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Segment and Geographic Information
 12 Months Ended
Dec. 31, 2011
SEGMENT AND GEOGRAPHIC INFORMATION
  Revenue Property, Plant & Equipment, net
  2011 2010 2009 2011 2010
                
  (in millions)
United States(1) $ 2,256 $ 2,095 $ 1,987 $ 8,448 $ 6,027
Non-U.S.:               
Brazil(2)   6,640   6,355   5,292   5,896   6,263
Chile   1,608   1,355   1,239   2,781   2,560
Argentina(3)   979   771   571   279   270
El Salvador   752   648   619   268   261
Dominican Republic   674   535   429   662   625
United Kingdom(4)   587   364   228   523   507
Philippines   480   501   250   766   784
Ukraine   418   356   286   94   86
Mexico   404   409   329   774   786
Cameroon   386   422   370   901   823
Colombia   365   393   347   384   387
Puerto Rico   298   253   267   581   596
Spain(5)   258   411   -   -   -
Bulgaria(6)   251   44   -   1,619   1,825
Hungary(7)   204   252   259   6   73
Panama   189   194   168   1,040   921
Kazakhstan   145   138   123   86   63
Sri Lanka   140   100   109   22   69
Jordan   124   120   104   216   224
Qatar(8)   -   -   -   -   -
Pakistan(9)   -   -   -   -   -
Oman(10)   -   -   -   -   -
Other Non-U.S. (11)   116   112   133   385   279
Total Non-U.S.    15,018   13,733   11,123   17,283   17,402
Total $ 17,274 $ 15,828 $ 13,110 $ 25,731 $ 23,429

(1)       Excludes revenue of $228 million, $519 million and $559 million for the years ended December 31, 2011, 2010 and 2009, respectively, and property, plant and equipment of $140 million as of December 31, 2010, related to Eastern Energy and Thames, which were reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

(2)       Excludes revenue of $124 million, $118 million and $102 million for the years ended December 31, 2011, 2010 and 2009, respectively, and property, plant and equipment of $151 million as of December 31, 2010, related to Brazil Telecom, which was reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

(3)       Excludes revenue of $102 million, $116 million and $113 million for the years ended December 31, 2011, 2010 and 2009, respectively, and property, plant and equipment of $189 million as of December 31, 2010, related to our Argentina distribution businesses, which were reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

(4)       Excludes revenue of $17 million, $21 million and $11 million for the years ended December 31, 2011, 2010 and 2009, respectively, and property, plant and equipment of $20 million as of December 31, 2010, related to carbon reduction projects, which were reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

(5)       Excludes property, plant and equipment of $620 million and $667 million as of December 31, 2011 and 2010, respectively, related to Cartagena, which was reflected as businesses held for sale in the accompanying Consolidated Balance Sheets.

(6)       Maritza and our wind project in Bulgaria were under development and therefore not operational as of December 31, 2009. Our wind project in Bulgaria started operations in 2010 and Maritza started operations in June 2011.

(7)       Excludes revenue of $14 million, $44 million and $58 million for the years ended December 31, 2011, 2010 and 2009, respectively, and property, plant and equipment of $7 million as of December 31, 2010, related to Borsod and Tiszapalkonya, which were reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

(8)       Excludes revenue of $129 million and $163 million for the years ended December 31, 2010 and 2009, respectively, related to Ras Laffan, which was reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations.

(9)       Excludes revenue of $299 million and $470 million for the years ended December 31, 2010 and 2009, respectively, related to Lal Pir and Pak Gen, which were reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations.

(10)        Excludes revenue of $62 million and $101 million for the years ended December 31, 2010 and 2009, respectively, related to Barka, which was reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations.

(11)       Excludes revenue of $1 million for the year ended December 31, 2011, and property, plant and equipment of $2 million and $18 million as of December 31, 2011, and 2010, respectively, related to alternative energy and carbon reduction projects, which were reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

 

16. SEGMENT AND GEOGRAPHIC INFORMATION

The Company's current management reporting structure is organized along our two lines of business (Generation and Utilities) and three regions: (1) Latin America & Africa; (2) North America; and (3) Europe, Middle East & Asia (collectively “EMEA”). The segment reporting structure uses the Company's management reporting structure as its foundation to reflect how the Company manages the business internally. In October 2011, the Company announced a plan to redefine its operational management and organizational structure. The reporting structure will remain organized along two lines of business – Generation and Utilities, each led by a Chief Operating Officer, however, we are continuing to evaluate both the timing and impact, if any, that the realignment will have on our reportable segments. For the year ended December 31, 2011 the Company applied the segment reporting accounting guidance, which provides certain quantitative thresholds and aggregation criteria, and concluded it has the following six reportable segments:

•       Latin America—Generation;

•       Latin America—Utilities;

•       North America—Generation;

•       North America—Utilities;

•       Europe—Generation;

•       Asia—Generation.

