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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
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,
2020201920202019
Gross proceeds from sale of available-for-sale securities$97 $193 $410 $517 
Fair value hierarchy for recurring measurements table
The following table presents, by level within the fair value hierarchy, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated (in millions). For the Company’s investments in marketable debt securities, the security classes presented were determined based on the nature and risk of the security and are consistent with how the Company manages, monitors, and measures its marketable securities:
 September 30, 2020December 31, 2019
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
DEBT SECURITIES:
Available-for-sale:
Certificates of deposit$— $312 $— $312 $— $326 $— $326 
EQUITY SECURITIES:
Mutual funds25 47 — 72 22 61 — 83 
DERIVATIVES:
Interest rate derivatives— 3 — 3 — 31 — 31 
Foreign currency derivatives— 21 79 100 — 17 93 110 
Commodity derivatives— 20 2 22 — 28 2 30 
Total derivatives — assets— 44 81 125 — 76 95 171 
TOTAL ASSETS$25 $403 $81 $509 $22 $463 $95 $580 
Liabilities
DERIVATIVES:
Interest rate derivatives$— $415 $267 $682 $— $144 $184 $328 
Cross-currency derivatives— 15 12 27 — 10 11 21 
Foreign currency derivatives— 37 — 37 — 44 — 44 
Commodity derivatives— 23 1 24 — 29 2 31 
Total derivatives — liabilities— 490 280 770 — 227 197 424 
TOTAL LIABILITIES$— $490 $280 $770 $— $227 $197 $424 
Fair Value, Net Derivative Assets (Liabilities) measured on a recurring basis, Unobservable Input Reconciliation Table
The following tables present a reconciliation of net derivative assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2020 and 2019 (presented net by type of derivative in millions). Transfers between Level 3 and Level 2 principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.
Three Months Ended September 30, 2020Interest RateCross CurrencyForeign CurrencyCommodityTotal
Balance at July 1$(286)$(23)$76 $1 $(232)
Total realized and unrealized gains (losses):
Included in earnings— — 8 1 9 
Included in other comprehensive income — derivative activity(8)3 3 — (2)
Included in regulatory (assets) liabilities— — — (1)(1)
Settlements12 9 (9)1 13 
Transfers of assets (liabilities), net into Level 3— — — — — 
Transfers of (assets)/liabilities, net out of Level 313 — 1 — 14 
Balance at September 30$(269)$(11)$79 $2 $(199)
Total gains for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period$— $— $— $1 $1 
Three Months Ended September 30, 2019Interest RateCross CurrencyForeign CurrencyCommodityTotal
Balance at July 1$(243)$— $192 $4 $(47)
Total realized and unrealized gains (losses):
Included in earnings— — (54)(2)(56)
Included in other comprehensive income — derivative activity(37)— (10)— (47)
Included in regulatory (assets) liabilities— — — (2)(2)
Settlements2 — (15)(1)(14)
Transfers of assets (liabilities), net into Level 3— (6)— — (6)
Transfers of (assets) liabilities, net out of Level 345 — — — 45 
Balance at September 30$(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)$(64)
Nine Months Ended September 30, 2020Interest RateCross CurrencyForeign CurrencyCommodityTotal
Balance at January 1$(184)$(11)$94 $(1)$(102)
Total realized and unrealized gains (losses):
Included in earnings2 — 10 2 14 
Included in other comprehensive income — derivative activity(79)(10)4 — (85)
Included in regulatory (assets) liabilities— — — 1 1 
Settlements20 10 (30)— — 
Transfers of assets (liabilities), net into Level 3(28)— — — (28)
Transfers of (assets)/liabilities, net out of Level 3— — 1 — 1 
Balance at September 30$(269)$(11)$79 $2 $(199)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period$— $— $(13)$2 $(11)
Nine Months Ended September 30, 2019Interest RateCross CurrencyForeign CurrencyCommodityTotal
Balance at January 1$(140)$— $199 $4 $63 
