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Fair Value (Tables)

12 Months Ended

Dec. 31, 2019

Significant unobservable inputs, recurring

The following table summarizes the significant unobservable inputs used for the Level 3 derivative assets (liabilities) as of December 31, 2019 (in millions, except range amounts):



Type of Derivative	Fair Value			Unobservable Input	Amount or Range (Weighted Average)
Interest rate	$	(184	)	Subsidiaries’ credit spreads	0.8% - 4.94% (3.7%)
Cross-currency	(11		)	Subsidiaries’ credit spreads	2.1	%
Foreign currency:
Argentine peso	94			Argentine peso to USD currency exchange rate after one year	61 - 495 (250)
Commodity:
Other	(1		)
Total	$	(102	)

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, 2019 and 2018 (presented net by type of derivative in millions). Transfers between Level 3 and Level 2 principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.



Year Ended December 31, 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		)	—			(65		)	(2		)	(68		)
Included in other comprehensive income — derivative activity	(97		)	—			(17		)	—			(114		)
Included in regulatory (assets) liabilities	—			—			—			(5		)	(5		)
Settlements	8			—			(23		)	2			(13		)
Transfers of assets/(liabilities), net into Level 3	(2		)	(11		)	—			—			(13		)
Transfers of (assets)/liabilities, net out of Level 3	48			—			—			—			48
Balance at December 31	$	(184	)	$	(11	)	$	94		$	(1	)	$	(102	)
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	$	—		$	—		$	(67	)	$	(2	)	$	(69	)



Year Ended December 31, 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	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	)

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 Consolidated Balance Sheets as of the periods indicated, but for which fair value is disclosed:



		December 31, 2019
		Carrying Amount		Fair Value
		Carrying Amount		Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent ⁽¹⁾	$	98	$	145	$	—	$	—	$	145
Liabilities:	Non-recourse debt	16,712		16,579		—		15,804		775
	Recourse debt	3,396		3,529		—		3,529		—



		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		—

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⁽¹⁾

These amounts primarily relate to amounts due from CAMMESA, the administrator of the wholesale electricity market in Argentina, and amounts impacted by the Stabilization Fund enacted by the Chilean government and are included in Other noncurrent assets in the accompanying Consolidated Balance Sheets. The fair value and carrying amount of the Argentina receivables exclude VAT of $11 million and $16 million as of December 31, 2019 and 2018, 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, 2019 (in millions, except range amounts):



December 31, 2019	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Long-lived assets held and used:
Hawaii	$	103	Discounted cash flow	Annual revenue growth	-11% to 1% (-6%)
				Pre-tax operating margin	5% to 35% (29%)
				Weighted-average cost of capital	5% to 15%
Equity method investments:
OPGC	212		Expected present value	Annual dividend growth	-27% to 41% (2%)
				Weighted-average cost of equity	9	%
Total	$	315

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):



Year Ended December 31, 2019	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⁾
Hawaii	12/31/2019	163	—	—	103	60
Equity method investments:
OPGC	12/31/2019	304	—	—	212	92
Dispositions and held-for-sale businesses: ⁽³⁾
Kilroot and Ballylumford	04/12/2019	232	—	118	—	115



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:⁽³⁾
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

_____________________________


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


⁽²⁾	See Note 22—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. See Note 22—Asset Impairment Expense and Note 25—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 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, 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	—		326		—		326		—		243		—		243
Total debt securities	—		326		—		326		—		248		—		248
EQUITY SECURITIES:
Mutual funds	22		61		—		83		19		49		—		68
Total equity securities	22		61		—		83		19		49		—		68
DERIVATIVES:
Interest rate derivatives	—		31		—		31		—		28		1		29
Cross-currency derivatives	—		—		—		—		—		6		—		6
Foreign currency derivatives	—		17		93		110		—		18		199		217
Commodity derivatives	—		28		2		30		—		6		4		10
Total derivatives — assets	—		76		95		171		—		58		204		262
TOTAL ASSETS	$	22	$	463	$	95	$	580	$	19	$	355	$	204	$	578
Liabilities
DERIVATIVES:
Interest rate derivatives	$	—	$	144	$	184	$	328	$	—	$	67	$	141	$	208
Cross-currency derivatives	—		10		11		21		—		5		—		5
Foreign currency derivatives	—		44		—		44		—		41		—		41
Commodity derivatives	—		29		2		31		—		3		—		3
Total derivatives — liabilities	—		227		197		424		—		116		141		257
TOTAL LIABILITIES	$	—	$	227	$	197	$	424	$	—	$	116	$	141	$	257

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,	2019		2018		2017
Gross proceeds from sale of AFS securities ⁽¹⁾	$	663	$	1,403	$	1,398

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⁽¹⁾

Proceeds in the year ended December 31, 2018 include $119 million of non-cash proceeds from non-convertible debentures at Guaimbê Solar Complex. See Note 26—Acquisitions for further information.