Debt and Financing Arrangements (Notes)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Debt and Financing Arrangements

DEBT AND FINANCING ARRANGEMENTS

Credit Facility

We along with WPZ and Northwest Pipeline LLC, are party to a credit agreement with aggregate commitments available of $3.5 billion, with up to an additional $500 million increase in aggregate commitments available under certain circumstances. Total letter of credit capacity available to WPZ under this credit facility is $1.125 billion. We are able to borrow up to $500 million under this credit facility to the extent not otherwise utilized by the other co-borrowers. At September 30, 2017, no letters of credit have been issued and no loans were outstanding under the credit facility.

WPZ participates in a commercial paper program, and WPZ management considers amounts outstanding under this program to be a reduction of available capacity under the credit facility. The program allows a maximum outstanding amount at any time of $3 billion of unsecured commercial paper notes. At September 30, 2017, no commercial paper was outstanding under the commercial paper program.

Other Financing Obligation

During the construction of our Dalton Expansion Project, we received funding from a partner for its proportionate share of construction costs related to its undivided ownership interest in the Dalton lateral. Amounts received were recorded in Advances for construction costs on our Condensed Consolidated Balance Sheet. Upon placing the project in service during the third quarter of 2017, we began leasing this partner's undivided interest in the lateral, including the associated pipeline capacity, and reclassified approximately $235.8 million of funding previously received from our partner from Advances for construction costs to Long-Term Debt on our Condensed Consolidated Balance Sheet to reflect the financing obligation payable to our partner over an expected term of 35 years. As this transaction did not meet the criteria for sale leaseback accounting due to our continued involvement, it was accounted for as a financing arrangement over the course of the capacity agreement. The obligation matures in July 2052, requires monthly interest and principal payments, and bears an interest rate of approximately 10 percent.

Long-Term Debt Due Within One Year

The long-term debt due within one year at September 30, 2017 is associated with the $250 million of 6.05 percent notes maturing on June 15, 2018 and $1.5 million associated with the previously described other financing obligation.