Fair Value (Tables)

3 Months Ended

Mar. 31, 2018

Marketable Securities [Table Text Block]

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



	Three Months Ended March 31,
	2018		2017
Gross proceeds from sale of AFS securities	$	147	$	429

Fair value hierarchy for recurring measurements table

The following table presents, by level within the fair value hierarchy, 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 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:



	March 31, 2018								December 31, 2017
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:
Unsecured debentures	$	—	$	291	$	—	$	291	$	—	$	207	$	—	$	207
Certificates of deposit	—		260		—		260		—		153		—		153
Total debt securities	—		551		—		551		—		360		—		360
EQUITY SECURITIES:
Mutual funds	20		52		—		72		20		52		—		72
Other equity securities	—		3		—		3		—		—		—		—
Total equity securities	20		55		—		75		20		52		—		72
DERIVATIVES:
Interest rate derivatives	—		42		—		42		—		15		—		15
Cross-currency derivatives	—		45		—		45		—		29		—		29
Foreign currency derivatives	—		37		225		262		—		29		240		269
Commodity derivatives	—		8		3		11		—		30		5		35
Total derivatives — assets	—		132		228		360		—		103		245		348
TOTAL ASSETS	$	20	$	738	$	228	$	986	$	20	$	515	$	245	$	780
Liabilities
DERIVATIVES:
Interest rate derivatives	$	—	$	81	$	129	$	210	$	—	$	111	$	151	$	262
Cross-currency derivatives	—		1		—		1		—		3		—		3
Foreign currency derivatives	—		41		—		41		—		30		—		30
Commodity derivatives	—		1		—		1		—		19		1		20
Total derivatives — liabilities	—		124		129		253		—		163		152		315
TOTAL LIABILITIES	$	—	$	124	$	129	$	253	$	—	$	163	$	152	$	315

Fair Value, Net Derivative Assets (Liabilities) measured on a recurring basis, Unobservable Input Reconciliation 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 three months ended March 31, 2018 and 2017 (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.



Three Months Ended March 31, 2018	Interest Rate			Foreign Currency			Commodity			Total
Balance at January 1	$	(151	)	$	240		$	4		$	93
Total realized and unrealized gains (losses):
Included in earnings	14			(6		)	1			9
Included in other comprehensive income — derivative activity	27			—			—			27
Settlements	6			(9		)	(2		)	(5		)
Transfers of liabilities into Level 3	(8		)	—			—			(8		)
Transfers of liabilities out of Level 3	(17		)	—			—			(17		)
Balance at March 31	$	(129	)	$	225		$	3		$	99
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	$	16		$	(15	)	$	1		$	2



Three Months Ended March 31, 2017	Interest Rate			Foreign Currency			Commodity			Total
Balance at January 1	$	(179	)	$	255		$	5		$	81
Total realized and unrealized losses:
Included in earnings	—			(16		)	—			(16		)
Included in other comprehensive income — derivative activity	(12		)	—			—			(12		)
Settlements	10			(8		)	(3		)	(1		)
Transfers of liabilities into Level 3	(4		)	—			—			(4		)
Transfers of assets out of Level 3	2			—			—			2
Balance at March 31	$	(183	)	$	231		$	2		$	50
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	$	2		$	(24	)	$	—		$	(22	)

Derivative Assets, Significant unobservable inputs

The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of March 31, 2018 (in millions, except range amounts):



Type of Derivative	Fair Value			Unobservable Input	Amount or Range (Weighted Average)
Interest rate	$	(129	)	Subsidiaries’ credit spreads	2.38% to 4.38% (3.54%)
Foreign currency:
Argentine Peso	225			Argentine Peso to USD currency exchange rate after one year	24.33 to 56.28 (38.75)
Commodity:
Other	3
Total	$	99

Fair value hierarchy for nonrecurring measurements table

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



	Measurement Date	Carrying Amount (1)		Fair Value						Pretax Loss
Three Months Ended March 31, 2017	Measurement Date	Carrying Amount (1)		Level 1		Level 2		Level 3		Pretax Loss
Long-lived assets held and used: ⁽²⁾
DPL	02/28/2017	$	77	$	—	$	—	$	11	$	66
Other	02/28/2017	15		—		—		7		8
Held-for-sale businesses: ⁽³⁾
Kazakhstan	03/31/2017	171		—		29		—		94

_____________________________


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


⁽²⁾	See Note 14—Asset Impairment Expense for further information.


⁽³⁾	Per the Company’s policy, pretax loss is limited to the impairment of long-lived assets. Any additional loss will be recognized on completion of the sale. See Note 17—Held-for-Sale Businesses and Dispositions for further information

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 Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017, but for which fair value is disclosed:



		March 31, 2018
		Carrying Amount		Fair Value
		Carrying Amount		Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent ⁽¹⁾	$	156	$	295	$	—	$	—	$	295
Liabilities:	Non-recourse debt	15,626		16,006		—		14,250		1,756
	Recourse debt	4,065		4,173		—		4,173		—



		December 31, 2017
		Carrying Amount		Fair Value
		Carrying Amount		Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent ⁽¹⁾	$	163	$	217	$	—	$	6	$	211
Liabilities:	Non-recourse debt	15,340		15,890		—		13,350		2,540
	Recourse debt	4,630		4,920		—		4,920		—

_____________________________


⁽¹⁾	These amounts primarily 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 Condensed Consolidated Balance Sheets. The fair value and carrying amount of these receivables exclude VAT of $30 million and $31 million as of March 31, 2018 and December 31, 2017, respectively.