Goodwill and Intangible Assets (Notes)

9 Months Ended

Sep. 30, 2020

Goodwill Disclosure [Abstract]

Goodwill Disclosure [Text Block]

Goodwill

During the first quarter of 2020, certain areas of our business, as well as those of other midstream companies in our peer group, suffered a significant decline in market value. This indicated both a reduction of estimated enterprise value and an increase to our estimated discount rate. We performed an analysis to determine the estimated fair value of the North reporting unit as of March 31, 2020 and concluded that its carrying value exceeded its fair value by more than the recorded amount of goodwill within the reporting unit, resulting in an impairment charge of $159 million.

The significant decline in commodity prices and demand have decreased forecasted cash flows such that, while in excess of asset book value on an undiscounted basis, they were not sufficient to recover the value of allocated goodwill in the North reporting unit.

The carrying amount of goodwill in each of our reportable segments was as follows:

	As of September 30, 2020						As of September 30, 2019
	Gathering and Processing		Logistics and Marketing		Total		Gathering and Processing		Logistics and Marketing		Total
	(millions)
Balance, beginning of period	$	159	$	—	$	159	$	159	$	72	$	231
Impairment	(159)		—		(159)		—		(35)		(35)
Dispositions	—		—		—		—		(37)		(37)
Balance, end of period	$	—	$	—	$	—	$	159	$	—	$	159

Intangible assets consist of customer contracts, including commodity purchase, transportation and processing contracts and related relationships. The gross carrying amount and accumulated amortization of these intangible assets are included in the accompanying consolidated balance sheets as intangible assets, net, and are as follows:

	September 30,		December 31,
	2020		2019
	(millions)
Gross carrying amount	$	145	$	145
Accumulated amortization	(88)		(84)
Accumulated impairment	(11)		—
Intangible assets, net	$	46	$	61