Other Income and Expense

3 Months Ended

Mar. 31, 2013

OTHER INCOME AND EXPENSE

12. OTHER INCOME AND EXPENSE

Other Income

Other income generally includes contract terminations, gains on asset sales and extinguishments of liabilities, favorable judgments on contingencies, and other income from miscellaneous transactions. The components of other income are summarized as follows:

	Three Months Ended
	March 31,
	2013		2012
	(in millions)
Contract termination	$	60	$	-
Gain on sale of assets		1		2
Other		7		16
Total other income	$	68	$	18

Other income of $68 million for the three months ended March 31, 2013was primarily due tothe termination of the PPA at Beaver Valley.

Other income of $18 million for the three months ended March 31, 2012was primarily due to the release of a reserve recorded against inventory at Ballylumford and the receipt of dividends from a cost method investment at Gener.

Other Expense

Other expense generally includes losses on asset sales, losses on extinguishment of debt, legal contingencies and losses from other miscellaneous transactions. The components of other expense are summarized as follows:

	Three Months Ended
	March 31,
	2013		2012
	(in millions)
Loss on extinguishment of debt	$	47	$	-
Loss on sale and disposal of assets		15		24
Contract termination		7		-
Other		6		4
Total other expense	$	75	$	28

Other expense for the three months ended March 31, 2013 of $75 million was primarilydue tothe loss on the early extinguishment of debt at Masinloc, the loss on disposal of assets at Eletropaulo and the termination of a coal contract at Beaver Valley.

Other expense for the three months ended March 31, 2012of $28 million was primarily due to losses on the disposal of assets at Eletropaulo.