DISPOSITIONS AND DISCONTINUED OPERATIONS (Notes)

12 Months Ended

Dec. 31, 2016

Dispositions [Abstract]

Dispositions and Discontinued Operations

DISPOSITIONS, ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

Dispositions

China Investments

Our interests in China included an 85% ownership of an EfW facility located in Jiangsu Province ("Taixing"), a 49% equity interest in an EfW facility located in Sichuan Province and a 40% equity interest in Chongqing Sanfeng Covanta Environmental Industry Co., a company located in the Chongqing Municipality that is engaged in the business of providing design and engineering, procurement, construction services and equipment sales for EfW facilities in China, as well as operating services for EfW facilities. During 2016, we completed the exchange of our project ownership interests in China for a 15% ownership interest in Chongqing Sanfeng Environmental Industrial Group, Co., Ltd ("Sanfeng Environment") and subsequently sold approximately 90% of that interest to a third-party, a subsidiary of CITIC Limited, a leading Chinese industrial conglomerate and investment company. As a result, during the year ended December 31, 2016, we recorded a pre-tax gain of $41 million. We received pre-tax proceeds of $105 million. The gain resulted from the excess of pre-tax proceeds over the cost-method book value of $70 million, plus $5 million of realized gains on the related cumulative foreign currency translation adjustment, that were reclassified out of other comprehensive income. Subsequent to completing the exchange, Sanfeng Environment has made certain claims for indemnification under the agreement related to the condition of the facility in Taixing. To the extent that any payment is made related to these claims, such amount could reduce the gain as recorded in a future period.

In connection with these transactions, we entered into foreign currency exchange collars and forwards to hedge against rate fluctuations that impacted the cash proceeds in U.S. dollar terms. For more information, see Note 13.Derivative Instruments.

As of December 31, 2016, our remaining cost-method investment in Sanfeng Environment totaled $7 million and was included in our consolidated balance sheet as a component of "Other assets". There were no impairment indicators related to our cost-method investment during the year ended December 31, 2016.

Insurance Business

During 2014, we sold our insurance subsidiary and recorded a non-cash impairment charge of $14 million comprised of the write-down of the carrying amount in excess of the realizable fair value of $12 million, plus $2 million in disposal costs.

Assets Held for Sale Summary

During the second quarter of 2015, we determined that the assets and liabilities associated with our interests in China met the criteria for classification as Assets Held for Sale, but did not meet the criteria for classification as Discontinued Operations. In making this determination, we evaluated our consolidated subsidiary, Taixing, as well as our Sanfeng and Chengdu equity method investments as a single disposal group under the applicable accounting guidance.

The assets and liabilities associated with our China investments are presented in our consolidated balance sheets as current "Assets Held for Sale” and current "Liabilities Held for Sale.” 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,
	2016		2015
Cash and cash equivalents	$	—	$	2
Receivables	—		3
Prepaid expenses and other current assets	—		1
Property, plant and equipment, net	—		49
Other noncurrent assets	—		42
Assets held for sale	$	—	$	97
Current portion of project debt	$	—	$	3
Accounts payable	—		3
Accrued expenses and other current liabilities	—		5
Project debt	—		12
Liabilities held for sale	$	—	$	23

Discontinued Operations Summary

During the fourth quarter of 2013, assets related to our development activities in the United Kingdom met the criteria to be presented in discontinued operations. The results of operations of these businesses for the year ended December 31, 2014 was comprised of Other operating revenue of $1 million and Other operating expense of $1 million. The cash flows of these businesses for the year ended December 31, 2014 were presented separately in our consolidated statements of cash flows.