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Segments | 3 Months Ended
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Jun. 30, 2012
SEGMENTS | 12. SEGMENTS During the first quarter of 2012, the Company completed its operational management and reporting restructuring. The management reporting structure i s organized along two lines of business – Generation and Utilities, each led by a Chief Operating Officer. The segment reporting structure primarily uses the Company's management reporting structure as its foundation to reflect how the Company manages the business internally with further aggregation by geographic regions to provide better socio-political-economic understanding of our business. For the three and six months ended June 30, 2012, the Company applied the segment reporting accounting guidance, which provides certain quantitative thresholds and aggregation criteria. The Company concluded that Tiet ê, our 2,663 MW hydro generation business in Brazil, met the quantitative thresholds to require separate presentation. As such, an additional reportable segment which consists solely of the results o f Tiet ê is now reported as Generation – Tiet ê. Tiet ê was formerly reported within the Latin America – Generation segment. The previously disclosed Latin America – Generation segment is now repo rted as Generation – Latin America – Other and, with the exception of Tiet ê, includes the results of all remaining businesses as previously reported. All prior period results have been retrospectively revised to reflect the new segment reporting structure. T he Company has increased from six to the following seven reportable segments: • Generation – Latin America – Other; • Generation – Tiet ê; • Generatio n – North America; • Generation – Europe; • Generation – Asia; • Utilities – Latin America; • Utilities – North Ame rica. Corporate and Other—The Company's Europe Utilities, Africa Utilities, Africa Generation, Wind G eneration operating segments and other climate solutions and renewables projects are reported within “Corporate and Other” because they do not meet the criteria to allow for aggregation with another operating segment or the quantitative thresholds that would require separate disclosure under segment reporting accounting guidance. None of these operating segments are currently material to our presentation of reportable segments, individually or in the aggregate. AES Solar and certain other unconsolidated businesses are accounted for using the equity method of accounting; therefore, their operating results are included in “Net Equity in Earnings of Affiliates” on the face of the Condensed Consolidated Statements of Operations, not in revenue or gross margin. “Corporate and Other” also includes corporate overhead costs which are not directly associated with the operations of our s even reportable segments and other intercompany charges such as self-insurance premiums which are fully eliminated in consolidation. The Company uses adjusted gross m argin, a non-GAAP measure, to evaluate the performance of its segments. Adju sted gross m argin is defined by the Company as gross m argin plus depreciation and amortization less general and administrative expenses. Total revenue includes inter-segment sales related to the transfer of electricity from generation plants to utilities within Latin America. No material inter-segment revenue relationships exist between other segments. Corporate a llocations include certain self-insurance activities whic h are reflected within segment adjusted g ross m argin. All intra-segment activity has been eliminated with r espect to revenue and adjusted g ross m argin within the segment. Inter-segment activity has been eliminated within the total consolid ated results. Asset information for businesses that were discontinued or classified as held for sale as of June 30, 2012 is segregated and is shown in the line “Discontinued Businesses” in the accompanying segment tables. Information about the Company's operations by segment for the three and six months ended June 30, 2012 and 2011 was as follows:
Three months ended |  | Total Revenue |  | Intersegment |  | External Revenue
June 30, |  | 2012 |  | 2011 |  | 2012 |  | 2011 |  | 2012 |  | 2011
|  | (in millions)
Generation - Latin America - Other |  | $ | 1,029 |  | $ | 1,122 |  | $ | (9) |  | $ | (11) |  | $ | 1,020 |  | $ | 1,111
Generation - Tietê |  |  | 274 |  |  | 256 |  |  | (248) |  |  | (251) |  |  | 26 |  |  | 5
Generation - North America |  |  | 328 |  |  | 339 |  |  | - |  |  | (4) |  |  | 328 |  |  | 335
Generation - Europe |  |  | 233 |  |  | 328 |  |  | (1) |  |  | - |  |  | 232 |  |  | 328
Generation - Asia |  |  | 181 |  |  | 162 |  |  | - |  |  | - |  |  | 181 |  |  | 162
Utilities - Latin America |  |  | 1,446 |  |  | 1,944 |  |  | - |  |  | - |  |  | 1,446 |  |  | 1,944
Utilities - North America |  |  | 678 |  |  | 280 |  |  | - |  |  | - |  |  | 678 |  |  | 280
Corp and Other |  |  | 284 |  |  | 273 |  |  | (3) |  |  | (3) |  |  | 281 |  |  | 270
