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Segment and Geographic Information
 12 Months Ended
Dec. 31, 2012
SEGMENT AND GEOGRAPHIC INFORMATION
  Revenue Property, Plant & Equipment, net
  2012 2011 2010 2012 2011
                
  (in millions)
United States(1) $ 3,764 $ 2,113 $ 1,952 $ 7,663 $ 7,730
Non-U.S.:               
Brazil(2)   5,788   6,640   6,355   5,756   5,896
Chile   1,679   1,608   1,355   2,993   2,781
Argentina(3)   857   979   771   278   293
El Salvador   850   752   648   267   268
Dominican Republic   761   674   535   670   662
Philippines   559   480   501   800   766
United Kingdom(4)   505   587   364   579   523
Ukraine   491   418   356   112   94
Cameroon   457   386   422   989   901
Colombia   453   365   393   383   384
Mexico   397   404   409   759   779
Bulgaria(5)   369   251   44   1,611   1,624
Puerto Rico   293   298   253   570   581
Panama   266   189   194   1,069   1,040
Sri Lanka   169   140   100   8   22
Kazakhstan   151   145   138   141   86
Jordan   121   124   120   222   216
Spain(6)   119   258   411   -   -
Hungary(7)   -   -   10   -   -
Qatar(8)   -   -   -   -   -
Pakistan(9)   -   -   -   -   -
Oman(10)   -   -   -   -   -
Vietnam   -   -   -   887   138
Other Non-U.S. (11)   92   112   112   156   217
Total Non-U.S.    14,377   14,810   13,491   18,250   17,271
Total $ 18,141 $ 16,923 $ 15,443 $ 25,913 $ 25,001

(1)       Excludes revenue of $39 million, $374 million and $662 million for the years ended December 31, 2012, 2011 and 2010, respectively, and property, plant and equipment of $619 million as of December 31, 2011, related to Eastern Energy, Thames, Ironwood, and Red Oak which were reflected as discontinued operations and assets held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets. Additionally property, plant and equipment excludes $25 million and $45 million as of December 31, 2012 and 2011, respectively, related to wind turbines which were reflected as assets held for sale in the accompanying Consolidated Balance Sheets.

(2)       Excludes revenue of $124 million and $118 million for the years ended December 31, 2011 and 2010, respectively, related to Brazil Telecom, which was reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

(3)       Excludes revenue of $102 million and $116 million for the years ended December 31, 2011 and 2010, respectively, related to our Argentina distribution businesses, which were reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

(4)       Excludes revenue of $5 million, $17 million and $21 million for the years ended December 31, 2012, 2011 and 2010, respectively, related to carbon reduction projects, which were reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

(5)       Our wind project in Bulgaria started operations in 2010 and Maritza started operations in June 2011.

(6)       Excludes property, plant and equipment of $620 million as of December 31, 2011, related to Cartagena, which was reflected as assets held for sale in the accompanying Consolidated Balance Sheet.

(7)       Excludes revenue of $18 million, $219 million and $287 million for the years ended December 31, 2012, 2011 and 2010, respectively, and property, plant and equipment of $5 million as of December 31, 2011, related to Borsod, Tiszapalkonya and Tisza II, which were reflected as discontinued operations and assets held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

(8)       Excludes revenue of $129 million for the year ended December 31, 2010, related to Ras Laffan, which was reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

(9)       Excludes revenue of $299 million for the year ended December 31, 2010, related to Lal Pir and Pak Gen, which were reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

(10)        Excludes revenue of $62 million for the year ended December 31, 2010, related to Barka, which was reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

(11)       Excludes revenue of $1 million for each of the years ended December 31, 2012 and 2011, related to alternative energy and carbon reduction projects, which were reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

 

17. SEGMENT AND GEOGRAPHIC INFORMATION

During the fourth quarter of 2012, the Company completed the restructuring of its operational management and reporting process. The segment reporting structure 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. The management reporting structure is organized along six strategic business units (“SBUs”) – led by our Chief Operating Officer (“COO”), who in turn reports to our Chief Executive Officer (“CEO”). Upon the application of the accounting guidance for segment reporting, the Company has identified eight reportable segments based on the six strategic business units. All prior period results have been retrospectively revised to reflect the new segment reporting structure which includes:

