Cover Page
Cover Page $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Cover page. | |
Document Type | 10-K |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2019 |
Document Transition Report | false |
Entity File Number | 1-2921 |
Entity Registrant Name | Panhandle Eastern Pipe Line Co LP |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 44-0382470 |
Entity Address, Address Line One | 8111 Westchester Drive |
Entity Address, Address Line Two | Suite 600 |
Entity Address, City or Town | Dallas |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 75225 |
City Area Code | 214 |
Local Phone Number | 981-0700 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Public Float | $ | $ 0 |
Entity Common Stock, Shares Outstanding | shares | 0 |
Amendment Flag | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0000076063 |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Operating Lease, Liability, Noncurrent | $ 5 | $ 0 |
Operating Lease, Right-of-Use Asset | 5 | 0 |
Current assets: | ||
Cash and cash equivalents | 0 | 20 |
Accounts receivable, net | 45 | 43 |
Accounts receivable from related companies | 9 | 11 |
Exchanges receivable | 9 | 8 |
Inventories | 61 | 98 |
Other current assets | 7 | 6 |
Total current assets | 131 | 186 |
Property, plant and equipment | ||
Total property, plant and equipment | 3,281 | 3,196 |
Accumulated depreciation | (607) | (507) |
Net property, plant and equipment | 2,674 | 2,689 |
Other Assets, Noncurrent | 159 | 108 |
Goodwill | 0 | 12 |
Total assets | 2,969 | 2,995 |
Current liabilities: | ||
Current maturities of long-term debt | 0 | 152 |
Accounts payable | 11 | 6 |
Accounts payable to related companies | 34 | 46 |
Exchanges payable | 47 | 85 |
Other current liabilities | 70 | 69 |
Total current liabilities | 162 | 358 |
Long-term debt, less current maturities | 247 | 249 |
Note payable to related party | 732 | 356 |
Deferred income taxes | 0 | 437 |
Other non-current liabilities | 221 | 233 |
Commitments and contingencies | ||
Partners’ capital: | ||
Partners’ capital | 1,626 | 1,409 |
Accumulated other comprehensive loss | (24) | (47) |
Total partners’ capital | 1,602 | 1,362 |
Total liabilities and partners’ capital | $ 2,969 | $ 2,995 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING REVENUES: | |||
Total operating revenues | $ 578 | $ 574 | $ 480 |
Cost of Goods and Services Sold | 0 | 4 | 3 |
OPERATING EXPENSES: | |||
Operating, maintenance and general | 193 | 215 | 199 |
General and Administrative Expense | 30 | 30 | 28 |
Depreciation and amortization | 112 | 122 | 127 |
Asset Impairment Charges | 12 | 0 | 389 |
Total operating expenses | 347 | 371 | 746 |
Operating Income (Loss) | 231 | 203 | (266) |
OTHER INCOME (EXPENSE): | |||
Interest expense, net | (17) | (28) | (46) |
Income from unconsolidated affiliates | (25) | (13) | 0 |
Interest income — affiliates | 0 | 0 | 10 |
Other, net | (2) | (5) | (6) |
Total other expenses, net | (44) | (46) | (42) |
Income (Loss) from Continuing Operations Before Income Tax Expense | 187 | 157 | (308) |
Income tax expense (benefit) | (402) | 49 | (263) |
Net Income (Loss) | 589 | 108 | (45) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | 23 | (42) | (10) |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 0 | 0 | 2 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 612 | 66 | (53) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 4 | 11 | 3 |
Natural Gas, Midstream [Member] | |||
Income Statement | |||
Revenue from Contract with Customer, Including Assessed Tax | 556 | 544 | 460 |
Product and Service, Other [Member] | |||
Income Statement | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 22 | $ 30 | $ 20 |
CONSOLIDATED STATEMENT OF PARTN
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL - USD ($) $ in Millions | Total | Accumulated Other Comprehensive Income (Loss) | Limited Partner [Member] |
Balance at Dec. 31, 2016 | $ 1,461 | $ 5 | $ 1,456 |
Other comprehensive income, net of tax | (8) | (8) | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | (10) | ||
Non-Cash Equity Contribution | 8 | 0 | 8 |
Net income (loss) | (45) | 0 | (45) |
Distribution to partners | (74) | 0 | (74) |
Unit-based compensation expense | 3 | 0 | 3 |
Balance at Dec. 31, 2017 | 1,345 | (3) | 1,348 |
Other comprehensive income, net of tax | (42) | (42) | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | (42) | ||
Non-Cash Equity Contribution | 31 | 0 | 31 |
Net income (loss) | 108 | 0 | 108 |
Distribution to partners | (95) | 0 | (95) |
Panhandle Merger | (15) | 2 | (17) |
Balance at Dec. 31, 2018 | 1,362 | (47) | 1,409 |
Other comprehensive income, net of tax | 23 | 0 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | 23 | ||
Net income (loss) | 589 | 0 | 589 |
Distribution to partners | (375) | 0 | (375) |
Panhandle Merger | (3) | 0 | (3) |
Balance at Dec. 31, 2019 | $ 1,602 | $ (24) | $ 1,626 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES: | |||
Net income (loss) | $ 589 | $ 108 | $ (45) |
Reconciliation of net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 112 | 122 | 127 |
Goodwill Impairment | 12 | 0 | 389 |
Deferred income taxes | (13) | 12 | (252) |
Amortization of deferred financing fees | (4) | (13) | (24) |
Distributions of earnings received from unconsolidated affiliates | 0 | 0 | 6 |
Nonmonetary Transaction, Gain (Loss) Recognized on Transfer | 428 | ||
Income tax expense (benefit) | (402) | 49 | (263) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 0 | 0 | |
Other non-cash | 13 | 8 | 8 |
Changes in operating assets and liabilities | (51) | 31 | (49) |
Net cash flows provided by operating activities | 230 | 268 | 160 |
INVESTING ACTIVITIES: | |||
Proceeds from affiliates | 0 | 0 | 291 |
Increase (Decrease) in Notes Receivable, Related Parties, Current | 0 | 0 | (40) |
Capital expenditures | (101) | (70) | (154) |
Other | 0 | 0 | 2 |
Net cash flows (used in) provided by investing activities | (101) | (70) | 99 |
FINANCING ACTIVITIES: | |||
Distribution Made to Limited Partner, Cash Distributions Paid | (375) | (24) | (74) |
Proceeds from Related Party Debt | 759 | 497 | 113 |
Repayments of Related Party Debt | (383) | (252) | 0 |
Repayments of Long-term Debt | (150) | (400) | (300) |
Proceeds from (Payments for) Other Financing Activities | 0 | (1) | 0 |
Net cash flows used in financing activities | (149) | (180) | (261) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (20) | 18 | (2) |
CASH AND CASH EQUIVALENTS, beginning of period | 20 | 2 | 4 |
CASH AND CASH EQUIVALENTS, end of period | $ 0 | $ 20 | $ 2 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | OPERATIONS AND ORGANIZATION: PEPL and its subsidiaries primarily operate interstate pipelines that transport natural gas from the Gulf of Mexico, South Texas and the Panhandle region of Texas and Oklahoma to major United States markets in the Midwest and Great Lakes regions and natural gas storage assets and are subject to the rules and regulations of the FERC. The Company’s subsidiaries are Trunkline, Sea Robin and Southwest Gas. Southern Union Panhandle LLC, an indirect wholly-owned subsidiary of ETO, owns a 1% general partnership interest in PEPL and ETO indirectly owns a 99% limited partnership interest in PEPL. On July 1, 2019, ETO executed a series of internal restructuring transactions that resulted in PEPL becoming a subsidiary of a non-corporate subsidiary of ETO (“PEPL Restructuring”). As a result, PEPL’s tax status changed from a disregarded entity for federal income tax purposes wholly owned by a corporate entity to a disregarded entity for federal income tax purposes wholly owned by a limited partnership. In connection with this restructuring, PEPL’s tax sharing agreement with its former corporate parent was terminated, and PEPL reversed all of its existing deferred tax assets and liabilities in July 2019, which resulted in the recognition of a $428 million non-cash benefit in the consolidated statement of operations. Certain prior period amounts have been reclassified to conform to the 2019 presentation. These reclassifications had no impact on net income (loss), total partners’ capital, or cash flows. |
Estimates, Significant Accounti
Estimates, Significant Accounting Policies and Balance Sheet Detail (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | ESTIMATES, SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL: Basis of Presentation. The Company’s consolidated financial statements have been prepared in accordance with GAAP. The consolidated financial statements include the accounts of all majority-owned subsidiaries, after eliminating significant intercompany transactions and balances. Investments in which the Company has significant influence over the operations of the investee are accounted for using the equity method. The Company is subject to regulation by certain state and federal authorities. The Company has accounting policies which are in accordance with the accounting requirements and ratemaking practices of the regulatory authorities. The Company does not apply regulatory-based accounting policies, primarily due to the level of discounting from tariff rates and its inability to recover specific costs. If regulatory-based accounting policies were applied, certain transactions would be recorded differently, including, among others, recording of regulatory assets, the capitalization of an equity component of invested funds on regulated capital projects and depreciation differences. The Company periodically reviews its level of discounting and negotiated rate contracts, the length of rate moratoriums and other related factors to determine if the regulatory-based authoritative guidance should be applied. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements Change in Accounting Policy Adoption of Lease Accounting Standard In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) , which has amended the FASB Accounting Standards Codification and introduced Topic 842, Leases. On January 1, 2019, the Company has adopted Topic 842, which is effective for interim and annual reporting periods beginning on or after December 15, 2018. Topic 842 requires entities to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which historically were not recorded on the balance sheet in accordance with the prior standard. To adopt Topic 842, the Company recognized a cumulative catch-up adjustment to the opening balance sheet as of January 1, 2019 related to certain leases that existed as of that date. As permitted, we have not retrospectively modified our consolidated financial statements for comparative purposes. The adoption of the standard did not have a material impact on our consolidated financial statements. As a result of adoption, we have recorded additional net ROU lease assets and lease liabilities of approximately $6 million and $6 million , respectively, as of January 1, 2019. In addition, we have updated our business processes, systems, and internal controls to support the on-going reporting requirements under the new standard. To adopt Topic 842, the Company elected the package of practical expedients permitted under the transition guidance within the standard. The expedient package allowed us not to reassess whether existing contracts contained a lease, the lease classification of existing leases and initial direct cost for existing leases. In addition to the package of practical expedients, the Company has elected not to capitalize amounts pertaining to leases with terms less than twelve months, to use the portfolio approach to determine discount rates, not to separate non-lease components from lease components and not to apply the use of hindsight to the active lease population. Cumulative-effect adjustments made to the opening balance sheet at January 1, 2019 were as follows: Balance at December 31, 2018, as previously reported Adjustments due to Topic 842 (Leases) Balance at January 1, 2019 Assets: Operating lease right-of-use assets $ — $ 6 $ 6 Liabilities: Non-current operating lease liabilities — 6 6 Significant Accounting Policies Cash and Cash Equivalents. Cash equivalents consist of highly liquid investments, which are readily convertible into cash and have original maturities of three months or less. The Company places cash deposits and temporary cash investments with high credit quality financial institutions. At times, cash and cash equivalents may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation insurance limit. Non-cash investing and financing activities and supplemental cash flow information are as follows: Years Ended December 31, 2019 2018 2017 Non-cash investing and financing activities: Settlement of affiliate liability - tax payable $ — $ (19 ) $ (8 ) Settlement of affiliate liability - related party payables — (12 ) — Contribution of assets from affiliate — (7 ) — Distribution of non-cash assets to parent — 68 — Supplemental cash flow information: Accrued capital expenditures $ 11 $ 13 $ 11 Cash paid for interest, net of interest capitalized 23 43 75 Cash received for interest on note receivable from affiliate — — 18 Cash paid for interest on note payable to affiliate 23 13 — Inventories. System natural gas and operating supplies consist of natural gas held for operations and materials and supplies, both of which are carried at the lower of weighted average cost or market, while natural gas owed back to customers is valued at market. The natural gas held for operations that the Company does not expect to consume in its operations in the next twelve months is reflected in non-current assets. The following table presents the components of inventory: December 31, 2019 2018 Natural gas (1) $ 39 $ 79 Materials and supplies 22 19 $ 61 $ 98 (1) Natural gas volumes held for operations at December 31, 2019 and 2018 were 19.3 TBtu and 25.9 TBtu, respectively. Natural Gas Imbalances. Natural gas imbalances occur as a result of differences in volumes of natural gas received and delivered. The Company records natural gas imbalance in-kind receivables and payables at cost or market. Net imbalances that have reduced system natural gas are valued at the cost basis of the system natural gas, while net imbalances that have increased system natural gas and are owed back to customers are priced, along with the corresponding system natural gas, at market. Fuel Tracker. The fuel tracker is the cumulative balance of compressor fuel volumes owed to the Company by its customers or owed by the Company to its customers. The customers, pursuant to each pipeline’s tariff and related contracts, provide all compressor fuel to the pipeline based on specified percentages of the customer’s natural gas volumes delivered into the pipeline. The percentages are designed to match the actual natural gas consumed in moving the natural gas through the pipeline facilities, with any difference between the volumes provided versus volumes consumed reflected in the fuel tracker. The tariff of Trunkline, in conjunction with the customers’ contractual obligations, allows the Company to record an asset and direct bill customers for any fuel ultimately under-recovered. The other FERC-regulated PEPL entities record an expense when fuel is under-recovered or record a credit to expense to the extent any under-recovered prior period balances are subsequently recouped as they do not have such explicit billing rights specified in their tariffs. Liability accounts are maintained for net volumes of compressor fuel natural gas owed to customers collectively. The pipelines’ fuel reimbursement is in-kind and non-discountable. Property, Plant and Equipment. The following table presents the components of property, plant and equipment: December 31, Lives in Years 2019 2018 Land and improvements $ 4 $ 3 Buildings and improvements 6 – 46 194 158 Pipelines and equipment 5 – 46 2,556 2,556 Natural gas storage facilities 26 – 46 348 282 Other 3 – 21 139 160 Construction work in progress 40 37 Property, plant and equipment 3,281 3,196 Accumulated depreciation and amortization (607 ) (507 ) Property, plant and equipment, net $ 2,674 $ 2,689 Additions. Ongoing additions of property, plant and equipment are stated at cost. The Company capitalizes all construction-related direct labor and material costs, as well as indirect construction costs. Such indirect construction costs primarily include capitalized interest costs and labor and related costs of departments associated with supporting construction activities. The indirect capitalized labor and related costs are largely based upon results of periodic time studies or management reviews of time allocations, which provide an estimate of time spent supporting construction projects. The cost of replacements and betterments that extend the useful life of property, plant and equipment is also capitalized. The cost of repairs and replacements of minor property, plant and equipment items is charged to expense as incurred. Retirements. When ordinary retirements of property, plant and equipment occur, the original cost less salvage value is removed by a charge to accumulated depreciation and amortization, with no gain or loss recorded. When entire regulated operating units of property, plant and equipment are retired or sold, the original cost less salvage value and related accumulated depreciation and amortization accounts are removed, with any resulting gain or loss recorded in earnings. Depreciation. The Company computes depreciation expense using the straight-line method. Interest Cost Capitalized. The Company capitalizes interest on certain qualifying assets that are undergoing activities to prepare them for their intended use. Interest costs incurred during the construction period are capitalized and amortized over the life of the assets. The Company recognized capitalized interest of $2 million , $1 million and $3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Long-Lived Assets and Goodwill. Long-lived assets are required to be tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Goodwill and intangibles with indefinite lives must be tested for impairment annually or more frequently if events or changes in circumstances indicate that the related asset might be impaired. An impairment loss should be recognized only if the carrying amount of the asset/goodwill is not recoverable and exceeds its fair value. In order to test for recoverability when performing a quantitative impairment test, the Company makes estimates of projected cash flows related to the asset, which include, but are not limited to, assumptions about the use or disposition of the asset, estimated remaining life of the asset, and future expenditures necessary to maintain the asset’s existing service potential. In order to determine fair value, the Company makes certain estimates and assumptions, including, among other things, changes in general economic conditions in the Company’s operating regions, the availability and prices of natural gas, the ability to negotiate favorable sales agreements, the risks that natural gas exploration and production activities will not occur or be successful, dependence on certain significant customers and producers of natural gas, and competition from other companies, including major energy producers. If future results are not consistent with the Company’s estimates, future impairment losses that could be material may be recorded to our results of operations. The Company determines the fair value of its reporting units using a weighted combination of the discounted cash flow method and the guideline company method. Determining the fair value of a reporting unit requires judgment and the use of significant estimates and assumptions. Such estimates and assumptions include revenue growth rates, operating margins, weighted average costs of capital and future market conditions, among others. The Company believes the estimates and assumptions used in our impairment assessments are reasonable; however, variations in any of the assumptions could result in materially different calculations of fair value and determinations of whether or not an impairment is indicated. Under the discounted cash flow method, the Company determined fair value based on estimated future cash flows of each reporting unit including estimates for capital expenditures, discounted to present value using the risk-adjusted industry rate, which reflect the overall level of inherent risk of the reporting unit. Cash flow projections are derived from one year budgeted amounts and five year operating forecasts plus an estimate of later period cash flows, all of which are evaluated by management. Subsequent period cash flows are developed for each reporting unit using growth rates that management believes are reasonably likely to occur. Under the guideline company method, the Company determined the estimated fair value of each of our reporting units by applying valuation multiples of comparable publicly-traded companies to each reporting unit’s projected EBITDA and then averaging that estimate with similar historical calculations using a three year average. In addition, the Company estimated a reasonable control premium representing the incremental value that accrues to the majority owner from the opportunity to dictate the strategic and operational actions of the business. Key assumptions for the measurement of goodwill impairment is management’s estimate of future cash flows and EBITDA. These estimates are based on the annual budget for the upcoming year and forecasted amounts for multiple subsequent years. The annual budget process is typically completed near the annual goodwill impairment testing date, and management uses the most recent information for the annual impairment tests. The forecast is also subjected to a comprehensive update annually in conjunction with the annual budget process and is revised periodically to reflect new information and/or revised expectations. The estimates of future cash flows and EBITDA are subjective in nature and are subject to impacts from the business risks described in “Item 1A. Risk Factors.” Therefore, the actual results could differ significantly from the amounts used for goodwill impairment testing, and significant changes in fair value estimates could occur in a given period. During the third quarter of 2019, due to a decrease in the demand for storage on Southwest Gas assets, the Company performed an interim impairment test on the assets of Southwest Gas. As a result of the interim impairment test, the Company recognized a goodwill impairment of $12 million related to Southwest Gas, primarily due to decreases in projected future revenues and cash flows. During the fourth quarter of 2018, the Company performed goodwill impairment tests and did not record a goodwill or fixed asset impairment. During the fourth quarter of 2017, the Company performed goodwill impairment tests and recognized goodwill impairment of $262 million related to Trunkline, primarily due to decreases in projected future revenues and cash flows driven by declines in commodity prices and changes in the markets that the assets serve. The Company also recorded a $127 million fixed asset impairment related to Sea Robin, primarily due to lower utilization and expected decrease in projected future cash flows. Related Party Transactions. Related party expenses primarily include payments for services provided by ET, ETO and other affiliates. Other income includes interest income on notes receivable from related parties. Environmental Expenditures. Environmental expenditures that relate to an existing condition caused by past operations that do not contribute to current or future revenue generation are expensed. Environmental expenditures relating to current or future revenues are expensed or capitalized as appropriate. Liabilities are recorded when environmental assessments and/or clean-ups are probable and the costs can be reasonably estimated. Remediation obligations are not discounted because the timing of future cash flow streams is not predictable. Other Current Liabilities. Other current liabilities consisted of the following: December 31, 2019 2018 Deposits from customers $ 13 $ 25 Accrued expenses 21 24 Accrued capital expenditures 11 13 Current income tax payable 16 — Other 9 7 Total other current liabilities $ 70 $ 69 Other Non-Current Liabilities. Other non-current liabilities consisted of the following: December 31, 2019 2018 Pension liability $ 103 $ 117 ARO 30 26 Other 88 90 Total other non-current liabilities $ 221 $ 233 Revenues. The Company’s revenues from transportation and storage of natural gas are based on capacity reservation charges and, to a lesser extent, commodity usage charges. Reservation revenues are based on contracted rates and capacity reserved by the customers and are recognized monthly. Revenues from commodity usage charges are also recognized monthly, based on the volumes received from or delivered for the customer, based on the tariff, with any differences in volumes received and delivered resulting in an imbalance. Volume imbalances generally are settled in-kind with no impact on revenues, with the exception of Trunkline, which settles certain imbalances in cash pursuant to its tariff, and records gains and losses on such cashout sales as a component of revenue, to the extent not owed back to customers. Because the Company is subject to FERC regulation, revenues collected during the pendency of a rate proceeding may be required by FERC to be refunded in the final order. The Company establishes reserves for such potential refunds, as appropriate. Accounts Receivable and Allowance for Doubtful Accounts. The Company has a large number of customers in the electric and gas utility industries as well as oil and natural gas producers and municipalities. The large number of customers in these energy segments may impact our overall exposure to credit risk, either positively or negatively, in that the customers may be similarly affected by changes in economic or other conditions. The Company manages trade credit risk to mitigate credit losses and exposure to uncollectible trade receivables. Prospective and existing customers are reviewed regularly for creditworthiness based upon pre-established standards consistent with FERC filed tariffs to manage credit risk within approved tolerances. Customers that do not meet minimum credit standards are required to provide additional credit support in the form of a letter of credit, prepayment, or other forms of security. The Company establishes an allowance for doubtful accounts on trade receivables based on the expected ultimate recovery of these receivables and considers many factors including historical customer collection experience, general and specific economic trends, and known specific issues related to individual customers, sectors, and transactions that might impact collectability. Increases in the allowance are recorded as a component of operating expenses; reductions in the allowance are recorded when receivables are subsequently collected or written-off. Past due receivable balances are written-off when the Company’s efforts have been unsuccessful in collecting the amount due. The allowance for doubtful accounts was not material as of and during the years ended December 31, 2019 and 2018 . The following table presents the relative contribution to the Company’s total operating revenue from continuing operations of each customer that comprised at least 10% of its operating revenues: Years Ended December 31, 2019 2018 2017 Customer A 10 % 10 % 13 % Customer B 16 16 — Other top 10 customers 31 28 41 Remaining customers 43 46 46 Total percentage 100 % 100 % 100 % Accumulated Other Comprehensive Income. The main components of accumulated other comprehensive income are a net actuarial gain and prior service costs on pension and other postretirement benefit plans. Retirement Benefits. The Company recognizes the overfunded or underfunded status of defined benefit pension and other postretirement plans, measured as the difference between the fair value of the plan assets and the benefit obligation (the projected benefit obligation for pension plans and the accumulated postretirement benefit obligation for other postretirement plans). Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. Changes in the funded status of the plan are recorded in other comprehensive income in partners’ capital in the year in which the change occurs. In 2018, the Company adopted Accounting Standards Update No. 2017-07 Compensation - Retirement Benefits (Topic 715) retrospectively. It requires the service cost component to be presented with other current compensation costs for the related employees in the operating section of our consolidated statements of operations, with other components of net benefit cost presented outside of the operating income. Fair Value Measurement. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk, which is primarily comprised of credit risk (both the Company’s own credit risk and counterparty credit risk) and the risks inherent in the inputs to any applicable valuation techniques. The Company places more weight on current market information concerning credit risk (e.g. current credit default swap rates) as opposed to historical information (e.g. historical default probabilities and credit ratings). These inputs can be readily observable, market corroborated, or generally unobservable. The Company endeavors to utilize the best available information, including valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. A three-tier fair value hierarchy, which prioritizes the inputs used to measure fair value, is as follows: • Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities; • Level 2 – Observable inputs such as: (i) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical or similar assets or liabilities in markets that are not active and do not require significant adjustment based on unobservable inputs; or (iii) valuations based on pricing models, discounted cash flow methodologies or similar techniques where significant inputs (e.g., interest rates, yield curves, etc.) are derived principally from observable market data, or can be corroborated by observable market data, for substantially the full term of the assets or liabilities; and • Level 3 – Unobservable inputs, including valuations based on pricing models, discounted cash flow methodologies or similar techniques where at least one significant model assumption or input is unobservable. Unobservable inputs are used to the extent that observable inputs are not available and reflect the Company’s own assumptions about the assumptions market participants would use in pricing the assets or liabilities. Unobservable inputs are based on the best information available in the circumstances, which might include the Company’s own data. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of these assets and liabilities and their placement within the fair value hierarchy. The Company had $31 million and $26 million available for sale securities, included in other non-current assets, at December 31, 2019 and 2018 , respectively. At December 31, 2019 , $20 million in equity securities were valued at Level 1 and $11 million in fixed income securities were valued at Level 2. At December 31, 2018 , $17 million in equity securities were valued at Level 1 and $9 million in fixed income securities were valued at Level 2. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value. Asset Retirement Obligations. Legal obligations associated with the retirement of long-lived assets are recorded at fair value at the time the obligations are incurred, if a reasonable estimate of fair value can be made. Present value techniques are used which reflect assumptions such as removal and remediation costs, inflation, and profit margins that third parties would demand to settle the amount of the future obligation. The Company did not include a market risk premium for unforeseeable circumstances in its fair value estimates because such a premium could not be reliably estimated. Upon initial recognition of the liability, costs are capitalized as a part of the long-lived asset and allocated to expense over the useful life of the related asset. The liability is accreted to its present value each period with accretion being recorded to operating expense with a corresponding increase in the carrying amount of the liability. To the extent the Company is permitted to collect and has reflected in its financials amounts previously collected from customers and expensed, such amounts serve to reduce what would be reflected as capitalized costs at the initial establishment of an ARO. Income Taxes. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in earnings in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized. The determination of the provision for income taxes requires significant judgment, use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The benefits of uncertain tax positions are recorded in our financial statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities. When facts and circumstances change, we reassess these probabilities and record any changes through the provision for income taxes. Commitments and Contingencies. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS: Accounts receivable from related companies reflected on the consolidated balance sheets primarily related to services provided to ET, ETO and other affiliates. Accounts payable to related companies and advance from affiliates reflected on the consolidated balance sheets related to various services provided by ETO and other affiliates. The following tables provide a summary of related party activity included in our consolidated statements of operations: Years Ended December 31, 2019 2018 2017 Operating revenues $ 95 $ 97 $ 43 Operating and maintenance 6 3 7 General and administrative 18 24 23 Interest income — affiliates — — 10 Interest expense — affiliates 25 13 — The Company settled related party payables with a subsidiary of ETO through non-cash contributions during the year ended December 31, 2018 for $31 million . As of December 31, 2019 and 2018 , the Company had $732 million and $356 million , respectively, outstanding under a note payable with ETO. The note payable accrues interest monthly with an annual interest rate of 5.314% as of December 31, 2019. The note matures on July 31, 2027. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Obligations | DEBT OBLIGATIONS: The following table sets forth the debt obligations of the Company: December 31, 2019 2018 8.125% Senior Notes due 2019 $ — $ 150 7.60% Senior Notes due 2024 82 82 7.00% Senior Notes due 2029 66 66 8.25% Senior Notes due 2029 33 33 Floating Rate Junior Subordinated Notes due 2066 54 54 Unamortized fair value adjustments 12 16 Total debt outstanding 247 401 Less: Current maturities of long-term debt — 152 Total long-term debt, less current maturities $ 247 $ 249 Based on the estimated borrowing rates currently available to the Company and its subsidiaries for loans with similar terms and average maturities, the aggregate fair value of the Company’s consolidated debt obligations at December 31, 2019 and 2018 was $247 million and $392 million , respectively. The fair value of the Company’s consolidated debt obligations is a Level 2 valuation based on the observable inputs used for similar liabilities. As of December 31, 2019 , the Company has scheduled long-term debt principal payments as follows: Years Ended December 31, 2020 $ — 2021 — 2022 — 2023 — 2024 82 Thereafter 153 Total $ 235 Senior Notes Panhandle’s 8.125% Senior Notes in the amount of $150 million matured on June 1, 2019 and were repaid with borrowings under an affiliate loan agreement. Panhandle’s 7.00% Senior Notes in the amount of $400 million matured on June 15, 2018 and were repaid with borrowings under an affiliate loan agreement. Floating Rate Junior Subordinated Notes The interest rate on the remaining portion of PEPL’s $600 million junior subordinated notes due 2066 is a variable rate based upon the three-month London Interbank Offered Rate plus 3.0175% . The balance of the variable rate portion of the junior subordinated notes was $54 million at an effective interest rate of 4.927% and 5.559% at December 31, 2019 , and 2018 . Compliance With Our Covenants The Company’s notes are subject to certain requirements, such as the maintenance of a fixed charge coverage ratio and a leverage ratio, which if not maintained, restrict the ability of the Company to make certain payments and impose limitations on the ability of the Company to subject its property to liens. Other covenants impose limitations on restricted payments, including dividends and loans to affiliates, and additional indebtedness. As of December 31, 2019 , the Company is in compliance with these covenants. |
Retirement Benefits (Notes)
Retirement Benefits (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Benefits | RETIREMENT BENEFITS: Postretirement Benefit Plans Prior to January 1, 2013, affiliates of the Company offered postretirement health care and life insurance benefit plans (other postretirement plans) that covered substantially all employees. Effective January 1, 2013, participation in the plan was frozen and medical benefits were no longer offered to non-union employees. Effective January 1, 2014, retiree medical benefits were no longer offered to union employees. Effective January 1, 2018, the plan was amended to extend coverage to a closed group of former employees based on certain criteria. Obligations and Funded Status Other postretirement benefit liabilities are accrued on an actuarial basis during the years an employee provides services. The following tables contain information at the dates indicated about the obligations and funded status of the Company’s other postretirement plans. December 31, 2019 2018 Change in benefit obligation: Benefit obligation at beginning of period $ 78 $ 25 Service cost 1 1 Interest cost 3 2 Amendments — 56 Actuarial gain 12 (3 ) Benefits paid, net (3 ) (3 ) Benefit obligation at end of period $ 91 $ 78 Change in plan assets: Fair value of plan assets at beginning of period $ 141 $ 143 Return on plan assets and other 23 (7 ) Employer contributions 8 8 Benefits paid, net (3 ) (3 ) Fair value of plan assets at end of period $ 169 $ 141 Amount overfunded at end of period (1) $ 78 $ 63 Amounts recognized in accumulated other comprehensive income (pre-tax basis) consist of: Net actuarial gain $ (5 ) $ (2 ) Prior service cost 37 61 $ 32 $ 59 (1) Recorded as a non-current asset in the consolidated balance sheets. Components of Net Periodic Benefit Cost The following tables set forth the components of net periodic benefit cost of the Company’s postretirement benefit plan for the periods presented: Years Ended December 31, 2019 2018 2017 Service cost $ 1 $ 1 $ — Interest cost 3 2 1 Expected return on plan assets (7 ) (7 ) (7 ) Prior service credit amortization 24 14 1 Net periodic benefit cost $ 21 $ 10 $ (5 ) Services cost is recorded within general and administrative expense while non-service cost components are recorded within other, net in our consolidated statements of operations. The estimated prior service cost for other postretirement plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2020 is $18 million . Assumptions. The weighted-average discount rate used in determining benefit obligations was 2.92% and 3.44% at December 31, 2019 and 2018 , respectively. The weighted-average assumptions used in determining net periodic benefit cost for the periods presented are shown in the table below: Years Ended December 31, 2019 2018 2017 Discount rate 4.05 % 3.44 % 3.75 % Expected return on assets: Tax exempt accounts 7.00 % 7.00 % 7.00 % Taxable accounts 4.75 % 4.75 % 4.50 % The Company employs a building block approach in determining the expected long-term rate of return on the plans’ assets with proper consideration for diversification and rebalancing. Historical markets are studied and long-term historical relationships between equities and fixed-income are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term market assumptions are determined. Peer data and historical returns are reviewed to check for reasonableness and appropriateness. The assumed health care cost trend weighted-average rates used to measure the expected cost of benefits covered by the plans are shown in the table below: December 31, 2019 2018 Health care cost trend rate 8.05 % 8.49 % Rate to which the cost trend is assumed to decline (the ultimate trend rate) 4.65 % 4.85 % Year that the rate reaches the ultimate trend rate 2027 2026 Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. A one-percentage-point change in assumed health care cost trend rates would have no material effect on accumulated postretirement benefit obligation or on total of annual service and interest cost components. Plan Assets. The Company’s overall investment strategy is to maintain an appropriate balance of actively managed investments while maintaining a high standard of portfolio quality and achieving proper diversification. To achieve diversity within its other postretirement plan asset portfolio, the Company has targeted the following asset allocations: equity of 25% to 35% and fixed income of 65% to 75% . These target allocations are monitored by the Investment Committee of ETO’s Board of Directors in conjunction with an external investment advisor. On occasion, the asset allocations may fluctuate as compared to these guidelines as a result of Investment Committee actions. The fair value of the Company’s other postretirement plan assets at the dates indicated by asset category is as follows: December 31, 2019 2018 Cash and cash equivalents $ 9 $ 14 Total Market Index Fund (1) 73 53 Total International Index Fund (2) 17 13 U.S. Bond Index Fund (3) 70 61 Total $ 169 $ 141 (1) The fund invests primarily in common stocks included in the Dow Jones U.S. Total Stock Market Index. As of December 31, 2019, this fund was invested 100% in domestic equities. (2) The fund invests primarily in both the securities and in depository receipts representing securities included in the MSCI All Country World Index. As of December 31, 2019, this fund was invested 95% in foreign equities and 5% in domestic equities. (3) The fund invests primarily in bonds included in the Bloomberg Barclays U.S. Aggregate Bond Index. As of December 31, 2019, this fund was invested 44% in U.S. Treasury, 26% in mortgage-backed securities, 23% in corporations and 7% in other. The Total Market Index Fund and Total International Index Fund assets are classified as Level 1 assets within the fair-value hierarchy. The U.S. Bond Index Fund is classified as Level 2 assets within the fair-value hierarchy. Contributions. The Company expects to make $8 million contributions to its other postretirement plans in 2020 and annually thereafter until modified by rate case proceedings. Benefit Payments. The Company’s estimate of expected benefit payments, which reflect expected future service, as appropriate, in each of the next five years and in the aggregate for the five years thereafter are shown in the table below. Years Expected Benefit Payments 2020 $ 4 2021 5 2022 6 2023 6 2024 6 2025 – 2029 25 The Medicare Prescription Drug Act provides for a prescription drug benefit under Medicare (“Medicare Part D”) as well as a federal subsidy to sponsors of retiree health plans that provide a prescription drug benefit that is at least actuarially equivalent to Medicare Part D. The Company does not expect to receive any Medicare Part D subsidies in any future periods. Defined Contribution Plan The Company participates in ETO’s defined contribution savings plan (“Savings Plan”) that is available to virtually all employees. The Company provided matching contributions of 100% of the first 5% of the participant’s compensation paid into the Savings Plan. The Company contributed $2 million to the Savings Plan during the years ended December 31, 2019 , 2018 , and 2017 . In addition, the Company provides a 3% discretionary profit sharing contribution to eligible employees with annual base compensation below a specific threshold. Company contributions are 100% vested after five years of continuous service. The Company made discretionary profit sharing contributions of $1 million during each of the years ended December 31, 2019 , 2018 , and 2017 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | INCOME TAXES: The following table provides a summary of the current and deferred components of income tax expense (benefit) from continuing operations: Years Ended December 31, 2019 2018 2017 Current expense (benefit): Federal $ 31 $ 30 $ (10 ) State 8 7 (1 ) Total 39 37 (11 ) Deferred expense (benefit): Federal $ (349 ) $ 2 $ (253 ) State (92 ) 10 1 Total (441 ) 12 (252 ) Total income tax expense (benefit) $ (402 ) $ 49 $ (263 ) The differences between the Company’s effective income tax rate and the United States federal income tax statutory rate were as follows: Years Ended December 31, 2019 2018 2017 Income tax expense (benefit) at federal statutory rate $ 40 $ 33 $ (108 ) Changes in income taxes resulting from: Partnership earnings not subject to tax (17 ) — — Federal tax rate change — — (249 ) State income taxes, net of federal income tax benefit 5 14 1 Non-deductible goodwill impairment — — 92 Change in tax status (428 ) — — Other (2 ) 2 1 Income tax expense (benefit) $ (402 ) $ 49 $ (263 ) Deferred income taxes result from temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. The table below summarizes the principal components of the Company’s deferred tax assets (liabilities) as follows: December 31, 2019 2018 Deferred income tax assets: Other postretirement benefits $ — $ 18 Debt amortization — 11 Other — 74 Total deferred income tax assets — 103 Valuation allowance — — Net deferred income tax assets (included within other non-current assets, net) $ — $ 103 Deferred income tax liabilities: Property, plant and equipment $ — $ (497 ) Investment in unconsolidated affiliates — (2 ) Other — (41 ) Total deferred income tax liabilities — (540 ) Net deferred income tax liability $ — $ (437 ) As of December 31, 2019 , the Company has $12 million ( $9 million , net of federal tax) of unrecognized tax benefits, all of which would impact the Company’s effective income tax rate if recognized. The Company’s policy is to classify and accrue interest expense and penalties on income tax underpayments (overpayments) as a component of income tax expense in its consolidated statement of operations, which is consistent with the recognition of these items in prior reporting periods. The Company is no longer subject to examination by the Internal Revenue Service and most state jurisdictions for 2013 and prior years. However, the Company is currently under state income tax examination for its 2013 and 2014 years. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS: The Company’s recorded asset retirement obligations are primarily related to owned natural gas storage wells and offshore lines and platforms. At the end of the useful life of these underlying assets, the Company is legally or contractually required to abandon in place or remove the asset. Although a number of other onshore assets in the Company’s system are subject to agreements or regulations that give rise to an ARO upon the Company’s discontinued use of these assets, AROs were not recorded because these assets have an indeterminate removal or abandonment date given the expected continued use of the assets with proper maintenance or replacement. Individual component assets have been and will continue to be replaced, but the pipeline system will continue in operation as long as supply and demand for natural gas exists. Based on the widespread use of natural gas in industrial and power generation activities, management expects supply and demand to exist for the foreseeable future. The Company has in place a rigorous repair and maintenance program that keeps the pipeline system in good working order. Therefore, although some of the individual assets may be replaced, the pipeline system itself will remain intact indefinitely. The Company recorded ARO related to (i) retiring natural gas storage wells, (ii) retiring offshore platforms and lines and (iii) removing asbestos. In addition, the Company had $31 million and $26 million legally restricted for the purpose of settling ARO that was reflected as other non-current assets as of December 31, 2019 and 2018 , respectively; these restricted funds did not include any material amounts of restricted cash. The following table is a reconciliation of the carrying amount of the ARO liability for the periods presented. Changes in assumptions regarding the timing, amount, and probabilities associated with the expected cash flows, as well as the difference in actual versus estimated costs, may result in a change in the amount of the liability recognized. Years Ended December 31, 2019 2018 2017 Beginning balance $ 26 $ 57 $ 54 Revisions 9 (33 ) 1 Settled (2 ) (1 ) (1 ) Accretion expense 2 3 3 Ending balance $ 35 $ 26 $ 57 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies Disclosure | REGULATORY MATTERS, COMMITMENTS, CONTINGENCIES AND ENVIRONMENTAL LIABILITIES: Contingent Residual Support Agreement with ETO Under a contingent residual support agreement with ETO and Citrus ETP Finance LLC, the Company provides contingent, residual support to Citrus ETP Finance LLC (on a non-recourse basis to the Company) with respect to Citrus ETP Finance LLC’s obligations to ETO to support the payment of $2 billion in principal amount of senior notes issued by ETO on January 17, 2012. FERC Proceedings By Order issued January 16, 2019, the FERC initiated a review of Panhandle’s existing rates pursuant to Section 5 of the Natural Gas Act to determine whether the rates currently charged by Panhandle are just and reasonable and set the matter for hearing. On August 30, 2019, Panhandle filed a general rate proceeding under Section 4 of the Natural Gas Act. The Natural Gas Act Section 5 and Section 4 proceedings were consolidated by Order dated October 1, 2019. A hearing in the combined proceedings is scheduled for August, 2020, with an initial decision expected in early 2021. By Order issued February 19, 2019, the FERC initiated a review of Southwest Gas’ existing rates pursuant to Section 5 of the Natural Gas Act to determine whether the rates currently charged by Southwest Gas are just and reasonable and set the matter for hearing. Southwest Gas filed a cost and revenue study on May 6, 2019. On July 10, 2019, Southwest Gas filed an Offer of Settlement in this Section 5 proceeding, which settlement was supported or not opposed by Commission Trial Staff and all active parties. By order dated October 29, 2019, the FERC approved the settlement as filed, and there is not a material impact on revenue. In addition, on November 30, 2018, Sea Robin filed a rate case pursuant to Section 4 of the Natural Gas Act. On July 22, 2019, Sea Robin filed an Offer of Settlement in this Section 4 proceeding, which settlement was supported or not opposed by Commission Trial Staff and all active parties. By order dated October 17, 2019, the FERC approved the settlement as filed, and there is not a material impact on revenue. Environmental Matters The Company’s operations are subject to federal, state and local laws, rules and regulations regarding water quality, hazardous and solid waste management, air quality control and other environmental matters. These laws, rules and regulations require the Company to conduct its operations in a specified manner and to obtain and comply with a wide variety of environmental registrations, licenses, permits, inspections and other approvals. Failure to comply with environmental laws, rules and regulations may expose the Company to significant fines, penalties and/or interruptions in operations. The Company’s environmental policies and procedures are designed to achieve compliance with such applicable laws and regulations. These evolving laws and regulations and claims for damages to property, employees, other persons and the environment resulting from current or past operations may result in significant expenditures and liabilities in the future. The Company engages in a process of updating and revising its procedures for the ongoing evaluation of its operations to identify potential environmental exposures and enhance compliance with regulatory requirements. The Company is responsible for environmental remediation at certain sites on its natural gas transmission systems for contamination resulting from the past use of lubricants containing PCBs in compressed air systems; the past use of paints containing PCBs; and the prior use of wastewater collection facilities and other on-site disposal areas. The Company has implemented a program to remediate such contamination. The primary remaining remediation activity on the PEPL systems is associated with past use of paints containing PCBs or PCB impacts to equipment surfaces and to a building at one location. The PCB assessments are ongoing and the related estimated remediation costs are subject to further change. Other remediation typically involves the management of contaminated soils and may involve remediation of groundwater. Activities vary with site conditions and locations, the extent and nature of the contamination, remedial requirements, complexity and sharing of responsibility. The ultimate liability and total costs associated with these sites will depend upon many factors. If remediation activities involve statutory joint and several liability provisions, strict liability, or cost recovery or contribution actions, the Company could potentially be held responsible for contamination caused by other parties. In some instances, the Company may share liability associated with contamination with other potentially related parties. The Company may also benefit from contractual indemnities that cover some or all of the cleanup costs. These sites are generally managed in the normal course of business or operations. The Company’s environmental remediation activities are undertaken in cooperation with and under the oversight of appropriate regulatory agencies, enabling the Company under certain circumstances to take advantage of various voluntary cleanup programs in order to perform the remediation in the most effective and efficient manner. The Company recorded $1 million and $2 million in non-current liabilities as of December 31, 2019 and 2018 , respectively to cover environmental remediation actions where management believes a loss is probable and reasonably estimable. The Company is not able to estimate the possible loss or range of loss in excess of amounts accrued. The Company does not have any material environmental remediation matters assessed as reasonably possible. Liabilities for Litigation and Other Claims The Company records accrued liabilities for litigation and other claim costs when management believes a loss is probable and reasonably estimable. When management believes there is at least a reasonable possibility that a material loss or an additional material loss may have been incurred, the Company discloses (i) an estimate of the possible loss or range of loss in excess of the amount accrued; or (ii) a statement that such an estimate cannot be made. As of December 31, 2019 and 2018 , the Company’s consolidated balance sheet reflected litigation and other claim-related accrued liabilities of $18 million and $20 million , respectively. The Company does not have any material litigation or other claim contingency matters assessed as probable or reasonably possible that would require disclosure in the financial statements. Other Commitments and Contingencies The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment (the transfer of property to the state) of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. The Company is currently being examined by a third-party auditor on behalf of nine states for compliance with unclaimed property laws. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES The Company leases office space, land, and equipment under non-cancelable operating leases whose initial terms are typically 5 to 10 years, with some real estate leases having terms of 30 years or more, along with options that permit renewals for additional periods. At contract inception, we determine if the arrangement is a lease or contains an embedded lease and review the facts and circumstances of the arrangement to classify lease assets as operating or finance leases under Topic 842. At present, the majority of the Company’s active leases are classified as operating in accordance with Topic 842. Balances related to operating leases are included in operating lease ROU assets, other current liabilities and operating lease liabilities in our consolidated balance sheet. Finance leases represent a small portion of the active lease agreements and are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheet. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation of the Company to make minimum lease payments arising from the lease for the duration of the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or greater. The exercise of lease renewal options is typically at the sole discretion of the Company, and lease extensions are evaluated on a lease-by-lease basis. Leases containing early termination clauses typically require the agreement of both parties to the lease. At the inception of a lease, all renewal options reasonably certain to be exercised are considered when determining the lease term. Presently, the Company does not have leases that include options to purchase or automatic transfer of ownership of the leased property to the Company. The depreciable life of lease assets and leasehold improvements are limited by the expected lease term. To determine the present value of future minimum lease payments, we use the implicit rate when readily determinable. Presently, since many of our leases do not provide an implicit rate, the Company applies its incremental borrowing rate based on the information available at the lease commencement date, to determine the present value of minimum lease payments. The operating and finance lease ROU assets include any lease payments made and exclude lease incentives. Minimum rent payments are expensed on a straight-line basis over the term of the lease. In addition, some leases require additional contingent or variable lease payments, which are based on the factors specific to the individual agreement. Variable lease payments the Company is typically responsible for include payment of real estate taxes, maintenance expenses and insurance. For short-term leases (leases that have term of twelve months or less upon commencement), lease payments are recognized on a straight-line basis and no ROU assets are recorded. For the year ended December 31, 2019, the Company recognized $2 million of short-term lease cost, which is reflected in operating and maintenance in the accompanying consolidated statement of operations. The weighted average remaining lease terms and weighted average discount rate as of December 31, 2019 were as follows: December 31, Weighted-average remaining lease term (years) Operating leases 13 Weighted-average discount rate (%) Operating leases 4 % Maturities of operating lease liabilities as of December 31, 2019 are as follows: Operating leases 2020 $ 1 2021 — 2022 1 2023 1 2024 — Thereafter 4 Total lease payments 7 Less: present value discount 2 Present value of lease liabilities $ 5 |
REVENUE Revenue (Notes)
REVENUE Revenue (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE Contract Balances with Customers The Company satisfies its obligations by transferring goods or services in exchange for consideration from customers. The timing of performance may differ from the timing the associated consideration is paid to or received from the customer, thus resulting in the recognition of a contract asset or a contract liability. The Company recognizes a contract asset when making upfront consideration payments to certain customers or when providing services to customers prior to the time at which the Company is contractually allowed to bill for such services. As of December 31, 2019 , no contract assets have been recognized. The Company recognizes a contract liability if the customer's payment of consideration precedes the Company’s fulfillment of the performance obligations. As of December 31, 2019 , no contract liabilities have been recognized. Performance Obligation At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. Revenue is recognized when (or as) the performance obligations are satisfied, that is, when the customer obtains control of the good or service. Certain of our contracts contain variable components, which, when combined with the fixed component are considered a single performance obligation. For these types of contracts, only the fixed component of the contracts are included in the table below. As of December 31, 2019 , the aggregate amount of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is approximately $2.563 billion and the Company expects to recognize this amount as revenue within the time bands illustrated below: Years Ending December 31, 2020 2021 2022 Thereafter Total Revenue expected to be recognized on contracts with customers existing as of December 31, 2019 $ 401 $ 328 $ 280 $ 1,554 $ 2,563 Practical Expedients Utilized by the Company The Company elected the following practical expedients in accordance with Topic 606: • Right to invoice - The Company elected to utilize an output method to recognize revenue that is based on the amount to which the Company has a right to invoice a customer for services performed to date, if that amount corresponds directly with the value provided to the customer for the related performance or its obligation completed to date. As such, the Company recognized revenue in the amount to which it had the right to invoice customers. • Significant financing component - The Company elected not to adjust the promised amount of consideration for the effects of significant financing component if the Company expects, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. • Unearned variable consideration - The Company elected to only disclose the unearned fixed consideration associated with unsatisfied performance obligations related to our various customer contracts which contain both fixed and variable components. |
QUARTERLY OPERATIONS
QUARTERLY OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | QUARTERLY FINANCIAL DATA (UNAUDITED): The following table provides certain quarterly financial information for the periods presented: Quarters Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Total Operating revenues $ 158 $ 139 $ 135 $ 146 $ 578 Operating income 76 52 41 62 231 Net income 50 31 475 33 589 Quarters Ended March 31, June 30, September 30, December 31, Total Operating revenues $ 149 $ 134 $ 137 $ 154 $ 574 Operating income 64 42 41 56 203 Net income 34 22 23 29 108 |
Estimates, Significant Accoun_2
Estimates, Significant Accounting Policies and Balance Sheet Detail (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Policy Text Block] | Basis of Presentation. The Company’s consolidated financial statements have been prepared in accordance with GAAP. The consolidated financial statements include the accounts of all majority-owned subsidiaries, after eliminating significant intercompany transactions and balances. Investments in which the Company has significant influence over the operations of the investee are accounted for using the equity method. The Company is subject to regulation by certain state and federal authorities. The Company has accounting policies which are in accordance with the accounting requirements and ratemaking practices of the regulatory authorities. The Company does not apply regulatory-based accounting policies, primarily due to the level of discounting from tariff rates and its inability to recover specific costs. If regulatory-based accounting policies were applied, certain transactions would be recorded differently, including, among others, recording of regulatory assets, the capitalization of an equity component of invested funds on regulated capital projects and depreciation differences. The Company periodically reviews its level of discounting and negotiated rate contracts, the length of rate moratoriums and other related factors to determine if the regulatory-based authoritative guidance should be applied. |
Consolidation, Policy [Policy Text Block] | The Company’s consolidated financial statements have been prepared in accordance with GAAP. The consolidated financial statements include the accounts of all majority-owned subsidiaries, after eliminating significant intercompany transactions and balances. Investments in which the Company has significant influence over the operations of the investee are accounted for using the equity method. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Accounting Changes [Text Block] | Change in Accounting Policy Adoption of Lease Accounting Standard In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) , which has amended the FASB Accounting Standards Codification and introduced Topic 842, Leases. On January 1, 2019, the Company has adopted Topic 842, which is effective for interim and annual reporting periods beginning on or after December 15, 2018. Topic 842 requires entities to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which historically were not recorded on the balance sheet in accordance with the prior standard. To adopt Topic 842, the Company recognized a cumulative catch-up adjustment to the opening balance sheet as of January 1, 2019 related to certain leases that existed as of that date. As permitted, we have not retrospectively modified our consolidated financial statements for comparative purposes. The adoption of the standard did not have a material impact on our consolidated financial statements. As a result of adoption, we have recorded additional net ROU lease assets and lease liabilities of approximately $6 million and $6 million , respectively, as of January 1, 2019. In addition, we have updated our business processes, systems, and internal controls to support the on-going reporting requirements under the new standard. To adopt Topic 842, the Company elected the package of practical expedients permitted under the transition guidance within the standard. The expedient package allowed us not to reassess whether existing contracts contained a lease, the lease classification of existing leases and initial direct cost for existing leases. In addition to the package of practical expedients, the Company has elected not to capitalize amounts pertaining to leases with terms less than twelve months, to use the portfolio approach to determine discount rates, not to separate non-lease components from lease components and not to apply the use of hindsight to the active lease population. Cumulative-effect adjustments made to the opening balance sheet at January 1, 2019 were as follows: Balance at December 31, 2018, as previously reported Adjustments due to Topic 842 (Leases) Balance at January 1, 2019 Assets: Operating lease right-of-use assets $ — $ 6 $ 6 Liabilities: Non-current operating lease liabilities — 6 6 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents. Cash equivalents consist of highly liquid investments, which are readily convertible into cash and have original maturities of three months or less. The Company places cash deposits and temporary cash investments with high credit quality financial institutions. At times, cash and cash equivalents may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation insurance limit. |
Inventory, Policy [Policy Text Block] | Inventories. System natural gas and operating supplies consist of natural gas held for operations and materials and supplies, both of which are carried at the lower of weighted average cost or market, while natural gas owed back to customers is valued at market. The natural gas held for operations that the Company does not expect to consume in its operations in the next twelve months is reflected in non-current assets. |
Natural Gas Exchanges [Policy Text Block] | Natural Gas Imbalances. Natural gas imbalances occur as a result of differences in volumes of natural gas received and delivered. The Company records natural gas imbalance in-kind receivables and payables at cost or market. Net imbalances that have reduced system natural gas are valued at the cost basis of the system natural gas, while net imbalances that have increased system natural gas and are owed back to customers are priced, along with the corresponding system natural gas, at market. |
Fuel Tracker [Policy Text Block] | Fuel Tracker. The fuel tracker is the cumulative balance of compressor fuel volumes owed to the Company by its customers or owed by the Company to its customers. The customers, pursuant to each pipeline’s tariff and related contracts, provide all compressor fuel to the pipeline based on specified percentages of the customer’s natural gas volumes delivered into the pipeline. The percentages are designed to match the actual natural gas consumed in moving the natural gas through the pipeline facilities, with any difference between the volumes provided versus volumes consumed reflected in the fuel tracker. The tariff of Trunkline, in conjunction with the customers’ contractual obligations, allows the Company to record an asset and direct bill customers for any fuel ultimately under-recovered. The other FERC-regulated PEPL entities record an expense when fuel is under-recovered or record a credit to expense to the extent any under-recovered prior period balances are subsequently recouped as they do not have such explicit billing rights specified in their tariffs. Liability accounts are maintained for net volumes of compressor fuel natural gas owed to customers collectively. The pipelines’ fuel reimbursement is in-kind and non-discountable. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment. The following table presents the components of property, plant and equipment: December 31, Lives in Years 2019 2018 Land and improvements $ 4 $ 3 Buildings and improvements 6 – 46 194 158 Pipelines and equipment 5 – 46 2,556 2,556 Natural gas storage facilities 26 – 46 348 282 Other 3 – 21 139 160 Construction work in progress 40 37 Property, plant and equipment 3,281 3,196 Accumulated depreciation and amortization (607 ) (507 ) Property, plant and equipment, net $ 2,674 $ 2,689 Additions. Ongoing additions of property, plant and equipment are stated at cost. The Company capitalizes all construction-related direct labor and material costs, as well as indirect construction costs. Such indirect construction costs primarily include capitalized interest costs and labor and related costs of departments associated with supporting construction activities. The indirect capitalized labor and related costs are largely based upon results of periodic time studies or management reviews of time allocations, which provide an estimate of time spent supporting construction projects. The cost of replacements and betterments that extend the useful life of property, plant and equipment is also capitalized. The cost of repairs and replacements of minor property, plant and equipment items is charged to expense as incurred. Retirements. When ordinary retirements of property, plant and equipment occur, the original cost less salvage value is removed by a charge to accumulated depreciation and amortization, with no gain or loss recorded. When entire regulated operating units of property, plant and equipment are retired or sold, the original cost less salvage value and related accumulated depreciation and amortization accounts are removed, with any resulting gain or loss recorded in earnings. Depreciation. The Company computes depreciation expense using the straight-line method. Interest Cost Capitalized. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill. Long-lived assets are required to be tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Goodwill and intangibles with indefinite lives must be tested for impairment annually or more frequently if events or changes in circumstances indicate that the related asset might be impaired. An impairment loss should be recognized only if the carrying amount of the asset/goodwill is not recoverable and exceeds its fair value. In order to test for recoverability when performing a quantitative impairment test, the Company makes estimates of projected cash flows related to the asset, which include, but are not limited to, assumptions about the use or disposition of the asset, estimated remaining life of the asset, and future expenditures necessary to maintain the asset’s existing service potential. In order to determine fair value, the Company makes certain estimates and assumptions, including, among other things, changes in general economic conditions in the Company’s operating regions, the availability and prices of natural gas, the ability to negotiate favorable sales agreements, the risks that natural gas exploration and production activities will not occur or be successful, dependence on certain significant customers and producers of natural gas, and competition from other companies, including major energy producers. If future results are not consistent with the Company’s estimates, future impairment losses that could be material may be recorded to our results of operations. The Company determines the fair value of its reporting units using a weighted combination of the discounted cash flow method and the guideline company method. Determining the fair value of a reporting unit requires judgment and the use of significant estimates and assumptions. Such estimates and assumptions include revenue growth rates, operating margins, weighted average costs of capital and future market conditions, among others. The Company believes the estimates and assumptions used in our impairment assessments are reasonable; however, variations in any of the assumptions could result in materially different calculations of fair value and determinations of whether or not an impairment is indicated. Under the discounted cash flow method, the Company determined fair value based on estimated future cash flows of each reporting unit including estimates for capital expenditures, discounted to present value using the risk-adjusted industry rate, which reflect the overall level of inherent risk of the reporting unit. Cash flow projections are derived from one year budgeted amounts and five year operating forecasts plus an estimate of later period cash flows, all of which are evaluated by management. Subsequent period cash flows are developed for each reporting unit using growth rates that management believes are reasonably likely to occur. Under the guideline company method, the Company determined the estimated fair value of each of our reporting units by applying valuation multiples of comparable publicly-traded companies to each reporting unit’s projected EBITDA and then averaging that estimate with similar historical calculations using a three year average. In addition, the Company estimated a reasonable control premium representing the incremental value that accrues to the majority owner from the opportunity to dictate the strategic and operational actions of the business. Key assumptions for the measurement of goodwill impairment is management’s estimate of future cash flows and EBITDA. These estimates are based on the annual budget for the upcoming year and forecasted amounts for multiple subsequent years. The annual budget process is typically completed near the annual goodwill impairment testing date, and management uses the most recent information for the annual impairment tests. The forecast is also subjected to a comprehensive update annually in conjunction with the annual budget process and is revised periodically to reflect new information and/or revised expectations. The estimates of future cash flows and EBITDA are subjective in nature and are subject to impacts from the business risks described in “Item 1A. Risk Factors.” Therefore, the actual results could differ significantly from the amounts used for goodwill impairment testing, and significant changes in fair value estimates could occur in a given period. During the third quarter of 2019, due to a decrease in the demand for storage on Southwest Gas assets, the Company performed an interim impairment test on the assets of Southwest Gas. As a result of the interim impairment test, the Company recognized a goodwill impairment of $12 million related to Southwest Gas, primarily due to decreases in projected future revenues and cash flows. During the fourth quarter of 2018, the Company performed goodwill impairment tests and did not record a goodwill or fixed asset impairment. During the fourth quarter of 2017, the Company performed goodwill impairment tests and recognized goodwill impairment of $262 million related to Trunkline, primarily due to decreases in projected future revenues and cash flows driven by declines in commodity prices and changes in the markets that the assets serve. The Company also recorded a $127 million fixed asset impairment related to Sea Robin, primarily due to lower utilization and expected decrease in projected future cash flows. |
