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Fair Value (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Significant unobservable inputs, recurring
The following table summarizes the significant unobservable inputs used for the Level 3 derivative assets (liabilities) as of December 31, 2023 (in millions, except range amounts):
Type of DerivativeFair ValueUnobservable Input
Amount or Range
(Weighted Average)
Interest rate$(4)Subsidiary credit spread
0.4% - 3.3% (1.9%)
Foreign currency:
Argentine peso59 Argentine peso to USD currency exchange rate after one year
1,421 - 2,226 (1,879)
Commodity:
CAISO Energy Swap(107)Forward energy prices per MWh after 2030
$13.13 - $121.53 ($63.51)
Other(3)
Total$(55)
Derivatives Level 3 Rollforward Table
The following tables present a reconciliation of net derivative assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2023 and 2022 (presented net by type of derivative in millions). Transfers between Level 3 and Level 2 principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.
Derivative Assets and Liabilities
Year Ended December 31, 2023Interest RateForeign CurrencyCommodityContingent ConsiderationTotal
Balance at January 1$— $64 $(47)$(48)$(31)
Total realized and unrealized gains (losses):
Included in earnings— 16 (10)14 20 
Included in other comprehensive income — derivative activity1 6 (48)— (41)
Included in regulatory (assets) liabilities— — (1)— (1)
Acquisitions
— — — (239)(239)
Settlements(1)(27)(5)108 75 
Transfers of assets/(liabilities), net into Level 3(4)— — — (4)
Transfers of (assets)/liabilities, net out of Level 3— — 1 — 1 
Balance at December 31$(4)$59 $(110)$(165)$(220)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period$— $(4)$(13)$14 $(3)
Derivative Assets and Liabilities
Year Ended December 31, 2022Interest RateForeign CurrencyCommodityContingent ConsiderationTotal
Balance at January 1$(6)$108 $(1)$(67)$34 
Total realized and unrealized gains (losses):
Included in earnings4 (26)— 3 (19)
Included in other comprehensive income — derivative activity15 (6)(54)— (45)
Included in other comprehensive income — foreign currency translation activity— — — (2)(2)
Included in regulatory (assets) liabilities— — 8 — 8 
Acquisitions
— — — (24)(24)
Settlements(2)(12)2 42 30 
Transfers of assets/(liabilities), net into Level 3(1)— — — (1)
Transfers of (assets)/liabilities, net out of Level 3(10)— (2)— (12)
Balance at December 31$— $64 $(47)$(48)$(31)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period$3 $(34)$5 $3 $(23)
Financial instruments not measured at fair value in the condensed consolidated balance sheets
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 Consolidated Balance Sheets as of the periods indicated, but for which fair value is disclosed:
December 31, 2023
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Accounts receivable — noncurrent
$193 $239 $— $— $239 
Liabilities:Non-recourse debt22,144 22,174 — 20,676 1,498 
Recourse debt4,464 4,210 — 4,210 — 
December 31, 2022
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Accounts receivable — noncurrent (1)
$301 $340 $— $— $340 
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 Fund enacted by the Chilean government. These amounts are included in Other noncurrent assets in the accompanying Consolidated Balance Sheets. See Note 7—Financing Receivables for further information.
Significant unobservable inputs, nonrecurring
The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived asset groups held and used measured on a nonrecurring basis during the year ended December 31, 2023 (in millions, except range amounts):
December 31, 2023Fair ValueValuation TechniqueUnobservable InputRange (Weighted Average)
Long-lived asset groups held and used:
New York Wind$124 Discounted cash flowAnnual revenue growth
(1)% to 5% (2%)
Annual variable margin
2% to 17% (9%)
TEP94 Discounted cash flowAnnual revenue growth
(31)% to 6% (-2%)
Annual variable margin
22% to 37% (26%)
Discount rate
14% to 25% (14%)
TEG93 Discounted cash flowAnnual revenue growth
(7)% to 9% (0%)
Annual variable margin
14% to 33% (20%)
Discount rate
14% to 25% (14%)
Warrior Run (1)
25 Discounted cash flowAnnual variable margin
(931)% to 74% (-506%)
Norgener (2)
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%)
Discount rate
9%
Total$371 
_____________________________
(1)The fair value of the Warrior Run asset group is mainly related to cash on hand and existing coal inventory not subject to impairment under ASC 360-10, and is partially reduced by expected decommissioning and demolition costs.
(2)The fair value of the Norgener asset group subsequent to the impairment analysis performed on May 1, 2023 was mainly related to existing coal inventory not subject to impairment under ASC 360-10. In December 2023, the Company recognized an inventory impairment of $23 million in Other expense. See Note 21—Other Income and Expense for further information.