Corporate and Other – The Company's Europe Utilities, Africa Utilities, Africa Generation, Wind Generation operating segments and climate solutions and other renewables projects are reported within “Corporate and Other” because they do not meet the criteria to allow for aggregation with another operating segment or the quantitative thresholds that would require separate disclosure under segment reporting accounting guidance. None of these operating segments are currently material to our presentation of reportable segments, individually or in the aggregate. AES Solar and certain other unconsolidated businesses are accounted for using the equity method of accounting; therefore, their operating results are included in “Net Equity in Earnings of Affiliates” on the face of the Consolidated Statements of Operations, not in revenue or gross margin. “Corporate and Other” also includes costs related to corporate overhead costs which are not directly associated with the operations of our six reportable segments and other intercompany charges such as self-insurance premiums which are fully eliminated in consolidation.

The Company uses Adjusted Gross Margin, a non-GAAP measure, to evaluate the performance of its segments. Adjusted Gross Margin is defined by the Company as: Gross Margin plus depreciation and amortization less general and administrative expenses.

Segment revenue includes inter-segment sales related to the transfer of electricity from generation plants to utilities within Latin America. No material inter-segment revenue relationships exist between other segments. Corporate allocations include certain management fees and self insurance activities which are reflected within segment Adjusted Gross Margin. All intra-segment activity has been eliminated with respect to revenue and Adjusted Gross Margin within the segment. Inter-segment activity has been eliminated within the total consolidated results. All balance sheet information for businesses that were discontinued or classified as held for sale as of December 31, 2011 is segregated and is shown in the line “Discontinued Businesses” in the accompanying segment tables.  

The tables below present the breakdown of business segment balance sheet and income statement data as of and for the years ended December 31, 2011 through 2009:

  Total Revenue Intersegment External Revenue
  2011 2010 2009 2011 2010 2009 2011 2010 2009
                            
  (in millions)
Revenue                           
Latin America - Generation $ 4,982 $ 4,281 $ 3,651 $ (1,148) $ (1,017) $ (864) $ 3,834 $ 3,264 $ 2,787
Latin America - Utilities    7,374   6,987   5,877   -   -   -   7,374   6,987   5,877
North America - Generation   1,465   1,453   1,381   (4)   -   -   1,461   1,453   1,381
North America - Utilities   1,326   1,145   1,068   -   -   -   1,326   1,145   1,068
Europe - Generation   1,550   1,318   762   (2)   (2)   2   1,548   1,316   764
Asia - Generation   625   618   375   -   -   -   625   618   375
Corp/Other and eliminations   (48)   26   (4)   1,154   1,019   862   1,106   1,045   858
Total Revenue $ 17,274 $ 15,828 $ 13,110 $ - $ - $ - $ 17,274 $ 15,828 $ 13,110

   Total Adjusted Gross Margin Intersegment External Adjusted Gross Margin
   2011 2010 2009 2011 2010 2009 2011 2010 2009
                             
   (in millions)
Adjusted Gross Margin                           
Latin America - Generation $ 2,086 $ 1,698 $ 1,528 $ (1,090) $ (1,010) $ (852) $ 996 $ 688 $ 676
Latin America - Utilities   1,321   1,248   1,060   1,118   1,018   865   2,439   2,266   1,925
North America - Generation   533   540   537   9   2   (3)   542   542   534
North America - Utilities   394   407   401   1   2   2   395   409   403
Europe - Generation   469   395   273   8   3   4   477   398   277
Asia - Generation   176   255   111   2   2   4   178   257   115
Corp/Other and eliminations   (27)   65   16   (48)   (17)   (20)   (75)   48   (4)
Reconciliation to Income from Continuing Operations before Taxes         
Depreciation and amortization   (1,209)   (1,064)   (908)
Interest expense    (1,603)   (1,503)   (1,461)
Interest income    400   408   344
Other expense   (156)   (234)   (104)
Other income   149   100   459
Gain on sale of investments   8   -   131
Goodwill impairment   (17)   (21)   (122)
Asset impairment expense   (225)   (389)   (20)
Foreign currency transaction gains (losses)   (38)   (33)   35
Other non-operating expense   (82)   (7)   (12)
Income from continuing operations before taxes and equity in earnings of affiliates $ 2,179 $ 1,865 $ 2,268

