Document and Entity Information
Document and Entity Information - Jun. 30, 2015 - shares | Total |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | SE |
Entity Registrant Name | SPECTRA ENERGY CORP. |
Entity Central Index Key | 1,373,835 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 671,363,087 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - Spectra Energy - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Operating Revenues | |||||
Transportation, storage and processing of natural gas | $ 802 | $ 780 | $ 1,644 | $ 1,667 | |
Distribution of natural gas | 238 | 309 | 845 | 935 | |
Sales of natural gas liquids | 31 | 40 | 97 | 227 | |
Transportation of crude oil | 90 | 70 | 174 | 141 | |
Other | 31 | 54 | 55 | 126 | |
Total operating revenues | 1,192 | 1,253 | 2,815 | 3,096 | |
Operating Expenses | |||||
Natural gas and petroleum products purchased | 119 | 209 | 551 | 737 | |
Operating, maintenance and other | 389 | 405 | 743 | 768 | |
Depreciation and amortization | 193 | 199 | 386 | 399 | |
Property and other taxes | 85 | 102 | 188 | 215 | |
Total operating expenses | 786 | 915 | 1,868 | 2,119 | |
Operating Income | 406 | 338 | 947 | 977 | |
Other Income and Expenses | |||||
Earnings (loss) from equity investments | (189) | 85 | (165) | 246 | |
Other income and expenses, net | 22 | 6 | 42 | 15 | |
Total other income and expenses | (167) | 91 | (123) | 261 | |
Interest Expense | 166 | 176 | 325 | 354 | |
Earnings Before Income Taxes | 73 | 253 | 499 | 884 | |
Income Tax Expense (Benefit) | (7) | 65 | 94 | 229 | |
Net Income | 80 | 188 | 405 | 655 | |
Net Income—Noncontrolling Interests | 62 | 42 | 120 | 90 | |
Net Income—Controlling Interests | $ 18 | $ 146 | $ 285 | $ 565 | |
Weighted-average shares outstanding | |||||
Basic (in shares) | 671 | 671 | 671 | 671 | |
Diluted (in shares) | 672 | 673 | 672 | 672 | |
Basic and diluted | [1] | $ 0.03 | $ 0.22 | $ 0.42 | $ 0.84 |
Earnings per share | |||||
Dividends per share | $ 0.37 | $ 0.335 | $ 0.74 | $ 0.67 | |
[1] | Quarterly earnings-per-share amounts are stand-alone calculations and may not be additive to full-year amounts due to rounding. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - Spectra Energy - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Income | $ 80 | $ 188 | $ 405 | $ 655 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 87 | 223 | (405) | (25) |
Non-cash mark-to-market net gain on hedges | 0 | 1 | 0 | 3 |
Reclassification of cash flow hedges into earnings | 0 | 1 | 0 | 3 |
Pension and benefits impact (net of taxes of $2, $3, $5 and $6, respectively) | 7 | 6 | 13 | 13 |
Other | (1) | 0 | 0 | 0 |
Total other comprehensive income (loss) | 93 | 231 | (392) | (6) |
Total Comprehensive Income, net of tax | 173 | 419 | 13 | 649 |
Less: Comprehensive Income—Noncontrolling Interests | 64 | 45 | 114 | 89 |
Comprehensive Income (Loss)—Controlling Interests | $ 109 | $ 374 | $ (101) | $ 560 |
Condensed Consolidated Stateme4
Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | $ 2 | $ 3 | $ 5 | $ 6 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - Spectra Energy - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 287 | $ 215 |
Receivables, net | 880 | 1,336 |
Inventory | 248 | 313 |
Fuel Tracker | 57 | 102 |
Other | 265 | 366 |
Total current assets | 1,737 | 2,332 |
Investments and Other Assets | ||
Investments in and loans to unconsolidated affiliates | 2,701 | 2,966 |
Goodwill | 4,615 | 4,714 |
Other | 307 | 327 |
Total investments and other assets | 7,623 | 8,007 |
Property, Plant and Equipment | ||
Cost | 29,250 | 29,211 |
Less accumulated depreciation and amortization | 6,969 | 6,904 |
Net property, plant and equipment | 22,281 | 22,307 |
Regulatory Assets and Deferred Debits | 1,403 | 1,394 |
Total Assets | 33,044 | 34,040 |
Current Liabilities | ||
Accounts payable | 557 | 458 |
Commercial paper | 535 | 1,583 |
Taxes accrued | 108 | 91 |
Interest accrued | 188 | 181 |
Current maturities of long-term debt | 917 | 327 |
Other | 832 | 1,169 |
Total current liabilities | 3,137 | 3,809 |
Long-term Debt | 12,783 | 12,769 |
Deferred Credits and Other Liabilities | ||
Deferred income taxes | 5,459 | 5,405 |
Regulatory and other | 1,328 | 1,401 |
Total deferred credits and other liabilities | $ 6,787 | $ 6,806 |
Commitments and Contingencies | ||
Preferred Stock of Subsidiaries | $ 258 | $ 258 |
Equity | ||
Preferred stock, $0.001 par, 22 million shares authorized, no shares outstanding | 0 | 0 |
Common stock, $0.001 par, 1 billion shares authorized, 671 million shares outstanding at June 30, 2015 and December 31, 2014 | 1 | 1 |
Additional paid-in capital | 4,990 | 4,956 |
Retained earnings | 2,329 | 2,541 |
Accumulated other comprehensive income | 276 | 662 |
Total controlling interests | 7,596 | 8,160 |
Noncontrolling interests | 2,483 | 2,238 |
Total equity | 10,079 | 10,398 |
Total Liabilities and Equity | $ 33,044 | $ 34,040 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Preferred stock, par (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 22 | 22 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares outstanding | 671 | 671 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - Spectra Energy - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net Income | $ 405 | $ 655 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 393 | 405 |
Deferred income tax expense | 25 | 224 |
(Earnings) loss from equity investments | 165 | (246) |
Distributions received from unconsolidated affiliates | 93 | 199 |
Other | 375 | (28) |
Net cash provided by (used in) operating activities | 1,456 | 1,209 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (989) | (833) |
Investments in and loans to unconsolidated affiliates | (34) | (30) |
Purchases of held-to-maturity securities | (329) | (437) |
Proceeds from sales and maturities of held-to-maturity securities | 344 | 453 |
Purchases of available-for-sale securities | 0 | (13) |
Proceeds from sales and maturities of available-for-sale securities | 1 | 7 |
Distributions received from unconsolidated affiliates | 35 | 242 |
Other changes in restricted funds | (6) | (1) |
Other | 2 | 0 |
Net cash provided by (used in) investing activities | (976) | (612) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from the issuance of long-term debt | 994 | 712 |
Payments for the redemption of long-term debt | (39) | (736) |
Net decrease in commercial paper | (1,030) | (256) |
Distributions to noncontrolling interests | (93) | (81) |
Contributions from noncontrolling interests | 90 | 112 |
Proceeds from the issuances of Spectra Energy Partners, LP common units | 180 | 191 |
Dividends paid on common stock | (499) | (453) |
Other | (9) | 12 |
Net cash provided by (used in) financing activities | (406) | (499) |
Effect of exchange rate changes on cash | (2) | 1 |
Net increase in cash and cash equivalents | 72 | 99 |
Cash and cash equivalents at beginning of period | 215 | 201 |
Cash and cash equivalents at end of period | 287 | 300 |
Supplemental Disclosures | ||
Property, plant and equipment non-cash accruals | $ 197 | $ 118 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income Foreign Currency Translation Adjustments | Accumulated Other Comprehensive Income Other | Noncontrolling Interests |
Net income-controlling interests | $ 565 | $ 565 | |||||
Net Income—Noncontrolling Interests | 90 | $ 90 | |||||
Beginning Balance at Dec. 31, 2013 | 10,323 | $ 1 | $ 4,869 | 2,383 | $ 1,557 | $ (316) | 1,829 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 655 | ||||||
Other comprehensive income (loss) | (6) | (24) | 19 | (1) | |||
Dividends on common stock | (451) | (451) | |||||
Stock-based compensation | 6 | 6 | |||||
Distributions to noncontrolling interests | (81) | (81) | |||||
Contributions from noncontrolling interests | 112 | 112 | |||||
Spectra Energy common stock issued | 9 | 9 | |||||
Spectra Energy Partners, LP common units issued | 173 | 29 | 144 | ||||
Transfer of interests in subsidiaries to Spectra Energy Partners, LP | 1 | 0 | 1 | ||||
Other, net | 4 | 5 | (1) | ||||
Ending Balance at Jun. 30, 2014 | 10,745 | 1 | 4,918 | 2,497 | 1,533 | (297) | 2,093 |
Net income-controlling interests | 285 | 285 | |||||
Net Income—Noncontrolling Interests | 120 | 120 | |||||
Beginning Balance at Dec. 31, 2014 | 10,398 | 1 | 4,956 | 2,541 | 1,016 | (354) | 2,238 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 405 | ||||||
Other comprehensive income (loss) | (392) | (399) | 13 | (6) | |||
Dividends on common stock | (498) | (498) | |||||
Stock-based compensation | 6 | 6 | |||||
Distributions to noncontrolling interests | (93) | (93) | |||||
Contributions from noncontrolling interests | 90 | 90 | |||||
Spectra Energy common stock issued | 1 | 1 | |||||
Spectra Energy Partners, LP common units issued | 164 | 25 | 139 | ||||
Other, net | (2) | 2 | 1 | (5) | |||
Ending Balance at Jun. 30, 2015 | $ 10,079 | $ 1 | $ 4,990 | $ 2,329 | $ 617 | $ (341) | $ 2,483 |
General
General | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The terms “we,” “our,” “us” and “Spectra Energy” as used in this report refer collectively to Spectra Energy Corp and its subsidiaries unless the context suggests otherwise. These terms are used for convenience only and are not intended as a precise description of any separate legal entity within Spectra Energy. The term “Spectra Energy Partners” refers to our Spectra Energy Partners operating segment. The term “SEP” refers to Spectra Energy Partners, LP, our master limited partnership. Nature of Operations. Spectra Energy Corp, through its subsidiaries and equity affiliates, owns and operates a large and diversified portfolio of complementary natural gas-related energy assets, and owns and operates a crude oil pipeline system that connects Canadian and U.S. producers to refineries in the U.S. Rocky Mountain and Midwest regions. We currently operate in three key areas of the natural gas industry: gathering and processing, transmission and storage, and distribution. We provide transmission and storage of natural gas to customers in various regions of the northeastern and southeastern United States, the Maritime Provinces in Canada, the Pacific Northwest in the United States and Canada, and in the province of Ontario, Canada. We also provide natural gas sales and distribution services to retail customers in Ontario, and natural gas gathering and processing services to customers in western Canada. We also own a 50% interest in DCP Midstream, LLC (DCP Midstream), based in Denver, Colorado, one of the leading natural gas gatherers in the United States based on wellhead volumes, and one of the largest U.S. producers and marketers of natural gas liquids (NGLs). Basis of Presentation. The accompanying Condensed Consolidated Financial Statements include our accounts and the accounts of our majority-owned subsidiaries, after eliminating intercompany transactions and balances. These interim financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014 , and reflect all normal recurring adjustments that are, in our opinion, necessary to fairly present our results of operations and financial position. Amounts reported in the Condensed Consolidated Statements of Operations are not necessarily indicative of amounts expected for the respective annual periods due to the effects of seasonal temperature variations on energy consumption, primarily in our gas distribution operations, as well as changing commodity prices on certain of our processing operations and other factors. Use of Estimates. To conform with generally accepted accounting principles (GAAP) in the United States, we make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements. Although these estimates are based on our best available knowledge at the time, actual results could differ. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments We manage our business in four reportable segments: Spectra Energy Partners, Distribution, Western Canada Transmission & Processing and Field Services. The remainder of our business operations is presented as “Other,” and consists of unallocated corporate costs and employee benefit plan assets and liabilities, 100%-owned captive insurance subsidiaries and other miscellaneous activities. Our chief operating decision maker (CODM) regularly reviews financial information about each of these segments in deciding how to allocate resources and evaluate performance. There is no aggregation within our reportable business segments. Spectra Energy's presentation of its Spectra Energy Partners segment is reflective of the parent-level focus by our CODM, considering the resource allocation and governance provisions associated with SEP’s master limited partnership structure. SEP maintains a capital and cash management structure that is separate from Spectra Energy’s, is self-funding and maintains its own lines of bank credit and cash management accounts. From a Spectra Energy perspective, our CODM evaluates the Spectra Energy Partners segment as a whole, without regard to any of SEP’s individual businesses. Spectra Energy Partners provides transmission, storage and gathering of natural gas, as well as the transportation of crude oil and NGLs through interstate pipeline systems for customers in various regions of the midwestern, northeastern and southern U.S. and Canada. The natural gas transmission and storage operations are primarily subject to the rules and regulations of the Federal Energy Regulatory Commission (FERC). The crude oil transportation operations are primarily subject to regulation by the FERC in the U.S. and the National Energy Board (NEB) in Canada. Our Spectra Energy Partners segment is composed of the operations of SEP, less governance costs, which are included in “Other.” Distribution provides retail natural gas distribution service in Ontario, Canada, as well as natural gas transmission and storage services to other utilities and energy market participants. These services are provided by Union Gas Limited (Union Gas), and are primarily subject to the rules and regulations of the Ontario Energy Board (OEB). Western Canada Transmission & Processing provides transmission of natural gas, natural gas gathering and processing services, and NGL extraction, fractionation, transportation, storage and marketing to customers in western Canada, the northern tier of the U.S. and the Maritime Provinces in Canada. This segment conducts business mostly through BC Pipeline, BC Field Services, and the NGL marketing and Canadian Midstream businesses, and Maritimes & Northeast Pipeline Limited Partnership (M&N Canada). BC Pipeline and BC Field Services and M&N Canada operations are primarily subject to the rules and regulations of the NEB. Field Services gathers, compresses, treats, processes, transports, stores and sells natural gas, produces, fractionates, transports, stores and sells NGLs, recovers and sells condensate, and trades and markets natural gas and NGLs. It conducts operations through DCP Midstream, which is owned 50% by us and 50% by Phillips 66. DCP Midstream gathers raw natural gas through gathering systems connecting to several interstate and intrastate natural gas and NGL pipeline systems, one natural gas storage facility and one NGL storage facility. DCP Midstream operates in a diverse number of regions, including the Permian Basin, Eagle Ford, Niobrara/DJ Basin and the Midcontinent. DCP Midstream Partners, LP (DCP Partners) is a publicly traded master limited partnership, of which DCP Midstream acts as general partner. As of June 30, 2015 , DCP Midstream had an approximate 21% ownership interest in DCP Partners, including DCP Midstream’s limited partner and general partner interests. Our reportable segments offer different products and services and are managed separately as business units. Management evaluates segment performance based on earnings from continuing operations before interest, taxes, and depreciation and amortization (EBITDA). Cash, cash equivalents and short-term investments are managed at the parent-company levels, so the associated gains and losses from foreign currency transactions and interest and dividend income are excluded from the segments’ EBITDA. Our segment EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate EBITDA in the same manner. Transactions between reportable segments are accounted for on the same basis as transactions with unaffiliated third parties. Business Segment Data Condensed Consolidated Statements of Operations Unaffiliated Revenues Intersegment Revenues Total Operating Revenues Depreciation and Amortization Segment EBITDA/ Consolidated Earnings before Income Taxes (in millions) Three Months Ended June 30, 2015 Spectra Energy Partners $ 603 $ — $ 603 $ 72 $ 478 Distribution 290 — 290 45 98 Western Canada Transmission & Processing 297 7 304 63 104 Field Services — — — — (233 ) Total reportable segments 1,190 7 1,197 180 447 Other 2 15 17 13 (12 ) Eliminations — (22 ) (22 ) — — Depreciation and amortization — — — — 193 Interest expense — — — — 166 Interest income and other (a) — — — — (3 ) Total consolidated $ 1,192 $ — $ 1,192 $ 193 $ 73 Three Months Ended June 30, 2014 Spectra Energy Partners $ 531 $ — $ 531 $ 72 $ 374 Distribution 360 — 360 48 112 Western Canada Transmission & Processing 360 31 391 68 111 Field Services — — — — 54 Total reportable segments 1,251 31 1,282 188 651 Other 2 17 19 11 (24 ) Eliminations — (48 ) (48 ) — — Depreciation and amortization — — — — 199 Interest expense — — — — 176 Interest income and other (a) — — — — 1 Total consolidated $ 1,253 $ — $ 1,253 $ 199 $ 253 Six Months Ended June 30, 2015 Spectra Energy Partners $ 1,209 $ — $ 1,209 $ 146 $ 933 Distribution 952 — 952 90 290 Western Canada Transmission & Processing 650 24 674 125 265 Field Services — — — — (250 ) Total reportable segments 2,811 24 2,835 361 1,238 Other 4 31 35 25 (27 ) Eliminations — (55 ) (55 ) — — Depreciation and amortization — — — — 386 Interest expense — — — — 325 Interest income and other (a) — — — — (1 ) Total consolidated $ 2,815 $ — $ 2,815 $ 386 $ 499 Six Months Ended June 30, 2014 Spectra Energy Partners $ 1,112 $ — $ 1,112 $ 145 $ 803 Distribution 1,078 — 1,078 97 338 Western Canada Transmission & Processing 901 65 966 135 348 Field Services — — — — 184 Total reportable segments 3,091 65 3,156 377 1,673 Other 5 32 37 22 (41 ) Eliminations — (97 ) (97 ) — — Depreciation and amortization — — — — 399 Interest expense — — — — 354 Interest income and other (a) — — — — 5 Total consolidated $ 3,096 $ — $ 3,096 $ 399 $ 884 ___________________________________ (a) Includes foreign currency transaction gains and losses related to segment EBITDA. