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, 2018									Three Months Ended March 31, 2017
	The Parent Company Stockholders’ Equity			NCI			Total Equity			The Parent Company Stockholders’ Equity			NCI			Total Equity
Balance at the beginning of the period	$	2,465		$	2,380		$	4,845		$	2,794		$	2,906		$	5,700
Net income (loss) ⁽¹⁾	684			93			777			(24		)	122			98
Total foreign currency translation adjustment, net of income tax	3			6			9			61			10			71
Total change in derivative fair value, net of income tax	44			23			67			12			3			15
Total pension adjustments, net of income tax	2			—			2			(1		)	7			6
Cumulative effect of a change in accounting principle ⁽²⁾	86			81			167			31			—			31
Fair value adjustment ⁽³⁾	(6		)	—			(6		)	—			—			—
Disposition of businesses ⁽⁴⁾	—			(249		)	(249		)	—			—			—
Distributions to noncontrolling interests	—			(9		)	(9		)	—			(19		)	(19		)
Contributions from noncontrolling interests	—			1			1			—			17			17
Dividends declared on common stock	(86		)	—			(86		)	(79		)	—			(79		)
Issuance and exercise of stock-based compensation	1			—			1			1			—			1
Sale of subsidiary shares to noncontrolling interests	—			1			1			(4		)	22			18
Acquisition of subsidiary shares from noncontrolling interests	—			—			—			200			67			267
Less: Net loss attributable to redeemable stock of subsidiaries	—			5			5			—			3			3
Balance at the end of the period	$	3,193		$	2,332		$	5,525		$	2,991		$	3,138		$	6,129

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⁽¹⁾	Net income attributable to noncontrolling interest of $98 million and net loss attributable to redeemable stocks of subsidiaries of $5 million for the three months ended March 31, 2018. Net income attributable to noncontrolling interest of $125 million and net loss attributable to redeemable stock of subsidiaries of $3 million for the three months ended March 31, 2017.


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


⁽³⁾	Adjustment to record the redeemable stock of Colon at fair value.


⁽⁴⁾	See Note 17—Held-for-Sale Businesses and Dispositions for further information.

Equity Transactions with Noncontrolling Interests

Alto Maipo — On March 17, 2017, AES Gener 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, for a de minimis payment, and sold a 6.7% interest in the project 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 South America 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, 2018 (in millions):



	Foreign currency translation adjustment, net			Unrealized derivative gains (losses), net			Unfunded pension obligations, net			Total
Balance at the beginning of the period	$	(1,486	)	$	(333	)	$	(57	)	$	(1,876	)
Other comprehensive income before reclassifications	19			37			—			56
Amount reclassified to earnings	(16		)	7			2			(7		)
Other comprehensive income	3			44			2			49
Cumulative effect of a change in accounting principle	—			19			—			19
Balance at the end of the period	$	(1,483	)	$	(270	)	$	(55	)	$	(1,808	)

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:



AOCL Components	Affected Line Item in the Condensed Consolidated Statements of Operations	Three Months Ended March 31,
AOCL Components		2018			2017
Foreign currency translation adjustment, net
	Gain on disposal and sale of businesses	$	16		$	(3	)
	Net income (loss) attributable to The AES Corporation	$	16		$	(3	)
Unrealized derivative gains (losses), net
	Non-regulated revenue	$	(4	)	$	10
	Non-regulated cost of sales	(1		)	(10		)
	Interest expense	(15		)	(23		)
	Foreign currency transaction losses	11			2
	Income from continuing operations before taxes and equity in earnings of affiliates	(9		)	(21		)
	Income tax expense	(1		)	1
	Income from continuing operations	(10		)	(20		)
	Less: Net income from operations attributable to noncontrolling interests and redeemable stock of subsidiaries	3			—
	Net income (loss) attributable to The AES Corporation	$	(7	)	$	(20	)
Amortization of defined benefit pension actuarial loss, net
	General and administrative expenses	$	(1	)	$	1
	Income from continuing operations before taxes and equity in earnings of affiliates	(1		)	1
	Income from continuing operations	(1		)	1
	Net income (loss) from operations of discontinued businesses	(1		)	(7		)
	Net income	(2		)	(6		)
	Less: Net income from discontinued operations attributable to noncontrolling interest	—			5
	Net income (loss) attributable to The AES Corporation	$	(2	)	$	(1	)
Total reclassifications for the period, net of income tax and noncontrolling interests		$	7		$	(24	)

Common Stock Dividends — The Parent Company paid dividends of $0.13 per outstanding share to its common stockholders during the first quarter of 2018 for dividends declared in December 2017.

On February 23, 2018, the Board of Directors declared a quarterly common stock dividend of $0.13 per share payable on May 15, 2018, to shareholders of record at the close of business on May 1, 2018.