EQUITY

Changes in Equity — The table below is a reconciliation of the beginning and ending equity attributable to stockholders of The AES Corporation, noncontrolling interests (“NCI”) and total equity as of the periods indicated (in millions):



	Three Months Ended March 31, 2016									Three Months Ended March 31, 2015
	The Parent Stockholders’ Equity			NCI			Total Equity			The Parent Stockholders’ Equity			NCI			Total Equity
Balance at the beginning of the period	$	3,149		$	3,022		$	6,171		$	4,272		$	3,053		$	7,325
Net income (loss)	126			(52		)	74			142			112			254
Total foreign currency translation adjustment, net of income tax	100			28			128			(251		)	(170		)	(421		)
Total change in derivative fair value, net of income tax	(25		)	(40		)	(65		)	(26		)	(34		)	(60		)
Total pension adjustments, net of income tax	1			2			3			1			4			5
Cumulative effect of a change in accounting principle	—			—			—			(5		)	—			(5		)
Disposition of businesses	—			(2		)	(2		)	—			—			—
Distributions to noncontrolling interests	(2		)	(17		)	(19		)	—			(19		)	(19		)
Contributions from noncontrolling interests	—			28			28			—			67			67
Dividends declared on common stock	(71		)	—			(71		)	—			—			—
Purchase of treasury stock	(79		)	—			(79		)	(35		)	—			(35		)
Issuance and exercise of stock-based compensation benefit plans, net of income tax	4			—			4			5			—			5
Sale of subsidiary shares to noncontrolling interests	—			17			17			(81		)	—			(81		)
Acquisition of subsidiary shares from noncontrolling interests	(2		)	(3		)	(5		)	—			—			—
Balance at the end of the period	$	3,201		$	2,983		$	6,184		$	4,022		$	3,013		$	7,035

Equity Transactions with Noncontrolling Interests

IPALCO — In March 2016, La Caisse de depot et placement du Quebec (“CDPQ”) completed its investment commitment in IPALCO by investing $134 million in IPALCO Enterprises, Inc. (“IPALCO”). As a result of this transaction, IPALCO is owned by AES U.S. Investments (82.35%) and CDPQ (17.65%), and AES U.S. Investments is owned by AES U.S. Holdings, LLC (85%) and CDPQ (15%).

As a cumulative result of CDPQ’s investment transactions, the Company recognized an increase of $463 million to additional paid-in capital and a reduction to retained earnings of $463 million for the excess of the fair value of the shares over their book value. Additionally, $84 million in taxes and transaction costs were recognized as a net decrease to equity. Since the NCI is contingently redeemable, the total fair value of the consideration received of $594 million is classified in temporary equity as redeemable stock of subsidiaries on the Condensed Consolidated Balance Sheet as of March 31, 2016. No gain or loss was recognized in net income as the sale is not considered to be a sale of in-substance real estate. Any subsequent adjustments to allocate earnings and dividends to CDPQ will be classified as NCI within permanent equity and adjustments to the amount in temporary equity will occur only if and when it is probable that the shares will become redeemable. As the Company maintained control after the sale, IPALCO continues to be accounted for as a consolidated subsidiary within the US 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 is reflected in Proceeds from the sale of businesses, net of cash sold on the Consolidated Statement of Cash Flows for the period ended March 31, 2016. After completion of the sale, the Company owns a 36% net ownership 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.

Accumulated Other Comprehensive Loss — See below for the changes in AOCL by component, net of tax and NCI, for the three months ended March 31, 2016 (in millions):



	Foreign currency translation adjustment, net			Unrealized derivative gains (losses), net			Unfunded pension obligations, net			Total
Balance at the beginning of the period	$	(3,256	)	$	(353	)	$	(274	)	$	(3,883	)
Other comprehensive income (loss) before reclassifications	100			(25		)	—			75
Amount reclassified to earnings	—			—			1			1
Other comprehensive income (loss)	100			(25		)	1			76
Balance at the end of the period	$	(3,156	)	$	(378	)	$	(273	)	$	(3,807	)

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		Three Months Ended March 31,
AOCL Components	Affected Line Item in the Condensed Consolidated Statements of Operations	2016			2015
Unrealized derivative gains (losses), net
	Non-regulated revenue	$	42		$	5
	Non-regulated cost of sales	(21		)	—
	Interest expense	(29		)	(25		)
	Foreign currency transaction gains (losses)	12			6
	Income from operations before taxes and equity in earnings of affiliates	4			(14		)
	Income tax expense	(3		)	2
	Net Income	1			(12		)
	Less: (Income) from operations attributable to noncontrolling interests	(1		)	3
	Net income attributable to The AES Corporation	$	—		$	(9	)
Amortization of defined benefit pension actuarial loss, net
	Regulated cost of sales	$	(4	)	$	(8	)
	Income from operations before taxes and equity in earnings of affiliates	(4		)	(8		)
	Income tax expense	1			3
	Net Income	(3		)	(5		)
	Less: (Income) from operations attributable to noncontrolling interests	2			4
	Net income attributable to The AES Corporation	$	(1	)	$	(1	)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	(1	)	$	(10	)

Common Stock Dividends — The Company paid dividends of $0.11 per outstanding share to its common stockholders during the first quarter of 2016 for dividends declared in December 2015.

On February 19, 2016, the Company declared dividends of $0.11 per outstanding common share payable on May 16, 2016 to the shareholders of record at the close of business on May 2, 2016.

Stock Repurchase Program — During the three months ended March 31, 2016, the Parent Company repurchased 8.7 million shares of its common stock at a total cost of $79 million under the existing stock repurchase program (the “Program”). The cumulative repurchases from the commencement of the Program in July 2010 through March 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 March 31, 2016, $264 million remained available for repurchase under the Program.