Fair Value (Tables)

6 Months Ended

Jun. 30, 2026

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:


	June 30, 2026								December 31, 2025
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
DEBT SECURITIES:
Available-for-sale:

Certificates of deposit	$	—	$	2	$	—	$	2	$	—	$	3	$	—	$	3
Government debt securities	—		2		—		2		—		—		—		—
Total debt securities	—		4		—		4		—		3		—		3
EQUITY SECURITIES:
Mutual funds	60		—		—		60		57		—		—		57
Common stock	—		—		—		—		1		—		—		1

Total equity securities	60		—		—		60		58		—		—		58
DERIVATIVES:
Interest rate derivatives	—		277		—		277		—		279		—		279

Foreign currency derivatives	—		7		—		7		—		24		—		24
Commodity derivatives	100		70		13		183		109		72		5		186
Total derivatives — assets	100		354		13		467		109		375		5		489
TOTAL ASSETS	$	160	$	358	$	13	$	531	$	167	$	378	$	5	$	550
Liabilities
Contingent consideration (1)	$	—	$	—	$	205	$	205	$	—	$	—	$	205	$	205
DERIVATIVES:
Interest rate derivatives	—		39		—		39		—		59		—		59

Foreign currency derivatives	—		36		—		36		—		28		—		28
Commodity derivatives	84		24		38		146		110		42		45		197
Total derivatives — liabilities	84		99		38		221		110		129		45		284
TOTAL LIABILITIES (1)	$	84	$	99	$	243	$	426	$	110	$	129	$	250	$	489

_____________________________

(1)Includes $6 million of contingent consideration reported in Current held-for-sale liabilities on the Condensed Consolidated Balance Sheets related to the JK Projects as of June 30, 2026.

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 June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Gross proceeds from sale of available-for-sale securities	$	1	$	1	$	2	$	4

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 six months ended June 30, 2026 and 2025 (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 June 30, 2026	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at April 1, 2026	$	—	$	—	$	(27)	$	(209)	$	(236)
Total realized and unrealized gains (losses):
Included in earnings	—		—		—		4		4


Included in regulatory liabilities	—		—		7		—		7
Acquisitions	—		—		—		(16)		(16)
Settlements	—		—		(5)		16		11


Balance at June 30, 2026	$	—	$	—	$	(25)	$	(205)	$	(230)
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	$	—	$	—	$	—	$	4	$	4

	Derivative Assets and Liabilities
Three Months Ended June 30, 2025	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at April 1, 2025	$	(2)	$	43	$	2	$	(173)	$	(130)
Total realized and unrealized gains (losses):
Included in earnings	—		1		1		20		22
Included in other comprehensive income (loss) — derivative activity	—		1		(29)		—		(28)

Included in regulatory liabilities	—		—		5		—		5
Acquisitions	—		—		—		(11)		(11)
Settlements	—		(10)		(1)		20		9

Transfers of assets (liabilities), net out of Level 3	2		—		—		—		2
Balance at June 30, 2025	$	—	$	35	$	(22)	$	(144)	$	(131)
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	$	—	$	(6)	$	—	$	20	$	14


	Derivative Assets and Liabilities
Six Months Ended June 30, 2026	Interest Rate		Foreign Currency		Commodity		Contingent Consideration		Total
Balance at January 1, 2026	$	—	$	—	$	(40)	$	(205)	$	(245)
Total realized and unrealized gains (losses):
Included in earnings	—		—		—		(2)		(2)
Included in other comprehensive income — derivative activity	—		—		14		—		14

Included in regulatory liabilities	—		—		7		—		7
Acquisitions	—		—		—		(16)		(16)
Settlements	—		—		(6)		18		12


Balance at June 30, 2026	$	—	$	—	$	(25)	$	(205)	$	(230)
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	$	—	$	—	$	—	$	(2)	$	(2)

	Derivative Assets and Liabilities
Six Months Ended June 30, 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	—		2		—		(18)		(16)
Included in other comprehensive income (loss) — derivative activity	—		1		(3)		—		(2)

Included in regulatory liabilities	—		—		5		—		5
Acquisitions	—		—		—		(11)		(11)
Settlements	—		(20)		(2)		30		8
Transfers of assets (liabilities), net into Level 3	—		—		(1)		—		(1)
Transfers of assets (liabilities), net out of Level 3	1		—		—		—		1
Balance at June 30, 2025	$	—	$	35	$	(22)	$	(144)	$	(131)
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	$	—	$	(12)	$	—	$	(18)	$	(30)

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 June 30, 2026 (in millions, except range amounts):

Type of Derivative

Fair Value

Unobservable Input

Amount or Range (Average)

Commodity:

CAISO energy swap

(28)

Forward CAISO energy prices per MWH from 2032 through 2038

$4.21 to $132.82 ($51.18)

MISO energy swap

(3)

Forward MISO energy prices per MWH from 2032 through 2040

$23.54 to $95.62 ($48.42)

Other

Total

(25)

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:


		June 30, 2026
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Financing receivables (1)	$	807	$	807	$	—	$	—	$	807
Liabilities:	Non-recourse debt	25,222		26,335		—		23,294		3,041
	Recourse debt	6,100		5,087		—		5,087		—


		December 31, 2025
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Financing receivables (1)	$	855	$	955	$	—	$	—	$	955
Liabilities:	Non-recourse debt	23,178		23,749		—		20,448		3,301
	Recourse debt	5,984		5,003		—		5,003		—

_____________________________

(1)For both periods presented, amounts primarily relate to the Mong Duong loan receivable, payment deferrals granted to mining customers as part of our green blend agreements in Chile, and the sale of the Redondo Beach land. These are included in Loan receivable and Other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. See Note 5—Financing Receivables for further information.