DISPOSITIONS (Notes)

12 Months Ended

Dec. 31, 2012

DISPOSITIONS [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 4. DISPOSITIONS

Dispositions and Other

Hartford Energy-from-Waste Facility

In May 2012, our contract with the Connecticut Resource Recovery Authority, under which we operated the boilers and turbines for the Hartford EfW facility, expired. The effect of the loss of revenues and related expenses from this contract is not material to our consolidated financial statements.

China Energy-from-Waste Facilities

We own a 40% equity interest in Chongqing Sanfeng Covanta Environmental Industry Co., Ltd. (“Sanfeng”).  During the three months ended June 30, 2012, Sanfeng sold its existing 32% interest in the Fuzhou EfW project in China.  Equity in net income from unconsolidated investments includes a $2 million gain for our equity interest in the sale of Sanfeng's interest in the Fuzhou EfW project. In a related transaction, Sanfeng increased its ownership interest in the Tongxing EfW facility in China from 25% to 40%. 

Landfill Gas Projects

In 2011, we sold two landfill gas projects located in California and received cash proceeds of approximately $12 million and recorded a gain of $9 million.

Discontinued Operations – Independent Power Production Facilities

In 2010, we adopted a plan to sell our interests in our fossil fuel independent power production (“IPP”) facilities in the Philippines, India, and Bangladesh. In 2011, we completed the sale of our majority equity interests in a 106 MW (gross) heavy fuel-oil fired electric power generation facility in Tamil Nadu, India (“Samalpatti”) and our interests in a 106 MW (gross) heavy fuel-oil fired electric power generation facility in Tamil Nadu, India (“Madurai”). The Madurai assets sold included our entire interest in Covanta Madurai Operating Private Limited, which provided operation and maintenance services to the facility, as well as our approximately 77% ownership interest in the project company, Madurai Power Corporation Private Ltd. In 2011, we also completed the sale of our interests in a 510 MW (gross) coal-fired electric power generation facility in the Philippines (“Quezon”). The Quezon assets sold consisted of our entire interest in Covanta Philippines Operating, Inc., which provided operation and maintenance services to the facility, as well as our 26% ownership interest in the project company, Quezon Power, Inc. In April 2012, we completed the sale of our interest in a barge-mounted  126 MW (gross) diesel/natural gas-fired electric power generation facility located near Haripur, Bangladesh, the last of the four Asia fossil fuel IPP assets designated as assets held for sale. We have realized total net proceeds of approximately $268 million, net of transaction costs, for the sale of these four IPP assets.

The assets and liabilities associated with these businesses were presented in our consolidated balance sheets as “Current Assets Held for Sale” and “Current liabilities Held for Sale” in 2011. The results of operations of these businesses are included in the consolidated statements of income as “Income (loss) earnings from discontinued operations, net of tax.” The cash flows of these businesses are also presented separately in our consolidated statements of cash flows.

The following table summarizes the operating results of the discontinued operations for the periods indicated (in millions):

	For the Years Ended December 31,
	2012			2011		2010
Revenues	$	—		$	84	$	152
Operating (income) expenses, including net gain on disposal of assets held for sale (1)	$	(3	)	$	54	$	(134	)
(Loss) income before income tax expense and equity in net income from unconsolidated investments	$	(3	)	$	138	$	20
Equity in net income from unconsolidated investments	$	2		$	8	$	24
(Loss) income from discontinued operations, net of income tax expense of $1, $3 and $8, respectively	$	(2	)	$	143	$	36

(1) During the years ended December 31, 2012, 2011 and 2010, we recorded a net after-tax (loss) gain on disposal of assets held for sale of $0, $119 million and $(8) million, respectively.

The following table sets forth the assets and liabilities of the assets held for sale included in the consolidated balance sheets as of the dates indicated (in millions):

	As of December 31,
	2012		2011
Cash and cash equivalents	$	—	$	2
Accounts receivable	—		1
Investments in investees and joint ventures	—		15
Assets held for sale	$	—	$	18
Accrued expenses and other	$	—	$	3
Liabilities held for sale	$	—	$	3