SEGMENTS

The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the business internally with further aggregation by geographic regions to provide better socio-political-economic understanding of our business. The management reporting structure is organized along six strategic business units (“SBUs”) — led by our Chief Operating Officer (“COO”), who in turn reports to our Chief Executive Officer (“CEO”). For the three and six months ended June 30, 2013, the Company applied the accounting guidance for segment reporting which provides certain qualitative and quantitative thresholds and aggregation criteria. The Company concluded that the Gener operating segment met the quantitative threshold to require separate presentation. As such, an additional reportable segment, which consists solely of the results of Gener, is now reported as Andes — Gener — Generation. Gener was previously included as part of the Andes — Generation reportable segment. All of the remaining businesses that were formerly part of the Andes — Generation reportable segment are now reported as Andes — Other — Generation. All prior-period results have been retrospectively revised to reflect the new segment reporting structure. The Company has increased from eight to the following nine reportable segments based on the six strategic business units:


•	US — Generation;


•	US — Utilities;


•	Andes — Gener — Generation;


•	Andes — Other — Generation;


•	Brazil — Generation;


•	Brazil — Utilities;


•	MCAC — Generation;


•	EMEA — Generation; and


•	Asia — Generation.

Corporate and Other — The Company’s EMEA and MCAC Utilities operating segments are reported within “Corporate and Other” because they do not meet the criteria to allow for aggregation with another operating segment or the quantitative thresholds that would require separate disclosure under the segment reporting accounting guidance. None of these operating segments are currently material to our presentation of reportable segments, individually or in the aggregate. AES Solar and certain other unconsolidated businesses are accounted for using the equity method of accounting; therefore, their operating results are included in “Net Equity in Earnings of Affiliates” on the face of the Consolidated Statements of Operations, not in revenue or Adjusted pre-tax contribution (“Adjusted PTC”). “Corporate and Other” also includes corporate overhead costs which are not directly associated with the operations of our nine reportable segments and other 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 AES excluding unrealized gains or losses related to derivative transactions, unrealized foreign currency gains or losses, gains or losses due to dispositions and acquisitions of business interests, losses due to impairments and 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 the investor in determining which businesses have the greatest impact on the overall Company results.

Total revenue includes inter-segment revenue primarily related to the transfer of electricity from generation plants to utilities within Brazil. No material inter-segment revenue relationships exist between other segments. Corporate allocations include certain self-insurance activities which are reflected within segment adjusted PTC. All intra-segment activity has been eliminated with respect to revenue and adjusted PTC within the segment. Inter-segment activity has been eliminated within the total consolidated results. Asset information for businesses that were discontinued or classified as held for sale as of June 30, 2013 is segregated and is shown in the line “Discontinued Businesses” in the accompanying segment tables.

Information about the Company’s operations by segment for the three and six months ended June 30, 2013 and 2012 was as follows:



Revenue Three Months Ended June 30,	Total Revenue				Intersegment						External Revenue
Revenue Three Months Ended June 30,	2013		2012		2013			2012			2013		2012
	(in millions)
US — Generation	$	190	$	216	$	—		$	—		$	190	$	216
US — Utilities	674		678		—			—			674		678
Andes — Gener — Generation	612		547		—			(9		)	612		538
Andes — Other — Generation	112		223		(1		)	—			111		223
Brazil — Generation	279		274		(250		)	(248		)	29		26
Brazil — Utilities	1,202		1,230		—			—			1,202		1,230
MCAC — Generation	471		426		—			—			471		426
EMEA — Generation	314		269		(20		)	(8		)	294		261
Asia — Generation	143		182		—			—			143		182
Corporate and Other	343		310		(1		)	(1		)	342		309
Total Revenue	$	4,340	$	4,355	$	(272	)	$	(266	)	$	4,068	$	4,089



Revenue Six Months Ended June 30,	Total Revenue				Intersegment						External Revenue
Revenue Six Months Ended June 30,	2013		2012		2013			2012			2013		2012
	(in millions)
US — Generation	$	360	$	414	$	—		$	—		$	360	$	414
US — Utilities	1,396		1,410		—			—			1,396		1,410
Andes — Gener — Generation	1,198		1,143		—			(18		)	1,198		1,125
Andes — Other — Generation	217		361		(1		)	—			216		361
Brazil — Generation	665		579		(530		)	(530		)	135		49
Brazil — Utilities	2,525		2,761		—			—			2,525		2,761
MCAC — Generation	929		819		(1		)	(1		)	928		818
EMEA — Generation	665		746		(28		)	(17		)	637		729
Asia — Generation	277		364		—			—			277		364
Corporate and Other	663		646		(2		)	(2		)	661		644
Total Revenue	$	8,895	$	9,243	$	(562	)	$	(568	)	$	8,333	$	8,675



