Note 3 – Other Income and Expenses

The following table presents certain gains or losses reflected in Other (income) expense – net within Costs and expenses in our Consolidated Statement of Income:



	Three months ended June 30,					Six months ended June 30,
	2014		2013			2014		2013
	(Millions)
Williams Partners
Amortization of regulatory assets associated with asset retirement obligations	$	8	$	5		$	17	$	7
Write-off of the Eminence abandonment regulatory asset not recoverable through rates	—		6			—		6
Insurance recoveries associated with the Eminence abandonment	—		(12		)	—		(12		)
Impairment of certain equipment held for sale (see Note 10)	17		—			17		—

Geismar Incident

On June 13, 2013, an explosion and fire occurred at WPZ’s Geismar olefins plant. The fire was extinguished on the day of the incident. The incident (Geismar Incident) rendered the facility temporarily inoperable and resulted in significant human, financial, and operational effects.

We have substantial insurance coverage for repair and replacement costs, lost production, and additional expenses related to the incident as follows:


•	Property damage and business interruption coverage with a combined per-occurrence limit of $500 million and retentions (deductibles) of $10 million per occurrence for property damage and a waiting period of 60 days per occurrence for business interruption;


•	General liability coverage with per-occurrence and aggregate annual limits of $610 million and retentions (deductibles) of $2 million per occurrence;


•	Workers’ compensation coverage with statutory limits and retentions (deductibles) of $1 million total per occurrence.

During the three and six month periods ended June 30, 2014, we received $50 million and $175 million, respectively, of insurance recoveries related to the Geismar Incident. The three and six month periods ended June 30, 2014, also include $8 million and $14 million, respectively, of related covered insurable expenses incurred in excess of our retentions (deductibles). These amounts are reported within Williams Partners and reflected as net gains in Net insurance recoveries – Geismar Incident in the Consolidated Statement of Income.

The three and six month periods ended June 30, 2013, include $6 million of costs under our insurance deductibles reported in Operating and maintenance expenses in the Consolidated Statement of Income.

Additional Items

The six month period ended June 30, 2014, includes $19 million of project development costs related to the Bluegrass Pipeline reported within Williams NGL & Petchem Services and reflected in Selling, general, and administrative expenses in the Consolidated Statement of Income.

The three and six month periods ended June 30, 2014, also include $11 million of acquisition-related transaction costs incurred related to our ACMP Acquisition with $9 million reported in Interest incurred and $2 million reported within our Access Midstream Partners segment and reflected in Selling, general, and administrative expenses in the Consolidated Statement of Income. (See further discussion in Note 13 – Subsequent Event.)

The three month periods ended June 30, 2014 and 2013, include $14 million and $13 million, respectively, and the six month periods ended June 30, 2014 and 2013, include $27 million and $26 million, respectively, of interest income associated with a receivable related to the sale of certain former Venezuela assets reflected in Other investing income – net in the Consolidated Statement of Income.

The three and six month periods ended June 30, 2014 both include $4 million and the three and six month periods ended June 30, 2013 both include $26 million, of gains resulting from Access Midstream Partners’ equity issuances reflected in Other investing income – net in the Consolidated Statement of Income. These equity issuances resulted in the dilution of our ownership interest and are accounted for as though we sold a portion of our investment.