EQUITY

Changes in Equity — The table below 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, 2016									Nine Months Ended September 30, 2015
	The Parent Company Stockholders’ Equity			NCI			Total Equity			The Parent Company 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) ⁽¹⁾	(181		)	97			(84		)	391			330			721
Total foreign currency translation adjustment, net of income tax	179			53			232			(498		)	(359		)	(857		)
Total change in derivative fair value, net of income tax	(52		)	(63		)	(115		)	10			(37		)	(27		)
Total pension adjustments, net of income tax	3			7			10			3			10			13
Cumulative effect of a change in accounting principle	—			—			—			(5		)	—			(5		)
Fair value adjustment to redeemable stock of subsidiaries	(4		)	—			(4		)	—			—			—
Acquisition of businesses ⁽²⁾	—			—			—			—			11			11
Disposition of businesses	—			18			18			—			(49		)	(49		)
Distributions to noncontrolling interests	(2		)	(293		)	(295		)	—			(182		)	(182		)
Contributions from noncontrolling interests	—			23			23			—			117			117
Dividends declared on common stock	(144		)	—			(144		)	(138		)	—			(138		)
Purchase of treasury stock	(79		)	—			(79		)	(408		)	—			(408		)
Issuance and exercise of stock-based compensation benefit plans, net of income tax	15			—			15			23			—			23
Sale of subsidiary shares to noncontrolling interests	—			17			17			(83		)	—			(83		)
Acquisition of subsidiary shares from noncontrolling interests	(2		)	(3		)	(5		)	—			—			—
Less: Net loss attributable to redeemable stocks of subsidiaries	—			8			8			—			—			—
Balance at the end of the period	$	2,882		$	2,886		$	5,768		$	3,567		$	2,894		$	6,461

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⁽¹⁾Net income attributable to noncontrolling interest of $105 million and $8 million of net loss attributable to redeemable stocks of subsidiaries.

⁽²⁾ Fair value of a tax equity partner’s right to preferential returns as a result of the acquisition of Solar Power PR, LLC (Solar Puerto Rico), which was previously accounted for as an equity method investment.

Equity Transactions with Noncontrolling Interests

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 on the Consolidated Statement of Cash Flows for the period ended September 30, 2016. After completion of the sale, the Company has 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.

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 on disposal and sale of businesses in the Condensed Consolidated Statement of Operations to write off the Company’s non-controlling interest in the project. The UK Wind projects were reported in 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 nine months ended September 30, 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	179			(71		)	—			108
Amount reclassified to earnings	—			19			3			22
Other comprehensive income (loss)	179			(52		)	3			130
Balance at the end of the period	$	(3,077	)	$	(405	)	$	(271	)	$	(3,753	)

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	Affected Line Item in the Condensed Consolidated Statements of Operations	Three Months Ended September 30,						Nine Months Ended September 30,
AOCL Components		2016			2015			2016			2015

Unrealized derivative gains (losses), net
	Non-regulated revenue	$	20		$	12		$	94		$	27
	Non-regulated cost of sales	(17		)	(5		)	(54		)	(10		)
	Interest expense	(25		)	(28		)	(86		)	(84		)
	Gain on disposals and sale of investments	—			(4		)	—			(4		)
	Foreign currency transaction gains (losses)	(3		)	12			18			20
	Income (loss) from continuing operations before taxes and equity in earnings of affiliates	(25		)	(13		)	(28		)	(51		)
	Income tax expense	4			—			5			6
	Net equity in earnings of affiliates	—			(1		)	—			(1		)
	Income (loss) from continuing operations	(21		)	(14		)	(23		)	(46		)
	Less: Net income attributable to noncontrolling interests	5			6			4			15
	Net income (loss) attributable to The AES Corporation	$	(16	)	$	(8	)	$	(19	)	$	(31	)
Amortization of defined benefit pension actuarial loss, net
	Regulated cost of sales	$	(4	)	$	(7	)	$	(13	)	$	(20	)
	Income (loss) from continuing operations before taxes and equity in earnings of affiliates	(4		)	(7		)	(13		)	(20		)
	Income tax expense	2			3			4			8
	Income (loss) from continuing operations	(2		)	(4		)	(9		)	(12		)
	Net loss from disposal and impairments of discontinued businesses	(1		)	—			(1		)	(1		)
	Net Income (loss)	(3		)	(4		)	(10		)	(13		)
	Less: Net income attributable to noncontrolling interests	2			3			7			10
	Net income (loss) attributable to The AES Corporation	$	(1	)	$	(1	)	$	(3	)	$	(3	)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	(17	)	$	(9	)	$	(22	)	$	(34	)

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

Stock Repurchase Program — During the nine months ended September 30, 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 September 30, 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 September 30, 2016, $264 million remained available for repurchase under the Program.