  • US – Generation;
  • US – Utilities;
  • Andes – Generation;
  • Brazil – Generation;
  • Brazil – Utilities;
  • MCAC – Generation;
  • EMEA – Generation;
  • Asia – Generation

Corporate and Other— The Company's EMEA and MCAC Utilities operating segments 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 the 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 Consolidated Statements of Operations, not in revenue or adjusted PTC. “Corporate and Other” also includes corporate overhead costs which are not directly associated with the operations of our eight reportable segments and other intercompany charges such as self-insurance premiums which are fully eliminated in consolidation.

During the fourth quarter 2012, the Company changed its primary segment performance measure from adjusted gross margin to adjusted pre-tax contribution (“Adjusted PTC”).   Adjusted PTC, a non-GAAP measure, is defined by the Company as pre-tax income from continuing operations attributable to AES excluding unrealized gains or losses related to derivative transactions, unrealized foreign currency gains or losses, significant gains or losses due to dispositions and acquisitions of business interests, significant losses due to impairments and costs due to the early retirement of debt. The Company has concluded that Adjusted PTC best reflects the underlying business performance of the Company and is the most relevant measure considered in the Company's internal evaluation of the financial performance of its segments.  Additionally, given its large number of businesses and complexity, the Company has also concluded that Adjusted PTC is a more transparent measure that better assists the investor in determining which businesses have the greatest impact on the overall Company results.  

Total revenue includes inter-segment revenue related to the transfer of electricity from generation plants to utilities within Brazil. No material inter-segment revenue relationships exist between other segments. Corporate allocations include certain self-insurance activities which are reflected within segment adjusted PTC. All intra-segment activity has been eliminated with respect to revenue and adjusted PTC within the segment. Inter-segment activity has been eliminated within the total consolidated results. Asset information for businesses that were discontinued or classified as held for sale as of December 31, 2012 is segregated and is shown in the line “Discontinued Businesses” in the accompanying segment tables.

The tables below present the breakdown of reportable segment balance sheet and income statement data as of and for the years ended December 31, 2012 through 2010:

  Total Revenue Intersegment External Revenue
  2012 2011 2010 2012 2011 2010 2012 2011 2010
                            
  (in millions)
Revenue                           
US - Generation $ 861 $ 784 $ 806 $ - $ (2) $ - $ 861 $ 782 $ 806
US - Utilities   2,898   1,326   1,145   -   -   -   2,898   1,326   1,145
Andes - Generation   3,020   2,989   2,519   (33)   (36)   -   2,987   2,953   2,519
Brazil - Generation    1,087   1,128   1,031   (1,019)   (1,109)   (1,015)   68   19   16
Brazil - Utilities   5,720   6,621   6,340   -   -   -   5,720   6,621   6,340
MCAC - Generation   1,723   1,575   1,400   (2)   (5)   (3)   1,721   1,570   1,397
EMEA - Generation   1,376   1,501   1,208   (33)   (34)   (31)   1,343   1,467   1,177
Asia - Generation   738   626   618   -   -   -   738   626   618
Corporate and Other   1,809   1,565   1,435   (4)   (6)   (10)   1,805   1,559   1,425
Total Revenue $ 19,232 $ 18,115 $ 16,502 $ (1,091) $ (1,192) $ (1,059) $ 18,141 $ 16,923 $ 15,443

   Total Adjusted Pre-Tax Contribution Intersegment External Adjusted Pre-Tax Contribution
   2012 2011 2010 2012 2011 2010 2012 2011 2010
                             
