Discontinued Operations and Held-For-Sale Businesses

9 Months Ended

Sep. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS AND HELD-FOR-SALE BUSINESSES

DISCONTINUED OPERATIONS AND HELD-FOR-SALE BUSINESSES

In addition to the businesses reported as discontinued operations in the 2012 Form 10-K, discontinued operations include the results of our Utility businesses in Ukraine sold in April 2013 and our Utility and Generation businesses in Cameroon and our wind generation business in India which met the held-for-sale criteria in September 2013. The following table summarizes the revenue, income from operations, income tax expense, impairment and loss on disposal of all discontinued operations for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2013			2012			2013			2012
	(in millions)
Revenue	$	124		$	232		$	539		$	759
Income from operations of discontinued businesses, before income tax	$	24		$	32		$	27		$	33
Income tax benefit (expense)	2			(2		)	(2		)	(8		)
Income from operations of discontinued businesses, after income tax	$	26		$	30		$	25		$	25
Net gain (loss) from disposal and impairments of discontinued businesses, after income tax	$	(78	)	$	(2	)	$	(111	)	$	68

Cameroon—In September 2013, a subsidiary of the Company executed sale agreements for the sale of AES White Cliffs B.V. (owner of 56% of AES SONEL S.A), AES Kribi Holdings B.V. (owner of 56% of Kribi Power Development Company S.A.) and AES Dibamba Holdings B.V., (owner of 56% of Dibamba Power Development Company S.A.). The transaction is subject to the Cameroon government approval and certain conditions precedent, which should be fulfilled or waived before March 31, 2014. The transaction is expected to close in the fourth quarter of 2013 or the first quarter of 2014. Upon meeting the held-for-sale criteria, the Company recognized impairments of $65 million representing the difference between their aggregate carrying amount of $262 million and fair value less costs to sell of $197 million. These businesses were previously reported in EMEA Generation segment and "Corporate and Other".

Saurashtra—In September 2013, the Company's management approved the sale of AES Saurashtra Private Ltd, a 39 MW wind project in India. The transaction is subject to lenders' approval and customary conditions precedent and is expected to close in the fourth quarter of 2013 or the first quarter of 2014. Upon meeting the held-for-sale criteria, the Company recognized an impairment of $12 million representing the difference between its carrying amount of $19 million and fair value less costs to sell of $7 million. Saurashtra was previously reported in the Asia Generation segment.

Ukraine Utilities sale — On April 29, 2013, the Company completed the sale of its two utility businesses in Ukraine to VS Energy International and received net proceeds of $113 million after working capital adjustments. The Company sold its 89.1% equity interest in AES Kyivoblenergo, which serves 881,000 customers in the Kiev region, and its 84.6% percent equity interest in AES Rivneoblenergo, which serves 412,000 customers in the Rivne region. The Company had recognized an impairment of $38 million upon fair value measurement during the first quarter of 2013. In the second quarter of 2013, an after- tax gain of $3 million was recognized upon the completion of the sale transaction. These businesses were previously reported in “Corporate and Other”.