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2015 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters Union Gas. In 2012, the OEB determined that revenues derived from the optimization of Union Gas’ upstream transportation contracts in 2011 would be treated as a reduction to gas costs rather than being treated as optimization revenues and included in utility earnings. In May 2014, Union Gas filed a notice of appeal to the Ontario Court of Appeal and a hearing was held in December 2014. The appeal was dismissed in June 2015 and no further appeals will be filed. In December 2014, Union Gas filed an application with the OEB for the disposition of the 2013 energy conservation deferral and variance account balances. As a result of this application, Union Gas has a receivable from customers of approximately $8 million and $9 million at June 30, 2015 and December 31, 2014 , respectively, which is reflected as Current Assets — Other on the Condensed Consolidated Balance Sheets. A written hearing concluded in April 2015. In June 2015, a decision from the OEB was received approving recovery from ratepayers effective July 1, 2015. In April 2015, the OEB issued its decision on Union Gas’ application for an order approving an interruptible liquefied natural gas (LNG) service. The OEB determined that it would not regulate this service, as it was satisfied that there is LNG competition sufficient to protect the public interest and approved the proposed cross charges between the regulated and unregulated services until an application for new rates in 2019 is filed. At this time, Union Gas does not expect any material financial impact as a result of this decision. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax benefit was $7 million for the three months ended June 30, 2015 , compared to an income tax expense of $65 million for the same period in 2014 . Income tax expense was $94 million for the six months ended June 30, 2015 , compared to $229 million for the same period in 2014 . The lower tax expense for both periods was primarily due to the $72 million tax impact of the impairment of goodwill at DCP Midstream, lower earnings and the effect of a weaker Canadian dollar. The effective income tax rate was negative 10% for the three months ended June 30, 2015 , compared to 26% for the same period in 2014 . The effective income tax rate was 19% for the six months ended June 30, 2015 , compared to 26% for the same period in 2014 . The lower effective income tax rates in both periods were primarily attributable to the $72 million tax impact of the impairment of goodwill at DCP Midstream. There was a $6 million increase in unrecognized tax benefits recorded during the six months ended June 30, 2015 . Although uncertain, we believe it is reasonably possible that the total amount of unrecognized tax benefits could decrease by approximately $25 million to $30 million prior to June 30, 2016, as a result of the expiration of statutes of limitations and expected audit settlements. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share (EPS) is computed by dividing net income from controlling interests by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income from controlling interests by the diluted weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as stock options, stock-based performance unit awards and phantom stock awards, were exercised, settled or converted into common stock. The following table presents our basic and diluted EPS calculations: Three Months Six Months 2015 2014 2015 2014 (in millions, except per-share amounts) Net income—controlling interests $ 18 $ 146 $ 285 $ 565 Weighted-average common shares outstanding Basic 671 671 671 671 Diluted 672 673 672 672 Basic and diluted earnings per common share (a) $ 0.03 $ 0.22 $ 0.42 $ 0.84 ___________________ (a) Quarterly earnings-per-share amounts are stand-alone calculations and may not be additive to full-year amounts due to rounding. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table presents the net of tax changes in Accumulated Other Comprehensive Income (AOCI) by component and amounts reclassified out of AOCI to Net Income, excluding amounts attributable to noncontrolling interests: Foreign Currency Translation Adjustments Pension and Post-retirement Benefit Plan Obligations Gas Purchase Contract Hedges Other Total Accumulated Other Comprehensive Income (in millions) March 31, 2015 $ 532 $ (345 ) $ — $ (2 ) $ 185 Other AOCI activity 85 7 — (1 ) 91 June 30, 2015 $ 617 $ (338 ) $ — $ (3 ) $ 276 March 31, 2014 $ 1,313 $ (297 ) $ (7 ) $ (1 ) $ 1,008 Reclassified to net income — — — 1 1 Other AOCI activity 220 6 1 — 227 June 30, 2014 $ 1,533 $ (291 ) $ (6 ) $ — $ 1,236 December 31, 2014 $ 1,016 $ (351 ) $ (3 ) $ — $ 662 Other AOCI activity (399 ) 13 3 (3 ) (386 ) June 30, 2015 $ 617 $ (338 ) $ — $ (3 ) $ 276 December 31, 2013 $ 1,557 $ (304 ) $ (11 ) $ (1 ) $ 1,241 Reclassified to net income — — 2 1 3 Other AOCI activity (24 ) 13 3 — (8 ) June 30, 2014 $ 1,533 $ (291 ) $ (6 ) $ — $ 1,236 Reclassifications to Net Income are primarily included in Other Income and Expenses, Net on our Condensed Consolidated Statements of Operations. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consists of natural gas and NGLs held in storage for transmission and processing, and also includes materials and supplies. Natural gas inventories primarily relate to the Distribution segment in Canada and are valued at costs approved by the OEB. The difference between the approved price and the actual cost of gas purchased is recorded as either a receivable or a current liability, as appropriate, for future disposition with customers, subject to approval by the OEB. The remaining inventory is recorded at the lower of cost or market, primarily using average cost. The components of inventory are as follows: June 30, December 31, (in millions) Natural gas $ 134 $ 211 NGLs 42 28 Materials and supplies 72 74 Total inventory $ 248 $ 313 |
Investments in and Loans to Unc
Investments in and Loans to Unconsolidated Affiliates | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in and Loans to Unconsolidated Affiliates | Investments in and Loans to Unconsolidated Affiliates Our most significant investment in unconsolidated affiliates is our 50% investment in DCP Midstream, which is accounted for under the equity method of accounting. The following represents summary financial information for DCP Midstream, presented at 100%: Three Months Six Months 2015 2014 2015 2014 (in millions) Operating revenues $ 1,869 $ 3,541 $ 3,912 $ 7,456 Operating expenses 2,332 3,387 4,323 7,032 Operating income (loss) (463 ) 154 (411 ) 424 Net income (loss) (491 ) 92 (497 ) 295 Net income (loss) attributable to members’ interests (466 ) 89 (503 ) 254 DCP Partners issues, from time to time, limited partner units to the public, which are recorded by DCP Midstream directly to its equity. Our proportionate share of gains from those issuances, totaling $9 million in the second quarter of 2014 , and $2 million and $57 million during the six month periods ending June 30, 2015 and 2014, respectively, are reflected in Earnings (Loss) From Equity Investments in the Condensed Consolidated Statements of Operations. Due to the significant downturn in commodity prices over the past three quarters, including further deterioration in the second quarter of 2015, DCP Midstream determined it was more likely than not that the estimated fair values of certain of its goodwill reporting units and certain of DCP Partners goodwill reporting units were below their carrying amount, and performed a goodwill impairment test. The impairment test was based on an internal discounted cash flow model taking into account various observable and non-observable factors, such as prices, volumes, expenses and discount rate. The impairment test resulted in DCP Midstream’s recognition of a $427 million goodwill impairment during the second quarter of 2015, which reduced our equity earnings from DCP Midstream by $122 million after-tax. This impairment represents DCP Midstream’s best estimate pending finalization of the fair value assessments. Due to the impairment of goodwill recognized by DCP Midstream, we assessed our equity investment in DCP Midstream and determined that no indicators of impairment were noted. |
Goodwill Goodwill
Goodwill Goodwill | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure [Text Block] | Goodwill We perform our goodwill impairment test annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. We completed our annual goodwill impairment test as of April 1, 2015 and no impairments were identified. We perform our annual review for goodwill impairment at the reporting unit level, which is identified by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available, whether segment management regularly reviews the operating results of those components and whether the economic and regulatory characteristics are similar. We determined that our reporting units are equivalent to our reportable segments, except for the reporting units of our Western Canada Transmission & Processing and Spectra Energy Partners reportable segments, which are one level below. As permitted under accounting guidance on testing goodwill for impairment, we perform either a qualitative assessment or a quantitative assessment of each of our reporting units based on management’s judgment. With respect to our qualitative assessments, we consider events and circumstances specific to us, such as macroeconomic conditions, industry and market considerations, cost factors and overall financial performance, when evaluating whether it is more likely than not that the fair values of our reporting units are less than their respective carrying amounts. Our Empress NGL and BC Field Services businesses, reporting units within Western Canada Transmission & Processing, are affected by commodity prices. We performed our Empress NGL and BC Field Services reporting units’ impairment tests using updated assumptions and financial data and concluded that there was no impairment of goodwill for either business unit. See Note 8 for discussion related to the impairment of goodwill recognized by DCP Midstream. |
Marketable Securities and Restr
Marketable Securities and Restricted Funds | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities and Restricted Funds | Marketable Securities and Restricted Funds We routinely invest excess cash and various restricted balances in securities such as commercial paper, banker’s acceptances, corporate debt securities, treasury bills and money market funds in the U.S. and Canada. We do not purchase marketable securities for speculative purposes; therefore we do not have any securities classified as trading securities. While we do not routinely sell marketable securities prior to their scheduled maturity dates, some of our investments may be held and restricted for insurance purposes, so these investments are classified as available-for-sale (AFS) marketable securities as they may occasionally be sold prior to their scheduled maturity dates due to the unexpected timing of cash needs. Initial investments in securities are classified as purchases of the respective type of securities (AFS marketable securities or held-to-maturity (HTM) marketable securities). Maturities of securities are classified within proceeds from sales and maturities of securities in the Condensed Consolidated Statements of Cash Flows. AFS Securities. AFS securities are as follows: Estimated Fair Value June 30, December 31, 2014 (in millions) Corporate debt securities $ 22 $ 23 Money market funds — 1 Total available-for-sale securities $ 22 $ 24 Our AFS securities are classified on the Condensed Consolidated Balance Sheets as follows: Estimated Fair Value June 30, December 31, 2014 (in millions) Restricted funds Investments and other assets—other $ — $ 1 Non-restricted funds Current assets—other 2 3 Investments and other assets—other 20 20 Total available-for-sale securities $ 22 $ 24 At June 30, 2015 , the weighted-average contractual maturity of outstanding AFS securities was less than one year . There were no material gross unrealized holding gains or losses associated with investments in AFS securities at June 30, 2015 or December 31, 2014 . HTM Securities. All of our HTM securities are restricted funds and are as follows: Estimated Fair Value Description Condensed Consolidated Balance Sheets Caption June 30, 2015 December 31, 2014 (in millions) Banker’s acceptances Current assets—other $ 34 $ 38 Canadian government securities Current assets—other 27 30 Money market funds Current assets—other 3 3 Canadian government securities Investments and other assets—other 81 101 Total held-to-maturity securities $ 145 $ 172 All of our HTM securities are restricted funds pursuant to certain M&N Canada and Express-Platte (our crude oil pipeline system) debt agreements. The funds restricted for M&N Canada, plus future cash from operations that would otherwise be available for distribution to the partners of M&N Canada, are required to be placed in escrow until the balance in escrow is sufficient to fund all future debt service on the M&N Canada 6.90% senior secured notes. There are sufficient funds held in escrow to fund all future debt service on these M&N Canada notes as of June 30, 2015 . At June 30, 2015 , the weighted-average contractual maturity of outstanding HTM securities was less than one year . There were no material gross unrecognized holding gains or losses associated with investments in HTM securities at June 30, 2015 or December 31, 2014 . Other Restricted Funds . In addition to the portions of the AFS and HTM securities that were restricted funds as described above, we had other restricted funds totaling $13 million at June 30, 2015 and $13 million at December 31, 2014 classified as Current Assets—Other. These restricted funds are related to additional amounts for insurance. We also had other restricted funds totaling $12 million at June 30, 2015 and $6 million at December 31, 2014 classified as Investments and Other Assets—Other. These restricted funds are related to funds held and collected from customers for Canadian pipeline abandonment in accordance with the NEB’s regulatory requirements. Changes in restricted balances are presented within Cash Flows from Investing Activities on our Condensed Consolidated Statements of Cash Flows. |
Debt and Credit Facilities
