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Fair Value of Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Estimated Carrying Values and Fair Values
The estimated carrying amounts and fair values of the Company’s recorded financial instruments not carried at fair market value are as follows:
 
As of June 30, 2019
 
As of December 31, 2018
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
(In millions)
 
Liabilities:
 
 
 
 
 
 
 
Long-term debt, including current portion (a)
$
6,183

 
$
6,121

 
$
6,043

 
$
5,943


 

(a) Excludes net debt issuance costs, which are recorded as a reduction to long-term debt on the Company's consolidated balance sheets.
Fair Value Option, Disclosures The following table presents the level within the fair value hierarchy for long-term debt, including current portion as of June 30, 2019 and December 31, 2018:
 
As of June 30, 2019
 
As of December 31, 2018
 
Level 2
 
Level 3
 
Level 2
 
Level 3
 
(In millions)
Long-term debt, including current portion
$
1,507

 
$
4,614

 
$
1,620

 
$
4,323


Schedule of Fair Value, Assets and Liabilities
The Company records its derivative assets and liabilities at fair value on its consolidated balance sheet. The following table presents assets and liabilities measured and recorded at fair value on the Company's consolidated balance sheets on a recurring basis and their level within the fair value hierarchy:
 
As of June 30, 2019
 
As of December 31, 2018
 
Fair Value (a)
 
Fair Value (a)
(In millions)
Level 2
 
Level 3
 
Total
 
Level 2
Derivative assets:
 
 
 
 
 
 
 
Interest rate contracts
$

 
$

 
$

 
$
11

Total assets

 

 

 
11

Derivative liabilities:
 
 
 
 
 
 
 
Commodity contracts
1

 
7

 
8

 

Interest rate contracts
71

 

 
71

 
21

Total liabilities
$
72

 
$
7

 
$
79

 
$
21

 

(a) There were no derivative assets or liabilities classified as Level 1 as of June 30, 2019, and no derivative assets or liabilities classified as Level 1 or Level 3 as of December 31, 2018.
The following table reconciles the beginning and ending balances for instruments that are recognized at fair value in the condensed consolidated financial statements using significant unobservable inputs:
 
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2019
 
2018
 
2019
 
2018
(In millions)
 
Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
 
Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
Beginning balance
 
$
(7
)
 
$

 
$

 
$

Purchases
 

 

 
(7
)
 

Ending balance
 
$
(7
)
 
$

 
$
(7
)
 
$


Fair Value Measurement Inputs and Valuation Techniques
The following tables quantify the significant unobservable inputs used in developing the fair value of the Company's Level 3 positions as of June 30, 2019:

 
June 30, 2019
 
Fair Value
 
Input/Range
 
Assets
Liabilities
Valuation Technique
Significant Unobservable Input
Low
High
Weighted Average
(In millions)
 
 
 
 
 
 
 
Power Contracts
$

$
7

Discounted Cash Flow
Forward Market Price (per MWh)
7

31

12

The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of June 30, 2019:
Significant Observable Input
Position
Change In Input
Impact on Fair Value Measurement
Forward Market Price Power
Buy
Increase/(Decrease)
Higher/(Lower)
Forward Market Price Power
Sell
Increase/(Decrease)
Lower/(Higher)