Held-for-Sale and Dispositions (Notes)

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

DISPOSITIONS AND HELD-FOR-SALE BUSINESSES

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 plant in Jordan. In December 2019, the original sales agreement expired, and in April 2020, one of the potential buyers decided to withdraw from the transaction due to the uncertain economic conditions surrounding the COVID-19 pandemic. Nonetheless, the Company continues with an active process to complete the transaction and believes the sale of the plants remains probable. The sale of IPP1, IPP4 and the solar plant is expected to close in the second half of 2020. As of March 31, 2020, the generation plants and solar plant were classified as held-for-sale, but did not meet the criteria to be reported as discontinued operations. On a consolidated basis, the carrying value of the plants held-for-sale as of March 31, 2020 was $159 million. Pre-tax income attributable to AES was immaterial for the three months ended March 31, 2020 and March 31, 2019, respectively. Jordan is reported in the Eurasia SBU reportable segment.

Dispositions

Redondo Beach Land — In March 2020, the Company completed the sale of land held by AES Redondo Beach, a gas-fired generating facility in California. The land’s carrying value was $24 million, resulting in a pre-tax gain on sale of $41 million, reported in Other income on the Condensed Consolidated Statement of Operations. AES Redondo Beach will lease back the land from the purchaser for the remainder of the generation facility’s useful life. Redondo Beach is reported in the US and Utilities SBU reportable segment.