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Fair Value (Tables)

12 Months Ended

Dec. 31, 2018

Significant unobservable inputs, recurring

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



Type of Derivative	Fair Value			Unobservable Input	Amount or Range (Weighted Average)
Interest rate	$	(140	)	Subsidiaries’ credit spreads	1.8% - 5.3% (3.7%)
Foreign currency:
Argentine peso	199			Argentine peso to U.S. dollar currency exchange rate after one year	52.7 - 142.6 (96.1)
Commodity:
Other	4
Total	$	63

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, 2018 and 2017 presented net by type of derivative. 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 (in millions).



Year Ended December 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	22			(14		)	(1		)	7
Included in other comprehensive income — derivative activity	(8		)	—			—			(8		)
Included in regulatory (assets) liabilities	—			—			5			5
Settlements	14			(27		)	(4		)	(17		)
Transfers of assets/(liabilities), net into Level 3	(8		)	—			—			(8		)
Transfers of (assets)/liabilities, net out of Level 3	(9		)	—			—			(9		)
Balance at December 31	$	(140	)	$	199		$	4		$	63
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	$	29		$	(41	)	$	(1	)	$	(13	)



Year Ended December 31, 2017	Interest Rate			Foreign Currency			Commodity			Total
Balance at January 1	$	(179	)	$	255		$	5		$	81
Total realized and unrealized gains (losses):
Included in earnings	(1		)	21			1			21
Included in other comprehensive income — derivative activity	(23		)	—			—			(23		)
Included in regulatory (assets) liabilities	—			—			10			10
Settlements	36			(36		)	(12		)	(12		)
Transfers of assets/(liabilities), net into Level 3	(4		)	—			—			(4		)
Transfers of (assets)/liabilities, net out of Level 3	20			—			—			20
Balance at December 31	$	(151	)	$	240		$	4		$	93
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	$	7		$	(15	)	$	1		$	(7	)

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

The following table presents 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 (in millions).



		December 31, 2018
		Carrying Amount		Fair Value
		Carrying Amount		Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent ⁽¹⁾	$	100	$	209	$	—	$	—	$	209
Liabilities:	Non-recourse debt	15,645		16,225		—		13,524		2,701
	Recourse debt	3,655		3,621		—		3,621		—



		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		—

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⁽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 Consolidated Balance Sheets. The fair value and carrying amount of these receivables exclude VAT of $16 million and $31 million as of December 31, 2018 and 2017, 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, 2018 (in millions, except range amounts):



December 31, 2018	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Long-lived assets held and used:
Nejapa	5		Discounted cash flow	Annual revenue growth	-70% to -1% (-15%)
				Pre-tax operating margin	37% to 82% (59%)
				Weighted-average cost of capital	12	%
Equity method invesments:
Guacolda	209		Discounted cash flow	Annual dividend growth	-70% to 467% (48%)
				Weighted-average cost of equity	10	%
Total	$	214

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, 2018	Measurement Date	Carrying Amount₍₁₎		Fair Value						Pre-tax Loss
Assets	Measurement Date	Carrying Amount₍₁₎		Level 1		Level 2		Level 3		Pre-tax Loss
Dispositions and held-for-sale businesses:
Shady Point	12/31/2018	$	211	$	—	$	—	$	30	$	157
Long-lived assets held and used:⁽²⁾
Nejapa	12/31/2018	42		—		—		5		37
Equity method investments:
Guacolda	10/01/2018	354		—		—		209		144
Elsta	09/30/2018	19		—		16		—		3



Year Ended December 31, 2017	Measurement Date	Carrying Amount₍₁₎		Fair Value						Pre-tax Loss
Assets	Measurement Date	Carrying Amount₍₁₎		Level 1		Level 2		Level 3		Pre-tax Loss
Long-lived assets held and used:⁽²⁾
Laurel Mountain	12/31/2017	$	154	$	—	$	—	$	33	$	121
Kilroot	12/31/2017	69		—		—		20		37
DPL	02/28/2017	77		—		—		11		66
Other	Various	18		—		—		—		18
Dispositions and held-for-sale businesses:
DPL Peaker Assets	12/31/2017	346		—		237		—		109
Kazakhstan Hydroelectric⁽³⁾	06/30/2017	190		—		92		—		92
Kazakhstan CHPs	03/31/2017	171		—		29		—		94

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


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

⁽³⁾

Per the Company's policy, pre-tax loss is limited to the impairment of long-lived assets. Any additional loss will be recognized on completion of the sale. Upon disposal of Kazakhstan HPPs, the Company incurred an additional pre-tax loss on disposal of $33 million. See Note 20—Asset Impairment Expense and Note 23—Held-for-Sale and Dispositions for further information.

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 were 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, 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	$	—	$	5	$	—	$	5	$	—	$	207	$	—	$	207
Certificates of deposit	—		243		—		243		—		153		—		153
Total debt securities	—		248		—		248		—		360		—		360
EQUITY SECURITIES:
Mutual funds	19		49		—		68		20		52		—		72
Total equity securities	19		49		—		68		20		52		—		72
DERIVATIVES:
Interest rate derivatives	—		28		1		29		—		15		—		15
Cross-currency derivatives	—		6		—		6		—		29		—		29
Foreign currency derivatives	—		18		199		217		—		29		240		269
Commodity derivatives	—		6		4		10		—		30		5		35
Total derivatives — assets	—		58		204		262		—		103		245		348
TOTAL ASSETS	$	19	$	355	$	204	$	578	$	20	$	515	$	245	$	780
Liabilities
DERIVATIVES:
Interest rate derivatives	$	—	$	67	$	141	$	208	$	—	$	111	$	151	$	262
Cross-currency derivatives	—		5		—		5		—		3		—		3
Foreign currency derivatives	—		41		—		41		—		30		—		30
Commodity derivatives	—		3		—		3		—		19		1		20
Total derivatives — liabilities	—		116		141		257		—		163		152		315
TOTAL LIABILITIES	$	—	$	116	$	141	$	257	$	—	$	163	$	152	$	315

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,	2018		2017		2016
Gross proceeds from sale of AFS securities ⁽¹⁾	$	1,403	$	1,398	$	1,726

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⁽¹⁾

Proceeds include $119 million of non-cash proceeds from non-convertible debentures at Guaimbê Solar Complex. See Note 24—Acquisitions for further information.