Equity

9 Months Ended

Sep. 30, 2013

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 September 30, 2013 and 2012:

	Nine Months Ended September 30, 2013									Nine Months Ended September 30, 2012
	The AES Corporation Stockholders’ Equity			Noncontrolling Interests			Total Equity			The AES Corporation Stockholders’ Equity			Noncontrolling Interests			Total Equity
	(in millions)
Balance at January 1	$	4,569		$	2,945		$	7,514		$	5,946		$	3,783		$	9,729
Net income (loss)	320			435			755			(1,087		)	407			(680		)
Total foreign currency translation adjustment, net of income tax	(158		)	(65		)	(223		)	(158		)	(111		)	(269		)
Total change in derivative fair value, net of income tax	151			54			205			6			(20		)	(14		)
Total pension adjustments, net of income tax	9			30			39			5			14			19
Capital contributions from noncontrolling interests	—			86			86			—			12			12
Distributions to noncontrolling interests	—			(382		)	(382		)	—			(625		)	(625		)
Disposition of businesses	—			(20		)	(20		)	—			(37		)	(37		)
Acquisition of treasury stock	(63		)	—			(63		)	(301		)	—			(301		)
Issuance and exercise of stock-based compensation benefit plans, net of income tax	39			—			39			40			—			40
Dividends declared on common stock ($0.08 per share)	(60		)	—			(60		)	(30		)	—			(30		)
Sale of subsidiary shares to noncontrolling interests	12			71			83			—			—			—
Acquisition of subsidiary shares from noncontrolling interests	(6		)	(1		)	(7		)	3			(11		)	(8		)
Balance at September 30	$	4,813		$	3,153		$	7,966		$	4,424		$	3,412		$	7,836

Equity Transactions with Noncontrolling Interests

During the nine months ended September 30, 2013, the Company completed transactions which increased noncontrolling interests in Alto Maipo and Cochrane, two projects under development in Chile. Although there was a decrease in the Company's ownership, the Company did not lose control of either project, which continue to be accounted for as consolidated subsidiaries. The difference between the fair value of the consideration received for these transactions and the corresponding adjustment to noncontrolling interest of $12 million was recognized as an equity transaction through Additional Paid-in Capital.

The following table summarizes the net income (loss) attributable to The AES Corporation and all transfers (to) from noncontrolling interests for the nine months ended September 30, 2013 and 2012.

	September 30,			September 30,
	2013			2012
	(in millions)
Net income (loss) attributable to The AES Corporation	$	320		$	(1,087	)
Transfers (to) from the noncontrolling interest:
Net increase in The AES Corporation's paid-in capital for sale of subsidiary shares	12			—
Increase (decrease) in The AES Corporation's paid-in capital for purchase of subsidiary shares	(6		)	3
Net transfers (to) from noncontrolling interest	6			3
Change from net income attributable to The AES Corporation and transfers (to) from noncontrolling interests	$	326		$	(1,084	)

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss by component, net of tax and noncontrolling interests for the nine months endedSeptember 30, 2013 were as follows:

	Unrealized derivative losses, net			Unfunded pension obligations, net			Available for sale securities, net			Foreign currency translation adjustment, net			Total
	(in millions)
Balance at January 1	$	(481	)	$	(382	)	$	—		$	(2,057	)	$	(2,920	)
Other comprehensive income before reclassifications	54			—			(1		)	(194		)	(141		)
Amounts reclassified from accumulated other comprehensive loss	97			9			1			36			143
Net current-period other comprehensive income	151			9			—			(158		)	2
Balance at September 30	$	(330	)	$	(373	)	$	—		$	(2,215	)	$	(2,918	)

Reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2013 were as follows:

Details About Accumulated Other Comprehensive Loss Components	Affected Line Item in the Condensed Consolidated Statement of Operations	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013
		(in millions)
Unrealized derivative losses, net
	Non-regulated revenue	$	(3	)	$	(4	)
	Non-regulated cost of sales	(2		)	(4		)
	Interest expense	(36		)	(105		)
	Gain on sale of investments	—			(21		)
	Foreign currency transaction gains (losses)	7			(3		)
	Income from continuing operations before taxes and equity in earnings of affiliates	(34		)	(137		)
	Income tax expense	8			30
	Net equity in earnings of affiliates	(1		)	(5		)
	Income from continuing operations	(27		)	(112		)
	Income from continuing operations attributable to noncontrolling interests	2			15
	Net income attributable to the AES Corporation	$	(25	)	$	(97	)
Amortization of defined benefit pension actuarial loss, net
	Regulated cost of sales	(17		)	(56		)
	Non-regulated cost of sales	(1		)	(3		)
	Income from continuing operations before taxes and equity in earnings of affiliates	(18		)	(59		)
	Income tax expense	6			20
	Income from continuing operations	(12		)	(39		)
	Income from continuing operations attributable to noncontrolling interests	9			30
	Net income attributable to The AES Corporation	$	(3	)	$	(9	)
Available-for-sale securities, net
	Interest income	$	—		$	(1	)
	Net income attributable to The AES Corporation	$	—		$	(1	)
Foreign currency translation adjustment, net
	Gain on sale of investments	$	—		$	(1	)
	Net loss from disposal and impairments of discontinued businesses	—			(35		)
	Net income attributable to The AES Corporation	$	—		$	(36	)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	(28	)	$	(143	)

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⁽¹⁾  Amounts in parentheses indicate debits to the condensed consolidated statement of operations.

Stock Repurchase Program

During the three months ended September 30, 2013, shares of common stock repurchased under the existing stock repurchase program (the "Program") totaled 3,738,142 at a total cost of $45 million. The cumulative purchases under the Program totaled 64,012,231 shares at a total cost of $743 million, which includes a nominal amount of commissions (average price per share of $11.60, including commissions). As of September 30, 2013, $237 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 70,832,607 and 66,415,984 shares were held as treasury stock at September 30, 2013 and December 31, 2012, 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.