  Total Assets Depreciation and Amortization Capital Expenditures
  2011 2010 2009 2011 2010 2009 2011 2010 2009
                            
  (in millions)
                            
Latin America - Generation $ 10,713 $ 10,373 $ 9,802 $ 261 $ 215 $ 183 $ 658 $ 641 $ 951
Latin America - Utilities   9,468   9,609   8,810   293   231   201   666   584   356
North America - Generation   4,326   4,519   4,914   150   160   158   64   71   64
North America - Utilities   9,384   3,139   3,035   178   161   157   232   177   116
Europe - Generation   3,276   3,317   3,147   136   114   53   140   233   212
Asia - Generation   1,717   1,762   1,594   33   33   32   129   10   22
Discontinued businesses   829   1,844   3,023   27   81   117   66   88   100
Corp/Other and eliminations   5,620   5,948   5,210   184   183   148   506   529   717
Total $ 45,333 $ 40,511 $ 39,535 $ 1,262 $ 1,178 $ 1,049 $ 2,461 $ 2,333 $ 2,538

  Investment in and          
  Advances to Affiliates Equity in Earnings (Loss) 
  2011 2010 2009 2011 2010 2009 
                    
  (in millions) 
                    
Latin America - Generation $ 188 $ 150 $ 129 $ 35 $ 48 $ 30 
Latin America - Utilities   -   -   -   -   -   - 
North America - Generation   18   -   3   (2)   (2)   (2) 
North America - Utilities   -   -   -   -   -   - 
Europe - Generation   479   353   308   8   19   50 
Asia - Generation   291   409   390   (1)   3   28 
Discontinued businesses   -   -   -   -   -   - 
Corp/Other and eliminations   446   408   327   (42)   116   (13) 
Total $ 1,422 $ 1,320 $ 1,157 $ (2) $ 184 $ 93 

The table below presents information, by country, about the Company's consolidated operations for each of the years ended December 31, 2011 through 2009 and as of December 31, 2011 and 2010, respectively. Revenue is recorded in the country in which it is earned and assets are recorded in the country in which they are located.

(1)       Excludes revenue of $228 million, $519 million and $559 million for the years ended December 31, 2011, 2010 and 2009, respectively, and property, plant and equipment of $140 million as of December 31, 2010, related to Eastern Energy and Thames, which were reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

(2)       Excludes revenue of $124 million, $118 million and $102 million for the years ended December 31, 2011, 2010 and 2009, respectively, and property, plant and equipment of $151 million as of December 31, 2010, related to Brazil Telecom, which was reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

(3)       Excludes revenue of $102 million, $116 million and $113 million for the years ended December 31, 2011, 2010 and 2009, respectively, and property, plant and equipment of $189 million as of December 31, 2010, related to our Argentina distribution businesses, which were reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

(4)       Excludes revenue of $17 million, $21 million and $11 million for the years ended December 31, 2011, 2010 and 2009, respectively, and property, plant and equipment of $20 million as of December 31, 2010, related to carbon reduction projects, which were reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

(5)       Excludes property, plant and equipment of $620 million and $667 million as of December 31, 2011 and 2010, respectively, related to Cartagena, which was reflected as businesses held for sale in the accompanying Consolidated Balance Sheets.

(6)       Maritza and our wind project in Bulgaria were under development and therefore not operational as of December 31, 2009. Our wind project in Bulgaria started operations in 2010 and Maritza started operations in June 2011.

(7)       Excludes revenue of $14 million, $44 million and $58 million for the years ended December 31, 2011, 2010 and 2009, respectively, and property, plant and equipment of $7 million as of December 31, 2010, related to Borsod and Tiszapalkonya, which were reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.

(8)       Excludes revenue of $129 million and $163 million for the years ended December 31, 2010 and 2009, respectively, related to Ras Laffan, which was reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations.

(9)       Excludes revenue of $299 million and $470 million for the years ended December 31, 2010 and 2009, respectively, related to Lal Pir and Pak Gen, which were reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations.

(10)        Excludes revenue of $62 million and $101 million for the years ended December 31, 2010 and 2009, respectively, related to Barka, which was reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations.

(11)       Excludes revenue of $1 million for the year ended December 31, 2011, and property, plant and equipment of $2 million and $18 million as of December 31, 2011, and 2010, respectively, related to alternative energy and carbon reduction projects, which were reflected as discontinued operations and businesses held for sale in the accompanying Consolidated Statements of Operations and Consolidated Balance Sheets.