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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
Assets and Liabilities Accounted for at Fair Value on Recurring Basis
The following tables present assets and liabilities accounted for at fair value on a recurring basis as of December 31, 2015 and 2014 by fair value hierarchy level. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty, including any related cash collateral as shown below; however, fair value amounts by hierarchy level are presented on a gross basis in the following tables.
 
December 31, 2015
 
Fair Value Hierarchy
 
 
 
 
 
 
(In millions)
Level 1
 
Level 2
 
Level 3
 
Netting and Collateral(a)
 
Net Carrying Value on Balance Sheet(b)
 
Collateral Pledged Not Offset
Commodity derivative instruments, assets
$
104

 
$
2

 
$
7

 
$
(62
)
 
$
51

 
$
—

Other assets
2

 
—

 
—

 
 N/A

 
2

 
—

Total assets at fair value
$
106

 
$
2

 
$
7

 
$
(62
)
 
$
53

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
Commodity derivative instruments, liabilities
$
39

 
$
—

 
$
—

 
$
(39
)
 
$
—

 
$
—

Embedded derivatives in commodity contracts(c)
—

 
—

 
32

 
—

 
32

 
—

Contingent consideration, liability(d)
—

 
—

 
317

 
 N/A

 
317

 
—

Total liabilities at fair value
$
39

 
$
—

 
$
349

 
$
(39
)
 
$
349

 
$
—

 
 
December 31, 2014
 
Fair Value Hierarchy
 
 
 
 
 
 
(In millions)
Level 1
 
Level 2
 
Level 3
 
Netting and Collateral(a)
 
Net Carrying Value on Balance Sheet(b)
 
Collateral Pledged Not Offset
Commodity derivative instruments, assets
$
317

 
$
—

 
$
—

 
$
(258
)
 
$
59

 
$
—

Other assets
2

 
—

 
—

 
 N/A

 
2

 
—

Total assets at fair value
$
319

 
$
—

 
$
—


$
(258
)
 
$
61

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
Commodity derivative instruments, liabilities
$
180

 
$
—

 
$
—

 
$
(180
)
 
$
—

 
$
—

Contingent consideration, liability(d)
—

 
—

 
478

 
 N/A

 
478

 
—

Total liabilities at fair value
$
180

 
$
—

 
$
478

 
$
(180
)
 
$
478

 
$
—

(a) 
Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of December 31, 2015, cash collateral of $23 million was netted with mark-to-market derivative assets. As of December 31, 2014, cash collateral of $78 million was netted with mark-to-market derivative assets.
(b) 
We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet.
(c) 
Includes $5 million at December 31, 2015 classified as current.
(d) 
Includes $196 million and $174 million classified as current as of December 31, 2015 and 2014, respectively.
Reconciliation of Net Beginning and Ending Balances Recorded for Net Assets and Liabilities Classified as Level 3
The following is a reconciliation of the net beginning and ending balances recorded for net assets and liabilities classified as Level 3 in the fair value hierarchy.
(In millions)
2015
 
2014
 
2013
Beginning balance
$
478

 
$
625

 
$
—

Contingent consideration agreement
—

 
—

 
600

Contingent consideration payment(a)
(189
)
 
(180
)
 
—

Net derivative positions assumed - MarkWest Merger
31

 
—

 
—

Unrealized and realized (gains) losses included in net income
20

 
33

 
25

Settlements of derivative instruments
2

 
—

 
—

Ending balance
$
342

 
$
478

 
$
625


(a) 
On the consolidated statements of cash flows for 2015 and 2014, $175 million and $172 million, respectively, of the contingent earnout payment to BP is included as a financing activity with the remainder included as an operating activity.
Assets Measured at Fair Value on a Nonrecurring Basis
The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition.
 
Year Ended December 31,
 
2015
 
2014
 
2013
(In millions)
Fair Value
 
Impairment
 
Fair Value
 
Impairment
 
Fair Value
 
Impairment
Property, plant and equipment, net
$
—

 
$
144

 
$
—

 
$
—

 
$
1

 
$
8

Other noncurrent assets
—

 
—

 
—

 
11

 
—

 
—
Financial Instruments at Fair Value, Excluding Derivative Financial Instruments and Contingent Consideration
The following table summarizes financial instruments on the basis of their nature, characteristics and risk at December 31, 2015 and 2014, excluding the derivative financial instruments and contingent consideration reported above.
 
December 31,
 
2015
 
2014
(In millions)
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Financial assets:
 
 
 
 
 
 
 
Investments
$
33

 
$
2

 
$
26

 
$
2

Other
35

 
33

 
32

 
32

Total financial assets
$
68

 
$
35

 
$
58

 
$
34

Financial liabilities:
 
 
 
 
 
 
 
Long-term debt(a)
$
11,366

 
$
11,628

 
$
6,571

 
$
6,265

Deferred credits and other liabilities
136

 
135

 
17

 
17

Total financial liabilities
$
11,502


$
11,763

 
$
6,588

 
$
6,282

(a) 
Excludes capital leases and debt issuance costs, however, includes amount classified as short-term debt.