Fair Value Measurements and Guarantees (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Assets and Liabilities Measured On Recurring Basis [Table Text Block]

The following table presents, by level within the fair value hierarchy, certain of our financial assets and liabilities. The carrying values of cash and cash equivalents, accounts receivable, commercial paper, and accounts payable approximate fair value because of the short-term nature of these instruments. Therefore, these assets and liabilities are not presented in the following table.



							Fair Value Measurements Using
	Carrying Amount			Fair Value			Quoted Prices In Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Millions)
Assets (liabilities) at September 30, 2017:
Measured on a recurring basis:
ARO Trust investments	$	127		$	127		$	127		$	—		$	—
Energy derivatives assets not designated as hedging instruments	2			2			1			—			1
Energy derivatives liabilities designated as hedging instruments	(6		)	(6		)	(5		)	(1		)	—
Energy derivatives liabilities not designated as hedging instruments	(5		)	(5		)	(2		)	—			(3		)
Additional disclosures:
Other receivables	12			12			12			—			—
Long-term debt, including current portion	(21,069		)	(22,979		)	—			(22,979		)	—
Guarantees	(44		)	(30		)	—			(14		)	(16		)

Assets (liabilities) at December 31, 2016:
Measured on a recurring basis:
ARO Trust investments	$	96		$	96		$	96		$	—		$	—
Energy derivatives assets designated as hedging instruments	2			2			—			2			—
Energy derivatives assets not designated as hedging instruments	1			1			—			—			1
Energy derivatives liabilities not designated as hedging instruments	(6		)	(6		)	—			—			(6		)
Additional disclosures:
Other receivables	15			15			15			—			—
Long-term debt, including current portion	(23,409		)	(24,090		)	—			(24,090		)	—
Guarantees	(44		)	(30		)	—			(14		)	(16		)

Fair Value Measurements, Nonrecurring [Table Text Block]

Nonrecurring fair value measurements

The following table presents impairments of assets and investments associated with certain nonrecurring fair value measurements within Level 3 of the fair value hierarchy.



						Impairments
						Nine Months Ended September 30,
	Classification	Segment	Date of Measurement	Fair Value		2017		2016
				(Millions)
Certain gathering operations (1)	Property, plant, and equipment - net and Intangible assets - net of accumulated amortization	Williams Partners	September 30, 2017	$	439	$	1,019
Certain gathering operations (2)	Property, plant, and equipment - net and Intangible assets - net of accumulated amortization	Williams Partners	September 30, 2017	21		115
Certain NGL pipeline (3)	Property, plant, and equipment – net	Other	September 30, 2017	32		68
Certain olefins pipeline project (4)	Property, plant, and equipment – net	Other	June 30, 2017	18		23
Canadian operations (5)	Assets held for sale	Williams Partners	June 30, 2016	924				$	341
Canadian operations (5)	Assets held for sale	Other	June 30, 2016	206				406
Certain gathering operations (6)	Property, plant, and equipment – net	Williams Partners	June 30, 2016	18				48
Level 3 fair value measurements of certain assets						1,225		795
Other impairments and write-downs (7)						11		16
Impairment of certain assets						$	1,236	$	811

Equity-method investments (8)	Investments	Williams Partners	March 31, 2016	$	1,294			$	109
Other equity-method investment	Investments	Williams Partners	March 31, 2016	—				3
Impairment of equity-method investments								$	112

_______________

(1)

Relates to certain gathering operations in the Mid-Continent region. During the third quarter of 2017, we received solicitations and engaged in negotiations for the sale of certain of these assets which led to our impairment evaluation. The estimated fair value was determined using an income approach and incorporated market inputs based on ongoing negotiations for a potential sale of a portion of the underlying assets. For the income approach, we utilized a discount rate of 10.2 percent, reflecting an estimate of our cost of capital and risks associated with the underlying assets.


(2)	Relates to certain gathering operations in the Marcellus South region resulting from an anticipated decline in future volumes following a third-quarter 2017 shut-in by the primary producer. The estimated fair value was determined by the income approach utilizing a discount rate of 11.1 percent, reflecting an estimate of our cost of capital and risks associated with the underlying assets.


(3)	Relates to an NGL pipeline near the Houston Ship Channel region which we anticipate will be underutilized for the foreseeable future. The estimated fair value was primarily determined by using a market approach based on our analysis of observable inputs in the principal market.


(4)	Relates primarily to project development costs associated with an olefins pipeline project in the Gulf Coast region, the likelihood of completion of which is now considered remote. The estimated fair value of the remaining pipe and equipment considered a market approach based on our analysis of observable inputs in the principal market, as well as an estimate of replacement cost.

(5)

Relates to our Canadian operations. We designated these operations as held for sale as of June 30, 2016. As a result, we measured the fair value of the disposal group, resulting in an impairment charge. The estimated fair value was determined by a market approach based primarily on inputs received in the marketing process and reflected our estimate of the potential assumed proceeds. We disposed of our Canadian operations through a sale during the third quarter of 2016.


(6)	Relates to certain gathering assets within the Mid-Continent region. The estimated fair value was determined by a market approach based on our analysis of observable inputs in the principal market.


(7)	Reflects multiple individually insignificant impairments and write-downs of other certain assets that may no longer be in use or are surplus in nature for which the fair value was determined to be lower than the carrying value.

(8)

Relates to Williams Partners’ previously owned interest in DBJV and current equity-method investment in Laurel Mountain. Our carrying values in these equity-method investments had been written down to fair value at December 31, 2015. Our first-quarter 2016 analysis reflected higher discount rates for both of these equity-method investments, along with lower natural gas prices for Laurel Mountain. We estimated the fair value of these equity-method investments using an income approach based on expected future cash flows and appropriate discount rates. The determination of estimated future cash flows involved significant assumptions regarding gathering volumes and related capital spending. Discount rates utilized ranged from 13.0 percent to 13.3 percent and reflected increases in our estimated cost of capital, revised estimates of expected future cash flows, and risks associated with the underlying businesses.