Fair Value (Tables)

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Gross proceeds from sale of AFS securities	$	193	$	713	$	517	$	1,127

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, 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	$	—	$	—	$	—	$	—	$	—	$	5	$	—	$	5
Certificates of deposit	—		265		—		265		—		243		—		243
Total debt securities	—		265		—		265		—		248		—		248
EQUITY SECURITIES:
Mutual funds	21		58		—		79		19		49		—		68
Total equity securities	21		58		—		79		19		49		—		68
DERIVATIVES:
Interest rate derivatives	—		6		—		6		—		28		1		29
Cross-currency derivatives	—		—		—		—		—		6		—		6
Foreign currency derivatives	—		28		113		141		—		18		199		217
Commodity derivatives	—		31		2		33		—		6		4		10
Total derivatives — assets	—		65		115		180		—		58		204		262
TOTAL ASSETS	$	21	$	388	$	115	$	524	$	19	$	355	$	204	$	578
Liabilities
DERIVATIVES:
Interest rate derivatives	$	—	$	266	$	233	$	499	$	—	$	67	$	141	$	208
Cross-currency derivatives	—		3		6		9		—		5		—		5
Foreign currency derivatives	—		34		—		34		—		41		—		41
Commodity derivatives	—		20		3		23		—		3		—		3
Total derivatives — liabilities	—		323		242		565		—		116		141		257
TOTAL LIABILITIES	$	—	$	323	$	242	$	565	$	—	$	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 nine months ended September 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 September 30, 2019	Interest Rate			Cross Currency			Foreign Currency			Commodity			Total
Balance at July 1	$	(243	)	$	—		$	192		$	4		$	(47	)
Total realized and unrealized gains (losses):
Included in earnings	—			—			(54		)	(2		)	(56		)
Included in other comprehensive income — derivative activity	(37		)	—			(10		)	—			(47		)
Included in regulatory (assets) liabilities				—			—			(2		)	(2		)
Settlements	2			—			(15		)	(1		)	(14		)
Transfers of assets/(liabilities), net into Level 3	—			(6		)	—			—			(6		)
Transfers of (assets)/liabilities, net out of Level 3	45			—			—			—			45
Balance at September 30	$	(233	)	$	(6	)	$	113		$	(1	)	$	(127	)
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	$	—		$	—		$	(62	)	$	(2	)	$	(64	)



Three Months Ended September 30, 2018	Interest Rate			Cross Currency		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 (assets) 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



Nine Months Ended September 30, 2019	Interest Rate			Cross Currency			Foreign Currency			Commodity			Total
Balance at January 1	$	(140	)	$	—		$	199		$	4		$	63
Total realized and unrealized gains (losses):
Included in earnings	(1		)	—			(52		)	(2		)	(55		)
Included in other comprehensive income — derivative activity	(113		)	—			(10		)	—			(123		)
Included in regulatory (assets) liabilities	—			—			—			(3		)	(3		)
Settlements	5			—			(24		)	—			(19		)
Transfers of assets/(liabilities), net into Level 3	(32		)	(6		)	—			—			(38		)
Transfers of (assets)/liabilities, net out of Level 3	48			—			—			—			48
Balance at September 30	$	(233	)	$	(6	)	$	113		$	(1	)	$	(127	)
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	$	—		$	—		$	(69	)	$	(2	)	$	(71	)

Derivative Assets, Significant unobservable inputs



Nine Months Ended September 30, 2018	Interest Rate			Cross Currency		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 (assets) 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

The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of September 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 September 30, 2019 and December 31, 2018, but for which fair value is disclosed:



		September 30, 2019
		Carrying Amount		Fair Value
		Carrying Amount		Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent ⁽¹⁾	$	62	$	128	$	—	$	—	$	128
Liabilities:	Non-recourse debt	16,205		16,334		—		14,402		1,932
	Recourse debt	3,561		3,692		—		3,692		—



		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 $11 million and $16 million as of September 30, 2019 and December 31, 2018, respectively.