Total realized and unrealized gains (losses):
Included in earnings(1)— (52)(2)(55)
Included in other comprehensive income — derivative activity(113)— (10)— (123)
Included in regulatory (assets) liabilities— — — (3)(3)
Settlements5 — (24)— (19)
Transfers of assets (liabilities), net into Level 3(32)(6)— — (38)
Transfers of (assets) liabilities, net out of Level 348 — — — 48 
Balance at September 30$(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)$(71)
Derivative Assets, Significant unobservable inputs
The following table summarizes the significant unobservable inputs used for Level 3 derivative assets (liabilities) as of September 30, 2020 (in millions, except range amounts):
Type of DerivativeFair ValueUnobservable InputAmount or Range (Weighted Average)
Interest rate$(269)Subsidiaries’ credit spreads
3.6% - 4.7% (4.6%)
Cross-currency(11)Subsidiaries’ credit spreads3.8 %
Foreign currency:
Argentine peso79 Argentine peso to U.S. dollar currency exchange rate after one year
79 - 853 (343)
Commodity:
Other2 
Total$(199)
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, 2020 (in millions, except range amounts):
Fair ValueValuation TechniqueUnobservable InputRange (Weighted Average)
Equity method investments:
OPGC (1)
$152 Expected present valueAnnual dividend growth
(25)% to 40% (2%)
Weighted-average cost of equity12 %
Long-lived assets held and used:
AES Gener306 Discounted cash flowAnnual revenue growth
(90)% to 10% (-2%)
Variable margin
(94)% to 24% (-3%)
Weighted-average cost of capital
7% to 10%
Hawaii76 Discounted cash flowMonthly revenue growth
(12)% to 13% (0%)
Pre-tax operating margin
24% to 35% (29%)
Weighted-average cost of capital
10% to 13%
Estrella del Mar I14 Comparable market transactionsSale price per kilowatt (USD)
$160 to $520 ($315)
Age of unit when sold (years)
15 to 25 (18)
Total$548 
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):
Measurement Date
Carrying Amount (1)
Fair ValuePre-tax Loss
Nine Months Ended September 30, 2020Level 1Level 2Level 3
Equity method investments:
OPGC (2)
03/31/2020$195 $— $— $152 $43 
OPGC (3)
06/30/2020272 — 104 — 158 
Long-lived assets held and used
AES Gener08/01/20201,087 — — 306 781 
Hawaii08/31/2020114 — — 76 38 
Estrella del Mar I09/30/202044 — — 14 30 
Measurement Date
Carrying Amount (1)
Fair ValuePre-tax Loss
Nine Months Ended September 30, 2019Level 1Level 2Level 3
Dispositions and held-for-sale businesses: (4)
Kilroot and Ballylumford04/12/2019$232 $— $118 $— $115 
_____________________________
(1)Represents the carrying values at the dates of measurement, before fair value adjustment.
(2)Excludes $115 million of cumulative translation adjustment (debit balance) in the carrying value.
(3)Includes $114 million of cumulative translation adjustment (debit balance) in the carrying value. Pre-tax loss is limited to the carrying value of the equity method investment excluding CTA.
(4)Per the Company’s policy, pre-tax loss is limited to the impairment of long-lived assets. Any additional losses are recognized on completion of the sale. See Note 18—Held-for-Sale and Dispositions for further information.
Financial instruments not measured at fair value in the condensed consolidated balance sheets ets
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, 2020
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Accounts receivable — noncurrent (1)
$183 $296 $— $— $296 
Liabilities:Non-recourse debt17,377 18,987 — 16,053 2,934 
Recourse debt3,969 2,461 — 2,461 — 
December 31, 2019
Carrying
Amount
Fair Value
TotalLevel 1Level 2Level 3
Assets:
Accounts receivable — noncurrent (1)
$98 $145 $— $— $145 
Liabilities:Non-recourse debt16,712 16,579 — 15,804 775 
Recourse debt3,396 3,529 — 3,529 — 
_____________________________
(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 Condensed Consolidated Balance Sheets. The fair value and carrying amount of these receivables exclude VAT of $9 million and $11 million as of September 30, 2020 a