Sales-type Lease, Net Investment in Lease, Allowance for Credit Loss

9 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021

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| Nine Months Ended September 30, 2022 | Accounts Receivable (1) |  | Mong Duong Loan Receivable (2) |  | Argentina Receivables |  | Lease Receivable (3) |  | Other |  | Total |
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| CECL reserve balance at beginning of period | $ | 3  |  |  | $ | 30  |  |  | $ | 23  |  |  | $ | —  |  |  | $ | 7  |  |  | $ | 63  |  |
| Current period provision | 7  |  |  | —  |  |  | 22  |  |  | 20  |  |  | —  |  |  | 49  |  |
| Write-offs charged against allowance | (9) |  |  | —  |  |  | —  |  |  | —  |  |  | (6) |  |  | (15) |  |
| Recoveries collected | 2  |  |  | (1) |  |  | —  |  |  | —  |  |  | —  |  |  | 1  |  |
| Foreign exchange | —  |  |  | —  |  |  | (8) |  |  | —  |  |  | —  |  |  | (8) |  |
| CECL reserve balance at end of period | $ | 3  |  |  | $ | 29  |  |  | $ | 37  |  |  | $ | 20  |  |  | $ | 1  |  |  | $ | 90  |  |
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| Nine Months Ended September 30, 2021 | Accounts Receivable (1) |  | Mong Duong Loan Receivable (2) |  | Argentina Receivables |  | Other |  | Total |
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| CECL reserve balance at beginning of period | $ | 11  |  |  | $ | 32  |  |  | $ | 20  |  |  | $ | 1  |  |  | $ | 64  |  |
| Current period provision | 3  |  |  | —  |  |  | 5  |  |  | —  |  |  | 8  |  |
| Write-offs charged against allowance | (8) |  |  | —  |  |  | —  |  |  | —  |  |  | (8) |  |
| Recoveries collected | 2  |  |  | (1) |  |  | —  |  |  | (1) |  |  | —  |  |
| Foreign exchange | —  |  |  | —  |  |  | (3) |  |  | —  |  |  | (3) |  |
| CECL reserve balance at end of period | $ | 8  |  |  | $ | 31  |  |  | $ | 22  |  |  | $ | —  |  |  | $ | 61  |  |
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\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(1)Excludes operating lease receivable allowances and contractual dispute allowances of $2 million as of September 30, 2022 and September 30, 2021, respectively. These reserves are not in scope under ASC 326.(2)Mong Duong loan receivable credit losses allowance was reclassified to held-for-sale assets on the Condensed Consolidated Balance Sheet as of September 30, 2022.(3)Lease receivable credit losses allowance at Southland Energy (AES Gilbert).New Accounting Pronouncements Adopted in 2022 — The following table provides a brief description of recent accounting pronouncements that had an impact on the Company’s consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on the Company’s consolidated financial statements.

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| New Accounting Standards Adopted |
| ASU Number and Name | Description | Date of Adoption | Effect on the financial statements upon adoption |
| 2021-05, Leases (Topic 842), Lessors—Certain Leases with Variable Lease Payments | The amendments in this update affect lessors with lease contracts that (1) have variable lease payments that do not depend on a reference index or a rate and (2) would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (a) The lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in paragraphs 842-10-25-2 through 25-3, (b) The lessor would have otherwise recognized a day-one loss. This update could be applied either (1) retrospectively to leases that commenced or were modified on or after the adoption of Update 2016-02 or (2) prospectively to leases that commence or are modified on or after the date that an entity first applies the amendments. | January 1, 2022 | The Company adopted this standard on a prospective basis and it did not have a material impact on the financial statements. |
| 2020-06, Debt - Debt with conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Equity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Equity’s Own Equity | The amendments in this update affect entities that issue convertible instruments and/or contracts indexed to and potentially settled in an entity’s own equity. The new ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. | January 1, 2022 | The Company adopted this standard on a fully retrospective basis and its adoption resulted in a $13 million increase to Preferred Stock and a corresponding decrease to Additional paid-in capital. No impact to Earnings per Share amounts reported in 2021 or 2022. |
| 2020-04 and 2021-01, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting | The amendments in these updates provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022). | Effective for all entities as of March 12, 2020 through December 31, 2022 | The Company is implementing the reference rate reform and does not expect these amendments to have a material impact on the financial statements.  |

  

