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Fair Value (Notes) | 6 Months Ended
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Jun. 30, 2016
Fair Value Disclosures [Abstract] |
Fair Value | Fair Value The fair values of our financial instruments are separated into three broad levels (Levels 1, 2 and 3) based on our assessment of the availability of observable market data and the significance of non-observable data used to determine fair value. Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety. The three broad levels of inputs defined by the fair value hierarchy are as follows:
• | Level 1 Inputs—quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date;
• | Level 2 Inputs—inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability; and
• | Level 3 Inputs—unobservable inputs for the asset or liability. These unobservable inputs reflect the entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances (which might include the reporting entity’s own data).
Fair Value of Derivative Contracts The following two tables summarize the fair value measurements of our (i) energy commodity derivative contracts; (ii) interest rate swap agreements; and (iii) cross-currency swap agreements, based on the three levels established by the Codification (in millions). The tables also identify the impact of derivative contracts which we have elected to present on our accompanying consolidated balance sheets on a gross basis that are eligible for netting under master netting agreements.
| Balance sheet asset fair value measurements by level |  |  |  | Net amount
| Level 1 |  | Level 2 |  | Level 3 |  | Gross amount |  | Contracts available for netting |  | Cash collateral held(b)
As of June 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts(a) | $ | 6 |  |  | $ | 317 |  |  | $ | — |  |  | $ | 323 |  |  | $ | (32 | ) |  | $ | — |  |  | $ | 291 |
Interest rate swap agreements | $ | — |  |  | $ | 836 |  |  | $ | — |  |  | $ | 836 |  |  | $ | — |  |  | $ | — |  |  | $ | 836 |
Cross-currency swap agreements | $ | — |  |  | $ | 13 |  |  | $ | — |  |  | $ | 13 |  |  | $ | (13 | ) |  | $ | — |  |  | $ | — |
As of December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts(a) | $ | 48 |  |  | $ | 589 |  |  | $ | 2 |  |  | $ | 639 |  |  | $ | (12 | ) |  | $ | (37 | ) |  | $ | 590 |
Interest rate swap agreements | $ | — |  |  | $ | 385 |  |  | $ | — |  |  | $ | 385 |  |  | $ | (8 | ) |  | $ | — |  |  | $ | 377 |
Cross-currency swap agreements | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
| Balance sheet liability fair value measurements by level |  |  |  | Net amount
| Level 1 |  | Level 2 |  | Level 3 |  | Gross amount |  | Contracts available for netting |  | Collateral posted(c)
As of June 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts(a) | $ | (19 | ) |  | $ | (47 | ) |  | $ | — |  |  | $ | (66 | ) |  | $ | 32 |  |  | $ | 18 |  |  | $ | (16 | )
Interest rate swap agreements | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Cross-currency swap agreements | $ | — |  |  | $ | (34 | ) |  | $ | — |  |  | $ | (34 | ) |  | $ | 13 |  |  | $ | — |  |  | $ | (21 | )
As of December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivative contracts(a) | $ | (4 | ) |  | $ | (10 | ) |  | $ | (17 | ) |  | $ | (31 | ) |  | $ | 12 |  |  | $ | — |  |  | $ | (19 | )
Interest rate swap agreements | $ | — |  |  | $ | (25 | ) |  | $ | — |  |  | $ | (25 | ) |  | $ | 8 |  |  | $ | — |  |  | $ | (17 | )
Cross-currency swap agreements | $ | — |  |  | $ | (52 | ) |  | $ | — |  |  | $ | (52 | ) |  | $ | — |  |  | $ | — |  |  | $ | (52 | )
_______
(a) | Level 1 consists primarily of New York Mercantile Exchange natural gas futures. Level 2 consists primarily of OTC West Texas Intermediate swaps and options. Level 3 consists primarily of power derivative contracts.
(b) | Cash margin deposits held by us associated with our energy commodity contract positions and OTC swap agreements and reported within “Other current liabilities” on our accompanying consolidated balance sheets.
(c) | Cash margin deposits posted by us associated with our energy commodity contract positions and OTC swap agreements and reported within “Other current assets” on our accompanying consolidated balance sheets.
The table below provides a summary of changes in the fair value of our Level 3 energy commodity derivative contracts (in millions):
Significant unobservable inputs (Level 3)
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
Derivatives-net asset (liability) |  |  |  |  |  |  |
Beginning of Period | $ | (2 | ) |  | $ | (49 | ) |  | $ | (15 | ) |  | $ | (61 | )
Total gains or (losses) included in earnings | (3 | ) |  | — |  |  | (9 | ) |  | — |
Settlements | 5 |  |  | 12 |  |  | 24 |  |  | 24 |
End of Period | $ | — |  |  | $ | (37 | ) |  | $ | — |  |  | $ | (37 | )
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or (losses) relating to assets held at the reporting date | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 3 |
As of December 31, 2015, our Level 3 derivative assets and liabilities consisted primarily of power derivative contracts (which expired in April 2016), where a significant portion of fair value is calculated from underlying market data that is not readily observable. The derived values use industry standard methodologies that may consider the historical relationships among various commodities, modeled market prices, time value, volatility factors and other relevant economic measures. The use of these inputs results in management’s best estimate of fair value and management would not expect materially different valuation results were we to use different input amounts within reasonable ranges. Fair Value of Financial Instruments The estimated fair value of our outstanding debt balances is disclosed below (in millions):
| June 30, 2016 |  | December 31, 2015
| Carrying value |  | Estimated fair value |  | Carrying value |  | Estimated fair value
Total debt | $ | 43,620 |  |  | $ | 43,061 |  |  | $ | 43,227 |  |  | $ | 37,481 |
We used Level 2 input values to measure the estimated fair value of our outstanding debt balances as of both June 30, 2016 and December 31, 2015.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
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