Other Income and Expenses

9 Months Ended

Sep. 30, 2017

Other Income and Expenses [Abstract]

Other Income and Expenses [Text Block]

Note 5 – Other Income and Expenses

The following table presents certain gains or losses reflected in Other (income) expense – net within Costs and expenses in our Consolidated Statement of Operations:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2017		2016		2017			2016
	(Millions)
Williams Partners
Amortization of regulatory assets associated with asset retirement obligations	$	8	$	8	$	25		$	25
Accrual of regulatory liability related to overcollection of certain employee expenses	5		6		16			19
Project development costs related to Constitution (see Note 2)	4		11		12			19
Gains on contract settlements and terminations	—		—		(15		)	—
Gain on sale of Refinery Grade Propylene Splitter	—		—		(12		)	—
Net foreign currency exchange (gains) losses (1)	—		—		—			11
Loss on sale of Canadian operations (see Note 3)	4		32		—			32
Other
Gain on sale of unused pipe	—		—		—			(10		)
Loss on sale of Canadian operations (see Note 3)	—		33		1			33

(1) Primarily relates to gains and losses incurred on foreign currency transactions and the remeasurement of U.S. dollar denominated current assets and liabilities within our former Canadian operations.

Additional Items

Certain additional items included in the Consolidated Statement of Operations are as follows:

• Service revenues were reduced by $15 million for the nine months ended September 30, 2016, related to potential refunds associated with a ruling received in certain rate case litigation within the Williams Partners segment.

• Selling, general, and administrative expenses includes $5 million and $9 million for the three and nine months ended September 30, 2017, respectively, and $21 million and $40 million for the three and nine months ended September 30, 2016, respectively, of costs associated with our evaluation of strategic alternatives within the Other segment. Selling, general, and administrative expenses also includes $16 million and $61 million for the three and nine months ended September 30, 2016, respectively, of project development costs related to a proposed propane dehydrogenation facility in Alberta, Canada within the Other segment. Beginning in the first quarter of 2016, these costs did not qualify for capitalization.

• Selling, general, and administrative expensesand Operating and maintenance expenses include $5 million and $18 million in severance and other related costs for the three and nine months ended September 30, 2017 for the Williams Partners segment. The nine months ended September 30, 2016 included $26 million in severance and other related costs associated with an approximate 10 percent reduction in workforce in the first quarter of 2016, primarily within the Williams Partners segment.

• Other income (expense) – net below Operating income (loss) includes $17 million and $55 million for the three and nine months ended September 30, 2017, respectively, and $17 million and $46 million for the three and nine months ended September 30, 2016, respectively, for allowance for equity funds used during construction primarily within the Williams Partners segment. Other income (expense) – net below Operating income (loss) also includes $8 million and $44 million, for the three and nine months ended September 30, 2017, respectively, and $6 million and $16 million for the three and nine months ended September 30, 2016, respectively, of income associated with a regulatory asset related to deferred taxes on equity funds used during construction.

• Other income (expense) – net below Operating income (loss) for the three months ended September 30, 2017 includes a net loss of $3 million associated with the July 3, 2017 early retirement of $1.4 billion of 4.875 percent senior unsecured notes that were due in 2023. The net loss for the July 3, 2017 early retirement within the Williams Partners segment reflects $51 million of unamortized premium, offset by $54 million in premiums paid. (See Note 9 – Debt and Banking Arrangements.)

• Other income (expense) – net below Operating income (loss) for the nine months ended September 30, 2017, includes a net gain of $27 million associated with the early retirement of debt. The gain is comprised of a $30 million net gain associated with the February 23, 2017 early retirement of $750 million of 6.125 percent senior unsecured notes that were due in 2022, partially offset by a $3 million net loss associated with the July 3, 2017 early retirement discussed above. The net gain for the February 23, 2017 early retirement within Williams Partners reflects $53 million of unamortized premium, partially offset by $23 million in premiums paid. (See Note 9 – Debt and Banking Arrangements.)