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Equity | 12 Months Ended
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Dec. 31, 2016
Equity [Abstract] |
Equity | EQUITY Equity Transactions with Noncontrolling Interests Jordan — In February 2016, the Company completed the sale of 40% of its interest in a wholly-owned subsidiary in Jordan that owns a controlling interest in the Jordan IPP4 gas-fired plant for $21 million. The transaction was accounted for as a sale of in-substance real estate and a pretax gain of $4 million, net of transaction costs, was recognized in net income. The cash proceeds from the sale are reflected in Proceeds from the sale of businesses, net of cash sold on the Consolidated Statement of Cash Flows for the period ended December 31, 2016. After completion of the sale, the Company has a 36% economic interest in Jordan IPP4 and will continue to manage and operate the plant, with 40% owned by Mitsui Ltd. and 24% owned by Nebras Power Q.S.C. As the Company maintained control after the sale, Jordan IPP4 continues to be consolidated by the Company within the Europe SBU reportable segment. Brazil Reorganization — In 2015, the Company completed a restructuring of Tietê. This transaction resulted in no change of ownership or control. The $27 million impact of this equity transaction was recognized in additional paid-in capital. Gener — In November 2015, the Company sold a 4% stake in AES Gener S.A. ("Gener") through its 99.9% owned subsidiary Inversiones Cachagua S.p.A ("Cachagua") for $145 million, net of transaction costs. The sale was of previously issued common shares of Gener to certain institutional investors and is not a sale of in-substance real estate. While the sale decreased Parent ownership interest from 70.7% to 66.7%, the Parent continues to retain its controlling financial interest in the subsidiary. The difference of $24 million between the fair value of the consideration received, net of taxes and transaction costs, and the amount by which the NCI is adjusted was recognized in additional paid-in capital. No pretax gain or loss was recognized in net income as a result of this transaction. Dominican Republic — In December 2014 Estrella and Linda Groups, an investor-based group in the Dominican Republic acquired 8% noncontrolling interest in our businesses in the Dominican Republic for $83 million, net of transaction costs, with options to acquire an additional 2% for $24 million at any time between the closing date and December 31, 2015, and an additional 10% for $125 million at any time between the closing date and December 31, 2017. In December 2015, Estrella and Linda Groups exercised its first call option of additional 2% for $18 million, net of discount and transaction costs. This resulted in Estrella and Linda Groups having a total of 10% noncontrolling interest in our businesses in the Dominican Republic. As a result of these transaction, $7 million, net of taxes and transaction costs, was recognized in additional paid-in capital at December 31, 2015. No gain or loss was recognized in net income as the sale was not considered to be a sale of in-substance real estate. As the Company maintained control after the sale, our businesses in the Dominican Republic continue to be consolidated by the Company within the MCAC SBU reportable segment. 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 cumulative net proceeds of $436 million, including $23 million contingent upon the achievement of certain restructuring efficiencies. The transaction was accounted for as a sale of in-substance real estate. Noncontrolling interest of $130 million and a pretax gain on sale of investment of approximately $283 million, net of transaction costs, were recognized during the third quarter of 2014. The portion of the proceeds related to the contingency has been deferred. After completion of the sale, the Company owns a 51% net ownership interest in Masinloc and will continue to manage and operate the plant. As the Company maintained control after the sale, Masinloc continues to be accounted for as a consolidated subsidiary within the Asia SBU reportable segment. The following table summarizes the net income attributable to The AES Corporation and all transfers (to) from noncontrolling interests for the periods indicated (in millions):
|  | December 31,
|  | 2016 |  | 2015 |  | 2014
Net income attributable to The AES Corporation |  | $ | (1,130 | ) |  | $ | 306 |  |  | $ | 769 |
Transfers from the noncontrolling interest: |  |  |  |  |  |
Net increase in The AES Corporation's paid-in capital for sale of subsidiary shares |  | 84 |  |  | 323 |  |  | 29 |
Additional paid-in capital, IPALCO shares, transferred to redeemable stock of subsidiaries (1) |  | (84 | ) |  | (377 | ) |  | — |
Increase (decrease) in The AES Corporation's paid-in capital for purchase of subsidiary shares |  | (2 | ) |  | — |  |  | 7 |
Net transfers (to) from noncontrolling interest |  | (2 | ) |  | (54 | ) |  | 36 |
Change from net income attributable to The AES Corporation and transfers (to) from noncontrolling interests |  | $ | (1,132 | ) |  | $ | 252 |  |  | $ | 805 |
_____________________________
(1) | See Note 18—Redeemable stock of subsidiaries for further information on increase in paid-in capital transferred to redeemable stock of subsidiaries.
