Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Assets and Liabilities Accounted for at Fair Value on Recurring Basis

The following tables present assets and liabilities accounted for at fair value on a recurring basis as of December 31, 2016 and 2015 by fair value hierarchy level. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty, including any related cash collateral as shown below; however, fair value amounts by hierarchy level are presented on a gross basis in the following tables.

	December 31, 2016
	Fair Value Hierarchy
(In millions)	Level 1		Level 2		Level 3		Netting and Collateral(a)			Net Carrying Value on Balance Sheet(b)		Collateral Pledged Not Offset
Commodity derivative instruments, assets	$	688	$	—	$	—	$	(688	)	$	—	$	126
Other assets	2		—		—		N/A			2		—
Total assets at fair value	$	690	$	—	$	—	$	(688	)	$	2	$	126
Commodity derivative instruments, liabilities	$	712	$	—	$	6	$	(712	)	$	6	$	—
Embedded derivatives in commodity contracts(c)	—		—		54		—			54		—
Contingent consideration, liability(d)	—		—		130		N/A			130		—
Total liabilities at fair value	$	712	$	—	$	190	$	(712	)	$	190	$	—

	December 31, 2015
	Fair Value Hierarchy
(In millions)	Level 1		Level 2		Level 3		Netting and Collateral(a)			Net Carrying Value on Balance Sheet(b)		Collateral Pledged Not Offset
Commodity derivative instruments, assets	$	104	$	2	$	7	$	(62	)	$	51	$	—
Other assets	2		—		—		N/A			2		—
Total assets at fair value	$	106	$	2	$	7	$	(62	)	$	53	$	—
Commodity derivative instruments, liabilities	$	39	$	—	$	—	$	(39	)	$	—	$	—
Embedded derivatives in commodity contracts(c)	—		—		32		$	—		32		—
Contingent consideration, liability(d)	—		—		317		N/A			317		—
Total liabilities at fair value	$	39	$	—	$	349	$	(39	)	$	349	$	—

^(a)  Represents the impact of netting assets, liabilities and cash collateral when a legal right of offset exists. As of December 31, 2016, cash collateral of $24 million was netted with mark-to-market derivative liabilities. As of December 31, 2015, cash collateral of $23 million was netted with mark-to-market derivative assets.

^(b)  We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet.

^(c)  Includes $13 million and $5 million classified as current as of December 31, 2016 and 2015, respectively.

^(d)  Includes $130 million and $196 million classified as current as of December 31, 2016and 2015, respectively.

Reconciliation of Net Beginning and Ending Balances Recorded for Net Assets and Liabilities Classified as Level 3

The following is a reconciliation of the net beginning and ending balances recorded for net assets and liabilities classified as Level 3 in the fair value hierarchy.

(In millions)	2016			2015			2014
Beginning balance	$	342		$	478		$	625
Contingent consideration payment(a)	(200		)	(189		)	(180		)
Net derivative positions assumed - MarkWest Merger	—			31			—
Unrealized and realized losses included in net income	55			20			33
Settlements of derivative instruments	(7		)	2			—
Ending balance	$	190		$	342		$	478
The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized (gains) losses relating to assets still held at the end of period:
Derivative instruments	$	32		$	(7	)	$	—
Contingent consideration agreement	13			28			33
Total	$	45		$	21		$	33

^(a)  On the consolidated statements of cash flows for 2016, 2015 and 2014, $164 million, $175 million and $172 million, respectively, of the contingent earnout payment to BP was included as a financing activity with the remainder included as an operating activity.

Assets Measured at Fair Value on a Nonrecurring Basis

The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition.

	Year Ended December 31,
	2016				2015				2014
(In millions)	Fair Value		Impairment		Fair Value		Impairment		Fair Value		Impairment
Equity method investments	$	42	$	356	$	—	$	—	$	—	$	—
Goodwill	—		130		—		—		—		—
Property, plant and equipment, net	—		—		—		144		—		—
Other noncurrent assets	—		—		—		—		—		11

Financial Instruments at Fair Value, Excluding Derivative Financial Instruments and Contingent Consideration

The following table summarizes financial instruments on the basis of their nature, characteristics and risk at December 31, 2016 and 2015, excluding the derivative financial instruments and contingent consideration reported above.

	December 31,
	2016				2015
(In millions)	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial assets:
Investments	$	25	$	2	$	33	$	2
Other	21		21		35		33
Total financial assets	$	46	$	23	$	68	$	35
Financial liabilities:
Long-term debt(a)	$	10,892	$	10,297	$	11,366	$	11,628
Deferred credits and other liabilities	121		109		136		135
Total financial liabilities	$	11,013	$	10,406	$	11,502	$	11,763

^(a)  Excludes capital leases and debt issuance costs, however, includes amount classified as debt due within one year.