SUPPLEMENTARY INFORMATION (Notes)

3 Months Ended

Mar. 31, 2021

Supplemental Cash Flow Elements [Abstract]

NOTE 6. SUPPLEMENTARY INFORMATION

Pass through costs

Pass through costs are costs for which we receive a direct contractually committed reimbursement from the public sector client that sponsors a WtE project. These costs generally include utility charges, insurance premiums, ash residue transportation and disposal, and certain chemical costs. These costs are recorded net of public sector client reimbursements as a reduction to Cost of operations in our condensed consolidated statement of operations.

Pass through costs were as follows (in millions):


	Three Months Ended March 31,
		2021		2020
Pass through costs		$	11	$	13

Impairment Charges

Due to the marginal outcome of our review of goodwill recorded for our CES reporting unit as of October 1, 2019, we continued to monitor the CES reporting unit for impairment through the end of the first quarter of 2020. We considered the economic impacts of the novel coronavirus ("COVID-19") pandemic and the decline in waste volumes from the commercial and industrial sectors to be a triggering event and reviewed the goodwill held at the CES reporting unit. We performed an interim impairment test via a quantitative valuation as of March 31, 2020. As a result, in the first quarter of 2020, we recorded an impairment of $16 million, net of tax benefit of $3 million, which represented the carrying amount of our CES reporting unit in excess of its estimated fair value as of the testing date. For the three months ended March 31, 2021, there were no indicators of impairment identified.

Equity Method Investments

Investments in investees and joint ventures accounted for under the equity method, included in Other assets on our condensed consolidated balance sheet, were as follows (in millions, except percentages):


	Ownership Interest as of March 31, 2021		March 31, 2021		Ownership Interest as of December 31, 2020		December 31, 2020
Dublin (Ireland)	50	%	$	149	50	%	$	153

Earls Gate (UK)	25	%	8		25	%	9
Rookery (UK)	40	%	11		40	%	4
Newhurst (UK)	25	%	13		25	%	9
Protos (UK)	37.5	%	3		37.5	%	6
Zhao County (China)	26	%	7		26	%	7
			$	191			$	188

For certain of our investment projects, a portion of the consideration received at financial close remained in the project. These amounts are expected to be utilized for future equity contributions in projects in the UK.

The consideration receivable balances included in prepaid expenses and other assets on our condensed consolidated balance sheets were as follows (in millions):


	March 31, 2021		December 31, 2020
Rookery (UK)	$	15	$	17
Newhurst (UK)	4		4
Protos (UK)	5		6
	$	24	$	27

In connection with certain equity method investments we made contributions in the form of shareholder loans. Our shareholder loan balances included in other assets - long term on our condensed consolidated balance sheets were as follows (in millions):


	March 31, 2021		December 31, 2020
Earls Gate (UK)	$	16	$	16
Newhurst (UK)	4		3
Protos (UK)	2		1
Zhao County (China)	9		9
	$	31	$	29

For additional information on our shareholder loans in connection with our equity method investments, see Note 9. Credit Losses.