Discontinued Operations and Held For Sale Businesses

3 Months Ended

Sep. 30, 2011

DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES

16. DISCONTINUED OPERATIONS AND HELD FOR SALE BUSINESSES

Discontinued operations includes the results of the following generation businesses:

• Eletropaulo Telecomunicacões Ltda. and AES Communications Rio de Janeiro S.A (collectively “Brazil Telecom”), our Braziltelecommunication businesses (held for sale in September 2011);
• Eastern Energy, including Cayuga, Greenidge, Somerset and Westover, in New York(held for sale in March 2011);
• Borsod and Tiszapalkonya, in Hungary(held for sale in March 2011);
• Ras Laffan, in Qatar (sold in October 2010);
• Barka, in Oman (sold in August 2010); and
• Lal Pir and Pak Gen, in Pakistan (sold in June 2010).

For thenine months ended September 30, 2010, the Company recognized a gain on disposal and impairment losses totaling $57 million. TheCompany incurred a loss of $14 million, net of tax and noncontrolling interests on Lal Pir and Pak Gen as a result ofanincrease in net assets carrying value compared to the agreed upon sale proceeds.Additionally, the Company completed the sale of its interest in Barka in August 2010 and recognized a gain on disposal of $63 million, net of noncontrolling interests and $38 million of tax expense associated with the sale.

The following table summarizes the revenue, income from operations,income tax expense,impairmentand gain on sale of discontinued operationsfor the three and nine months ended September 30, 2011 and 2010:

		Three Months				Nine Months
		Ended September 30,				Ended September 30,
		2011		2010		2011		2010
		(in millions)
Revenue		$	107	$	218	$	327	$	948
(Loss) income from operations of discontinued businesses		$	(6)	$	37	$	(10)	$	115
Income tax benefit (expense)			31		(8)		33		(23)
Income from operations of discontinued
	businesses, net of tax	$	25	$	29	$	23	$	92
Gain on sale of discontinued operations		$	-	$	79	$	-	$	57