v3.25.2
Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Interest Rate And Cross Currency Derivatives By Type Table The following tables present the Company’s maximum notional (in millions) over the remaining contractual period by type of derivative as of June 30, 2025, and the dates through which the maturities for each type of derivative range:
Interest Rate and Foreign Currency DerivativesMaximum Notional Translated to USD
Latest Maturity (1)
Interest rate$11,441 2058
Foreign currency:
Colombian peso180 2027
Euro153 2026
Chilean peso141 2028
Mexican peso77 2026
Commodity DerivativesMaximum NotionalLatest Maturity
Natural Gas (in MMBtu)260 2029
Power (in MWhs) (2)
65 2040
Coal (in Metric Tons)4 2028
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(1)Maturity dates are consistent for both designated and non-designated positions.
(2)Includes one contract designated as a cash flow hedge with a final maturity date in 2038.
Derivative Assets Liabilities At Fair Value Net By Balance Sheet Classification And Type Table The following tables present the fair value of the Company’s derivative assets and liabilities as of the dates indicated (in millions):
Fair ValueJune 30, 2025December 31, 2024
AssetsDesignatedNot DesignatedTotalDesignatedNot DesignatedTotal
Interest rate derivatives$181 $2 $183 $349 $— $349 
Foreign currency derivatives11 34 45 16 45 61 
Commodity derivatives— 220 220 4 274 278 
Total assets (1)
$192 $256 $448 $369 $319 $688 
Liabilities
Interest rate derivatives$76 $— $76 $15 $— $15 
Foreign currency derivatives4 21 25 10 8 18 
Commodity derivatives27 227 254 29 226 255 
Total liabilities (1)
$107 $248 $355 $54 $234 $288 
June 30, 2025December 31, 2024
Fair ValueAssetsLiabilitiesAssetsLiabilities
Current$302 $199 $369 $170 
Noncurrent146 156 319 118 
Total (1)
$448 $355 $688 $288 
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(1)Includes $3 million of derivative assets reported in Current held-for-sale assets and $3 million of derivative liabilities reported in Current held-for-sale liabilities on the Condensed Consolidated Balance Sheets related to Dominican Republic Renewables as of December 31, 2024.
Gain Loss In Earnings On Ineffective Portion Of Qualifying Cash Flow Hedges Table The following table presents the pre-tax gains (losses) recognized in AOCL and earnings related to all derivative instruments for the periods indicated (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives$(19)$115 $(185)$340 
Foreign currency derivatives3 (1)7 (10)
Commodity derivatives(30)— — 28 
Total$(46)$114 $(178)$358 
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives — Interest expense
$(6)$(31)$9 $(30)
Foreign currency derivatives — Foreign currency transaction gains (losses)
2 1 5 2 
Commodity derivatives — Cost of sales—Non-Regulated
1 — 3 — 
Total$(3)$(30)$17 $(28)
Gains (losses) on fair value hedging relationships
Cross-currency derivatives
Derivatives designated as hedging instruments$— $50 $— $(6)
Hedged items— (48)— (5)
Total$— $2 $— $(11)
Gains reclassified from AOCL to earnings due to change in forecast
$— $11 $8 $11 
Gain (losses) recognized in earnings related to
Not designated as hedging instruments:
Interest rate derivatives — Interest expense$— $1 $— $1 
Foreign currency derivatives — Foreign currency transaction gains (losses)(7)45 (9)58 
Commodity derivatives — Revenue—Non-Regulated(62)17 (39)112 
Commodity derivatives — Cost of sales—Non-Regulated(9)(15)(14)(19)
Total$(78)$48 $(62)$152 
Fair Value Measurements, Recurring and Nonrecurring 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):
Measurement Date
Carrying Amount (1)
Fair ValuePre-tax Loss
Six Months Ended June 30, 2025Level 1Level 2Level 3
Held-for-sale businesses: (2)
Mong Duong (3)
3/31/2025$383 $— $371 $— $17 
Measurement Date
Carrying Amount (1)
Fair Value
Six Months Ended June 30, 2024Level 1Level 2Level 3Pre-tax Loss
Held-for-sale businesses: (2)
Mong Duong3/31/2024$450 $— $413 $— $37 
AES Brasil (4)
5/15/20241,577 — 1,565 — 25 
Mong Duong (3)
6/30/2024390 — 389 — 6 
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(1)Represents the carrying values of the asset groups at the dates of measurement, before fair value adjustment.
(2)See Note 18—Held-for-Sale and Dispositions for further information.
(3)The pre-tax loss recognized was calculated using the fair value of the Mong Duong disposal group less costs to sell of $5 million.
(4)The pre-tax loss recognized was calculated using the fair value of the AES Brasil disposal group less costs to sell of $13 million. A subsequent impairment analysis was performed as of June 30, 2024 and no additional impairment was identified.
Fair Value Of Financial Instruments Not Carried At Fair Value [Table Text Block]
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 Condensed Consolidated Balance Sheets as of the dates indicated, but for which fair value is disclosed:
June 30, 2025
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Financing receivables (1)
$893 $1,007 $— $— $1,007 
Liabilities:Non-recourse debt23,865 24,525 — 22,035 2,490 
Recourse debt5,792 4,735 — 4,735 — 
December 31, 2024
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Financing receivables (1)
$87 $171 $— $— $171 
Liabilities:Non-recourse debt22,743 23,066 — 20,981 2,085 
Recourse debt5,704 4,538 — 4,538 — 
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(1)These amounts primarily relate to the sale of the Redondo Beach land, payment deferrals granted to mining customers as part of our green blend agreements in Chile, fair value of the Argentine FONINVEMEM receivables, and as of June 30, 2025, the Mong Duong loan receivable. These are included in Other noncurrent assets and Loan receivable in the accompanying Condensed Consolidated Balance Sheets. See Note 5—Financing Receivables for further information.