Acquisitions Acquisitions

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

Dispositions

Armenia Mountain — On July 1, 2015, the Company completed the sale of its interest in Armenia Mountain, a wind project in Pennsylvania. Net proceeds from the sale were $64 million and the Company recognized a pretax gain on sale of $22 million. As Armenia Mountain does not meet the criteria to be reported as a discontinued operation, its results are reflected within continuing operations in the Consolidated Statements of Operations. Excluding the gain on sale, Armenia Mountain's pretax income attributable to AES was $6 million, $7 million, and $4 million for the years ended December 31, 2015, 2014, and 2013, respectively. Prior to its sale, Armenia Mountain was reported in the US SBU reportable segment. See Note 23—Discontinued Operations for more information about transactions preceding the sale.

Ebute — On November 20, 2014, the Company completed the sale of its interest in Ebute, which included its 95% interest in AES Nigeria Barge Limited and its 100% interest in AES Nigeria Barge Operations Limited. Proceeds from the sale were $22 million and the Company recognized a $6 million loss on the sale in the fourth quarter of 2014. As Ebute does not meet the criteria to be reported as a discontinued operation, its results are reflected within continuing operations in the Consolidated Statements of Operations. Excluding the loss on sale, Ebute's pretax (loss) attributable to AES was $(27) million and $(29) million for the years ended December 31, 2014 and 2013, respectively. Prior to its sale, Ebute was reported in the Europe SBU reportable segment.

U.K. Wind (Operating Projects) — On August 22, 2014, the Company sold 100% of its interests in four operating wind projects located in the U.K.. Total net proceeds from the sale were $158 million and the Company recognized a pretax gain on sale of $78 million. As these wind projects do not meet the criteria to be reported as discontinued operations, their results are reflected within continuing operations in the Consolidated Statements of Operations. Excluding the gain on sale, the pretax income (loss) attributable to AES for these disposed projects was $(18) million and $3 million for the years ended December 31, 2014 and 2013, respectively. Prior to the sale, U.K. Wind (Operating Projects) were reported in the Europe SBU reportable segment.

Cartagena — On April 26, 2013, the Company sold its remaining interest in Cartagena, a gas-fired generation business in Spain, upon the exercise of a purchase option included in the 2012 sale agreement where the Company sold its majority interest in the business. Net proceeds from the exercise of the option were approximately $24 million and the Company recognized a pretax gain of $20 million during the second quarter of 2013. Prior to its sale, Cartagena was reported in the Europe SBU reportable segment.

ACQUISITIONS

Main Street Power — On February 18, 2015, the Company completed the acquisition of 100% of the common stock of Main Street Power Company, Inc. for approximately $25 million, pursuant to the terms and conditions of a definitive agreement dated January 24, 2015. The purchase consideration was composed of $20 million cash and the fair value of earn-out payments of $5 million. At December 31, 2015, the assets acquired (including $4 million cash) and liabilities assumed at the acquisition date were recorded at fair value based on the final purchase price allocation, which resulted in the recognition of $16 million of goodwill. Subsequent changes to the fair value of earn-out payments will be reflected in earnings.