Rendering

Component: (Network and Table)
Network
2315301 - Disclosure - Benefit Plans (Tables)
(http://www.aes.com/role/BenefitPlansTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Compensation and Retirement Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Compensation and Retirement Disclosure [Abstract]
 
Schedule of Net Funded Status
The following table reconciles the Company's funded status, both domestic and foreign, as of the periods indicated (in millions):
December 31,
 
2016
 
2015
 
 
U.S.
 
Foreign
 
U.S.
 
Foreign
CHANGE IN PROJECTED BENEFIT OBLIGATION:
 
 
 
 
 
 
 
 
Benefit obligation as of January 1
 
$
1,172

 
$
2,876

 
$
1,235

 
$
4,222

Service cost
 
13

 
13

 
16

 
15

Interest cost
 
42

 
344

 
48

 
340

Employee contributions
 

 
3

 

 
3

Plan amendments
 

 
(4
)
 
5

 
2

Plan curtailments
 
2

 

 

 

Plan settlements
 

 

 
(3
)
 

Benefits paid
 
(60
)
 
(303
)
 
(61
)
 
(292
)
Actuarial (gain) loss
 
19

 
558

 
(68
)
 
(158
)
Effect of foreign currency exchange rate changes
 

 
505

 

 
(1,256
)
Benefit obligation as of December 31
 
$
1,188

 
$
3,992

 
$
1,172

 
$
2,876

CHANGE IN PLAN ASSETS:
 
 
 
 
 
 
 
 
Fair value of plan assets as of January 1
 
$
1,021

 
$
2,195

 
$
1,061

 
$
3,144

Actual return on plan assets
 
61

 
451

 
(7
)
 
175

Employer contributions
 
22

 
138

 
31

 
86

Employee contributions
 

 
3

 

 
3

Plan settlements
 

 

 
(3
)
 

Benefits paid
 
(60
)
 
(303
)
 
(61
)
 
(292
)
Effect of foreign currency exchange rate changes
 

 
340

 

 
(921
)
Fair value of plan assets as of December 31
 
$
1,044

 
$
2,824

 
$
1,021

 
$
2,195

RECONCILIATION OF FUNDED STATUS
 
 
 
 
 
 
 
 
Funded status as of December 31
 
$
(144
)
 
$
(1,168
)
 
$
(151
)
 
$
(681
)

 
 
Schedule of Amounts Recognized in Balance Sheet
The following table summarizes the amounts recognized on the Consolidated Balance Sheets related to the funded status of the plans, both domestic and foreign, as of the periods indicated (in millions):
December 31,
 
2016
 
2015
Amounts Recognized on the Consolidated Balance Sheets
 
U.S.
 
Foreign
 
U.S.
 
Foreign
Noncurrent assets
 
$

 
$
60

 
$

 
$
67

Accrued benefit liability—current
 

 
(5
)
 

 
(5
)
Accrued benefit liability—noncurrent
 
(144
)
 
(1,223
)
 
(151
)
 
(743
)
Net amount recognized at end of year
 
$
(144
)
 
$
(1,168
)
 
$
(151
)
 
$
(681
)
 
 
Schedule of Accumulated and Projected Benefit Obligations
The following table summarizes the Company's U.S. and foreign accumulated benefit obligation as of the periods indicated (in millions):
December 31,
2016
 
2015
 
 
U.S.
 
Foreign
 
U.S.
 
Foreign
 
Accumulated Benefit Obligation
$
1,167

 
$
3,942

 
$
1,150

 
$
2,836

 
Information for pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
 
 
 
 
 
 
Projected benefit obligation
$
1,188

 
$
3,671

 
$
1,172

 
$
2,585

 
Accumulated benefit obligation
1,167

 
3,638

 
1,150

 
2,561

 
Fair value of plan assets
1,044

 
2,448

 
1,021

 
1,842

 
Information for pension plans with a projected benefit obligation in excess of plan assets:
 
 
 
 
 
 
 
 
Projected benefit obligation
$
1,188

 
$
3,793

(1) 
$
1,172

 
$
2,600

(1) 
Fair value of plan assets
1,044

 
2,565

(1) 
1,021

 
1,853

(1) 
_____________________________
(1) 
$1.2 billion and $686 million of the total net unfunded projected benefit obligation is due to Eletropaulo in Brazil as of December 31, 2016 and 2015, respectively.
 
