Asset Sales and Other Accruals

6 Months Ended

Jun. 30, 2011

Asset Sales and Other Accruals [Abstract]

Note 4. Asset Sales and Other Accruals

Other (income) expense — net within segment costs and expenses in 2011 includes $10 million related to the reversal of project feasibility costs from expense to capital at Williams Partners, associated with a natural gas pipeline expansion project, upon determining that the related project was probable of development. These costs will be included in the capital costs of the project, which we believe are probable of recovery through the project rates.

Additional Items

We completed a strategic restructuring transaction in the first quarter of 2010 that involved significant debt issuances, retirements and amendments. During the six months ended June 30, 2010, we incurred significant costs related to these transactions, as follows:

	•		$606 million of early debt retirement costs consisting primarily of cash premiums;

	•		$41 million of other transaction costs reflected in general corporate expenses, of which $5 million is attributable to noncontrolling interests;

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$4 million of accelerated amortization of debt costs related to the amendments of credit facilities, reflected in other income (expense) — net below operating income (loss).

Exploration & Production recorded a $14 million unfavorable adjustment to costs and operating expenses for the six months ended June 30, 2011, related to the correction of an error associated with our estimate of accrued minimum annual charges for compression service contracts in the Powder River basin.

We recognized an $11 million gain in the first quarter of 2011 on the 2010 sale of our interest in Accroven SRL, reflecting the receipt of the first of six quarterly payments, which was originally due from the buyer in October 2010. We also recognized a $13 million gain in the second quarter of 2010 related to cash received at the closing of this sale. These gains are reflected within investing income — net at Other. Payments are recognized as income upon receipt until such point future collections are reasonably assured.