5.	OPERATING SEGMENTS

The operating segments of the Company reflect their management and their organizational structure, used to monitoring its results.

The Company also operates in the markets of gas and telecommunications, through its subsidiaries Gasmig and Cemig Telecom (see Note 1), and other businesses which are not material to its results of its operations. These segments are reflected in the Company’s management, organizational structure, and monitoring of results.

The tables below show segment information for 2017, 2016 and 2015:


INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2017
	ELECTRICITY
	GENERATION			TRANSMISSION			DISTRIBUTION			TELECOMS			GAS			OTHER			ELIMINATIONS			TOTAL
SEGMENT ASSETS		14,366			3,955			20,021			347			2,000			1,582			(32	)		42,239
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES		4,723			1,122			1,918			—			—			29			—			7,792
ADDITIONS TO THE SEGMENT		308			—			1,083			47			56			1			—			1,495
ADDITIONS TO FINANCIAL ASSETS		—			25			—			—			—			—			—			25
NET REVENUE		7,190			777			12,312			127			1,482			112			(288	)		21,712
COST OF ELECTRICITY AND GAS
Electricity bought for resale		(4,209	)		—			(6,783	)		—			—			—			73			(10,919	)
Charges for use of the national grid		(353	)		—			(1,002	)		—			—			—			181			(1,174	)
Gas bought for resale		—			—			—			—			(1,071	)		—			—			(1,071	)

Operational costs, total		(4,562	)		—			(7,785	)		—			(1,071	)		—			254			(13,164	)
OPERATING COSTS AND EXPENSES
Personnel		(281	)		(106	)		(1,123	)		(20	)		(56	)		(41	)		—			(1,627	)
Employees’ and managers’ profit sharing		(1	)		—			(3	)		—			—			(1	)		—			(5	)
Post-retirement obligations		39			19			180			—			—			(9	)		—			229
Materials		(11	)		(4	)		(43	)		—			(2	)		(1	)		—			(61	)
Raw materials and inputs for production of electricity		(10	)		—			—			—			—			—			—			(10	)
Outsourced services		(127	)		(31	)		(785	)		(28	)		(17	)		(16	)		30			(974	)
Depreciation and amortization		(176	)		—			(567	)		(35	)		(71	)		(1	)		—			(850	)
Operating provisions (reversals)		(139	)		(10	)		(469	)		(1	)		(2	)		(233	)		—			(854	)
Construction costs		—			(25	)		(1,045	)		—			(49	)		—			—			(1,119	)
Other operating expenses, net		(117	)		(11	)		(408	)		(23	)		(15	)		187			4			(383	)

Total cost of operation		(823	)		(168	)		(4,263	)		(107	)		(212	)		(115	)		34			(5,654	)
OPERATING COSTS AND EXPENSES		(5,385	)		(168	)		(12,048	)		(107	)		(1,283	)		(115	)		288			(18,818	)
OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES)		1,805			609			264			20			199			(3	)		—			2,894
Equity in earnings of unconsolidated investees, net		(519	)		234			42			(2	)		—			(7	)		—			(252	)
Finance income		226			9			397			3			49			120			—			804
Finance expenses		(1,161	)		(3	)		(815	)		(15	)		(43	)		237			—			(1,800	)

INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAXES		351			849			(112	)		6			205			347			—			1,646
Income and Social Contribution taxes		(257	)		(189	)		31			(3	)		(71	)		(155	)		—			(644	)

NET INCOME (LOSS) FOR THE YEAR		94			660			(81	)		3			134			192			—			1,002

OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to profit or loss
Post retirement liabilities – restatement of obligations of the defined benefit plans, net of taxes		(47	)		(23	)		(145	)		—			—			(46	)		—			(261	)
Equity gain (loss) on Other comprehensive income in subsidiary and jointly-controlled entity, net of tax		—			—			—			—			—			(3	)		—			(3	)

		(47	)		(23	)		(145	)		—			—			(49	)		—			(264	)
Items that may be reclassified to profit or loss
Equity gain on Other comprehensive income, in subsidiary and jointly-controlled entity, relating to fair value of financial asset available for sale, net of tax		(34	)		—			—			—			—			(4	)		—			(38	)

		(34	)		—			—			—			—			(4	)		—			(38	)

