INVESTMENTS IN AND ADVANCES TO AFFILIATES

The following table summarizes the relevant effective equity ownership interest and carrying values for the Company’s investments accounted for under the equity method as of the periods indicated.



		December 31,
		2014		2013		2014		2013
Affiliate	Country	Carrying Value (in millions)				Ownership Interest %
Silver Ridge Power	Various	$	—	$	281	—	%	50	%
Solar Power PR	Puerto Rico	2		10		50	%	50	%
Barry⁽¹⁾	United Kingdom	—		—		100	%	100	%
Elsta⁽¹⁾	Netherlands	54		120		50	%	50	%
Entek	Turkey	—		165		—	%	50	%
Guacolda⁽²⁾	Chile	285		245		35	%	35	%
OPGC⁽³⁾	India	194		186		49	%	49	%
Other affiliates	Various	2		3
Total investments in and advances to affiliates		$	537	$	1,010


⁽¹⁾	Represent VIEs in which the Company holds a variable interest but is not the primary beneficiary.


⁽²⁾	The Company's ownership in Guacolda is held through AES Gener, a 71%-owned consolidated subsidiary. AES Gener owns 50% of Guacolda, resulting in an AES effective ownership in Guacolda of 35%.


⁽³⁾	OPGC has one coal-fired expansion project under development with a total capacity of 1,320 MW. The project started construction in April 2014 and is currently expected to begin operations in 2018. As of December 31, 2014, total capitalized costs at the project level were $186 million (AES share of $91 million).

Silver Ridge Power

On July 1, 2014, the Puerto Rico solar business, Solar Power PR, LLC, was distributed by Silver Ridge Power, LLC (“SRP”) to AES and Riverstone Holdings LLC and is now accounted for as a direct equity method investment. On July 2, 2014, the Company closed the sale of its 50% ownership interest in SRP for a purchase price of $179 million, excluding the Company’s indirect ownership interests in SRP’s solar generation businesses in Italy and Spain. The buyer also has an option to purchase the Company's indirect 50% interest in the Italy solar generation business for an additional consideration of $42 million by August 2015.

Currently, this transaction does not qualify as a sale for accounting purposes as the Company has continuing involvement in the business operations. Once the Company ceases its involvement in SRP's business operations, the transaction will then be considered a sale of real estate. As of July 2, 2014, the Company no longer retained an equity interest in SRP. As such, the then- remaining investment balance of $32 million related to Italy and Spain and the AOCL balance of $40 million were reclassified to "Other noncurrent assets" on the Consolidated Balance Sheets. As of December 31, 2014, the carrying value of these investments recorded in Other noncurrent assets was $64 million.

AES Barry Ltd.

The Company holds a 100% ownership interest in AES Barry Ltd. (“Barry”), a dormant entity in the United Kingdom that disposed of its generation and other operating assets. Due to a debt agreement, no material financial or operating decisions can be made without the banks’ consent, and the Company does not control Barry. As of December 31, 2014 and 2013, other long-term liabilities included $52 million and $55 million related to this debt agreement.

Elsta

In 2014, long lived assets within Elsta were determined to not be recoverable and an impairment charge of approximately$82 million was recognized. The Company recognized its 50% share, or $41 million, through its proportion of the equity earnings in Elsta.

During 2013 the Company recognized a $129 million other-than-temporary impairment of its investment in the Elsta JV. For additional information see Note 9—Other Non-Operating Expense.

Entek

In September 2014, the Company executed an agreement, subject to the approval of the Company’s Board of Directors, to sell its equity interest in AES Entek. Based on this agreement, 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. On October 13, 2014, the Company entered into a binding agreement to sell its 49.62% ownership interest in Entek for a purchase price of $125 million. This resulted in the recognition of an additional other-than-temporary impairment of $68 million due to the inclusion of the cumulative translation adjustment in the carrying value of the investment. For additional information see Note 9—Other Non-Operating Expense. The sale represents 100% of the Company's interest in assets in Turkey. On December 18, 2014, the transaction closed which resulted in a final loss on sale of $4 million. Entek does not meet the criteria to be reported as discontinued operations under ASU No. 2014-08, which was adopted by the Company on July 1, 2014. Accordingly, AES' proportion of Entek's results are reflected in the Consolidated Statements of Operations within continuing operations. Excluding the loss on sale, Entek's pretax loss attributable to AES was $9 million, $29 million and $12 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Guacolda

On April 11, 2014, AES Gener undertook a series of transactions, pursuant to which AES Gener acquired the interests that it did not previously own in Guacolda for $728 million and simultaneously sold the ownership interest to Global Infrastructure Partners ("GIP") for $730 million. The transaction provided GIP with substantive participating rights in Guacolda and, as a result, the Company continues to account for its investment in Guacolda using the equity method of accounting. At no time during this transaction did the Company acquire a non-controlling interest. The cash paid for the acquisition is reflected in "Acquisitions, net of cash acquired" and the cash proceeds from the sale of these ownership interests to GIP is reflected in "Proceeds from the sale of businesses, net of cash sold" on the Consolidated Statement of Cash Flows for the period ended December 31, 2014.

Summarized Financial Information

The following tables summarize financial information of the Company’s 50%-or-less-owned affiliates and majority-owned unconsolidated subsidiaries that are accounted for using the equity method.



	50%-or-less Owned Affiliates						Majority-Owned Unconsolidated Subsidiaries
Years ended December 31,	2014		2013		2012		2014			2013			2012
	(in millions)						(in millions)
Revenue	$	928	$	1,099	$	1,868	$	2		$	2		$	106
Operating margin	206		295		355		—			—			26
Net income (loss)	59		53		146		—			—			(5		)

December 31,	2014		2013				2014			2013
	(in millions)						(in millions)
Current assets	$	450	$	842			$	—		$	1
Noncurrent assets	1,748		3,722				15			20
Current liabilities	299		600				—			1
Noncurrent liabilities	935		2,096				67			75
Noncontrolling interests	17		15				—			—
Stockholders’ equity	947		1,853				(52		)	(55		)

At December 31, 2014, retained earnings included $159 million related to the undistributed earnings of the Company’s 50%-or-less owned affiliates. Distributions received from these affiliates were $28 million, $6 million, and $22 million for the years ended December 31, 2014, 2013, and 2012, respectively. As of December 31, 2014, the aggregate carrying amount of our investments in equity affiliates exceeded the underlying equity in their net assets by $203 million.