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Available-for-Sale Securities
 9 Months Ended
Sep. 30, 2017
Schedule of Available-for-sale Securities [Line Items]  
Available-for-Sale Securities
Available-for-Sale Securities
NDT Fund
Power maintains an external master NDT to fund its share of decommissioning costs for its five nuclear facilities upon termination of operation. The trust contains two separate funds: a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. The funds are managed by third-party investment managers who operate under investment guidelines developed by Power.
Power classifies investments in the NDT Fund as available-for-sale. The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
$
706

 
$
331

 
$
(5
)
 
$
1,032

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
Government
561

 
10

 
(4
)
 
567

 
 
Corporate
352

 
7

 
(1
)
 
358

 
 
Total Debt Securities
913

 
17

 
(5
)
 
925

 
 
Other Securities
55

 
—

 
—

 
55

 
 
Total NDT Available-for-Sale Securities
$
1,674

 
$
348

 
$
(10
)
 
$
2,012

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
$
705

 
$
263

 
$
(11
)
 
$
957

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
Government
518

 
8

 
(6
)
 
520

 
 
Corporate
337

 
4

 
(4
)
 
337

 
 
Total Debt Securities
855

 
12

 
(10
)
 
857

 
 
Other Securities
44

 
—

 
—

 
44

 
 
Total NDT Available-for-Sale Securities (A)
$
1,604

 
$
275

 
$
(21
)
 
$
1,858

 
 
 
 
 
 
 
 
 
 
 

(A)
The NDT available-for-sale securities table excludes cash of $1 million which is part of the NDT Fund.
The amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
September 30,
2017
 
December 31,
2016
 
 
 
Millions
 
 
Accounts Receivable
$
11

 
$
8

 
 
Accounts Payable
$
5

 
$
5

 
 
 
 
 
 
 


The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
As of December 31, 2016
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Equity Securities (A)
$
67

 
$
(5
)
 
$
—

 
$
—

 
$
120

 
$
(10
)
 
$
8

 
$
(1
)
 
 
Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
237

 
(2
)
 
62

 
(2
)
 
276

 
(6
)
 
4

 
—

 
 
Corporate (C)
60

 
—

 
36

 
(1
)
 
139

 
(3
)
 
15

 
(1
)
 
 
Total Debt Securities
297

 
(2
)
 
98

 
(3
)
 
415

 
(9
)
 
19

 
(1
)
 
 
Other Securities
3

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
NDT Available-for-Sale Securities
$
367

 
$
(7
)
 
$
98

 
$
(3
)
 
$
535

 
$
(19
)
 
$
27

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. The unrealized losses are distributed over a broad range of securities with limited impairment durations. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2017.
(B)
Debt Securities (Government)—Unrealized losses on Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. Power also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of September 30, 2017.
(C)
Debt Securities (Corporate)—Power’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of September 30, 2017.
The proceeds from the sales of and the net realized gains on securities in the NDT Fund were:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2017
 
2016
 
2017
 
2016
 
 
 
Millions
 
 
Proceeds from NDT Fund Sales (A)
$
278

 
$
139

 
$
845

 
$
470

 
 
Net Realized Gains (Losses) on NDT Fund:
 
 
 
 
 
 
 
 
 
Gross Realized Gains
$
29

 
$
11

 
$
82

 
$
36

 
 
Gross Realized Losses
(5
)
 
(3
)
 
(14
)
 
(25
)
 
 
Net Realized Gains (Losses) on NDT Fund
$
24

 
$
8

 
$
68

 
$
11

 
 
 
 
 
 
 
 
 
 
 

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
The cost of these securities was determined on the basis of specific identification.
Gross realized gains and gross realized losses disclosed in the preceding table were recognized in Other Income and Other Deductions, respectively, in PSEG’s and Power’s Condensed Consolidated Statements of Operations. Net unrealized gains of $172 million (after-tax) were recognized in Accumulated Other Comprehensive Loss on PSEG’s and Power’s Condensed Consolidated Balance Sheets as of September 30, 2017.

