Other Non-operating Expense Other Non-operating Expense

9 Months Ended

Sep. 30, 2013

Other Income and Expenses [Abstract]

OTHER NON-OPERATING EXPENSE

OTHER NON-OPERATING EXPENSE

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2013		2012		2013		2012
	(in millions)
Elsta	$	122	$	—	$	122	$	—
China generation	—		—		—		32
InnoVent	—		—		—		17
Other	—		—		—		1
Total other non-operating expense	$	122	$	—	$	122	$	50

Elsta—Elsta BV & Co CV ("Elsta"), a 630 MW combined cycle gas-fired plant in the Netherlands, is accounted for under the equity method of accounting. The Company evaluates its equity method investments for impairment whenever certain indicators are present suggesting that the fair value of an equity method investment is less than its carrying value and the evaluation would consider whether the decline is other-than-temporary. This analysis requires a significant amount of judgment to identify events or circumstances indicating than an equity method investment may be impaired. Once an impairment indicator is identified, the Company must determine if an impairment exists, and if so, whether the impairment is other-than-temporary in which case the equity method investment is written down to its estimated fair value. During the quarter ended September 30, 2013, the Company identified an impairment indicator resulting from initial negotiations with Elsta's offtakers for an extension of the existing power purchase agreement ("PPA") which expires during 2018, suggesting that the income earned under the existing PPA would likely be reduced upon an extension and that the resulting decline in the estimated fair value of the Company's equity method investment in Elsta was other-than-temporary. The Company recognized an impairment of $122 million by reducing the carrying value of $240 million to the estimated fair value of $118 million. The Company estimated fair value using probability-weighted outcomes which contemplated various scenarios involving the amendments to the existing PPA.

China Generation and InnoVent—In the first quarter of 2012, the Company concluded that it was more likely than not that it would sell its interest in its equity method investments in China and France and recorded other-than-temporary impairments of $32 million and $17 million, respectively.