Equity Method Investments and Related Party Transactions (Notes)

12 Months Ended

Dec. 31, 2016

Equity Method Investments Disclosure [Abstract]

Equity Method Investments and Related Party Transactions

During 2016, 2015 and 2014 only our equity method investees were considered related parties and they included:


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

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


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

Our equity method investments are summarized in the following table:



	Ownership as of	December 31,
(In millions)	December 31, 2016	2016		2015
EGHoldings	60%	$	550	$	603
Alba Plant LLC	52%	215		230
AMPCO	45%	165		169
Other investments		1		1
Total		$	931	$	1,003

Dividends and partnership distributions received from equity method investees (excluding distributions that represented a return of capital previously contributed) were $192 million in 2016, $178 million in 2015 and $451 million in 2014.

Summarized financial information for equity method investees is as follows:



(In millions)	2016		2015		2014
Income data – year:
Revenues and other income	$	770	$	769	$	1,349
Income from operations	346		313		826
Net income	313		280		728
Balance sheet data – December 31:
Current assets	$	525	$	467
Noncurrent assets	1,173		1,317
Current liabilities	218		211
Noncurrent liabilities	47		41

Revenues from related parties were $54 million, $51 million and $56 million in 2016, 2015 and 2014, with the majority related to EGHoldings in all years. Purchases from related parties were $103 million, $207 million and $207 million in 2016, 2015 and 2014 with the majority related to Alba Plant LLC in all years.

Current receivables from related parties at December 31, 2016 and 2015, were $23 million, and $29 million. Payables to related parties were $11 million and $5 million at December 31, 2016 and 2015, 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.

+ References + Details