Adjusted Pre-Tax Contribution⁽¹⁾ Three Months Ended June 30,	Total Adjusted Pre-tax Contribution						Intersegment						External Adjusted Pre-tax Contribution
	Total Adjusted Pre-tax Contribution						Intersegment						External Adjusted Pre-tax Contribution
	2013			2012			2013			2012			2013			2012
	(in millions)
US — Generation	$	41		$	42		$	2		$	9		$	43		$	51
US — Utilities	24			32			1			1			25			33
Andes — Gener — Generation	57			24			3			(4		)	60			20
Andes — Other — Generation	28			25			1			—			29			25
Brazil — Generation	66			45			(61		)	(59		)	5			(14		)
Brazil — Utilities	11			9			41			40			52			49
MCAC — Generation	89			88			3			2			92			90
EMEA — Generation	64			55			(9		)	(2		)	55			53
Asia — Generation	40			55			—			1			40			56
Corporate and Other	(149		)	(169		)	19			12			(130		)	(157		)
Total Adjusted Pre-Tax Contribution	271			206			—			—			271			206



Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative gains (losses)	65			(42		)
Unrealized foreign currency gains (losses)	(15		)	(41		)
Disposition/acquisition gains	23			4
Impairment losses	—			(17		)
Loss on extinguishment of debt	(164		)	—
Pre-tax contribution	180			110
Add: income from continuing operations before taxes, attributable to noncontrolling interests	231			102
Less: Net equity in earnings of affiliates	2			11
Income from continuing operations before taxes and equity in earnings of affiliates	$	409		$	201



Adjusted Pre-Tax Contribution⁽¹⁾ Six Months Ended June 30,	Total Adjusted Pre-tax Contribution						Intersegment						External Adjusted Pre-tax Contribution
	Total Adjusted Pre-tax Contribution						Intersegment						External Adjusted Pre-tax Contribution
	2013			2012			2013			2012			2013			2012
	(in millions)
US — Generation	$	106		$	78		$	4		$	20		$	110		$	98
US — Utilities	94			89			1			1			95			90
Andes — Gener — Generation	131			119			5			(10		)	136			109
Andes — Other — Generation	34			41			2			1			36			42
Brazil — Generation	106			97			(128		)	(127		)	(22		)	(30		)
Brazil — Utilities	13			65			86			86			99			151
MCAC — Generation	137			159			6			4			143			163
EMEA — Generation	158			242			(11		)	(16		)	147			226
Asia — Generation	71			87			1			1			72			88
Corporate and Other	(314		)	(358		)	34			40			(280		)	(318		)
Total Adjusted Pre-Tax Contribution	$	536		$	619		—			—			536			619



Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative gains (losses)	52			(72		)
Unrealized foreign currency gains (losses)	(42		)	(12		)
Disposition/acquisition gains	26			182
Impairment losses	(48		)	(75		)
Loss on extinguishment of debt	(207		)	—
Pre-tax contribution	317			642
Add: income from continuing operations before taxes, attributable to noncontrolling interests	397			352
Less: Net equity in earnings of affiliates	6			24
Income from continuing operations before taxes and equity in earnings of affiliates	$	708		$	970

_____________________________


⁽¹⁾	Adjusted Pre-tax contribution in each segment before intersegment eliminations includes the effect of intercompany transactions with other segments except for interest, charges for certain management fees and the write-off of intercompany balances.

Assets by segment as of June 30, 2013 and December 31, 2012 were as follows:



	Total Assets
	June 30, 2013		December 31, 2012
	(in millions)
Assets
US — Generation	$	3,157	$	3,259
US — Utilities	7,427		7,534
Andes — Gener — Generation	5,871		5,820
Andes — Other — Generation	754		799
Brazil — Generation	1,446		1,590
Brazil — Utilities	7,566		8,120
MCAC — Generation	4,434		4,293
EMEA — Generation	4,634		4,578
Asia — Generation	2,708		2,625
Discontinued businesses	—		202
Corporate and Other & eliminations	2,839		3,010
Total Assets	$	40,836	$	41,830