Fair Value (Tables)

6 Months Ended

Jun. 30, 2019

Marketable Securities [Table Text Block]

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Gross proceeds from sale of AFS securities	$	176	$	267	$	324	$	414

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:



	June 30, 2019								December 31, 2018
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:
Unsecured debentures	$	—	$	1	$	—	$	1	$	—	$	5	$	—	$	5
Certificates of deposit	—		334		—		334		—		243		—		243
Total debt securities	—		335		—		335		—		248		—		248
EQUITY SECURITIES:
Mutual funds	21		64		—		85		19		49		—		68
Total equity securities	21		64		—		85		19		49		—		68
DERIVATIVES:
Interest rate derivatives	—		—		—		—		—		28		1		29
Cross-currency derivatives	—		11		—		11		—		6		—		6
Foreign currency derivatives	—		21		192		213		—		18		199		217
Commodity derivatives	—		24		4		28		—		6		4		10
Total derivatives — assets	—		56		196		252		—		58		204		262
TOTAL ASSETS	$	21	$	455	$	196	$	672	$	19	$	355	$	204	$	578
Liabilities
DERIVATIVES:
Interest rate derivatives	$	—	$	159	$	243	$	402	$	—	$	67	$	141	$	208
Cross-currency derivatives	—		3		—		3		—		5		—		5
Foreign currency derivatives	—		29		—		29		—		41		—		41
Commodity derivatives	—		24		—		24		—		3		—		3
Total derivatives — liabilities	—		215		243		458		—		116		141		257
TOTAL LIABILITIES	$	—	$	215	$	243	$	458	$	—	$	116	$	141	$	257

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 six months ended June 30, 2019 and 2018 (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 June 30, 2019	Interest Rate			Foreign Currency			Commodity		Total
Balance at April 1	$	(182	)	$	194		$	2	$	14
Total realized and unrealized gains (losses):
Included in earnings	(1		)	(1		)	1		(1		)
Included in other comprehensive income — derivative activity	(75		)	—			—		(75		)
Included in regulatory (assets) liabilities	—			—			1		1
Settlements	2			(1		)	—		1
Transfers of assets/(liabilities), net into Level 3	(1		)	—			—		(1		)
Transfers of (assets)/liabilities, net out of Level 3	14			—			—		14
Balance at June 30	$	(243	)	$	192		$	4	$	(47	)
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	)	$	1	$	(1	)



Three Months Ended June 30, 2018	Interest Rate			Foreign Currency			Commodity			Total
Balance at April 1	$	(129	)	$	225		$	3		$	99
Total realized and unrealized gains (losses):
Included in earnings	13			3			—			16
Included in other comprehensive income — derivative activity	1			—			—			1
Included in regulatory (assets) liabilities	—			—			9			9
Settlements	4			(9		)	(2		)	(7		)
Balance at June 30	$	(111	)	$	219		$	10		$	118
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	$	15		$	(5	)	$	—		$	10



Six Months Ended June 30, 2019	Interest Rate			Foreign Currency			Commodity			Total
Balance at January 1	$	(140	)	$	199		$	4		$	63
Total realized and unrealized gains (losses):
Included in earnings	(1		)	(5		)	1			(5		)
Included in other comprehensive income — derivative activity	(88		)	—			—			(88		)
Included in regulatory (assets) liabilities	—			—			(1		)	(1		)
Settlements	4			(2		)	—			2
Transfers of assets/(liabilities), net into Level 3	(23		)	—			—			(23		)
Transfers of (assets)/liabilities, net out of Level 3	5			—			—			5
Balance at June 30	$	(243	)	$	192		$	4		$	(47	)
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	$	—		$	(6	)	$	—		$	(6	)

Derivative Assets, Significant unobservable inputs



Six Months Ended June 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	27			(3		)	1			25
Included in other comprehensive income — derivative activity	32			—			—			32
Included in regulatory (assets) liabilities	—			—			9			9
Settlements	10			(18		)	(4		)	(12		)
Transfers of assets/(liabilities), net into Level 3	(3		)	—			—			(3		)
Transfers of (assets)/liabilities, net out of Level 3	(26		)	—			—			(26		)
Balance at June 30	$	(111	)	$	219		$	10		$	118
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	$	31		$	(21	)	$	1		$	11

The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of June 30, 2019 (in millions, except range amounts):

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

s (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 June 30, 2019 and December 31, 2018, but for which fair value is disclosed:



		June 30, 2019
		Carrying Amount		Fair Value
		Carrying Amount		Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent ⁽¹⁾	$	76	$	176	$	—	$	—	$	176
Liabilities:	Non-recourse debt	15,840		15,896		—		14,751		1,145
	Recourse debt	3,920		4,060		—		4,060		—



		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		—

_____________________________

⁽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 $15 million and $16 million as of June 30, 2019 and December 31, 2018, respectively.