SEGMENTS

The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the business internally and is organized by geographic regions which 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 Executive Officer (“CEO”). Using the accounting guidance on segment reporting, the Company has determined that it has six reportable segments corresponding to its six SBUs:


•	US SBU;


•	Andes SBU;


•	Brazil SBU;


•	MCAC SBU;


•	EMEA SBU; and


•	Asia SBU

Corporate and Other — 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 Condensed 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 six 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 investors in determining which businesses have the greatest impact on the overall Company results.

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 March 31, 2014 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 periods indicated was as follows:



Revenue	Total Revenue				Intersegment						External Revenue
Three Months Ended March 31,	2014		2013		2014			2013			2014		2013
	(in millions)
US SBU	$	1,001	$	886	$	—		$	—		$	1,001	$	886
Andes SBU	620		690		—			—			620		690
Brazil SBU	1,445		1,429		—			—			1,445		1,429
MCAC SBU	638		669		(1		)	—			637		669
EMEA SBU	391		343		—			—			391		343
Asia SBU	168		133		—			—			168		133
Corporate and Other	2		1		(2		)	(1		)	—		—
Total Revenue	$	4,265	$	4,151	$	(3	)	$	(1	)	$	4,262	$	4,150



	Total Adjusted Pre-tax Contribution						Intersegment						External Adjusted Pre-tax Contribution
Adjusted Pre-Tax Contribution ⁽¹⁾	Total Adjusted Pre-tax Contribution						Intersegment						External Adjusted Pre-tax Contribution
Three Months Ended March 31,	2014			2013			2014			2013			2014			2013
	(in millions)
US SBU	$	75		$	133		$	3		$	2		$	78		$	135
Andes SBU	53			81			3			3			56			84
Brazil SBU	69			42			1			1			70			43
MCAC SBU	65			56			4			3			69			59
EMEA SBU	115			96			3			3			118			99
Asia SBU	8			31			1			1			9			32
Corporate and Other	(142		)	(169		)	(15		)	(13		)	(157		)	(182		)
Total Adjusted Pre-Tax Contribution	$	243		$	270		$	—		$	—		$	243		$	270
Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative gains (losses)													10			(14		)
Unrealized foreign currency gains (losses)													(26		)	(25		)
Disposition/acquisition gains													1			3
Impairment losses													(166		)	(48		)
Loss on extinguishment of debt													(134		)	(43		)
Pre-tax contribution													(72		)	143
Add: income from continuing operations before taxes, attributable to noncontrolling interests													215			171
Less: Net equity in earnings of affiliates													25			4
Income from continuing operations before taxes and equity in earnings of affiliates													$	118		$	310

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⁽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 the periods indicated were as follows:



	Total Assets
	March 31, 2014		December 31, 2013
Assets	(in millions)
US SBU	$	9,813	$	9,952
Andes SBU	7,276		7,356
Brazil SBU	9,288		8,388
MCAC SBU	5,058		5,075
EMEA SBU	4,276		4,191
Asia SBU	2,920		2,810
Discontinued businesses	1,590		1,718
Corporate and Other & eliminations	752		921
Total Assets	$	40,973	$	40,411