5. OPERATING SEGMENTS

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

The tables below show segment information for 2018, 2017 and 2016:


INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31. 2018
DESCRIÇÃO	ENERGY									GAS			TELECOM (1)			OTHER (1)			ELIMINATIONS			TOTAL
DESCRIÇÃO	GENERATION (1)			TRANSMISSION			DISTRIBUTION (1)			GAS			TELECOM (1)			OTHER (1)			ELIMINATIONS			TOTAL
SEGMENT ASSETS		14,671			3,862			37,840			1,822			10			2,607			(957	)		59,855
INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED ENTITIES		4,055			1,163			—			—			—			17			—			5,235
ADDITIONS TO THE SEGMENT		559			—			129			—			9			—			—			697
ADDITIONS TO FINANCIAL ASSETS		—			96			727			70			—			—			—			893
CONTINUING OPERATIONS
NET REVENUE		6,374			675			13,757			1,619			—			134			(293	)		22,266
COST OF ENERGY AND GAS
Energy bought for resale		(3,917	)		—			(7,238	)		—			—			—			71			(11,084	)
Charges for use of the national grid		(216	)		—			(1,463	)		—			—			—			200			(1,480	)
Gas bought for resale											(1,238	)											(1,238	)

Total		(4,133	)		—			(8,701	)		(1,238	)		—			—			271			(13,802	)
OPERATING COSTS AND EXPENSES
Personnel		(230	)		(108	)		(965	)		(60	)		(18	)		(29	)		—			(1,410	)
Employees’ and managers’ profit sharing		(10	)		(7	)		(51	)		—			—			(10	)		—			(77	)
Post-employment obligations		(46	)		(27	)		(224	)		—			—			(41	)		—			(337	)
Materials		(39	)		(4	)		(58	)		(2	)		(1	)		—			—			(104	)
Outsourced services		(123	)		(40	)		(880	)		(20	)		(9	)		(30	)		15			(1,087	)
Depreciation and amortization		(164	)		—			(595	)		(74	)		(1	)		(1	)		—			(835	)
Operating provisions (reversals)		(107	)		(12	)		(332	)		2			1			(18	)		—			(466	)
Construction costs		—			(96	)		(757	)		(45	)		—			—			—			(897	)
Other operating expenses, net		(65	)		(17	)		(203	)		(13	)		(3	)		(109	)		7			(405	)

Total cost of operation		(784	)		(311	)		(4,065	)		(212	)		(31	)		(238	)		22			(5,618	)

OPERATING COSTS AND EXPENSES		(4,917	)		(311	)		(12,766	)		(1,450	)		(31	)		(238	)		293			(19,420	)
Equity in earning of unconsolidated investees, net		(353	)		231			33			—			(1	)		(14	)		—			(104	)
Remeasurement of previously held equity interest in subsidiaries acquired		80			—			(52	)		—			—			(147	)		—			(119	)
Adjustment for impairment of Investments		(127	)		—			—			—			—			—			—			(127	)

OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES)		1,057			595			972			169			(32	)		(265	)		—			2,496
Finance income		1,113			61			434			84			1			13			—			1,706
Finance expenses		(1,536	)		(5	)		(621	)		(38	)		(5	)		(19	)		—			(2,224	)

INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAXES		634			651			785			215			(36	)		(271	)		—			1,978
Income and Social Contribution taxes		(276	)		(122	)		(217	)		(53	)		12			57			—			-599

NET INCOME (LOSS) FROM CONTINUING OPERATIONS		358			529			568			162			(24	)		(214	)		—			1,379
DISCONTINUED OPERATIONS
NET INCOME AFTER TAX FROM DISCONTINUED OPERATIONS (Note 33)		11			—			62			—			290			—			—			363

NET INCOME (LOSS) FOR THE YEAR		369			529			630			162			266			(214	)		—			1,742
Equity holders of the parent		361			529			599			161			266			(216	)		—			1,700
Non-controlling interests		8			—			31			1			—			2			—			42

		369			529			630			162			266			(214	)		—			1,742

(1)

As stated in Note 33, certain assets in generation, distribution, telecommunications and other market segments were classified as held for sale. The revenues and expenses from these segments have been presented separating profits (losses) from continuing operations from those relating to discontinued operations.

The following is a breakdown of the revenue of the Company by activity:


2018	ENERGY									GAS			OTHER			ELIMINATIONS			TOTAL
2018	GENERATION			TRANSMISSION			DISTRIBUTION			GAS			OTHER			ELIMINATIONS			TOTAL
Revenue from supply of energy		7,065			—			17,885			—			—			(78	)		24,872
Revenue from Use of Distribution Systems (the TUSD charge)		—			—			2,067			—			—			(22	)		2,045
CVA and Other financial components in tariff adjustment		—			—			1,973			—			—			—			1,973
Transmission concession revenue		—			589			—			—			—			(178	)		411
Transmission construction revenue		—			96			—			—			—			—			96
Concession assets – indemnity revenue		—			250			—			—			—			—			250
Generation assets – indemnity revenue		55			—			—			—			—			—			55
Distribution construction revenue		—			—			757			45			—			—			802
Adjustment to expectation of cash flow from Financial assets of distribution concession to be indemnified		—			—			—			—			—			—			—
Gain on inflation updating of Concession Grant Fee		321			—			—			—			—			—			321
Transactions in energy on the CCEE		217			—			—						—			—			217
Supply of gas		—			—			—			1,995			—			—			1,995
Fine for violation of continuity indicator		—			—			(44	)		—			—			—			(44	)
Other operating revenues		82			29			1,345			—			144			(15	)		1,585
Sector / Regulatory charges reported as Deductions from revenue		(1,366	)		(288	)		(10,226	)		(421	)		(11	)		—			(12,312	)

