Dispositions (Notes)

3 Months Ended

Mar. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

DISPOSITIONS AND HELD-FOR-SALE BUSINESSES

DISCONTINUED OPERATIONSDue to a portfolio evaluation in the first half of 2016, management decided to pursue a strategic shift to reduce the Company's exposure to the Brazilian distribution market. During 2017, Eletropaulo, the Company’s remaining distribution business in Brazil, met the criteria to qualify as a discontinued operation and its results of operations were reported as such. The disposal of Eletropaulo was completed in June 2018. Prior to its classification as discontinued operations, Eletropaulo was reported in the South America SBU reportable segment.HELD-FOR-SALE AND DISPOSITIONS

Held-for-Sale

Jordan — In February 2019, the Company entered into an agreement to sell its 36% ownership interest in two generation plants, IPP1 and IPP4, and a solar project under construction in Jordan for $86 million, plus capital contributions to the solar project of approximately $5 million. The sale of IPP1 and IPP4 is expected to close during the second quarter of 2019, and the sale of the solar project during the second half of 2019, once construction is completed. As of March 31, 2019, IPP1 and IPP4 were classified as held-for-sale, but did not meet the criteria to be reported as discontinued operations. The solar project under construction did not meet the held-for-sale criteria. On a consolidated basis, the carrying value of the plants held-for-sale as of March 31, 2019 was $105 million. Pre-tax income attributable to AES was immaterial for the three months ended March 31, 2019 and 2018. Jordan is reported in the Eurasia SBU reportable segment.

Shady Point — In December 2018, the Company entered into an agreement to sell Shady Point, a U.S. coal-fired generating facility, for $30 million, subject to customary purchase price adjustments. The sale is subject to regulatory approval and is expected to close during the second half of 2019. As of March 31, 2019, Shady Point was classified as held-for-sale, but did not meet the criteria to be reported as discontinued operations. Shady Point's carrying value as of March 31, 2019 was $30 million. Pre-tax income attributable to AES was immaterial for the three months ended March 31, 2019 and 2018. Shady Point is reported in the US and Utilities SBU reportable segment.

Redondo Beach — In October 2018, the Company entered into an agreement to sell land held by AES Redondo Beach, a gas-fired generating facility in California. The sale is expected to close during 2019. As of March 31, 2019, the $24 million carrying value of the land held by Redondo Beach was classified as held-for-sale. Redondo Beach is reported in the US and Utilities SBU reportable segment.

Dispositions

Masinloc — In March 2018, the Company completed the sale of its entire 51% equity interest in Masinloc for cash proceeds of $1.05 billion, resulting in a pre-tax gain on sale of $777 million after post-closing adjustments, subject to U.S. income tax. Masinloc consisted of a coal-fired generation plant in operation, a coal-fired generation plant under construction, and an energy storage facility all located in the Philippines. The sale did not meet the criteria to be reported as discontinued operations. Prior to its sale, Masinloc was reported in the Eurasia SBU reportable segment.

DPL peaker assets — In March 2018, DPL completed the sale of six of its combustion turbine and diesel-fired generation facilities and related assets ("DPL peaker assets") for total proceeds of $239 million, inclusive of estimated working capital and subject to customary post-closing adjustments, resulting in a loss on sale of $2 million. The sale did not meet the criteria to be reported as discontinued operations. Prior to their sale, the DPL peaker assets were reported in the US and Utilities SBU reportable segment.

Beckjord facility — In February 2018, DPL transferred its interest in Beckjord, a coal-fired generation facility retired in 2014, including its obligations to remediate the facility and its site. The transfer resulted in cash expenditures of $15 million, inclusive of disposal charges, and a loss on disposal of $12 million. Prior to the transfer, Beckjord was reported in the US and Utilities SBU reportable segment.

Advancion Energy Storage — In January 2018, the Company deconsolidated the AES Advancion energy storage development business and contributed it to the Fluence joint venture, resulting in a gain on sale of $23 million. Prior to the transfer, the AES Advancion energy storage development business was reported as part of Corporate and Other.

There was no pre-tax income attributable to AES for the three months ended March 31, 2019 associated with businesses disposed of during the three months ended March 31, 2018. Excluding any impairment charges or gain/loss on sale, pre-tax income attributable to AES of disposed businesses for the three months ended March 31, 2018 was as follows:

	Three Months Ended March 31,
(in millions)	2018
Masinloc	$	9
DPL peaker assets	7
Total	$	16