Fair Value (Tables)
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12 Months Ended |
Dec. 31, 2018 |
Fair Value Disclosures [Abstract] |
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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 |
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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 | ) |
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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 | | | | 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 |
| | — |
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| | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2017 | | | | Carrying Amount | | Fair Value | | | | 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.
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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 |
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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 | | | Level 1 | | Level 2 | | Level 3 | | 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 |
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| | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2017 | | Measurement Date | | Carrying Amount (1) | | Fair Value | | Pre-tax Loss | Assets | | | Level 1 | | Level 2 | | Level 3 | | 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. |
(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.
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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 |
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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.
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