FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and December 31, 2019 that are (1) measured and reported at fair value in the Financial Statements on a recurring basis and (2) not measured at fair value on a recurring basis in the Financial Statements:

	March 31, 2020
	Carrying Amount			Fair Value			Level 1		Level 2			Level 3
	(In millions)
Measured at fair value on recurring basis
Forward contracts (1)	$	(94	)		(94	)	$	-	$	(94	)	$	-
Not measured at fair value on recurring basis
Debt and finance lease obligations (2)		(2,083	)		(1,956	)		-		(1,885	)		(71	)
Liabilities subject to compromise (3)		(4,578	)		(1,133	)		-		(860	)		(273	)
	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 (4)		(28	)		(28	)		-		-			(28	)
Not measured at fair value on recurring basis
Debt and finance lease obligations (2)		(4,353	)		(2,362	)		-		(2,275	)		(87	)

⁽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) 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, structured 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.}

^{(3) The fair value of the Term Facility and the Senior Notes included in “Liabilities subject to compromise” is 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 Revolving Credit Facility and the interest rate derivative included in “Liabilities subject to compromise”. Therefore, they were valued based on estimated prices for similar instruments and are classified as Level 3 within the fair value hierarchy. According to the Plan of Reorganization, liabilities subject to compromise will be impaired at the Effective Date. See Note 3, Reorganization, for further discussion.}

^{(4) The fair value of the embedded derivatives, discussed in Note 11, Debt, was 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. The fair value of the embedded derivative as of March 31, 2020 was not material.}