XML 59 R37.htm IDEA: XBRL DOCUMENT

Fair Value (Tables)

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Gross proceeds from sale of AFS securities ⁽¹⁾	$	713	$	365	$	1,127	$	1,158

_____________________________


⁽¹⁾	Three and nine months ended September 30, 2018 include $119 million non-cash proceeds from non-convertible debentures at Guaimbê Solar Complex. See Note 18—Acquisitions for further information.

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:



	September 30, 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	$	—	$	60	$	—	$	60	$	—	$	207	$	—	$	207
Certificates of deposit	—		270		—		270		—		153		—		153
Total debt securities	—		330		—		330		—		360		—		360
EQUITY SECURITIES:
Mutual funds	21		45		—		66		20		52		—		72
Other equity securities	—		3		—		3		—		—		—		—
Total equity securities	21		48		—		69		20		52		—		72
DERIVATIVES:
Interest rate derivatives	—		65		5		70		—		15		—		15
Cross-currency derivatives	—		26		—		26		—		29		—		29
Foreign currency derivatives	—		22		221		243		—		29		240		269
Commodity derivatives	—		9		8		17		—		30		5		35
Total derivatives — assets	—		122		234		356		—		103		245		348
TOTAL ASSETS	$	21	$	500	$	234	$	755	$	20	$	515	$	245	$	780
Liabilities
DERIVATIVES:
Interest rate derivatives	$	—	$	60	$	101	$	161	$	—	$	111	$	151	$	262
Cross-currency derivatives	—		2		—		2		—		3		—		3
Foreign currency derivatives	—		54		—		54		—		30		—		30
Commodity derivatives	—		4		—		4		—		19		1		20
Total derivatives — liabilities	—		120		101		221		—		163		152		315
TOTAL LIABILITIES	$	—	$	120	$	101	$	221	$	—	$	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 and nine months ended September 30, 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 September 30, 2018	Interest Rate			Foreign Currency		Commodity			Total
Balance at July 1	$	(111	)	$	219	$	10		$	118
Total realized and unrealized gains (losses):
Included in other comprehensive income — derivative activity	12			—		—			12
Included in regulatory liabilities	—			—		(2		)	(2		)
Settlements	3			2		—			5
Balance at September 30	$	(96	)	$	221	$	8		$	133
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	$	1		$	2	$	—		$	3



Three Months Ended September 30, 2017	Interest Rate			Foreign Currency			Commodity			Total
Balance at July 1	$	(195	)	$	239		$	9		$	53
Total realized and unrealized gains (losses):
Included in earnings	(5		)	12			—			7
Included in other comprehensive income — derivative activity	(2		)	—			—			(2		)
Settlements	10			(9		)	(3		)	(2		)
Balance at September 30	$	(192	)	$	242		$	6		$	56
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	$	(1	)	$	3		$	—		$	2



Nine Months Ended September 30, 2018	Interest Rate			Foreign Currency			Commodity			Total
Balance at January 1	$	(151	)	$	240		$	4		$	93
Total realized and unrealized gains (losses):
Included in earnings	28			(3		)	1			26
Included in other comprehensive income — derivative activity	48			—			—			48
Included in regulatory liabilities	—			—			6			6
Settlements	12			(16		)	(3		)	(7		)
Transfers of assets/(liabilities), net into Level 3	1			—			—			1
Transfers of (assets)/liabilities, net out of Level 3	(34		)	—			—			(34		)
Balance at September 30	$	(96	)	$	221		$	8		$	133
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	$	32		$	(19	)	$	1		$	14

Derivative Assets, Significant unobservable inputs



Nine Months Ended September 30, 2017	Interest Rate			Foreign Currency			Commodity			Total
Balance at January 1	$	(179	)	$	255		$	5		$	81
Total realized and unrealized gains (losses):
Included in earnings	(5		)	12			(1		)	6
Included in other comprehensive income — derivative activity	(29		)	—			—			(29		)
Included in regulatory liabilities	—			—			10			10
Settlements	28			(25		)	(8		)	(5		)
Transfers of assets/(liabilities), net into Level 3	(7		)	—			—			(7		)
Balance at September 30	$	(192	)	$	242		$	6		$	56
Total 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	$	—		$	(12	)	$	—		$	(12	)

The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of September 30, 2018 (in millions, except range amounts):

Fair value hierarchy for nonrecurring measurements table

. The following table summarizes our major categories of assets 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
Nine months ended September 30, 2018	Measurement Date	Carrying Amount (1)		Level 1		Level 2		Level 3		Pretax Loss
Equity Method Investments
Elsta	09/30/2018	$	21	$	—	$	16	$	—	$	5
Long-lived assets held and used: ⁽²⁾
U.S. generation facility	09/30/2018	185		—		—		33		156



	Measurement Date	Carrying Amount (1)		Fair Value						Pretax Loss
Nine Months Ended September 30, 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 Hydroelectric	06/30/2017	190		—		92		—		92
Kazakhstan	03/31/2017	171		—		29		—		94

_____________________________


⁽¹⁾	Represents the carrying values at the dates of initial 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 and Dispositions for further informati

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 September 30, 2018 and December 31, 2017, but for which fair value is disclosed:



		September 30, 2018
		Carrying Amount		Fair Value
		Carrying Amount		Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent ⁽¹⁾	$	105	$	224	$	—	$	—	$	224
Liabilities:	Non-recourse debt	15,581		15,429		—		12,699		2,730
	Recourse debt	3,820		3,901		—		3,901		—



		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 $14 million and $31 million as of September 30, 2018 and December 31, 2017, respectivel