The NDT available-for-sale debt securities held as of September 30, 2017 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
37

 
 
1 - 5 years
 
236

 
 
6 - 10 years
 
230

 
 
11 - 15 years
 
62

 
 
16 - 20 years
 
67

 
 
Over 20 years
 
293

 
 
Total NDT Available-for-Sale Debt Securities
$
925

 
 
 
 
 
 

Power periodically assesses individual securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For equity securities, management considers the ability and intent to hold for a reasonable time to permit recovery in addition to the severity and duration of the loss. For fixed income securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). For the nine months ended September 30, 2017, Other-Than-Temporary Impairments (OTTI) of$9 million were recognized on securities in the NDT Fund. Any subsequent recoveries in the value of these securities would be recognized in Accumulated Other Comprehensive Income (Loss) unless the securities are sold, in which case, any gain would be recognized in income. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.
Rabbi Trust
PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.”
PSEG classifies investments in the Rabbi Trust as available-for-sale. The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust.
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
$
22

 
$
1

 
$
—

 
$
23

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
Government
82

 
2

 
—

 
84

 
 
Corporate
118

 
3

 
(1
)
 
120

 
 
Total Debt Securities
200

 
5

 
(1
)
 
204

 
 
Other Securities
2

 
—

 
—

 
2

 
 
Total Rabbi Trust Available-for-Sale Securities
$
224

 
$
6

 
$
(1
)
 
$
229

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
$
11

 
$
11

 
$
—

 
$
22

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
Government
105

 
—

 
(2
)
 
103

 
 
Corporate
92

 
1

 
(2
)
 
91

 
 
Total Debt Securities
197

 
1

 
(4
)
 
194

 
 
Other Securities
1

 
—

 
—

 
1

 
 
Total Rabbi Trust Available-for-Sale Securities
$
209

 
$
12

 
$
(4
)
 
$
217

 
 
 
 
 
 
 
 
 
 
 

The amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
September 30,
2017
 
December 31,
2016
 
 
 
Millions
 
 
Accounts Receivable
$
2

 
$
5

 
 
Accounts Payable
$
—

 
$
3

 
 
 
 
 
 
 

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than 12 months and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
As of December 31, 2016
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Equity Securities (A)
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
25

 
—

 
3

 
—

 
60

 
(2
)
 
1

 
—

 
 
Corporate (C)
14

 
(1
)
 
4

 
—

 
46

 
(2
)
 
3

 
—

 
 
Total Debt Securities
39

 
(1
)
 
7

 
—

 
106

 
(4
)
 
4

 
—

 
 
Rabbi Trust Available-for-Sale Securities
$
39

 
$
(1
)
 
$
7

 
$
—

 
$
106

 
$
(4
)
 
$
4

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Equity Securities—Investments in marketable equity securities within the Rabbi Trust Fund are through a mutual fund which invests primarily in common stocks within a broad range of industries and sectors.
(B)
Debt Securities (Government)—Unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of September 30, 2017.
(C)
Debt Securities (Corporate)—PSEG’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of September 30, 2017.
The proceeds from the sales of and the net realized gains (losses) on securities in the Rabbi Trust Fund were:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2017
 
2016
 
2017
 
2016
 
 
 
Millions
 
 
Proceeds from Rabbi Trust Sales (A)
$
24

 
$
20

 
$
168

 
$
81

 
 
Net Realized Gains (Losses) on Rabbi Trust:
 
 
 
 
 
 
 
 
 
Gross Realized Gains
$
—

 
$
2

 
$
17

 
$
5

 
 
Gross Realized Losses
(1
)
 
(2
)
 
(5
)
 
(4
)
 
 
Net Realized Gains (Losses) on Rabbi Trust
$
(1
)
 
$
—

 
$
12

 
$
1

 
 
 
 
 
 
 
 
 
 
 

