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 by six SBUs led by our President and Chief Executive Officer: US; Andes; Brazil; MCAC; Europe; and Asia SBUs. Using the accounting guidance on segment reporting, the Company determined that it has six reportable segments corresponding to its six SBUs.

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 Company’s results.

Revenue and Adjusted PTC 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, as applicable. All intra-segment activity has been eliminated within the segment. Inter-segment activity has been eliminated within the total consolidated results.

The following tables present financial information by segment for the periods indicated (in millions):



Revenue	Total Revenue				Intersegment						External Revenue
Three Months Ended September 30,	2015		2014		2015			2014			2015		2014
US SBU	$	923	$	1,002	$	—		$	—		$	923	$	1,002
Andes SBU	652		704		(2		)	(1		)	650		703
Brazil SBU	1,065		1,548		—			—			1,065		1,548
MCAC SBU	597		693		—			(1		)	597		692
Europe SBU	292		371		(2		)	—			290		371
Asia SBU	195		125		—			—			195		125
Corporate and Other	7		4		(6		)	(4		)	1		—
Total Revenue	$	3,731	$	4,447	$	(10	)	$	(6	)	$	3,721	$	4,441
Nine Months Ended September 30,
US SBU	$	2,751	$	2,896	$	—		$	—		$	2,751	$	2,896
Andes SBU	1,894		2,048		(6		)	(2		)	1,888		2,046
Brazil SBU	3,710		4,526		—			—			3,710		4,526
MCAC SBU	1,796		2,023		(2		)	(2		)	1,794		2,021
Europe SBU	921		1,067		(5		)	—			916		1,067
Asia SBU	501		456		—			—			501		456
Corporate and Other	17		11		(14		)	(9		)	3		2
Total Revenue	$	11,590	$	13,027	$	(27	)	$	(13	)	$	11,563	$	13,014



Adjusted PTC	Total Adjusted PTC						Intersegment						External Adjusted PTC
Three Months Ended September 30,	2015			2014			2015			2014			2015			2014
US SBU	$	101		$	156		$	3		$	3		$	104		$	159
Andes SBU	150			120			4			(1		)	154			119
Brazil SBU	23			—			1			1			24			1
MCAC SBU	92			124			5			4			97			128
Europe SBU	45			79			—			3			45			82
Asia SBU	24			2			1			—			25			2
Corporate and Other	(113		)	(127		)	(14		)	(10		)	(127		)	(137		)
Total Adjusted PTC	$	322		$	354		$	—		$	—		$	322		$	354
Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative gains (losses)													12			(11		)
Unrealized foreign currency losses													(6		)	(62		)
Disposition/acquisition gains													23			367
Impairment losses													(139		)	(30		)
Loss on extinguishment of debt													(21		)	(66		)
Pretax contribution													191			552
Add: Income from continuing operations before taxes attributable to noncontrolling interests													57			48
Less: Net equity in earnings (losses) of affiliates													82			(6		)
Income from continuing operations before taxes and equity in earnings of affiliates													$	166		$	606



Adjusted PTC	Total Adjusted PTC						Intersegment						External Adjusted PTC
Nine Months Ended September 30,	2015			2014			2015			2014			2015			2014
US SBU	$	263		$	311		$	9		$	9		$	272		$	320
Andes SBU	322			277			12			3			334			280
Brazil SBU	85			184			2			2			87			186
MCAC SBU	248			284			14			18			262			302
Europe SBU	171			267			2			9			173			276
Asia SBU	66			33			2			1			68			34
Corporate and Other	(330		)	(419		)	(41		)	(42		)	(371		)	(461		)
Total Adjusted PTC	$	825		$	937		$	—		$	—		$	825		$	937
Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative gains													29			21
Unrealized foreign currency losses													(50		)	(95		)
Disposition/acquisition gains													32			366
Impairment losses													(175		)	(295		)
Loss on extinguishment of debt													(163		)	(213		)
Pretax contribution													498			721
Add: Income from continuing operations before taxes attributable to noncontrolling interests													484			460
Less: Net equity in earnings of affiliates													97			39
Income from continuing operations before taxes and equity in earnings of affiliates													$	885		$	1,142



Total Assets	September 30, 2015		December 31, 2014
US SBU	$	10,071	$	10,062
Andes SBU	8,580		7,888
Brazil SBU	6,289		8,439
MCAC SBU	5,064		4,948
Europe SBU	3,291		3,525
Asia SBU	3,206		2,972
Assets of held-for-sale businesses	52		—
Corporate and Other & eliminations	447		1,132
Total Assets	$	37,000	$	38,966