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Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Interest Rate And Cross Currency Derivatives By Type Table The following tables present the Company’s maximum notional (in millions) over the remaining contractual period by type of derivative as of June 30, 2023, regardless of whether they are in qualifying cash flow hedging relationships, and the dates through which the maturities for each type of derivative range:
Interest Rate and Foreign Currency DerivativesMaximum Notional Translated to USDLatest Maturity
Interest rate$7,062 2059
Cross-currency swaps (Brazilian real)404 2026
Foreign Currency:
Chilean peso173 2026
Euro142 2025
Colombian peso49 2024
Brazilian real28 2024
Mexican peso12 2024
Argentine peso3 2026
Commodity DerivativesMaximum NotionalLatest Maturity
Natural Gas (in MMBtu)108 2029
Power (in MWhs)18 2040
Coal (in Tons or Metric Tons)5 2027
Derivative Assets Liabilities At Fair Value Net By Balance Sheet Classification And Type Table The following tables present the fair value of assets and liabilities related to the Company’s derivative instruments as of the periods indicated (in millions):
Fair ValueJune 30, 2023December 31, 2022
AssetsDesignatedNot DesignatedTotalDesignatedNot DesignatedTotal
Interest rate derivatives$273 $— $273 $313 $1 $314 
Foreign currency derivatives29 57 86 27 59 86 
Commodity derivatives— 240 240 — 245 245 
Total assets$302 $297 $599 $340 $305 $645 
Liabilities
Interest rate derivatives$16 $— $16 $6 $— $6 
Cross-currency derivatives76 — 76 42 — 42 
Foreign currency derivatives3 19 22 9 11 20 
Commodity derivatives86 211 297 59 347 406 
Total liabilities$181 $230 $411 $116 $358 $474 
June 30, 2023December 31, 2022
Fair ValueAssetsLiabilitiesAssetsLiabilities
Current$310 $127 $271 $168 
Noncurrent289 284 374 306 
Total$599 $411 $645 $474 
Gain Loss In Earnings On Ineffective Portion Of Qualifying Cash Flow Hedges Table The following table presents the pre-tax gains (losses) recognized in AOCL and earnings related to all derivative instruments for the periods indicated (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives$160 $323 $22 $627 
Foreign currency derivatives4 (24)12 (12)
Commodity derivatives(4)32 (27)61 
Total$160 $331 $7 $676 
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives$13 $(23)$49 $(50)
Foreign currency derivatives(3)— (3)— 
Commodity derivatives(1)— 13 (1)
Total$9 $(23)$59 $(51)
Gains (losses) on fair value hedging relationship
Cross-currency derivatives$(33)$8 $(86)$(35)
Hedged items3 (25)53 22 
Total$(30)$(17)$(33)$(13)
Loss reclassified from AOCL to earnings due to impairment of assets$— $(16)$— $(16)
Gains (losses) reclassified from AOCL to earnings due to discontinuance of hedge accounting$13 $(15)14 (15)
Gains (losses) recognized in earnings related to
Not designated as hedging instruments:
Interest rate derivatives$— $1 $— $3 
Foreign currency derivatives4 4 — (15)
Commodity derivatives and other126 30 191 17 
Total$130 $35 $191 $5 
Fair Value Measurements, Recurring and Nonrecurring The following table summarizes our major categories of asset groups measured at fair value on a nonrecurring basis and their level within the fair value hierarchy (in millions).
Measurement Date
Carrying Amount (1)
Fair ValuePre-tax Loss
Six Months Ended June 30, 2023Level 1Level 2Level 3
Long-lived assets held and used:
Norgener (2)
5/1/2023$196 $— $— $24 $137 
GAF Projects (AES Renewable Holdings)5/31/202329 — — 11 18 
Held-for-sale businesses: (3)
Jordan (4)
3/31/2023$179 $— $170 $— $14 
Jordan (4)
6/30/2023179 — 170 — 15 
Measurement Date
Carrying Amount (1)
Fair Value
Six Months Ended June 30, 2022Level 1Level 2Level 3Pre-tax Loss
Long-lived assets held and used:
Maritza4/30/2022$927 $— $— $452 $475 
_____________________________
(1)Represents the carrying values of the asset groups at the dates of measurement, before fair value adjustment.
(2)The Norgener asset group includes long-lived assets, inventory, land, and other working capital, however per ASC 360-10, the pre-tax impairment expense is limited to the carrying amount of the long-lived assets. See Note 15 — Asset Impairment Expense for further information. The Company evaluated the carrying amount of the assets outside the scope of ASC 360-10 and determined that the carrying value of the other assets should not be reduced.
(3)See Note 16 — Held-for-Sale for further information.
(4)The pre-tax loss recognized was calculated using the $170 million fair value of the Jordan disposal group less costs to sell of $5 million and $6 million for the March 31, 2023 and June 30, 2023 measurement dates, respectively.
Fair Value Of Financial Instruments Not Carried At Fair Value [Table Text Block]
The following table presents (in millions) the carrying amount, fair value, and fair value hierarchy of the Company’s financial assets and liabilities that are not measured at fair value in the Condensed Consolidated Balance Sheets as of the periods indicated, but for which fair value is disclosed:
June 30, 2023
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Accounts receivable — noncurrent (1)
$295 $338 $— $— $338 
Liabilities:Non-recourse debt20,872 20,540 — 19,084 1,456 
Recourse debt5,476 5,093 — 5,093 — 
December 31, 2022
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Accounts receivable — noncurrent (1)
$255 $294 $— $— $294 
Liabilities:Non-recourse debt19,429 18,527 — 17,089 1,438 
Recourse debt3,894 3,505 — 3,505 — 
_____________________________
(1)These amounts primarily relate to amounts impacted by the Stabilization Funds enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets.
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]
The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets held and used measured on a nonrecurring basis during the six months ended June 30, 2023 (in millions, except range amounts):
Fair ValueValuation TechniqueUnobservable InputRange (Weighted Average)
Long-lived assets held and used:
Norgener (1)
$24 Discounted cash flowAnnual revenue growth
(90)% to 994% (85%)
Annual variable margin
(75)% to 276% (16%)
GAF Projects (AES Renewable Holdings)11 Discounted cash flowAnnual revenue growth
(42)% to 44% (1%)
Annual variable margin
(194)% to 77% (66%)
Discount rate
9%
Total$35 
_____________________________
(1)The fair value of the Norgener asset group is mainly related to existing coal inventory not subject to impairment under ASC 360-10.