Fair Value (Tables)

12 Months Ended

Dec. 31, 2016

Significant unobservable inputs, recurring

The following table summarizes the significant unobservable inputs used for the Level 3 derivative assets (liabilities) as of December 31, 2016 (in millions, except range amounts):



Type of Derivative	Fair Value			Unobservable Input	Amount or Range (Weighted Average)
Interest rate	$	(179	)	Subsidiaries’ credit spreads	2.1% - 4.4% (4.3%)
Foreign currency:
Argentine Peso	255			Argentine Peso to U.S. Dollar currency exchange rate after one year	19.9 - 33.4 (26.4)
Commodity:
Other	5
Total	$	81

Derivatives Level 3 Rollforward Table

The following tables present a reconciliation of net derivative assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2016 and 2015 (presented net by type of derivative in millions). Transfers between Level 3 and Level 2 are determined as of the end of the reporting period and principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.



Year Ended December 31, 2016	Interest Rate			Foreign Currency			Commodity			Total
Balance at January 1	$	(304	)	$	277		$	3		$	(24	)
Total realized and unrealized gains (losses):
Included in earnings	—			31			2			33
Included in other comprehensive income — derivative activity	(36		)	6			—			(30		)
Included in other comprehensive income — foreign currency translation activity	3			(52		)	—			(49		)
Included in regulatory (assets) liabilities	—			—			11			11
Settlements	72			(22		)	(11		)	39
Transfers of liabilities into Level 3	(32		)	—			—			(32		)
Transfers of liabilities out of Level 3	118			15			—			133
Balance at December 31	$	(179	)	$	255		$	5		$	81
Total gains for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	6		$	16		$	2		$	24



Year Ended December 31, 2015	Interest Rate			Foreign Currency			Commodity			Total
Balance at January 1	$	(210	)	$	209		$	6		$	5
Total realized and unrealized gains (losses):
Included in earnings	(1		)	198			(1		)	196
Included in other comprehensive income — derivative activity	(31		)	—			—			(31		)
Included in other comprehensive income — foreign currency translation activity	9			(103		)	—			(94		)
Included in regulatory (assets) liabilities	—			—			(18		)	(18		)
Settlements	24			(7		)	16			33
Transfers of liabilities into Level 3	(95		)	(1		)	—			(96		)
Transfers of assets out of Level 3	—			(19		)	—			(19		)
Balance at December 31	$	(304	)	$	277		$	3		$	(24	)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period	$	—		$	187		$	(1	)	$	186

Financial instruments not measured at fair value in the condensed consolidated balance sheets

The following table presents (in millions) the carrying amount, fair value and fair value hierarchy of the Company's financial assets and liabilities that are not measured at fair value in the Consolidated Balance Sheets as of the periods indicated, but for which fair value is disclosed.



		December 31, 2016
		Carrying Amount		Fair Value
		Carrying Amount		Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent ⁽¹⁾	$	264	$	350	$	—	$	20	$	330
Liabilities:	Non-recourse debt	15,792		16,188		—		15,120		1,068
	Recourse debt	4,671		4,899		—		4,899		—



		December 31, 2015
		Carrying Amount		Fair Value
		Carrying Amount		Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent ⁽¹⁾	$	238	$	310	$	—	$	20	$	290
Liabilities:	Non-recourse debt	15,115		15,592		—		13,325		2,267
	Recourse debt	4,966		4,696		—		4,696		—

_____________________________


⁽¹⁾	These accounts receivable principally relate to amounts due from CAMMESA, the administrator of the wholesale electricity market in Argentina, and are included in Other noncurrent assets in the accompanying Consolidated Balance Sheets. The fair value and carrying amount of these receivables exclude VAT of $24 million and $27 million as of December 31, 2016 and 2015, respectively.

Significant unobservable inputs, nonrecurring

The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets held and used measured on a nonrecurring basis during the year ended December 31, 2016 (in millions, except range amounts):



December 31, 2016	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Long-lived assets held and used:
DPL ⁽¹⁾	$	103	Discounted cash flow	Annual revenue growth	-13% to -1% (-6%)
				Annual pretax operating margin	-42% to 3% (-16%)
				Weighted-average cost of capital	7% to 10%
Buffalo Gap I	36		Discounted cash flow	Annual revenue growth	-20% to 9% (-14%)
				Annual pretax operating margin	-40% to 42% (29%)
				Weighted-average cost of capital	9%
DPL ⁽¹⁾	89		Discounted cash flow	Annual revenue growth	-11% to 13% (1%)
				Annual pretax operating margin	-50% to 60% (5%)
				Weighted-average cost of capital	7% to 12%
Buffalo Gap II	92		Discounted cash flow	Annual revenue growth	-17% to 21% (20%)
				Annual pretax operating margin	-166% to 48% (18%)
				Weighted-average cost of capital	9%
Total	$	320

_____________________________


⁽¹⁾	See Note 20—Asset Impairment Expense for further discussion of each DPL impairment.

