Investing Activities

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investing Activities [Text Block]

Note 5 – Investing Activities

The following table presents certain items reflected in Other investing income (loss) – net in the Consolidated Statement of Income:

	Three Months Ended   September 30,					Nine Months Ended   September 30,
	2019			2018		2019			2018
	(Millions)
Impairment of equity-method investments (Note 13)	$	(114	)	$	—	$	(186	)	$	—
Gain (loss) on deconsolidation of businesses	—			—		(2		)	62
Gain on disposition of equity-method investments	—			—		122			—
Other	7			2		12			12
Other investing income (loss) – net	$	(107	)	$	2	$	(54	)	$	74

Jackalope Deconsolidation

During the second quarter of 2018, we deconsolidated our 50 percent interest in Jackalope. We recorded our interest in Jackalope as an equity-method investment at its estimated fair value, resulting in a deconsolidation gain of

$62 million. We estimated the fair value of our interest to be $310 million using an income approach based on expected future cash flows and an appropriate discount rate (a Level 3 measurement within the fair value hierarchy). The determination of expected future cash flows involved significant assumptions regarding gathering and processing volumes and related capital spending. A 10.9 percent discount rate was utilized and reflected our estimate of the cost of capital as impacted by market conditions and risks associated with the underlying business. The deconsolidated carrying value of the net assets of Jackalope included $47 million of goodwill.

Sale of Jackalope

In April 2019, we sold our 50 percent equity-method interest in Jackalope for $485 million in cash, resulting in a gain on the disposition of $122 million.