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Segments Segments (Policies)
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting SEGMENTS
The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the businesses internally. The management reporting structure is composed of four SBUs, mainly organized by technology, led by our President and Chief Executive Officer. Using the accounting guidance on segment reporting, the Company determined that its four operating segments are aligned with its four reportable segments corresponding to its SBUs.
•Renewables — Solar, wind, energy storage, and hydro generation facilities;
•Utilities — AES Indiana, AES Ohio, and AES El Salvador regulated utilities and their generation facilities;
•Energy Infrastructure — Natural gas, LNG, coal, pet coke, diesel, and oil generation facilities, and our businesses in Chile, which have a mix of generation sources, including renewables, that are pooled to service our existing PPAs; and
•New Energy Technologies — Green hydrogen initiatives and investments in Fluence, Uplight, 5B, and other new and innovative energy technology businesses.
Our Renewables, Utilities, and Energy Infrastructure SBUs participate in our generation business line, in which we own and/or operate power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. Our Utilities SBU participates in our utilities business line, in which we own and/or operate utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors within a defined service area. In certain circumstances, our utilities also generate and sell electricity on the wholesale market. Our New Energy Technologies SBU includes investments in new and innovative technologies to support leading-edge greener energy solutions.
Included in “Corporate and Other” are the results of the AES self-insurance company, corporate overhead costs which are not directly associated with the operations of our four reportable segments, and certain intercompany charges such as self-insurance premiums which are fully eliminated in consolidation.
The Company uses Adjusted EBITDA as its primary segment performance measure. Adjusted EBITDA, a non-GAAP measure, is defined by the Company as earnings before interest income and expense, taxes, depreciation and amortization, adjusted for the impact of NCI and interest, taxes, depreciation and amortization of our equity affiliates, and adding back interest income recognized under service concession arrangements; excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits, and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; and (e) gains, losses, and costs due to the early retirement of debt or troubled debt restructuring.
The Company has concluded Adjusted EBITDA better 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 overall complexity, the Company concluded that Adjusted EBITDA is a more transparent measure that better assists investors in determining which businesses have the greatest impact on the Company's results.
Revenue and Adjusted EBITDA are presented before inter-segment eliminations, which includes the effect of intercompany transactions with other segments except for charges for certain management fees and the write-off of intercompany balances, as applicable. All intra-segment activity has been eliminated within the segment. Inter-segment activity has been eliminated within the total consolidated results.
The following tables present financial information by segment for the periods indicated (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
Total Revenue 2024202320242023
Renewables SBU$726 $708 $1,941 $1,744 
Utilities SBU961 880 2,730 2,703 
Energy Infrastructure SBU1,623 1,861 4,706 5,239 
New Energy Technologies SBU1 — 1 75 
Corporate and Other33 29 106 96 
Eliminations(55)(44)(168)(157)
Total Revenue$3,289 $3,434 $9,316 $9,700 

Three Months Ended September 30,Nine Months Ended September 30,
Reconciliation of Adjusted EBITDA (in millions)2024202320242023
Net income
$210 $291 $449 $461 
Income tax expense
103 109 52 179 
Interest expense379 326 1,125 966 
Interest income(119)(144)(312)(398)
Depreciation and amortization306 286 926 836 
EBITDA$879 $868 $2,240 $2,044 
Less: Discontinued operations7 — 7 — 
Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1)
(229)(183)(471)(508)
Less: Income tax expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates
30 27 91 93 
Interest income recognized under service concession arrangements16 18 49 54 
Unrealized derivatives, equity securities, and financial assets and liabilities losses (gains)
(47)10 (185)3 
Unrealized foreign currency losses
7 97 10 161 
Disposition/acquisition losses (gains)
(11)8 8 21 
Impairment losses39 145 179 318 
Loss on extinguishment of debt and troubled debt restructuring
1 — 51 1 
Adjusted EBITDA$692 $990 $1,979 $2,187 
_____________________________
(1)The allocation of earnings and losses to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA.
Three Months Ended September 30,Nine Months Ended September 30,
Adjusted EBITDA2024202320242023
Renewables SBU$199 $267 $443 $557 
Utilities SBU223 216 619 526 
Energy Infrastructure SBU299 520 969 1,165 
New Energy Technologies SBU(7)(22)(38)(61)
Corporate and Other(23)8 (3)20 
Eliminations1 1 (11)(20)
Adjusted EBITDA$692 $990 $1,979 $2,187 
The Company uses long-lived assets as its measure of segment assets. Long-lived assets include amounts recorded in Property, plant and equipment, net and right-of-use assets for operating leases recorded in Other noncurrent assets on the Condensed Consolidated Balance Sheets.
Long-Lived AssetsSeptember 30, 2024December 31, 2023
Renewables SBU$16,463 $15,735 
Utilities SBU8,481 7,166 
Energy Infrastructure SBU7,750 7,414 
New Energy Technologies SBU19 14 
Corporate and Other25 9 
Long-Lived Assets32,738 30,338 
Current assets10,526 6,649 
Investments in and advances to affiliates1,162 941 
Debt service reserves and other deposits77 194 
Goodwill348 348 
Other intangible assets1,928 2,243 
Deferred income taxes421 396 
Other noncurrent assets, excluding right-of-use assets for operating leases2,209 2,879 
Noncurrent held-for-sale assets
670 811 
Total Assets$50,079 $44,799