Other Income and Expense

9 Months Ended

Sep. 30, 2021

Other Income and Expenses [Abstract]

Other Income and Other Expense Disclosure [Text Block]

OTHER INCOME AND EXPENSE

Other income generally includes gains on insurance recoveries in excess of property damage, gains on asset sales and liability extinguishments, favorable judgments on contingencies, allowance for funds used during construction, and other income from miscellaneous transactions. Other expense generally includes losses on asset sales and dispositions, losses on legal contingencies, defined benefit plan non-service costs, and losses from other miscellaneous transactions. The components are summarized as follows (in millions):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
Other Income	Gain on remeasurement to acquisition-date fair value (1)	$	8	$	—	$	220	$	—
	Gain on remeasurement of contingent consideration (2)	32		—		32		—
	AFUDC (US Utilities)	2		2		6		4
	Gain on sale of assets (3)	1		—		2		43
	Other	5		4		14		13
	Total other income	$	48	$	6	$	274	$	60
Other Expense	Loss on sale and disposal of assets	$	6	$	4	$	13	$	6
	Loss on commencement of sales-type leases (4)	—		—		13		—
	Legal contingencies and settlements	2		12		2		14
	Other	4		4		4		7
	Total other expense	$	12	$	20	$	32	$	27

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(1)    For the three months ended September 30, 2021, primarily related to the $6 million remeasurement of our existing equity interest in Gas Natural Atlántico II, S. de. R.L.’s assets to their acquisition-date fair value. See Note 7—Investments in and Advances to Affiliates for further information. For the nine months ended September 30, 2021, primarily related to the $214 million remeasurement of our existing equity interest in sPower’s development platform as part of the step acquisition to form AES Clean Energy Development. See Note 19—Acquisitions for further information.

(2)    Related to the remeasurement of contingent consideration on the Great Cove Solar acquisition at Clean Energy. See Note 19—Acquisitions for further information.

(3)    Primarily associated with the gain on sale of Redondo Beach land at Southland for the nine months ended September 30, 2020. See Note 18—Held-for-Sale and Dispositions for further information.

(4)     Related to a loss recognized at commencement of a sales-type lease at AES Renewable Holdings. See Note 10—Leases for further information.