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Segments | 3 Months Ended
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Mar. 31, 2013
SEGMENTS | 11. SEGMENTS The segment reporting structure uses the Company's management reporting structure as its foundation to reflect how the Company manages the business internally with further aggregation by geographic regions to provide better socio-political-economic understanding of our business. The management reporting structure is organized along six strategic business units (“SBUs”) – led by our Chief Operating Officer (“COO”), who in turn reports to our Chief Executive Officer (“CEO”). Upon the application of the accounting guidance for segment reporting, the Company has identified eight reportable segments based on the six strategic business units: US – Generation; US – Utilities; Andes – Generation; Brazil – Generation; Brazil – Utilities; MCAC – Generation; EMEA – Generation; and Asia – Generation. Corporate and Other— The Company's EMEA and MCAC Utilities operating segments 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 the 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 A djusted pre-tax contribution (“Adjusted PTC”). “Corporate and Other” also includes corporate overhead costs which are not directly associated with the operations of our eight reportable segments and other intercompany charges such as self-insurance premiums which are fully eliminated in consolidation. The Company uses Adjusted PTC as its primary segment performance measure. Adjusted PTC, a non-GAAP measure, is defined by the Company as pre-tax income from continuing operations attributable to AES excluding unrealized gains or losses related to derivative transactions, unrealized foreign currency gains or losses, gains or losses due to dispositions and acquisitions of business interests, losses due to impairments and costs due to the early retirement of debt. The Company has concluded that Adjusted PTC best 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 c omplexity, the Company concluded that Adjusted PTC is a more transparent measure that better assists the investor in determining which businesses have the greatest impact on the overall Company results. Total revenue includes inter-segment revenue related to the transfer of electricity from generation plants to utilities within Brazil. No material inter-segment revenue relationships exist between other segments. Corporate allocations include certain self-insurance activities which are reflected within segment adjusted PTC. All intra-segment activity has been eliminated with respect to revenue and adjusted PTC within the segment. Inter-segment activity has been eliminated within the total consolidated results. Asset information for businesses that were discontinued or classified as held for sale as of March 31, 2013 is segregated and is shown in the line “Discontinued Businesses” in the accompanying segment tables. Information about the Company's operations by segment for the three months ended March 31, 2013 and 2012 was as follows:
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended |  | Total Revenue |  | Intersegment |  | External Revenue
March 31, |  | 2013 |  | 2012 |  | 2013 |  | 2012 |  | 2013 |  | 2012
|  | (in millions)
US - Generation |  | $ | 170 |  | $ | 198 |  | $ | - |  | $ | - |  | $ | 170 |  | $ | 198
US - Utilities |  |  | 722 |  |  | 732 |  |  | - |  |  | - |  |  | 722 |  |  | 732
Andes - Generation |  |  | 691 |  |  | 734 |  |  | - |  |  | (9) |  |  | 691 |  |  | 725
Brazil - Generation |  |  | 386 |  |  | 305 |  |  | (280) |  |  | (282) |  |  | 106 |  |  | 23
Brazil - Utilities |  |  | 1,323 |  |  | 1,531 |  |  | - |  |  | - |  |  | 1,323 |  |  | 1,531
MCAC - Generation |  |  | 458 |  |  | 393 |  |  | (1) |  |  | (1) |  |  | 457 |  |  | 392
EMEA - Generation |  |  | 351 |  |  | 477 |  |  | (8) |  |  | (9) |  |  | 343 |  |  | 468
Asia - Generation |  |  | 134 |  |  | 182 |  |  | - |  |  | - |  |  | 134 |  |  | 182
Corporate and Other |  |  | 320 |  |  | 336 |  |  | (1) |  |  | (1) |  |  | 319 |  |  | 335
Total Revenue |  | $ | 4,555 |  | $ | 4,888 |  | $ | (290) |  | $ | (302) |  | $ | 4,265 |  | $ | 4,586
Adjusted Pre-Tax Contribution(1) |  | Total Adjusted |  |  |  |  |  |  |  | External Adjusted
Three Months Ended |  | Pre-tax Contribution |  | Intersegment |  | Pre-tax Contribution
March 31, |  | 2013 |  | 2012 |  | 2013 |  | 2012 |  | 2013 |  | 2012
|  | (in millions)
US - Generation |  | $ | 65 |  | $ | 36 |  | $ | 2 |  | $ | 11 |  | $ | 67 |  | $ | 47
US - Utilities |  |  | 70 |  |  | 57 |  |  | - |  |  | - |  |  | 70 |  |  | 57
Andes - Generation |  |  | 80 |  |  | 111 |  |  | 3 |  |  | (5) |  |  | 83 |  |  | 106
Brazil - Generation |  |  | 40 |  |  | 52 |  |  | (67) |  |  | (68) |  |  | (27) |  |  | (16)
Brazil - Utilities |  |  | 2 |  |  | 56 |  |  | 45 |  |  | 46 |  |  | 47 |  |  | 102
MCAC - Generation |  |  | 48 |  |  | 71 |  |  | 3 |  |  | 2 |  |  | 51 |  |  | 73
EMEA - Generation |  |  | 94 |  |  | 187 |  |  | (2) |  |  | (14) |  |  | 92 |  |  | 173
Asia - Generation |  |  | 31 |  |  | 32 |  |  | 1 |  |  | - |  |  | 32 |  |  | 32
Corporate and Other |  |  | (165) |  |  | (189) |  |  | 15 |  |  | 28 |  |  | (150) |  |  | (161)
Total |  |  | 265 |  |  | 413 |  |  | - |  |  | - |  |  | 265 |  |  | 413
Reconciliation to Income from Continuing Operations before Taxes and Equity earnings of Affiliates:
Non-GAAP Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized derivative losses |  |  | (13) |  |  | (30)
Unrealized foreign currency gains (losses) |  |  | (27) |  |  | 29
Disposition/acquisition gains |  |  | 3 |  |  | 178
Impairment losses |  |  | (48) |  |  | (58)
Debt retirement losses |  |  | (43) |  |  | -
Pre-tax contribution |  |  | 137 |  |  | 532
Add: income from continuing operations before taxes, attributable to noncontrolling interests |  |  | 166 |  |  | 250
Less: Net equity in earnings of affiliates |  |  | 4 |  |  | 13
Income from continuing operations before taxes and equity in earnings of affiliates |  | $ | 299 |  | $ | 769
_____________________________ Adjusted pre-tax contribution in each segment before intersegment eliminations includes the effect of intercompany transactions with other segments except for interest and charges for certain management fees. Assets by segment as of March 31, 2013 and December 31, 2012 were as follows:
|  |  | Total Assets
|  |  | March 31, 2013 |  | December 31, 2012
|  |  | (in millions)
| Assets |  |  |  |  |  |
| US - Generation |  | $ | 3,184 |  | $ | 3,259
| US - Utilities |  |  | 7,576 |  |  | 7,534
| Andes - Generation |  |  | 6,554 |  |  | 6,619
| Brazil - Generation |  |  | 1,867 |  |  | 1,590
| Brazil - Utilities |  |  | 8,424 |  |  | 8,120
| MCAC - Generation |  |  | 4,440 |  |  | 4,293
| EMEA - Generation |  |  | 4,568 |  |  | 4,578
| Asia - Generation |  |  | 2,702 |  |  | 2,625
| Discontinued businesses |  |  | 173 |  |  | 202
| Corporate and Other & eliminations |  |  | 3,230 |  |  | 3,010
| Total assets |  | $ | 42,718 |  | $ | 41,830

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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