Fair value hierarchy for nonrecurring measurements table

The following table summarizes major categories of assets and liabilities measured at fair value on a nonrecurring basis during the period and their level within the fair value hierarchy (in millions):



Year Ended December 31, 2016	Measurement Date	Carrying Amount₍₁₎		Fair Value						Pretax Loss
Assets	Measurement Date	Carrying Amount₍₁₎		Level 1		Level 2		Level 3		Pretax Loss
Long-lived assets held and used:⁽²⁾
DPL	12/31/2016	$	787	$	—	$	60	$	103	$	624
Buffalo Gap I	08/31/2016	113		—		—		36		77
DPL	06/30/2016	324		—		—		89		235
Buffalo Gap II	03/31/2016	251		—		—		92		159
Discontinued operations:⁽³⁾
Sul	06/30/2016	1,581		—		470		—		783



Year Ended December 31, 2015	Measurement Date	Carrying Amount₍₁₎		Fair Value						Pretax Loss
Assets	Measurement Date	Carrying Amount₍₁₎		Level 1		Level 2		Level 3		Pretax Loss
Long-lived assets held and used:⁽²⁾
Buffalo Gap III	09/30/2015	$	234	$	—	$	—	$	118	$	116
Kilroot	08/28/2015	191		—		—		70		121
UK Wind	06/30/2015	38		—		1		—		37
Other	Various	32		—		21		—		11
Equity method investments:⁽⁴⁾
Solar Spain	02/09/2015	29		—		—		29		—
Goodwill:⁽⁵⁾
DP&L	10/01/2015	317		—		—		—		317

_____________________________


⁽¹⁾	Represents the carrying values at the dates of measurement, before fair value adjustment.


⁽²⁾	See Note 20—Asset Impairment Expense for further information.


⁽³⁾	Per the Company's policy, pre-tax loss was limited to the impairment of long-lived assets. Upon disposal of AES Sul, we incurred an additional pre-tax loss on sale of $602 million. See Note 22—Discontinued Operations for further information.


⁽⁴⁾	See Note 7—Investments In and Advances to Affiliates for further information.


⁽⁵⁾	See Note 9—Goodwill and Other Intangible Assets for further information.

The foll

Fair value hierarchy for recurring measurements table

The following table presents, by level within the fair value hierarchy, as described in Note 1—General and Summary of Significant Accounting Policies, the Company's financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated (in millions). For the Company's investments in marketable debt and equity securities, the security classes presented are determined based on the nature and risk of the security and are consistent with how the Company manages, monitors and measures its marketable securities:



	December 31, 2016								December 31, 2015
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
AVAILABLE FOR SALE:
Debt securities:
Unsecured debentures	$	—	$	360	$	—	$	360	$	—	$	318	$	—	$	318
Certificates of deposit	—		372		—		372		—		129		—		129
Government debt securities	—		9		—		9		—		28		—		28
Subtotal	—		741		—		741		—		475		—		475
Equity securities:
Mutual funds	—		49		—		49		—		15		—		15
Subtotal	—		49		—		49		—		15		—		15
Total available for sale	—		790		—		790		—		490		—		490
TRADING:
Equity securities:
Mutual funds	16		—		—		16		15		—		—		15
Total trading	16		—		—		16		15		—		—		15
DERIVATIVES:
Interest rate derivatives	—		18		—		18		—		—		—		—
Cross currency derivatives	—		4		—		4		—		—		—		—
Foreign currency derivatives	—		54		255		309		—		35		292		327
Commodity derivatives	—		38		7		45		—		41		7		48
Total derivatives — assets	—		114		262		376		—		76		299		375
TOTAL ASSETS	$	16	$	904	$	262	$	1,182	$	15	$	566	$	299	$	880
Liabilities
DERIVATIVES:
Interest rate derivatives	$	—	$	121	$	179	$	300	$	—	$	54	$	304	$	358
Cross currency derivatives	—		18		—		18		—		43		—		43
Foreign currency derivatives	—		64		—		64		—		41		15		56
Commodity derivatives	—		40		2		42		—		29		4		33
Total derivatives — liabilities	—		243		181		424		—		167		323		490
TOTAL LIABILITIES	$	—	$	243	$	181	$	424	$	—	$	167	$	323	$	490

Available-for-sale Securities [Table Text Block]

The following table presents gross proceeds from sale of AFS securities for the periods indicated (in millions):



Year Ended December 31,	2016		2015		2014
Gross proceeds from sales of AFS securities	$	4,335	$	4,177	$	3,829

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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