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 — Certain 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. “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 Pretax Contribution ("Adjusted PTC") as its primary segment performance measure. Adjusted PTC, a non-GAAP measure, is defined by the Company as pretax 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 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 September 30,	2014		2013		2014			2013			2014		2013
	(in millions)
US SBU	$	1,002	$	966	$	—		$	—		$	1,002	$	966
Andes SBU	704		629		(1		)	(1		)	703		628
Brazil SBU	1,548		1,275		—			—			1,548		1,275
MCAC SBU	693		683		(1		)	—			692		683
EMEA SBU	371		332		—			—			371		332
Asia SBU	125		113		—			—			125		113
Corporate and Other	4		1		(4		)	(2		)	—		(1		)
Total Revenue	$	4,447	$	3,999	$	(6	)	$	(3	)	$	4,441	$	3,996



Revenue	Total Revenue				Intersegment						External Revenue
Nine Months Ended September 30,	2014		2013		2014			2013			2014		2013
	(in millions)
US SBU	$	2,896	$	2,710	$	—		$	—		$	2,896	$	2,710
Andes SBU	2,048		2,044		(2		)	(1		)	2,046		2,043
Brazil SBU	4,526		3,934		—			—			4,526		3,934
MCAC SBU	2,023		2,046		(2		)	—			2,021		2,046
EMEA SBU	1,067		970		—			—			1,067		970
Asia SBU	456		388		—			—			456		388
Corporate and Other	11		5		(9		)	(5		)	2		—
Total Revenue	$	13,027	$	12,097	$	(13	)	$	(6	)	$	13,014	$	12,091



	Total Adjusted Pretax Contribution						Intersegment						External Adjusted Pretax Contribution
Adjusted Pretax Contribution ⁽¹⁾	Total Adjusted Pretax Contribution						Intersegment						External Adjusted Pretax Contribution
Three Months Ended September 30,	2014			2013			2014			2013			2014			2013
	(in millions)
US SBU	$	156		$	132		$	3		$	3		$	159		$	135
Andes SBU	120			109			(1		)	6			119			115
Brazil SBU	—			84			1			1			1			85
MCAC SBU	124			96			4			4			128			100
EMEA SBU	79			66			3			3			82			69
Asia SBU	2			30			—			1			2			31
Corporate and Other	(127		)	(130		)	(10		)	(18		)	(137		)	(148		)
Total Adjusted Pretax Contribution	$	354		$	387		$	—		$	—		$	354		$	387
Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative gains (losses)													(11		)	7
Unrealized foreign currency gains (losses)													(62		)	21
Disposition/acquisition gains													367			4
Impairment losses													(30		)	(189		)
Loss on extinguishment of debt													(66		)	—
Pretax contribution													552			230
Add: income from continuing operations before taxes, attributable to noncontrolling interests													48			235
Less: Net equity in earnings of affiliates													(6		)	15
Income from continuing operations before taxes and equity in earnings of affiliates													$	606		$	450



	Total Adjusted Pretax Contribution						Intersegment						External Adjusted Pretax Contribution
Adjusted Pretax Contribution ⁽¹⁾	Total Adjusted Pretax Contribution						Intersegment						External Adjusted Pretax Contribution
Nine Months Ended September 30,	2014			2013			2014			2013			2014			2013
	(in millions)
US SBU	$	311		$	328		$	9		$	8		$	320		$	336
Andes SBU	277			278			3			13			280			291
Brazil SBU	184			204			2			2			186			206
MCAC SBU	284			256			18			11			302			267
EMEA SBU	267			234			9			8			276			242
Asia SBU	33			101			1			2			34			103
Corporate and Other	(419		)	(455		)	(42		)	(44		)	(461		)	(499		)
Total Adjusted Pretax Contribution	$	937		$	946		$	—		$	—		$	937		$	946
Reconciliation to Income from Continuing Operations before Taxes and Equity Earnings of Affiliates:
Non-GAAP Adjustments:
Unrealized derivative gains													21			46
Unrealized foreign currency losses													(95		)	(28		)
Disposition/acquisition gains													366			30
Impairment losses													(295		)	(237		)
Loss on extinguishment of debt													(213		)	(207		)
Pretax contribution													721			550
Add: income from continuing operations before taxes, attributable to noncontrolling interests													460			638
Less: Net equity in earnings of affiliates													39			21
Income from continuing operations before taxes and equity in earnings of affiliates													$	1,142		$	1,167

_____________________________


⁽¹⁾	Adjusted pretax 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.



	Total Assets
	September 30, 2014		December 31, 2013
Assets	(in millions)
US SBU	$	9,899	$	9,952
Andes SBU	7,641		7,356
Brazil SBU	8,709		8,388
MCAC SBU	5,115		5,075
EMEA SBU	3,720		4,191
Asia SBU	3,075		2,810
Discontinued businesses	—		1,718
Corporate and Other & eliminations	824		921
Total Assets	$	38,983	$	40,411