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 operating and six reportable segments corresponding to its 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 The AES Corporation excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses related to derivative transactions, (b) unrealized foreign currency gains or losses, (c) gains or losses and associated benefits and costs due to dispositions and acquisitions of business interests, including early plant closures, and the tax impact from the repatriation of sales proceeds, (d) losses due to impairments, and (e) gains, losses and costs due to the early retirement of debt. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities. The Company has concluded that Adjusted PTC better 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 has 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 March 31,
Total Revenue	2017			2016
US SBU	$	808		$	855
Andes SBU	618			622
Brazil SBU	1,039			839
MCAC SBU	586			519
Europe SBU	237			246
Asia SBU	192			194
Corporate and Other	14			1
Eliminations	(2		)	(5		)
Total Revenue	$	3,492		$	3,271



	Three Months Ended March 31,
Total Adjusted PTC	2017			2016
Reconciliation from Income from Continuing Operations before Taxes and Equity In Earnings of Affiliates:
Income from continuing operations before taxes and equity in earnings of affiliates	$	160		$	173
Add: Net equity in earnings of affiliates	7			6
Less: Income (loss) from continuing operations before taxes, attributable to noncontrolling interests	171			(17		)
Pretax contribution	(4		)	196
Unrealized derivative gains	(1		)	(34		)
Unrealized foreign currency transaction gains	(9		)	(9		)
Disposition/acquisition (gains) losses	52			(19		)
Impairment expense	168			50
Gains on extinguishment of debt	(16		)	1
Total Adjusted PTC	$	190		$	185

	Three Months Ended March 31,
Total Adjusted PTC	2017			2016
US SBU	$	48		$	85
Andes SBU	88			61
Brazil SBU	39			5
MCAC SBU	59			48
Europe SBU	55			69
Asia SBU	22			22
Corporate and Other	(121		)	(105		)
Total Adjusted PTC	$	190		$	185



Total Assets	March 31, 2017		December 31, 2016
US SBU	$	9,229	$	9,333
Andes SBU	9,349		8,971
Brazil SBU	6,405		6,448
MCAC SBU	5,355		5,162
Europe SBU	2,506		2,664
Asia SBU	3,290		3,113
Assets of held-for-sale businesses	24		—
Corporate and Other	350		428
Total Assets	$	36,508	$	36,119