Fair value hierarchy for nonrecurring measurements table 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):
Year Ended December 31, 2023Measurement Date
Carrying Amount (1)
Fair Value
Pre-tax
Loss
AssetsLevel 1Level 2Level 3
Long-lived asset groups held and used: (2)
Norgener (3)
5/1/2023$196 $— $— $24 $137 
GAF Projects (AES Renewable Holdings)5/31/202329 — — 11 18 
TEG7/31/2023170 — — 93 77 
TEP7/31/2023153 — — 94 59 
New York Wind11/30/2023310 — — 124 186 
Warrior Run (4)
11/30/2023250 — — 25 198 
Held-for-sale businesses: (5)
Jordan (6)
3/31/2023$179 $— $170 $— $14 
Jordan (6)
6/30/2023179 — 170 — 15 
Jordan (6)
9/30/2023178 — 170 — 14 
Jordan (6)
12/31/2023180 — 170 — 16 
Mong Duong (7)
12/31/2023575 — 413 — 167 
Goodwill: (8)
TEG TEP10/1/2023$12 $— $— $— $12 
Year Ended December 31, 2022Measurement Date
Carrying Amount (1)
Fair Value
Pre-tax
Loss
AssetsLevel 1Level 2Level 3
Long-lived asset groups held and used: (2)
Maritza4/30/2022$920 $— $— $452 $468 
TEG10/1/2022268 — — 164 104 
TEP10/1/2022236 — — 147 89 
Held-for-sale businesses: (5)
Jordan (6)
9/30/2022$216 $— $170 $— $51 
Jordan (6)
12/31/2022190 170 25 
Goodwill: (8)
AES Andes10/1/2022$644 $— $— $— $644 
AES El Salvador10/1/2022133 — — — 133 
Equity method investments: (9)
sPower12/31/2022$607 $— $— $432 $175 
_____________________________
(1)Represents the carrying values at the dates of initial measurement, before fair value adjustment.
(2)See Note 22—Asset Impairment Expense for further information. Per ASC 360-10, the pre-tax impairment expense for long-lived asset groups held and used is limited to the carrying amount of the long-lived assets.
(3)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. 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.
(4)The Warrior Run asset group includes long-lived assets, inventory, 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. The Company evaluated the carrying amount of the assets outside the scope of ASC 360-10 and recognized an inventory impairment of $6 million in Other expense. See Note 21—Other Income and Expense for further information.
(5)See Note 24—Held-for-Sale and Dispositions for further information.
(6)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 for the September 30, 2022, December 31, 2022, and March 31, 2023 measurement dates and $6 million for the June 30, 2023, September 30, 2023 and December 31, 2023 measurement dates.
(7)The pre-tax loss recognized was calculated using the $413 million fair value of the Mong Duong disposal group less costs to sell of $5 million.
(8)See Note 9—Goodwill and Other Intangible Assets for further information.
(9)See Note 8—Investments in and Advances to Affiliates for further information.
AES Clean Energy Development Projects — On a quarterly basis, the Company reviews the status of development projects to identify projects that are no longer viable and will be abandoned. The fair value of each abandoned project with no salvage value is presumed to be zero as there are no future projected cash flows, resulting in a full write-off of the carrying value of project development intangibles and capitalized development costs incurred.
The Company recognized $151 million of pre-tax asset impairment expense in 2023, including $137 million during the fourth quarter, primarily related to the write-off of project development intangibles which were recognized at fair value when the Company acquired sPower's development platform as part of the formation of AES Clean Energy Development. See Note 22—Asset Impairment Expense for further information.
Fair value hierarchy for recurring measurements table The following table presents, by level within the fair value hierarchy as described in Note 1—General and Summary of Significant Accounting Policies, the Company's financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated (in millions). For the Company's investments in marketable debt securities, the security classes presented were determined based on the nature and risk of the security and are consistent with how the Company manages, monitors, and measures its marketable securities:
 December 31, 2023December 31, 2022
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
DEBT SECURITIES:
Available-for-sale:
Certificates of deposit$— $360 $— $360 $— $698 $— $698 
Government debt securities— — — — — 3 — 3 
Total debt securities— 360 — 360 — 701 — 701 
EQUITY SECURITIES:
Mutual funds46 — — 46 38 — — 38 
Total equity securities46 — — 46 38 — — 38 
DERIVATIVES:
Interest rate derivatives— 182 2 184 — 314 — 314 
Foreign currency derivatives— 15 59 74 — 22 64 86 
Commodity derivatives— 127 1 128 — 232 13 245 
Total derivatives — assets— 324 62 386 — 568 77 645 
TOTAL ASSETS$46 $684 $62 $792 $38 $1,269 $77 $1,384 
Liabilities
Contingent consideration
$— $— $165 $165 $— $— $48 $48 
DERIVATIVES:
Interest rate derivatives— 102 6 108 — 6 — 6 
Cross-currency derivatives— 63 — 63 — 42 — 42 
Foreign currency derivatives— 19 — 19 — 20 — 20 
Commodity derivatives— 145 111 256 — 346 60 406 
Total derivatives — liabilities— 329 117 446 — 414 60 474 
TOTAL LIABILITIES$— $329 $282 $611 $— $414 $108 $522 
Schedule of Realized Gain (Loss) The following table presents gross proceeds from sale of available-for-sale securities for the periods indicated (in millions):
Year Ended December 31,202320222021
Gross proceeds from sale of available-for-sale securities
$1,377 $1,065 $578