REDEEMABLE STOCK OF SUBSIDIARIES

The table below is a reconciliation of changes in redeemable stock of subsidiaries (in millions):



	Nine Months Ended September 30,
	2016			2015
Balance at the beginning of the period	$	538		$	78
Sale of redeemable stock of subsidiaries	134			460
Contributions to redeemable stocks of subsidiaries	130			—
Net loss attributable to redeemable stocks of subsidiaries	(8		)	—
Fair value adjustment recorded to retained earnings ⁽¹⁾	4			—
Reclassification of mandatorily redeemable stock of subsidiaries to other liabilities	(23		)	—
Balance at the end of the period	$	775		$	538

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⁽¹⁾	$5 million increase in fair value of DP&L preferred shares offset by $1 million decrease in fair value of Colon common stock.

The table below presents the investments in redeemable stock of subsidiaries (in millions):



	September 30, 2016		December 31, 2015
IPALCO	$	618	$	460
Colon	97		—
IPL preferred shares	60		60
DP&L preferred shares	—		18
Redeemable stock of subsidiaries	$	775	$	538

Colon — During the nine months ended September 30, 2016, our partner in Colon invested an additional $23 million, increasing their ownership from 25% to 49.9%, and $83 million, with no impact to the ownership structure of the investment. Any subsequent adjustments to allocate earnings and dividends to our partner or measure the investment at fair value, will be classified as temporary equity each reporting period as it is probable that the shares will become redeemable.

DP&L — In September 2016, it became probable that the preferred shares of DP&L, a wholly-owned subsidiary of DPL, would become redeemable. As such, the Company recorded an adjustment of $5 million to retained earnings to adjust the preferred shares to their redemption value of $23 million. Notice of the redemption plan was issued on September 13, 2016, at which point the shares became mandatorily redeemable and were reclassified to other liabilities.

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, CDPQ owns a combined direct and indirect interest in IPALCO of 30%. In June 2016, CDPQ contributed an additional $24 million to IPALCO, with no impact to ownership structure of the investment. Any subsequent adjustments to allocate earnings and dividends to CDPQ will be classified as NCI within permanent equity as it is not probable that the shares will become redeemable.