Fair Value (Tables)

3 Months Ended

Mar. 31, 2025

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, 2025								December 31, 2024
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:

Certificates of deposit	$	—	$	3	$	—	$	3	$	—	$	4	$	—	$	4
Government debt securities	—		4		—		4		—		4		—		4
Total debt securities	—		7		—		7		—		8		—		8
EQUITY SECURITIES:
Mutual funds	49		—		—		49		51		—		—		51
Common stock	2		—		—		2		4		—		—		4

Total equity securities	51		—		—		51		55		—		—		55
DERIVATIVES:
Interest rate derivatives	—		202		—		202		—		349		—		349

Foreign currency derivatives	—		6		43		49		—		9		52		61
Commodity derivatives	207		92		5		304		193		80		5		278
Total derivatives — assets (1)	207		300		48		555		193		438		57		688
TOTAL ASSETS	$	258	$	307	$	48	$	613	$	248	$	446	$	57	$	751
Liabilities
Contingent consideration (2)	$	—	$	—	$	173	$	173	$	—	$	—	$	145	$	145
DERIVATIVES:
Interest rate derivatives	—		62		2		64		—		14		1		15

Foreign currency derivatives	—		15		—		15		—		18		—		18
Commodity derivatives	199		39		3		241		185		44		26		255
Total derivatives — liabilities (1)	199		116		5		320		185		76		27		288
TOTAL LIABILITIES	$	199	$	116	$	178	$	493	$	185	$	76	$	172	$	433

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(1)Includes $1 million and $3 million of derivative assets reported in Current held-for-sale assets and $8 million and $3 million of derivative liabilities reported in Current held-for-sale liabilities on the Condensed Consolidated Balance Sheets related to Dominican Republic Renewables as of March 31, 2025 and December 31, 2024, respectively.

(2)The level 3 contingent consideration is mainly related to the acquisition of Bellefield in June 2023.

Marketable Securities [Table Text Block]

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


	Three Months Ended March 31,
		2025		2024
Gross proceeds from sale of available-for-sale securities		$	3	$	119

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 months ended March 31, 2025 and 2024 (derivative balances are presented net), 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 March 31, 2025	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at January 1, 2025	$	(1)	$	52	$	(21)	$	(145)	$	(115)
Total realized and unrealized gains (losses):
Included in earnings	—		1		—		(38)		(37)
Included in other comprehensive income (loss) — derivative activity	(1)		—		26		—		25



Settlements	—		(10)		(1)		10		(1)
Transfers of assets (liabilities), net into Level 3	—		—		(2)		—		(2)

Balance at March 31, 2025	$	(2)	$	43	$	2	$	(173)	$	(130)
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	$	—	$	(6)	$	—	$	(38)	$	(44)

	Derivative Assets and Liabilities
Three Months Ended March 31, 2024	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at January 1, 2024	$	(4)	$	59	$	(110)	$	(165)	$	(220)
Total realized and unrealized gains (losses):
Included in earnings	—		10		4		6		20
Included in other comprehensive income (loss) — derivative activity	8		4		28		—		40
Included in other comprehensive income (loss) — foreign currency translation activity	—		—		—		(1)		(1)

Acquisitions	—		—		—		(9)		(9)
Settlements	(1)		(9)		(1)		11		—

Transfers of (assets) liabilities, net out of Level 3	(5)		—		—		—		(5)
Balance at March 31, 2024	$	(2)	$	64	$	(79)	$	(158)	$	(175)
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	$	—	$	3	$	6	$	6	$	15

Fair value schedule of Significant Unobservable Input Recurring

The following table summarizes the significant unobservable inputs used to value Level 3 derivative assets (liabilities) as of March 31, 2025 (in millions, except range amounts):

Type of Derivative

Fair Value

Unobservable Input

Amount or Range (Average)

Interest rate

(2)

Subsidiary credit spread

0.5% to 3.2% (1.9%)

Foreign currency:

Argentine peso

Argentine peso to USD currency exchange rate after one year

1,328 to 1,342 (1,335)

Commodity:

CAISO energy swap

Forward CAISO energy prices per MWh after 2031

$7.89 to $132.30 ($65.53)

MISO energy swap

(2)

Forward MISO energy prices per MWh after 2031

$23.83 to $75.68 ($43.19)

Total

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 dates indicated, but for which fair value is disclosed:


		March 31, 2025
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	90	$	197	$	—	$	—	$	197
Liabilities:	Non-recourse debt	24,007		24,559		—		22,073		2,486
	Recourse debt	5,978		4,871		—		4,871		—


		December 31, 2024
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Accounts receivable — noncurrent (1)	$	87	$	171	$	—	$	—	$	171
Liabilities:	Non-recourse debt	22,743		23,066		—		20,981		2,085
	Recourse debt	5,704		4,538		—		4,538		—

_____________________________

(1)These amounts primarily relate to the sale of the Redondo Beach land, payment deferrals granted to mining customers as part of our green blend agreements in Chile, and fair value of the Argentine FONINVEMEM receivables. These are included in Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. See Note 5—Financing Receivables for further information.