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Segments | 6 Months Ended
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Jun. 30, 2018
Segment Reporting [Abstract] |
SEGMENTS | 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 mainly organized by geographic regions which provides a socio-political-economic understanding of our business. During the first quarter of 2018, the Andes and Brazil SBUs were merged in order to leverage scale and are now reported together as part of the South America SBU. Further, Puerto Rico and El Salvador businesses, formerly part of the MCAC SBU, were combined with the US SBU, which is now reported as the US and Utilities SBU. The management reporting structure is organized by four SBUs led by our President and Chief Executive Officer: US and Utilities, South America, MCAC, and Eurasia SBUs. Using the accounting guidance on segment reporting, the Company determined that its four operating segments are aligned with its four reportable segments corresponding to its SBUs. All prior period results have been retrospectively revised to reflect the new segment reporting structure. Corporate and Other — The results of the Fluence and Simple Energy equity affiliates are included in “Corporate and Other.” Also included are corporate overhead costs which are not directly associated with the operations of our four reportable segments, and 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 pre-tax 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 and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts, relocations, and office consolidation. 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 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 | 2018 |  | 2017 |  | 2018 |  | 2017
US and Utilities SBU | $ | 995 |  |  | $ | 1,046 |  |  | $ | 2,022 |  |  | $ | 2,093 |
South America SBU | 846 |  |  | 796 |  |  | 1,741 |  |  | 1,543 |
MCAC SBU | 406 |  |  | 375 |  |  | 814 |  |  | 723 |
Eurasia SBU | 292 |  |  | 395 |  |  | 711 |  |  | 824 |
Corporate and Other | 5 |  |  | 6 |  |  | 14 |  |  | 20 |
Eliminations | (7 | ) |  | (5 | ) |  | (25 | ) |  | (9 | )
Total Revenue | $ | 2,537 |  |  | $ | 2,613 |  |  | $ | 5,277 |  |  | $ | 5,194 |
| Three Months Ended June 30, |  | Six Months Ended June 30,
Total Adjusted PTC | 2018 |  | 2017 |  | 2018 |  | 2017
Income from continuing operations before taxes and equity in earnings of affiliates | $ | 342 |  |  | $ | 226 |  |  | $ | 1,340 |  |  | $ | 383 |
Add: Net equity in earnings of affiliates | 14 |  |  | 2 |  |  | 25 |  |  | 9 |
Less: Income from continuing operations before taxes, attributable to noncontrolling interests | (167 | ) |  | (125 | ) |  | (293 | ) |  | (293 | )
Pre-tax contribution | 189 |  |  | 103 |  |  | 1,072 |  |  | 99 |
Unrealized derivative and equity securities losses (gains) | (24 | ) |  | 2 |  |  | (12 | ) |  | 1 |
Unrealized foreign currency losses (gains) | 52 |  |  | (24 | ) |  | 49 |  |  | (33 | )
Disposition/acquisition losses (gains) | (61 | ) |  | 56 |  |  | (839 | ) |  | 108 |
Impairment expense | 92 |  |  | 94 |  |  | 92 |  |  | 262 |
Losses (gains) on extinguishment of debt | 7 |  |  | 11 |  |  | 178 |  |  | (5 | )
Restructuring costs | — |  |  | — |  |  | 3 |  |  | — |
Total Adjusted PTC | $ | 255 |  |  | $ | 242 |  |  | $ | 543 |  |  | $ | 432 |
| Three Months Ended June 30, |  | Six Months Ended June 30,
Total Adjusted PTC | 2018 |  | 2017 |  | 2018 |  | 2017
US and Utilities SBU | $ | 76 |  |  | $ | 89 |  |  | $ | 196 |  |  | $ | 150 |
South America SBU | 117 |  |  | 95 |  |  | 253 |  |  | 222 |
MCAC SBU | 81 |  |  | 72 |  |  | 134 |  |  | 118 |
Eurasia SBU | 55 |  |  | 80 |  |  | 138 |  |  | 157 |
Corporate and Other | (74 | ) |  | (94 | ) |  | (178 | ) |  | (215 | )
Total Adjusted PTC | $ | 255 |  |  | $ | 242 |  |  | $ | 543 |  |  | $ | 432 |
Total Assets | June 30, 2018 |  | December 31, 2017
US and Utilities SBU | $ | 11,817 |  |  | $ | 11,297 |
South America SBU | 11,255 |  |  | 10,874 |
MCAC SBU | 4,335 |  |  | 4,087 |
Eurasia SBU | 4,659 |  |  | 4,557 |
Assets held-for-sale | 108 |  |  | 2,034 |
Corporate and Other | 423 |  |  | 263 |
Total Assets | $ | 32,597 |  |  | $ | 33,112 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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