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 provides a 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):



	Three Months Ended June 30,						Six Months Ended June 30,
Total Revenue	2016			2015			2016			2015
US SBU	$	811		$	831		$	1,666		$	1,828
Andes SBU	575			630			1,197			1,242
Brazil SBU	895			1,113			1,734			2,217
MCAC SBU	530			601			1,049			1,199
Europe SBU	222			299			468			629
Asia SBU	201			187			395			306
Corporate and Other	1			6			2			10
Eliminations	(6		)	(11		)	(11		)	(17		)
Total Revenue	$	3,229		$	3,656		$	6,500		$	7,414



	Three Months Ended June 30,						Six Months Ended June 30,
Total Adjusted PTC	2016			2015			2016			2015
US SBU	$	58		$	56		$	143		$	162
Andes SBU	84			81			145			172
Brazil SBU	7			51			12			82
MCAC SBU	75			106			123			156
Europe SBU	34			41			103			126
Asia SBU	26			30			48			42
Corporate and Other	(124		)	(105		)	(229		)	(218		)
Total Adjusted PTC	$	160		$	260		345			522
Reconciliation to Income (loss) from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative (losses) gains	(30		)	2			4			17
Unrealized foreign currency (losses) gains	(17		)	4			(9		)	(43		)
Disposition/acquisition (losses) gains	(17		)	4			2			9
Impairment losses	(235		)	(30		)	(285		)	(36		)
Loss on extinguishment of debt	(6		)	(112		)	(6		)	(138		)
Pretax contribution	$	(145	)	$	128		$	51		$	331
Add: Income from continuing operations before taxes attributable to noncontrolling interests	130			269			114			427
Less: Net equity in earnings of affiliates	7			1			14			15
Income (loss) from continuing operations before taxes and equity in earnings of affiliates	$	(22	)	$	396		151			743



Total Assets	June 30, 2016		December 31, 2015
US SBU	$	9,705	$	9,800
Andes SBU	8,755		8,594
Brazil SBU	6,085		5,209
MCAC SBU	5,146		4,820
Europe SBU	2,807		3,101
Asia SBU	3,126		3,099
Assets of discontinued operations and held-for-sale businesses	1,048		1,306
Corporate and Other	302		541
Total Assets	$	36,974	$	36,470