XML 75 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Equity | 6 Months Ended
--- | ---
Jun. 30, 2014
Equity [Abstract] |
EQUITY | EQUITY Changes in Equity The following table provides a reconciliation of the beginning and ending equity attributable to stockholders of The AES Corporation, noncontrolling interests and total equity as of the periods indicated:
|  | Six Months Ended June 30, 2014 |  | Six Months Ended June 30, 2013
|  | The AES Corporation Stockholders’ Equity |  | Noncontrolling Interests |  | Total Equity |  | The AES Corporation Stockholders’ Equity |  | Noncontrolling Interests |  | Total Equity
|  | (in millions)
Balance at the beginning of the period |  | $ | 4,330 |  |  | $ | 3,321 |  |  | $ | 7,651 |  |  | $ | 4,569 |  |  | $ | 2,945 |  |  | $ | 7,514 |
Net income (loss) |  | 75 |  |  | 266 |  |  | 341 |  |  | 249 |  |  | 283 |  |  | 532 |
Total foreign currency translation adjustment, net of income tax |  | (56 | ) |  | 38 |  |  | (18 | ) |  | (148 | ) |  | (69 | ) |  | (217 | )
Total change in derivative fair value, net of income tax |  | (99 | ) |  | (94 | ) |  | (193 | ) |  | 123 |  |  | 48 |  |  | 171 |
Total pension adjustments, net of income tax |  | 14 |  |  | 17 |  |  | 31 |  |  | 6 |  |  | 21 |  |  | 27 |
Capital contributions from noncontrolling interests |  | — |  |  | 113 |  |  | 113 |  |  | — |  |  | 55 |  |  | 55 |
Distributions to noncontrolling interests |  | — |  |  | (215 | ) |  | (215 | ) |  | — |  |  | (226 | ) |  | (226 | )
Disposition of businesses |  | — |  |  | (151 | ) |  | (151 | ) |  | (1 | ) |  | (20 | ) |  | (21 | )
Acquisition of treasury stock |  | (32 | ) |  | — |  |  | (32 | ) |  | (18 | ) |  | — |  |  | (18 | )
Issuance and exercise of stock-based compensation benefit plans, net of income tax |  | 16 |  |  | — |  |  | 16 |  |  | 24 |  |  | — |  |  | 24 |
Dividends declared on common stock ($0.05 per share) |  | (36 | ) |  | — |  |  | (36 | ) |  | (60 | ) |  | — |  |  | (60 | )
Sale of subsidiary shares to noncontrolling interests |  | — |  |  | — |  |  | — |  |  | 11 |  |  | 22 |  |  | 33 |
Transaction between entities under common control |  | 5 |  |  | 2 |  |  | 7 |  |  | — |  |  | — |  |  | — |
Acquisition of subsidiary shares from noncontrolling interests |  | (6 | ) |  | — |  |  | (6 | ) |  | (6 | ) |  | (1 | ) |  | (7 | )
Balance at the end of the period |  | $ | 4,211 |  |  | $ | 3,297 |  |  | $ | 7,508 |  |  | $ | 4,749 |  |  | $ | 3,058 |  |  | $ | 7,807 |
Equity Transactions with Noncontrolling Interests Masinloc — On June 25, 2014, the Company executed an agreement to sell approximately 45% of its interest in Masin-AES Pte Ltd., a wholly-owned subsidiary that owns the Company's business interests in the Philippines, for $453 million, subject to certain purchase price adjustments. On July 15, 2014, the Company completed the Masinloc sale transaction and received proceeds of $453 million, including $23 million contingent upon the achievement of certain restructuring efficiencies. The proceeds of $453 million are approximately $300 million in excess of the carrying amount at June 30, 2014 of the Company’s 45% interest in Masin-AES Pte Ltd. The sale includes indirect interests in the 630 MW Masinloc coal-fired power plant, ongoing Masinloc facility expansion projects, and approximately 60 MW of potential energy storage projects in advanced development. The Company is currently evaluating the third quarter 2014 accounting implications of this sale. After completion of the sale, the Company continues to own a 51% net ownership interest in Masinloc and will continue to manage and operate the plant, with 41% owned by Electricity Generating Public Company Limited (EGCO Group) and 8% owned by the International Finance Corporation (IFC). As the Company maintained control after the sale, Masinloc will continue to be accounted for as a consolidated subsidiary within the Asia SBU reportable segment. Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component, net of tax and noncontrolling interests for the six months ended June 30, 2014 were as follows:
|  | Unrealized derivative losses, net |  | Unfunded pension obligations, net |  | Foreign currency translation adjustment, net |  | Total
|  | (in millions)
Balance at the beginning of the period |  | $ | (307 | ) |  | $ | (291 | ) |  | $ | (2,284 | ) |  | $ | (2,882 | )
Other comprehensive income before reclassifications |  | (116 | ) |  | 9 |  |  | (9 | ) |  | (116 | )
Amounts reclassified from accumulated other comprehensive loss |  | 17 |  |  | 5 |  |  | (47 | ) |  | (25 | )
Net current-period other comprehensive income |  | (99 | ) |  | 14 |  |  | (56 | ) |  | (141 | )
Balance at the end of the period |  | $ | (406 | ) |  | $ | (277 | ) |  | $ | (2,340 | ) |  | $ | (3,023 | )
Reclassifications out of accumulated other comprehensive loss for the periods indicated were as follows:
|  |  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