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
The cost of these securities was determined on the basis of specific identification.
Gross realized gains and gross realized losses disclosed in the preceding table were recognized in Other Income and Other Deductions, respectively, in the Condensed Consolidated Statements of Operations. Net unrealized gains of $3 million (after-tax) were recognized in Accumulated Other Comprehensive Loss on the Condensed Consolidated Balance Sheets as of September 30, 2017.
The Rabbi Trust available-for-sale debt securities held as of September 30, 2017 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
—

 
 
1 - 5 years
 
40

 
 
6 - 10 years
 
27

 
 
11 - 15 years
 
6

 
 
16 - 20 years
 
19

 
 
Over 20 years
 
112

 
 
Total Rabbi Trust Available-for-Sale Debt Securities
$
204

 
 
 
 
 
 

PSEG periodically assesses individual securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For equity securities, the Rabbi Trust is invested in an indexed mutual fund. Due to the commingled nature of this fund, PSEG does not have the ability to hold these securities until expected recovery. As a result, any declines in fair market value below cost are recorded as a charge to earnings. For fixed income securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). For the nine months ended September 30, 2017, no OTTIs were recognized on securities in the Rabbi Trust. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.
The fair value of the Rabbi Trust related to PSEG, PSE&G and Power are detailed as follows:
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
September 30,
2017
 
December 31,
2016
 
 
 
Millions
 
 
PSE&G
$
46

 
$
43

 
 
Power
57

 
53

 
 
Other
126

 
121

 
 
Total Rabbi Trust Available-for-Sale Securities
$
229

 
$
217

 
 
 
 
 
 
 
PSE And G [Member]  
Schedule of Available-for-sale Securities [Line Items]  
Available-for-Sale Securities
Available-for-Sale Securities
NDT Fund
Power maintains an external master NDT to fund its share of decommissioning costs for its five nuclear facilities upon termination of operation. The trust contains two separate funds: a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. The funds are managed by third-party investment managers who operate under investment guidelines developed by Power.
Power classifies investments in the NDT Fund as available-for-sale. The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
$
706

 
$
331

 
$
(5
)
 
$
1,032

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
Government
561

 
10

 
(4
)
 
567

 
 
Corporate
352

 
7

 
(1
)
 
358

 
 
Total Debt Securities
913

 
17

 
(5
)
 
925

 
 
Other Securities
55

 
—

 
—

 
55

 
 
Total NDT Available-for-Sale Securities
$
1,674

 
$
348

 
$
(10
)
 
$
2,012

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
$
705

 
$
263

 
$
(11
)
 
$
957

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
Government
518

 
8

 
(6
)
 
520

 
 
Corporate
337

 
4

 
(4
)
 
337

 
 
Total Debt Securities
855

 
12

 
(10
)
 
857

 
 
Other Securities
44

 
—

 
—

 
44

 
 
Total NDT Available-for-Sale Securities (A)
$
1,604

 
$
275

 
$
(21
)
 
$
1,858

 
 
 
 
 
 
 
 
 
 
 

(A)
The NDT available-for-sale securities table excludes cash of $1 million which is part of the NDT Fund.
The amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
September 30,
2017
 
December 31,
2016
 
 
 
Millions
 
 
Accounts Receivable
$
11

 
$
8

 
 
Accounts Payable
$
5

 
$
5

 
 
 
 
 
 
 


The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
As of December 31, 2016
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Equity Securities (A)
$
67

 
$
(5
)
 
$
—

 
$
—

 
$
120

 
$
(10
)
 
$
8

 
$
(1
)
 
 
Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
237

 
(2
)
 
62

 
(2
)
 
276

 
(6
)
 
4

 
—

 
 
Corporate (C)
60

 
—

 
36

 
(1
)
 
139

 
(3
)
 
15

 
(1
)
 
 
Total Debt Securities
297

 
(2
)
 
98

 
(3
)
 
415

 
(9
)
 
19

 
(1
)
 
 
Other Securities
3

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
NDT Available-for-Sale Securities
$
367

 
$
(7
)
 
$
98

 
$
(3
)
 
$
535

 
$
(19
)
 