Debt and Credit Facilities | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Debt and Credit Facilities Available Credit Facilities and Restrictive Debt Covenants Expiration Date Total Credit Facilities Capacity Commercial Paper Outstanding at June 30, 2015 Available Credit Facilities Capacity (in millions) Spectra Energy Capital, LLC (a) 2019 $ 1,000 $ 497 $ 503 SEP (b) 2019 2,000 38 1,962 Westcoast Energy Inc. (c) 2019 320 — 320 Union Gas (d) 2019 400 — 400 Total $ 3,720 $ 535 $ 3,185 ___________ (a) Revolving credit facility contains a covenant requiring the Spectra Energy Corp consolidated debt-to-total capitalization ratio, as defined in the agreement, to not exceed 65% . Per the terms of the agreement, collateralized debt is excluded from the calculation of the ratio. This ratio was 58% at June 30, 2015 . (b) Revolving credit facility contains a covenant that requires SEP to maintain a ratio of total Consolidated Indebtedness-to-Consolidated EBITDA, as defined in the credit agreement, of 5.0 to 1 or less. As of June 30, 2015 , this ratio was 3.5 to 1. (c) U.S. dollar equivalent at June 30, 2015 . The revolving credit facility is 400 million Canadian dollars and contains a covenant that requires the Westcoast Energy Inc. non-consolidated debt-to-total capitalization ratio to not exceed 75% . The ratio was 33% at June 30, 2015 . (d) U.S. dollar equivalent at June 30, 2015 . The revolving credit facility is 500 million Canadian dollars and contains a covenant that requires the Union Gas debt-to-total capitalization ratio to not exceed 75% and a provision which requires Union Gas to repay all borrowings under the facility for a period of two days during the second quarter of each year. The ratio was 64% at June 30, 2015 . The issuances of commercial paper, letters of credit and revolving borrowings reduce the amount available under the credit facilities. As of June 30, 2015 , there were no letters of credit issued or revolving borrowings outstanding under the credit facilities. Our credit agreements contain various covenants, including the maintenance of certain financial ratios. Failure to meet those covenants beyond applicable grace periods could result in accelerated due dates and/or termination of the agreements. As of June 30, 2015 , we were in compliance with those covenants. In addition, our credit agreements allow for acceleration of payments or termination of the agreements due to nonpayment, or in some cases, due to the acceleration of other significant indebtedness of the borrower or some of its subsidiaries. Our debt and credit agreements do not contain provisions that trigger an acceleration of indebtedness based solely on the occurrence of a material adverse change in our financial condition or results of operations. Debt Issuances. On March 12, 2015, SEP issued $500 million of 3.50% unsecured notes due 2025 and $500 million of 4.50% unsecured notes due 2045 . Net proceeds from the offering were used to repay a portion of outstanding commercial paper, to fund capital expenditures and for general corporate purposes. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following presents, for each of the fair value hierarchy levels, assets and liabilities that are measured and recorded at fair value on a recurring basis: Description Condensed Consolidated Balance Sheet Caption June 30, 2015 Total Level 1 Level 2 Level 3 (in millions) Corporate debt securities Cash and cash equivalents $ 91 $ — $ 91 $ — Corporate debt securities Current assets—other 2 — 2 — Commodity derivatives Current assets—other 45 — — 45 Interest rate swaps Current assets—other 1 — 1 — Commodity derivatives Investments and other assets—other 5 — — 5 Corporate debt securities Investments and other assets—other 20 — 20 — Interest rate swaps Investments and other assets—other 26 — 26 — Total Assets $ 190 $ — $ 140 $ 50 Description Condensed Consolidated Balance Sheet Caption December 31, 2014 Total Level 1 Level 2 Level 3 (in millions) Corporate debt securities Cash and cash equivalents $ 85 $ — $ 85 $ — Corporate debt securities Current assets—other 3 — 3 — Commodity derivatives Current assets—other 57 — — 57 Interest rate swaps Current assets—other 2 — 2 — Commodity derivatives Investments and other assets—other 21 — — 21 Corporate debt securities Investments and other assets—other 20 — 20 — Interest rate swaps Investments and other assets—other 22 — 22 — Money market funds Investments and other assets—other 1 1 — — Total Assets $ 211 $ 1 $ 132 $ 78 The following presents changes in Level 3 assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs: Three Months Six Months 2015 2014 2015 2014 (in millions) Derivative assets (liabilities) Fair value, beginning of period $ 49 $ (5 ) $ 78 $ (3 ) Total gains (losses): Included in earnings 3 (5 ) 9 (9 ) Included in other comprehensive income 1 1 (5 ) 4 Purchases 2 — 3 — Settlements (5 ) — (35 ) (1 ) Fair value, end of period $ 50 $ (9 ) $ 50 $ (9 ) Unrealized gains (losses) relating to instruments held at the end of the period $ — $ (4 ) $ (16 ) $ (7 ) Level 1 Level 1 valuations represent quoted unadjusted prices for identical instruments in active markets. Level 2 Valuation Techniques Fair values of our financial instruments that are actively traded in the secondary market, including our long-term debt, are determined based on market-based prices. These valuations may include inputs such as quoted market prices of the exact or similar instruments, broker or dealer quotations, or alternative pricing sources that may include models or matrix pricing tools, with reasonable levels of price transparency. For interest rate swaps, we utilize data obtained from a third-party source for the determination of fair value. Both the future cash flows for the fixed-leg and floating-leg of our swaps are discounted to present value. In addition, credit default swap rates are used to develop the adjustment for credit risk embedded in our positions. We believe that since some of the inputs and assumptions for the calculations of fair value are derived from observable market data, a Level 2 classification is appropriate. Level 3 Valuation Techniques Level 3 valuation techniques include the use of pricing models, discounted cash flow methodologies or similar techniques where at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. The derivative financial instruments reported in Level 3 at June 30, 2015 consist of NGL revenue swap contracts related to the Empress assets in Western Canada Transmission & Processing. As of June 30, 2015 , we reported certain of our NGL basis swaps at fair value using Level 3 inputs due to such derivatives not having observable market prices for substantially the full term of the derivative asset or liability. For valuations that include both observable and unobservable inputs, if the unobservable input is determined to be significant to the overall inputs, the entire valuation is categorized in Level 3. This includes derivatives valued using indicative price quotations whose contract length extends into unobservable periods. The fair value of these NGL basis swaps is determined using a discounted cash flow valuation technique based on a forward commodity basis curve. For these derivatives, the primary input to the valuation model is the forward commodity basis curve, which is based on observable or public data sources and extrapolated when observable prices are not available. The significant unobservable inputs used in the fair value measurements of our Level 3 derivatives are the forward NGL basis curves, for which a significant portion of the derivative’s term is beyond available forward pricing. At June 30, 2015 , a 10¢ per gallon movement in underlying forward NGL prices, primarily propane prices, would affect the estimated fair value of our NGL derivatives by $18 million . This calculated amount does not take into account any other changes to the fair value measurement calculation. Financial Instruments The fair values of financial instruments that are recorded and carried at book value are summarized in the following table. Judgment is required in interpreting market data to develop the estimates of fair value. These estimates are not necessarily indicative of the amounts we could have realized in current markets. June 30, 2015 December 31, 2014 Book Value Approximate Fair Value Book Value Approximate Fair Value (in millions) Note receivable, noncurrent (a) $ 71 $ 71 $ 71 $ 71 Long-term debt, including current maturities (b) 13,673 14,683 13,060 14,446 __________ (a) Included within Investments in and Loans to Unconsolidated Affiliates. (b) Excludes capital leases, unamortized items and fair value hedge carrying value adjustments. The fair value of our long-term debt is determined based on market-based prices as described in the Level 2 valuation technique described above and is classified as Level 2. The fair values of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, note receivable-noncurrent, accounts payable and commercial paper are not materially different from their carrying amounts because of the short-term nature of these instruments or because the stated rates approximate market rates. During the six months ended June 30, 2015 and 2014 , there were no material adjustments to assets and liabilities measured at fair value on a nonrecurring basis. |
Risk Management and Hedging Act
Risk Management and Hedging Activities | 6 Months Ended |
Jun. 30, 2015 | |
Risk Management And Hedging Activities [Abstract] | |
Risk Management and Hedging Activities | Risk Management and Hedging Activities We are exposed to the impact of market fluctuations in the prices of NGLs and natural gas purchased as a result of our investment in DCP Midstream, the ownership of the NGL marketing operations in western Canada and processing operations associated with our U.S. pipeline assets. Exposure to interest rate risk exists as a result of the issuance of variable and fixed-rate debt and commercial paper. We are exposed to foreign currency risk from our Canadian operations. We employ established policies and procedures to manage our risks associated with these market fluctuations, which may include the use of derivatives, mostly around interest rate and commodity exposures. DCP Midstream manages their direct exposure to market prices separate from Spectra Energy, and utilizes various risk management strategies, including the use of commodity derivatives. Other than the interest rate swaps and commodity derivatives as described below, we did not have significant derivatives outstanding during the six months ended June 30, 2015 . Interest Rate Swaps At June 30, 2015 , we had “pay floating—receive fixed” interest rate swaps outstanding with a total notional amount of $2,100 million (to hedge against changes in the fair value of our fixed-rate debt) that arise as a result of changes in market interest rates. These swaps also allow us to transform a portion of the underlying interest payments related to our long-term fixed-rate debt securities into variable-rate interest payments in order to achieve our desired mix of fixed and variable-rate debt. Information about our interest rate swaps that had netting or rights of offset arrangements are as follows: June 30, 2015 December 31, 2014 Gross Amounts Presented in the Condensed Consolidated Balance Sheets Amounts Not Offset in the Condensed Consolidated Balance Sheets Net Amount Gross Amounts Presented in the Condensed Consolidated Balance Sheets Amounts Not Offset in the Condensed Consolidated Balance Sheets Net Amount Description (in millions) Assets $ 27 $ — $ 27 $ 24 $ — $ 24 Commodity Derivatives At June 30, 2015 , we had commodity mark-to-market derivatives outstanding with a total notional amount of 175 million gallons. The longest dated commodity derivative contract we currently have expires in 2018 . Information about our commodity derivatives that had netting or rights of offset arrangements are as follows: June 30, 2015 December 31, 2014 Gross Amounts Gross Amounts Offset Net Amount Presented in the Condensed Consolidated Balance Sheets Gross Amounts Gross Amounts Offset Net Amount Presented in the Condensed Consolidated Balance Sheets Description (in millions) Assets $ 144 $ 94 $ 50 $ 169 $ 91 $ 78 Liabilities 94 94 — 91 91 — Substantially all of our commodity derivative agreements outstanding at June 30, 2015 and December 31, 2014 have provisions that require collateral to be posted in the amount of the net liability position if one of our credit ratings falls below investment grade. Information regarding the impacts of commodity derivatives on our Condensed Consolidated Statements of Operations are as follows: Three Months Six Months Derivatives Condensed Consolidated Statements of Operations Caption 2015 2014 2015 2014 (in millions) Commodity derivatives Sales of natural gas liquids $ 5 $ (4 ) $ 12 $ (7 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental We are subject to various U.S. federal, state and local laws and regulations, as well as Canadian federal and provincial laws, regarding air and water quality, hazardous and solid waste disposal and other environmental matters. These laws and regulations can change from time to time, imposing new obligations on us. Like others in the energy industry, we and our affiliates are responsible for environmental remediation at various contaminated sites. These include some properties that are part of our ongoing operations, sites formerly owned or used by us, and sites owned by third parties. Remediation typically involves management of contaminated soils and may involve groundwater remediation. Managed in conjunction with relevant federal, state/provincial and local agencies, activities vary with site conditions and locations, remedial requirements, complexity and sharing of responsibility. If remediation activities involve statutory joint and several liability provisions, strict liability, or cost recovery or contribution actions, we or our affiliates could potentially be held responsible for contamination caused by other parties. In some instances, we may share liability associated with contamination with other potentially responsible parties, and may also benefit from contractual indemnities that cover some or all cleanup costs. All of these sites generally are managed in the normal course of business or affiliated operations. We believe there are no matters outstanding that upon resolution will have a material effect on our consolidated results of operations, financial position or cash flows. Litigation Litigation and Legal Proceedings. We are involved in legal, tax and regulatory proceedings in various forums arising in the ordinary course of business, including matters regarding contract and payment claims, some of which involve substantial monetary amounts. We have insurance coverage for certain of these losses should they be incurred. We believe that the final disposition of these proceedings will not have a material effect on our consolidated results of operations, financial position or cash flows. Legal costs related to the defense of loss contingencies are expensed as incurred. We had no material reserves for legal matters recorded as of June 30, 2015 or December 31, 2014 related to litigation. Other Commitments and Contingencies See Note 15 for a discussion of guarantees and indemnifications. |
Guarantees and Indemnifications
