v3.26.1
Derivative Instruments and Hedging Activities (Tables)
 3 Months Ended
Mar. 31, 2026
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 March 31, 2026, 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$11,010 2058
Foreign currency:
Chilean peso162 2028
Colombian peso157 2028
Euro116 2028
Commodity DerivativesMaximum NotionalLatest Maturity
Natural Gas (in MMBtu)83 2029
Power (in MWhs) (2)
32 2040
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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 ValueMarch 31, 2026December 31, 2025
AssetsDesignatedNot DesignatedTotalDesignatedNot DesignatedTotal
Interest rate derivatives$238 $— $238 $279 $— $279 
Foreign currency derivatives6 6 12 11 13 24 
Commodity derivatives8 175 183 4 182 186 
Total assets
$252 $181 $433 $294 $195 $489 
Liabilities
Interest rate derivatives$46 $— $46 $59 $— $59 
Foreign currency derivatives1 23 24 4 24 28 
Commodity derivatives30 127 157 46 151 197 
Total liabilities
$77 $150 $227 $109 $175 $284 
March 31, 2026December 31, 2025
Fair ValueAssetsLiabilitiesAssetsLiabilities
Current$249 $132 $261 $154 
Noncurrent184 95 228 130 
Total
$433 $227 $489 $284 
Gain Loss In Earnings On Ineffective Portion Of Qualifying Cash Flow Hedges Table The following table presents the pre-tax gains (losses) recognized in AOCL and earnings on the Company’s derivative instruments for the periods indicated (in millions):
Three Months Ended March 31,
20262025
Cash flow hedges
Gains (losses) recognized in AOCL
Interest rate derivatives$(8)$(166)
Foreign currency derivatives(1)4 
Commodity derivatives20 30 
Total$11 $(132)
Gains (losses) reclassified from AOCL into earnings
Interest rate derivatives — Interest expense
$(3)$15 
Foreign currency derivatives — Foreign currency transaction gains (losses)
2 3 
Commodity derivatives — Cost of sales—Non-Regulated
— 2 
Total$(1)$20 
Gains reclassified from AOCL to earnings due to change in forecast
$— $8 
Gains (losses) recognized in earnings related to
Not designated as hedging instruments:
Foreign currency derivatives — Foreign currency transaction gains (losses)
1 (2)
Commodity derivatives — Revenue—Non-Regulated33 23 
Commodity derivatives — Cost of sales—Non-Regulated8 (5)
Total$42 $16 
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 Value
Three Months Ended March 31, 2025Level 1Level 2Level 3Pre-tax Loss
Held-for-sale businesses: (2)
Mong Duong (3)
3/31/2025383 — 371 — 17 
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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.
AES Clean Energy Development Projects — On a quarterly basis, the Company reviews the status of development projects to identify projects that are no longer viable and will be abandoned. The fair value of each abandoned project with no salvage value is determined to be zero as there are no future projected cash flows, resulting in a full write-off of the carrying value of project development intangibles and capitalized development costs incurred.
The Company recognized $6 million and $31 million of pre-tax asset impairment expense related to AES Clean Energy Development Projects during the three months ended March 31, 2026 and 2025, respectively. See Note 16—Asset Impairment Expense for further information.
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 periods indicated, but for which fair value is disclosed:
March 31, 2026
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Financing receivables (1)
$828 $930 $— $— $930 
Liabilities:Non-recourse debt24,080 25,245 — 22,601 2,644 
Recourse debt6,171 5,101 — 5,101 — 
December 31, 2025
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Financing receivables (1)
$855 $955 $— $— $955 
Liabilities:Non-recourse debt23,178 23,749 — 20,448 3,301 
Recourse debt5,984 5,003 — 5,003 — 
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(1)For both periods presented, amounts primarily relate to the Mong Duong loan receivable, payment deferrals granted to mining customers as part of our green blend agreements in Chile, the sale of the Redondo Beach land, and the fair value of the Argentine FONINVEMEM receivables. These are included in Loan receivable and Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. See Note 5—Financing Receivables for further information.