Discontinued Operations and Held-For-Sale Businesses

12 Months Ended

Dec. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS AND HELD-FOR-SALE BUSINESSES

DISCONTINUED OPERATIONS

As discussed in Note 1—General and Summary of Significant Accounting Policies, effective July 1, 2014, the Company prospectively adopted ASU No. 2014-08. There have been no businesses classified as discontinued operations subsequent to this ASU adoption. Discontinued operations prior to adoption of ASU No. 2014-08 include the results of the following businesses:

• Cameroon (sold in June 2014)

• Saurashtra (sold in February 2014)

• U.S. wind projects (sold in January 2014)

• Poland wind projects (sold in November 2013)

• Ukraine utilities (sold in April 2013)

The following table summarizes revenue, income from operations, income tax expense, and impairment and loss on disposal of all discontinued operations prior to the adoption of ASU No. 2014-08 for the periods indicated (in millions):

Years Ended December 31,	2014			2013
Revenue	$	233		$	689
Income (loss) from operations of discontinued businesses, before income tax	$	50		$	(3	)
Income tax expense	(23		)	(24		)
Income (loss) from operations of discontinued businesses, after income tax	$	27		$	(27	)
Net loss from disposal and impairments of discontinued businesses, after income tax	$	(56	)	$	(152	)

Cameroon — In September 2013, the Company executed agreements for the sale of its 56% equity interests in three businesses in Cameroon: Sonel, an integrated utility, Kribi, a gas and light fuel oil plant, and Dibamba, a heavy fuel oil plant. The sale was completed in June 2014. Net proceeds from the sale transaction were $200 million, with $156 million received and non-contingent consideration of $44 million to be received in 2016. Between meeting the held-for-sale criteria in September 2013 and completing the sale in June 2014, the Company recognized impairments of $101 million and an additional loss on sale of $7 million. These businesses were previously reported in the Europe SBU reportable segment.

Saurashtra — In October 2013, the Company executed an agreement for the sale of Saurashtra, a wind project in India. The sale transaction was completed in February 2014 and net proceeds of $8 million were received. Saurashtra was previously reported in the Asia SBU reportable segment.

U.S. wind projects — In November 2013, the Company executed an agreement for the sale of its 100% membership interests in three wind projects: Condon in California, Lake Benton I in Minnesota and Storm Lake II in Iowa. Upon meeting the held-for-sale criteria for these three projects, the Company recognized impairment expense of $47 million (of which $7 million was attributable to noncontrolling interests held by tax equity partners) representing the difference between their aggregate carrying amount of $77 million and the fair value less costs to sell of $30 million. The sale transaction closed in January 2014 and net proceeds of $27 million were received. These businesses were previously reported in the US SBU reportable segment.

Under the terms of the sale agreement, the buyer was provided an option to purchase the Company's 100% interest in Armenia Mountain, a wind project in Pennsylvania at a fixed price of $75 million. Approximately $3 million of the $27 million net proceeds was deferred and allocated to this option. The buyer exercised the option in March 2015 and the sale was completed in July 2015. See Note 24—Dispositions and Held-For-Sale Businesses for further information.

Poland wind projects — In November 2013, the Company completed the sale of Poland Wind, a wholly-owned subsidiary with ownership interests ranging between 61%–89% in ten wind development projects. Net proceeds from the sale transaction were $7 million and a loss on disposal of $2 million was recognized. In the third quarter of 2013, the Company recognized impairments of $65 million on these projects when they were classified as held and used. Poland Wind was previously reported in the Europe SBU reportable segment.

Ukraine utilities — In April 2013, the Company completed the sale of its two utility businesses in Ukraine and received net proceeds of $113 million. The Company sold its 89.1% equity interest in Kyivoblenergo and its 84.6% equity interest in Rivneoblenergo. The Company recognized net impairments of $38 million during 2013. These businesses were previously reported in the Europe SBU reportable segment.

Held-For-Sale Businesses

DPLER — In December 2015, the Company executed an agreement for the sale of its ownership interest in DPLER, a competitive retail marketer selling electricity to customers in Ohio. Accordingly, DPLER has been classified as held-for-sale as of December 31, 2015, but does not meet the criteria to be reported as a discontinued operation. DPLER's results are therefore reflected within continuing operations in the Consolidated Statements of Operations. DPLER's pretax income attributable to AES was $11 million, $(129) million and $6 million for the years ended December 31, 2015, 2014 and 2013, respectively. The sale of DPLER was completed on January 1, 2016 and proceeds of $76 million were received on December 31, 2015. The proceeds were classified as restricted cash with a corresponding amount recorded in accrued and other liabilities in the Consolidated Balance Sheet as of December 31, 2015. DPLER is reported in the US SBU reportable segment.

Kelanitissa — In August 2015, the Company executed an agreement for the sale of its 90% ownership interest in Kelanitissa, a diesel-fired generation plant in Sri Lanka. Accordingly, Kelanitissa has been classified as held-for-sale as of December 31, 2015, but does not meet the criteria to be reported as a discontinued operation. Kelanitissa's results are therefore reflected within continuing operations in the Consolidated Statements of Operations. Kelanitissa's pretax income (loss) attributable to AES was $(7) million, $1 million, and $16 million for the years ended December 31, 2015, 2014 and 2013, respectively. The sale of Kelanitissa was completed on January 27, 2016 and proceeds of $18 million were received. Kelanitissa is reported in the Asia SBU reportable segment.