Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets [Text Block]

Note 11 – Goodwill and Other Intangible Assets

Goodwill

Changes in the carrying amount of goodwill, included in Intangible assets – net of accumulated amortization in Williams’ Consolidated Balance Sheet, by reportable segment for the years indicated are as follows:

	Transmission & Gulf of America		West		Total
	(Millions)
December 31, 2022	$	—	$	—	$	—
MountainWest Acquisition (Note 3)	400		—		400
Cureton Acquisition (Note 3)	—		6		6
RMM Acquisition (Note 3)	—		57		57
December 31, 2023	400		63		463
Cureton Acquisition (Note 3)	—		5		5
RMM Acquisition (Note 3)	—		(2)		(2)
December 31, 2024	$	400	$	66	$	466

Goodwill is not subject to amortization, but is evaluated at least annually for impairment or more frequently if impairment indicators are present. Williams did not identify or recognize any impairments to goodwill in connection with the evaluation of goodwill for impairment during the year ended December 31, 2024.

Other Intangible Assets

The gross carrying amount and accumulated amortization of other intangible assets, included in Intangible assets – net of accumulated amortization in Williams’ Consolidated Balance Sheet, at December 31 are as follows:

	2024				2023
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(Millions)
Customer relationships	$	10,239	$	(3,523)	$	10,237	$	(3,155)
Transportation and storage capacity contracts	267		(244)		267		(223)
Other	6		(2)		6		(2)
Other intangible assets	$	10,512	$	(3,769)	$	10,510	$	(3,380)

Customer Relationships

Customer relationships primarily relate to gas gathering, processing, and fractionation contractual customer relationships recognized in acquisitions. Contractual customer relationships are being amortized on a straight-line basis over periods of up to 30 years, which represents the term over which the contractual customer relationships are expected to contribute to cash flows.

Williams expenses costs incurred to renew or extend the terms of its gas gathering, processing, and fractionation contracts with customers. Although a significant portion of the expected future cash flows associated with these contractual customer relationships are dependent on the ability to renew or extend the arrangements beyond the initial contract periods, these expected future cash flows are significantly influenced by the scope and pace of Williams’ producer customers’ drilling programs. Once producer customers’ wells are connected to Williams’ gathering infrastructure, their likelihood of switching to another provider before the wells are abandoned is reduced due to the significant capital investment required.

The amortization expense related to customer relationships was $368 million, $360 million, and $353 million in 2024, 2023, and 2022, respectively. The estimated amortization expense for each of the next five succeeding fiscal years is $368 million, $364 million, $360 million, $360 million, and $360 million.

Transportation and Storage Capacity Contracts

Certain transportation and storage capacity contracts were recognized as intangible assets as part of the acquisition of Sequent in 2021. The amortization expense related to transportation and storage capacity contracts was $21 million, $51 million, and $158 million in 2024, 2023, and 2022, respectively. The estimated amortization expense for each of the next five succeeding fiscal years is $10 million, $7 million, $4 million, $2 million, and $0 million.