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Equity | 9 Months Ended
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Sep. 30, 2017
Equity [Abstract] |
EQUITY | EQUITY Changes in Equity — The following table is a reconciliation of the beginning and ending equity attributable to stockholders of The AES Corporation, NCI and total equity as of the periods indicated (in millions):
| Nine Months Ended September 30, 2017 |  | Nine Months Ended September 30, 2016
| The Parent Company Stockholders’ Equity |  | NCI |  | Total Equity |  | The Parent Company Stockholders’ Equity |  | NCI |  | Total Equity
Balance at the beginning of the period | $ | 2,794 |  |  | $ | 2,906 |  |  | $ | 5,700 |  |  | $ | 3,149 |  |  | $ | 3,022 |  |  | $ | 6,171 |
Net income (loss) (1) | 181 |  |  | 328 |  |  | 509 |  |  | (181 | ) |  | 97 |  |  | (84 | )
Total foreign currency translation adjustment, net of income tax | 117 |  |  | 10 |  |  | 127 |  |  | 179 |  |  | 53 |  |  | 232 |
Total change in derivative fair value, net of income tax | 5 |  |  | 3 |  |  | 8 |  |  | (52 | ) |  | (63 | ) |  | (115 | )
Total pension adjustments, net of income tax | 1 |  |  | 19 |  |  | 20 |  |  | 3 |  |  | 7 |  |  | 10 |
Cumulative effect of a change in accounting principle (2) | 31 |  |  | — |  |  | 31 |  |  | — |  |  | — |  |  | — |
Fair value adjustment (3) | (19 | ) |  | — |  |  | (19 | ) |  | (4 | ) |  | — |  |  | (4 | )
Disposition of businesses | — |  |  | — |  |  | — |  |  | — |  |  | 18 |  |  | 18 |
Distributions to noncontrolling interests | — |  |  | (261 | ) |  | (261 | ) |  | (2 | ) |  | (293 | ) |  | (295 | )
Contributions from noncontrolling interests | — |  |  | 17 |  |  | 17 |  |  | — |  |  | 23 |  |  | 23 |
Dividends declared on common stock | (158 | ) |  | — |  |  | (158 | ) |  | (144 | ) |  | — |  |  | (144 | )
Purchase of treasury stock | — |  |  | — |  |  | — |  |  | (79 | ) |  | — |  |  | (79 | )
Issuance and exercise of stock-based compensation benefit plans | 12 |  |  | — |  |  | 12 |  |  | 15 |  |  | — |  |  | 15 |
Sale of subsidiary shares to noncontrolling interests | 22 |  |  | 47 |  |  | 69 |  |  | — |  |  | 17 |  |  | 17 |
Acquisition of subsidiary shares from noncontrolling interests | 200 |  |  | (85 | ) |  | 115 |  |  | (2 | ) |  | (3 | ) |  | (5 | )
Less: Net loss attributable to redeemable stock of subsidiaries | — |  |  | 9 |  |  | 9 |  |  | — |  |  | 8 |  |  | 8 |
Balance at the end of the period | $ | 3,186 |  |  | $ | 2,993 |  |  | $ | 6,179 |  |  | $ | 2,882 |  |  | $ | 2,886 |  |  | $ | 5,768 |
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(1) | Net income attributable to noncontrolling interest of $337 million and net loss attributable to redeemable stocks of subsidiaries of $9 million for the nine months ended September 30, 2017. Net income attributable to noncontrolling interest of $105 million and net loss attributable to redeemable stock of subsidiaries of $8 million for the nine months ended September 30, 2016.
(2) | See Note 1—Financial Statement Presentation, New Accounting Standards Adopted for further information.
(3) | Adjustment to record the of redeemable stock of Colon at fair value.
