Membership Interests

9 Months Ended

Sep. 30, 2014

Stockholders' Equity Note [Abstract]

Membership Interests

MEMBERSHIP INTERESTS

Cash Distributions

No cash distributions were made in the nine months ended September 30, 2014. In January 2013, EFIH's board of directors declared, and EFIH paid, a cash distribution to EFH Corp. of $680 million, which was used by EFH Corp. to settle the TCEH Demand Notes (see Note 11).

Distribution Restrictions

The agreement governing the EFIH DIP Facility generally restricts EFIH's ability to make distributions or loans to any of its parent companies or their subsidiaries unless such distributions or loans are expressly permitted under the agreement governing such facility.

Under applicable law, EFIH is prohibited from paying any distribution to the extent that immediately following payment of such distribution, it would be insolvent. In addition, due to the Bankruptcy Filing, no distributions are eligible to be paid without the approval of the Bankruptcy Court.

Affiliate Debt Held by EFIH

As a result of debt exchanges in 2009 through 2013, EFIH holds debt securities of EFH Corp. and TCEH. In December 2012, management determined that some or all of these securities may be returned as dividends to EFH Corp.; accordingly, the balances were reclassified at that time from investment in debt of affiliates and reported as a reduction of membership interests. Interest received reduces the carrying value of the securities and thus increases membership interests. There was no interest received in the nine months ended September 30, 2014. Interest received for the nine months ended September 30, 2013 totaled $208 million after-tax and represented accrued interest on notes distributed to EFH Corp. in the first quarter 2013. As a result of the Bankruptcy Filing, EFIH does not expect to receive further interest payments on affiliate debt securities it holds.

In the first quarter 2013, EFIH distributed to EFH Corp. $6.360 billion principal amount of EFH Corp. debt held. As a result of this distribution, EFIH reclassified to interest income $284 million (pretax) of mark-to-market gains previously reported in accumulated other comprehensive income.

The principal amounts, coupon rates, maturities and carrying value of debt of affiliates held at both September 30, 2014 and December 31, 2013 are as follows:

	Principal Amount		Carrying Value
EFH Corp. 5.55% Fixed Senior Notes Series P due November 15, 2014	$	281	$	185
EFH Corp. 6.50% Fixed Senior Notes Series Q due November 15, 2024	545		249
EFH Corp. 6.55% Fixed Senior Notes Series R due November 15, 2034	456		194
TCEH 10.25% Fixed Senior Notes due November 1, 2015 (both periods include $48 million principal amount of Series B Notes)	79		7
Balance reported as reduction in membership interests	$	1,361	$	635

The indentures governing the EFIH Notes do not limit EFIH's ability to distribute the EFH Corp. debt securities that it holds to EFH Corp. so long as it received such securities in exchange for the issuance of EFIH debt, which applies to all the EFH Corp. debt EFIH currently holds.

Membership Interests

The following table presents the changes (all after tax) to membership interests for the nine months ended September 30, 2014:

	Capital Accounts			Affiliate Debt Held by EFIH			Accumulated Other Comprehensive Income (Loss)			Total Membership Interests
Balance at December 31, 2013	$	(1,148	)	$	(635	)	$	(39	)	$	(1,822	)
Net income	(357		)	—			—			(357		)
Effect of debt push-down from EFH Corp.	16			—			—			16
Balance at September 30, 2014	$	(1,489	)	$	(635	)	$	(39	)	$	(2,163	)

The following table presents the changes to membership interests for the nine months ended September 30, 2013:

	Capital Accounts			Affiliate Debt Held by EFIH			Accumulated Other Comprehensive Income (Loss)			Total Membership Interests
Balance at December 31, 2012	$	5,049		$	(5,388	)	$	160		$	(179	)
Net income	68			—			—			68
Cash distributions to EFH Corp.	(680		)	—			—			(680		)
Push-down of deferred net loss on debt exchanges, net of tax	13			—			—			13
Effect of debt push-down from EFH Corp. (a)	437			—			—			437
Distribution to EFH Corp. of debt held as investment	(5,778		)	—			—			(5,778		)
EFH Corp. debt distributed to EFH Corp. ($5.125 billion principal amount)	—			4,524			—			4,524
Net effects related to Oncor	—			—			1			1
Net affiliate debt received in debt exchanges ($31 million principal amount)	—			(23		)	—			(23		)
Interest received on holdings of affiliate debt	—			208			—			208
Income tax on interest received on holdings of affiliate debt	(73		)	—			—			(73		)
Recognition in interest income of mark-to-market valuations of investments in affiliate debt upon distribution to EFH Corp.	—			—			(185		)	(185		)
Other	—			(1		)	—			(1		)
Balance at September 30, 2013	$	(964	)	$	(680	)	$	(24	)	$	(1,668	)

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(a) Represents the effect of a reduction of $420 million of debt pushed down from EFH Corp and related interest and income tax effects.

Accumulated Other Comprehensive Income (Loss)

There were no material changes to accumulated other comprehensive income (loss) in the nine months ended September 30, 2014.

The following table presents the changes to accumulated other comprehensive income (loss) for the nine months ended September 30, 2013. There was no other comprehensive income (loss) before reclassification for the period.

	Dedesignated Cash Flow Hedges - Oncor			Changes in Fair Values of Investment in Debt Securities of Affiliates			Pension and Other Postretirement Employee Benefit Liabilities Adjustments - Oncor			Total Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2012	$	(23	)	$	185		$	(2	)	$	160
Amounts reclassified from accumulated other comprehensive income (loss) and reported in:
Interest income	—			(284		)	—			(284		)
Equity in earnings (losses) of unconsolidated subsidiaries	2			—			(1		)	1
Income tax benefit	—			99			—			99
Total amount reclassified from accumulated other comprehensive income (loss) during the period	2			(185		)	(1		)	(184		)
Balance at September 30, 2013	$	(21	)	$	—		$	(3	)	$	(24	)