   (in millions)
Adjusted Pre-Tax Contribution (1)                            
US - Generation $ 171 $ 101 $ 75 $ 38 $ 51 $ 6 $ 209 $ 152 $ 81
US - Utilities   239   80   130   2   1   2   241   81   132
Andes - Generation   369   508   322   (16)   (32)   6   353   476   328
Brazil - Generation   169   189   177   (244)   (267)   (251)   (75)   (78)   (74)
Brazil - Utilities   152   226   214   165   179   192   317   405   406
MCAC - Generation   363   290   238   8   1   (23)   371   291   215
EMEA - Generation   381   273   201   (18)   (4)   4   363   269   205
Asia - Generation    201   99   145   2   2   2   203   101   147
Corporate and Other   (668)   (688)   (547)   63   69   62   (605)   (619)   (485)
Total Adjusted Pre-Tax Contribution   1,377   1,078   955   -   -   -   1,377   1,078   955
Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:         
Non-GAAP Adjustments:         
Unrealized derivatives gains (losses)   (118)   (11)   2
Unrealized foreign currency gains (losses)   18   (38)   38
Disposition/acquisition gains   206   -   -
Impairment losses   (1,936)   (271)   (322)
Debt retirement losses   (16)   (46)   (29)
Pre-tax contribution   (469)   712   644
Add: Income from continuing operations before taxes, attributable to noncontrolling interests   817   1,497   1,430
Less: Net equity in earnings of affiliates   34   (2)   184
Income from continuing operations before taxes and equity earnings of affiliates $ 314 $ 2,211 $ 1,890

  • Adjusted pre-tax contribution in each segment before intersegment eliminations includes the effect of intercompany transactions with other segments except for interest and charges for certain management fees.

 

  Total Assets Depreciation and Amortization Capital Expenditures
  2012 2011 2010 2012 2011 2010 2012 2011 2010
                            
  (in millions)
                            
US - Generation $ 3,259 $ 3,461 $ 3,550 $ 129 $ 131 $ 148 $ 75 $ 174 $ 290
US - Utilities   7,534   9,397   3,138   396   178   161   324   232   177
Andes - Generation   6,619   6,482   6,164   174   151   123   389   385   463
Brazil - Generation    1,590   1,777   2,035   53   59   40   65   105   58
Brazil - Utilities   8,120   8,825   8,967   228   273   211   652   633   559
MCAC - Generation   4,293   4,246   4,009   112   94   94   160   183   136
EMEA - Generation   4,578   4,491   4,302   150   165   136   229   329   343
Asia - Generation   2,625   1,830   1,861   32   33   33   229   177   24
Discontinued businesses   25   1,625   2,791   3   68   122   9   92   107
Corp and Other & eliminations   3,187   3,212   3,694   117   110   110   138   151   176
Total $ 41,830 $ 45,346 $ 40,511 $ 1,394 $ 1,262 $ 1,178 $ 2,270 $ 2,461 $ 2,333

             
  Interest Income Interest Expense 
  2012 2011 2010 2012 2011 2010 
                    
  (in millions) 
                    
US - Generation $ 1 $ 1 $ 9 $ 62 $ 72 $ 74 
US - Utilities   2   -   1   231   124   119 
Andes - Generation   20   20   13   128   126   98 
Brazil - Generation   26   47   73   39   62   85 
Brazil - Utilities   252   298   273   266   390   341 
MCAC - Generation   31   20   26   167   141   157 
EMEA - Generation   8   5   4   97   109   75 
Asia - Generation   6   2   3   46   47   52 
Corp and Other & eliminations   3   6   5   536   482   448 
Total $ 349 $ 399 $ 407 $ 1,572 $ 1,553 $ 1,449 

  Investments in and          
  Advances to Affiliates Equity in Earnings (Loss) 
  2012 2011 2010 2012 2011 2010 
                    
  (in millions) 
                    
US - Generation $ (1) $ (1) $ - $ - $ - $ (2) 
US - Utilities   1   -   -   -   -   - 
Andes - Generation   198   188   150   18   35   48 
Brazil - Generation   -   -   -   -   -   - 
Brazil - Utilities   -   -   -   -   -   - 
MCAC - Generation   24   19   20   5   (2)   - 
EMEA - Generation   454   512   385   8   10   20 
Asia - Generation   202   366   478   32   5   6 
Discontinued businesses   -   -   -   -   -   - 
Corp and Other & eliminations   318   338   287   (29)   (50)   112 
Total $ 1,196 $ 1,422 $ 1,320 $ 34 $ (2) $ 184 

The table below presents information, by country, about the Company's consolidated operations for each of the years ended December 31, 2012 through 2010 and as of December 31, 2012 and 2011, respectively. Revenue is recorded in the country in which it is earned and assets are recorded in the country in which they are located.