Equity Transactions with Noncontrolling Interests Dominican Republic — On September 28, 2017, Linda Group, an investor-based group in the Dominican Republic acquired an additional 5% of our Dominican Republic business for $60 million, pre tax. This transaction resulted in a net increase of $25 million to the Company’s additional paid-in capital and noncontrolling interest, respectively. No gain or loss was recognized in net income as the sale was not considered 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. Alto Maipo — On March 17, 2017, AES Gener completed the legal and financial restructuring of Alto Maipo. As part of this restructuring, AES indirectly acquired the 40% ownership interest of the noncontrolling shareholder, for a de minimis payment, and sold a 6.7% interest in the project to the construction contractor. This transaction resulted in a $196 million increase to the Parent Company’s Stockholders’ Equity due to an increase in additional-paid-in capital of $229 million, offset by the reclassification of accumulated other comprehensive losses from NCI to the Parent Company Stockholders’ Equity of $33 million. No gain or loss was recognized in net income as the sale was not considered to be a sale of in-substance real estate. After completion of the sale, the Company has an effective 62% economic interest in Alto Maipo. As the Company maintained control of the partnership after the sale, Alto Maipo continues to be consolidated by the Company within the Andes SBU reportable segment. Jordan — On February 18, 2016, the Company completed the sale of 40% of its interest in a wholly owned subsidiary in Jordan which 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, and equity investments on the Consolidated Statement of Cash Flows for the period ended September 30, 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 Eurasia SBU reportable segment. Deconsolidations UK Wind — During the second quarter of 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 Condensed Consolidated Statement of Operations to write off the Company’s noncontrolling interest in the project. The UK Wind projects were reported in the Eurasia SBU reportable segment. Accumulated Other Comprehensive Loss — The following table summarizes the changes in AOCL by component, net of tax and NCI, for the nine months ended September 30, 2017 (in millions):
| Foreign currency translation adjustment, net |  | Unrealized derivative gains (losses), net |  | Unfunded pension obligations, net |  | Total
Balance at the beginning of the period | $ | (2,147 | ) |  | $ | (323 | ) |  | $ | (286 | ) |  | $ | (2,756 | )
Other comprehensive income (loss) before reclassifications | 19 |  |  | (35 | ) |  | (3 | ) |  | (19 | )
Amount reclassified to earnings | 98 |  |  | 40 |  |  | 4 |  |  | 142 |
Other comprehensive income | 117 |  |  | 5 |  |  | 1 |  |  | 123 |
Reclassification from NCI due to Alto Maipo Restructuring | — |  |  | (33 | ) |  | — |  |  | (33 | )
Balance at the end of the period | $ | (2,030 | ) |  | $ | (351 | ) |  | $ | (285 | ) |  | $ | (2,666 | )
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 AOCL Components |  | Affected Line Item in the Condensed Consolidated Statements of Operations |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2017 |  | 2016 |  | 2017 |  | 2016
Foreign currency translation adjustment, net |  |
|  | Loss on disposal and sale of businesses |  | $ | — |  |  | $ | — |  |  | $ | (98 | ) |  | $ | — |
|  | Net income (loss) attributable to The AES Corporation |  | $ | — |  |  | $ | — |  |  | $ | (98 | ) |  | $ | — |
Unrealized derivative gains (losses), net |  |
|  | Non-regulated revenue |  | $ | 12 |  |  | $ | 20 |  |  | $ | 22 |  |  | $ | 94 |
|  | Non-regulated cost of sales |  | (2 | ) |  | (17 | ) |  | (11 | ) |  | (54 | )
|  | Interest expense |  | (20 | ) |  | (25 | ) |  | (63 | ) |  | (86 | )
|  | Foreign currency transaction gains (losses) |  | 14 |  |  | (3 | ) |  | (4 | ) |  | 18 |
|  | Income (loss) from continuing operations before taxes and equity in earnings of affiliates |  | 4 |  |  | (25 | ) |  | (56 | ) |  | (28 | )
|  | Income tax benefit (expense) |  | (5 | ) |  | 4 |  |  | 6 |  |  | 5 |
|  | Loss from continuing operations |  | (1 | ) |  | (21 | ) |  | (50 | ) |  | (23 | )
|  | Less: Net loss from operations attributable to noncontrolling interests and redeemable stock of subsidiaries |  | 1 |  |  | 5 |  |  | 10 |  |  | 4 |
|  | Net income (loss) attributable to The AES Corporation |  | $ | — |  |  | $ | (16 | ) |  | $ | (40 | ) |  | $ | (19 | )
Amortization of defined benefit pension actuarial loss, net |  |
|  | Regulated cost of sales |  | $ | (10 | ) |  | $ | (4 | ) |  | $ | (30 | ) |  | $ | (13 | )
|  | General and administrative expenses |  | — |  |  | — |  |  | 1 |  |  | — |
|  | Other expense |  | (1 | ) |  | — |  |  | (1 | ) |  | — |
|  | Loss from continuing operations before taxes and equity in earnings of affiliates |  | (11 | ) |  | (4 | ) |  | (30 | ) |  | (13 | )
|  | Income tax benefit |  | 4 |  |  | 2 |  |  | 10 |  |  | 4 |
|  | Loss from continuing operations |  | (7 | ) |  | (2 | ) |  | (20 | ) |  | (9 | )
|  | Net loss from disposal and impairments of discontinued businesses |  | — |  |  | (1 | ) |  | — |  |  | (1 | )
|  | Net loss |  | (7 | ) |  | (3 | ) |  | (20 | ) |  | (10 | )
|  | Less: Net loss from operations attributable to noncontrolling interests and redeemable stock of subsidiaries |  | 6 |  |  | 2 |  |  | 16 |  |  | 7 |
|  | Net income (loss) attributable to The AES Corporation |  | $ | (1 | ) |  | $ | (1 | ) |  | $ | (4 | ) |  | $ | (3 | )
Total reclassifications for the period, net of income tax and noncontrolling interests |  | $ | (1 | ) |  | $ | (17 | ) |  | $ | (142 | ) |  | $ | (22 | )
Common Stock Dividends — The Company paid dividends of $0.12 per outstanding share to its common stockholders during the first, second and third quarters of 2017 for dividends declared in December 2016, February 2017, and July 2017, respectively. On October 6, 2017, the Board of Directors declared a quarterly common stock dividend of $0.12 per share payable on November 15, 2017, to shareholders of record at the close of business on November 1, 2017.

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- 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 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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