Equity

3 Months Ended

Sep. 30, 2012

EQUITY

11. 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 September 30, 2012 and 2011:

			Nine Months Ended September 30, 2012							Nine Months Ended September 30, 2011
			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			$	5,946	$	3,783	$	9,729		$	6,473	$	3,940	$	10,413
Net income (loss)				(1,087)		407		(680)			267		818		1,085
Total change in fair value of available-for-sale
	securities, net of income tax			-		-		-			(3)		-		(3)
Total foreign currency translation adjustment,
	net of income tax			(158)		(111)		(269)			(178)		(150)		(328)
Total pension adjustments,
	net of income tax			5		14		19			4		8		12
Total change in fair value of derivatives,
	net of income tax			6		(20)		(14)			(167)		(26)		(193)
Capital contributions from noncontrolling interests				-		12		12			-		9		9
Distributions to noncontrolling interests				-		(625)		(625)			-		(990)		(990)
Disposition of businesses				-		(37)		(37)			-		(1)		(1)
Acquisition of treasury stock				(301)		-		(301)			(225)		-		(225)
Issuance and exercise of stock-based compensation
	benefit plans, net of income tax			40		-		40			43		-		43
Acquisition of subsidiary shares from
	noncontrolling interests			3		(11)		(8)			-		-		-
Dividends declared on common stock ($0.04 per share)				(30)		-		(30)			-		-		-
Sale of subsidiary shares to noncontrolling interest				-		-		-			19		16		35
Balance at September 30			$	4,424	$	3,412	$	7,836		$	6,233	$	3,624	$	9,857

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss as of September 30, 2012 and December 31, 2011 were as follows:

	September 30,		December 31,
	2012		2011
	(in millions)
Foreign currency translation adjustment, net	$	2,125	$	1,967
Unrealized derivative losses, net		528		534
Unfunded pension obligation, net		252		257
Accumulated other comprehensive loss	$	2,905	$	2,758

Dividend

On August 1, 2012, the Company's Board of Directors declared a dividend of $0.04 per outstanding share.As of September 30, 2012, the Company has recognized a liability of $30 million related to such dividends, which will be payable on November 15, 2012, to common shareholders of record as of October 30, 2012, with an ex-dividend date of October 26, 2012.

Stock Repurchase Program

On April 19, 2012, the Company's Board of Directors approved an increase to the stock repurchase program (the “Program”), which was announced on July 7, 2010, bringing the total amount authorized for purchases of AES common stock from $500 million to $680 million. 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. The Program does not have an expiration date and it can be modified or terminated by the Company's Board at any time. During the three months ended September 30, 2012, shares of common stock repurchased under this plan totaled 6,046,021 at a total cost of $71 million plus a nominal amount of commissions (average of $11.71 per share including commissions). During thenine months ended September 30, 2012, shares of common stock repurchased under this plan totaled 24,790,384 at a total cost of $301 million plus a nominal amount of commissions (average of $12.16 per share including commissions), bringing the cumulative total purchases under the program to 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). As of September 30, 2012, the Company has reached the authorized limit for stock repurchases under the existing program.

The shares of stock repurchased have been classified as treasury stock and accounted for using the cost method. A total of 66,437,231 and 42,386,961 shares were held as treasury stock at September 30, 2012 and December 31, 2011, respectively. The Company has not retired any shares held in treasury during the three and nine months ended September 30, 2012.