Guarantees and Indemnifications | 6 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Guarantees and Indemnifications | Guarantees and Indemnifications We have various financial guarantees and indemnifications which are issued in the normal course of business. As discussed below, these contracts include financial guarantees, stand-by letters of credit, debt guarantees, surety bonds and indemnifications. We enter into these arrangements to facilitate a commercial transaction with a third party by enhancing the value of the transaction to the third party. To varying degrees, these guarantees involve elements of performance and credit risk, which are not included on our Condensed Consolidated Balance Sheets. The possibility of having to perform under these guarantees and indemnifications is largely dependent upon future operations of various subsidiaries, investees and other third parties, or the occurrence of certain future events. We have issued performance guarantees to customers and other third parties that guarantee the payment and performance of other parties, including certain non-100%-owned entities. In connection with our spin-off from Duke Energy Corporation (Duke Energy) in 2007, certain guarantees that were previously issued by us were assigned to, or replaced by, Duke Energy as guarantor in 2006. For any remaining guarantees of other Duke Energy obligations, Duke Energy has indemnified us against any losses incurred under these guarantee arrangements. The maximum potential amount of future payments we could have been required to make under these performance guarantees as of June 30, 2015 was approximately $406 million , which has been indemnified by Duke Energy as discussed above. One of these outstanding performance guarantees, which has a maximum potential amount of future payment of $201 million , expires in 2028 . The remaining guarantees have no contractual expirations. We have also issued joint and several guarantees to some of the Duke/Fluor Daniel (D/FD) project owners, guaranteeing the performance of D/FD under its engineering, procurement and construction contracts and other contractual commitments in place at the time of our spin-off from Duke Energy. D/FD is one of the entities transferred to Duke Energy in connection with our spin-off. Substantially all of these guarantees have no contractual expiration and no stated maximum amount of future payments that we could be required to make. Fluor Enterprises Inc., as 50% owner in D/FD, issued similar joint and several guarantees to the same D/FD project owners. Westcoast Energy Inc. (Westcoast), a 100% -owned subsidiary, has issued performance guarantees to third parties guaranteeing the performance of unconsolidated entities, such as equity method investments, and of entities previously sold by Westcoast to third parties. Those guarantees require Westcoast to make payment to the guaranteed third party upon the failure of such unconsolidated or sold entity to make payment under some of its contractual obligations, such as debt agreements, purchase contracts and leases. Certain guarantees that were previously issued by Westcoast for obligations of entities that remained a part of Duke Energy are considered guarantees of third party performance; however, Duke Energy has indemnified us against any losses incurred under these guarantee arrangements. We have entered into various indemnification agreements related to purchase and sale agreements and other types of contractual agreements with vendors and other third parties. These agreements typically cover environmental, litigation and other matters, as well as breaches of representations, warranties and covenants. Typically, claims may be made by third parties for various periods of time, depending on the nature of the claim. Our potential exposure under these indemnification agreements can range from a specified amount, such as the purchase price, to an unlimited dollar amount, depending on the nature of the claim and the particular transaction. We are unable to estimate the total potential amount of future payments under these indemnification agreements due to several factors, such as the unlimited exposure under certain guarantees. As of June 30, 2015 , the amounts recorded for the guarantees and indemnifications described above are not material, both individually and in the aggregate. |
Issuances of SEP Units
Issuances of SEP Units | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Effects of Change in Noncontrolling Interest Ownership | Issuances of SEP Units During the six months ended June 30, 2015 , SEP issued 3.6 million common units to the public under its at-the-market program and approximately 74,000 general partner units to Spectra Energy. Total net proceeds to SEP were $184 million (net proceeds to Spectra Energy were $180 million ). In connection with the issuances of the units, a $40 million gain ( $25 million net of tax) to Additional Paid-in Capital and a $139 million increase in Equity-Noncontrolling Interests were recorded during the six months ended June 30, 2015 . The issuances decreased Spectra Energy's ownership in SEP from 82% to 81% at June 30, 2015 . The following table presents the effects of the issuances of SEP units: Three Months Six Months 2015 2014 2015 2014 (in millions) Net income-controlling interests $ 18 $ 146 $ 285 $ 565 Increase in additional paid-in capital resulting from issuances of SEP units 19 19 25 29 Total net income-controlling interests and changes in equity-controlling interests $ 37 $ 165 $ 310 $ 594 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Retirement Plans. We have a qualified non-contributory defined benefit (DB) retirement plan for U.S. employees and non-qualified, non-contributory, unfunded defined benefit plans which cover certain current and former U.S. executives. Our Westcoast subsidiary maintains qualified and non-qualified, contributory and non-contributory, DB and defined contribution (DC) retirement plans covering substantially all employees of our Canadian operations. Our policy is to fund our retirement plans, where applicable, on an actuarial basis to provide assets sufficient to meet benefits to be paid to plan participants or as required by legislation or plan terms. We made contributions of $11 million to our U.S. retirement plans in the six months ended June 30, 2015 and $10 million in the same period in 2014 . We made total contributions to the Canadian DC and DB plans of $16 million in the six months ended June 30, 2015 and $26 million in the same period in 2014 . We anticipate that we will make total contributions of approximately $22 million to the U.S. plans and approximately $31 million to the Canadian plans in 2015 . Qualified and Non-Qualified Pension Plans—Components of Net Periodic Pension Cost Three Months Six Months 2015 2014 2015 2014 (in millions) U.S. Service cost benefit earned $ 5 $ 4 $ 10 $ 9 Interest cost on projected benefit obligation 6 6 12 12 Expected return on plan assets (11 ) (9 ) (21 ) (19 ) Amortization of loss 3 3 5 6 Net periodic pension cost $ 3 $ 4 $ 6 $ 8 Canada Service cost benefit earned $ 8 $ 8 $ 16 $ 15 Interest cost on projected benefit obligation 11 13 22 26 Expected return on plan assets (17 ) (18 ) (34 ) (35 ) Amortization of loss 6 5 13 11 Amortization of prior service cost 1 1 1 1 Net periodic pension cost $ 9 $ 9 $ 18 $ 18 Other Post-Retirement Benefit Plans. We provide certain health care and life insurance benefits for retired employees on a contributory and non-contributory basis. Employees are eligible for these benefits if they have met age and service requirements at retirement, as defined in the plans. Other Post-Retirement Benefit Plans—Components of Net Periodic Benefit Cost Three Months Six Months 2015 2014 2015 2014 (in millions) U.S. Interest cost on accumulated post-retirement benefit obligation $ 2 $ 2 $ 4 $ 4 Expected return on plan assets (2 ) (1 ) (3 ) (2 ) Net periodic other post-retirement benefit cost $ — $ 1 $ 1 $ 2 Canada Service cost benefit earned $ 1 $ 1 $ 2 $ 2 Interest cost on accumulated post-retirement benefit obligation 1 2 2 3 Net periodic other post-retirement benefit cost $ 2 $ 3 $ 4 $ 5 Retirement/Savings Plan In addition to the retirement plans described above, we also have defined contribution employee savings plans available to both U.S. and Canadian employees. Employees may participate in a matching contribution where we match a certain percentage of before-tax employee contributions of up to 6% of eligible pay per pay period for U.S. employees and up to 5% of eligible pay per pay period for Canadian employees. We expensed pre-tax employer matching contributions of $4 million in both of the three months ended June 30, 2015 and 2014 , and $7 million in both of the six months ended June 30, 2015 and 2014 for U.S. employees. We expensed pre-tax employer matching contributions of $2 million and $3 million in the three months ended June 30, 2015 and 2014 , respectively, and $ 5 million and $6 million in the six months ended June 30, 2015 and 2014 , respectively, for Canadian employees. |
Consolidating Financial Informa
Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Consolidating Financial Information | Condensed Consolidating Financial Information Spectra Energy Corp has agreed to fully and unconditionally guarantee the payment of principal and interest under all series of notes outstanding under the Senior Indenture of Spectra Energy Capital, LLC (Spectra Capital), a 100%-owned, consolidated subsidiary. In accordance with Securities and Exchange Commission (SEC) rules, the following condensed consolidating financial information is presented. The information shown for Spectra Energy Corp and Spectra Capital is presented utilizing the equity method of accounting for investments in subsidiaries, as required. The non-guarantor subsidiaries column represents all consolidated subsidiaries of Spectra Capital. This information should be read in conjunction with our accompanying Condensed Consolidated Financial Statements and notes thereto. Spectra Energy Corp Condensed Consolidating Statements of Operations (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated Three Months Ended June 30, 2015 Total operating revenues $ — $ — $ 1,192 $ — $ 1,192 Total operating expenses 1 (1 ) 786 — 786 Operating income (loss) (1 ) 1 406 — 406 Loss from equity investments — — (189 ) — (189 ) Equity in earnings of consolidated subsidiaries 12 62 — (74 ) — Other income and expenses, net 2 — 20 — 22 Interest expense — 61 105 — 166 Earnings before income taxes 13 2 132 (74 ) 73 Income tax expense (benefit) (5 ) (10 ) 8 — (7 ) Net income 18 12 124 (74 ) 80 Net income—noncontrolling interests — — 62 — 62 Net income—controlling interests $ 18 $ 12 $ 62 $ (74 ) $ 18 Three Months Ended June 30, 2014 Total operating revenues $ — $ — $ 1,253 $ — $ 1,253 Total operating expenses — 1 914 — 915 Operating income (loss) — (1 ) 339 — 338 Earnings from equity investments — — 85 — 85 Equity in earnings of consolidated subsidiaries 125 264 — (389 ) — Other income and expenses, net (1 ) — 7 — 6 Interest expense — 66 110 — 176 Earnings before income taxes 124 197 321 (389 ) 253 Income tax expense (benefit) (22 ) 72 15 — 65 Net income 146 125 306 (389 ) 188 Net income—noncontrolling interests — — 42 — 42 Net income—controlling interests $ 146 $ 125 $ 264 $ (389 ) $ 146 Spectra Energy Corp Condensed Consolidating Statements of Operations (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated Six Months Ended June 30, 2015 Total operating revenues $ — $ — $ 2,816 $ (1 ) $ 2,815 Total operating expenses 3 (1 ) 1,867 (1 ) 1,868 Operating income (loss) (3 ) 1 949 — 947 Loss from equity investments — — (165 ) — (165 ) Equity in earnings of consolidated subsidiaries 275 483 — (758 ) — Other income and expenses, net — — 42 — 42 Interest expense — 122 203 — 325 Earnings before income taxes 272 362 623 (758 ) 499 Income tax expense (benefit) (13 ) 87 20 — 94 Net income 285 275 603 (758 ) 405 Net income—noncontrolling interests — — 120 — 120 Net income—controlling interests $ 285 $ 275 $ 483 $ (758 ) $ 285 Six Months Ended June 30, 2014 Total operating revenues $ — $ — $ 3,097 $ (1 ) $ 3,096 Total operating expenses 4 1 2,115 (1 ) 2,119 Operating income (loss) (4 ) (1 ) 982 — 977 Earnings from equity investments — — 246 — 246 Equity in earnings of consolidated subsidiaries 540 899 — (1,439 ) — Other income and expenses, net (2 ) 1 16 — 15 Interest expense — 131 223 — 354 Earnings before income taxes 534 768 1,021 (1,439 ) 884 Income tax expense (benefit) (31 ) 228 32 — 229 Net income 565 540 989 (1,439 ) 655 Net income—noncontrolling interests — — 90 — 90 Net income—controlling interests $ 565 $ 540 $ 899 $ (1,439 ) $ 565 Spectra Energy Corp Condensed Consolidating Statements of Comprehensive Income (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated Three Months Ended June 30, 2015 Net income $ 18 $ 12 $ 124 $ (74 ) $ 80 Other comprehensive income 2 — 91 — 93 Total comprehensive income, net of tax 20 12 215 (74 ) 173 Less: comprehensive income—noncontrolling interests — — 64 — 64 Comprehensive income—controlling interests $ 20 $ 12 $ 151 $ (74 ) $ 109 Three Months Ended June 30, 2014 Net income $ 146 $ 125 $ 306 $ (389 ) $ 188 Other comprehensive income 2 — 229 — 231 Total comprehensive income, net of tax 148 125 535 (389 ) 419 Less: comprehensive income—noncontrolling interests — — 45 — 45 Comprehensive income—controlling interests $ 148 $ 125 $ 490 $ (389 ) $ 374 Six Months Ended June 30, 2015 Net income $ 285 $ 275 $ 603 $ (758 ) $ 405 Other comprehensive income (loss) 3 — (395 ) — (392 ) Total comprehensive income, net of tax 288 275 208 (758 ) 13 Less: comprehensive income—noncontrolling interests — — 114 — 114 Comprehensive income (loss)—controlling interests $ 288 $ 275 $ 94 $ (758 ) $ (101 ) Six Months Ended June 30, 2014 Net income $ 565 $ 540 $ 989 $ (1,439 ) $ 655 Other comprehensive income (loss) 4 — (10 ) — (6 ) Total comprehensive income, net of tax 569 540 979 (1,439 ) 649 Less: comprehensive income—noncontrolling interests — — 89 — 89 Comprehensive income—controlling interests $ 569 $ 540 $ 890 $ (1,439 ) $ 560 Spectra Energy Corp Condensed Consolidating Balance Sheet June 30, 2015 (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated Cash and cash equivalents $ — $ 2 $ 285 $ — $ 287 Receivables—consolidated subsidiaries 10 — 18 (28 ) — Notes receivable—current—consolidated subsidiaries — — 388 (388 ) — Receivables—other 2 — 878 — 880 Other current assets 8 1 561 — 570 Total current assets 20 3 2,130 (416 ) 1,737 Investments in and loans to unconsolidated affiliates — — 2,701 — 2,701 Investments in consolidated subsidiaries 14,515 20,198 — (34,713 ) — Advances receivable—consolidated subsidiaries — 5,212 901 (6,113 ) — Notes receivable—consolidated subsidiaries — — 2,800 (2,800 ) — Goodwill — — 4,615 — 4,615 Other assets 41 23 243 — 307 Net property, plant and equipment — — 22,281 — 22,281 Regulatory assets and deferred debits 2 14 1,387 — 1,403 Total Assets $ 14,578 $ 25,450 $ 37,058 $ (44,042 ) $ 33,044 Accounts payable $ 3 $ 4 $ 550 $ — $ 557 Accounts payable—consolidated subsidiaries — 23 5 (28 ) — Commercial paper — 497 38 — 535 Short-term borrowings—consolidated subsidiaries — 388 — (388 ) — Taxes accrued 5 18 85 — 108 Current maturities of long-term debt — — 917 — 917 Other current liabilities 69 53 898 — 1,020 Total current liabilities 77 983 2,493 (416 ) 3,137 Long-term debt — 2,900 9,883 — 12,783 Advances payable—consolidated subsidiaries 6,113 — — (6,113 ) — Notes payable—consolidated subsidiaries — 2,800 — (2,800 ) — Deferred credits and other liabilities 792 4,252 1,743 — 6,787 Preferred stock of subsidiaries — — 258 — 258 Equity Controlling interests 7,596 14,515 20,198 (34,713 ) 7,596 Noncontrolling interests — — 2,483 — 2,483 Total equity 7,596 14,515 22,681 (34,713 ) 10,079 Total Liabilities and Equity $ 14,578 $ 25,450 $ 37,058 $ (44,042 ) $ 33,044 Spectra Energy Corp Condensed Consolidating Balance Sheet December 31, 2014 (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated Cash and cash equivalents $ — $ 1 $ 214 $ — $ 215 Receivables—consolidated subsidiaries 18 — 11 (29 ) — Notes receivable—current—consolidated subsidiaries — — 398 (398 ) — Receivables—other 2 — 1,334 — 1,336 Other current assets 71 2 708 — 781 Total current assets 91 3 2,665 (427 ) 2,332 Investments in and loans to unconsolidated affiliates — — 2,966 — 2,966 Investments in consolidated subsidiaries 14,531 20,562 — (35,093 ) — Advances receivable—consolidated subsidiaries — 4,683 898 (5,581 ) — Notes receivable—consolidated subsidiaries — — 2,800 (2,800 ) — Goodwill — — 4,714 — 4,714 Other assets 38 22 267 — 327 Net property, plant and equipment — — 22,307 — 22,307 Regulatory assets and deferred debits 4 15 1,375 — 1,394 Total Assets $ 14,664 $ 25,285 $ 37,992 $ (43,901 ) $ 34,040 Accounts payable $ 3 $ — $ 455 $ — $ 458 Accounts payable—consolidated subsidiaries — 17 12 (29 ) — Commercial paper — 398 1,185 — 1,583 Short-term borrowings—consolidated subsidiaries — 398 — (398 ) — Taxes accrued 5 — 86 — 91 Current maturities of long-term debt — — 327 — 327 Other current liabilities 96 54 1,200 — 1,350 Total current liabilities 104 867 3,265 (427 ) 3,809 Long-term debt — 2,900 9,869 — 12,769 Advances payable—consolidated subsidiaries 5,581 — — (5,581 ) — Notes payable—consolidated subsidiaries — 2,800 — (2,800 ) — Deferred credits and other liabilities 819 4,187 1,800 — 6,806 Preferred stock of subsidiaries — — 258 — 258 Equity Controlling interests 8,160 14,531 20,562 (35,093 ) 8,160 Noncontrolling interests — — 2,238 — 2,238 Total equity 8,160 14,531 22,800 (35,093 ) 10,398 Total Liabilities and Equity $ 14,664 $ 25,285 $ 37,992 $ (43,901 ) $ 34,040 Spectra Energy Corp Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2015 (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 285 $ 275 $ 603 $ (758 ) $ 405 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization — — 393 — 393 Loss from equity investments — — 165 — 165 Equity in earnings of consolidated subsidiaries (275 ) (483 ) — 758 — Distributions received from unconsolidated affiliates — — 93 — 93 Other 30 68 302 — 400 Net cash provided by (used in) operating activities 40 (140 ) 1,556 — 1,456 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures — — (989 ) — (989 ) Investments in and loans to unconsolidated affiliates — — (34 ) — (34 ) Purchases of held-to-maturity securities — — (329 ) — (329 ) Proceeds from sales and maturities of held-to-maturity securities — — 344 — 344 Proceeds from sales and maturities of available-for-sale securities — — 1 — 1 Distributions received from unconsolidated affiliates — — 35 — 35 Advances (to) from affiliates (72 ) 46 — 26 — Other changes in restricted funds — — (6 ) — (6 ) Other — 2 2 Net cash provided by (used in) investing activities (72 ) 46 (976 ) 26 (976 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the issuance of long-term debt — — 994 — 994 Payments for the redemption of long-term debt — — (39 ) — (39 ) Net increase (decrease) in commercial paper — 99 (1,129 ) — (1,030 ) Distributions to noncontrolling interests — — (93 ) — (93 ) Contributions from noncontrolling interests — — 90 — 90 Proceeds from the issuance of SEP common units — — 180 — 180 Dividends paid on common stock (499 ) — — — (499 ) Distributions and advances from (to) affiliates 532 (4 ) (502 ) (26 ) — Other (1 ) — (8 ) — (9 ) Net cash provided by (used in) financing activities 32 95 (507 ) (26 ) (406 ) Effect of exchange rate changes on cash — — (2 ) — (2 ) Net increase in cash and cash equivalents — 1 71 — 72 Cash and cash equivalents at beginning of period — 1 214 — 215 Cash and cash equivalents at end of period $ — $ 2 $ 285 $ — $ 287 Spectra Energy Corp Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2014 (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 565 $ 540 $ 989 $ (1,439 ) $ 655 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization — — 405 — 405 Earnings from equity investments — — (246 ) — (246 ) Equity in earnings of consolidated subsidiaries (540 ) (899 ) — 1,439 — Distributions received from unconsolidated affiliates — — 199 — 199 Other (36 ) 229 3 — 196 Net cash provided by (used in) operating activities (11 ) (130 ) 1,350 — 1,209 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures — — (833 ) — (833 ) Investments in and loans to unconsolidated — — (30 ) — (30 ) Purchases of held-to-maturity securities — — (437 ) — (437 ) Proceeds from sales and maturities of held-to-maturity securities — — 453 — 453 Purchases of available-for-sale securities — — (13 ) — (13 ) Proceeds from sales and maturities of available-for-sale securities — — 7 — 7 Distributions received from unconsolidated — — 242 — 242 Advances from affiliates 85 91 — (176 ) — Other changes in restricted funds — — (1 ) — (1 ) Net cash provided by (used in) investing activities 85 91 (612 ) (176 ) (612 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the issuance of long-term debt — 300 412 — 712 Payments for the redemption of long-term debt — (148 ) (588 ) — (736 ) Net decrease in commercial paper — (124 ) (132 ) — (256 ) Distributions to noncontrolling interests — — (81 ) — (81 ) Contributions from noncontrolling interests — — 112 — 112 Proceeds from the issuance of SEP common units — — 191 — 191 Dividends paid on common stock (453 ) — — — (453 ) Distributions and advances from (to) affiliates 366 1 (543 ) 176 — Other 13 — (1 ) — 12 Net cash provided by (used in) financing activities (74 ) 29 (630 ) 176 (499 ) Effect of exchange rate changes on cash — — 1 — 1 Net increase (decrease) in cash and cash equivalents — (10 ) 109 — 99 Cash and cash equivalents at beginning of period — 12 189 — 201 Cash and cash equivalents at end of period $ — $ 2 $ 298 $ — $ 300 |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606), ” which supersedes the revenue recognition requirements of “ Revenue Recognition (Topic 605) ” and clarifies the principles of recognizing revenue. In July 2015, the FASB decided to defer the effective date of the new revenue standard for one year and to permit entities to early adopt the standard as of the original effective date. This ASU is effective for us January 1, 2018. We are currently evaluating this ASU and its potential impact on us. In February 2015, the FASB issued ASU No. 2015-02, “ Consolidation (Topic 810): Amendments to the Consolidation Analysis, ” which makes changes to both the variable interest model and the voting model. These changes will require re-evaluation of certain entities for consolidation and will require us to revise our documentation regarding the consolidation or deconsolidation of such entities. ASU No. 2015-02 is effective for us January 1, 2016. We are currently evaluating this ASU and its potential impact on us. In April 2015, the FASB issued ASU No. 2015-03, “ Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, ” which requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, rather than as a deferred charge asset. ASU No. 2015-03 is effective for us January 1, 2016 and is to be applied retrospectively. Early application is permitted. This ASU is not expected to have a material impact on our consolidated results of operations, financial position or cash flow. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates. To conform with generally accepted accounting principles (GAAP) in the United States, we make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements. Although these estimates are based on our best available knowledge at the time, actual results could differ. |
Earnings Per Share | Basic earnings per common share (EPS) is computed by dividing net income from controlling interests by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income from controlling interests by the diluted weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as stock options, stock-based performance unit awards and phantom stock awards, were exercised, settled or converted into common stock. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | We perform our goodwill impairment test annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. We completed our annual goodwill impairment test as of April 1, 2015 and no impairments were identified. We perform our annual review for goodwill impairment at the reporting unit level, which is identified by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available, whether segment management regularly reviews the operating results of those components and whether the economic and regulatory characteristics are similar. We determined that our reporting units are equivalent to our reportable segments, except for the reporting units of our Western Canada Transmission & Processing and Spectra Energy Partners reportable segments, which are one level below. As permitted under accounting guidance on testing goodwill for impairment, we perform either a qualitative assessment or a quantitative assessment of each of our reporting units based on management’s judgment. With respect to our qualitative assessments, we consider events and circumstances specific to us, such as macroeconomic conditions, industry and market considerations, cost factors and overall financial performance, when evaluating whether it is more likely than not that the fair values of our reporting units are less than their respective carrying amounts. Our Empress NGL and BC Field Services businesses, reporting units within Western Canada Transmission & Processing, are affected by commodity prices. We performed our Empress NGL and BC Field Services reporting units’ impairment tests using updated assumptions and financial data and concluded that there was no impairment of goodwill for either business unit. See Note 8 for discussion related to the impairment of goodwill recognized by DCP Midstream. |
Inventory, Policy | Inventory consists of natural gas and NGLs held in storage for transmission and processing, and also includes materials and supplies. Natural gas inventories primarily relate to the Distribution segment in Canada and are valued at costs approved by the OEB. The difference between the approved price and the actual cost of gas purchased is recorded as either a receivable or a current liability, as appropriate, for future disposition with customers, subject to approval by the OEB. The remaining inventory is recorded at the lower of cost or market, primarily using average cost. |
Fair Value Measurement | Level 1 Level 1 valuations represent quoted unadjusted prices for identical instruments in active markets. Level 2 Valuation Techniques Fair values of our financial instruments that are actively traded in the secondary market, including our long-term debt, are determined based on market-based prices. These valuations may include inputs such as quoted market prices of the exact or similar instruments, broker or dealer quotations, or alternative pricing sources that may include models or matrix pricing tools, with reasonable levels of price transparency. For interest rate swaps, we utilize data obtained from a third-party source for the determination of fair value. Both the future cash flows for the fixed-leg and floating-leg of our swaps are discounted to present value. In addition, credit default swap rates are used to develop the adjustment for credit risk embedded in our positions. We believe that since some of the inputs and assumptions for the calculations of fair value are derived from observable market data, a Level 2 classification is appropriate. Level 3 Valuation Techniques Level 3 valuation techniques include the use of pricing models, discounted cash flow methodologies or similar techniques where at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. The derivative financial instruments reported in Level 3 at June 30, 2015 consist of NGL revenue swap contracts related to the Empress assets in Western Canada Transmission & Processing. As of June 30, 2015 , we reported certain of our NGL basis swaps at fair value using Level 3 inputs due to such derivatives not having observable market prices for substantially the full term of the derivative asset or liability. For valuations that include both observable and unobservable inputs, if the unobservable input is determined to be significant to the overall inputs, the entire valuation is categorized in Level 3. This includes derivatives valued using indicative price quotations whose contract length extends into unobservable periods. The fair value of these NGL basis swaps is determined using a discounted cash flow valuation technique based on a forward commodity basis curve. For these derivatives, the primary input to the valuation model is the forward commodity basis curve, which is based on observable or public data sources and extrapolated when observable prices are not available. The significant unobservable inputs used in the fair value measurements of our Level 3 derivatives are the forward NGL basis curves, for which a significant portion of the derivative’s term is beyond available forward pricing. At June 30, 2015 , a 10¢ per gallon movement in underlying forward NGL prices, primarily propane prices, would affect the estimated fair value of our NGL derivatives by $18 million . This calculated amount does not take into account any other changes to the fair value measurement calculation. |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Data - Condensed Consolidated Statements of Operations | Business Segment Data Condensed Consolidated Statements of Operations Unaffiliated Revenues Intersegment Revenues Total Operating Revenues Depreciation and Amortization Segment EBITDA/ Consolidated Earnings before Income Taxes (in millions) Three Months Ended June 30, 2015 Spectra Energy Partners $ 603 $ — $ 603 $ 72 $ 478 Distribution 290 — 290 45 98 Western Canada Transmission & Processing 297 7 304 63 104 Field Services — — — — (233 ) Total reportable segments 1,190 7 1,197 180 447 Other 2 15 17 13 (12 ) Eliminations — (22 ) (22 ) — — Depreciation and amortization — — — — 193 Interest expense — — — — 166 Interest income and other (a) — — — — (3 ) Total consolidated $ 1,192 $ — $ 1,192 $ 193 $ 73 Three Months Ended June 30, 2014 Spectra Energy Partners $ 531 $ — $ 531 $ 72 $ 374 Distribution 360 — 360 48 112 Western Canada Transmission & Processing 360 31 391 68 111 Field Services — — — — 54 Total reportable segments 1,251 31 1,282 188 651 Other 2 17 19 11 (24 ) Eliminations — (48 ) (48 ) — — Depreciation and amortization — — — — 199 Interest expense — — — — 176 Interest income and other (a) — — — — 1 Total consolidated $ 1,253 $ — $ 1,253 $ 199 $ 253 Six Months Ended June 30, 2015 Spectra Energy Partners $ 1,209 $ — $ 1,209 $ 146 $ 933 Distribution 952 — 952 90 290 Western Canada Transmission & Processing 650 24 674 125 265 Field Services — — — — (250 ) Total reportable segments 2,811 24 2,835 361 1,238 Other 4 31 35 25 (27 ) Eliminations — (55 ) (55 ) — — Depreciation and amortization — — — — 386 Interest expense — — — — 325 Interest income and other (a) — — — — (1 ) Total consolidated $ 2,815 $ — $ 2,815 $ 386 $ 499 Six Months Ended June 30, 2014 Spectra Energy Partners $ 1,112 $ — $ 1,112 $ 145 $ 803 Distribution 1,078 — 1,078 97 338 Western Canada Transmission & Processing 901 65 966 135 348 Field Services — — — — 184 Total reportable segments 3,091 65 3,156 377 1,673 Other 5 32 37 22 (41 ) Eliminations — (97 ) (97 ) — — Depreciation and amortization — — — — 399 Interest expense — — — — 354 Interest income and other (a) — — — — 5 Total consolidated $ 3,096 $ — $ 3,096 $ 399 $ 884 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted EPS Calculations | The following table presents our basic and diluted EPS calculations: Three Months Six Months 2015 2014 2015 2014 (in millions, except per-share amounts) Net income—controlling interests $ 18 $ 146 $ 285 $ 565 Weighted-average common shares outstanding Basic 671 671 671 671 Diluted 672 673 672 672 Basic and diluted earnings per common share (a) $ 0.03 $ 0.22 $ 0.42 $ 0.84 ___________________ (a) Quarterly earnings-per-share amounts are stand-alone calculations and may not be additive to full-year amounts due to rounding. |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table presents the net of tax changes in Accumulated Other Comprehensive Income (AOCI) by component and amounts reclassified out of AOCI to Net Income, excluding amounts attributable to noncontrolling interests: Foreign Currency Translation Adjustments Pension and Post-retirement Benefit Plan Obligations Gas Purchase Contract Hedges Other Total Accumulated Other Comprehensive Income (in millions) March 31, 2015 $ 532 $ (345 ) $ — $ (2 ) $ 185 Other AOCI activity 85 7 — (1 ) 91 June 30, 2015 $ 617 $ (338 ) $ — $ (3 ) $ 276 March 31, 2014 $ 1,313 $ (297 ) $ (7 ) $ (1 ) $ 1,008 Reclassified to net income — — — 1 1 Other AOCI activity 220 6 1 — 227 June 30, 2014 $ 1,533 $ (291 ) $ (6 ) $ — $ 1,236 December 31, 2014 $ 1,016 $ (351 ) $ (3 ) $ — $ 662 Other AOCI activity (399 ) 13 3 (3 ) (386 ) June 30, 2015 $ 617 $ (338 ) $ — $ (3 ) $ 276 December 31, 2013 $ 1,557 $ (304 ) $ (11 ) $ (1 ) $ 1,241 Reclassified to net income — — 2 1 3 Other AOCI activity (24 ) 13 3 — (8 ) June 30, 2014 $ 1,533 $ (291 ) $ (6 ) $ — $ 1,236 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventory are as follows: June 30, December 31, (in millions) Natural gas $ 134 $ 211 NGLs 42 28 Materials and supplies 72 74 Total inventory $ 248 $ 313 |
Investments in and Loans to U33
Investments in and Loans to Unconsolidated Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Statements of Operations of Unconsolidated Affiliates Presented at 100 Percent | The following represents summary financial information for DCP Midstream, presented at 100%: Three Months Six Months 2015 2014 2015 2014 (in millions) Operating revenues $ 1,869 $ 3,541 $ 3,912 $ 7,456 Operating expenses 2,332 3,387 4,323 7,032 Operating income (loss) (463 ) 154 (411 ) 424 Net income (loss) (491 ) 92 (497 ) 295 Net income (loss) attributable to members’ interests (466 ) 89 (503 ) 254 |
Marketable Securities and Res34
Marketable Securities and Restricted Funds (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Estimated Fair Values of Available for Sale Securities | AFS Securities. AFS securities are as follows: Estimated Fair Value June 30, December 31, 2014 (in millions) Corporate debt securities $ 22 $ 23 Money market funds — 1 Total available-for-sale securities $ 22 $ 24 |