Details About Accumulated Other Comprehensive Loss Components |  | Affected Line Item in the Condensed Consolidated Statement of Operations |  | 2014 |  | 2013 |  | 2014 |  | 2013
|  |  |  | (in millions) (1)
Unrealized derivative losses, net |  |
|  | Non-regulated revenue |  | $ | 6 |  |  | $ | (1 | ) |  | $ | 19 |  |  | $ | (1 | )
|  | Non-regulated cost of sales |  | (3 | ) |  | (1 | ) |  | (2 | ) |  | (2 | )
|  | Interest expense |  | (31 | ) |  | (34 | ) |  | (63 | ) |  | (69 | )
|  | Gain on sale of investments |  | — |  |  | (21 | ) |  | — |  |  | (21 | )
|  | Foreign currency transaction gains (losses) |  | 7 |  |  | (17 | ) |  | 4 |  |  | (10 | )
|  | Income from continuing operations before taxes and equity in earnings of affiliates |  | (21 | ) |  | (74 | ) |  | (42 | ) |  | (103 | )
|  | Income tax expense |  | 10 |  |  | 15 |  |  | 13 |  |  | 22 |
|  | Net equity in earnings of affiliates |  | (2 | ) |  | (2 | ) |  | (3 | ) |  | (4 | )
|  | Income from continuing operations |  | (13 | ) |  | (61 | ) |  | (32 | ) |  | (85 | )
|  | Income from continuing operations attributable to noncontrolling interests |  | 15 |  |  | 11 |  |  | 15 |  |  | 13 |
|  | Net income (loss) attributable to The AES Corporation |  | $ | 2 |  |  | $ | (50 | ) |  | $ | (17 | ) |  | $ | (72 | )
Amortization of defined benefit pension actuarial loss, net |  |
|  | Regulated cost of sales |  | $ | (9 | ) |  | $ | (19 | ) |  | $ | (17 | ) |  | $ | (39 | )
|  | Non-regulated cost of sales |  | 1 |  |  | (1 | ) |  | — |  |  | (2 | )
|  | Income from continuing operations before taxes and equity in earnings of affiliates |  | (8 | ) |  | (20 | ) |  | (17 | ) |  | (41 | )
|  | Income tax expense |  | (2 | ) |  | 7 |  |  | 1 |  |  | 14 |
|  | Other income |  | (2 | ) |  | — |  |  | (2 | ) |  | — |
|  | Income from continuing operations |  | (12 | ) |  | (13 | ) |  | (18 | ) |  | (27 | )
|  | Net loss from disposal and impairments of discontinued businesses |  | 2 |  |  | — |  |  | 2 |  |  | — |
|  | Net income |  | (10 | ) |  | (13 | ) |  | (16 | ) |  | (27 | )
|  | Income from continuing operations attributable to noncontrolling interests |  | 7 |  |  | 10 |  |  | 11 |  |  | 21 |
|  | Net income (loss) attributable to The AES Corporation |  | $ | (3 | ) |  | $ | (3 | ) |  | $ | (5 | ) |  | $ | (6 | )
Available-for-sale securities, net |  |
|  | Interest income |  | $ | — |  |  | $ | (1 | ) |  | $ | — |  |  | $ | (1 | )
|  | Net income attributable to The AES Corporation |  | $ | — |  |  | $ | (1 | ) |  | $ | — |  |  | $ | (1 | )
Foreign currency translation adjustment, net |  |
|  | Gain on sale of investments |  | $ | — |  |  | $ | (4 | ) |  | $ | — |  |  | $ | (1 | )
|  | Net loss from disposal and impairments of discontinued businesses |  | 53 |  |  | (35 | ) |  | 47 |  |  | (35 | )
|  | Net income (loss) attributable to The AES Corporation |  | $ | 53 |  |  | $ | (39 | ) |  | $ | 47 |  |  | $ | (36 | )
Total reclassifications for the period, net of income tax and noncontrolling interests |  | $ | 52 |  |  | $ | (93 | ) |  | $ | 25 |  |  | $ | (115 | )
_____________________________
(1) | Amounts in parentheses indicate debits to the condensed consolidated statement of operations.
Stock Repurchase Program During the three months ended June 30, 2014, shares of common stock repurchased under the existing stock repurchase program (the "Program") totaled 2,305,713 at a total cost of $32 million. The cumulative purchases under the Program totaled 86,317,944 shares at a total cost of $1 billion, which includes a nominal amount of commissions (average price per share of $11.98, including commissions). As of June 30, 2014, $159 million was available under the Program. The common stock repurchased has been classified as treasury stock and accounted for using the cost method. A total of 91,126,094 and 90,808,168 shares were held as treasury stock at June 30, 2014 and December 31, 2013, respectively. Restricted stock units under the Company’s employee benefit plans are issued from treasury stock. The Company has not retired any common stock repurchased since it began the Program in July 2010. Subsequent to June 30, 2014, the Company, repurchased an additional 1,065,700 shares at a cost of $15.6 million, bringing the cumulative total through August 6, 2014 to 87,383,644 shares at a total cost of $1 billion (average price of $12.01 per share including commissions).

X
- Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(d),(e)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB TOPIC 4.C) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29-31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section C Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Article 4 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph d -Article 4 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 + Details
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration