Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Impact of New Accounting Pronouncements

The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements:



CONSOLIDATED BALANCE SHEET	Impact of Change in Accounting Policy
millions	As Reported		Without Adoption of Topic 606		Effect of Change Increase/(Decrease)
September 30, 2018
Assets
Other current assets	$	397	$	395	$	2
Net properties and equipment	28,744		28,697		47
Other assets	2,292		2,282		10
Liabilities
Other current liabilities	1,502		1,494		8
Deferred income taxes	2,455		2,461		(6		)
Other	4,043		3,932		111
Equity
Total equity	11,237		11,291		(54		)

2. Revenue from Contracts with Customers (Continued)



CONSOLIDATED STATEMENT OF INCOME	Impact of Change in Accounting Policy
millions	As Reported		Without Adoption of Topic 606		Effect of Change Increase/(Decrease)
Three Months Ended September 30, 2018
Revenues
Gathering, processing, and marketing sales	$	421	$	717	$	(296	)
Gains (losses) on divestitures and other, net	90		89		1
Expenses
Gathering, processing, and marketing	256		551		(295		)
Income tax expense (benefit)	256		254		2
Net income (loss) attributable to noncontrolling interests	64		71		(7		)
Net Income (Loss) Attributable to Common Stockholders	$	363	$	358	$	5

Nine Months Ended September 30, 2018
Revenues
Gathering, processing, and marketing sales	$	1,163	$	1,944	$	(781	)
Gains (losses) on divestitures and other, net	232		233		(1		)
Expenses
Gathering, processing, and marketing	745		1,520		(775		)
Income tax expense (benefit)	507		507		—
Net income (loss) attributable to noncontrolling interests	105		111		(6		)
Net Income (Loss) Attributable to Common Stockholders	$	513	$	514	$	(1	)

Schedule of Disaggregation of Revenue

The following table disaggregates revenue by significant product type and segment:



millions	Exploration & Production			WES Midstream			Other Midstream		Other and Intersegment Eliminations			Total
Three Months Ended September 30, 2018
Oil sales	$	2,572		$	—		$	—	$	—		$	2,572
Natural-gas sales	232			—			—		—			232
Natural-gas liquids sales	382			—			—		—			382
Gathering, processing, and marketing sales ⁽¹⁾	—			511			113		1			625
Other, net	9			—			—		31			40
Total Revenue from Customers	$	3,195		$	511		$	113	$	32		$	3,851
Gathering, processing, and marketing sales ⁽²⁾	—			(3		)	3		(204		)	(204		)
Gains (losses) on divestitures, net	5			—			1		(3		)	3
Other, net	(8		)	52			12		(9		)	47
Total Revenue from Other than Customers	$	(3	)	$	49		$	16	$	(216	)	$	(154	)
Total Revenue and Other	$	3,192		$	560		$	129	$	(184	)	$	3,697

Nine Months Ended September 30, 2018
Oil sales	$	6,964		$	—		$	—	$	—		$	6,964
Natural-gas sales	682			—			—		—			682
Natural-gas liquids sales	992			—			—		—			992
Gathering, processing, and marketing sales ⁽¹⁾	—			1,438			255		83			1,776
Other, net	16			—			—		71			87
Total Revenue from Customers	$	8,654		$	1,438		$	255	$	154		$	10,501
Gathering, processing, and marketing sales ⁽²⁾	—			(6		)	6		(613		)	(613		)
Gains (losses) on divestitures, net	24			—			10		(3		)	31
Other, net	(21		)	113			30		(8		)	114
Total Revenue from Other than Customers	$	3		$	107		$	46	$	(624	)	$	(468	)
Total Revenue and Other	$	8,657		$	1,545		$	301	$	(470	)	$	10,033

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⁽¹⁾	The amount in Other and Intersegment Eliminations primarily represents sales of third-party natural gas and NGLs of $328 million and intercompany eliminations of $(312) million for the three months ended September 30, 2018, and sales of third-party natural gas and NGLs of $813 million and intercompany eliminations of $(715) million for the nine months ended September 30, 2018.


⁽²⁾	The amount in Other and Intersegment Eliminations represents purchases of third-party natural gas and NGLs. Although these purchases are reported net in gathering, processing, and marketing sales in the Company’s Consolidated Statements of Income, they are shown separately on this table, as the purchases are not considered revenue from customers.

Schedule of Contract with Customer Liabilities Activity

The following table summarizes the current period activity related to contract liabilities from contracts with customers:



millions
Balance at December 31, 2017	$	37
Increase due to cumulative effect of adopting Topic 606	98
Increase due to cash received, excluding revenues recognized in the period ⁽¹⁾	46
Decrease due to revenue recognized ⁽²⁾	(30		)
Balance at September 30, 2018	$	151

Contract liabilities at September 30, 2018
Other current liabilities	$	23
Other long-term liabilities - other	128
Total contract liabilities from contracts with customers	$	151

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⁽¹⁾	Includes $(6) million for the three months ended September 30, 2018.


⁽²⁾	Includes $(9) million for the three months ended September 30, 2018.

Schedule of Expected Revenue Recognition from Satisfaction of Performance Obligations

Therefore, the following table represents only a small portion of Anadarko’s expected future consolidated revenues as future revenue from the sale of most products and services is dependent on future production or variable customer volumes and variable commodity prices for those volumes.



millions	Exploration & Production		WES Midstream		Other Midstream		Other and Intersegment Eliminations			Total
Remainder of 2018	$	27	$	124	$	31	$	(96	)	$	86
2019	104		480		204		(441		)	347
2020	103		545		293		(606		)	335
2021	103		525		361		(672		)	317
2022	7		529		417		(739		)	214
Thereafter	65		2,192		3,107		(4,662		)	702
Total	$	409	$	4,395	$	4,413	$	(7,216	)	$	2,001