  Revenue Property, Plant & Equipment, net
  2012 2011 2010 2012 2011
                
  (in millions)
United States(1) $ 3,764 $ 2,113 $ 1,952 $ 7,663 $ 7,730
Non-U.S.:               
Brazil(2)   5,788   6,640   6,355   5,756   5,896
Chile   1,679   1,608   1,355   2,993   2,781
Argentina(3)   857   979   771   278   293
El Salvador   850   752   648   267   268
Dominican Republic   761   674   535   670   662
Philippines   559   480   501   800   766
United Kingdom(4)   505   587   364   579   523
Ukraine   491   418   356   112   94
Cameroon   457   386   422   989   901
Colombia   453   365   393   383   384
Mexico   397   404   409   759   779
Bulgaria(5)   369   251   44   1,611   1,624
Puerto Rico   293   298   253   570   581
Panama   266   189   194   1,069   1,040
Sri Lanka   169   140   100   8   22
Kazakhstan   151   145   138   141   86
Jordan   121   124   120   222   216
Spain(6)   119   258   411   -   -
Hungary(7)   -   -   10   -   -
Qatar(8)   -   -   -   -   -
Pakistan(9)   -   -   -   -   -
Oman(10)   -   -   -   -   -
Vietnam   -   -   -   887   138
Other Non-U.S. (11)   92   112   112   156   217
Total Non-U.S.    14,377   14,810   13,491   18,250   17,271
Total $ 18,141 $ 16,923 $ 15,443 $ 25,913 $ 25,001

(1)       Excludes revenue of $39 million, $374 million and $662 million for the years ended December 31, 2012, 2011 and 2010, respectively, and property, plant and equipment of $619 million as of December 31, 2011, related to Eastern Energy, Thames, Ironwood, and Red Oak which were reflected as discontinued operations and assets held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets. Additionally property, plant and equipment excludes $25 million and $45 million as of December 31, 2012 and 2011, respectively, related to wind turbines which were reflected as assets held for sale in the accompanying Consolidated Balance Sheets.

(2)       Excludes revenue of $124 million and $118 million for the years ended December 31, 2011 and 2010, respectively, related to Brazil Telecom, which was reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

(3)       Excludes revenue of $102 million and $116 million for the years ended December 31, 2011 and 2010, respectively, related to our Argentina distribution businesses, which were reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

(4)       Excludes revenue of $5 million, $17 million and $21 million for the years ended December 31, 2012, 2011 and 2010, respectively, related to carbon reduction projects, which were reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

(5)       Our wind project in Bulgaria started operations in 2010 and Maritza started operations in June 2011.

(6)       Excludes property, plant and equipment of $620 million as of December 31, 2011, related to Cartagena, which was reflected as assets held for sale in the accompanying Consolidated Balance Sheet.

(7)       Excludes revenue of $18 million, $219 million and $287 million for the years ended December 31, 2012, 2011 and 2010, respectively, and property, plant and equipment of $5 million as of December 31, 2011, related to Borsod, Tiszapalkonya and Tisza II, which were reflected as discontinued operations and assets held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

(8)       Excludes revenue of $129 million for the year ended December 31, 2010, related to Ras Laffan, which was reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

(9)       Excludes revenue of $299 million for the year ended December 31, 2010, related to Lal Pir and Pak Gen, which were reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

(10)        Excludes revenue of $62 million for the year ended December 31, 2010, related to Barka, which was reflected as discontinued operations in the accompanying Consolidated Statements of Operations.

(11)       Excludes revenue of $1 million for each of the years ended December 31, 2012 and 2011, related to alternative energy and carbon reduction projects, which were reflected as discontinued operations in the accompanying Consolidated Statements of Operations.