Equity Method Investments and Related Party Transactions (Notes)

12 Months Ended

Dec. 31, 2013

Equity Method Investments Disclosure [Abstract]

Equity Method Investments and Related Party Transactions

During 2013, 2012 and 2011 only our equity method investees were considered related parties and they included:

•Alba Plant LLC, in which we have a 52 percent noncontrolling interest. Alba Plant LLC processes LPG.


•	AMPCO, in which we have a 45 percent interest. AMPCO is engaged in methanol production activity.


•	EGHoldings, in which we have a 60 percent noncontrolling interest. EGHoldings is engaged in LNG production activity.

Our equity method investments are summarized in the following table:



	Ownership as of	December 31,
(In millions)	December 31, 2013	2013		2012
EGHoldings	60%	$	748	$	817
Alba Plant LLC	52%	263		264
AMPCO	45%	189		187
Other investments		1		11
Total		$	1,201	$	1,279

Dividends and partnership distributions received from equity method investees (excluding distributions that represented a return of capital previously contributed) were $435 million in 2013, $381 million in 2012 and $509 million in 2011.

Summarized financial information for equity method investees is as follows:



(In millions)	2013		2012		2011
Income data – year:
Revenues and other income	$	1,444	$	1,330	$	1,544
Income from operations	849		755		942
Net income	727		635		820
Balance sheet data – December 31:
Current assets	$	644	$	607
Noncurrent assets	1,590		1,743
Current liabilities	384		395
Noncurrent liabilities	33		29

Revenues from related parties were $55 million, $58 million and $60 million in 2013, 2012 and 2011, with the majority related to EGHoldings in all years. Purchases from related parties were $242 million, $248 million and $250 million in 2013, 2012 and 2011 with the majority related to Alba Plant LLC in all years.

Current receivables from related parties at December 31, 2013 and 2012, approximately split evenly between EGHoldings and AMPCO, were $30 million and $27 million. Payables to related parties were $20 million at December 31, 2013 and 2012, with the majority related to Alba Plant LLC.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate and the entire disclosure for related party transactions. Equity method disclosures can include: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent% of the voting stock and the investment is accounted for using the equity method, and the reasons why it is. Related party transaction disclosures can include the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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