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Equity | 6 Months Ended
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Jun. 30, 2018
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):
| Six Months Ended June 30, 2018 |  | Six Months Ended June 30, 2017
| The Parent Company Stockholders’ Equity |  | NCI |  | Total Equity |  | The Parent Company Stockholders’ Equity |  | NCI |  | Total Equity
Balance at the beginning of the period | $ | 2,465 |  |  | $ | 2,380 |  |  | $ | 4,845 |  |  | $ | 2,794 |  |  | $ | 2,906 |  |  | $ | 5,700 |
Net income (1) | 974 |  |  | 219 |  |  | 1,193 |  |  | 29 |  |  | 219 |  |  | 248 |
Total foreign currency translation adjustment, net of income tax | (173 | ) |  | 58 |  |  | (115 | ) |  | 48 |  |  | (1 | ) |  | 47 |
Total change in derivative fair value, net of income tax | 38 |  |  | 25 |  |  | 63 |  |  | — |  |  | 2 |  |  | 2 |
Total pension adjustments, net of income tax | 4 |  |  | — |  |  | 4 |  |  | — |  |  | 13 |  |  | 13 |
Cumulative effect of a change in accounting principle (2) | 87 |  |  | 81 |  |  | 168 |  |  | 31 |  |  | — |  |  | 31 |
Fair value adjustment (3) | (5 | ) |  | — |  |  | (5 | ) |  | (7 | ) |  | — |  |  | (7 | )
Disposition of businesses (4) | — |  |  | (249 | ) |  | (249 | ) |  | — |  |  | — |  |  | — |
Distributions to noncontrolling interests | — |  |  | (185 | ) |  | (185 | ) |  | — |  |  | (198 | ) |  | (198 | )
Contributions from noncontrolling interests | — |  |  | 5 |  |  | 5 |  |  | — |  |  | 17 |  |  | 17 |
Dividends declared on common stock | (86 | ) |  | — |  |  | (86 | ) |  | (79 | ) |  | — |  |  | (79 | )
Issuance and exercise of stock-based compensation | 6 |  |  | — |  |  | 6 |  |  | 9 |  |  | — |  |  | 9 |
Sale of subsidiary shares to noncontrolling interests | (1 | ) |  | 7 |  |  | 6 |  |  | (4 | ) |  | 22 |  |  | 18 |
Acquisition of subsidiary shares from noncontrolling interests | — |  |  | — |  |  | — |  |  | 200 |  |  | 67 |  |  | 267 |
Less: Net loss attributable to redeemable stock of subsidiaries | — |  |  | 7 |  |  | 7 |  |  | — |  |  | 6 |  |  | 6 |
Balance at the end of the period | $ | 3,309 |  |  | $ | 2,348 |  |  | $ | 5,657 |  |  | $ | 3,021 |  |  | $ | 3,053 |  |  | $ | 6,074 |
_____________________________
(1) | Net income attributable to noncontrolling interest of $226 million and net loss attributable to redeemable stocks of subsidiaries of $7 million for the six months ended June 30, 2018. Net income attributable to noncontrolling interest of $225 million and net loss attributable to redeemable stock of subsidiaries of $6 million for the six months ended June 30, 2017.
(2) | See Note 1—Financial Statement Presentation, New Accounting Standards Adopted for further information.
(3) | Adjustment to record the redeemable stock of Colon at fair value.
(4) | See Note 17—Held-for-Sale and Dispositions for further information.
