FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of Financial Instruments Measured at Fair Value on Recurring and Nonrecurring Basis

The following table presents the fair value of our financial instruments as of December 31, 2019 and 2018 that are (1) measured and reported at fair value in the Consolidated Financial Statements on a recurring basis and (2) not measured at fair value on a recurring basis in the Consolidated Financial Statements:

	December 31, 2019
	Carrying Amount			Fair Value			Level 1		Level 2			Level 3
	(In millions)
Measured at fair value on recurring basis
Forward contracts (1)	$	(75	)		(75	)	$	-	$	(75	)	$	-
Embedded derivatives (2)		(28	)		(28	)		-		-			(28	)
Not measured at fair value on recurring basis
Debt and finance lease obligations (3)		(4,353	)		(2,362	)		-		(2,275	)		(87	)
	December 31, 2018
	Carrying Amount			Fair Value			Level 1		Level 2			Level 3
	(In millions)
Measured at fair value on recurring basis
Forward contracts	$	(39	)	$	(39	)	$	-	$	(39	)	$	-
Not measured at fair value on recurring basis
Debt and finance lease obligations		(3,633	)		(3,287	)		-		(3,197	)		(90	)

⁽¹⁾ The fair value of forward contracts is classified as Level 2 within the fair value hierarchy and is valued using observable market parameters for similar instruments traded in active markets. Where quoted prices are not available, the income approach is used to value forward contracts. This approach discounts future cash flows based on current market expectations and credit risk.

⁽²⁾ The fair value of the embedded derivatives, discussed in Note 13, Debt, is determined using a discounted cash flow approach and is classified as Level 3 because the inputs to the fair value measurement of the embedded derivatives are unobservable and reflect our estimates of forward yield, using a risk-free rate and a USD Energy CCC yield curve.

⁽³⁾ Our debt instruments are generally valued using a market approach based on quoted prices for similar instruments traded in active markets and are classified as Level 2 within the fair value hierarchy. Quoted prices were not available for the NO 105 construction financing, vendor equipment financing or finance leases. Therefore, these instruments were valued based on the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms and are classified as Level 3 within the fair value hierarchy.