$
27

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. The unrealized losses are distributed over a broad range of securities with limited impairment durations. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2017.
(B)
Debt Securities (Government)—Unrealized losses on Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. Power also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of September 30, 2017.
(C)
Debt Securities (Corporate)—Power’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of September 30, 2017.
The proceeds from the sales of and the net realized gains on securities in the NDT Fund were:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2017
 
2016
 
2017
 
2016
 
 
 
Millions
 
 
Proceeds from NDT Fund Sales (A)
$
278

 
$
139

 
$
845

 
$
470

 
 
Net Realized Gains (Losses) on NDT Fund:
 
 
 
 
 
 
 
 
 
Gross Realized Gains
$
29

 
$
11

 
$
82

 
$
36

 
 
Gross Realized Losses
(5
)
 
(3
)
 
(14
)
 
(25
)
 
 
Net Realized Gains (Losses) on NDT Fund
$
24

 
$
8

 
$
68

 
$
11

 
 
 
 
 
 
 
 
 
 
 

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
The cost of these securities was determined on the basis of specific identification.
Gross realized gains and gross realized losses disclosed in the preceding table were recognized in Other Income and Other Deductions, respectively, in PSEG’s and Power’s Condensed Consolidated Statements of Operations. Net unrealized gains of $172 million (after-tax) were recognized in Accumulated Other Comprehensive Loss on PSEG’s and Power’s Condensed Consolidated Balance Sheets as of September 30, 2017.

The NDT available-for-sale debt securities held as of September 30, 2017 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
37

 
 
1 - 5 years
 
236

 
 
6 - 10 years
 
230

 
 
11 - 15 years
 
62

 
 
16 - 20 years
 
67

 
 
Over 20 years
 
293

 
 
Total NDT Available-for-Sale Debt Securities
$
925

 
 
 
 
 
 

Power periodically assesses individual securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For equity securities, management considers the ability and intent to hold for a reasonable time to permit recovery in addition to the severity and duration of the loss. For fixed income securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). For the nine months ended September 30, 2017, Other-Than-Temporary Impairments (OTTI) of$9 million were recognized on securities in the NDT Fund. Any subsequent recoveries in the value of these securities would be recognized in Accumulated Other Comprehensive Income (Loss) unless the securities are sold, in which case, any gain would be recognized in income. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.
Rabbi Trust
PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.”
PSEG classifies investments in the Rabbi Trust as available-for-sale. The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust.
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
$
22

 
$
1

 
$
—

 
$
23

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
Government
82

 
2

 
—

 
84

 
 
Corporate
118

 
3

 
(1
)
 
120

 
 
Total Debt Securities
200

 
5

 
(1
)
 
204

 
 
Other Securities
2

 
—

 
—

 
2

 
 
Total Rabbi Trust Available-for-Sale Securities
$
224

 
$
6

 
$
(1
)
 
$
229

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
$
11

 
$
11

 
$
—

 
$
22

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
Government
105

 
—

 
(2
)
 
103

 
 
Corporate
92

 
1

 
(2
)
 
91

 
 
Total Debt Securities
197

 
1

 
(4
)
 
194

 
 
Other Securities
1

 
—

 
—

 
1

 
 
Total Rabbi Trust Available-for-Sale Securities
$
209

 
$
12

 
$
(4
)
 
$
217

 
 
 
 
 
 
 
 
 
 
 

The amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
September 30,
2017
 
December 31,
2016
 
 
 
Millions
 
 
Accounts Receivable
$
2

 
$
5

 
 
Accounts Payable
$
—

 
$
3

 
 
 
 
 
 
 

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than 12 months and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
As of December 31, 2016
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Equity Securities (A)
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
25

 
—

 
3

 
—

 
60

 
(2
)
 
1

 
—

 
 
Corporate (C)
14

 
(1
)
 
4

 
—

 
46

 
(2
)
 
3

 
—

 
 
Total Debt Securities
39

 
(1
)
 
7

 
—

 
106

 
(4
)
 
4

 
—

 
 
Rabbi Trust Available-for-Sale Securities
$
39

 
$
(1
)
 
$
7

 
$
—

 
$
106

 
$
(4
)
 
