Other Income and Expenses
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3 Months Ended | ||||||||||||
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Mar. 31, 2015
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Other Income and Expenses [Abstract] | |||||||||||||
Other income and expenses [Textblock] | Note 4 – Other Income and Expenses Geismar Incident On June 13, 2013, an explosion and fire occurred at Williams Partners’ Geismar olefins plant. The incident (Geismar Incident) rendered the facility temporarily inoperable and resulted in significant human, financial, and operational effects. At the time of the incident, we had insurance coverage for repair and replacement costs, lost production, and additional expenses related to the incident as follows:
During the first quarter of 2014, we received $125 million of insurance recoveries related to the Geismar Incident and incurred $6 million of related covered insurable expenses in excess of our retentions (deductibles). These amounts are reported within Williams Partners and reflected as a net gain in Net insurance recoveries – Geismar Incident in the Consolidated Statement of Income. Since June 2013, we have settled claims associated with $480 million of available property damage and business interruption coverage for a total of $422 million. This total includes $126 million expected to be received during the second quarter of 2015. The remaining insurance limits total approximately $20 million and we are vigorously pursuing collection. Additional Items Selling, general, and administrative expenses in 2015 includes $25 million of professional advisory fees associated with the Merger and $4 million of related employee transition costs, reported primarily within the Williams Partners segment, in addition to $6 million of general corporate expenses associated with integration and re-alignment of resources. Operating and maintenance expenses in 2015 also includes $4 million of related employee transition costs reported within the Williams Partners segment. The three months ended March 31, 2014, includes $19 million of project development costs related to the Bluegrass Pipeline Company LLC (Bluegrass Pipeline) reported within Williams NGL & Petchem Services and reflected in Selling, general, and administrative expenses in the Consolidated Statement of Income. Equity earnings (losses) for the three months ended March 31, 2014 includes $70 million of losses reported within Williams NGL & Petchem Services related to the write-off of previously capitalized project development costs by Bluegrass Pipeline, Moss Lake Fractionation LLC, and Moss Lake LPG Terminal LLC after our management decided to discontinue further funding of the projects. These entities were dissolved in the fourth quarter of 2014. The three months ended March 31, 2014, includes $13 million of interest income associated with a receivable related to the sale of certain former Venezuela assets reflected in Other investing income (loss) – net in the Consolidated Statement of Income. Due to changes in circumstances that have led to late payments and increased uncertainty regarding the recovery of the receivable, we have begun accounting for the receivable under a cost recovery model. As a result, no interest income was recognized in the first quarter of 2015. Other income (expense) – net below Operating income (loss) includes $17 million and $3 million for allowance for equity funds used during construction (AFUDC) reported within Williams Partners for the three months ended March 31, 2015 and 2014, respectively. AFUDC increased during 2015 due to the increase in spending on various Transco expansion projects and Constitution. |