Deconsolidations UK Wind — During 2016, the Company determined it no longer had control of its wind development projects in the United Kingdom (“UK Wind”) as the Company no longer held seats on the board of directors. In accordance with the accounting guidance, UK Wind was deconsolidated and a loss on deconsolidation of $20 million was recorded to Gain (loss) on disposal and sale of businesses in the Consolidated Statement of Operations to write off the Company’s non-controlling interest in the project. The UK Wind projects were reported in the Europe SBU reportable segment. Accumulated Other Comprehensive Loss — The changes in AOCL by component, net of tax and noncontrolling interests, for the periods indicated were as follows (in millions):
| Foreign currency translation adjustment, net |  | Unrealized derivative losses, net |  | Unfunded pension obligations, net |  | Total
Balance at December 31,2014 | $ | (2,595 | ) |  | $ | (396 | ) |  | $ | (295 | ) |  | $ | (3,286 | )
Other comprehensive (loss) income before reclassifications | $ | (674 | ) |  | $ | (5 | ) |  | $ | 19 |  |  | $ | (660 | )
Amount reclassified to earnings | — |  |  | 48 |  |  | 2 |  |  | 50 |
Other comprehensive (loss) income | $ | (674 | ) |  | $ | 43 |  |  | $ | 21 |  |  | $ | (610 | )
Cumulative effect of a change in accounting principle | $ | 13 |  |  | $ | — |  |  | $ | — |  |  | $ | 13 |
Balance at December 31, 2015 | $ | (3,256 | ) |  | $ | (353 | ) |  | $ | (274 | ) |  | $ | (3,883 | )
Other comprehensive (loss) income before reclassifications | $ | 117 |  |  | $ | 2 |  |  | $ | (13 | ) |  | $ | 106 |
Amount reclassified to earnings | 992 |  |  | 28 |  |  | 1 |  |  | 1,021 |
Other comprehensive (loss) income | $ | 1,109 |  |  | $ | 30 |  |  | $ | (12 | ) |  | $ | 1,127 |
Balance at December 31, 2016 | $ | (2,147 | ) |  | $ | (323 | ) |  | $ | (286 | ) |  | $ | (2,756 | )
Reclassifications out of AOCL are presented in the following table. Amounts for the periods indicated are in millions and those in parenthesis indicate debits to the Condensed Consolidated Statements of Operations:
Details About |  |  |  | December 31,
AOCL Components |  | Affected Line Item in the Consolidated Statements of Operations |  | 2016 |  | 2015 |  | 2014
Foreign currency translation adjustment, net |  |  |  |
|  | Gain on sale of businesses |  | $ | — |  |  | $ | — |  |  | $ | 4 |
|  | Net loss from disposal and impairments of discontinued operations |  | (992 | ) |  | — |  |  | (38 | )
|  | Net income attributable to The AES Corporation |  | $ | (992 | ) |  | $ | — |  |  | $ | (34 | )
Unrealized derivative gains (losses), net |  |  |  |
|  | Non-regulated revenue |  | $ | 111 |  |  | $ | 43 |  |  | $ | 30 |
|  | Non-regulated cost of sales |  | (57 | ) |  | (14 | ) |  | (4 | )
|  | Interest expense |  | (107 | ) |  | (112 | ) |  | (139 | )
|  | Gain on sale of businesses |  | — |  |  | (4 | ) |  | — |
|  | Foreign currency transaction gains (losses) |  | 8 |  |  | 12 |  |  | (9 | )
|  | Income from continuing operations before taxes and equity in earnings of affiliates |  | (45 | ) |  | (75 | ) |  | (122 | )
|  | Income tax expense |  | 8 |  |  | 11 |  |  | 26 |
|  | Net equity in earnings of affiliates |  | — |  |  | (2 | ) |  | (3 | )
|  | Income from continuing operations |  | (37 | ) |  | (66 | ) |  | (99 | )
|  | Less: (Income) from continuing operations attributable to noncontrolling interests |  | 9 |  |  | 18 |  |  | 27 |
|  | Net income attributable to The AES Corporation |  | $ | (28 | ) |  | $ | (48 | ) |  | $ | (72 | )
Amortization of defined benefit pension actuarial loss, net |  |  |  |
|  | Regulated cost of sales |  | $ | (17 | ) |  | $ | (24 | ) |  | $ | (32 | )
|  | Non-regulated cost of sales |  | — |  |  | 2 |  |  | (5 | )
|  | General and administrative expenses |  | (1 | ) |  | (2 | ) |  | — |
|  | Other Expense |  | (1 | ) |  | — |  |  | — |
|  | Income from continuing operations before taxes and equity in earnings of affiliates |  | (19 | ) |  | (24 | ) |  | (37 | )
|  | Income tax expense |  | 3 |  |  | 9 |  |  | 7 |
|  | Income from continuing operations |  | (16 | ) |  | (15 | ) |  | (30 | )
|  | Net loss from disposal and impairments of discontinued operations |  | 6 |  |  | (1 | ) |  | 1 |
|  | Net Income |  | (10 | ) |  | (16 | ) |  | (29 | )
|  | Less: (Income) from continuing operations attributable to noncontrolling interests |  | 9 |  |  | 14 |  |  | 19 |
|  | Net income attributable to The AES Corporation |  | $ | (1 | ) |  | $ | (2 | ) |  | $ | (10 | )
Total reclassifications for the period, net of income tax and noncontrolling interests |  | $ | (1,021 | ) |  | $ | (50 | ) |  | $ | (116 | )
Common Stock Dividends — The Company paid dividends of $0.11 per outstanding share to its common stockholders during the first, second, third and fourth quarters of 2016 for dividends declared in December 2015, February, July, and October 2016. On December 9, 2016, the Board of Directors declared a quarterly common stock dividend of $0.12 per share payable on February 15, 2017 to shareholders of record at the close of business on February 1, 2017. Stock Repurchase Program — During the year ended December 31, 2016, the Company repurchased 8.7 million shares of its common stock under the Program at a total cost of $79 million under the existing stock repurchase program. The cumulative repurchase from the commencement of the Program in July 2010 through December 31, 2016 totaled 154.3 million shares for a total cost of $1.9 billion, at an average price per share of $12.12 (including a nominal amount of commissions). As of December 31, 2016, $246 million remained available for repurchase under the Program. The common stock repurchased has been classified as treasury stock and accounted for using the cost method. A total of 156,878,891 and 149,037,831 shares were held as treasury stock at December 31, 2016 and 2015, 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.

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