$
4

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Equity Securities—Investments in marketable equity securities within the Rabbi Trust Fund are through a mutual fund which invests primarily in common stocks within a broad range of industries and sectors.
(B)
Debt Securities (Government)—Unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of September 30, 2017.
(C)
Debt Securities (Corporate)—PSEG’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of September 30, 2017.
The proceeds from the sales of and the net realized gains (losses) on securities in the Rabbi Trust Fund were:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2017
 
2016
 
2017
 
2016
 
 
 
Millions
 
 
Proceeds from Rabbi Trust Sales (A)
$
24

 
$
20

 
$
168

 
$
81

 
 
Net Realized Gains (Losses) on Rabbi Trust:
 
 
 
 
 
 
 
 
 
Gross Realized Gains
$
—

 
$
2

 
$
17

 
$
5

 
 
Gross Realized Losses
(1
)
 
(2
)
 
(5
)
 
(4
)
 
 
Net Realized Gains (Losses) on Rabbi Trust
$
(1
)
 
$
—

 
$
12

 
$
1

 
 
 
 
 
 
 
 
 
 
 

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
The cost of these securities was determined on the basis of specific identification.
Gross realized gains and gross realized losses disclosed in the preceding table were recognized in Other Income and Other Deductions, respectively, in the Condensed Consolidated Statements of Operations. Net unrealized gains of $3 million (after-tax) were recognized in Accumulated Other Comprehensive Loss on the Condensed Consolidated Balance Sheets as of September 30, 2017.
The Rabbi Trust available-for-sale debt securities held as of September 30, 2017 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
—

 
 
1 - 5 years
 
40

 
 
6 - 10 years
 
27

 
 
11 - 15 years
 
6

 
 
16 - 20 years
 
19

 
 
Over 20 years
 
112

 
 
Total Rabbi Trust Available-for-Sale Debt Securities
$
204

 
 
 
 
 
 

PSEG periodically assesses individual securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For equity securities, the Rabbi Trust is invested in an indexed mutual fund. Due to the commingled nature of this fund, PSEG does not have the ability to hold these securities until expected recovery. As a result, any declines in fair market value below cost are recorded as a charge to earnings. For fixed income securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). For the nine months ended September 30, 2017, no OTTIs were recognized on securities in the Rabbi Trust. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.
The fair value of the Rabbi Trust related to PSEG, PSE&G and Power are detailed as follows:
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
September 30,
2017
 
December 31,
2016
 
 
 
Millions
 
 
PSE&G
$
46

 
$
43

 
 
Power
57

 
53

 
 
Other
126

 
121

 
 
Total Rabbi Trust Available-for-Sale Securities
$
229

 
$
217

 
 
 
 
 
 
 
Power [Member]  
Schedule of Available-for-sale Securities [Line Items]  
Available-for-Sale Securities
Available-for-Sale Securities
NDT Fund
Power maintains an external master NDT to fund its share of decommissioning costs for its five nuclear facilities upon termination of operation. The trust contains two separate funds: a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. The funds are managed by third-party investment managers who operate under investment guidelines developed by Power.
Power classifies investments in the NDT Fund as available-for-sale. The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
$
706

 
$
331

 
$
(5
)
 
$
1,032

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
Government
561

 
10

 
(4
)
 
567

 
 
Corporate
352

 
7

 
(1
)
 
358

 
 
Total Debt Securities
913

 
17

 
(5
)
 
925

 
 
Other Securities
55

 
—

 
—

 
55

 
 
Total NDT Available-for-Sale Securities
$
1,674

 
$
348

 
$
(10
)
 
$
2,012

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
$
705

 
$
263

 
$
(11
)
 
$
957

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
Government
518

 
8

 
(6
)
 
520

 
 
Corporate
337

 
4

 
(4
)
 
337

 
 
Total Debt Securities
855

 
12

 
(10
)
 
857

 
 
Other Securities
44

 
—

 
—

 
44

 
 
Total NDT Available-for-Sale Securities (A)
$
1,604

 
$
275

 
$
(21
)
 
