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):



	Three Months Ended March 31, 2017									Three Months Ended March 31, 2016
	The Parent Company Stockholders’ Equity			NCI			Total Equity			The Parent Company Stockholders’ Equity			NCI			Total Equity
Balance at the beginning of the period	$	2,794		$	2,906		$	5,700		$	3,149		$	3,022		$	6,171
Net income (loss) ⁽¹⁾	(24		)	122			98			126			(52		)	74
Total foreign currency translation adjustment, net of income tax	61			10			71			100			28			128
Total change in derivative fair value, net of income tax	12			3			15			(25		)	(40		)	(65		)
Total pension adjustments, net of income tax	(1		)	7			6			1			2			3
Cumulative effect of a change in accounting principle ⁽²⁾	31			—			31			—			—			—
Disposition of businesses	—			—			—			—			(2		)	(2		)
Distributions to noncontrolling interests	—			(19		)	(19		)	(2		)	(17		)	(19		)
Contributions from noncontrolling interests	—			17			17			—			28			28
Dividends declared on common stock	(79		)	—			(79		)	(71		)	—			(71		)
Purchase of treasury stock	—			—			—			(79		)	—			(79		)
Issuance and exercise of stock-based compensation benefit plans, net of income tax	1			—			1			4			—			4
Sale of subsidiary shares to noncontrolling interests	(4		)	22			18			—			17			17
Acquisition of subsidiary shares from noncontrolling interests	200			67			267			(2		)	(3		)	(5		)
Less: Net loss attributable to redeemable stock of subsidiaries	$	—		$	3		$	3		$	—		$	—		$	—
Balance at the end of the period	$	2,991		$	3,138		$	6,129		$	3,201		$	2,983		$	6,184

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⁽¹⁾	Net income attributable to noncontrolling interest of $125 million and $3 million of net loss attributable to redeemable stocks of subsidiaries.


⁽²⁾	See Note 1—Financial Statement Presentation, New Accounting Standards Adopted for further information.

Equity Transactions with Noncontrolling Interests

Alto Maipo — On March 17, 2017, the Company 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 and sold a 6.7% interest in the projects 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 Andes 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 are 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 has a 36% economic 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 — The following table summarizes the changes in AOCL by component, net of tax and NCI, for the three months ended March 31, 2017 (in millions):



	Foreign currency translation adjustment, net			Unrealized derivative gains (losses), net			Unfunded pension obligations, net			Total
Balance at the beginning of the period	$	(2,147	)	$	(323	)	$	(286	)	$	(2,756	)
Other comprehensive income (loss) before reclassifications	58			(8		)	(2		)	48
Amount reclassified to earnings	3			20			1			24
Other comprehensive income (loss)	61			12			(1		)	72
Reclassification from NCI due to Alto Maipo Restructuring	—			(33		)	—			(33		)
Balance at the end of the period	$	(2,086	)	$	(344	)	$	(287	)	$	(2,717	)

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 AOCL Components	Affected Line Item in the Condensed Consolidated Statements of Operations	Three Months Ended March 31,
Details About AOCL Components		2017			2016
Foreign currency translation adjustment, net
	Gain on disposals and sale of businesses	$	(3	)	$	—
	Net income attributable to The AES Corporation	$	(3	)	$	—
Unrealized derivative gains (losses), net
	Non-regulated revenue	$	10		$	42
	Non-regulated cost of sales	(10		)	(21		)
	Interest expense	(23		)	(29		)
	Foreign currency transaction gains (losses)	2			12
	Income from continuing operations before taxes and equity in earnings of affiliates	(21		)	4
	Income tax expense	1			(3		)
	Income from continuing operations	(20		)	1
	Less: Net (income) loss attributable to noncontrolling interests	—			(1		)
	Net income (loss) attributable to The AES Corporation	$	(20	)	$	—
Amortization of defined benefit pension actuarial loss, net
	Regulated cost of sales	$	(10	)	$	(4	)
	General and administrative expense	1			—
	Income from continuing operations before taxes and equity in earnings of affiliates	(9		)	(4		)
	Income tax expense	3			1
	Net Income (loss)	(6		)	(3		)
	Less: Net (income) loss attributable to noncontrolling interests	5			2
	Net income (loss) attributable to The AES Corporation	$	(1	)	$	(1	)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	(24	)	$	(1	)

Common Stock Dividends — The Company paid dividends of $0.12 per outstanding share to its common stockholders during the first quarter of 2017 for dividends declared in December 2016.

On February 24, 2017, the Board of Directors declared a quarterly common stock dividend of $0.12 per share payable on May 15, 2017 to shareholders of record at the close of business on May 1, 2017.