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Other Non-Operating Expense
9 Months Ended
Sep. 30, 2014
Other Income and Expenses [Abstract]  
Other Non-Operating Expense
OTHER NON-OPERATING EXPENSE
Silver Ridge — During the second quarter of 2014, the Company determined that there was a decline in the fair value of its equity method investment in SRP that was other than temporary based on indications about the fair value of the projects in Italy and Spain that resulted from actual and proposed changes to their tariffs. For the nine months ended September 30, 2014, the Company has recognized a pretax impairment loss of $42 million in other non-operating expense. The transaction related to our 50% ownership interest in SRP closed on July 2, 2014 for $179 million. See Note 7Investments in and Advances to Affiliates, of this Form 10-Q for further information.
Entek — In September 2014, the Company executed an agreement, subject to the approval of the Company’s Board of Directors, to sell its 49.62% equity interest in AES Entek for $125 million. AES Entek consists of 364 MW of natural gas and hydroelectric generation facilities, plus a coal-fired development project. During the third quarter of 2014, the Company determined there was an other-than-temporary decline in the fair value of its equity method investment in AES Entek and recognized a pretax impairment loss of $18 million in other non-operating expense. As of September 30, 2014, the Company’s Board of Directors had not approved the sale and, accordingly, the impairment recognized during the third quarter excluded the cumulative translation adjustment (“CTA”) related to AES Entek of $68 million.
In October 2014, the Company’s Board of Directors approved the sale of AES Entek. This will result in the recognition of additional impairment expense related to the CTA in the fourth quarter of 2014. The sale is expected to close during the first quarter of 2015 and is subject to customary regulatory approvals.