Revenue Recognition Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2018

Disaggregation of Revenue [Table Text Block]

The following table presents our revenue disaggregated by major service line:



	Northeast Midstream		Atlantic- Gulf Midstream		West Midstream		Transco		Northwest Pipeline		Other		Intercompany Eliminations			Total
	(Millions)
Three Months Ended March 31, 2018
Revenues from contracts with customers:
Service revenues:
Non-regulated gathering, processing, transportation, and storage:
Monetary consideration	$	202	$	137	$	408	$	—	$	—	$	—	$	(18	)	$	729
Commodity consideration	4		15		82		—		—		—		—			101
Regulated interstate natural gas transportation and storage	—		—		—		461		112		—		(1		)	572
Other	21		6		11		—		—		8		(6		)	40
Total service revenues	227		158		501		461		112		8		(25		)	1,442
Product Sales:
NGL and natural gas	98		68		521		25		—		—		(85		)	627
Other	—		—		4		—		—		—		—			4
Total product sales	98		68		525		25		—		—		(85		)	631
Total revenues from contracts with customers	325		226		1,026		486		112		8		(110		)	2,073
Other revenues (1)	5		2		5		3		—		—		—			15
Total revenues	$	330	$	228	$	1,031	$	489	$	112	$	8	$	(110	)	$	2,088

(1)

We provide management services to operated joint ventures and other investments for which we receive a management fee that is categorized as Service revenues in our Consolidated Statement of Income. These management fees do not constitute revenue from contracts with customers. Product sales in our Consolidated Statement of Income include amounts associated with our derivative contracts that are not within the scope of ASC 606.

Contract with Customer, Asset and Liability [Table Text Block]

The following table presents a reconciliation of the beginning and ending balances of our contract assets for the period ended March 31, 2018:



	2018
	(Millions)
Balance at January 1	$	4
Revenue recognized in excess of cash received	20
Minimum volume commitments invoiced	—
Balance at March 31	$	24

Contract with Customer, Liability [Table Text Block]

The following table presents a reconciliation of the beginning and ending balances of our contract liabilities for the period ended March 31, 2018:



	2018
	(Millions)
Balance at January 1	$	1,596
Payments received and deferred	92
Recognized in revenue	(114		)
Balance at March 31	$	1,574

Contract with Customer, Liablity Expected Timing of Revenue Recognition [Table Text Block]

The following table presents the amount of the contract liabilities balance as of March 31, 2018, expected to be recognized as revenue in each of the next five years as performance obligations are expected to be satisfied:



	(Millions)
2018 (remainder)	$	251
2019	252
2020	120
2021	100
2022	94
2023	88
Thereafter	669

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]

The following table presents the transaction price allocated to the remaining performance obligations under certain contracts as of March 31, 2018. These primarily include long-term contracts containing MVCs associated with our midstream businesses, fixed payments associated with offshore production handling, and reservation charges on contracted capacity on our gas pipeline firm transportation contracts with customers, as well as storage capacity contracts. Amounts included in the table below for our interstate natural gas pipeline businesses reflect the rates for such services in our current FERC tariffs for the life of the related contracts; however, these rates may change based on future tariffs approved by the FERC and the amount and timing of these changes is not currently known. As a practical expedient permitted by ASC 606, this table excludes variable consideration as well as consideration in contracts that is recognized in revenue as billed. It also excludes consideration received prior to March 31, 2018, that will be recognized in future periods (see above for Contract Liabilities and the expected recognition of those amounts within revenue). As noted above, certain of our contracts contain evergreen and other renewal provisions for periods beyond the initial term of the contract. The remaining performance obligation as of March 31, 2018, does not consider potential future performance obligations for which the renewal has not been exercised. The table below also does not include contracts with customers for which the underlying facilities have not received FERC authorization to be placed into service.



	(Millions)
2018 (remainder)	$	1,927
2019	2,410
2020	2,210
2021	1,891
2022	1,758
2023	1,566
Thereafter	11,679
Total	$	23,441

Contract With Customer Accounts Receivable [Table Text Block]

The following is a summary of our Trade accounts and other receivables as it relates to contracts with customers:



	March 31, 2018
	(Millions)
Accounts receivable related to revenues from contracts with customers	$	704
Other accounts receivable	39
Total reflected in Trade accounts and other receivables	$	743

Revenue Recognition Modified Retrospective Adoption Impact [Table Text Block]

The following table depicts the impact of the adoption of ASC 606 on our 2018 financial statements. The adjustment to Intangible assets – net of accumulated amortization in the table below relates to the recognition under ASC 606 of contract assets for MVC-related contracts associated with a 2014 acquisition. The recognition of these contract assets resulted in a lower purchase price allocation to intangible assets. The adoption of ASC 606 did not result in adjustments to total operating, investing, or financing cash flows.



	As Reported			Adjustments resulting from adoption of ASC 606			Balance without adoption of ASC 606
	(Millions)
Consolidated Statement of Income
Three Months Ended March 31, 2018
Service revenues	$	1,351		$	5		$	1,356
Service revenues – commodity consideration	101			(101		)	—
Product sales	636			10			646
Total revenues	2,088			(86		)	2,002
Product costs	613			(55		)	558
Processing commodity expenses	35			(35		)	—
Operating and maintenance expenses	357			(1		)	356
Depreciation and amortization expenses	431			1			432
Total costs and expenses	1,597			(90		)	1,507
Operating income (loss)	491			4			495
Interest incurred	(282		)	3			(279		)
Interest capitalized	9			(2		)	7
Income (loss) before income taxes	325			5			330
Net income (loss)	270			5			275
Less: Net income (loss) attributable to noncontrolling interests	118			2			120
Net income (loss) attributable to The Williams Companies, Inc.	152			3			155

Consolidated Statement of Comprehensive income
Three Months Ended March 31, 2018
Net income (loss)	$	270		$	5		$	275
Comprehensive income (loss)	276			5			281
Less: Comprehensive income (loss) attributable to noncontrolling interests	119			2			121
Comprehensive income (loss) attributable to The Williams Companies, Inc.	157			3			160

Consolidated Balance Sheet
March 31, 2018
Inventories	$	160		$	(8	)	$	152
Other current assets and deferred charges	204			(20		)	184
Total current assets	2,399			(28		)	2,371
Investments	6,513			(1		)	6,512
Property, plant, and equipment	40,467			(2		)	40,465
Property, plant, and equipment – net	28,847			(2		)	28,845
Intangible assets – net of accumulated amortization	8,644			63			8,707
Regulatory assets, deferred charges, and other	649			(4		)	645
Total assets	47,052			28			47,080
Deferred income tax liabilities	3,196			27			3,223
Regulatory liabilities, deferred income, and other	4,410			(125		)	4,285
Retained deficit	(8,587		)	87			(8,500		)
Total stockholders’ equity	9,473			87			9,560
Noncontrolling interests in consolidated subsidiaries	6,430			39			6,469
Total equity	15,903			126			16,029
Total liabilities and equity	47,052			28			47,080

Consolidated Statement of Changes in Equity
March 31, 2018
Adoption of ASC 606	$	(121	)	$	121		$	—
Net income (loss)	270			5			275
Net increase (decrease) in equity	(272		)	126			(146		)
Balance - March 31, 2018	15,903			126			16,029