XML 37 R26.htm IDEA: XBRL DOCUMENT
v3.22.2

Fair Value of Financial Instruments (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2022
Fair Value Disclosures [Abstract] |
Estimated Carrying Values and Fair Values | The carrying amounts and estimated fair values of the Company’s recorded financial instruments not carried at fair market value or that do not approximate fair value are as follows:
| As of June 30, 2022 |  | As of December 31, 2021
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
(In millions) |
Long-term debt, including current portion (a) | $ | 7,131 |  |  | $ | 6,617 |  |  | $ | 7,782 |  |  | $ | 7,997 |
(a) Excludes net debt issuance costs, which are recorded as a reduction to long-term debt on the Company’s consolidated balance sheets.
Fair Value Option, Disclosures | The following table presents the level within the fair value hierarchy for long-term debt, including current portion as of June 30, 2022 and December 31, 2021:
| As of June 30, 2022 |  | As of December 31, 2021
| Level 2 |  | Level 3 |  | Level 2 |  | Level 3
| (In millions)
Long-term debt, including current portion | $ | 1,795 |  |  | $ | 4,822 |  |  | $ | 2,159 |  |  | $ | 5,838 |
Schedule of Fair Value, Assets and Liabilities | The following table presents assets and liabilities measured and recorded at fair value on the Company’s consolidated balance sheets on a recurring basis and their level within the fair value hierarchy:
|  |  | As of June 30, 2022 |  | As of December 31, 2021
|  |  | Fair Value (a) |  | Fair Value (a)
(In millions) |  |  | Level 2 |  | Level 3 |  |  |  | Level 2 |  | Level 3 |  |
Derivative assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  |  | $ | 44 |  |  | $ | — |  |  |  |  | $ | 6 |  |  | $ | — |  |  |
Other financial instruments (b) |  |  | — |  |  | 21 |  |  |  |  | — |  |  | 25 |  |  |
Total assets |  |  | $ | 44 |  |  | $ | 21 |  |  |  |  | $ | 6 |  |  | $ | 25 |  |  |
Derivative liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity contracts |  |  | $ | — |  |  | $ | 353 |  |  |  |  | $ | — |  |  | $ | 179 |  |  |
Interest rate contracts |  |  | 2 |  |  | — |  |  |  |  | 63 |  |  | — |  |  |
Total liabilities |  |  | $ | 2 |  |  | $ | 353 |  |  |  |  | $ | 63 |  |  | $ | 179 |  |  |
(a) There were no derivative assets classified as Level 1 or Level 3 and no liabilities classified as Level 1 as of June 30, 2022 and December 31, 2021. (b) SREC contract. The following table reconciles the beginning and ending balances for instruments that are recognized at fair value in the consolidated financial statements using significant unobservable inputs:
|  | Three months ended June 30, |  | Six months ended June 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
(In millions) |  | Fair Value Measurement Using Significant Unobservable Inputs (Level 3) |  | Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
Beginning balance |  | $ | (280) |  |  | $ | (39) |  |  | $ | (154) |  |  | $ | (15) |
Total losses for the period included in earnings |  | (74) |  |  | (33) |  |  | (184) |  |  | (57) |
Additions due to loss of NPNS exception |  | — |  |  | — |  |  | (22) |  |  | — |
Purchases |  | — |  |  | (9) |  |  | — |  |  | (9) |
Settlements |  | 22 |  |  | 2 |  |  | 28 |  |  | 2 |
Ending balance |  | $ | (332) |  |  | $ | (79) |  |  | $ | (332) |  |  | $ | (79) |
Change in unrealized losses included in earnings for derivatives and other financial instruments held as of June 30, 2022 |  | $ | (74) |  |  |  |  | $ | (184) |  |  |
Fair Value Measurement Inputs and Valuation Techniques | The following table quantifies the significant unobservable inputs used in developing the fair value of the Company’s Level 3 positions as of June 30, 2022:
| June 30, 2022
| Fair Value |  | Input/Range
| Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average
| (In millions) |  |  |  |  |
Commodity Contracts | $ | — |  | $ | 353 |  | Discounted Cash Flow | Forward Market Price (per MWh) | $ | 21.68 |  | $ | 109.37 |  | $ | 39.23 |
Other Financial Instruments | 21 |  | — |  | Discounted Cash Flow | Forecast annual generation levels of certain DG solar facilities | 58,539 MWh | 117,078 MWh | 114,223 MWh
The following table provides the impact on the fair value measurements to increases/(decreases) in significant unobservable inputs as of June 30, 2022:
Significant Unobservable Input | Position | Change In Input | Impact on Fair Value Measurement
Forward Market Price Power | Sell | Increase/(Decrease) | Lower/(Higher)
Forecast Generation Levels | Sell | Increase/(Decrease) | Higher/(Lower)

X
- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information about asset and liability measured at fair value under fair value option. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14210-108612 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14217-108612 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612 + Details
Name: | us-gaap_FairValueOptionQuantitativeDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration