Revenue Recognition

3 Months Ended

Mar. 31, 2022

Revenue Recognition [Abstract]

Revenue Recognition [Text Block]

Note 4 – 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		Gas & NGL Marketing Services		Other		Eliminations		Total
	(Millions)
Three Months Ended March 31, 2022
Revenues from contracts with customers:
Service revenues:
Regulated interstate natural gas transportation and storage	$	665	$	113	$	—	$	—	$	—	$	—	$	—	$	(18)	$	760
Gathering, processing, transportation, fractionation, and storage:
Monetary consideration	—		—		82		323		317		—		—		(30)		692
Commodity consideration	—		—		21		7		49		—		—		—		77
Other	2		—		6		51		12		1		—		(6)		66
Total service revenues	667		113		109		381		378		1		—		(54)		1,595
Product sales	16		—		87		36		187		2,470		104		(393)		2,507
Total revenues from contracts with customers	683		113		196		417		565		2,471		104		(447)		4,102
Other revenues (1)	3		1		2		6		(3)		1,615		(65)		(3)		1,556
Other adjustments (2)	—		—		—		—		—		(3,232)		—		98		(3,134)
Total revenues	$	686	$	114	$	198	$	423	$	562	$	854	$	39	$	(352)	$	2,524
Three Months Ended March 31, 2021
Revenues from contracts with customers:
Service revenues:
Regulated interstate natural gas transportation and storage	$	625	$	113	$	—	$	—	$	—	$	—	$	—	$	(3)	$	735
Gathering, processing, transportation, fractionation, and storage:
Monetary consideration	—		—		86		311		269		—		—		(28)		638
Commodity consideration	—		—		11		3		35		—		—		—		49
Other	3		—		3		41		19		1		—		(5)		62
Total service revenues	628		113		100		355		323		1		—		(36)		1,484
Product sales	14		—		53		32		150		1,088		56		(248)		1,145
Total revenues from contracts with customers	642		113		153		387		473		1,089		56		(284)		2,629
Other revenues (1)	2		—		2		6		3		(34)		7		(3)		(17)
Total revenues	$	644	$	113	$	155	$	393	$	476	$	1,055	$	63	$	(287)	$	2,612

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(1)Revenues not derived 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 realized and unrealized gains and losses associated with our derivative contracts, which are reported in Net gain (loss) on commodity derivatives in our Consolidated Statement of Income.

Contract Assets

The following table presents a reconciliation of our contract assets:

	Three Months Ended  March 31,
	2022		2021
	(Millions)
Balance at beginning of period	$	22	$	12
Revenue recognized in excess of amounts invoiced	55		45
Minimum volume commitments invoiced	(41)		(32)
Balance at end of period	$	36	$	25

Contract Liabilities

The following table presents a reconciliation of our contract liabilities:

	Three Months Ended  March 31,
	2022		2021
	(Millions)
Balance at beginning of period	$	1,126	$	1,209
Payments received and deferred	29		13
Significant financing component	2		3
Recognized in revenue	(64)		(54)
Balance at end of period	$	1,093	$	1,171

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 (MVC) 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 Federal Energy Regulatory Commission (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 March 31, 2022, 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 March 31, 2022, 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 March 31, 2022.

	Contract Liabilities		Remaining Performance Obligations
	(Millions)
2022 (nine months)	$	98	$	2,683
2023 (one year)	120		3,386
2024 (one year)	119		3,152
2025 (one year)	114		2,623
2026 (one year)	110		2,395
Thereafter	532		17,027
Total	$	1,093	$	31,266

Accounts Receivable

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

	March 31, 2022		December 31, 2021
	(Millions)
Accounts receivable related to revenues from contracts with customers	$	1,426	$	1,451
Receivables from derivatives	489		462
Other accounts receivable	58		65
Trade accounts and other receivables – net	$	1,973	$	1,978