Revenue Recognition

9 Months Ended

Sep. 30, 2020

Revenue Recognition [Abstract]

Revenue Recognition [Text Block]

Note 3 – Revenue Recognition

Revenue by Category

The following table presents our revenue disaggregated by major service line:

	Transco		Northwest Pipeline		Gulf of Mexico Midstream		Northeast Midstream		West Midstream		Other		Eliminations		Total
	(Millions)
Three Months Ended September 30, 2020
Revenues from contracts with customers:
Service revenues:
Regulated interstate natural gas transportation and storage	$	600	$	111	$	—	$	—	$	—	$	—	$	(3)	$	708
Gathering, processing, transportation, fractionation, and storage:
Monetary consideration	—		—		85		332		288		—		(17)		688
Commodity consideration	—		—		6		2		32		—		—		40
Other	3		—		3		41		20		—		(2)		65
Total service revenues	603		111		94		375		340		—		(22)		1,501
Product sales:
NGL and natural gas	21		—		26		12		394		—		(36)		417
Total revenues from contracts with customers	624		111		120		387		734		—		(58)		1,918
Other revenues (1)	2		—		3		6		—		8		(4)		15
Total revenues	$	626	$	111	$	123	$	393	$	734	$	8	$	(62)	$	1,933
Three Months Ended September 30, 2019
Revenues from contracts with customers:
Service revenues:
Regulated interstate natural gas transportation and storage	$	601	$	111	$	—	$	—	$	—	$	—	$	(2)	$	710
Gathering, processing, transportation, fractionation, and storage:
Monetary consideration	—		—		117		310		308		—		(19)		716
Commodity consideration	—		—		7		1		30		—		—		38
Other	—		—		8		38		12		—		(5)		53
Total service revenues	601		111		132		349		350		—		(26)		1,517
Product sales:
NGL and natural gas	41		—		34		30		391		—		(28)		468
Total revenues from contracts with customers	642		111		166		379		741		—		(54)		1,985
Other revenues (1)	3		—		2		5		—		7		(3)		14
Total revenues	$	645	$	111	$	168	$	384	$	741	$	7	$	(57)	$	1,999

	Transco		Northwest Pipeline		Gulf of Mexico Midstream		Northeast Midstream		West Midstream		Other		Eliminations		Total
	(Millions)
Nine Months Ended September 30, 2020
Revenues from contracts with customers:
Service revenues:
Regulated interstate natural gas transportation and storage	$	1,796	$	336	$	—	$	—	$	—	$	—	$	(6)	$	2,126
Gathering, processing, transportation, fractionation, and storage:
Monetary consideration	—		—		262		952		884		—		(58)		2,040
Commodity consideration	—		—		14		5		74		—		—		93
Other	8		—		19		123		46		—		(11)		185
Total service revenues	1,804		336		295		1,080		1,004		—		(75)		4,444
Product sales:
NGL and natural gas	61		—		75		42		1,056		—		(96)		1,138
Total revenues from contracts with customers	1,865		336		370		1,122		2,060		—		(171)		5,582
Other revenues (1)	4		—		6		16		5		25		(11)		45
Total revenues	$	1,869	$	336	$	376	$	1,138	$	2,065	$	25	$	(182)	$	5,627
Nine Months Ended September 30, 2019
Revenues from contracts with customers:
Service revenues:
Regulated interstate natural gas transportation and storage	$	1,736	$	335	$	—	$	—	$	—	$	—	$	(4)	$	2,067
Gathering, processing, transportation, fractionation, and storage:
Monetary consideration	—		—		366		840		1,007		—		(54)		2,159
Commodity consideration	—		—		33		9		116		—		—		158
Other	1		—		21		104		32		—		(12)		146
Total service revenues	1,737		335		420		953		1,155		—		(70)		4,530
Product sales:
NGL and natural gas	88		—		140		114		1,300		—		(132)		1,510
Total revenues from contracts with customers	1,825		335		560		1,067		2,455		—		(202)		6,040
Other revenues (1)	8		—		6		15		12		22		(9)		54
Total revenues	$	1,833	$	335	$	566	$	1,082	$	2,467	$	22	$	(211)	$	6,094

______________________________

(1)Revenues not within the scope of Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers,” consist of leasing revenues associated with our headquarters building and management fees that we receive for certain services we provide to operated equity-method investments, which are reported in Service revenues in our Consolidated Statement of Income, and amounts associated with our derivative contracts, which are reported in Product sales in our Consolidated Statement of Income.

Contract Assets

The following table presents a reconciliation of our contract assets:

	Three Months Ended  September 30,				Nine Months Ended  September 30,
	2020		2019		2020		2019
	(Millions)
Balance at beginning of period	$	30	$	17	$	8	$	4
Revenue recognized in excess of amounts invoiced	36		14		105		53
Minimum volume commitments invoiced	(24)		—		(71)		(26)
Balance at end of period	$	42	$	31	$	42	$	31

Contract Liabilities

The following table presents a reconciliation of our contract liabilities:

	Three Months Ended  September 30,				Nine Months Ended  September 30,
	2020		2019		2020		2019
	(Millions)
Balance at beginning of period	$	1,203	$	1,331	$	1,215	$	1,397
Payments received and deferred	14		12		116		138
Significant financing component	3		3		8		10
Recognized in revenue	(50)		(77)		(169)		(276)
Balance at end of period	$	1,170	$	1,269	$	1,170	$	1,269

Remaining Performance Obligations

Remaining performance obligations primarily include reservation charges on contracted capacity for our gas pipeline firm transportation contracts with customers, storage capacity contracts, long-term contracts containing minimum volume commitments associated with our midstream businesses, and fixed payments associated with offshore production handling. For our interstate natural gas pipeline businesses, remaining performance obligations reflect the rates for such services in our current FERC tariffs for the life of the related contracts; however, these rates may change based on future tariffs approved by the FERC and the amount and timing of these changes are not currently known.

Our remaining performance obligations exclude variable consideration, including contracts with variable consideration for which we have elected the practical expedient for consideration recognized in revenue as billed. Certain of our contracts contain evergreen and other renewal provisions for periods beyond the initial term of the contract. The remaining performance obligation amounts as of September 30, 2020, do not consider potential future performance obligations for which the renewal has not been exercised and exclude contracts with customers for which the underlying facilities have not received FERC authorization to be placed into service. Consideration received prior to September 30, 2020, that will be recognized in future periods is also excluded from our remaining performance obligations and is instead reflected in contract liabilities.

The following table presents the amount of the contract liabilities balance expected to be recognized as revenue when performance obligations are satisfied and the transaction price allocated to the remaining performance obligations under certain contracts as of September 30, 2020.

	Contract Liabilities		Remaining Performance Obligations
	(Millions)
2020 (remainder)	$	45	$	840
2021	72		3,315
2022	69		3,145
2023	54		2,811
2024	52		2,301
Thereafter	878		18,178
Total	$	1,170	$	30,590

Accounts Receivable

The following is a summary of our Trade accounts and other receivables – net:

	September 30, 2020		December 31, 2019
	(Millions)
Accounts receivable related to revenues from contracts with customers	$	868	$	890
Other accounts receivable	143		106
Total reflected in Trade accounts and other receivables – net	$	1,011	$	996