COMPREHENSIVE INCOME FOR THE YEAR		13			637			(226	)		3			134			139			—			700

Controlling shareholders		13			637			(226	)		3			133			139			—			699
Non-controlling shareholder		—			—			—			—			1			—			—			1


INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2016
	ELECTRICITY
	GENERATION			TRANSMISSION			DISTRIBUTION			TELECOMS			GAS			OTHER			ELIMINATIONS			TOTAL
SEGMENT ASSETS		14,414			4,267			18,166			338			2,737			2,389			(276	)		42,035
ADDITIONS TO THE SEGMENT		916			—			1,602			163			56			—			—			2,737
ADDITIONS TO FINANCIAL ASSETS		2,217			54			—			—			—			—			—			2,271
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES		5,292			1,670			1,754			18			—			19			—			8,753
NET REVENUE		5,875			1,113			10,597			125			1,181			116			(234	)		18,773
COST OF ELECTRICITY AND GAS		—			—			—			—			—			—			—			—
Electricity bought for resale		(3,071	)		—			(5,260	)		—			—			—			59			(8,272	)
Charges for use of the national grid		(321	)		—			(760	)		—			—			—			134			(947	)
Gas bought for resale		—			—			—			—			(877	)		—			—			(877	)

Operating costs, total		(3,392	)		—			(6,020	)		—			(877	)		—			193			(10,096	)
OPERATING COSTS AND EXPENSES		—			—			—			—			—			—			—			—
Personnel		(271	)		(111	)		(1,147	)		(23	)		(47	)		(45	)		—			(1,644	)
Employees’ and managers’ profit sharing		(1	)		—			(10	)		(1	)		—			4			—			(8	)
Post-retirement obligations		(54	)		(23	)		(231	)		—			—			(37	)		—			(345	)
Materials		(11	)		(3	)		(42	)		—			(2	)		—			—			(58	)
Outsourced services		(129	)		(30	)		(674	)		(23	)		(16	)		(32	)		37			(867	)
Depreciation and amortization		(202	)		—			(525	)		(38	)		(54	)		(16	)		—			(835	)
Operating provisions (reversals)		(88	)		(10	)		(544	)		(4	)		—			(67	)		—			(713	)
Construction costs		—			(54	)		(1,102	)		—			(37	)		—			—			(1,193	)
Other operating expenses, net		(57	)		(13	)		(395	)		11			(8	)		313			4			(145	)

Total cost of operation		(813	)		(244	)		(4,670	)		(78	)		(164	)		120			41			(5,808	)
OPERATING COSTS AND EXPENSES		(4,205	)		(244	)		(10,690	)		(78	)		(1,041	)		120			234			(15,904	)
OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES)		1,670			869			(93	)		47			140			236			—			2,869
Equity in earnings of unconsolidated investees, net		(448	)		362			(180	)		(31	)		—			(5	)		—			(302	)
Adjustment for loss of value in Investments		(763	)		—			—			—			—			—			—			(763	)
Finance income		190			7			743			4			15			82			—			1,041
Finance expenses		(1,320	)		(4	)		(1,078	)		(9	)		(49	)		(18	)		—			(2,478	)

INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAXES		(671	)		1,234			(608	)		11			106			295			—			367
Income tax and the Social Contribution tax		(24	)		5			103			(6	)		(8	)		(103	)		—			(33	)

NET INCOME (LOSS) FOR THE YEAR		(695	)		1,239			(505	)		5			98			192			—			334
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to profit or loss
Post retirement liabilities – restatement of obligations of the defined benefit plans, net of taxes		(92	)		—			(380	)		—			—			(43	)		—			(515	)
Equity gain (loss) on Other comprehensive income in jointly-controlled entities		—			—			—			—			—			4			—			4
Items that may be reclassified to profit or loss
Conversion adjustment of equity gain (loss) in other comprehensive income in subsidiary and jointly-controlled entity		—			—			—			—			—			(3	)		—			(3	)
Recycling of conversion adjustments to the Income statement arising from sale of Transchile		—			(39	)		—			—			—			—			—			(39	)

COMPREHENSIVE INCOME FOR THE YEAR		(787	)		1,200			(885	)		5			98			150			—			(219	)
Total of comprehensive income for the year attributed to:

Controlling shareholders		(787	)		1,200			(885	)		5			98			150			—			(219	)
Non-controlling shareholder		—			—			—			—			—			—			—			—


OPERATING SEGMENTS AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2015
ITEM	GENERATION			TRANSMISSION			DISTRIBUTION			TELECOM			GAS			*OTHER ()**			ELIMINATIONS			TOTAL
SEGMENT ASSETS		13,382			4,880			17,738			317			2,530			2,986			(976	)		40,857
ADDITIONS TO THE SEGMENT		577			—			1,044			42			62			1			—			1,726
ADDITIONS TO FINANCIAL ASSETS					146																		146
INVESTMENTS IN ASSOCIATES AND JOINTLY-CONTROLLED ENTITIES		5,751			2,423			1,547			—			—			24			—			9,745
NET REVENUE		7,047			519			12,962			123			1,395			90			(268	)		21,868
OPERATING COSTS
Electricity purchased for resale		(2,669	)		—			(6,993	)		—			—			—			120			(9,542	)
Charges for the use of the national grid		(297	)		—			(814	)		—			—						112			(999	)
Gas purchased for resale		—			—			—			—			(1,051	)		—			—			(1,051	)

		(2,966	)		—			(7,807	)		—			(1,051	)					232			(11,592	)
OTHER COSTS
Personnel		(224	)		(113	)		(1,000	)		(15	)		(43	)		(40	)		—			(1,435	)
Employees’ and managers’ profit sharing		(24	)		(12	)		(95	)		(2	)		—			(4	)		—			(137	)
Post-retirement liabilities		(21	)		(10	)		(121	)		—			—			(4	)		—			(156	)
Materials		(95	)		(5	)		(52	)		—			(2	)		—			—			(154	)
Outsourced services		(143	)		(37	)		(697	)		(25	)		(15	)		(13	)		31			(899	)
Depreciation and amortization		(273	)		—			(444	)		(49	)		(54	)		(15	)		—			(835	)
Operating provisions (reversals)		(109	)		2			(209	)		(1	)		—			(1,084	)		—			(1,401	)
Construction costs		—			(146	)		(1,044	)		—			(62	)		—			—			(1,252	)
Other operating expenses. net		(62	)		(16	)		(283	)		(20	)		(9	)		(42	)		5			(426	)

Total cost of operation		(951	)		(337	)		(3,945	)		(112	)		(185	)		(1,202	)		36			(6,695	)
TOTAL COSTS AND EXPENSES		(3,917	)		(337	)		(11,752	)		(112	)		(1,236	)		(1,202	)		268			(18,287	)
OPERATING INCOME BEFORE EQUITY GAINS (LOSSES) AND FINANCE INCOME (EXPENSES)		3,130			182			1,210			11			159			(1,112	)					3,581
Equity in earnings of unconsolidated investees, net		17			410			(6	)		(28	)		—			—			—			393
Fair value results in Corporate Operation		729			—			—			—			—			—			—			729
Finance income		199			22			543			4			23			73						863
Finance expenses		(984	)		(7	)		(1,130	)		(6	)		(42	)		(35	)		—			(2,204	)

Income before income tax and social contribution taxes		3,091			607			617			(19	)		140			(1,074	)		—			3,362

Income and social contribution taxes		(836	)		(71	)		(256	)		(16	)		(23	)		309			—			(893	)

NET INCOME (LOSS) FOR THE YEAR		2,255			536			361			(35	)		117			(765	)		—			2,469

OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to profit or loss
Post retirement liabilities – restatement of obligations of the defined benefit plans, net of taxes		(84	)		—			(170	)		—			—			(106	)		—			(360	)
Equity gain (loss) on Other comprehensive income in jointly-controlled entities		—			—			—			—			—			(1	)		—			(1	)
Items that may be reclassified to profit or loss
Equity gain (loss) on Other comprehensive income in jointly-controlled entities		14			—			—			—			—			40			—			54

COMPREHENSIVE INCOME FOR THE YEAR		2,171			536			194			(35	)		117			(821	)		—			2,162

Total of comprehensive income for the year attributed to:
Controlling shareholders		2,171			536			194			(35	)		117			(821	)		—			2,162
Non-controlling shareholder		—			—			—			—			—			—			—			—

(*)	The expense of R$ 1,084 recorded as operating provisions in the Others column refers substantially to expenses on the option to purchase investments held by the parent company and described in Note 15.