Total Revenue |  | $ | 4,453 |  | $ | 4,704 |  | $ | (261) |  | $ | (269) |  | $ | 4,192 |  | $ | 4,435
Six Months Ended |  | Total Revenue |  | Intersegment |  | External Revenue
June 30, |  | 2012 |  | 2011 |  | 2012 |  | 2011 |  | 2012 |  | 2011
|  | (in millions)
Generation - Latin America - Other |  | $ | 1,988 |  | $ | 2,000 |  | $ | (19) |  | $ | (20) |  | $ | 1,969 |  | $ | 1,980
Generation - Tietê |  |  | 579 |  |  | 509 |  |  | (530) |  |  | (493) |  |  | 49 |  |  | 16
Generation - North America |  |  | 645 |  |  | 673 |  |  | - |  |  | (4) |  |  | 645 |  |  | 669
Generation - Europe |  |  | 683 |  |  | 728 |  |  | (1) |  |  | (1) |  |  | 682 |  |  | 727
Generation - Asia |  |  | 362 |  |  | 277 |  |  | - |  |  | - |  |  | 362 |  |  | 277
Utilities - Latin America |  |  | 3,180 |  |  | 3,784 |  |  | - |  |  | - |  |  | 3,180 |  |  | 3,784
Utilities - North America |  |  | 1,410 |  |  | 569 |  |  | - |  |  | - |  |  | 1,410 |  |  | 569
Corp and Other |  |  | 640 |  |  | 574 |  |  | (5) |  |  | (5) |  |  | 635 |  |  | 569
Total Revenue |  | $ | 9,487 |  | $ | 9,114 |  | $ | (555) |  | $ | (523) |  | $ | 8,932 |  | $ | 8,591
Three months ended |  | Total Adjusted Gross Margin |  | Intersegment |  | External Adjusted Gross Margin
June 30, |  | 2012 |  | 2011 |  | 2012 |  | 2011 |  | 2012 |  | 2011
|  | (in millions)
Generation - Latin America - Other |  | $ | 232 |  | $ | 326 |  | $ | 6 |  | $ | 3 |  | $ | 238 |  | $ | 329
Generation - Tietê |  |  | 210 |  |  | 191 |  |  | (248) |  |  | (251) |  |  | (38) |  |  | (60)
Generation - North America |  |  | 116 |  |  | 110 |  |  | 4 |  |  | (1) |  |  | 120 |  |  | 109
Generation - Europe |  |  | 84 |  |  | 93 |  |  | - |  |  | 1 |  |  | 84 |  |  | 94
Generation - Asia |  |  | 64 |  |  | 53 |  |  | 1 |  |  | - |  |  | 65 |  |  | 53
Utilities - Latin America |  |  | 44 |  |  | 340 |  |  | 250 |  |  | 253 |  |  | 294 |  |  | 593
Utilities - North America |  |  | 193 |  |  | 89 |  |  | 1 |  |  | 1 |  |  | 194 |  |  | 90
Corp and Other |  |  | 14 |  |  | (9) |  |  | (12) |  |  | (9) |  |  | 2 |  |  | (18)
Reconciliation to Income from Continuing Operations before Taxes |  |  |  |  |  |
Depreciation and amortization |  |  | (341) |  |  | (295)
Interest expense |  |  | (385) |  |  | (381)
Interest income |  |  | 83 |  |  | 96
Other expense |  |  | (15) |  |  | (35)
Other income |  |  | 15 |  |  | 34
Gain on sale of investments |  |  | 5 |  |  | 1
Asset impairment expense |  |  | (18) |  |  | (33)
Foreign currency transaction gains (losses) |  |  | (101) |  |  | 37
Other non-operating expense |  |  | (1) |  |  | -
Income from continuing operations before taxes and equity in earnings of affiliates |  | $ | 201 |  | $ | 614
Six Months Ended |  | Total Adjusted Gross Margin |  | Intersegment |  | External Adjusted Gross Margin
June 30, |  | 2012 |  | 2011 |  | 2012 |  | 2011 |  | 2012 |  | 2011
|  | (in millions)
Generation - Latin America - Other |  | $ | 519 |  | $ | 594 |  | $ | 10 |  | $ | 6 |  | $ | 529 |  | $ | 600
Generation - Tietê |  |  | 449 |  |  | 393 |  |  | (530) |  |  | (493) |  |  | (81) |  |  | (100)
Generation - North America |  |  | 222 |  |  | 216 |  |  | 6 |  |  | 3 |  |  | 228 |  |  | 219
Generation - Europe |  |  | 321 |  |  | 199 |  |  | (7) |  |  | 2 |  |  | 314 |  |  | 201
Generation - Asia |  |  | 122 |  |  | 98 |  |  | 1 |  |  | 1 |  |  | 123 |  |  | 99
Utilities - Latin America |  |  | 211 |  |  | 660 |  |  | 535 |  |  | 498 |  |  | 746 |  |  | 1,158
Utilities - North America |  |  | 406 |  |  | 179 |  |  | 1 |  |  | 1 |  |  | 407 |  |  | 180
Corp and Other |  |  | 61 |  |  | 34 |  |  | (26) |  |  | (22) |  |  | 35 |  |  | 12
Reconciliation to Income from Continuing Operations before Taxes |  |  |  |  |  |
Depreciation and amortization |  |  | (692) |  |  | (576)
Interest expense |  |  | (801) |  |  | (719)
Interest income |  |  | 174 |  |  | 191
Other expense |  |  | (44) |  |  | (50)
Other income |  |  | 33 |  |  | 50
Gain on sale of investments |  |  | 184 |  |  | 7
Asset impairment expense |  |  | (29) |  |  | (33)
Foreign currency transaction gains (losses) |  |  | (102) |  |  | 70
Other non-operating expense |  |  | (50) |  |  | -
Income from continuing operations before taxes and equity in earnings of affiliates |  | $ | 974 |  | $ | 1,309
Assets by segment as of June 30, 2012 and December 31, 2011 were as follows:
|  |  | Total Assets
|  |  | June 30, 2012 |  | December 31, 2011
|  |  | (in millions)
| Assets |  |  |  |  |  |
| Generation - Latin America - Other |  | $ | 9,120 |  | $ | 9,067
| Generation - Tietê |  |  | 1,422 |  |  | 1,645
| Generation - North America |  |  | 3,568 |  |  | 3,625
| Generation - Europe |  |  | 3,340 |  |  | 3,276
| Generation - Asia |  |  | 2,099 |  |  | 1,717
| Utilities - Latin America |  |  | 8,491 |  |  | 9,468
| Utilities - North America |  |  | 9,245 |  |  | 9,344
| Discontinued businesses |  |  | - |  |  | 1,531
| Corp and Other |  |  | 5,464 |  |  | 5,620
| Total assets |  | $ | 42,749 |  | $ | 45,293

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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