Asset Sales, Impairments and Other Accruals

12 Months Ended

Dec. 31, 2011

Asset Sales Impairments and Other Accruals [Abstract]

Asset Sales Impairments and Other Accruals

Note 4. Asset Sales, Impairments and Other Accruals

The following table presents significant gains or losses reflected in other(income) expense – netwithin segment costs and expenses:

			Years Ended December 31,
			2011		2010		2009
			(Millions)
Williams Partners
	Capitalization of project feasibility costs previously expensed		$	(10)	$	-	$	-
	Involuntary conversion gains			(3)		(18)		(4)
	Gains on sales of certain assets			-		(12)		(40)
	Accrual of regulatory liability related to overcollection of certain employee
		expenses		9		10		-
	Impairments of certain gathering assets			4		9		-
Midstream Canada & Olefins
	Gulf Liquids litigation contingency accrual reduction (see Note 16)			(19)		-		-

The reversal of project feasibility costs from expense to capital in 2011 at Williams Partners is associated with a natural gas pipeline expansion project. This reversal was made upon determining that the related project was probable of development. These costs will be included in the capital costs of the project, which we believe are probable of recovery through the project rates.

In 2009, we sold our Cameron Meadows plant, which had a carrying value of $16 million and recognized a $40 million gain at Williams Partners.

Additional Items

In conjunction with the completion of a tender offer for a portion of our debt in the fourth quarter of 2011 (see Note 11), we incurred $271 million of early debt retirement costs consisting primarily of cash premiums.

We completed a strategic restructuring transaction in the first quarter of 2010 that involved significant debt issuances, retirements and amendments. During 2010, we incurred significant costs related to these transactions, as follows:

• $606 million of early debt retirement costs consisting primarily of cash premiums;
• $45 million of other transaction costs reflected in general corporate expenses, of which $7 million is attributable to noncontrolling interests;
• $4 million of accelerated amortization of debt costs related to the amendments of credit facilities, reflected in otherincome (expense) – net below operating income (loss).

We detected a leak in an underground cavern at our Eminence Storage Field in Mississippi on December 28, 2010.  We recorded $15 million and $5 million of charges to costs and operating expenses at Williams Partners during 2011 and 2010, respectively, primarily related to assessment and monitoring costs incurred to ensure the safety of the surrounding area.

In conjunction with the Gulf Liquids litigation contingency accrual reduction noted in the table above, Midstream Canada & Olefins also reduced an accrual for the associated interest of $14 million in 2011, which is reflected in interest accrued. (See Note 16.)