REDEEMABLE STOCK OF SUBSIDIARIES

The following table summarizes the Company's redeemable stock of subsidiaries balances as of the periods indicated:



	December 31,
Redeemable stock of subsidiaries (in millions)	2015		2014
Additional paid-in capital, IPALCO shares	$	377	$	—
Book value, IPALCO shares - noncontrolling interest	83		—
Total fair value of consideration received ⁽¹⁾	460		—
IPL cumulative preferred stock	60		60
DPL cumulative preferred stock	18		18
Total cumulative preferred stock of subsidiaries ⁽²⁾	78		78
Total redeemable stock of subsidiaries	$	538	$	78

⁽¹⁾ See Note 16—Equity for further information on IPALCO equity transactions with noncontrolling interests.

⁽²⁾ Refer below for further information on outstanding shares of cumulative preferred stock of subsidiaries.

Our subsidiaries IPL and DPL had outstanding shares of cumulative preferred stock of $78 million at December 31, 2015 and 2014.

IPL — IPL had $60 million of cumulative preferred stock outstanding at December 31, 2015 and 2014, which represented five series of preferred stock. The total annual dividend requirements were approximately $3 million at December 31, 2015 and 2014. Certain series of the preferred stock were redeemable solely at the option of the issuer at prices between $100 and $118 per share. Holders of the preferred stock are entitled to elect a majority of IPL's board of directors if IPL has not paid dividends to its preferred stockholders for four consecutive quarters. Based on the preferred stockholders' ability to elect a majority of IPL's board of directors in this circumstance, the redemption of the preferred shares is considered to be not solely within the control of the issuer and the preferred stock is considered temporary equity and presented in the mezzanine level of the Consolidated Balance Sheets in accordance with relevant accounting guidance for noncontrolling interests and redeemable securities.

DPL — DPL had $18 million of cumulative preferred stock outstanding at December 31, 2015 and 2014, which represented three series of preferred stock issued by DP&L, a wholly-owned subsidiary of DPL. The total annual dividend requirements were approximately $1 million at December 31, 2015 and 2014. The DP&L preferred stock may be redeemed at DP&L's option as determined by its board of directors at per-share redemption prices between $101 and $103 per share, plus cumulative preferred dividends. In addition, DP&L's Amended Articles of Incorporation contain provisions that permit preferred stockholders to elect members of the DP&L Board of Directors in the event that cumulative dividends on the preferred stock are in arrears in an aggregate amount equivalent to at least four full quarterly dividends. Based on the preferred stockholders' ability to elect members of DP&L's board of directors in this circumstance, the redemption of the preferred shares is considered to be not solely within the control of the issuer and the preferred stock is considered temporary equity and presented in the mezzanine level of the Consolidated Balance Sheets in accordance with the relevant accounting guidance for noncontrolling interests and redeemable securities.