Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Impact of New Accounting Pronouncements

The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements:



CONSOLIDATED BALANCE SHEET	Impact of Change in Accounting Policy
millions	As Reported		Without Adoption of Topic 606		Effect of Change Increase/(Decrease)
June 30, 2018
Assets
Net properties and equipment	$	28,502	$	28,454	$	48
Other assets	2,301		2,289		12
Liabilities
Other current liabilities	1,699		1,692		7
Deferred income taxes	2,317		2,325		(8		)
Other	4,031		3,918		113
Equity
Total equity	11,495		11,547		(52		)

2. Revenue from Contracts with Customers (Continued)



CONSOLIDATED STATEMENT OF INCOME	Impact of Change in Accounting Policy
millions	As Reported			Without Adoption of Topic 606			Effect of Change Increase/(Decrease)
Three Months Ended June 30, 2018
Revenues
Gathering, processing, and marketing sales	$	382		$	650		$	(268	)
Gains (losses) on divestitures and other, net	123			123			—
Expenses
Gathering, processing, and marketing	252			518			(266		)
Income tax expense (benefit)	125			126			(1		)
Net income (loss) attributable to noncontrolling interests	(12		)	(14		)	2
Net Income (Loss) Attributable to Common Stockholders	$	29		$	32		$	(3	)

Six Months Ended June 30, 2018
Revenues
Gathering, processing, and marketing sales	$	742		$	1,227		$	(485	)
Gains (losses) on divestitures and other, net	142			144			(2		)
Expenses
Gathering, processing, and marketing	489			969			(480		)
Income tax expense (benefit)	251			253			(2		)
Net income (loss) attributable to noncontrolling interests	41			40			1
Net Income (Loss) Attributable to Common Stockholders	$	150		$	156		$	(6	)

Schedule of Disaggregation of Revenue

The following table disaggregates revenue by significant product type and segment:



millions	Exploration & Production			WES Midstream			Other Midstream		Other and Intersegment Eliminations			Total
Three Months Ended June 30, 2018
Product Type
Oil sales	$	2,265		$	—		$	—	$	—		$	2,265
Natural-gas sales	203			—			—		—			203
Natural-gas liquids sales	318			—			—		—			318
Gathering, processing, and marketing sales ⁽¹⁾	—			438			107		58			603
Other, net	4			—			—		21			25
Total Revenue from Customers	$	2,790		$	438		$	107	$	79		$	3,414
Gathering, processing, and marketing sales ⁽²⁾	—			(2		)	1		(220		)	(221		)
Gains (losses) on divestitures, net	52			—			—		—			52
Other, net	(1		)	32			8		7			46
Total Revenue from Other than Customers	$	51		$	30		$	9	$	(213	)	$	(123	)
Total Revenue and Other	$	2,841		$	468		$	116	$	(134	)	$	3,291

Six Months Ended June 30, 2018
Product Type
Oil sales	$	4,392		$	—		$	—	$	—		$	4,392
Natural-gas sales	450			—			—		—			450
Natural-gas liquids sales	610			—			—		—			610
Gathering, processing, and marketing sales ⁽¹⁾	—			876			193		82			1,151
Other, net	7			—			—		40			47
Total Revenue from Customers	$	5,459		$	876		$	193	$	122		$	6,650
Gathering, processing, and marketing sales ⁽²⁾	—			(3		)	3		(409		)	(409		)
Gains (losses) on divestitures, net	19			—			9		—			28
Other, net	(13		)	61			18		1			67
Total Revenue from Other than Customers	$	6		$	58		$	30	$	(408	)	$	(314	)
Total Revenue and Other	$	5,465		$	934		$	223	$	(286	)	$	6,336

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⁽¹⁾	The amount in Other and Intersegment Eliminations primarily represents sales of third-party natural gas and NGLs of $261 million and intercompany eliminations of $(207) million for the three months ended June 30, 2018, and sales of third-party natural gas and NGLs of $485 million and intercompany eliminations of $(403) million for the six months ended June 30, 2018.


⁽²⁾	The amount in Other and Intersegment Eliminations represents purchases of third-party natural gas and NGLs. Although these purchases are reported net in gathering, processing, and marketing sales in the Company’s Consolidated Statements of Income, they are shown separately on this table, as the purchases are not considered revenue from customers.

Schedule of Contract with Customer Liabilities Activity

The following table summarizes the current period activity related to contract liabilities from contracts with customers:



millions
Balance at December 31, 2017	$	37
Increase due to cumulative effect of adopting Topic 606	98
Increase due to cash received, excluding revenues recognized in the period ⁽¹⁾	52
Decrease due to revenue recognized ⁽²⁾	(21		)
Balance at June 30, 2018	$	166

Contract liabilities at June 30, 2018
Other current liabilities	$	37
Other long-term liabilities - other	129
Total contract liabilities from contracts with customers	$	166

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⁽¹⁾	Includes $12 million for the three months ended June 30, 2018.


⁽²⁾	Includes $(9) million for the three months ended June 30, 2018.

Schedule of Expected Revenue Recognition from Satisfaction of Performance Obligations

Therefore, the following table represents only a small portion of Anadarko’s expected future consolidated revenues as future revenue from the sale of most products and services is dependent on future production or variable customer volumes and variable commodity prices for those volumes.



millions	Exploration & Production		WES Midstream		Other Midstream		Other and Intersegment Eliminations			Total
Remainder of 2018	$	51	$	220	$	25	$	(129	)	$	167
2019	102		493		136		(390		)	341
2020	103		542		207		(516		)	336
2021	103		527		248		(562		)	316
2022	7		527		289		(610		)	213
Thereafter	65		2,168		1,761		(3,288		)	706
Total	$	431	$	4,477	$	2,666	$	(5,495	)	$	2,079