Other Income and Expense

3 Months Ended

Jun. 30, 2012

OTHER INCOME AND EXPENSE

13. OTHER INCOME (EXPENSE)

The components of other income for the three and six months ended June 30, 2012 and 2011 were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
	(in millions)
Gain on sale of assets	$	1	$	14	$	3	$	16
Other		14		20		30		34
Total other income	$	15	$	34	$	33	$	50

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

Other income of $15 million for the three months ended June 30, 2012 was primarily related to the receipt of insurance proceeds related to a claim in Panama for damage to the Esti tunnel. 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 $33 million for the six months ended June 30, 2012 was primarily related to the receipt of insurance proceeds as described above, the release of a heavy fuel oil stockat Ballylumford and the receipt of dividends from a cost method investment at Gener. 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 as described above.

The components of other expense for the three and six months ended June 30, 2012 and 2011 were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
	(in millions)
Loss on sale and disposal of assets	$	11	$	16	$	35	$	26
Loss on extinguishment of debt		-		15		-		15
Other		4		4		9		9
Total other expense	$	15	$	35	$	44	$	50

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

Other expense for the three months ended June 30, 2012 of $15 million was primarilycomprised of losses on the disposal of assets at Eletropaulo. Other expense for the three months ended June 30, 2011 of $35 million 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 $44 million for the six months ended June 30, 2012 was primarily due tothe loss on disposal of assets at Eletropaulo. Other expense of $50 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.