Other Income and Expenses

12 Months Ended

Dec. 31, 2018

Other Income and Expenses [Abstract]

Other Income and Expenses [Text Block]

Note 7 – Other Income and Expenses

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

	Years Ended December 31,
	2018			2017			2016
	(Millions)
Atlantic-Gulf
Amortization of regulatory assets associated with asset retirement obligations	$	33		$	33		$	33
Accrual of regulatory liability related to overcollection of certain employee expenses	22			22			25
Project development costs related to Constitution (Note 4)	4			16			28
Gains on asset retirements	(12		)	—			(11		)
West
Gains on contract settlements and terminations	—			(15		)	—
Regulatory charge per approved rates related to Tax Reform	24			—			—
Charge for regulatory liability associated with the decrease in Northwest Pipeline’s estimated deferred state income tax rates following WPZ Merger	12			—			—
Other
Gain on sale of Refinery Grade Propylene Splitter	—			(12		)	—
Loss on sale of Canadian operations (Note 3)	—			5			66
Net foreign currency exchange (gains) losses (1)	—			—			10
Gain on sale of unused pipe	—			—			(10		)
Benefit of regulatory asset associated with increase in Transco’s estimated deferred state income tax rate following WPZ Merger	(37		)	—			—

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(1) Primarily relates to gains and losses incurred on foreign currency transactions and the remeasurement of U.S. dollar-denominated current assets and liabilities within our former Canadian operations (see Note 3 – Divestitures).

Additional Items

Certain additional items included in the Consolidated Statement of Operations are as follows:

• Service revenuesfor the year ended December 31, 2016, includes $173 million associated with the amortization of deferred income related to the restructuring of certain gas gathering contracts in the Barnett Shale and Mid-Continent regions within the West segment.

• Service revenues for the year ended December 31, 2016 were reduced by $15 million related to potential refunds associated with a ruling received in certain rate case litigation within the Atlantic-Gulf segment.

• Selling, general, and administrative expenses for the year ended December 31, 2018, includes a $35 million charge associated with a charitable contribution of preferred stock to The Williams Companies Foundation, Inc. (a not-for-profit corporation) within the Other segment (see Note 15 – Stockholders' Equity). Selling, general, and administrative expenses for the year ended December 31, 2018, also includes $20 million for WPZ Merger related costs within the Other segment.

• Selling, general, and administrative expensesand Operating and maintenance expenses for the year ended December 31, 2017, included $22 million in severance and other related costs within the Other segment. The year ended December 31, 2016, included $42 million in severance and other related costs associated with an approximate 10 percent reduction in workforce in the first quarter of 2016, comprised of $3 million associated with the Northeast G&P segment, $8 million associated with the Atlantic-Gulf segment, $13 million associated with the West segment, and $18 million associated with the Other segment.

• Selling, general, and administrative expenses for the years ended December 31, 2017 and 2016 included $9 million and $47 million, respectively, of costs associated with our evaluation of strategic alternatives within the Other segment. Selling, general, and administrative expenses for the year ended December 31, 2016, also included $61 million of project development costs related to a proposed propane dehydrogenation facility in Alberta, Canada within the Other segment. Beginning in the first quarter of 2016, these costs did not qualify for capitalization.

• Other income (expense) – net below Operating income (loss) includes $89 million, $71 million, and $66 million for equity AFUDC primarily within the Atlantic-Gulf segment for the years ended December 31, 2018, 2017, and 2016, respectively. Other income (expense) – netbelow Operating income (loss)also includes $35 million, $52 million, and $23 million for the years ended December 31, 2018, 2017, and 2016, respectively, of income associated with regulatory assets related to the effects of deferred taxes on equity funds used during construction primarily within the Other segment.

• Other income (expense) – net below Operating income (loss) for the year ended December 31, 2018, includes a $7 million net loss associated with the March 28, 2018, early retirement of $750 million of 4.875 percent senior unsecured notes that were due in 2024. The net loss within the Other segment reflects $34 million in premiums paid, partially offset by $27 million of unamortized premium. The year ended December 31, 2017, included a net gain of $30 million associated with the February 23, 2017, early retirement of $750 million of 6.125 percent senior unsecured notes that were due in 2022 and a net loss of $3 million associated with the July 3, 2017, early retirement of $1.4 billion of 4.875 percent senior unsecured notes that were due in 2023. The net gain for the February 23, 2017, early retirement within the Other segment reflects $53 million of unamortized premium, partially offset by $23 million in premiums paid. The net loss for the July 3, 2017, early retirement within the Other segment reflects $51 million of unamortized premium, offset by $54 million in premiums paid (see Note 14 – Debt, Banking Arrangements, and Leases).

• Other income (expense) – net below Operating income (loss) includes settlement charge expense related to the program to pay out certain deferred vested pension benefits as follows (see Note 10 – Employee Benefit Plans):

	Years Ended December 31,
	2018		2017
	(Millions)
Atlantic-Gulf	$	7	$	15
Northeast	4		7
West	6		13
Other	5		35

• Other income (expense) – net below Operating income (loss) for the year ended December 31, 2017, included a $102 million charge for regulatory assets associated with the effects of deferred taxes on equity funds used during construction as a result of Tax Reform, comprised of $33 million within the Atlantic-Gulf segment, $6 million within the West segment, and $63 million within the Other segment (see Note 1 – General, Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies).