Talen Energy Corp
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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11. Fair Value
- Fair Value
Recurring Fair Value Measurements
Financial assets and liabilities reported at fair value on a recurring basis primarily include energy commodity derivatives, interest rate derivatives, and investments held within the NDT. See Note 1 to the Annual Financial Statements for additional descriptions on fair value levels.
The classifications of recurring fair value measurements within the fair value hierarchy were:
| June 30, 2026 | December 31, 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Level 1 | Level 2 | NAV | Netting (a) | Total | Level 1 | Level 2 | NAV | Netting (a) | Total | |
| Assets | ||||||||||
| Cash equivalents | $— | $— | $9 | $— | $9 | $— | $— | $16 | $— | $16 |
| Equity securities (b) | 961 | — | 235 | — | 1,196 | 871 | — | 234 | — | 1,105 |
| U.S. government debt securities | 252 | 116 | — | — | 368 | 297 | 102 | — | — | 399 |
| Municipal debt securities | — | 94 | — | — | 94 | — | 101 | — | — | 101 |
| Corporate debt securities | — | 324 | — | — | 324 | — | 277 | — | — | 277 |
| Receivables (payables), net (c) | — | — | — | — | 6 | — | — | — | — | 2 |
| NDT funds | 1,213 | 534 | 244 | — | 1,997 | 1,168 | 480 | 250 | — | 1,900 |
| Commodity derivatives | 890 | 140 | — | (893) | 137 | 361 | 95 | — | (396) | 60 |
| Interest rate derivatives | — | 3 | — | — | 3 | — | — | — | — | — |
| Total assets | $2,103 | $677 | $244 | $(893) | $2,137 | $1,529 | $575 | $250 | $(396) | $1,960 |
| Liabilities | ||||||||||
| Commodity derivatives | $950 | $743 | $— | $(972) | $721 | $407 | $189 | $— | $(440) | $156 |
| Interest rate derivatives | — | 2 | — | — | 2 | — | 12 | — | — | 12 |
| Total liabilities | $950 | $745 | $— | $(972) | $723 | $407 | $201 | $— | $(440) | $168 |
(a)Amounts represent netting pursuant to master netting arrangements and cash collateral held or placed with the same counterparty.
(b)Includes fixed income funds and real estate investment trusts.
(c)Represents: (i) interest and dividends earned but not received; and (ii) net sold or purchased investments, but not settled.
There were no recurring fair value measurements classified as Level 3 as of June 30, 2026 and December 31, 2025.
Nonrecurring Fair Value Measurements
There were no nonrecurring fair value measurements related to impairments of long-lived assets during the three and six months ended June 30, 2026 and 2025. See Note 17 to the Interim Financial Statements for fair value measurements related to the Cornerstone Acquisition.
Reported Fair Value
The carrying value of certain financial assets and liabilities on the Consolidated Balance Sheets, including “Cash and cash equivalents,” “Restricted cash and cash equivalents,” “Accounts receivable,” and “Accounts payable and other accrued liabilities” approximate fair value.
The carrying value and fair value (classified as Level 2) of indebtedness presented on the Consolidated Balance Sheets were:
| June 30, 2026 | December 31, 2025 | |||
|---|---|---|---|---|
| Carrying Value | Fair Value | Carrying Value | Fair Value | |
| Long-term debt (a) | $9,572 | $9,688 | $6,811 | $7,069 |
(a)Aggregate value of “Long-term debt” and “Long-term debt, due within one year” presented on the Consolidated Balance Sheets.
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