Segment and Geographic Information

12 Months Ended

Dec. 31, 2023

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. In our 2022 Form 10-K, the management reporting structure and the Company’s reportable segments were mainly organized by geographic regions. In March 2023, we announced internal management changes as a part of our ongoing strategy to align our business to meet our customers’ needs and deliver on our major strategic objectives. The management reporting structure is now 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. All prior period results have been retrospectively revised to reflect the new segment reporting structure.

•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.

During the first quarter of 2023, management began assessing operational performance and making resource allocation decisions using Adjusted EBITDA. Therefore, 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 related to derivative transactions and equity securities; (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; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence.

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):

	Total Revenue
Year Ended December 31,	2023		2022		2021
Renewables SBU	$	2,339	$	1,893	$	1,562
Utilities SBU	3,495		3,617		2,944
Energy Infrastructure SBU	6,836		7,204		6,702
New Energy Technologies SBU	76		3		7
Corporate and Other	138		116		108
Eliminations	(216)		(216)		(182)
Total Revenue	$	12,668	$	12,617	$	11,141

Reconciliation from Net Income (Loss):	Adjusted EBITDA
Year Ended December 31,	2023		2022		2021
Net loss	$	(182)	$	(505)	$	(951)
Income tax expense (benefit)	261		265		(133)
Interest expense	1,319		1,117		911
Interest income	(551)		(389)		(298)
Depreciation and amortization	1,128		1,053		1,056
EBITDA	$	1,975	$	1,541	$	585
Less: Income from discontinued operations	(7)		—		(4)
Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1)	(552)		(704)		(47)
Less: Income tax expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates	130		126		123
Interest income recognized under service concession arrangements	71		77		82
Unrealized derivative and equity securities losses (gains)	34		131		(4)
Unrealized foreign currency losses	301		42		14
Disposition/acquisition losses (gains)	(79)		40		863
Impairment losses	877		1,658		1,153
Loss on extinguishment of debt	62		20		71
Net gains from early contract terminations at Angamos	—		—		(256)
Adjusted EBITDA	$	2,812	$	2,931	$	2,580

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(1)The allocation of earnings and losses to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA.

	Adjusted EBITDA
Year Ended December 31,	2023		2022		2021
Renewables SBU	$	645	$	605	$	545
Utilities SBU	678		612		633
Energy Infrastructure SBU	1,531		1,836		1,494
New Energy Technologies SBU	(62)		(116)		(77)
Corporate and Other	22		(19)		(20)
Eliminations	(2)		13		5
Total Adjusted EBITDA	$	2,812	$	2,931	$	2,580

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,	2023		2022		2021
Renewables SBU	$	15,735	$	9,533	$	6,353
Utilities SBU	7,166		6,311		6,027
Energy Infrastructure SBU	7,414		7,532		7,778
New Energy Technologies SBU	14		2		4
Corporate and Other	9		17		21
Long-Lived Assets	30,338		23,395		20,183
Current assets	6,649		7,643		5,356
Investments in and advances to affiliates	941		952		1,080
Debt service reserves and other deposits	194		177		237
Goodwill	348		362		1,177
Other intangible assets	2,243		1,841		1,450
Deferred income taxes	396		319		409
Other noncurrent assets, excluding right-of-use assets for operating leases	2,879		3,674		1,911
Noncurrent held-for-sale assets	811		—		1,160
Total Assets	$	44,799	$	38,363	$	32,963

	Depreciation and Amortization						Capital Expenditures
Year Ended December 31,	2023		2022		2021		2023		2022		2021
Renewables SBU	$	338	$	260	$	222	$	5,759	$	2,972	$	721
Utilities SBU	400		376		361		1,374		859		544
Energy Infrastructure SBU	381		404		458		585		742		847
New Energy Technologies SBU	1		2		1		5		—		—
Corporate and Other	8		11		14		10		11		28
Total	$	1,128	$	1,053	$	1,056	$	7,733	$	4,584	$	2,140

	Interest Income						Interest Expense						Net Equity in Earnings (Losses) of Affiliates
Year Ended December 31,	2023		2022		2021		2023		2022		2021		2023		2022		2021
Renewables SBU	$	181	$	131	$	55	$	326	$	236	$	200	$	41	$	28	$	63
Utilities SBU	12		8		5		243		234		218		5		6		3
Energy Infrastructure SBU	337		246		236		534		488		422		6		9		(4)
New Energy Technologies SBU	2		—		—		—		—		—		(84)		(114)		(86)
Corporate and Other	19		4		2		216		159		71		—		—		—
Total	$	551	$	389	$	298	$	1,319	$	1,117	$	911	$	(32)	$	(71)	$	(24)

The following table presents information, by country, about the Company's consolidated operations for each of the three years ended December 31, 2023, 2022, and 2021, and as of December 31, 2023 and 2022 (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,	2023		2022		2021		2023		2022
United States (1)	$	4,439	$	4,093	$	3,531	$	19,750	$	13,833
Non-U.S.:
Chile	1,932		2,064		2,297		3,018		2,730
Dominican Republic	1,400		1,591		1,087		1,098		1,013
El Salvador	935		902		792		442		395
Colombia	706		417		383		390		308
Brazil	697		560		471		2,482		1,811
Panama	644		678		595		1,910		1,880
Mexico	536		595		471		271		409
Bulgaria	528		790		700		483		487
Argentina	407		501		390		431		461
Vietnam (2)	344		323		320		—		1
Jordan	97		102		98		39		41
Other Non-U.S.	3		1		6		24		26
Total Non-U.S.	8,229		8,524		7,610		10,588		9,562
Total	$	12,668	$	12,617	$	11,141	$	30,338	$	23,395

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(1)     Includes Puerto Rico revenues of $269 million, $293 million, and $311 million for the years ended December 31, 2023, 2022, and 2021, respectively, and long-lived assets of $145 million and $96 million as of December 31, 2023 and 2022, respectively.

(2)     The Mong Duong 2 power project is operated under a BOT contract. Future expected payments for the construction performance obligation were recognized in Other noncurrent assets on the Consolidated Balance Sheets as of December 31, 2022. The Mong Duong assets were classified as held-for-sale as of December 31, 2023. See Note 20—Revenue and Note 24—Held-for-Sale and Dispositions for further information.