Related Party Transactions Disclosure [Policy Text Block] | Related Party Transactions. Related party expenses primarily include payments for services provided by ET, ETO and other affiliates. Other income includes interest income on notes receivable from related parties. |
Environmental Cost, Expense Policy [Policy Text Block] | Environmental Expenditures. Environmental expenditures that relate to an existing condition caused by past operations that do not contribute to current or future revenue generation are expensed. Environmental expenditures relating to current or future revenues are expensed or capitalized as appropriate. Liabilities are recorded when environmental assessments and/or clean-ups are probable and the costs can be reasonably estimated. Remediation obligations are not discounted because the timing of future cash flow streams is not predictable. |
Revenue [Policy Text Block] | Revenues. The Company’s revenues from transportation and storage of natural gas are based on capacity reservation charges and, to a lesser extent, commodity usage charges. Reservation revenues are based on contracted rates and capacity reserved by the customers and are recognized monthly. Revenues from commodity usage charges are also recognized monthly, based on the volumes received from or delivered for the customer, based on the tariff, with any differences in volumes received and delivered resulting in an imbalance. Volume imbalances generally are settled in-kind with no impact on revenues, with the exception of Trunkline, which settles certain imbalances in cash pursuant to its tariff, and records gains and losses on such cashout sales as a component of revenue, to the extent not owed back to customers. Because the Company is subject to FERC regulation, revenues collected during the pendency of a rate proceeding may be required by FERC to be refunded in the final order. The Company establishes reserves for such potential refunds, as appropriate. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts. The Company has a large number of customers in the electric and gas utility industries as well as oil and natural gas producers and municipalities. The large number of customers in these energy segments may impact our overall exposure to credit risk, either positively or negatively, in that the customers may be similarly affected by changes in economic or other conditions. The Company manages trade credit risk to mitigate credit losses and exposure to uncollectible trade receivables. Prospective and existing customers are reviewed regularly for creditworthiness based upon pre-established standards consistent with FERC filed tariffs to manage credit risk within approved tolerances. Customers that do not meet minimum credit standards are required to provide additional credit support in the form of a letter of credit, prepayment, or other forms of security. The Company establishes an allowance for doubtful accounts on trade receivables based on the expected ultimate recovery of these receivables and considers many factors including historical customer collection experience, general and specific economic trends, and known specific issues related to individual customers, sectors, and transactions that might impact collectability. Increases in the allowance are recorded as a component of operating expenses; reductions in the allowance are recorded when receivables are subsequently collected or written-off. Past due receivable balances are written-off when the Company’s efforts have been unsuccessful in collecting the amount due. The allowance for doubtful accounts was not material as of and during the years ended December 31, 2019 and 2018 . |
Accumulated Other Comprehensive Loss [Policy Text Block] | Accumulated Other Comprehensive Income. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Retirement Benefits. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurement. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk, which is primarily comprised of credit risk (both the Company’s own credit risk and counterparty credit risk) and the risks inherent in the inputs to any applicable valuation techniques. The Company places more weight on current market information concerning credit risk (e.g. current credit default swap rates) as opposed to historical information (e.g. historical default probabilities and credit ratings). These inputs can be readily observable, market corroborated, or generally unobservable. The Company endeavors to utilize the best available information, including valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. A three-tier fair value hierarchy, which prioritizes the inputs used to measure fair value, is as follows: • Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities; • Level 2 – Observable inputs such as: (i) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical or similar assets or liabilities in markets that are not active and do not require significant adjustment based on unobservable inputs; or (iii) valuations based on pricing models, discounted cash flow methodologies or similar techniques where significant inputs (e.g., interest rates, yield curves, etc.) are derived principally from observable market data, or can be corroborated by observable market data, for substantially the full term of the assets or liabilities; and • Level 3 – Unobservable inputs, including valuations based on pricing models, discounted cash flow methodologies or similar techniques where at least one significant model assumption or input is unobservable. Unobservable inputs are used to the extent that observable inputs are not available and reflect the Company’s own assumptions about the assumptions market participants would use in pricing the assets or liabilities. Unobservable inputs are based on the best information available in the circumstances, which might include the Company’s own data. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of these assets and liabilities and their placement within the fair value hierarchy. |
Asset Retirement Obligation [Policy Text Block] | Asset Retirement Obligations. Legal obligations associated with the retirement of long-lived assets are recorded at fair value at the time the obligations are incurred, if a reasonable estimate of fair value can be made. Present value techniques are used which reflect assumptions such as removal and remediation costs, inflation, and profit margins that third parties would demand to settle the amount of the future obligation. The Company did not include a market risk premium for unforeseeable circumstances in its fair value estimates because such a premium could not be reliably estimated. Upon initial recognition of the liability, costs are capitalized as a part of the long-lived asset and allocated to expense over the useful life of the related asset. The liability is accreted to its present value each period with accretion being recorded to operating expense with a corresponding increase in the carrying amount of the liability. To the extent the Company is permitted to collect and has reflected in its financials amounts previously collected from customers and expensed, such amounts serve to reduce what would be reflected as capitalized costs at the initial establishment of an ARO. |
Income Tax, Policy [Policy Text Block] | Income Taxes. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in earnings in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized. The determination of the provision for income taxes requires significant judgment, use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The benefits of uncertain tax positions are recorded in our financial statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities. When facts and circumstances change, we reassess these probabilities and record any changes through the provision for income taxes. |
Commitments and Contingencies, Policy [Policy Text Block] | Commitments and Contingencies. The Company is subject to proceedings, lawsuits and other claims related to environmental and other matters. Accounting for contingencies requires significant judgment by management regarding the estimated probabilities and ranges of exposure to potential liability. |
Leases (Policies)
Leases (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company leases office space, land, and equipment under non-cancelable operating leases whose initial terms are typically 5 to 10 years, with some real estate leases having terms of 30 years or more, along with options that permit renewals for additional periods. At contract inception, we determine if the arrangement is a lease or contains an embedded lease and review the facts and circumstances of the arrangement to classify lease assets as operating or finance leases under Topic 842. At present, the majority of the Company’s active leases are classified as operating in accordance with Topic 842. Balances related to operating leases are included in operating lease ROU assets, other current liabilities and operating lease liabilities in our consolidated balance sheet. Finance leases represent a small portion of the active lease agreements and are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheet. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation of the Company to make minimum lease payments arising from the lease for the duration of the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or greater. The exercise of lease renewal options is typically at the sole discretion of the Company, and lease extensions are evaluated on a lease-by-lease basis. Leases containing early termination clauses typically require the agreement of both parties to the lease. At the inception of a lease, all renewal options reasonably certain to be exercised are considered when determining the lease term. Presently, the Company does not have leases that include options to purchase or automatic transfer of ownership of the leased property to the Company. The depreciable life of lease assets and leasehold improvements are limited by the expected lease term. To determine the present value of future minimum lease payments, we use the implicit rate when readily determinable. Presently, since many of our leases do not provide an implicit rate, the Company applies its incremental borrowing rate based on the information available at the lease commencement date, to determine the present value of minimum lease payments. The operating and finance lease ROU assets include any lease payments made and exclude lease incentives. Minimum rent payments are expensed on a straight-line basis over the term of the lease. In addition, some leases require additional contingent or variable lease payments, which are based on the factors specific to the individual agreement. Variable lease payments the Company is typically responsible for include payment of real estate taxes, maintenance expenses and insurance. For short-term leases (leases that have term of twelve months or less upon commencement), lease payments are recognized on a straight-line basis and no ROU assets are recorded. For the year ended December 31, 2019, the Company recognized $2 million of short-term lease cost, which is reflected in operating and maintenance in the accompanying consolidated statement of operations. |
ESTIMATES, SUMMARY OF SIGNIFICA
ESTIMATES, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL Estimates, Significant Accounting Policies and Balance Sheet Detail (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Cumulative-effect adjustments made to the opening balance sheet at January 1, 2019 were as follows: Balance at December 31, 2018, as previously reported Adjustments due to Topic 842 (Leases) Balance at January 1, 2019 Assets: Operating lease right-of-use assets $ — $ 6 $ 6 Liabilities: Non-current operating lease liabilities — 6 6 |
Other Current Liabilities [Table Text Block] | Other Current Liabilities. Other current liabilities consisted of the following: December 31, 2019 2018 Deposits from customers $ 13 $ 25 Accrued expenses 21 24 Accrued capital expenditures 11 13 Current income tax payable 16 — Other 9 7 Total other current liabilities $ 70 $ 69 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Non-cash investing and financing activities and supplemental cash flow information are as follows: Years Ended December 31, 2019 2018 2017 Non-cash investing and financing activities: Settlement of affiliate liability - tax payable $ — $ (19 ) $ (8 ) Settlement of affiliate liability - related party payables — (12 ) — Contribution of assets from affiliate — (7 ) — Distribution of non-cash assets to parent — 68 — Supplemental cash flow information: Accrued capital expenditures $ 11 $ 13 $ 11 Cash paid for interest, net of interest capitalized 23 43 75 Cash received for interest on note receivable from affiliate — — 18 Cash paid for interest on note payable to affiliate 23 13 — |
Property, Plant and Equipment [Table Text Block] | December 31, Lives in Years 2019 2018 Land and improvements $ 4 $ 3 Buildings and improvements 6 – 46 194 158 Pipelines and equipment 5 – 46 2,556 2,556 Natural gas storage facilities 26 – 46 348 282 Other 3 – 21 139 160 Construction work in progress 40 37 Property, plant and equipment 3,281 3,196 Accumulated depreciation and amortization (607 ) (507 ) Property, plant and equipment, net $ 2,674 $ 2,689 |
Schedule of Inventory, Current [Table Text Block] | The following table presents the components of inventory: December 31, 2019 2018 Natural gas (1) $ 39 $ 79 Materials and supplies 22 19 $ 61 $ 98 (1) Natural gas volumes held for operations at December 31, 2019 and 2018 were 19.3 TBtu and 25.9 TBtu, respectively. |
Revenue from External Customers by Products and Services [Table Text Block] | The following table presents the relative contribution to the Company’s total operating revenue from continuing operations of each customer that comprised at least 10% of its operating revenues: Years Ended December 31, 2019 2018 2017 Customer A 10 % 10 % 13 % Customer B 16 16 — Other top 10 customers 31 28 41 Remaining customers 43 46 46 Total percentage 100 % 100 % 100 % |