Equity Transactions with Noncontrolling Interests 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 South America SBU reportable segment. Accumulated Other Comprehensive Loss — The following table summarizes the changes in AOCL by component, net of tax and NCI, for the six months ended June 30, 2018 (in millions):
| Foreign currency translation adjustment, net |  | Unrealized derivative gains (losses), net |  | Unfunded pension obligations, net |  | Total
Balance at the beginning of the period | $ | (1,486 | ) |  | $ | (333 | ) |  | $ | (57 | ) |  | $ | (1,876 | )
Other comprehensive income (loss) before reclassifications | (175 | ) |  | 3 |  |  | — |  |  | (172 | )
Amount reclassified to earnings | 2 |  |  | 35 |  |  | 4 |  |  | 41 |
Other comprehensive income (loss) | (173 | ) |  | 38 |  |  | 4 |  |  | (131 | )
Cumulative effect of a change in accounting principle | — |  |  | 19 |  |  | — |  |  | 19 |
Balance at the end of the period | $ | (1,659 | ) |  | $ | (276 | ) |  | $ | (53 | ) |  | $ | (1,988 | )
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:
AOCL Components |  | Affected Line Item in the Condensed Consolidated Statements of Operations |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Foreign currency translation adjustment, net |  |
|  | Gain (loss) on disposal and sale of businesses |  | $ | — |  |  | $ | (95 | ) |  | $ | 16 |  |  | $ | (98 | )
|  | Net gain from disposal of discontinued businesses |  | (18 | ) |  | — |  |  | (18 | ) |  | $ | — |
|  | Net income attributable to The AES Corporation |  | $ | (18 | ) |  | $ | (95 | ) |  | $ | (2 | ) |  | $ | (98 | )
Unrealized derivative gains (losses), net |  |  |  |  |  |  |  |
|  | Non-regulated revenue |  | $ | (1 | ) |  | $ | — |  |  | $ | (5 | ) |  | $ | 10 |
|  | Non-regulated cost of sales |  | (1 | ) |  | 1 |  |  | (2 | ) |  | (9 | )
|  | Interest expense |  | (12 | ) |  | (20 | ) |  | (27 | ) |  | (43 | )
|  | Foreign currency transaction gains (losses) |  | (31 | ) |  | (20 | ) |  | (20 | ) |  | (18 | )
|  | Income from continuing operations before taxes and equity in earnings of affiliates |  | (45 | ) |  | (39 | ) |  | (54 | ) |  | (60 | )
|  | Income tax expense |  | 9 |  |  | 10 |  |  | 8 |  |  | 11 |
|  | Income from continuing operations |  | (36 | ) |  | (29 | ) |  | (46 | ) |  | (49 | )
|  | Less: Net income from continuing operations attributable to noncontrolling interests and redeemable stock of subsidiaries |  | 8 |  |  | 9 |  |  | 11 |  |  | 9 |
|  | Net income attributable to The AES Corporation |  | $ | (28 | ) |  | $ | (20 | ) |  | $ | (35 | ) |  | $ | (40 | )
Amortization of defined benefit pension actuarial loss, net |  |  |  |  |  |  |  |
|  | General and administrative expenses |  | $ | — |  |  | $ | — |  |  | $ | (1 | ) |  | $ | 1 |
|  | Other expense |  | (1 | ) |  | — |  |  | (1 | ) |  | — |
|  | Income from continuing operations before taxes and equity in earnings of affiliates |  | (1 | ) |  | — |  |  | (2 | ) |  | 1 |
|  | Income from continuing operations |  | (1 | ) |  | — |  |  | (2 | ) |  | 1 |
|  | Net income (loss) from operations of discontinued businesses |  | 1 |  |  | (7 | ) |  | — |  |  | (14 | )
|  | Net gain from disposal of discontinued operations |  | (2 | ) |  | — |  |  | (2 | ) |  | — |
|  | Net income |  | (2 | ) |  | (7 | ) |  | (4 | ) |  | (13 | )
|  | Less: Net loss (income) from discontinued operations attributable to noncontrolling interest |  | — |  |  | 5 |  |  | — |  |  | 10 |
|  | Net income attributable to The AES Corporation |  | $ | (2 | ) |  | $ | (2 | ) |  | $ | (4 | ) |  | $ | (3 | )
Total reclassifications for the period, net of income tax and noncontrolling interests |  | $ | (48 | ) |  | $ | (117 | ) |  | $ | (41 | ) |  | $ | (141 | )
Common Stock Dividends — The Parent Company paid dividends of $0.13 per outstanding share to its common stockholders during the first and second quarters of 2018 for dividends declared in December 2017 and February 2018, respectively. On July 13, 2018, the Board of Directors declared a quarterly common stock dividend of $0.13 per share payable on August 17, 2018, to shareholders of record at the close of business on August 3, 2018.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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