’s consolidated statements of operations as of December 31, 2024. The consideration from the sale included an earn-out component, the fair value of which was determined based on the expected cash flows from certain wind assets. These future cash flows have been discounted to reflect their current present values and recorded as contingent consideration on the consolidated balance sheets. 24.Assets held for sale (continued) (c)Cash flows from discontinued operations AQN has elected not to separately disclose discontinued operations on AQN’s consolidated statements of cash flows. The following table summarizes AQN’s cash flows from discontinued operations.
|  |  | Years ended December 31
|  |  |  |  | 2024 |  | 2023
Cash flows provided by (used in) |  |  |  |  |  |
Operating activities (1) |  |  |  |  | $ | 121,295 |  |  | $ | 128,464 |
Investing activities |  |  |  |  | (196,028) |  |  | (225,108) |
(1) For the year end ed December 31, 2024, operating activities include net changes in non-cash operating items of $13,912 (2023 - $(779)). (d)Long-term debt Long-term debt classified as held for sale consists of the following:
Borrowing type |  |  |  |  |  |  |  |  |  | Weighted average coupon |  | Maturity |  | Par value |  | December 31, |  | December 31,
|  |  |  |  |  |  |  |  |  |  | 2024 |  | 2023
Senior unsecured revolving credit facilities |  |  |  |  |  |  |  |  |  | — |  |  | 2027 |  | N/A |  | $ | 180,712 |  |  | $ | 262,609 |
U.S. dollar borrowings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Senior secured project notes |  |  |  |  |  |  |  |  |  | 5.75 | % |  | 2025 |  | $ | 475,032 |  |  | 475,148 |  |  | — |
Canadian dollar borrowings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Senior unsecured notes (i)(ii) |  |  |  |  |  |  |  |  |  | 3.75 | % |  | 2027-2031 |  | C$ | 1,000,000 |  |  | 692,832 |  |  | 753,266 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,348,692 |  |  | $ | 1,015,875 |
(i)Discontinuation of hedge accounting The Canadian dollar debt within the Company’s former renewable energy group (excluding hydro) and the related cross-currency interest rate swaps were classified as held for sale. A C$700,000 portion of the Canadian dollar debt was hedged using cross-currency interest rate swaps that were designated as cash flow hedges. Hedge accounting was discontinued on the cross-currency interest rate swaps when the former renewable energy group (excluding hydro) was classified as held for sale as the forecasted transaction being hedged was no longer probable. As a result, a loss of $16,685, net of tax was recorded in loss from discontinued operations due to the reclassification of the cash flow hedge reserve from OCI into earnings. (ii)Early extinguishment of debt Subsequent to year-end, on January 7, 2025, the Renewable energy group announced its intent to extinguish its outstanding Canadian Senior unsecured notes of C$1,000,000 in full and repay all outstanding principal and accrued interest amounts as of the redemption date. The outstanding Canadian Senior unsecured notes were repaid in full on February 6, 2025.

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- 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 -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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