Asset Sales and Other Accruals

12 Months Ended

Dec. 31, 2012

Asset Sales and Other Accruals [Abstract]

Asset Sales and Other Accruals

Note 5. Asset Salesand Other Accruals

The following table presents significant gains or losses reflected in other(income) expense – netwithin costs and expenses:

			Years Ended December 31,
			2012		2011		2010
			(Millions)
Williams Partners
	Project feasibility costs		$	21	$	10	$	8
	Capitalization of project feasibility costs previously expensed			(19)		(11)		(1)
	Gains on sales of certain assets			(6)		-		(12)
	Involuntary conversion gains			-		(3)		(18)
	Accrual of regulatory liability related to overcollection of certain employee
		expenses		4		9		10
Williams NGL & Petchem Services
	Gulf Liquids litigation contingency accrual reduction (see Note 17)			-		(19)		-

The reversals of project feasibility costs from expense to capital at Williams Partners are associated with natural gas pipeline expansion projects. These reversals were made upon determining that the related projects were probable of development. These costs are now included in the capital costs of the projects, which we believe are probable of recovery through the project rates.

Additional Items

We detected a leak in an underground cavern at our Eminence Storage Field in Mississippi on December 28, 2010.  We recorded $2 million, $15 million, and $5 million of charges to operating and maintenance expenses at Williams Partners during 2012, 2011, and 2010, respectively, primarily related to assessment and monitoring costs incurred to ensure the safety of the surrounding area.

We engaged a consulting firm in 2012 to assist in better aligning resources to support our business strategy following the spin-off of WPX. In 2012, we recorded $26 million of reorganization-related costs, including consulting costs, to selling, general, and administrative expenses.

We completed a strategic restructuring transaction in the first quarter of 2010 that involved significant debt issuances, retirements, and amendments. During 2010, we incurred $45 million of related transaction costs reflected in selling, general, and administrative expenses, of which $7 million is attributable to noncontrolling interests.

In conjunction with the Gulf Liquids litigation contingency accrual reduction noted in the table above, Williams NGL & Petchem Services also reduced an accrual for the associated interest of $14 million in 2011, which is reflected in interest incurred. (See Note 17.)

In conjunction with the completion of a tender offer for a portion of our debt in the fourth quarter of 2011 andthe 2010 strategic restructuring previously discussed, we incurred $271 million and $606 million, respectively, of early debt retirement costs, consisting primarily of cash premiums.