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Segment and Geographic Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION SEGMENTS AND GEOGRAPHIC INFORMATION
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, who is our Chief Operating Decision Maker. 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 — Investments in Fluence, Uplight, Maximo, 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, amortization, and accretion of AROs, adjusted for the impact of NCI and interest, taxes, depreciation, amortization, and accretion of AROs 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. During the year ended December 31, 2024, the Company updated the definition of Adjusted EBITDA to include accretion of AROs in the depreciation and amortization add-back, as this is how the Chief Operating Decision Maker evaluates the underlying business performance of the segments. For comparability and consistency, segment Adjusted EBITDA figures presented below have been recast to conform to the current presentation. The impact of
this update resulted in an increase to Adjusted EBITDA of $22 million, $16 million, and $18 million in each of the years ended December 31, 2024, 2023, and 2022, respectively.
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. The Chief Operating Decision Maker uses Adjusted EBITDA to allocate resources and capital for each segment in the annual budget and forecasting process, including making decisions on where to reinvest profits to support segment growth. On a monthly basis, the Chief Operating Decision Maker reviews variances in budget versus actual Adjusted EBITDA and monitors changes in forecasted Adjusted EBITDA to assess the underlying operating performance and analyze risks and opportunities at each segment.
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):
Year Ended December 31, 2024
Renewables SBUUtilities SBUEnergy Infrastructure SBUNew Energy Technologies SBUTotal
Revenue
$2,510 $3,608 $6,238 $1 $12,357 
Corporate and other
162 
Eliminations
(241)
Total Revenue
$12,278 
Less:
Total cost of sales excluding depreciation, amortization, and accretion of AROs (1)
1,752 2,607 4,568 8 
Other segment items (2)
206 209 304 31 
Segment Adjusted EBITDA
$552 $792 $1,366 $(38)$2,672 
Reconciliation to income from continuing operations before taxes
Corporate and other
11 
Eliminations
(44)
Interest expense
(1,485)
Interest income
381 
Depreciation, amortization, and accretion of AROs
(1,264)
Adjusted for:
Noncontrolling interests and redeemable stock of subsidiaries
734 
Income tax expense (benefit), interest expense (income), and depreciation, amortization, and accretion of AROs from equity affiliates
(136)
Interest income recognized under service concession arrangements(65)
Unrealized derivative and equity securities gains
94 
Unrealized foreign currency losses
(16)
Disposition/acquisition losses
323 
Impairment losses(280)
Loss on extinguishment of debt(57)
Income from continuing operations before taxes
$868 
_____________________________
(1)Segment-level total cost of sales excluding depreciation, amortization, and accretion of AROs is considered regularly provided to the chief operating decision maker. Total cost of sales excluding depreciation, amortization, and accretion of AROs includes items such as fuel cost, electricity purchases, transmission charges, supplies, salaries and wages, consulting costs, IT costs, market fees, insurance, and lease expense.
(2)Other segment items for each reportable segment includes:
Renewables SBU — business development costs, miscellaneous gains and losses in Other income and Other expense, realized foreign currency gains and losses, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
Utilities SBU — miscellaneous gains and losses in Other income and Other expense, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
Energy Infrastructure SBU — business development costs, miscellaneous gains and losses in Other income and Other expense, realized foreign currency gains and losses, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
New Energy Technologies SBU — earnings from equity affiliates, and miscellaneous gains and losses in Other income and Other expense.
Year Ended December 31, 2023
Renewables SBUUtilities SBUEnergy Infrastructure SBUNew Energy Technologies SBUTotal
Revenue
$2,339 $3,495 $6,836 $76 $12,746 
Corporate and other
138 
Eliminations
(216)
Total Revenue
$12,668 
Less:
Total cost of sales excluding depreciation, amortization, and accretion of AROs (1)
1,504 2,662 5,022 84 
Other segment items (2)
183 155 274 54 
Segment Adjusted EBITDA
$652 $678 $1,540 $(62)$2,808 
Reconciliation to income from continuing operations before taxes
Corporate and other
22 
Eliminations
(2)
Interest expense
(1,319)
Interest income
551 
Depreciation, amortization, and accretion of AROs
(1,147)
Adjusted for:
Noncontrolling interests and redeemable stock of subsidiaries
556 
Income tax expense (benefit), interest expense (income), and depreciation, amortization, and accretion of AROs from equity affiliates
(131)
Interest income recognized under service concession arrangements(71)
Unrealized derivative and equity securities losses
(34)
Unrealized foreign currency losses
(301)
Disposition/acquisition gains
79 
Impairment losses(877)
Loss on extinguishment of debt(62)
Income from continuing operations before taxes
$72 
_____________________________
(1)Segment-level total cost of sales excluding depreciation, amortization, and accretion of AROs is considered regularly provided to the chief operating decision maker. Total cost of sales excluding depreciation, amortization, and accretion of AROs includes items such as fuel cost, electricity purchases, transmission charges, supplies, salaries and wages, consulting costs, IT costs, market fees, insurance, and lease expense.
(2)Other segment items for each reportable segment includes:
Renewables SBU — business development costs, miscellaneous gains and losses in Other income and Other expense, realized foreign currency gains and losses, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
Utilities SBU — miscellaneous gains and losses in Other income and Other expense, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
Energy Infrastructure SBU — business development costs, miscellaneous gains and losses in Other income and Other expense, realized foreign currency gains and losses, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
New Energy Technologies SBU — earnings from equity affiliates, and miscellaneous gains and losses in Other income and Other expense.