Other Noncurrent Liabilities [Table Text Block] | Other Non-Current Liabilities. Other non-current liabilities consisted of the following: December 31, 2019 2018 Pension liability $ 103 $ 117 ARO 30 26 Other 88 90 Total other non-current liabilities $ 221 $ 233 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions [table text block] | Accounts receivable from related companies reflected on the consolidated balance sheets primarily related to services provided to ET, ETO and other affiliates. Accounts payable to related companies and advance from affiliates reflected on the consolidated balance sheets related to various services provided by ETO and other affiliates. The following tables provide a summary of related party activity included in our consolidated statements of operations: Years Ended December 31, 2019 2018 2017 Operating revenues $ 95 $ 97 $ 43 Operating and maintenance 6 3 7 General and administrative 18 24 23 Interest income — affiliates — — 10 Interest expense — affiliates 25 13 — |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt Instruments | The following table sets forth the debt obligations of the Company: December 31, 2019 2018 8.125% Senior Notes due 2019 $ — $ 150 7.60% Senior Notes due 2024 82 82 7.00% Senior Notes due 2029 66 66 8.25% Senior Notes due 2029 33 33 Floating Rate Junior Subordinated Notes due 2066 54 54 Unamortized fair value adjustments 12 16 Total debt outstanding 247 401 Less: Current maturities of long-term debt — 152 Total long-term debt, less current maturities $ 247 $ 249 |
Schedule of Maturities of Long-term Debt | As of December 31, 2019 , the Company has scheduled long-term debt principal payments as follows: Years Ended December 31, 2020 $ — 2021 — 2022 — 2023 — 2024 82 Thereafter 153 Total $ 235 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following tables contain information at the dates indicated about the obligations and funded status of the Company’s other postretirement plans. December 31, 2019 2018 Change in benefit obligation: Benefit obligation at beginning of period $ 78 $ 25 Service cost 1 1 Interest cost 3 2 Amendments — 56 Actuarial gain 12 (3 ) Benefits paid, net (3 ) (3 ) Benefit obligation at end of period $ 91 $ 78 Change in plan assets: Fair value of plan assets at beginning of period $ 141 $ 143 Return on plan assets and other 23 (7 ) Employer contributions 8 8 Benefits paid, net (3 ) (3 ) Fair value of plan assets at end of period $ 169 $ 141 Amount overfunded at end of period (1) $ 78 $ 63 Amounts recognized in accumulated other comprehensive income (pre-tax basis) consist of: Net actuarial gain $ (5 ) $ (2 ) Prior service cost 37 61 $ 32 $ 59 (1) Recorded as a non-current asset in the consolidated balance sheets. |
Schedule of Net Benefit Costs [Table Text Block] | The following tables set forth the components of net periodic benefit cost of the Company’s postretirement benefit plan for the periods presented: Years Ended December 31, 2019 2018 2017 Service cost $ 1 $ 1 $ — Interest cost 3 2 1 Expected return on plan assets (7 ) (7 ) (7 ) Prior service credit amortization 24 14 1 Net periodic benefit cost $ 21 $ 10 $ (5 ) |
Defined Benefit Plan, Assumptions [Table Text Block] | The weighted-average assumptions used in determining net periodic benefit cost for the periods presented are shown in the table below: Years Ended December 31, 2019 2018 2017 Discount rate 4.05 % 3.44 % 3.75 % Expected return on assets: Tax exempt accounts 7.00 % 7.00 % 7.00 % Taxable accounts 4.75 % 4.75 % 4.50 % |
Schedule of Health Care Cost Trend Rates [Table Text Block] | The assumed health care cost trend weighted-average rates used to measure the expected cost of benefits covered by the plans are shown in the table below: December 31, 2019 2018 Health care cost trend rate 8.05 % 8.49 % Rate to which the cost trend is assumed to decline (the ultimate trend rate) 4.65 % 4.85 % Year that the rate reaches the ultimate trend rate 2027 2026 |
Schedule of Allocation of Plan Assets [Table Text Block] | The fair value of the Company’s other postretirement plan assets at the dates indicated by asset category is as follows: December 31, 2019 2018 Cash and cash equivalents $ 9 $ 14 Total Market Index Fund (1) 73 53 Total International Index Fund (2) 17 13 U.S. Bond Index Fund (3) 70 61 Total $ 169 $ 141 |
Schedule of Expected Benefit Payments [Table Text Block] | Benefit Payments. The Company’s estimate of expected benefit payments, which reflect expected future service, as appropriate, in each of the next five years and in the aggregate for the five years thereafter are shown in the table below. Years Expected Benefit Payments 2020 $ 4 2021 5 2022 6 2023 6 2024 6 2025 – 2029 25 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) and Effective Income Tax Rate | The following table provides a summary of the current and deferred components of income tax expense (benefit) from continuing operations: Years Ended December 31, 2019 2018 2017 Current expense (benefit): Federal $ 31 $ 30 $ (10 ) State 8 7 (1 ) Total 39 37 (11 ) Deferred expense (benefit): Federal $ (349 ) $ 2 $ (253 ) State (92 ) 10 1 Total (441 ) 12 (252 ) Total income tax expense (benefit) $ (402 ) $ 49 $ (263 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The differences between the Company’s effective income tax rate and the United States federal income tax statutory rate were as follows: Years Ended December 31, 2019 2018 2017 Income tax expense (benefit) at federal statutory rate $ 40 $ 33 $ (108 ) Changes in income taxes resulting from: Partnership earnings not subject to tax (17 ) — — Federal tax rate change — — (249 ) State income taxes, net of federal income tax benefit 5 14 1 Non-deductible goodwill impairment — — 92 Change in tax status (428 ) — — Other (2 ) 2 1 Income tax expense (benefit) $ (402 ) $ 49 $ (263 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The table below summarizes the principal components of the Company’s deferred tax assets (liabilities) as follows: December 31, 2019 2018 Deferred income tax assets: Other postretirement benefits $ — $ 18 Debt amortization — 11 Other — 74 Total deferred income tax assets — 103 Valuation allowance — — Net deferred income tax assets (included within other non-current assets, net) $ — $ 103 Deferred income tax liabilities: Property, plant and equipment $ — $ (497 ) Investment in unconsolidated affiliates — (2 ) Other — (41 ) Total deferred income tax liabilities — (540 ) Net deferred income tax liability $ — $ (437 ) |
ASSET RETIREMENT OBLIGATIONS As
ASSET RETIREMENT OBLIGATIONS Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change in Asset Retirement Obligation | The following table is a reconciliation of the carrying amount of the ARO liability for the periods presented. Changes in assumptions regarding the timing, amount, and probabilities associated with the expected cash flows, as well as the difference in actual versus estimated costs, may result in a change in the amount of the liability recognized. Years Ended December 31, 2019 2018 2017 Beginning balance $ 26 $ 57 $ 54 Revisions 9 (33 ) 1 Settled (2 ) (1 ) (1 ) Accretion expense 2 3 3 Ending balance $ 35 $ 26 $ 57 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of operating lease liabilities as of December 31, 2019 are as follows: Operating leases 2020 $ 1 2021 — 2022 1 2023 1 2024 — Thereafter 4 Total lease payments 7 Less: present value discount 2 Present value of lease liabilities $ 5 The weighted average remaining lease terms and weighted average discount rate as of December 31, 2019 were as follows: December 31, Weighted-average remaining lease term (years) Operating leases 13 Weighted-average discount rate (%) Operating leases 4 % |
REVENUE Revenue (Tables)
REVENUE Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | As of December 31, 2019 , the aggregate amount of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is approximately $2.563 billion and the Company expects to recognize this amount as revenue within the time bands illustrated below: Years Ending December 31, 2020 2021 2022 Thereafter Total Revenue expected to be recognized on contracts with customers existing as of December 31, 2019 $ 401 $ 328 $ 280 $ 1,554 $ 2,563 |
QUARTERLY OPERATIONS Quarterly
QUARTERLY OPERATIONS Quarterly Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The following table provides certain quarterly financial information for the periods presented: Quarters Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Total Operating revenues $ 158 $ 139 $ 135 $ 146 $ 578 Operating income 76 52 41 62 231 Net income 50 31 475 33 589 Quarters Ended March 31, June 30, September 30, December 31, Total Operating revenues $ 149 $ 134 $ 137 $ 154 $ 574 Operating income 64 42 41 56 203 Net income 34 22 23 29 108 |
Description of the Business (De
Description of the Business (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Description of the Business | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | $ 0 | $ 0 | |
Nonmonetary Transaction, Gain (Loss) Recognized on Transfer | $ 428 | ||
General partnership | |||
Description of the Business | |||
Limited partnership interest | 1.00% | ||
Limited partnership | |||
Description of the Business | |||
Limited partnership interest | 99.00% |
ESTIMATES, SUMMARY OF SIGNIFI_2
ESTIMATES, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL Estimates, Significant Accounting Policies and Balance Sheet Detail - New Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 5 | $ 6 | $ 0 |
Operating Lease, Liability, Noncurrent | 5 | 6 | $ 0 |
Present value of lease liabilities | $ 5 | 6 | |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | 6 | ||
Operating Lease, Liability, Noncurrent | $ 6 |
ESTIMATES, SUMMARY OF SIGNIFI_3
ESTIMATES, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL Estimates, Significant Accounting Policies and Balance Sheet Detail - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Cash and Cash Equivalents Items | |||
Non-Cash Settlement of Tax Liability | $ 0 | $ (19) | $ (8) |
Settlement of affiliate liability - related party payables | 0 | (12) | 0 |
Proceeds from Contributions from Affiliates | 0 | (7) | 0 |
Deemed contribution (distribution) to Parent | 0 | 68 | 0 |
Capital Expenditures Incurred but Not yet Paid | 11 | 13 | 11 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | 23 | 43 | 75 |
Affiliated Entity | |||
Restricted Cash and Cash Equivalents Items | |||
Increase (Decrease) in Notes Receivables | 0 | 0 | 18 |
Dividends and Interest Paid | $ 23 | $ 13 | $ 0 |
ESTIMATES, SUMMARY OF SIGNIFI_4
ESTIMATES, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL Estimates, Significant Accounting Policies and Balance Sheet Detail - Inventory (Details) MMbtu in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)MMbtu | Dec. 31, 2018USD ($)MMbtu | Dec. 31, 2017USD ($) | ||
Inventory Accounting Policies [Abstract] | ||||
Energy Related Inventory, Natural Gas in Storage | [1] | $ 39 | $ 79 | |
Inventory, Raw Materials and Supplies | 22 | 19 | ||
Inventories | $ 61 | $ 98 | ||
Natural Gas Volumes | MMbtu | 19.3 | 25.9 | ||
Interest Costs Capitalized | $ 2 | $ 1 | $ 3 | |
[1] | Natural gas volumes held for operations at December 31, 2019 and 2018 were 19.3 TBtu and 25.9 TBtu, respectively. |
ESTIMATES, SUMMARY OF SIGNIFI_5
ESTIMATES, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL Estimates, Significant Accounting Policies and Balance Sheet Detail - PPE (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 3,281 | $ 3,196 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 607 | 507 |
Net property, plant and equipment | 2,674 | 2,689 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 4 | 3 |
Construction Work-In-Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 40 | 37 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 194 | 158 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | P6Y0M | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | P46Y0M | |
Pipelines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,556 | 2,556 |
Pipelines [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | P5Y0M | |
Pipelines [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | P46Y0M | |
Natural Gas, Storage [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 348 | 282 |
Natural Gas, Storage [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | P26Y0M | |
Natural Gas, Storage [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | P46Y0M | |
Property, Plant and Equipment, Other Types [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 139 | $ 160 |
Property, Plant and Equipment, Other Types [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | P3Y0M | |
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | P21Y0M |
ESTIMATES, SUMMARY OF SIGNIFI_6
ESTIMATES, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL Estimates, Significant Accounting Policies and Balance Sheet Detail - goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill | $ 0 | $ 12 | |
Southwest Gas [Member] | |||
Goodwill, Impairment Loss | $ (12) | ||
Trunkline [Member] | |||
Goodwill, Impairment Loss | $ (262) | ||
Sea Robin [Member] | |||
Tangible Asset Impairment Charges | $ 127 |
ESTIMATES, SUMMARY OF SIGNIFI_7
ESTIMATES, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL Estimates, Significant Accounting Policies and Balance Sheet Detail - Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities, Current [Abstract] | ||
Customer Advances and Deposits, Current | $ 13 | $ 25 |
Accrued Liabilities and Other Liabilities | 21 | 24 |
Accrued Capital Expenditures | 11 | 13 |
Taxes Payable, Current | 16 | 0 |
Other Accrued Liabilities | 9 | 7 |
Other current liabilities | $ 70 | $ 69 |
ESTIMATES, SUMMARY OF SIGNIFI_8
ESTIMATES, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL Estimates, Significant Accounting Policies and Balance Sheet Detail - Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Liability, Other Retirement Benefits, Noncurrent | $ 103 | $ 117 |
Asset Retirement Obligation | 30 | 26 |
Other Accrued Liabilities, Current | 88 | 90 |
Other Liabilities, Noncurrent | $ 221 | $ 233 |
ESTIMATES, SUMMARY OF SIGNIFI_9
ESTIMATES, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL Estimates, Significant Accounting Policies and Balance Sheet Detail - Top Customers (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Entity-Wide Revenue, Major Customer, Percentage | 100.00% | 100.00% | 100.00% |
Customer A [Member] | |||
Entity-Wide Revenue, Major Customer, Percentage | 10.00% | 10.00% | 13.00% |
Customer B [Member] | |||
Entity-Wide Revenue, Major Customer, Percentage | 16.00% | 16.00% | 0.00% |
Other Top 10 Customers | |||
Entity-Wide Revenue, Major Customer, Percentage | 31.00% | 28.00% | 41.00% |
Remaining Customers | |||
Entity-Wide Revenue, Major Customer, Percentage | 43.00% | 46.00% | 46.00% |
ESTIMATES, SUMMARY OF SIGNIF_10
ESTIMATES, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL Estimates, Significant Accounting Policies and Balance Sheet Detail - Capitalized Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Interest Costs Capitalized | $ 2 | $ 1 | $ 3 |
ESTIMATES, SUMMARY OF SIGNIF_11
ESTIMATES, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BALANCE SHEET DETAIL Estimates, Significant Accounting Policies and Balance Sheet Detail - Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Securities | $ 31 | $ 26 |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ||
Investments, Fair Value Disclosure | 20 | 17 |
Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities [Member] | ||
Investments, Fair Value Disclosure | $ 11 | $ 9 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction | |||
Interest income — affiliates | $ 0 | $ 0 | $ 10 |
Interest Expense, Related Party | 25 | 13 | 0 |
Affiliated Entity | |||
Related Party Transaction | |||