Net operating revenue		6,374			676			13,757			1,619			133			-293			22,266

For further details of operating revenue, see Note 28.


INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2017
	ENERGY									TELECOMS			GAS			OTHER			ELIMINATIONS			TOTAL
	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 ENERGY AND GAS
Energy 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-employment obligations		39			19			180			—			—			(9	)		—			229
Materials		(11	)		(4	)		(43	)		—			(2	)		(1	)		—			(61	)
Raw materials and inputs for production of energy		(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

Equity holders of the parent		13			637			(226	)		3			133			139			—			699
Non-controlling interests		—			—			—			—			1			—			—			1

		13			637			(226	)		3			134			139			—			700

The following is a breakdown of the revenue of the Company by activity:


2017	ENERGY									TELECOMS			GAS			OTHER			ELIMINATIONS			TOTAL
2017	GENERATION			TRANSMISSION			DISTRIBUTION			TELECOMS			GAS			OTHER			ELIMINATIONS			TOTAL
Revenue from supply of energy		7,340			—			16,442			—			—						(81	)		23,701
Revenue from Use of Distribution Systems (the TUSD charge)		—			—			1,643			—			—			—			(32	)		1,611
CVA and Other financial components in tariff adjustment		—			—			988			—			—			—			—			988
Transmission concession revenue		—			519			—			—			—			—			(148	)		371
Transmission construction revenue		—			25			—			—			—			—			—			25
Concession assets – reimbursement revenue		—			373			—			—			—			—			—			373
Generation assets – reimbursement revenue		271			—			—			—			—			—			—			271
Distribution construction revenue		—			—			1,045			—			49			—			—			1,094
Adjustment to expectation from reimbursement of distribution concession financial assets		—			—			9			—			—			—			—			9
Gain on inflation updating of concession grant fee		317			—			—			—			—			—			—			317
Transactions in energy on the CCEE		860			—			—			—			—			—			—			860
Supply of gas		—			—			—			—			1,759			—			—			1,759
Other operating revenues		37			9			1,175			168			1			120			(26	)		1,484
Sector / Regulatory charges reported as Deductions from revenue		(1,430	)		(167	)		(9,177	)		(41	)		(327	)		(9	)		—			(11,151	)

Net operating revenue		7,395			759			12,125			127			1,482			111			(287	)		21,712

For further details of operating revenue, see Note 28.


INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2016
	ENERGY									TELECOMS			GAS			OTHER			ELIMINATIONS			TOTAL
	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 ENERGY AND GAS		—			—			—			—			—			—			—			—
Energy 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-employment 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	)

Equity holders of the parent		(787	)		1,200			(885	)		5			98			150			—			(219	)
Non-controlling interests		—			—			—			—			—			—			—			—

		(787	)		1,200			(885	)		5			98			150			—			(219	)

The following is a breakdown of the revenue of the Company by activity:


2016	ENERGY									TELECOMS			GAS			OTHER			ELIMINATIONS			TOTAL
2016	GENERATION			TRANSMISSION			DISTRIBUTION			TELECOMS			GAS			OTHER			ELIMINATIONS			TOTAL
Revenue from supply of energy		6,809			—			16,688			—			—			—			(67	)		23,430
Revenue from Use of Distribution Systems (the TUSD charge)		—			—			1,740			—			—			—			(35	)		1,705
CVA and Other financial components in tariff adjustment		—			—			(1,455	)		—			—			—			—			(1,455	)
Transmission concession revenue		—			410			—			—			—			—			(98	)		312
Transmission construction revenue		—			54			—			—			—			—			—			54
Concession assets – reimbursement revenue		—			751			—			—			—			—			—			751
Generation assets – reimbursement revenue		—			—			—			—			—			—			—
Distribution construction revenue		—			—			1,102			—			37						—			1,139
Adjustment to expectation from reimbursement of distribution concession financial assets		—			—			8			—			—			—			—			8
Gain on inflation updating of concession grant fee		300			—			—						—			—			—			300
Transactions in energy on the CCEE		161			—			—			—			—			—			—			161
Supply of gas		—			—			—			—			1,444			—			—			1,444
Other operating revenues		22			14			1,134			159			—			125			(33	)		1,421
Sector / Regulatory charges reported as Deductions from revenue		(1,322	)		(211	)		(8,620	)		(34	)		(301	)		(9	)		—			(10,497	)

Net operating revenue		5,970			1,018			10,597			125			1,180			116			(233	)		18,773