Year Ended December 31, 2022
Renewables SBUUtilities SBUEnergy Infrastructure SBUNew Energy Technologies SBUTotal
Revenue
$1,893 $3,617 $7,204 $3 $12,717 
Corporate and other
116 
Eliminations
(216)
Total Revenue
$12,617 
Less:
Total cost of sales excluding depreciation, amortization, and accretion of AROs (1)
1,097 2,861 5,249 8 
Other segment items (2)
183 144 109 111 
Segment Adjusted EBITDA
$613 $612 $1,846 $(116)$2,955 
Reconciliation to income from continuing operations before taxes
Corporate and other
(19)
Eliminations
13 
Interest expense
(1,117)
Interest income
389 
Depreciation, amortization, and accretion of AROs
(1,072)
Adjusted for:
Noncontrolling interests and redeemable stock of subsidiaries
707 
Income tax expense (benefit), interest expense (income), and depreciation, amortization, and accretion of AROs from equity affiliates
(128)
Interest income recognized under service concession arrangements(77)
Unrealized derivative and equity securities losses
(131)
Unrealized foreign currency losses
(42)
Disposition/acquisition losses
(40)
Impairment losses(1,658)
Loss on extinguishment of debt(20)
Income from continuing operations before taxes
$(240)
_____________________________
(1)Segment-level total cost of sales excluding depreciation, amortization, and accretion of AROs is considered regularly provided to the chief operating decision maker. Total cost of sales excluding depreciation, amortization, and accretion of AROs includes items such as fuel cost, electricity purchases, transmission charges, supplies, salaries and wages, consulting costs, IT costs, market fees, insurance, and lease expense.
(2)Other segment items for each reportable segment includes:
Renewables SBU — business development costs, miscellaneous gains and losses in Other income and Other expense, realized foreign currency gains and losses, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
Utilities SBU — miscellaneous gains and losses in Other income and Other expense, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
Energy Infrastructure SBU — business development costs, miscellaneous gains and losses in Other income and Other expense, realized foreign currency gains and losses, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
New Energy Technologies SBU — earnings from equity affiliates, and miscellaneous gains and losses in Other income and Other expense.
The Company uses long-lived assets as its measure of segment assets. Long-lived assets includes amounts recorded in Property, plant and equipment, net and right-of-use assets for operating leases recorded in Other noncurrent assets on the Consolidated Balance Sheets.
Long-Lived Assets
Year Ended December 31, 202420232022
Renewables SBU$17,028 $15,735 $9,533 
Utilities SBU8,535 7,166 6,311 
Energy Infrastructure SBU7,928 7,414 7,532 
New Energy Technologies SBU22 14 2 
Corporate and Other25 9 17 
Long-Lived Assets33,538 30,338 23,395 
Current assets6,831 6,649 7,643 
Investments in and advances to affiliates1,124 941 952 
Debt service reserves and other deposits78 194 177 
Goodwill345 348 362 
Other intangible assets1,947 2,243 1,841 
Deferred income taxes365 396 319 
Other noncurrent assets, excluding right-of-use assets for operating leases2,545 2,879 3,674 
Noncurrent held-for-sale assets633 811 — 
Total Assets$47,406 $44,799 $38,363 
Depreciation, Amortization, and Accretion of AROs
Capital Expenditures
Year Ended December 31, 202420232022202420232022
Renewables SBU$401 $345 $268 $5,170 $5,759 $2,972 
Utilities SBU458 400 376 1,570 1,374 859 
Energy Infrastructure SBU397 392 416 733 585 742 
New Energy Technologies SBU1 1 2 11 5 — 
Corporate and Other7 9 10 35 10 11 
Total$1,264 $1,147 $1,072 $7,519 $7,733 $4,584 
Interest IncomeInterest ExpenseNet Equity in Earnings (Losses) of Affiliates
Year Ended December 31, 202420232022202420232022202420232022
Renewables SBU$109 $181 $131 $414 $326 $236 $19 $41 $28 
Utilities SBU12 12 8 294 243 234 4 5 6 
Energy Infrastructure SBU233 337 246 483 534 488 10 6 9 
New Energy Technologies SBU7 2 — — — — (20)(84)(114)
Corporate and Other20 19 4 294 216 159 (39)— — 
Total$381 $551 $389 $1,485 $1,319 $1,117 $(26)$(32)$(71)

The following table presents information, by country, about the Company's consolidated operations for each of the three years ended December 31, 2024, 2023, and 2022, and as of December 31, 2024 and 2023 (in millions). Revenue is recorded in the country in which it is earned and assets are recorded in the country in which they are located.
Total Revenue
Long-Lived Assets
Year Ended December 31, 20242023202220242023
United States (1)
$4,689 $4,439 $4,093 $25,261 $19,750 
Non-U.S.:
Chile1,534 1,932 2,064 3,563 3,018 
Dominican Republic1,451 1,400 1,591 805 1,098 
El Salvador1,036 935 902 472 442 
Colombia686 706 417 358 390 
Brazil616 697 560 — 2,482 
Panama666 644 678 1,882 1,910 
Mexico462 536 595 275 271 
Bulgaria478 528 790 421 483 
Argentina
318 407 501 437 431 
Vietnam (2)
312 344 323 — — 
Jordan28 97 102 38 39 
Other Non-U.S.2 3 1 26 24 
Total Non-U.S.7,589 8,229 8,524 8,277 10,588 
Total$12,278 $12,668 $12,617 $33,538 $30,338 
_____________________________
(1)     Includes Puerto Rico revenues of $426 million, $269 million, and $293 million for the years ended December 31, 2024, 2023, and 2022, respectively, and long-lived assets of $572 million and $145 million as of December 31, 2024 and 2023, respectively.
(2)     The Mong Duong 2 power project is operated under a BOT contract. The Mong Duong assets were classified as held-for-sale as of December 31, 2024 and 2023. See Note 21—Revenue and Note 25—Held-for-Sale and Dispositions for further information.