Revenue from Related Parties | 95 | 97 | 43 |
Related Party Transaction, Expenses from Transactions with Related Party | 6 | 3 | 7 |
Related Party Operating, Maintenance and General Expenses | 18 | 24 | 23 |
Interest income — affiliates | $ 0 | $ 0 | $ 10 |
Related Party (Narrative) (Deta
Related Party (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Non-Cash Equity Contribution | $ 31 | $ 8 | |
Note payable to related party | 356 | $ 732 | |
Limited Partner [Member] | |||
Non-Cash Equity Contribution | $ 31 | $ 8 | |
Affiliated Entity | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.314% |
Debt Obligations - Instruments
Debt Obligations - Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument | ||
Junior Subordinated Notes | $ 54 | $ 54 |
Note payable to related party | 732 | 356 |
Unamortized Net Premiums And Fair Value Adjustments | 12 | 16 |
Total debt outstanding | 247 | 401 |
Less: Current maturities of long-term debt | 0 | 152 |
Long-term Debt, Excluding Current Maturities | $ 247 | 249 |
Senior Notes due 2018 [Member] | ||
Debt Instrument | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |
8.125% Senior Notes due 2019 | ||
Debt Instrument | ||
Senior Notes | $ 0 | 150 |
Debt Instrument, Interest Rate, Stated Percentage | 8.125% | |
7.60% Senior Notes, due February 1, 2024 [Member] | ||
Debt Instrument | ||
Senior Notes | $ 82 | 82 |
Debt Instrument, Interest Rate, Stated Percentage | 7.60% | |
Senior Notes Due 2029 [Member] | ||
Debt Instrument | ||
Senior Notes | $ 66 | 66 |
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |
8.25% Senior Notes, due November 14, 2029 [Member] | ||
Debt Instrument | ||
Senior Notes | $ 33 | $ 33 |
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | |
Panhandle [Member] | ||
Debt Instrument | ||
Junior Subordinated Notes | $ 600 |
DEBT OBLIGATIONS Debt Obligatio
DEBT OBLIGATIONS Debt Obligations - Future Maturities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 82 |
Thereafter | 153 |
Long Term Debt Maturities Repayments Of Principal Total | $ 235 |
Debt Obligations - Narrative (D
Debt Obligations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument | ||
Debt Instrument, Fair Value Disclosure | $ 247 | $ 392 |
Long term debt, amount outstanding | 247 | 401 |
Note payable to related party | 732 | 356 |
Junior Subordinated Notes | 54 | 54 |
Unamortized Net Premiums And Fair Value Adjustments | $ 12 | $ 16 |
3.26% Junior Subordinated Notes due November 1, 2066 [Member] | ||
Debt Instrument | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.0175% | |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 4.927% | 5.559% |
Panhandle [Member] | ||
Debt Instrument | ||
Junior Subordinated Notes | $ 600 | |
8.125% Senior Notes due 2019 | ||
Debt Instrument | ||
Senior Notes | $ 0 | $ 150 |
Debt Instrument, Interest Rate, Stated Percentage | 8.125% | |
Repayments of Senior Debt | $ 150 | |
Senior Notes due 2018 [Member] | ||
Debt Instrument | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |
Repayments of Senior Debt | $ 400 | |
Debt Instrument, Maturity Date | Jun. 15, 2018 | |
Senior Notes Due 2029 [Member] | ||
Debt Instrument | ||
Senior Notes | $ 66 | 66 |
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |
7.60% Senior Notes, due February 1, 2024 [Member] | ||
Debt Instrument | ||
Senior Notes | $ 82 | 82 |
Debt Instrument, Interest Rate, Stated Percentage | 7.60% | |
8.25% Senior Notes, due November 14, 2029 [Member] | ||
Debt Instrument | ||
Senior Notes | $ 33 | $ 33 |
Debt Instrument, Interest Rate, Stated Percentage | 8.25% |
RETIREMENT BENEFITS Retirement
RETIREMENT BENEFITS Retirement Benefits - Obligations and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Defined Benefit Plan, Service Cost | $ 1 | $ 1 | $ 0 | |
Interest cost | 3 | 2 | 1 | |
Fair value of plan assets at beginning of period | 141 | |||
Fair value of plan assets at end of period | 169 | 141 | ||
Other Postretirement Benefits Plan [Member] | ||||
Benefit obligation at beginning of period | 78 | 25 | ||
Defined Benefit Plan, Service Cost | 1 | 1 | ||
Interest cost | 3 | 2 | ||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | 56 | ||
Actuarial gain | 12 | (3) | ||
Benefit obligation at end of period | 91 | 78 | 25 | |
Fair value of plan assets at beginning of period | 141 | 143 | ||
Return on plan assets and other | 23 | (7) | ||
Employer contributions | 8 | 8 | ||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 3 | 3 | ||
Fair value of plan assets at end of period | 169 | 141 | $ 143 | |
Amount overfunded at end of period (1) | [1] | 78 | 63 | |
Net actuarial gain | (5) | (2) | ||
Prior service cost | 37 | 61 | ||
Amounts recognized in accumulated other comprehensive income (pre-tax basis) consist of: | $ 32 | $ 59 | ||
[1] | Recorded as a non-current asset in the consolidated balance sheets. |
Retirement Benefits- Components
Retirement Benefits- Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Service Cost | $ 1 | $ 1 | $ 0 |
Interest cost | 3 | 2 | 1 |
Expected return on plan assets | (7) | (7) | (7) |
Prior service credit amortization | 24 | 14 | 1 |
Net periodic benefit cost | $ 21 | $ 10 | $ (5) |
RETIREMENT BENEFITS Retiremen_2
RETIREMENT BENEFITS Retirement Benefits - Weighted-average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |||
Discount rate | 4.05% | 3.44% | 3.75% |
Tax exempt accounts | 7.00% | 7.00% | 7.00% |
Expected long term reurn on assets, taxable accounts | 4.75% | 4.75% | 4.50% |
RETIREMENT BENEFITS Benefits -
RETIREMENT BENEFITS Benefits - Assumed Health Care Cost Trend Rates Used (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Postemployment Benefits [Abstract] | ||
Health care cost trend rate | 8.05% | 8.49% |
Rate to which the cost trend is assumed to decline (the ultimate trend rate) | 4.65% | 4.85% |
RETIREMENT BENEFITS Retiremen_3
RETIREMENT BENEFITS Retirement Benefits - Fair Value of Assets by Category (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Plan Assets, Amount | $ 169 | $ 141 | ||
Cash and Cash Equivalents | ||||
Defined Benefit Plan, Plan Assets, Amount | 9 | 14 | ||
Market index fund [Member] | ||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 73 | 53 | |
International index fund [Member] | ||||
Defined Benefit Plan, Plan Assets, Amount | [2] | 17 | 13 | |
U.S. bond index fund [Member] | ||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 70 | 61 | |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 169 | $ 141 | $ 143 | |
Other Postretirement Benefits Plan [Member] | Market index fund [Member] | ||||
Large Cap US Equitiies | 100.00% | |||
Other Postretirement Benefits Plan [Member] | International index fund [Member] | ||||
Large Cap US Equitiies | 5.00% | |||
International Securities Funds | 95.00% | |||
Other Postretirement Benefits Plan [Member] | U.S. bond index fund [Member] | ||||
Large Cap US Equitiies | 23.00% | |||
Fixed Income Securities | 44.00% | |||
[1] | The fund invests primarily in common stocks included in the Dow Jones U.S. Total Stock Market Index. As of December 31, 2019, this fund was invested 100% in domestic equities. | |||
[2] | The fund invests primarily in both the securities and in depository receipts representing securities included in the MSCI All Country World Index. As of December 31, 2019, this fund was invested 95% in foreign equities and 5% in domestic equities. | |||
[3] | The fund invests primarily in bonds included in the Bloomberg Barclays U.S. Aggregate Bond Index. As of December 31, 2019, this fund was invested 44% in U.S. Treasury, 26% in mortgage-backed securities, 23% in corporations and 7% in other. |
RETIREMENT BENEFITS Retiremen_4
RETIREMENT BENEFITS Retirement Benefits - Estimate of Expected Benefit Payments (Details) - Other Postretirement Benefits Plan [Member] $ in Millions | Dec. 31, 2019USD ($) |
2020 | $ 4 |
2021 | 5 |
2022 | 6 |
2023 | 6 |
2024 | 6 |
2025-2029 | $ 25 |
RETIREMENT BENEFITS Retiremen_5
RETIREMENT BENEFITS Retirement Benefits - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure | ||
Defined Contribution Plan Employers Matching Contribution Percentage to Participants Percentage Conribution | 100.00% | |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 8 | |
Defined Contribution Plan, Employer Matching Contribution, Percent | 5.00% | |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Prior Service Cost Arising During Period, before Tax | $ 18 | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.92% | 3.44% |
Other Postretirement Benefits Plan [Member] | Fixed Income Securities | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 75.00% | |
Other Postretirement Benefits Plan [Member] | Market index fund [Member] | ||
Defined Benefit Plan Disclosure | ||
Large Cap US Equitiies | 100.00% | |
Other Postretirement Benefits Plan [Member] | International index fund [Member] | ||
Defined Benefit Plan Disclosure | ||
Large Cap US Equitiies | 5.00% | |
International Securities Funds | 95.00% | |
Other Postretirement Benefits Plan [Member] | U.S. bond index fund [Member] | ||
Defined Benefit Plan Disclosure | ||
Large Cap US Equitiies | 23.00% | |
Other securities | 7.00% | |
Fixed Income Securities | 44.00% | |
Mortgage-backed securities | 26.00% | |
Savings Plan [Member] | ||
Defined Benefit Plan Disclosure | ||
Defined Contribution Plan, Cost | $ 2 | |
Supplemental Employee Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 3.00% | |
Company Contributions Vested | 100.00% | |
Company Contributions Years | five | |
Defined Contribution Plan, Cost | $ 1 | |
Minimum [Member] | Other Postretirement Benefits Plan [Member] | Equity Securities | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 25.00% | |
Minimum [Member] | Other Postretirement Benefits Plan [Member] | Fixed Income Securities | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 65.00% | |
Maximum [Member] | Other Postretirement Benefits Plan [Member] | Equity Securities | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35.00% |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 31 | $ 30 | $ (10) |
State | 8 | 7 | (1) |
Current Income Tax Expense (Benefit) | 39 | 37 | (11) |
Federal | (349) | 2 | (253) |
State | (92) | 10 | 1 |
Deferred income taxes | (441) | 12 | (252) |
Total income tax expense (benefit) | $ (402) | $ 49 | $ (263) |
INCOME TAXES Income Taxes - Eff
INCOME TAXES Income Taxes - Effective Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Effective Income Tax Rate Reconciliation [Line Items] | |||
Computed statutory income tax expense at 35% | $ 40 | $ 33 | $ (108) |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount | (17) | 0 | 0 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 0 | 0 | (249) |
State income taxes, net of federal income tax benefit | 5 | 14 | 1 |
Non-deductible goodwill impairment | 0 | 0 | 92 |
Other | (2) | 2 | 1 |
Total income tax expense (benefit) | (402) | 49 | (263) |
Effective Income Tax Rate Reconciliation, Change in Tax Status of Subsidiary | $ (428) | $ 0 | $ 0 |
INCOME TAXES Income Taxes - Def
INCOME TAXES Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other postretirement benefits | $ 0 | $ 18 |
Debt amortization | 0 | 11 |
Other | 0 | 74 |
Total deferred income tax assets | 0 | 103 |
Deferred Tax Assets, Valuation Allowance | 0 | 0 |
Deferred Tax Assets, Net | 0 | 103 |
Property, plant and equipment | 0 | (497) |
Deferred Tax Liabilities, Investment in Noncontrolled Affiliates | 0 | (2) |
Other | 0 | (41) |
Deferred Tax Liabilities, Gross | 0 | (540) |
Deferred Tax Liabilities, Net | $ 0 | $ (437) |
INCOME TAXES Income Taxes - Nar
INCOME TAXES Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits | $ 12 | ||
Unrecognized tax benfits for state filing positions, net of federal tax | 9 | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 0 | $ 0 | $ (249) |
ASSET RETIREMENT OBLIGATIONS _2
ASSET RETIREMENT OBLIGATIONS Asset Retirement Obligations - Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other ARO Assets | ||
ARO Underlying Asset | $ 0 | $ 2 |
ASSET RETIREMENT OBLIGATIONS _3
ASSET RETIREMENT OBLIGATIONS Asset Retirement Obligations - Schedule of Changes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Beginning balance | $ 26 | $ 57 | $ 54 |
Revisions | 9 | (33) | 1 |
Settled | (2) | (1) | (1) |
Accretion expense | 2 | 3 | 3 |
Ending balance | $ 35 | $ 26 | $ 57 |
ASSET RETIREMENT OBLIGATIONS _4
ASSET RETIREMENT OBLIGATIONS Asset Retirement Obligations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Available-for-sale Securities | $ 31 | $ 26 | |
Asset Retirement Obligation, Revision of Estimate | 9 | (33) | $ 1 |
Asset Retirement Obligation, Liabilities Settled | 2 | 1 | $ 1 |
Other ARO Assets | |||
ARO Underlying Asset | $ 0 | $ 2 |
Commitment and Contingenices (N
Commitment and Contingenices (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Contingent Residual Support Agreement, Amount | $ 2,000 | |
Estimated litigation liability | 18 | $ 20 |
Accrued Environmental Loss Contingencies, Noncurrent | $ 1 | $ 2 |
Leases Narrative (Details)
Leases Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Short-term Lease, Cost | $ 2 |
Real Estate [Member] | |
Lessee, Operating Lease, Term of Contract | 30 years |
Maximum [Member] | Equipment [Member] | |
Lessee, Operating Lease, Term of Contract | 10 years |
Minimum [Member] | Equipment [Member] | |
Lessee, Operating Lease, Term of Contract | 5 years |
Leases Lease Maturity (Details)
Leases Lease Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 13 years | |
Weighted-average discount rate (%) | 4.00% | |
2020 | $ 1 | |
2021 | 0 | |
2022 | 1 | |
2023 | 1 | |
2024 | 0 | |
Thereafter | 4 | |
Total lease payments | 7 | |
Less: present value discount | 2 | |
Present value of lease liabilities | $ 5 | $ 6 |
REVENUE Revenue Narrative (Deta
REVENUE Revenue Narrative (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset, after Allowance for Credit Loss | $ 0 |
Contract with Customer, Liability | $ 0 |
REVENUE Revenue - Schedule of F
REVENUE Revenue - Schedule of Future Contract Recognition (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 2,563 |
QUARTERLY OPERATIONS Quarterl_2
QUARTERLY OPERATIONS Quarterly Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Asset Impairment Charges | $ 12 | $ 0 | $ 389 | ||||||||
Operating revenues | $ 146 | $ 135 | $ 139 | $ 158 | $ 154 | $ 137 | $ 134 | $ 149 | 578 | 574 | 480 |
Operating income | 62 | 41 | 52 | 76 | 56 | 41 | 42 | 64 | 231 | 203 | (266) |
Net income (loss) | $ 33 | $ 475 | $ 31 | $ 50 | $ 29 | $ 23 | $ 22 | $ 34 | $ 589 | $ 108 | $ (45) |
Uncategorized Items - pepl20191
Label | Element | Value |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date Axis: 2021-12-31 | ||
Revenue, Remaining Performance Obligation, Amount | us-gaap_RevenueRemainingPerformanceObligation | $ 280,000,000 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date Axis: 2022-12-31 | ||
Revenue, Remaining Performance Obligation, Amount | us-gaap_RevenueRemainingPerformanceObligation | 1,554,000,000 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date Axis: 2020-12-31 | ||
Revenue, Remaining Performance Obligation, Amount | us-gaap_RevenueRemainingPerformanceObligation | 328,000,000 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Start Date Axis: 2019-12-31 | ||
Revenue, Remaining Performance Obligation, Amount | us-gaap_RevenueRemainingPerformanceObligation | $ 401,000,000 |