Adjusted Pre-Tax Contribution (Adjusted PTC, a non-GAAP financial 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, significant gains or losses due to dispositions and acquisitions of business interests, significant losses due to impairments and costs due to the early retirement of debt. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis. 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.
|Table 3: Adjusted PTC 1 by SBU|
|Full Year 2012||Full Year 2011|
|Total AES Adjusted PTC 1,2||$||1,377||M||$||1,078||M|
|Adjusted Effective Tax Rate||32%||26%|
|Adjusted EPS 1||$||1.24||$||1.02|
- US – An increase of $229 million, driven by the first full year of contributions from DPL, improved performance at Hawaii and Southland, due to the temporary restart of Huntington Beach Units 3 and 4.
- Andes – A decrease of $139 million due to lower spot margins and second quarter outages in Chile, as well as higher maintenance costs in Argentina.
- Brazil – A decrease of $94 million, primarily due to the impact of the tariff reset at Eletropaulo and the depreciation of the Real.
- MCAC – An increase of $82 million driven by the first full year of operations of Changuinola in Panama.
- EMEA – An increase of $132 million primarily due to the first full year of contributions of Maritza in Bulgaria, as well as a non-recurring arbitration settlement at Cartagena in Spain.
- Asia – An increase of $102 million driven by higher market demand at Masinloc in the Philippines.