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 (1)unrealized gains or losses related to derivative transactions, (2) unrealized foreign currency gains or losses, (3)gains or losses due to dispositions and acquisitions of business interests, (4) losses due to impairments, and (5)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 are presented before inter-segment eliminations, which 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):



	Total Revenue
Three Months Ended March 31,	2016			2015
US SBU	$	855		$	997
Andes SBU	622			612
Brazil SBU	1,040			1,330
MCAC SBU	519			598
Europe SBU	246			330
Asia SBU	194			119
Corporate and Other	1			4
Eliminations	$	(6	)	$	(6	)
Total Revenue	$	3,471		$	3,984



	Total Adjusted PTC
Three Months Ended March 31,	2016			2015
US SBU	$	85		$	106
Andes SBU	61			91
Brazil SBU	(9		)	21
MCAC SBU	48			50
Europe SBU	69			85
Asia SBU	22			12
Corporate and Other	(104		)	(113		)
Total Adjusted PTC	$	172		$	252
Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative gains	34			15
Unrealized foreign currency gains (losses)	8			(47		)
Disposition/acquisition gains	19			5
Impairment losses	(50		)	(6		)
Loss on extinguishment of debt	(1		)	(27		)
Pretax contribution	182			192
Add: (Loss) Income from continuing operations before taxes attributable to noncontrolling interests	(16		)	158
Less: Net equity in earnings of affiliates	6			15
Income from continuing operations before taxes and equity in earnings of affiliates	$	160		$	335



Total Assets	March 31, 2016		December 31, 2015
US SBU	$	9,890	$	9,800
Andes SBU	8,484		8,594
Brazil SBU	6,988		6,419
MCAC SBU	4,921		4,820
Europe SBU	3,140		3,101
Asia SBU	3,135		3,099
Assets of held-for-sale businesses	—		96
Corporate and Other	342		541
Total Assets	$	36,900	$	36,470