$
1,858

 
 
 
 
 
 
 
 
 
 
 

(A)
The NDT available-for-sale securities table excludes cash of $1 million which is part of the NDT Fund.
The amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
September 30,
2017
 
December 31,
2016
 
 
 
Millions
 
 
Accounts Receivable
$
11

 
$
8

 
 
Accounts Payable
$
5

 
$
5

 
 
 
 
 
 
 


The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
As of December 31, 2016
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Equity Securities (A)
$
67

 
$
(5
)
 
$
—

 
$
—

 
$
120

 
$
(10
)
 
$
8

 
$
(1
)
 
 
Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
237

 
(2
)
 
62

 
(2
)
 
276

 
(6
)
 
4

 
—

 
 
Corporate (C)
60

 
—

 
36

 
(1
)
 
139

 
(3
)
 
15

 
(1
)
 
 
Total Debt Securities
297

 
(2
)
 
98

 
(3
)
 
415

 
(9
)
 
19

 
(1
)
 
 
Other Securities
3

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
NDT Available-for-Sale Securities
$
367

 
$
(7
)
 
$
98

 
$
(3
)
 
$
535

 
$
(19
)
 
$
27

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. The unrealized losses are distributed over a broad range of securities with limited impairment durations. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2017.
(B)
Debt Securities (Government)—Unrealized losses on Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. Power also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of September 30, 2017.
(C)
Debt Securities (Corporate)—Power’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of September 30, 2017.
The proceeds from the sales of and the net realized gains on securities in the NDT Fund were:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2017
 
2016
 
2017
 
2016
 
 
 
Millions
 
 
Proceeds from NDT Fund Sales (A)
$
278

 
$
139

 
$
845

 
$
470

 
 
Net Realized Gains (Losses) on NDT Fund:
 
 
 
 
 
 
 
 
 
Gross Realized Gains
$
29

 
$
11

 
$
82

 
$
36

 
 
Gross Realized Losses
(5
)
 
(3
)
 
(14
)
 
(25
)
 
 
Net Realized Gains (Losses) on NDT Fund
$
24

 
$
8

 
$
68

 
$
11

 
 
 
 
 
 
 
 
 
 
 

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
The cost of these securities was determined on the basis of specific identification.
Gross realized gains and gross realized losses disclosed in the preceding table were recognized in Other Income and Other Deductions, respectively, in PSEG’s and Power’s Condensed Consolidated Statements of Operations. Net unrealized gains of $172 million (after-tax) were recognized in Accumulated Other Comprehensive Loss on PSEG’s and Power’s Condensed Consolidated Balance Sheets as of September 30, 2017.

The NDT available-for-sale debt securities held as of September 30, 2017 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
37

 
 
1 - 5 years
 
236

 
 
6 - 10 years
 
230

 
 
11 - 15 years
 
62

 
 
16 - 20 years
 
67

 
 
Over 20 years
 
293

 
 
Total NDT Available-for-Sale Debt Securities
$
925

 
 
 
 
 
 

Power periodically assesses individual securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For equity securities, management considers the ability and intent to hold for a reasonable time to permit recovery in addition to the severity and duration of the loss. For fixed income securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). For the nine months ended September 30, 2017, Other-Than-Temporary Impairments (OTTI) of$9 million were recognized on securities in the NDT Fund. Any subsequent recoveries in the value of these securities would be recognized in Accumulated Other Comprehensive Income (Loss) unless the securities are sold, in which case, any gain would be recognized in income. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.
Rabbi Trust
PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.”
PSEG classifies investments in the Rabbi Trust as available-for-sale. The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust.
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
$
22

 
$
1

 
$
—

 
$
23

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
Government
82

 
2

 
—

 
84

 
 
Corporate
118

 
3

 
(1
)
 
120

 
 
Total Debt Securities
200

 
5

 
(1
)
 
204

 
 
Other Securities
2

 
—

 
—

 
2

 
 
Total Rabbi Trust Available-for-Sale Securities
$
224

 
$
6

 
$
(1
)
 
