Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent

24 | Notes to Condensed Consolidated Financial Statements—(Continued) | September 30, 2022 and 2021In January 2022, Cachagua completed a tender offer for the shares of AES Andes held by minority shareholders for $522 million, net of transaction costs. Upon completion, AES' indirect beneficial interest in AES Andes increased from 67.1% to 98%. Through multiple transactions following the tender offer, Cachagua acquired an additional 1% ownership in AES Andes for $13 million, further increasing AES’ indirect beneficial interest to 99%. These transactions resulted in a $169 million decrease to Parent Company Stockholder’s Equity due to a decrease in additional paid-in capital of $93 million and the reclassification of accumulated other comprehensive losses from NCI to AOCL of $76 million. AES Andes is reported in the South America SBU reportable segment.Colon — On September 13, 2021, the Company acquired the remaining 49.9% minority ownership interest in Colon. Following the completion of the transaction, the Company is now the sole owner of Colon. In conjunction with the acquisition, a note payable was recorded that is expected to be satisfied over two installments by the end of 2023. This transaction resulted in a $12 million decrease in Parent Company Stockholders’ Equity due to a decrease in additional paid-in-capital of $8 million and the reclassification of accumulated other comprehensive losses from Redeemable stock of subsidiaries to AOCL of $4 million. Colon is reported in the MCAC SBU reportable segment.Accumulated Other Comprehensive Loss — The following table summarizes the changes in AOCL by component, net of tax and NCI, for the nine months ended September 30, 2022 (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Foreign currency translation adjustment, net |  | Unrealized derivative gains (losses), net |  | Unfunded pension obligations, net |  | Total |
| Balance at the beginning of the period  | $ | (1,734) |  |  | $ | (456) |  |  | $ | (30) |  |  | $ | (2,220) |  |
| Other comprehensive income (loss) before reclassifications | (90) |  |  | 653  |  |  | —  |  |  | 563  |  |
| Amount reclassified to earnings | —  |  |  | 41  |  |  | 1  |  |  | 42  |  |
| Other comprehensive income (loss) | (90) |  |  | 694  |  |  | 1  |  |  | 605  |  |
| Reclassification from NCI due to share repurchases | (53) |  |  | (20) |  |  | (3) |  |  | (76) |  |
| Balance at the end of the period | $ | (1,877) |  |  | $ | 218  |  |  | $ | (32) |  |  | $ | (1,691) |  |

Reclassifications out of AOCL are presented in the following table. Amounts for the periods indicated are in millions and those in parentheses indicate debits to the Condensed Consolidated Statements of Operations:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AOCL Components |  | Affected Line Item in the Condensed Consolidated Statements of Operations |  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  |  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Foreign currency translation adjustment, net |  |  |
|  |  | Gain on disposal and sale of business interests |  | $ | —  |  |  | $ | —  |  |  | $ | —  |  |  | $ | (3) |  |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  | Net income attributable to The AES Corporation |  | $ | —  |  |  | $ | —  |  |  | $ | —  |  |  | $ | (3) |  |
|  |  |  |  |  |  |  |  |  |  |  |
| Derivative gains (losses), net |  |  |  |  |  |  |  |  |
|  |  | Non-regulated revenue |  | $ | —  |  |  | $ | (1) |  |  | $ | (1) |  |  | $ | (1) |  |
|  |  | Non-regulated cost of sales |  | (5) |  |  | 2  |  |  | (7) |  |  | (2) |  |
|  |  | Interest expense |  | (9) |  |  | (33) |  |  | (42) |  |  | (62) |  |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  | Asset impairment expense |  | —  |  |  | —  |  |  | (16) |  |  | (13) |  |
|  |  | Foreign currency transaction gains (losses) |  | 2  |  |  | (7) |  |  | 2  |  |  | (12) |  |
|  |  | Income from continuing operations before taxes and equity in earnings of affiliates |  | (12) |  |  | (39) |  |  | (64) |  |  | (90) |  |
|  |  | Income tax expense |  | (1) |  |  | 10  |  |  | 12  |  |  | 23  |  |
|  |  | Net equity in earnings (losses) of affiliates |  | (1) |  |  | (1) |  |  | —  |  |  | (12) |  |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  | Net income |  | (14) |  |  | (30) |  |  | (52) |  |  | (79) |  |
|  |  | Less: Net income attributable to noncontrolling interests and redeemable stock of subsidiaries |  | 3  |  |  | 9  |  |  | 11  |  |  | 22  |  |
|  |  | Net income attributable to The AES Corporation |  | $ | (11) |  |  | $ | (21) |  |  | $ | (41) |  |  | $ | (57) |  |
| Amortization of defined benefit pension actuarial gain (loss), net |  |  |  |  |  |  |  |  |
|  |  | Regulated cost of sales |  | $ | —  |  |  | $ | (2) |  |  | $ | (1) |  |  | $ | (3) |  |
|  |  | Non-regulated cost of sales |  | —  |  |  | (1) |  |  | —  |  |  | (1) |  |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  | Other expense |  | (2) |  |  | —  |  |  | (2) |  |  | (1) |  |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  | Income from continuing operations before taxes and equity in earnings of affiliates |  | (2) |  |  | (3) |  |  | (3) |  |  | (5) |  |
|  |  | Income tax expense |  | 1  |  |  | (1) |  |  | 1  |  |  | —  |  |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  | Net income |  | (1) |  |  | (4) |  |  | (2) |  |  | (5) |  |
|  |  | Less: Income from continuing operations attributable to noncontrolling interests and redeemable stock of subsidiaries |  | 1  |  |  | 2  |  |  | 1  |  |  | 2  |  |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  | Net income attributable to The AES Corporation |  | $ | —  |  |  | $ | (2) |  |  | $ | (1) |  |  | $ | (3) |  |
| Total reclassifications for the period, net of income tax and noncontrolling interests |  | $ | (11) |  |  | $ | (23) |  |  | $ | (42) |  |  | $ | (63) |  |

Common Stock Dividends — The Parent Company paid dividends of $0.1580 per outstanding share to its common stockholders during the first, second, and third quarters of 2022 for dividends declared in December 2021, February 2022 and July 2022, respectively.  

