Fair Value (Tables)

3 Months Ended

Mar. 31, 2023

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 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:


	March 31, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:

Certificates of deposit	$	—	$	778	$	—	$	778	$	—	$	698	$	—	$	698
Government debt securities	—		4		—		4		—		3		—		3
Total debt securities	—		782		—		782		—		701		—		701
EQUITY SECURITIES:
Mutual funds	40		—		—		40		38		—		—		38

Total equity securities	40		—		—		40		38		—		—		38
DERIVATIVES:
Interest rate derivatives	—		187		5		192		—		314		—		314
Cross-currency derivatives	—		—		—		—		—		—		—		—
Foreign currency derivatives	—		22		62		84		—		22		64		86
Commodity derivatives	—		238		8		246		—		232		13		245
Total derivatives — assets	—		447		75		522		—		568		77		645
TOTAL ASSETS	$	40	$	1,229	$	75	$	1,344	$	38	$	1,269	$	77	$	1,384
Liabilities
DERIVATIVES:
Interest rate derivatives	$	—	$	36	$	10	$	46	$	—	$	6	$	—	$	6
Cross-currency derivatives	—		50		—		50		—		42		—		42
Foreign currency derivatives	—		17		—		17		—		20		—		20
Commodity derivatives	—		255		77		332		—		346		60		406
Total derivatives — liabilities	—		358		87		445		—		414		60		474
TOTAL LIABILITIES	$	—	$	358	$	87	$	445	$	—	$	414	$	60	$	474

Marketable Securities [Table Text Block]

The following table presents gross proceeds from the sale of available-for-sale securities during the periods indicated (in millions):


	Three Months Ended March 31,
	2023		2022
Gross proceeds from sale of available-for-sale securities	$	369	$	197

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 months ended March 31, 2023 and 2022 (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.

Fair value schedule of Significant Unobservable Input Recurring

The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of March 31, 2023 (in millions, except range amounts):


Type of Derivative	Fair Value		Unobservable Input	Amount or Range (Weighted Average)
Interest rate	$	(5)	Subsidiary credit spread	0.5725% - 2.5% (1.6%)

Foreign currency:
Argentine peso	62		Argentine peso to U.S. dollar currency exchange rate after one year	405 - 1,059 (808)

Commodity:
CAISO Energy Swap	(76)		Forward energy prices per MWh after 2030	21 - 112.11 (63.35)
Other	7
Total	$	(12)

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). There were no material impairments during the three months ended March 31, 2022.


	Measurement Date	Carrying Amount (1)		Fair Value						Pre-tax Loss
Three Months Ended March 31, 2023				Level 1		Level 2		Level 3




Held-for-sale businesses: (2)
Jordan (3)	3/31/2023	$	179	$	—	$	170	$	—	$	14

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


		March 31, 2023
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	190	$	229	$	—	$	—	$	229
Liabilities:	Non-recourse debt	20,073		19,851		—		18,375		1,476
	Recourse debt	4,581		4,231		—		4,231		—


		December 31, 2022
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	255	$	294	$	—	$	—	$	294
Liabilities:	Non-recourse debt	19,429		18,527		—		17,089		1,438
	Recourse debt	3,894		3,505		—		3,505		—

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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 Funds enacted by the Chilean government, and are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets.