Financing Receivables

3 Months Ended

Mar. 31, 2024

Receivables with contractual maturities of greater than one year are considered financing receivables. The following table presents financing receivables by country as of the dates indicated (in millions):


	March 31, 2024						December 31, 2023
	Gross Receivable		Allowance		Net Receivable		Gross Receivable		Allowance		Net Receivable
U.S.	$	46	$	—	$	46	$	149	$	—	$	149
Chile	36		—		36		33		—		33



Other	10		—		10		11		—		11
Total	$	92	$	—	$	92	$	193	$	—	$	193

U.S. — AES has recorded non-current receivables pertaining to the sale of the Redondo Beach land. The anticipated collection period extends beyond March 31, 2025. As of December 31, 2023, a significant financing receivable existed for the Warrior Run PPA termination agreement where $108 million was recorded in Other non-current assets on the Consolidated Balance Sheets. On February 1, 2024, the Company executed an agreement to sell all remaining future cash flows under the termination agreement. At the time of execution, the transaction was considered a sale of future revenue under U.S. GAAP. As of March 31, 2024, the corresponding receivables met the held-for-sale criteria and were classified as Current held-for-sale assets on the Condensed Consolidated Balance Sheets. See Note 14—Revenue and Note 18—Held-For-Sale and Dispositions for further details regarding the Warrior Run PPA termination agreement.

Chile — AES Andes has recorded receivables pertaining to revenues recognized on regulated energy contracts that were impacted by the Stabilization Funds created by the Chilean government in October 2019 and August 2022, in conjunction with the Tariff Stabilization Laws. Historically, the government updated the prices for these contracts every six months to reflect the contracts' indexation to exchange rates and commodities prices. The Tariff Stabilization Laws do not allow the pass-through of these contractual indexation updates to customers beyond the pricing in effect at July 1, 2019, until new lower-cost renewables contracts are incorporated to supply regulated contracts. Consequently, costs incurred in excess of the July 1, 2019 price are accumulated and borne by generators. As of March 31, 2024, AES Andes aims to reduce its exposure through the sale of receivables.

On August 14, 2023, AES Andes executed an agreement to sell up to $227 million of receivables pursuant to the Stabilization Funds, of which $135 million was sold and collected as of March 31, 2024. Through different agreements and programs, as of March 31, 2024, $20 million of current receivables and $7 million of noncurrent receivables were recorded in Accounts receivable and Other noncurrent assets, respectively. Additionally, $29 million of payment deferrals granted to mining customers as part of our green blend agreements were recorded as financing receivables included in Other noncurrent assets at March 31, 2024.