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”). The Company applied the accounting guidance for segment reporting which provides certain qualitative and quantitative thresholds and aggregation criteria. In 2013, 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. Silver Ridge Power (formerly AES Solar Holding Company) 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. For the three and nine months ended September 30, 2013, the Company changed the definition of Adjusted PTC to exclude the gains or losses attributable to AES common stockholders at our equity method investments for these same types of items. Previously, these amounts were not excluded from the calculation of Adjusted PTC. Accordingly, the Company has also reflected the change in the comparative three and nine month periods ended September 30, 2012. 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 September 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 nine months ended September 30, 2013 and 2012 was as follows:



Revenue Three Months Ended September 30,	Total Revenue				Intersegment						External Revenue
Revenue Three Months Ended September 30,	2013		2012		2013			2012			2013		2012
	(in millions)
US — Generation	$	207	$	222	$	—		$	—		$	207	$	222
US — Utilities	763		796		—			—			763		796
Andes — Gener — Generation	539		568		—			(8		)	539		560
Andes — Other — Generation	89		207		—			(1		)	89		206
Brazil — Generation	272		268		(222		)	(260		)	50		8
Brazil — Utilities	1,224		1,448		—			—			1,224		1,448
MCAC — Generation	469		437		—			(1		)	469		436
EMEA — Generation	333		268		—			—			333		268
Asia — Generation	113		191		—			—			113		191
Corporate and Other	217		222		(1		)	(2		)	216		220
Total Revenue	$	4,226	$	4,627	$	(223	)	$	(272	)	$	4,003	$	4,355



Revenue Nine Months Ended September 30,	Total Revenue				Intersegment						External Revenue
Revenue Nine Months Ended September 30,	2013		2012		2013			2012			2013		2012
	(in millions)
US — Generation	$	567	$	636	$	—		$	—		$	567	$	636
US — Utilities	2,159		2,206		—			—			2,159		2,206
Andes — Gener — Generation	1,738		1,711		—			(26		)	1,738		1,685
Andes — Other — Generation	306		568		(1		)	(1		)	305		567
Brazil — Generation	937		847		(752		)	(790		)	185		57
Brazil — Utilities	3,749		4,209		—			—			3,749		4,209
MCAC — Generation	1,398		1,256		(1		)	(2		)	1,397		1,254
EMEA — Generation	970		998		—			(1		)	970		997
Asia — Generation	388		553		—			—			388		553
Corporate and Other	655		646		(5		)	(3		)	650		643
Total Revenue	$	12,867	$	13,630	$	(759	)	$	(823	)	$	12,108	$	12,807



Adjusted Pre-Tax Contribution⁽¹⁾ Three Months Ended September 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	$	44		$	40		$	3		$	11		$	47		$	51
US — Utilities	87			108			—			—			87			108
Andes — Gener — Generation	59			88			3			(4		)	62			84
Andes — Other — Generation	50			20			3			1			53			21
Brazil — Generation	37			45			(53		)	(63		)	(16		)	(18		)
Brazil — Utilities	48			40			36			42			84			82
MCAC — Generation	90			87			5			2			95			89
EMEA — Generation	68			53			3			5			71			58
Asia — Generation	30			53			1			—			31			53
Corporate and Other	(126		)	(154		)	(1		)	6			(127		)	(148		)
Total Adjusted Pre-Tax Contribution	387			380			—			—			387			380



Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative gains (losses)	7			(22		)
Unrealized foreign currency gains (losses)	22			22
Disposition/acquisition gains	4			25
Impairment losses	(236		)	(1,893		)
Pre-tax contribution	184			(1,488		)
Add: income from continuing operations before taxes, attributable to noncontrolling interests	217			230
Less: Net equity in earnings of affiliates	15			25
Income (loss) from continuing operations before taxes and equity in earnings of affiliates	$	386		$	(1,283	)



Adjusted Pre-Tax Contribution⁽¹⁾ Nine Months Ended September 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	$	150		$	118		$	7		$	31		$	157		$	149
US — Utilities	181			197			1			1			182			198
Andes — Gener — Generation	190			207			8			(14		)	198			193
Andes — Other — Generation	84			61			5			2			89			63
Brazil — Generation	143			142			(181		)	(190		)	(38		)	(48		)
Brazil — Utilities	61			105			122			128			183			233
MCAC — Generation	227			246			11			6			238			252
EMEA — Generation	236			288			6			(3		)	242			285
Asia — Generation	101			141			2			1			103			142
Corporate and Other	(427		)	(503		)	19			38			(408		)	(465		)
Total Adjusted Pre-Tax Contribution	946			1,002			—			—			946			1,002



Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative gains (losses)	46			(88		)
Unrealized foreign currency gains (losses)	(25		)	8
Disposition/acquisition gains	30			206
Impairment losses	(284		)	(1,973		)
Loss on extinguishment of debt	(207		)	—
Pre-tax contribution	506			(845		)
Add: income from continuing operations before taxes, attributable to noncontrolling interests	620			586
Less: Net equity in earnings of affiliates	21			49
Income (loss) from continuing operations before taxes and equity in earnings of affiliates	$	1,105		$	(308	)

_____________________________


⁽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 September 30, 2013 and December 31, 2012 were as follows:



	Total Assets
	September 30, 2013		December 31, 2012
	(in millions)
Assets
US — Generation	$	3,151	$	3,259
US — Utilities	7,924		7,534
Andes — Gener — Generation	5,969		5,820
Andes — Other — Generation	761		799
Brazil — Generation	1,494		1,590
Brazil — Utilities	7,300		8,120
MCAC — Generation	4,434		4,293
EMEA — Generation	4,125		4,178
Asia — Generation	2,717		2,583
Discontinued businesses	1,609		1,727
Corporate and Other & eliminations	1,766		1,927
Total Assets	$	41,250	$	41,830