 
Schedule of Assumptions Used
The following table summarizes the significant weighted average assumptions used in the calculation of benefit obligation and net periodic benefit cost, both domestic and foreign, as of the periods indicated:
December 31,
 
2016
 
2015
 
 
 
U.S.
 
Foreign
 
U.S.
 
Foreign
 
Benefit Obligation —
Discount rate
4.28
%
 
10.08
%
(1) 
4.44
%
 
11.35
%
(1) 
 
Rate of compensation increase
3.34
%
 
6.41
%
 
3.34
%
 
6.31
%
 
Periodic Benefit Cost —
Discount rate
4.44
%
 
11.37
%
 
4.04
%
 
10.47
%
 
 
Expected long-term rate of return on plan assets
6.67
%
 
9.54
%
 
6.67
%
 
9.77
%
 
 
Rate of compensation increase
3.34
%
 
6.40
%
 
3.94
%
 
6.33
%
 
_____________________________
(1) 
Includes an inflation factor that is used to calculate future periodic benefit cost, but is not used to calculate the benefit obligation.
 
 
Impact Of One Percent Change In Assumptions
The impact on pension expense from a one percentage point change in these assumptions is shown in the following table (in millions):
Increase of 1% in the discount rate
 
$
(37
)
Decrease of 1% in the discount rate
 
32

Increase of 1% in the long-term rate of return on plan assets
 
(35
)
Decrease of 1% in the long-term rate of return on plan assets
 
35

 
 
Schedule of Net Benefit Costs
The following table summarizes the components of the net periodic benefit cost, both domestic and foreign, for the years indicated (in millions):
December 31,
 
2016
 
2015
 
2014
Components of Net Periodic Benefit Cost:
 
U.S.
 
Foreign
 
U.S.
 
Foreign
 
U.S.
 
Foreign
Service cost
 
$
13

 
$
13

 
$
16

 
$
15

 
$
14

 
$
16

Interest cost
 
42

 
344

 
48

 
340

 
50

 
473

Expected return on plan assets
 
(68
)
 
(221
)
 
(70
)
 
(236
)
 
(67
)
 
(348
)
Amortization of prior service cost
 
7

 
(1
)
 
7

 

 
6

 
(1
)
Amortization of net loss
 
18

 
19

 
20

 
25

 
13

 
35

Curtailment loss recognized
 
4

 

 

 

 

 

Settlement gain recognized
 

 

 

 

 

 
1

Total pension cost
 
$
16

 
$
154

 
$
21

 
$
144

 
$
16

 
$
176

 
 
Schedule of Net Periodic Benefit Cost Not yet Recognized
The following table summarizes in millions the amounts reflected in AOCL, including AOCL attributable to noncontrolling interests, on the Consolidated Balance Sheet as of December 31, 2016, that have not yet been recognized as components of net periodic benefit cost and amounts expected to be reclassified to earnings in the next fiscal year (in millions):
December 31, 2016
Accumulated Other Comprehensive Income (Loss)
 
Amounts expected to be reclassified to earnings in next fiscal year
 
U.S.
 
Foreign
 
U.S.
 
Foreign
Prior service cost
$

 
$
(1
)
 
$

 
$

Unrecognized net actuarial gain (loss)
(16
)
 
(1,370
)
 

 
(41
)
Total
$
(16
)
 
$
(1,371
)
 
$

 
$
(41
)
 
 
Target / Actual Allocation Of Pension Plan Asset
The following table summarizes the Company's target allocation for 2016 and pension plan asset allocation, both domestic and foreign, as of the periods indicated:
 
 
 
 
 
Percentage of Plan Assets as of December 31,
 
Target Allocations
 
2016
 
2015
Asset Category
U.S.
 
Foreign
 
U.S.
 
Foreign
 
U.S.
 
Foreign
Equity securities
53%
 
15% -28%
 
50.96
%
 
9.42
%
 
44.76
%
 
12.76
%
Debt securities
45%
 
62% - 85%
 
45.88
%
 
78.29
%
 
50.05
%
 
81.41
%
Real estate
2%
 
0% - 4%
 
3.16
%
 
3.15
%
 
2.94
%
 
3.33
%
Other
—%
 
0% - 5%
 
%
 
9.14
%
 
2.25
%
 
2.50
%
Total pension assets
 
 
 
 
100.00
%
 
100.00
%
 
100.00
%
 
100.00
%
 
 
Schedule of Allocation of Plan Assets
The asset allocation is reviewed periodically to determine a suitable asset allocation which seeks to manage risk through portfolio diversification and takes into account, among other possible factors, the above-stated objectives, in conjunction with current funding levels, cash flow conditions and economic and industry trends. The following table summarizes the Company's U.S. plan assets by category of investment and level within the fair value hierarchy as of the periods indicated (in millions):
 
 
December 31, 2016
 
December 31, 2015
U.S. Plans
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Equity securities:
Mutual funds
532

 

 

 
532

 
457

 

 

 
457

Debt securities:
Government debt securities
86

 

 

 
86

 
53

 

 

 
53

 
Mutual funds (1)
393

 

 

 
393

 
458

 

 

 
458

Real Estate:
Real Estate

 
33

 

 
33

 

 
30

 

 
30

Other:
Other investments

 

 

 

 

 
23

 

 
23

 
Total plan assets
$
1,011

 
$
33

 
$

 
$
1,044

 
$
968

 
$
53

 
$

 
$
1,021

_____________________________
(1) 
Mutual funds categorized as debt securities consist of mutual funds for which debt securities are the primary underlying investment
 
 
Fair Value Of Plan Assets By Category / Level (Foreign)
The investment strategy of the foreign plans seeks to maximize return on investment while minimizing risk. The assumed asset allocation has less exposure to equities in order to closely match market conditions and near term forecasts. The following table summarizes the Company's foreign plan assets by category of investment and level within the fair value hierarchy as of the periods indicated (in millions):
 
 
December 31, 2016
 
December 31, 2015
Foreign Plans
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Equity securities —
Mutual funds
$
175

 
$

 
$

 
$
175

 
$
156

 
$

 
$

 
$
156

 
Private equity (1)

 

 
150

 
150

 

 

 
124

 
124

Debt securities —
Government debt securities
10

 

 

 
10

 
11

 
29

 

 
40

 
Corporate debt securities

 
67

 

 
67

 

 

 

 

 
Mutual funds (2)
215

 
2,049

 

 
2,264

 
217

 
1,530

 

 
1,747

Real estate
Real estate (1)

 

 
89

 
89

 

 

 
73

 
73

Other —
Participant loans (3)

 

 
42

 
42

 

 

 
37

 
37

 
Other assets
24

 

 
3

 
27

 
16

 

 
2

 
18

 
Total plan assets
$
424

 
$
2,116

 
$
284

 
$
2,824

 
$
400

 
$
1,559

 
$
236

 
$
2,195


_____________________________
(1) 
Plan assets of our Brazilian subsidiaries are invested in private equities and commercial real estate through the plan administrator in Brazil. The fair value of these assets is determined using the income approach through annual appraisals based on a discounted cash flow analysis.
(2) 
Mutual funds categorized as debt securities consist of mutual funds for which debt securities are the primary underlying investment.
(3) 
Loans to participants are stated at cost, which approximates fair value
 
 
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
The following table presents a reconciliation of all plan assets measured at fair value using significant unobservable inputs (Level 3) for the periods indicated (in millions):
December 31,
 
2016
 
2015
Balance at January 1
 
$
236

 
$
389

Actual return on plan assets:
 
 
 
 
Returns relating to assets still held at reporting date
 
3

 
(35
)
Change due to exchange rate changes
 
45

 
(118
)
Balance at December 31
 
$
284

 
$
236


 
 
Scheduled Cash Flows For Employer Contributions And Expected Future Benefit Payments

The following table summarizes the estimated cash flows for U.S. and foreign expected employer contributions and expected future benefit payments, both domestic and foreign (in millions):
 
 
U.S.
 
Foreign
Expected employer contribution in 2017
 
$
14

 
$
159

Expected benefit payments for fiscal year ending:
 
 
 
 
2017
 
67

 
334

2018
 
69

 
346

2019
 
71

 
358

2020
 
72

 
370

2021
 
74

 
381

2022 - 2026
 
387

 
2,057