XML 62 R38.htm IDEA: XBRL DOCUMENT v3.23.3
Fair Value (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
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:
 September 30, 2023December 31, 2022
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
DEBT SECURITIES:
Available-for-sale:
Certificates of deposit$— $493 $— $493 $— $698 $— $698 
Government debt securities— — — — — 3 — 3 
Total debt securities— 493 — 493 — 701 — 701 
EQUITY SECURITIES:
Mutual funds43 — — 43 38 — — 38 
Total equity securities43 7 — 50 38 — — 38 
DERIVATIVES:
Interest rate derivatives— 478 — 478 — 314 — 314 
Foreign currency derivatives— 22 46 68 — 22 64 86 
Commodity derivatives— 137 4 141 — 232 13 245 
Total derivatives — assets— 637 50 687 — 568 77 645 
TOTAL ASSETS$43 $1,137 $50 $1,230 $38 $1,269 $77 $1,384 
Liabilities
Contingent consideration$— $— $267 $267 $— $— $48 $48 
DERIVATIVES:
Interest rate derivatives— — — — — 6 — 6 
Cross-currency derivatives— 54 — 54 — 42 — 42 
Foreign currency derivatives— 26 — 26 — 20 — 20 
Commodity derivatives— 127 80 207 — 346 60 406 
Total derivatives — liabilities— 207 80 287 — 414 60 474 
TOTAL LIABILITIES$— $207 $347 $554 $— $414 $108 $522 
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 September 30,Nine Months Ended September 30,
2023202220232022
Gross proceeds from sale of available-for-sale securities$308 $318 $1,047 $665 
Fair Value, Net Derivative Assets (Liabilities) measured on a recurring basis, Unobservable Input Reconciliation Table The following tables present a reconciliation of 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, 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.
Derivative Assets and Liabilities
Three Months Ended September 30, 2023Interest RateForeign CurrencyCommodityContingent ConsiderationTotal
Balance at July 1, 2023
$(1)$63 $(78)$(274)$(290)
Total realized and unrealized gains (losses):
Included in earnings— (6)(3)(1)(10)
Included in other comprehensive income (loss) — derivative activity5 (2)7 — 10 
Acquisitions— — — 3 3 
Settlements— (9)(2)5 (6)
Transfers of assets, net out of Level 3
(4)— — — (4)
Balance at September 30, 2023$— $46 $(76)$(267)$(297)
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
$— $(13)$(3)$(1)$(17)
Derivative Assets and Liabilities
Three Months Ended September 30, 2022Interest RateForeign CurrencyCommodityContingent ConsiderationTotal
Balance at July 1, 2022
$1 $50 $37 $(80)$8 
Total realized and unrealized gains (losses):
Included in earnings1 22 (1)4 26 
Included in other comprehensive income (loss) — derivative activity(1)7 (14)— (8)
Included in other comprehensive income (loss) — foreign currency translation activity— — — 1 1 
Included in regulatory (assets) liabilities— — (3)— (3)
Settlements— (9)— 16 7 
Transfers of liabilities, net into Level 3
— — (2)— (2)
Transfers of assets, net out of Level 3
(2)— (15)— (17)
Balance at September 30, 2022$(1)$70 $2 $(59)$12 
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period$— $14 $(1)$4 $17 
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 September 30, 2023 (in millions, except range amounts):
Type of DerivativeFair ValueUnobservable InputAmount or Range (Weighted Average)
Foreign currency:
Argentine peso$46 Argentine peso to U.S. dollar currency exchange rate after one year
860 to 1,500 (1,222)
Commodity:
CAISO Energy Swap(79)Forward energy prices per MWh after 2030
$12 to $96 ($52)
Other3 
Total$(30)
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]
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 nine months ended September 30, 2023 (in millions, except range amounts):
Fair ValueValuation TechniqueUnobservable InputRange (Weighted Average)
Long-lived asset groups held and used:
TEP$94 Discounted cash flowAnnual revenue growth
(31)% to 6% (-2%)
Annual variable margin
22% to 37% (26%)
Discount rate
14% to 25% (14%)
TEG93 Discounted cash flowAnnual revenue growth
(7)% to 9% (—%)
Annual variable margin
14% to 33% (20%)
Discount rate
14% to 25% (14%)
Norgener (1)
24 Discounted cash flowAnnual revenue growth
(90)% to 994% (85%)
Annual variable margin
(75)% to 276% (16%)
GAF Projects (AES Renewable Holdings)11 Discounted cash flowAnnual revenue growth
(42)% to 44% (1%)
Annual variable margin
(194)% to 77% (66%)
Discount rate
9%
Total$222 
_____________________________
(1)The fair value of the Norgener asset group is mainly related to existing coal inventory not subject to impairment under ASC 360-10.
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:
September 30, 2023
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Accounts receivable — noncurrent (1)
$117 $153 $— $— $153 
Liabilities:Non-recourse debt21,618 21,108 — 19,646 1,462 
Recourse debt5,564 5,106 — 5,106 — 
December 31, 2022
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Accounts receivable — noncurrent (1)
$301 $340 $— $— $340 
Liabilities:Non-recourse debt19,429 18,527 — 17,089 1,438 
Recourse debt3,894 3,505 — 3,505 — 
_____________________________
(1)These amounts primarily relate to 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.