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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured on Recurring Basis
The following tables set forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy:
 
September 30, 2019
 
December 31, 2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
(In millions)
Corporate debt securities
$
—

 
$
446

 
$
—

 
$
446

 
$
—

 
$
405

 
$
—

 
$
405

Derivative assets FTRs(1)
—

 
—

 
6

 
6

 
—

 
—

 
10

 
10

Equity securities(2)
362

 
—

 
—

 
362

 
339

 
—

 
—

 
339

Foreign government debt securities
—

 
17

 
—

 
17

 
—

 
13

 
—

 
13

U.S. government debt securities
—

 
18

 
—

 
18

 
—

 
20

 
—

 
20

U.S. state debt securities
—

 
266

 
—

 
266

 
—

 
250

 
—

 
250

Other(3)
716

 
71

 
—

 
787

 
367

 
34

 
—

 
401

Total assets
$
1,078

 
$
818

 
$
6

 
$
1,902

 
$
706

 
$
722

 
$
10

 
$
1,438

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities FTRs(1)
$
—

 
$
—

 
$
(3
)
 
$
(3
)
 
$
—

 
$
—

 
$
(1
)
 
$
(1
)
Derivative liabilities NUG contracts(1)
—

 
—

 
(24
)
 
(24
)
 
—

 
—

 
(44
)
 
(44
)
Total liabilities
$
—

 
$
—

 
$
(27
)
 
$
(27
)
 
$
—

 
$
—

 
$
(45
)
 
$
(45
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets (liabilities)(4)
$
1,078

 
$
818

 
$
(21
)
 
$
1,875

 
$
706

 
$
722

 
$
(35
)
 
$
1,393


(1) 
Contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings.
(2) 
NDT funds hold equity portfolios whose performance is benchmarked against the S&P 500 Low Volatility High Dividend Index, S&P 500 Index, MSCI World Index and MSCI AC World IMI Index.
(3) 
Primarily consists of short-term cash investments.
(4) 
Excludes $(15) million and $4 million as of September 30, 2019 and December 31, 2018, respectively, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.
Reconciliation of Changes in the Fair Value Roll Forward of Level 3 Measurements of NUG Contracts
The following table provides a reconciliation of changes in the fair value of NUG contracts and FTRs that are classified as Level 3 in the fair value hierarchy for the periods ended September 30, 2019, and December 31, 2018:
 
NUG Contracts(1)
 
FTRs(1)
 
Derivative Assets
 
Derivative Liabilities
 
Net
 
Derivative Assets
 
Derivative Liabilities
 
Net
 
(In millions)
January 1, 2018 Balance
$
—

 
$
(79
)
 
$
(79
)
 
$
3

 
$
—

 
$
3

Unrealized gain
—

 
2

 
2

 
8

 
1

 
9

Purchases
—

 
—

 
—

 
5

 
(5
)
 
—

Settlements
—

 
33

 
33

 
(6
)
 
3

 
(3
)
December 31, 2018 Balance
$
—

 
$
(44
)
 
$
(44
)
 
$
10

 
$
(1
)
 
$
9

Unrealized loss
—

 
(8
)
 
(8
)
 
—

 
(1
)
 
(1
)
Purchases
—

 
—

 
—

 
6

 
(4
)
 
2

Settlements
—

 
28

 
28

 
(10
)
 
3

 
(7
)
September 30, 2019 Balance
$
—

 
$
(24
)
 
$
(24
)
 
$
6

 
$
(3
)
 
$
3


(1)Contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings.
Quantitative Information for Level 3 Valuation
The following table provides quantitative information for FTRs and NUG contracts that are classified as Level 3 in the fair value hierarchy for the period ended September 30, 2019:
 
 
Fair Value, Net (In millions)
 
Valuation
Technique
 
Significant Input
 
Range
 
Weighted Average
 
Units
FTRs
 
$
3

 
Model
 
RTO auction clearing prices
 
$0.60 to $3.60
 
$1.20
 
Dollars/MWH
 
 
 
 
 
 
 
 
 
 
 
 
 
NUG Contracts
 
$
(24
)
 
Model
 
Generation
 
400 to 553,000
 
115,000

 
MWH
 
 
 
Regional electricity prices
 
$26.20 to $28.30
 
$27.20
 
Dollars/MWH
Amortized Cost Basis, Unrealized Gains and Losses and Fair Values of Investments in Available-for-sale Securities
The following table summarizes the amortized cost basis, unrealized gains, unrealized losses and fair values of investments held in NDT and nuclear fuel disposal trusts as of September 30, 2019, and December 31, 2018:
 
 
September 30, 2019(1)
 
December 31, 2018(1)
 
 
Cost Basis
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
Cost Basis
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
 
$
736

 
$
27

 
$
(14
)
 
$
749

 
$
714

 
$
2


$
(28
)
 
$
688

Equity securities
 
$
312

 
$
50

 
$
(2
)
 
$
360

 
$
339

 
$
15

 
$
(16
)
 
$
338



(1) Excludes $33 million and $20 million as of September 30, 2019 and December 31, 2018, respectively, of short-term cash investments, taxes, receivables, payables and accrued income.
Proceeds from the Sale of Investments in Available-for-sale Securities, Realized Gains and Losses on Those Sales, and Interest and Dividend Income
Proceeds from the sale of investments in equity and AFS debt securities, realized gains and losses on those sales and interest and dividend income for the three and nine months ended September 30, 2019 and 2018, were as follows:
 
 
For the Three Months Ended September 30,
 
For the Nine Months
Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(In millions)
Sale proceeds
 
$
204

 
$
261

 
$
506

 
$
627

Realized gains
 
8

 
3

 
20

 
31

Realized losses
 
(7
)
 
(7
)
 
(18
)
 
(34
)
Interest and dividend income
 
10

 
11

 
30

 
31
Fair Value and Related Carrying Amounts of Long-term Debt and Other Long-term Obligations The following table provides the approximate fair value and related carrying amounts of long-term debt, which excludes finance lease obligations and net unamortized debt issuance costs, premiums and discounts as of September 30, 2019 and December 31, 2018:
 
September 30, 2019
 
December 31, 2018
 
(In millions)
Carrying value (1)
$
19,880

 
$
18,315

Fair value
$
22,910

 
$
19,266



(1) The carrying value as of September 30, 2019, includes $2.1 billion of debt issuances and $784 million of redemptions that occurred in the first nine months of 2019.