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Segments Segments (Policies)
 3 Months Ended
Mar. 31, 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 March 31,
Total Revenue 20242023
Renewables SBU$619 $495 
Utilities SBU873 971 
Energy Infrastructure SBU1,614 1,724 
New Energy Technologies SBU— 74 
Corporate and Other33 27 
Eliminations(54)(52)
Total Revenue$3,085 $3,239 
Three Months Ended March 31,
Reconciliation of Adjusted EBITDA (in millions)20242023
Net income$278 $189 
Income tax expense (benefit)
(16)72 
Interest expense357 330 
Interest income(105)(123)
Depreciation and amortization312 273 
EBITDA$826 $741 
Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1)
(162)(170)
Less: Income tax expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates
33 39 
Interest income recognized under service concession arrangements17 18 
Unrealized derivatives, equity securities, and financial assets and liabilities gains
(85)(39)
Unrealized foreign currency losses (gains)
(9)32 
Disposition/acquisition gains
(43)(3)
Impairment losses26 9 
Loss on extinguishment of debt and troubled debt restructuring
32 1 
Adjusted EBITDA$635 $628 
_____________________________
(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 March 31,
Adjusted EBITDA20242023
Renewables SBU$102 $124 
Utilities SBU182 162 
Energy Infrastructure SBU360 363 
New Energy Technologies SBU(17)(26)
Corporate and Other8 (1)
Eliminations— 6 
Adjusted EBITDA$635 $628 
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 AssetsMarch 31, 2024December 31, 2023
Renewables SBU$17,021 $15,735 
Utilities SBU7,694 7,166 
Energy Infrastructure SBU7,536 7,414 
New Energy Technologies SBU15 14 
Corporate and Other26 9 
Long-Lived Assets32,292 30,338 
Current assets7,170 6,649 
Investments in and advances to affiliates1,029 941 
Debt service reserves and other deposits199 194 
Goodwill348 348 
Other intangible assets2,258 2,243 
Deferred income taxes395 396 
Other noncurrent assets, excluding right-of-use assets for operating leases2,606 2,879 
Noncurrent held-for-sale assets
748 811 
Total Assets$47,045 $44,799