SEGMENTS

The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the businesses internally and is organized by geographic regions which provide better socio-political-economic understanding of our business. The management reporting structure is organized along six SBUs — led by our Chief Executive Officer (“CEO”). Using the accounting guidance on segment reporting, the Company has determined that it has six reportable segments corresponding to its six SBUs:


•	US SBU;


•	Andes SBU;


•	Brazil SBU;


•	MCAC SBU;


•	Europe SBU; and


•	Asia SBU

Corporate and Other — Corporate overhead costs which are not directly associated with the operations of our six reportable segments are included in “Corporate and Other.” Also included are certain 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 pretax 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 complexity, the Company concluded that Adjusted PTC is a more transparent measure that better assists investors in determining which businesses have the greatest impact on the overall Company results.

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.

Information about the Company’s operations by segment for the periods indicated was as follows:



Revenue	Total Revenue				Intersegment						External Revenue
Three Months Ended June 30,	2015		2014		2015			2014			2015		2014
	(in millions)
US SBU	$	831	$	893	$	—		$	—		$	831	$	893
Andes SBU	630		724		(2		)	(1		)	628		723
Brazil SBU	1,315		1,533		—			—			1,315		1,533
MCAC SBU	601		692		(1		)	—			600		692
Europe SBU	299		305		(3		)	—			296		305
Asia SBU	187		163		—			—			187		163
Corporate and Other	6		5		(5		)	(3		)	1		2
Total Revenue	$	3,869	$	4,315	$	(11	)	$	(4	)	$	3,858	$	4,311



Revenue	Total Revenue				Intersegment						External Revenue
Six Months Ended June 30,	2015		2014		2015			2014			2015		2014
	(in millions)
US SBU	$	1,828	$	1,894	$	—		$	—		$	1,828	$	1,894
Andes SBU	1,242		1,344		(4		)	(1		)	1,238		1,343
Brazil SBU	2,645		2,978		—			—			2,645		2,978
MCAC SBU	1,199		1,330		(2		)	(1		)	1,197		1,329
Europe SBU	629		696		(3		)	—			626		696
Asia SBU	306		331		—			—			306		331
Corporate and Other	10		7		(8		)	(5		)	2		2
Total Revenue	$	7,859	$	8,580	$	(17	)	$	(7	)	$	7,842	$	8,573



Adjusted PTC ⁽¹⁾	Total Adjusted PTC						Intersegment						External Adjusted PTC
Three Months Ended June 30,	2015			2014			2015			2014			2015			2014
	(in millions)
US SBU	$	56		$	80		$	3		$	3		$	59		$	83
Andes SBU	81			104			5			1			86			105
Brazil SBU	41			115			—			—			41			115
MCAC SBU	106			95			5			10			111			105
Europe SBU	41			73			(1		)	3			40			76
Asia SBU	30			23			1			—			31			23
Corporate and Other	(104		)	(150		)	(13		)	(17		)	(117		)	(167		)
Total Adjusted PTC	$	251		$	340		$	—		$	—		$	251		$	340
Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative gains													2			22
Unrealized foreign currency gains (losses)													3			(7		)
Disposition/acquisition gains (losses)													4			(2		)
Impairment losses													(30		)	(99		)
Loss on extinguishment of debt													(115		)	(13		)
Pretax contribution													115			241
Add: Income from continuing operations before taxes, attributable to noncontrolling interests													269			197
Less: Net equity in earnings of affiliates													—			20
Income from continuing operations before taxes and equity in earnings of affiliates													$	384		$	418



Adjusted PTC ⁽¹⁾	Total Adjusted PTC						Intersegment						External Adjusted PTC
Six Months Ended June 30,	2015			2014			2015			2014			2015			2014
	(in millions)
US SBU	$	162		$	155		$	6		$	6		$	168		$	161
Andes SBU	172			157			8			4			180			161
Brazil SBU	62			184			1			1			63			185
MCAC SBU	156			160			9			14			165			174
Europe SBU	126			188			2			6			128			194
Asia SBU	42			31			1			1			43			32
Corporate and Other	(217		)	(292		)	(27		)	(32		)	(244		)	(324		)
Total Adjusted PTC	$	503		$	583		$	—		$	—		$	503		$	583
Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative gains													17			32
Unrealized foreign currency losses													(44		)	(33		)
Disposition/acquisition gains (losses)													9			(1		)
Impairment losses													(36		)	(265		)
Loss on extinguishment of debt													(142		)	(147		)
Pretax contribution													307			169
Add: Income from continuing operations before taxes, attributable to noncontrolling interests													427			412
Less: Net equity in earnings of affiliates													15			45
Income from continuing operations before taxes and equity in earnings of affiliates													$	719		$	536

_____________________________


⁽¹⁾	Adjusted PTC in each segment before intersegment eliminations includes the effect of intercompany transactions with other segments except for interest, charges for certain management fees and the write-off of intercompany balances.



Total Assets	June 30, 2015		December 31, 2014
	(in millions)
US SBU	$	10,089	$	10,062
Andes SBU	8,349		7,888
Brazil SBU	7,790		8,439
MCAC SBU	5,031		4,948
Europe SBU	3,497		3,525
Asia SBU	3,127		2,972
Assets of held-for-sale businesses	158		—
Corporate and Other & eliminations	543		1,132
Total Assets	$	38,584	$	38,966