Equity

3 Months Ended

Mar. 31, 2013

EQUITY

10. EQUITY

Changes in Equity

The following table provides a reconciliation of the beginning and ending equity attributable to stockholders of The AES Corporation, noncontrolling interests and total equity as of March 31, 2013 and 2012:

			Three Months Ended March 31, 2013							Three Months Ended March 31, 2012
			The AES							The AES
			Corporation							Corporation
			Stockholders'		Noncontrolling		Total			Stockholders'		Noncontrolling		Total
			Equity		Interests		Equity			Equity		Interests		Equity
		(in millions)							(in millions)
Balance at January 1			$	4,569	$	2,945	$	7,514		$	5,946	$	3,783	$	9,729
Net income				82		117		199			341		174		515
Total foreign currency translation adjustment,
	net of income tax			(42)		7		(35)			92		49		141
Total change in derivative fair value,
	net of income tax			7		1		8			90		17		107
Total pension adjustments,
	net of income tax			3		11		14			1		5		6
Capital contributions from noncontrolling interests				-		55		55			-		6		6
Distributions to noncontrolling interests				-		(27)		(27)			-		(14)		(14)
Disposition of businesses				-		-		-			-		(37)		(37)
Issuance and exercise of stock-based compensation
	benefit plans, net of income tax			14		-		14			19		-		19
Acquisition of subsidiary shares from
	noncontrolling interests			-		(1)		(1)			-		(1)		(1)
Balance at March 31			$	4,633	$	3,108	$	7,741		$	6,489	$	3,982	$	10,471

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss by component, net of tax and noncontrolling interestsfor the three months ended March 31, 2013 were as follows:

		Unrealized derivative losses, net		Unfunded pension obligations, net		Foreign currency translation adjustment, net		Total
			(in millions)
Balance at January 1		$	(481)	$	(382)	$	(2,057)	$	(2,920)
	Other comprehensive income before reclassifications		(15)		-		(39)		(54)
	Amounts reclassified from accumulated other
	comprehensive loss		22		3		(3)		22
	Net current-period other comprehensive income		7		3		(42)		(32)
Balance at March 31		$	(474)	$	(379)	$	(2,099)	$	(2,952)

Details About Accumulated Other Comprehensive Loss Components	Affected Line Item in the Condensed Consolidated Statement of Operations		Three Months Ended March 31, 2013 (1)
			(in millions)
Unrealized derivative losses, net
	Interest expense	$	(35)
	Foreign currency transaction gains (losses)		7
	Non-regulated cost of sales		(1)
	Income from continuing operations before
	taxes and equity in earnings of affiliates		(29)
	Income tax expense		7
	Net equity in earnings of affiliates		(2)
	Income from continuing operations		(24)
	Income from continuing operations attributable
	to noncontrolling interests		2
	Net income attributable to the AES Corporation	$	(22)
Amortization of defined benefit pension actuarial loss, net
	Non-regulated cost of sales	$	(1)
	Regulated cost of sales		(20)
	Income from continuing operations before
	taxes and equity in earnings of affiliates		(21)
	Income tax expense		7
	Income from continuing operations		(14)
	Income from continuing operations attributable
	to noncontrolling interests		11
	Net income attributable to the AES Corporation	$	(3)
Foreign currency translation adjustment, net
	Gain on sale of investment	$	3
	Net income attributable to the AES Corporation	$	3
Total reclassifications for the period, net of income tax and noncontrolling interests		$	(22)

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(1)Amounts in parentheses indicate debits to the condensed consolidated statement of operations.

Dividend

The Company paid a dividend of $0.04 per outstanding share to its common stockholders on February 15, 2013.

Stock Repurchase Program

The Company'sBoard of Directors has approved a stock repurchase program (the “Program”). The Program does not have an expiration date and it can be modified or terminated by the Company's Board at any time. Under the Program, the Company may repurchase stock through a variety of methods, including open market repurchases and/or privately negotiated transactions. There can be no assurances as to the amount, timing or prices of repurchases, which may vary based on market conditions and other factors. As of March 31, 2013, $300 million was available under the Program.

There were no common stock repurchases under theProgram during the three months ended March 31, 2013. The cumulative total purchases under the Program totaled 58,715,189 shares at a total cost of $680 million, which includes a nominal amount of commissions (average of $11.58 per share including commissions).

The common stock repurchased has been classified as treasury stock and accounted for using the cost method. A total of 65,546,914 and 66,415,984 shares were held as treasury stock at March 31, 2013 and December 31, 2012, respectively. Restricted stock units under the Company's employee benefit plans are issued from treasury stock.The Company has not retired any common stock repurchased since it began the Program.