Note 6 – Investing Activities

Impairment of equity-method investments

The following table presents other-than-temporary impairment charges related to certain equity-method investments (see Note 17 – Fair Value Measurements, Guarantees, and Concentration of Credit Risk):



	Years Ended December 31,
	2016		2015
	(Millions)
Williams Partners
Appalachia Midstream Investments	$	294	$	562
DBJV	59		503
Laurel Mountain	50		45
UEOM	—		241
Ranch Westex	24		—
Other	3		8
	$	430	$	1,359

Equity earnings (losses)

Equity earnings (losses) in 2015 includes a loss of $19 million associated with WPZ’s share of underlying property impairments at certain of the Appalachia Midstream Investments. This loss is reported within the Williams Partners segment.

Equity earnings (losses) in 2014 includes:


•	Write-offs of capitalized project development costs on our discontinued investments in Bluegrass Pipeline Company LLC (Bluegrass) of $67 million and Moss Lake Fractionation LLC and Moss Lake LPG Terminal LLC (collectively referred to as Moss Lake) of $4 million;

•

A $7 million equity loss recognized from our interest in ACMP that was accounted for under the equity-method of accounting for the first six months of the year, including $19 million of equity losses associated with certain compensation-related costs at ACMP that were triggered by the acquisition and $30 million noncash amortization of the difference between the cost of our investment and our underlying share of the net assets for the first six months of the year.

Other investing income (loss) – net

In 2016, we recognized a $27 million gain from the sale of an equity-method investment interest in a gathering system that was part of the Appalachia Midstream Investments within the Williams Partners segment.

Other investing income (loss) – net also includes $36 million, $27 million, and $41 million of interest income for 2016, 2015 and 2014, respectively, associated with a receivable related to the sale of certain former Venezuela assets. Due to changes in circumstances that led to late payments and increased uncertainty regarding the recovery of the receivable, we began accounting for the receivable under a cost recovery model in first quarter 2015. Subsequently, we received payments greater than the remaining carrying amount of the receivable, which resulted in the recognition of interest income.

Investments



	Ownership Interest at December 31, 2016	December 31,
	Ownership Interest at December 31, 2016	2016		2015
		(Millions)
Equity-method investments:
Appalachia Midstream Investments	(1)	$	2,062	$	2,464
UEOM	62%	1,448		1,525
DBJV	50%	988		977
Discovery	60%	572		602
OPPL	50%	430		445
Caiman II	58%	426		418
Laurel Mountain	69%	324		391
Gulfstream	50%	261		293
Other	Various	190		221
		$	6,701	$	7,336

___________


(1)	Includes equity-method investments in multiple gathering systems in the Marcellus Shale with an approximate average 41 percent interest.

We have differences between the carrying value of our equity-method investments and the underlying equity in the net assets of the investees of $1.9 billion at December 31, 2016 and $2.4 billion at December 31, 2015. These differences primarily relate to our investments in Appalachian Midstream Investments, DBJV, and UEOM resulting from property, plant, and equipment, as well as customer-based intangible assets and goodwill.

Purchases of and contributions to equity-method investments

We generally fund our portion of significant expansion or development projects of these investees through additional capital contributions. These transactions increased the carrying value of our investments and included:



	Years Ended December 31,
	2016		2015		2014
	(Millions)
DBJV	$	105	$	57	$	20
Appalachia Midstream Investments	28		93		84
Caiman II	22		—		175
UEOM	—		357		57
Discovery	—		35		106
Other	22		53		40
	$	177	$	595	$	482

Dividends and distributions

The organizational documents of entities in which we have an equity-method interest generally require distribution of available cash to members on at least a quarterly basis. These transactions reduced the carrying value of our investments and included:



	Years Ended December 31,
	2016		2015		2014
	(Millions)
Appalachia Midstream Investments	$	211	$	219	$	130
Discovery	141		116		36
Gulfstream	100		88		81
UEOM	92		42		—
OPPL	69		45		27
Caiman II	40		33		13
DBJV	39		33		—
Laurel Mountain	28		31		39
ACMP	—		—		64
Other	22		26		50
	$	742	$	633	$	440

In addition, on September 24, 2015, WPZ received a special distribution of $396 million from Gulfstream reflecting its proportional share of the proceeds from new debt issued by Gulfstream. The new debt was issued to refinance Gulfstream’s debt maturities. Subsequently, WPZ contributed $248 million and $148 million to Gulfstream for its proportional share of amounts necessary to fund debt maturities of $500 million due on November 1, 2015, and $300 million due on June 1, 2016, respectively.

Summarized Financial Position and Results of Operations of All Equity-Method Investments



	December 31,
	2016			2015
	(Millions)
Assets (liabilities):
Current assets	$	508		$	773
Noncurrent assets	9,695			9,549
Current liabilities	(412		)	(633		)
Noncurrent liabilities	(1,484		)	(1,450		)



	Years Ended December 31,
	2016		2015		2014
	(Millions)
Gross revenue	$	1,883	$	1,707	$	1,623
Operating income	799		690		534
Net income	726		611		460