Fair Value (Tables)

3 Months Ended

Mar. 31, 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:


	March 31, 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	$	—	$	3	$	—	$	3	$	—	$	3	$	—	$	3
Government debt securities	—		3		—		3		—		—		—		—
Total debt securities	—		6		—		6		—		3		—		3
EQUITY SECURITIES:
Mutual funds	57		—		—		57		57		—		—		57
Common stock	—		—		—		—		1		—		—		1

Total equity securities	57		—		—		57		58		—		—		58
DERIVATIVES:
Interest rate derivatives	—		238		—		238		—		279		—		279

Foreign currency derivatives	—		12		—		12		—		24		—		24
Commodity derivatives	108		69		6		183		109		72		5		186
Total derivatives — assets	108		319		6		433		109		375		5		489
TOTAL ASSETS	$	165	$	325	$	6	$	496	$	167	$	378	$	5	$	550
Liabilities
Contingent consideration (1)	$	—	$	—	$	209	$	209	$	—	$	—	$	205	$	205
DERIVATIVES:
Interest rate derivatives	—		46		—		46		—		59		—		59

Foreign currency derivatives	—		24		—		24		—		28		—		28
Commodity derivatives	100		24		33		157		110		42		45		197
Total derivatives — liabilities	100		94		33		227		110		129		45		284
TOTAL LIABILITIES	$	100	$	94	$	242	$	436	$	110	$	129	$	250	$	489

_____________________________

(1)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,
		2026		2025
Gross proceeds from sale of available-for-sale securities		$	1	$	3

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, 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 March 31, 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	—		—		1		(6)		(5)
Included in other comprehensive income (loss) — derivative activity	—		—		14		—		14



Settlements	—		—		(2)		2		—


Balance at March 31, 2026	$	—	$	—	$	(27)	$	(209)	$	(236)
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	$	—	$	—	$	1	$	(6)	$	(5)

	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 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)	$	—	$	(38)	$	(44)

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 March 31, 2026 (in millions, except range amounts):

Type of Derivative

Fair Value

Unobservable Input

Amount or Range (Average)

Commodity:

CAISO energy swap

(24)

Forward CAISO energy prices per MWH from 2032 through 2038

$5.85 to $132.82 ($50.22)

MISO energy swap

(3)

Forward MISO energy prices per MWH from 2032 through 2040

$22.76 to $91.39 ($47.98)

Total

(27)

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:


		March 31, 2026
		Carrying Amount		Fair Value
				Total		Level 1		Level 2		Level 3
Assets:	Financing receivables (1)	$	828	$	930	$	—	$	—	$	930
Liabilities:	Non-recourse debt	24,080		25,245		—		22,601		2,644
	Recourse debt	6,171		5,101		—		5,101		—


		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, the sale of the Redondo Beach land, and the fair value of the Argentine FONINVEMEM receivables. 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.