Restricted and Nonrestricted AFS Securities by Balance Sheet Classification | Our AFS securities are classified on the Condensed Consolidated Balance Sheets as follows: Estimated Fair Value June 30, December 31, 2014 (in millions) Restricted funds Investments and other assets—other $ — $ 1 Non-restricted funds Current assets—other 2 3 Investments and other assets—other 20 20 Total available-for-sale securities $ 22 $ 24 The fair values of financial instruments that are recorded and carried at book value are summarized in the following table. Judgment is required in interpreting market data to develop the estimates of fair value. These estimates are not necessarily indicative of the amounts we could have realized in current markets. June 30, 2015 December 31, 2014 Book Value Approximate Fair Value Book Value Approximate Fair Value (in millions) Note receivable, noncurrent (a) $ 71 $ 71 $ 71 $ 71 Long-term debt, including current maturities (b) 13,673 14,683 13,060 14,446 __________ (a) Included within Investments in and Loans to Unconsolidated Affiliates. (b) Excludes capital leases, unamortized items and fair value hedge carrying value adjustments. |
Estimated Fair Values of Held to Maturity Marketable Securities | HTM Securities. All of our HTM securities are restricted funds and are as follows: Estimated Fair Value Description Condensed Consolidated Balance Sheets Caption June 30, 2015 December 31, 2014 (in millions) Banker’s acceptances Current assets—other $ 34 $ 38 Canadian government securities Current assets—other 27 30 Money market funds Current assets—other 3 3 Canadian government securities Investments and other assets—other 81 101 Total held-to-maturity securities $ 145 $ 172 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Available Credit Facilities and Restrictive Debt Covenants | Available Credit Facilities and Restrictive Debt Covenants Expiration Date Total Credit Facilities Capacity Commercial Paper Outstanding at June 30, 2015 Available Credit Facilities Capacity (in millions) Spectra Energy Capital, LLC (a) 2019 $ 1,000 $ 497 $ 503 SEP (b) 2019 2,000 38 1,962 Westcoast Energy Inc. (c) 2019 320 — 320 Union Gas (d) 2019 400 — 400 Total $ 3,720 $ 535 $ 3,185 ___________ (a) Revolving credit facility contains a covenant requiring the Spectra Energy Corp consolidated debt-to-total capitalization ratio, as defined in the agreement, to not exceed 65% . Per the terms of the agreement, collateralized debt is excluded from the calculation of the ratio. This ratio was 58% at June 30, 2015 . (b) Revolving credit facility contains a covenant that requires SEP to maintain a ratio of total Consolidated Indebtedness-to-Consolidated EBITDA, as defined in the credit agreement, of 5.0 to 1 or less. As of June 30, 2015 , this ratio was 3.5 to 1. (c) U.S. dollar equivalent at June 30, 2015 . The revolving credit facility is 400 million Canadian dollars and contains a covenant that requires the Westcoast Energy Inc. non-consolidated debt-to-total capitalization ratio to not exceed 75% . The ratio was 33% at June 30, 2015 . (d) U.S. dollar equivalent at June 30, 2015 . The revolving credit facility is 500 million Canadian dollars and contains a covenant that requires the Union Gas debt-to-total capitalization ratio to not exceed 75% and a provision which requires Union Gas to repay all borrowings under the facility for a period of two days during the second quarter of each year. The ratio was 64% at June 30, 2015 . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Changes in Level 3 Assets and Liabilities that are Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs | The following presents changes in Level 3 assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs: Three Months Six Months 2015 2014 2015 2014 (in millions) Derivative assets (liabilities) Fair value, beginning of period $ 49 $ (5 ) $ 78 $ (3 ) Total gains (losses): Included in earnings 3 (5 ) 9 (9 ) Included in other comprehensive income 1 1 (5 ) 4 Purchases 2 — 3 — Settlements (5 ) — (35 ) (1 ) Fair value, end of period $ 50 $ (9 ) $ 50 $ (9 ) Unrealized gains (losses) relating to instruments held at the end of the period $ — $ (4 ) $ (16 ) $ (7 ) |
Assets and Liabilities Measured at Fair Value on Recurring Basis with Fair Value Hierarchy Levels | The following presents, for each of the fair value hierarchy levels, assets and liabilities that are measured and recorded at fair value on a recurring basis: Description Condensed Consolidated Balance Sheet Caption June 30, 2015 Total Level 1 Level 2 Level 3 (in millions) Corporate debt securities Cash and cash equivalents $ 91 $ — $ 91 $ — Corporate debt securities Current assets—other 2 — 2 — Commodity derivatives Current assets—other 45 — — 45 Interest rate swaps Current assets—other 1 — 1 — Commodity derivatives Investments and other assets—other 5 — — 5 Corporate debt securities Investments and other assets—other 20 — 20 — Interest rate swaps Investments and other assets—other 26 — 26 — Total Assets $ 190 $ — $ 140 $ 50 Description Condensed Consolidated Balance Sheet Caption December 31, 2014 Total Level 1 Level 2 Level 3 (in millions) Corporate debt securities Cash and cash equivalents $ 85 $ — $ 85 $ — Corporate debt securities Current assets—other 3 — 3 — Commodity derivatives Current assets—other 57 — — 57 Interest rate swaps Current assets—other 2 — 2 — Commodity derivatives Investments and other assets—other 21 — — 21 Corporate debt securities Investments and other assets—other 20 — 20 — Interest rate swaps Investments and other assets—other 22 — 22 — Money market funds Investments and other assets—other 1 1 — — Total Assets $ 211 $ 1 $ 132 $ 78 |
Fair Value of Financial Instruments Recorded and Carried at Book Value | Our AFS securities are classified on the Condensed Consolidated Balance Sheets as follows: Estimated Fair Value June 30, December 31, 2014 (in millions) Restricted funds Investments and other assets—other $ — $ 1 Non-restricted funds Current assets—other 2 3 Investments and other assets—other 20 20 Total available-for-sale securities $ 22 $ 24 The fair values of financial instruments that are recorded and carried at book value are summarized in the following table. Judgment is required in interpreting market data to develop the estimates of fair value. These estimates are not necessarily indicative of the amounts we could have realized in current markets. June 30, 2015 December 31, 2014 Book Value Approximate Fair Value Book Value Approximate Fair Value (in millions) Note receivable, noncurrent (a) $ 71 $ 71 $ 71 $ 71 Long-term debt, including current maturities (b) 13,673 14,683 13,060 14,446 __________ (a) Included within Investments in and Loans to Unconsolidated Affiliates. (b) Excludes capital leases, unamortized items and fair value hedge carrying value adjustments. |
Risk Management and Hedging A37
Risk Management and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Risk Management And Hedging Activities [Abstract] | |
Derivative Assets And Liabilities Offsetting | Information about our interest rate swaps that had netting or rights of offset arrangements are as follows: June 30, 2015 December 31, 2014 Gross Amounts Presented in the Condensed Consolidated Balance Sheets Amounts Not Offset in the Condensed Consolidated Balance Sheets Net Amount Gross Amounts Presented in the Condensed Consolidated Balance Sheets Amounts Not Offset in the Condensed Consolidated Balance Sheets Net Amount Description (in millions) Assets $ 27 $ — $ 27 $ 24 $ — $ 24 |
Commodity Derivative Assets and Liabilities Offsetting | Information about our commodity derivatives that had netting or rights of offset arrangements are as follows: June 30, 2015 December 31, 2014 Gross Amounts Gross Amounts Offset Net Amount Presented in the Condensed Consolidated Balance Sheets Gross Amounts Gross Amounts Offset Net Amount Presented in the Condensed Consolidated Balance Sheets Description (in millions) Assets $ 144 $ 94 $ 50 $ 169 $ 91 $ 78 Liabilities 94 94 — 91 91 — |
Commodity derivative impact | Information regarding the impacts of commodity derivatives on our Condensed Consolidated Statements of Operations are as follows: Three Months Six Months Derivatives Condensed Consolidated Statements of Operations Caption 2015 2014 2015 2014 (in millions) Commodity derivatives Sales of natural gas liquids $ 5 $ (4 ) $ 12 $ (7 ) |
Issuances of SEP Units(Tables)
Issuances of SEP Units(Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Effects of Changes in Ownership Interests in Non-Wholly Owned Consolidated Subsidiaries | The following table presents the effects of the issuances of SEP units: Three Months Six Months 2015 2014 2015 2014 (in millions) Net income-controlling interests $ 18 $ 146 $ 285 $ 565 Increase in additional paid-in capital resulting from issuances of SEP units 19 19 25 29 Total net income-controlling interests and changes in equity-controlling interests $ 37 $ 165 $ 310 $ 594 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Pension Plans, Defined Benefit | |
Components of Net Periodic Benefit Cost | Qualified and Non-Qualified Pension Plans—Components of Net Periodic Pension Cost Three Months Six Months 2015 2014 2015 2014 (in millions) U.S. Service cost benefit earned $ 5 $ 4 $ 10 $ 9 Interest cost on projected benefit obligation 6 6 12 12 Expected return on plan assets (11 ) (9 ) (21 ) (19 ) Amortization of loss 3 3 5 6 Net periodic pension cost $ 3 $ 4 $ 6 $ 8 Canada Service cost benefit earned $ 8 $ 8 $ 16 $ 15 Interest cost on projected benefit obligation 11 13 22 26 Expected return on plan assets (17 ) (18 ) (34 ) (35 ) Amortization of loss 6 5 13 11 Amortization of prior service cost 1 1 1 1 Net periodic pension cost $ 9 $ 9 $ 18 $ 18 |
U.S. and Canada Other Post-Retirement Benefits | |
Components of Net Periodic Benefit Cost | Other Post-Retirement Benefit Plans—Components of Net Periodic Benefit Cost Three Months Six Months 2015 2014 2015 2014 (in millions) U.S. Interest cost on accumulated post-retirement benefit obligation $ 2 $ 2 $ 4 $ 4 Expected return on plan assets (2 ) (1 ) (3 ) (2 ) Net periodic other post-retirement benefit cost $ — $ 1 $ 1 $ 2 Canada Service cost benefit earned $ 1 $ 1 $ 2 $ 2 Interest cost on accumulated post-retirement benefit obligation 1 2 2 3 Net periodic other post-retirement benefit cost $ 2 $ 3 $ 4 $ 5 |
Consolidating Financial Infor40
Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Operations | Spectra Energy Corp Condensed Consolidating Statements of Operations (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated Three Months Ended June 30, 2015 Total operating revenues $ — $ — $ 1,192 $ — $ 1,192 Total operating expenses 1 (1 ) 786 — 786 Operating income (loss) (1 ) 1 406 — 406 Loss from equity investments — — (189 ) — (189 ) Equity in earnings of consolidated subsidiaries 12 62 — (74 ) — Other income and expenses, net 2 — 20 — 22 Interest expense — 61 105 — 166 Earnings before income taxes 13 2 132 (74 ) 73 Income tax expense (benefit) (5 ) (10 ) 8 — (7 ) Net income 18 12 124 (74 ) 80 Net income—noncontrolling interests — — 62 — 62 Net income—controlling interests $ 18 $ 12 $ 62 $ (74 ) $ 18 Three Months Ended June 30, 2014 Total operating revenues $ — $ — $ 1,253 $ — $ 1,253 Total operating expenses — 1 914 — 915 Operating income (loss) — (1 ) 339 — 338 Earnings from equity investments — — 85 — 85 Equity in earnings of consolidated subsidiaries 125 264 — (389 ) — Other income and expenses, net (1 ) — 7 — 6 Interest expense — 66 110 — 176 Earnings before income taxes 124 197 321 (389 ) 253 Income tax expense (benefit) (22 ) 72 15 — 65 Net income 146 125 306 (389 ) 188 Net income—noncontrolling interests — — 42 — 42 Net income—controlling interests $ 146 $ 125 $ 264 $ (389 ) $ 146 Spectra Energy Corp Condensed Consolidating Statements of Operations (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated Six Months Ended June 30, 2015 Total operating revenues $ — $ — $ 2,816 $ (1 ) $ 2,815 Total operating expenses 3 (1 ) 1,867 (1 ) 1,868 Operating income (loss) (3 ) 1 949 — 947 Loss from equity investments — — (165 ) — (165 ) Equity in earnings of consolidated subsidiaries 275 483 — (758 ) — Other income and expenses, net — — 42 — 42 Interest expense — 122 203 — 325 Earnings before income taxes 272 362 623 (758 ) 499 Income tax expense (benefit) (13 ) 87 20 — 94 Net income 285 275 603 (758 ) 405 Net income—noncontrolling interests — — 120 — 120 Net income—controlling interests $ 285 $ 275 $ 483 $ (758 ) $ 285 Six Months Ended June 30, 2014 Total operating revenues $ — $ — $ 3,097 $ (1 ) $ 3,096 Total operating expenses 4 1 2,115 (1 ) 2,119 Operating income (loss) (4 ) (1 ) 982 — 977 Earnings from equity investments — — 246 — 246 Equity in earnings of consolidated subsidiaries 540 899 — (1,439 ) — Other income and expenses, net (2 ) 1 16 — 15 Interest expense — 131 223 — 354 Earnings before income taxes 534 768 1,021 (1,439 ) 884 Income tax expense (benefit) (31 ) 228 32 — 229 Net income 565 540 989 (1,439 ) 655 Net income—noncontrolling interests — — 90 — 90 Net income—controlling interests $ 565 $ 540 $ 899 $ (1,439 ) $ 565 |
Condensed Consolidating Statements of Comprehensive Income | Spectra Energy Corp Condensed Consolidating Statements of Comprehensive Income (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated Three Months Ended June 30, 2015 Net income $ 18 $ 12 $ 124 $ (74 ) $ 80 Other comprehensive income 2 — 91 — 93 Total comprehensive income, net of tax 20 12 215 (74 ) 173 Less: comprehensive income—noncontrolling interests — — 64 — 64 Comprehensive income—controlling interests $ 20 $ 12 $ 151 $ (74 ) $ 109 Three Months Ended June 30, 2014 Net income $ 146 $ 125 $ 306 $ (389 ) $ 188 Other comprehensive income 2 — 229 — 231 Total comprehensive income, net of tax 148 125 535 (389 ) 419 Less: comprehensive income—noncontrolling interests — — 45 — 45 Comprehensive income—controlling interests $ 148 $ 125 $ 490 $ (389 ) $ 374 Six Months Ended June 30, 2015 Net income $ 285 $ 275 $ 603 $ (758 ) $ 405 Other comprehensive income (loss) 3 — (395 ) — (392 ) Total comprehensive income, net of tax 288 275 208 (758 ) 13 Less: comprehensive income—noncontrolling interests — — 114 — 114 Comprehensive income (loss)—controlling interests $ 288 $ 275 $ 94 $ (758 ) $ (101 ) Six Months Ended June 30, 2014 Net income $ 565 $ 540 $ 989 $ (1,439 ) $ 655 Other comprehensive income (loss) 4 — (10 ) — (6 ) Total comprehensive income, net of tax 569 540 979 (1,439 ) 649 Less: comprehensive income—noncontrolling interests — — 89 — 89 Comprehensive income—controlling interests $ 569 $ 540 $ 890 $ (1,439 ) $ 560 |
Condensed Consolidating Balance Sheet | Spectra Energy Corp Condensed Consolidating Balance Sheet June 30, 2015 (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated Cash and cash equivalents $ — $ 2 $ 285 $ — $ 287 Receivables—consolidated subsidiaries 10 — 18 (28 ) — Notes receivable—current—consolidated subsidiaries — — 388 (388 ) — Receivables—other 2 — 878 — 880 Other current assets 8 1 561 — 570 Total current assets 20 3 2,130 (416 ) 1,737 Investments in and loans to unconsolidated affiliates — — 2,701 — 2,701 Investments in consolidated subsidiaries 14,515 20,198 — (34,713 ) — Advances receivable—consolidated subsidiaries — 5,212 901 (6,113 ) — Notes receivable—consolidated subsidiaries — — 2,800 (2,800 ) — Goodwill — — 4,615 — 4,615 Other assets 41 23 243 — 307 Net property, plant and equipment — — 22,281 — 22,281 Regulatory assets and deferred debits 2 14 1,387 — 1,403 Total Assets $ 14,578 $ 25,450 $ 37,058 $ (44,042 ) $ 33,044 Accounts payable $ 3 $ 4 $ 550 $ — $ 557 Accounts payable—consolidated subsidiaries — 23 5 (28 ) — Commercial paper — 497 38 — 535 Short-term borrowings—consolidated subsidiaries — 388 — (388 ) — Taxes accrued 5 18 85 — 108 Current maturities of long-term debt — — 917 — 917 Other current liabilities 69 53 898 — 1,020 Total current liabilities 77 983 2,493 (416 ) 3,137 Long-term debt — 2,900 9,883 — 12,783 Advances payable—consolidated subsidiaries 6,113 — — (6,113 ) — Notes payable—consolidated subsidiaries — 2,800 — (2,800 ) — Deferred credits and other liabilities 792 4,252 1,743 — 6,787 Preferred stock of subsidiaries — — 258 — 258 Equity Controlling interests 7,596 14,515 20,198 (34,713 ) 7,596 Noncontrolling interests — — 2,483 — 2,483 Total equity 7,596 14,515 22,681 (34,713 ) 10,079 Total Liabilities and Equity $ 14,578 $ 25,450 $ 37,058 $ (44,042 ) $ 33,044 Spectra Energy Corp Condensed Consolidating Balance Sheet December 31, 2014 (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated Cash and cash equivalents $ — $ 1 $ 214 $ — $ 215 Receivables—consolidated subsidiaries 18 — 11 (29 ) — Notes receivable—current—consolidated subsidiaries — — 398 (398 ) — Receivables—other 2 — 1,334 — 1,336 Other current assets 71 2 708 — 781 Total current assets 91 3 2,665 (427 ) 2,332 Investments in and loans to unconsolidated affiliates — — 2,966 — 2,966 Investments in consolidated subsidiaries 14,531 20,562 — (35,093 ) — Advances receivable—consolidated subsidiaries — 4,683 898 (5,581 ) — Notes receivable—consolidated subsidiaries — — 2,800 (2,800 ) — Goodwill — — 4,714 — 4,714 Other assets 38 22 267 — 327 Net property, plant and equipment — — 22,307 — 22,307 Regulatory assets and deferred debits 4 15 1,375 — 1,394 Total Assets $ 14,664 $ 25,285 $ 37,992 $ (43,901 ) $ 34,040 Accounts payable $ 3 $ — $ 455 $ — $ 458 Accounts payable—consolidated subsidiaries — 17 12 (29 ) — Commercial paper — 398 1,185 — 1,583 Short-term borrowings—consolidated subsidiaries — 398 — (398 ) — Taxes accrued 5 — 86 — 91 Current maturities of long-term debt — — 327 — 327 Other current liabilities 96 54 1,200 — 1,350 Total current liabilities 104 867 3,265 (427 ) 3,809 Long-term debt — 2,900 9,869 — 12,769 Advances payable—consolidated subsidiaries 5,581 — — (5,581 ) — Notes payable—consolidated subsidiaries — 2,800 — (2,800 ) — Deferred credits and other liabilities 819 4,187 1,800 — 6,806 Preferred stock of subsidiaries — — 258 — 258 Equity Controlling interests 8,160 14,531 20,562 (35,093 ) 8,160 Noncontrolling interests — — 2,238 — 2,238 Total equity 8,160 14,531 22,800 (35,093 ) 10,398 Total Liabilities and Equity $ 14,664 $ 25,285 $ 37,992 $ (43,901 ) $ 34,040 |
Condensed Consolidating Statement of Cash Flows | Spectra Energy Corp Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2015 (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 285 $ 275 $ 603 $ (758 ) $ 405 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization — — 393 — 393 Loss from equity investments — — 165 — 165 Equity in earnings of consolidated subsidiaries (275 ) (483 ) — 758 — Distributions received from unconsolidated affiliates — — 93 — 93 Other 30 68 302 — 400 Net cash provided by (used in) operating activities 40 (140 ) 1,556 — 1,456 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures — — (989 ) — (989 ) Investments in and loans to unconsolidated affiliates — — (34 ) — (34 ) Purchases of held-to-maturity securities — — (329 ) — (329 ) Proceeds from sales and maturities of held-to-maturity securities — — 344 — 344 Proceeds from sales and maturities of available-for-sale securities — — 1 — 1 Distributions received from unconsolidated affiliates — — 35 — 35 Advances (to) from affiliates (72 ) 46 — 26 — Other changes in restricted funds — — (6 ) — (6 ) Other — 2 2 Net cash provided by (used in) investing activities (72 ) 46 (976 ) 26 (976 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the issuance of long-term debt — — 994 — 994 Payments for the redemption of long-term debt — — (39 ) — (39 ) Net increase (decrease) in commercial paper — 99 (1,129 ) — (1,030 ) Distributions to noncontrolling interests — — (93 ) — (93 ) Contributions from noncontrolling interests — — 90 — 90 Proceeds from the issuance of SEP common units — — 180 — 180 Dividends paid on common stock (499 ) — — — (499 ) Distributions and advances from (to) affiliates 532 (4 ) (502 ) (26 ) — Other (1 ) — (8 ) — (9 ) Net cash provided by (used in) financing activities 32 95 (507 ) (26 ) (406 ) Effect of exchange rate changes on cash — — (2 ) — (2 ) Net increase in cash and cash equivalents — 1 71 — 72 Cash and cash equivalents at beginning of period — 1 214 — 215 Cash and cash equivalents at end of period $ — $ 2 $ 285 $ — $ 287 Spectra Energy Corp Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2014 (Unaudited) (In millions) Spectra Energy Corp Spectra Capital Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 565 $ 540 $ 989 $ (1,439 ) $ 655 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization — — 405 — 405 Earnings from equity investments — — (246 ) — (246 ) Equity in earnings of consolidated subsidiaries (540 ) (899 ) — 1,439 — Distributions received from unconsolidated affiliates — — 199 — 199 Other (36 ) 229 3 — 196 Net cash provided by (used in) operating activities (11 ) (130 ) 1,350 — 1,209 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures — — (833 ) — (833 ) Investments in and loans to unconsolidated — — (30 ) — (30 ) Purchases of held-to-maturity securities — — (437 ) — (437 ) Proceeds from sales and maturities of held-to-maturity securities — — 453 — 453 Purchases of available-for-sale securities — — (13 ) — (13 ) Proceeds from sales and maturities of available-for-sale securities — — 7 — 7 Distributions received from unconsolidated — — 242 — 242 Advances from affiliates 85 91 — (176 ) — Other changes in restricted funds — — (1 ) — (1 ) Net cash provided by (used in) investing activities 85 91 (612 ) (176 ) (612 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the issuance of long-term debt — 300 412 — 712 Payments for the redemption of long-term debt — (148 ) (588 ) — (736 ) Net decrease in commercial paper — (124 ) (132 ) — (256 ) Distributions to noncontrolling interests — — (81 ) — (81 ) Contributions from noncontrolling interests — — 112 — 112 Proceeds from the issuance of SEP common units — — 191 — 191 Dividends paid on common stock (453 ) — — — (453 ) Distributions and advances from (to) affiliates 366 1 (543 ) 176 — Other 13 — (1 ) — 12 Net cash provided by (used in) financing activities (74 ) 29 (630 ) 176 (499 ) Effect of exchange rate changes on cash — — 1 — 1 Net increase (decrease) in cash and cash equivalents — (10 ) 109 — 99 Cash and cash equivalents at beginning of period — 12 189 — 201 Cash and cash equivalents at end of period $ — $ 2 $ 298 $ — $ 300 |
General - Additional Informatio
General - Additional Information (Detail) | Jun. 30, 2015 |
DCP Midstream, LLC | |
General [Line Items] | |
Percentage of ownership | 50.00% |
Business Segments - Additional
Business Segments - Additional Information (Detail) - Jun. 30, 2015 - reportable_segments | Total |
DCP Midstream, LLC | DCP Midstream Partners, LP | |
Segment Reporting Information [Line Items] | |
Percentage of ownership interests | 21.00% |
Total reportable segments | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
Spectra Energy Corp | DCP Midstream, LLC | |
Segment Reporting Information [Line Items] | |
Percentage of ownership interests | 50.00% |
Phillips 66 | DCP Midstream, LLC | |
Segment Reporting Information [Line Items] | |
Percentage of ownership interests | 50.00% |
Business Segment Data - Condens
Business Segment Data - Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Operating revenues | $ 1,192 | $ 1,253 | $ 2,815 | $ 3,096 | |
Depreciation and amortization | 193 | 199 | 386 | 399 | |
Interest expense | 166 | 176 | 325 | 354 | |
Interest income and other | [1] | (3) | 1 | (1) | 5 |
Earnings From Continuing Operations Before Income Taxes | 73 | 253 | 499 | 884 | |
Operating Segments - Unaffiliated Revenues | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 1,192 | 1,253 | 2,815 | 3,096 | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | (22) | (48) | (55) | (97) | |
Intersegment Eliminations | Operating Segments - Affiliates Revenues | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | (22) | (48) | (55) | (97) | |
Corporate and Other | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 17 | 19 | 35 | 37 | |
EBITDA | (12) | (24) | (27) | (41) | |
Depreciation and amortization | 13 | 11 | 25 | 22 | |
Corporate and Other | Operating Segments - Affiliates Revenues | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 15 | 17 | 31 | 32 | |
Corporate and Other | Operating Segments - Unaffiliated Revenues | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 2 | 2 | 4 | 5 | |
Total reportable segments | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 1,197 | 1,282 | 2,835 | 3,156 | |
EBITDA | 447 | 651 | 1,238 | 1,673 | |
Depreciation and amortization | 180 | 188 | 361 | 377 | |
Total reportable segments | Operating Segments - Affiliates Revenues | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 7 | 31 | 24 | 65 | |
Total reportable segments | Operating Segments - Unaffiliated Revenues | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 1,190 | 1,251 | 2,811 | 3,091 | |
Field Services | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
EBITDA | (233) | 54 | (250) | 184 | |
Western Canada Transmission And Processing | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 304 | 391 | 674 | 966 | |
EBITDA | 104 | 111 | 265 | 348 | |
Depreciation and amortization | 63 | 68 | 125 | 135 | |
Western Canada Transmission And Processing | Operating Segments - Affiliates Revenues | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 7 | 31 | 24 | 65 | |
Western Canada Transmission And Processing | Operating Segments - Unaffiliated Revenues | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 297 | 360 | 650 | 901 | |
Distribution | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 290 | 360 | 952 | 1,078 | |
EBITDA | 98 | 112 | 290 | 338 | |
Depreciation and amortization | 45 | 48 | 90 | 97 | |
Distribution | Operating Segments - Unaffiliated Revenues | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 290 | 360 | 952 | 1,078 | |
Spectra Energy Partners | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | 603 | 531 | 1,209 | 1,112 | |
EBITDA | 478 | 374 | 933 | 803 | |
Depreciation and amortization | 72 | 72 | 146 | 145 | |
Spectra Energy Partners | Operating Segments - Unaffiliated Revenues | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | $ 603 | $ 531 | $ 1,209 | $ 1,112 | |
[1] | Includes foreign currency transaction gains and losses related to segment EBITDA |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) - Spectra Energy - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Regulatory Matters [Line Items] | |||||
Earnings Before Income Taxes | $ 73 | $ 253 | $ 499 | $ 884 | |
Transportation, storage and processing of natural gas | 802 | 780 | 1,644 | 1,667 | |
Sales of natural gas liquids | 31 | 40 | 97 | 227 | |
Other | 31 | $ 54 | 55 | $ 126 | |
Union Gas Limited | Accounts Receivable [Member] | |||||
Regulatory Matters [Line Items] | |||||
Regulatory Assets | $ 8 | $ 8 | $ 9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | $ (7) | $ 65 | $ 94 | $ 229 |
Effective tax rate for income from continuing operations | (10.00%) | 26.00% | 19.00% | 26.00% |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 6 | |||
Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Potential decrease of unrecogonized tax benefits | $ 25 | 25 | ||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Potential decrease of unrecogonized tax benefits | 30 | 30 | ||
DCP Midstream, LLC | Goodwill [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | $ (72) | $ (72) |
Earnings per Common Share - Bas
Earnings per Common Share - Basic and Diluted Eps Calculations (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Earnings Per Share [Abstract] | |||||
Net income-controlling interests | $ 18 | $ 146 | $ 285 | $ 565 | |
Weighted-average common shares outstanding | |||||
Basic (in shares) | 671 | 671 | 671 | 671 | |
Diluted (in shares) | 672 | 673 | 672 | 672 | |
Basic and diluted earnings per common share | [1] | $ 0.03 | $ 0.22 | $ 0.42 | $ 0.84 |
[1] | Quarterly earnings-per-share amounts are stand-alone calculations and may not be additive to full-year amounts due to rounding. |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated other comprehensive income in the equity section of the balance sheet included | ||||
Beginning balance | $ 185 | $ 1,008 | $ 662 | $ 1,241 |
Other AOCI activity | 91 | 227 | (386) | (8) |
Reclassified to net income | 1 | 3 | ||
Ending balance | 276 | 1,236 | 276 | 1,236 |
Foreign Currency Translation Adjustment | ||||
Accumulated other comprehensive income in the equity section of the balance sheet included | ||||
Beginning balance | 532 | 1,313 | 1,016 | 1,557 |
Other AOCI activity | 85 | 220 | (399) | (24) |
Reclassified to net income | 0 | 0 | ||
Ending balance | 617 | 1,533 | 617 | 1,533 |
Pension and Post-retirement Benefit Plan Obligations | ||||
Accumulated other comprehensive income in the equity section of the balance sheet included | ||||
Beginning balance | (345) | (297) | (351) | (304) |
Other AOCI activity | 7 | 6 | 13 | 13 |
Reclassified to net income | 0 | 0 | ||
Ending balance | (338) | (291) | (338) | (291) |
Gas Purchase Contract Hedges | ||||
Accumulated other comprehensive income in the equity section of the balance sheet included | ||||
Beginning balance | 0 | (7) | (3) | (11) |
Other AOCI activity | 0 | 1 | 3 | 3 |
Reclassified to net income | 0 | 2 | ||
Ending balance | 0 | (6) | 0 | (6) |
Other | ||||
Accumulated other comprehensive income in the equity section of the balance sheet included | ||||
Beginning balance | (2) | (1) | 0 | (1) |
Other AOCI activity | (1) | 0 | (3) | 0 |
Reclassified to net income | 1 | 1 | ||
Ending balance | $ (3) | $ 0 | $ (3) | $ 0 |
Inventory - Components of Inven
Inventory - Components of Inventory (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Natural gas | $ 134 | $ 211 |
NGLs | 42 | 28 |
Materials and supplies | 72 | 74 |
Total inventory | $ 248 | $ 313 |
Investments in and Loans to U49
Investments in and Loans to Unconsolidated Affiliates - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Earnings (loss) from equity investments | $ (189) | $ 85 | $ (165) | $ 246 |
DCP Midstream, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of ownership interests | 50.00% | 50.00% | ||
Earnings (loss) from equity investments | 9 | $ 2 | $ 57 | |
Goodwill, Impairment Loss | 427 | |||
loss on equity investment due to impairment of goodwill | $ 122 |
Investments in and Loans to U50
Investments in and Loans to Unconsolidated Affiliates - Summary Financial Information for DCP Midstream Presented at 100 Percent (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Related Party Transaction [Line Items] | ||||
Operating revenues | $ 1,192 | $ 1,253 | $ 2,815 | $ 3,096 |
Operating expenses | 786 | 915 | 1,868 | 2,119 |
Operating income (loss) | 406 | 338 | 947 | 977 |
Net income (loss) | 80 | 188 | 405 | 655 |
Net income (loss) attributable to members’ interests | 18 | 146 | 285 | 565 |
Unconsolidated Affiliates | DCP Midstream, LLC | ||||
Related Party Transaction [Line Items] | ||||
Operating revenues | 1,869 | 3,541 | 3,912 | 7,456 |
Operating expenses | 2,332 | 3,387 | 4,323 | 7,032 |
Operating income (loss) | (463) | 154 | (411) | 424 |
Net income (loss) | (491) | 92 | (497) | 295 |
Net income (loss) attributable to members’ interests | $ (466) | $ 89 | $ (503) | $ 254 |
Marketable Securities and Res51
Marketable Securities and Restricted Funds - Estimated Fair Values of Available for Sale Securities (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | $ 22 | $ 24 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 22 | 23 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | $ 0 | $ 1 |
Marketable Securities and Res52
Marketable Securities and Restricted Funds - Schedule of Restricted and Non-restricted Available for Sale Securities (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | $ 22 | $ 24 |
Investments and other assets-other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Restricted funds, Investments and other assets - other | 0 | 1 |
Non-restricted funds, Investments and other assets - other | 20 | 20 |
Other Current Assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Non-restricted funds, Current assets - other | $ 2 | $ 3 |
Marketable Securities and Res53
Marketable Securities and Restricted Funds - Estimated Fair Values of Held to Maturity Securities (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Total held-to-maturity securities | $ 145 | $ 172 |
Other Current Assets | Bankers acceptances | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total held-to-maturity securities | 34 | 38 |
Other Current Assets | Canadian government securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total held-to-maturity securities | 27 | 30 |
Other Current Assets | Money market funds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total held-to-maturity securities | 3 | 3 |
Investments and other assets-other | Canadian government securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total held-to-maturity securities | $ 81 | $ 101 |
