Other Non-Operating Expense

3 Months Ended

Sep. 30, 2012

OTHER NON-OPERATING EXPENSE

16. OTHER NON-OPERATING EXPENSE

Other non-operating expense for the nine months ended September 30, 2012 and 2011consisted ofthe other-than-temporaryimpairment of the following equity method investments:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(in millions)
InnoVent	$	-	$	-	$	17	$	-
China generation and wind		-		79		32		79
Other		-		3		1		3
Total other-non operating expense	$	-	$	82	$	50	$	82

InnoVent―During the first quarter of 2012, the Company concluded it was more likely than not that it would sell its interest in InnoVent S.A.S. (“InnoVent”), an equity method investment in France with wind generation projects totaling 75 MW. InnoVent had a carrying value of $36 million which exceeded its fair value of $19 million, resulting in an other-than-temporary impairment expense of $17 million. The sale transaction was completed on June 28, 2012.

China―During the first quarter of 2012, the Company concluded it was more likely than not that it would sell its interests in certain investments in China before the end of their joint venture terms. These investments include coal-fired, hydropower and wind generation facilities accounted for under the equity method of accounting. These were considered impairment indicators. In measuring the other-than-temporary impairment, the carrying value of $165 million of these investments was compared to their fair value of $133 million resulting in an other-than-temporary impairment expense of $32 million. The Company signed two separate sale agreements for the sale of these investments of which one was closed during the third quarter of 2012. See Note 18―Acquisitions and Dispositions for further information.