Held-for-Sale and Dispositions (Notes)

3 Months Ended

Mar. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

DISPOSITIONS AND HELD-FOR-SALE BUSINESSES

HELD-FOR-SALE AND DISPOSITIONS

Held-for-Sale

Warrior Run — On February 1, 2024, Warrior Run executed a receivable sale agreement, in which the remaining future cash flows from the Warrior Run termination agreement were assigned to a third party. The proceeds were used primarily to repay existing indebtedness and for general corporate purposes. Under the requirements of the PPA termination agreement, Warrior Run must satisfy performance obligations which continue through May 31, 2024. As a result, Warrior Run reclassified the related financing receivable as held-for-sale given its intent and ability to sell the receivable once the performance period has concluded. As of March 31, 2024, the carrying value of the receivable classified as held-for-sale was $214 million, including a valuation allowance of $6 million. Warrior Run is reported in the Energy Infrastructure SBU reportable segment.

Mong Duong — In November 2023, the Company entered into an agreement to sell its entire 51% ownership interest in Mong Duong 2, a coal-fired plant in Vietnam, and 51% equity interest in Mong Duong Finance Holdings B.V., an SPV accounted for as an equity affiliate (collectively "Mong Duong"). The sale is subject to regulatory approval and is expected to close in mid-2025. As a result, Mong Duong was 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 net assets after impairment of the plant held-for-sale as of March 31, 2024 was $410 million. Mong Duong is reported in the Energy Infrastructure SBU reportable segment.

Excluding any impairment charges, pre-tax income attributable to AES of businesses held-for-sale as of March 31, 2024 was as follows:

	Three Months Ended March 31,
(in millions)	2024		2023
Mong Duong	$	27	$	11

Management has recorded pre-tax asset impairment expense of $37 million at Mong Duong. As of March 31, 2024, the significant assets and liabilities of Mong Duong are a long-term financing receivable of $1 billion and debt of $638 million, respectively. See Notes 16—Asset Impairment Expense and 14—Revenue for further information.

Dispositions

Jordan — In March 2024, the Company completed the sale of approximately 26% ownership interest in the Amman East and IPP4 generation plants for a sale price of $58 million. After adjusting for dividends received since the execution of the sale and purchase agreement, the Company received a net cash payment of $45 million. The transaction resulted in a pre-tax loss on sale of $10 million, reported in Gain on disposal and sale of business interests on the Condensed Consolidated Statement of Operations. After completion of the sale, the Company retained 10% ownership interest in each of the businesses, resulting in deconsolidation and recognition as equity method investments. Amman East and IPP4 are reported in the Energy Infrastructure SBU reportable segment.