The components of other income for the three and six months ended June 30, 2011 and 2010 were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010

	(in millions)
Extinguishment of liability	$	-	$	62	$	-	$	62
Gain on sale of assets		14		-		16		-
Other		20		6		34		15
Total other income	$	34	$	68	$	50	$	77

Other income generally includes gains on asset sales and extinguishments of liabilities, favorable judgments on contingencies and income from miscellaneous transactions.

Other income of $34 million for the three months ended June 30, 2011 was primarily related to the gain on sale of mineral rights and land in Indiana at IPL, and the receipt of insurance proceeds related to a claim in Panama for damage associated with the Esti tunnel. Other income of $68 million for the three months ended June 30, 2010 was primarily related to the extinguishment of a swap liability owed by two of our Brazilian subsidiaries, resulting in the recognition of a $62 million gain. The net impact to the Company after taxes and noncontrolling interest was $9 million.

Other income of $50 million for the six months ended June 30, 2011 was primarily related to the gain on sale at IPL and receipt of insurance proceeds described above. Other income of $77 million for the six months ended June 30, 2010 was primarily related to the extinguishment of the swap liability described above.

The components of other expense for the three and six months ended June 30, 2011 and 2010 were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010

	(in millions)
Wind Generation transaction costs	$	-	$	22	$	-	$	22
Loss on sale and disposal of assets		17		12		29		19
Loss on extinguishment of debt		15		9		15		9
Other		6		5		11		10
Total other expense	$	38	$	48	$	55	$	60

Other expense generally includes losses on asset sales, losses on the extinguishment of debt, contingencies and losses from miscellaneous transactions.

Other expense of $38 million for the three months ended June 30, 2011 was primarily comprised of a loss related to the early retirement of senior notes due in 2011 at IPALCO, and a loss on disposal of assets at Eletropaulo. Other expense of $48 million for the three months ended June 30, 2010 was primarily comprised of the write-off of previously capitalized transaction costs of $22 million that were incurred in connection with the preparation for the sale of a noncontrolling interest in our Wind Generation business. The costs were written off upon the expiration of the letter of intent (“LOI”) with China Investment Corporation (“CIC”) on June 30, 2010. AES and CIC mutually agreed to allow the LOI to expire at that time. Other expense also included a loss of $9 million on debt extinguishment at the Parent Company from the retirement of senior notes and a loss on disposal of assets at Eletropaulo and Gener.

Other expense of $55 million for the six months ended June 30, 2011 included early retirement of senior notes due in 2011 at IPALCO and loss on disposal of assets at Eletropaulo, as discussed above. Other expense of $60 million for the six months ended June 30, 2010 included the write-off of previously capitalized transaction costs discussed above, a loss on debt extinguishment at the Parent Company described above and a loss on disposal of assets at Eletropaulo and Gener.