EQUITY INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of equity investments and summarized financial information for equity investees

	Ownership		Equity Earnings from Unconsolidated Affiliates				Investments in Unconsolidated Affiliates
	Interest at		Three months		Six Months
(unaudited)	June 30,		ended June 30,		ended June 30,		June 30,	December 31,
(millions of dollars)	2016		2016	2015	2016	2015	2016	2015

Northern Border (a)	50	%	16	15	34	34	455	480
Great Lakes	46.45	%	4	—	19	12	472	485
PNGTS (b)	49.90	%	2	—	11	—	120	—

			22	15	64	46	1,047	965

(a)

Equity earnings from Northern Border is net of the 12-year amortization of a $10 million transaction fee paid to the operator of Northern Border at the time of the Partnership’s additional 20 percent interest acquisition in April 2006.

(b)

On January 1, 2016, the Partnership acquired a 49.9 percent interest in PNGTS (Refer to Note 6). For the three and six months ended June 30, 2016, the Partnership recorded no undistributed earnings from PNGTS.

Northern Border

EQUITY INVESTMENTS

Schedule of equity investments and summarized financial information for equity investees

(unaudited)
(millions of dollars)	June 30, 2016		December 31, 2015

ASSETS
Cash and cash equivalents	16		27
Other current assets	34		33
Plant, property and equipment, net	1,108		1,124
Other assets (a)	15		16

	1,173		1,200


LIABILITIES AND PARTNERS’ EQUITY
Current liabilities	40		39
Deferred credits and other	27		26
Long-term debt, including current maturities, net (a)	429		409
Partners’ equity
Partners’ capital	679		728
Accumulated other comprehensive loss	(2	)	(2	)

	1,173		1,200

(a)

As a result of the application of ASU No. 2015-03 and similar to the presentation of debt discounts, debt issuance costs of $2 million at December 31, 2015 previously reported as other assets in the balance sheet were reclassified as an offset against their respective debt liabilities.

	Three months ended				Six months ended
(unaudited)	June 30,				June 30,
(millions of dollars)	2016		2015		2016		2015

Transmission revenues	70		69		144		144
Operating expenses	(18	)	(18	)	(35	)	(34	)
Depreciation	(15	)	(14	)	(29	)	(29	)
Financial charges and other	(6	)	(6	)	(11	)	(11	)

Net income	31		31		69		70

Great Lakes

EQUITY INVESTMENTS

Schedule of equity investments and summarized financial information for equity investees

(unaudited)
(millions of dollars)	June 30, 2016	December 31, 2015

ASSETS
Current assets	53	86
Plant, property and equipment, net	721	727

	774	813


LIABILITIES AND PARTNERS’ EQUITY
Current liabilities	29	31
Long-term debt, including current maturities, net (a)	288	297
Partners’ equity	457	485

	774	813

(a)

The application of ASU No. 2015-03 did not have a material effect on Great Lakes’ financial statements.

	Three months ended				Six months ended
(unaudited)	June 30,				June 30,
(millions of dollars)	2016		2015		2016		2015

Transmission revenues	36		28		97		76
Operating expenses	(15	)	(14	)	(30	)	(25	)
Depreciation	(7	)	(7	)	(14	)	(14	)
Financial charges and other	(5	)	(6	)	(11	)	(12	)

Net income	9		1		42		25