$
229

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
$
11

 
$
11

 
$
—

 
$
22

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
Government
105

 
—

 
(2
)
 
103

 
 
Corporate
92

 
1

 
(2
)
 
91

 
 
Total Debt Securities
197

 
1

 
(4
)
 
194

 
 
Other Securities
1

 
—

 
—

 
1

 
 
Total Rabbi Trust Available-for-Sale Securities
$
209

 
$
12

 
$
(4
)
 
$
217

 
 
 
 
 
 
 
 
 
 
 

The amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
September 30,
2017
 
December 31,
2016
 
 
 
Millions
 
 
Accounts Receivable
$
2

 
$
5

 
 
Accounts Payable
$
—

 
$
3

 
 
 
 
 
 
 

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than 12 months and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
As of December 31, 2016
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Equity Securities (A)
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
25

 
—

 
3

 
—

 
60

 
(2
)
 
1

 
—

 
 
Corporate (C)
14

 
(1
)
 
4

 
—

 
46

 
(2
)
 
3

 
—

 
 
Total Debt Securities
39

 
(1
)
 
7

 
—

 
106

 
(4
)
 
4

 
—

 
 
Rabbi Trust Available-for-Sale Securities
$
39

 
$
(1
)
 
$
7

 
$
—

 
$
106

 
$
(4
)
 
$
4

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Equity Securities—Investments in marketable equity securities within the Rabbi Trust Fund are through a mutual fund which invests primarily in common stocks within a broad range of industries and sectors.
(B)
Debt Securities (Government)—Unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of September 30, 2017.
(C)
Debt Securities (Corporate)—PSEG’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of September 30, 2017.
The proceeds from the sales of and the net realized gains (losses) on securities in the Rabbi Trust Fund were:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2017
 
2016
 
2017
 
2016
 
 
 
Millions
 
 
Proceeds from Rabbi Trust Sales (A)
$
24

 
$
20

 
$
168

 
$
81

 
 
Net Realized Gains (Losses) on Rabbi Trust:
 
 
 
 
 
 
 
 
 
Gross Realized Gains
$
—

 
$
2

 
$
17

 
$
5

 
 
Gross Realized Losses
(1
)
 
(2
)
 
(5
)
 
(4
)
 
 
Net Realized Gains (Losses) on Rabbi Trust
$
(1
)
 
$
—

 
$
12

 
$
1

 
 
 
 
 
 
 
 
 
 
 

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
The cost of these securities was determined on the basis of specific identification.
Gross realized gains and gross realized losses disclosed in the preceding table were recognized in Other Income and Other Deductions, respectively, in the Condensed Consolidated Statements of Operations. Net unrealized gains of $3 million (after-tax) were recognized in Accumulated Other Comprehensive Loss on the Condensed Consolidated Balance Sheets as of September 30, 2017.
The Rabbi Trust available-for-sale debt securities held as of September 30, 2017 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
—

 
 
1 - 5 years
 
40

 
 
6 - 10 years
 
27

 
 
11 - 15 years
 
6

 
 
16 - 20 years
 
19

 
 
Over 20 years
 
112

 
 
Total Rabbi Trust Available-for-Sale Debt Securities
$
204

 
 
 
 
 
 

PSEG periodically assesses individual securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For equity securities, the Rabbi Trust is invested in an indexed mutual fund. Due to the commingled nature of this fund, PSEG does not have the ability to hold these securities until expected recovery. As a result, any declines in fair market value below cost are recorded as a charge to earnings. For fixed income securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). For the nine months ended September 30, 2017, no OTTIs were recognized on securities in the Rabbi Trust. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.
The fair value of the Rabbi Trust related to PSEG, PSE&G and Power are detailed as follows:
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
September 30,
2017
 
December 31,
2016
 
 
 
Millions
 
 
PSE&G
$
46

 
$
43

 
 
Power
57

 
53

 
 
Other
126

 
121

 
 
Total Rabbi Trust Available-for-Sale Securities
$
229

 
$
217