Marketable Securities and Res54
Marketable Securities and Restricted Funds - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Available-for-sale Securities | Maximum | ||
Gain (Loss) on Investments [Line Items] | ||
Weighted-average contractual maturity of outstanding securities | 1 year | |
Held-to-maturity Securities | Maximum | ||
Gain (Loss) on Investments [Line Items] | ||
Weighted-average contractual maturity of outstanding securities | 1 year | |
Investments and other assets-other | ||
Gain (Loss) on Investments [Line Items] | ||
Restricted Cash and Cash Equivalents, Noncurrent | $ 12 | $ 6 |
Other Current Assets | ||
Gain (Loss) on Investments [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $ 13 | $ 13 |
M&N Canada six point nine zero percent senior secured notes due 2014 to 2019 | Maritimes & Northeast Pipeline Limited Partnership | ||
Gain (Loss) on Investments [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.90% |
Debt and Credit Facilities - Av
Debt and Credit Facilities - Available Credit Facilities and Restrictive Debt Covenants (Detail) CAD in Millions, $ in Millions | 6 Months Ended | ||||
Jun. 30, 2015CAD | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |||
Line of Credit Facility [Line Items] | |||||
Total Credit Facilities Capacity | $ 3,720 | ||||
Commercial Paper Outstanding | 535 | $ 1,583 | |||
Available Credit Facilities Capacity | 3,185 | ||||
Spectra Energy Capital, LLC | |||||
Line of Credit Facility [Line Items] | |||||
Line Of Credit Year of Maturity | [1] | 2,019 | |||
Total Credit Facilities Capacity | [1] | 1,000 | |||
Commercial Paper Outstanding | 497 | [1] | $ 398 | ||
Available Credit Facilities Capacity | [1] | 503 | |||
Spectra Energy Partners, LP | |||||
Line of Credit Facility [Line Items] | |||||
Line Of Credit Year of Maturity | [2] | 2,019 | |||
Total Credit Facilities Capacity | [2] | 2,000 | |||
Commercial Paper Outstanding | [2] | 38 | |||
Available Credit Facilities Capacity | [2] | 1,962 | |||
Westcoast Energy Inc. | |||||
Line of Credit Facility [Line Items] | |||||
Line Of Credit Year of Maturity | [3] | 2,019 | |||
Total Credit Facilities Capacity | [3] | 320 | |||
Commercial Paper Outstanding | [3] | 0 | |||
Available Credit Facilities Capacity | [3] | 320 | |||
Union Gas Limited | |||||
Line of Credit Facility [Line Items] | |||||
Line Of Credit Year of Maturity | [4] | 2,019 | |||
Total Credit Facilities Capacity | [4] | 400 | |||
Commercial Paper Outstanding | [4] | 0 | |||
Available Credit Facilities Capacity | [4] | $ 400 | |||
Covenant Requirement | Spectra Energy Capital, LLC | |||||
Line of Credit Facility [Line Items] | |||||
Debt To Total Defined Capital Percentage | 58.00% | 58.00% | |||
Covenant Requirement | Spectra Energy Partners, LP | |||||
Line of Credit Facility [Line Items] | |||||
Debt-to-Adjusted EBITDA Ratio Maximum | 5 | 5 | |||
Debt-to-Adjusted EBITDA Ratio | 3.5 | 3.5 | |||
Covenant Requirement | Westcoast Energy Inc. | |||||
Line of Credit Facility [Line Items] | |||||
Total Credit Facilities Capacity | CAD | CAD 400 | ||||
Debt To Capital Percentage | 33.00% | 33.00% | |||
Covenant Requirement | Union Gas Limited | |||||
Line of Credit Facility [Line Items] | |||||
Total Credit Facilities Capacity | CAD | CAD 500 | ||||
Debt To Capital Percentage | 64.00% | 64.00% | |||
Covenant Requirement | Maximum | Spectra Energy Capital, LLC | |||||
Line of Credit Facility [Line Items] | |||||
Debt To Total Defined Capital Percentage | 65.00% | 65.00% | |||
Covenant Requirement | Maximum | Westcoast Energy Inc. | |||||
Line of Credit Facility [Line Items] | |||||
Debt To Capital Percentage | 75.00% | 75.00% | |||
Covenant Requirement | Maximum | Union Gas Limited | |||||
Line of Credit Facility [Line Items] | |||||
Debt To Capital Percentage | 75.00% | 75.00% | |||
[1] | Revolving credit facility contains a covenant requiring the Spectra Energy Corp consolidated debt-to-total capitalization ratio, as defined in the agreement, to not exceed 65%. Per the terms of the agreement, collateralized debt is excluded from the calculation of the ratio. This ratio was 58% at June 30, 2015. | ||||
[2] | Revolving credit facility contains a covenant that requires SEP to maintain a ratio of total Consolidated Indebtedness-to-Consolidated EBITDA, as defined in the credit agreement, of 5.0 to 1 or less. As of June 30, 2015, this ratio was 3.5 to 1. | ||||
[3] | U.S. dollar equivalent at June 30, 2015. The revolving credit facility is 400 million Canadian dollars and contains a covenant that requires the Westcoast Energy Inc. non-consolidated debt-to-total capitalization ratio to not exceed 75%. The ratio was 33% at June 30, 2015. | ||||
[4] | U.S. dollar equivalent at June 30, 2015. The revolving credit facility is 500 million Canadian dollars and contains a covenant that requires the Union Gas debt-to-total capitalization ratio to not exceed 75% and a provision which requires Union Gas to repay all borrowings under the facility for a period of two days during the second quarter of each year. The ratio was 64% at June 30, 2015. |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Detail) - Mar. 12, 2015 - Spectra Energy Partners, LP - USD ($) $ in Millions | Total |
three point five zero percent senior unsecured notes due 2025 | |
Debt Instrument [Line Items] | |
Unsecured Debt | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 3.50% |
Debt Instrument Year of Maturity | 2,025 |
four point five zero percent senior unsecured notes due 2045 | |
Debt Instrument [Line Items] | |
Unsecured Debt | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% |
Debt Instrument Year of Maturity | 2,045 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis with Fair Value Hierarchy Levels (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | $ 190 | $ 211 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 0 | 1 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 140 | 132 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 50 | 78 |
Cash and cash equivalents | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 91 | 85 |
Cash and cash equivalents | Level 2 | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 91 | 85 |
Other Current Assets | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 2 | 3 |
Other Current Assets | Commodity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 45 | 57 |
Other Current Assets | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 1 | 2 |
Other Current Assets | Level 2 | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 2 | 3 |
Other Current Assets | Level 2 | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 1 | 2 |
Other Current Assets | Level 3 | Commodity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 45 | 57 |
Investments and other assets - other | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 20 | 20 |
Investments and other assets - other | Commodity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 5 | 21 |
Investments and other assets - other | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 22 | |
Investments and other assets - other | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 1 | |
Investments and other assets - other | Level 1 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 1 | |
Investments and other assets - other | Level 2 | Corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 20 | 20 |
Investments and other assets - other | Level 2 | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 26 | 22 |
Investments and other assets - other | Level 3 | Commodity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | 5 | $ 21 |
Other Assets Noncurrent [Member] | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Assets | $ 26 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Assets and Liabilities that are Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Derivative Assets (liabilities) | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Fair value, end of period | $ (9) | $ (9) | $ (5) | $ (3) | ||||
Total realized/unrealized gains (losses): | ||||||||
Included in earnings | (5) | (9) | ||||||
Included in other comprehensive income | 1 | 4 | ||||||
Purchases | 0 | 0 | ||||||
Settlements | 0 | (1) | ||||||
Unrealized gains (losses) relating to instruments held at the end of the period | $ (4) | $ (7) | ||||||
Derivative Financial Instruments, Assets [Member] | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Fair value, end of period | $ 50 | $ 50 | $ 49 | $ 78 | ||||
Total realized/unrealized gains (losses): | ||||||||
Included in earnings | 3 | 9 | ||||||
Included in other comprehensive income | 1 | (5) | ||||||
Purchases | 2 | 3 | ||||||
Settlements | (5) | (35) | ||||||
Unrealized gains (losses) relating to instruments held at the end of the period | $ 0 | $ (16) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Instruments Recorded and Carried at Book Value (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | |
Reported Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Note receivable, noncurrent | [1] | $ 71 | $ 71 |
Long-term Debt | [2] | 13,673 | 13,060 |
Estimate of Fair Value Measurement | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Note receivable, noncurrent | [1] | 71 | 71 |
Long-term Debt, Fair Value | [2] | $ 14,683 | $ 14,446 |
[1] | Included within Investments in and Loans to Unconsolidated Affiliates. | ||
[2] | Excludes capital leases, unamortized items and fair value hedge carrying value adjustments |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Commodity Contract - Scenario, Forecast | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Change in value of inputs used in determining fair value | $ 0.10 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease) | $ 18,000,000 |
Risk Management and Hedging A61
Risk Management and Hedging Activities - Additional Information (Detail) - Jun. 30, 2015 gal in Millions, $ in Millions | USD ($)gal |
Pay Floating Receive Fixed Swaps | |
Derivative [Line Items] | |
Notional principal amount of interest rate hedges | $ | $ 2,100 |
Commodity Contract | |
Derivative [Line Items] | |
Underlying, Derivative Volume | 175 |
Derivative, Term of Contract | 2,018 |
Risk Management and Hedging A62
Risk Management and Hedging Activities - Information about Interest Rate Swaps (Detail) - Interest rate swaps - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Gross Amounts Presented in the Condensed Consolidated Balance Sheets, Assets | $ 27 | $ 24 |
Amounts Not Offset in the Condensed Consolidated Balance Sheets, Assets | 0 | 0 |
Net Amount | $ 27 | $ 24 |
Risk Management and Hedging A63
Risk Management and Hedging Activities - Commodity derivative assets and liabilities offsetting (Details) - Commodity Contract - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative Assets And Liabilities Offsetting Table Text Block [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 144 | $ 169 |
Derivative Liability, Fair Value, Gross Liability | 94 | 91 |
Derivative Asset, Fair Value, Amount Offset Against Liabilities | 94 | 91 |
Derivative Liability, Fair Value, Amount Offset Against Assets | 94 | 91 |
Net Amounts Presented in the Condensed Consolidated Balance Sheet, Assets | 50 | 78 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets, Liabilities | $ 0 | $ 0 |
Risk Management and Hedging A64
Risk Management and Hedging Activities - Commodity derivative impact (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Commodity Contract | ||||
Commodity derivative impact [Line Items] | ||||
Sales of natural gas liquids | $ 5 | $ (4) | $ 12 | $ (7) |
Guarantees and Indemnificatio65
Guarantees and Indemnifications - Additional Information (Detail) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Duke Energy | |
Guarantor Obligations [Line Items] | |
Maximum potential amount of future payments required to make under performance guarantees | $ 406 |
Duke Energy | Guarantees Expire in 2028 | |
Guarantor Obligations [Line Items] | |
Maximum potential amount of future payments required to make under performance guarantees | $ 201 |
Guarantee expiration year | 2,028 |
Fluor Enterprises | |
Guarantor Obligations [Line Items] | |
Percentage of ownership interests | 50.00% |
Westcoast Energy Inc. | |
Guarantor Obligations [Line Items] | |
Percentage of ownership interest | 100.00% |
Issuances of SEP Units - Effect
Issuances of SEP Units - Effects of Issuances (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Noncontrolling Interest [Line Items] | ||||
Net income-controlling interests | $ 18 | $ 146 | $ 285 | $ 565 |
Total net income-controlling interests and changes in equity-controlling interests | 37 | 165 | 310 | 594 |
Additional Paid-in Capital | ||||
Noncontrolling Interest [Line Items] | ||||
Increase in additional paid-in capital resulting from issuances of SEP units | $ 19 | $ 19 | $ 25 | $ 29 |
Issuances of SEP Units - (Addit
Issuances of SEP Units - (Additional Information) (Details) - USD ($) shares in Thousands, $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Net proceeds from the issuance of Spectra Energy Partners, LP | $ 180 | |
Spectra Energy Partners, LP | ||
Related Party Transaction [Line Items] | ||
Net proceeds from the issuance of Spectra Energy Partners, LP | $ 184 | |
Percentage ownership by parent after equity issuance | 81.00% | |
Sale of Stock, Percentage of Ownership before Transaction | 82.00% | |
Limited Partner | Spectra Energy Partners, LP | ||
Related Party Transaction [Line Items] | ||
Partnership units issued | 3,600 | |
General Partner | Spectra Energy Partners, LP | ||
Related Party Transaction [Line Items] | ||
Partnership units issued | 74 | |
Additional Paid-in Capital | Spectra Energy Partners, LP | ||
Related Party Transaction [Line Items] | ||
Partners' Capital Account, Sale of Units | $ 40 | |
Partners Capital Account Sale Of Units Net Of Tax | 25 | |
Noncontrolling Interests | ||
Related Party Transaction [Line Items] | ||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ 139 |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Post Retirement Benefit Plans Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to retirement plans | $ 11 | $ 10 | ||
Service cost benefit earned | $ 5 | $ 4 | 10 | 9 |
Interest cost | 6 | 6 | 12 | 12 |
Expected return on plan assets | (11) | (9) | (21) | (19) |
Amortization of loss | 3 | 3 | 5 | 6 |
Net periodic cost | 3 | 4 | 6 | 8 |
U.S. Other Post-Retirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 2 | 2 | 4 | 4 |
Expected return on plan assets | (2) | (1) | (3) | (2) |
Net periodic cost | 0 | 1 | 1 | 2 |
Canadian Other Post-Retirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost benefit earned | 1 | 1 | 2 | 2 |
Interest cost | 1 | 2 | 2 | 3 |
Net periodic cost | 2 | 3 | 4 | 5 |
Canadian Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to retirement plans | 16 | 26 | ||
Service cost benefit earned | 8 | 8 | 16 | 15 |
Interest cost | 11 | 13 | 22 | 26 |
Expected return on plan assets | (17) | (18) | (34) | (35) |
Amortization of loss | 6 | 5 | 13 | 11 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 1 | 1 | 1 | 1 |
Net periodic cost | $ 9 | $ 9 | $ 18 | $ 18 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Canadian Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost benefit earned | $ 8 | $ 8 | $ 16 | $ 15 |
Contribution to retirement plans | 16 | 26 | ||
Anticipated contributions to the defined benefit plans in 2015 | 31 | |||
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost benefit earned | 5 | 4 | 10 | 9 |
Contribution to retirement plans | 11 | 10 | ||
Anticipated contributions to the defined benefit plans in 2015 | $ 22 | |||
Canadian Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of employer contribution to eligible pay per pay period | 5.00% | |||
Expensed pre-tax employer matching contributions | 2 | 3 | $ 5 | 6 |
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of employer contribution to eligible pay per pay period | 6.00% | |||
Expensed pre-tax employer matching contributions | $ 4 | $ 4 | $ 7 | $ 7 |
Consolidating Financial Infor70
Consolidating Financial Information Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Total operating revenues | $ 1,192 | $ 1,253 | $ 2,815 | $ 3,096 |
Total operating expenses | 786 | 915 | 1,868 | 2,119 |
Operating income (loss) | 406 | 338 | 947 | 977 |
Earnings (loss) from equity investments | (189) | 85 | (165) | 246 |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | 0 |
Other income and expenses, net | 22 | 6 | 42 | 15 |
Interest expense | 166 | 176 | 325 | 354 |
Earnings Before Income Taxes | 73 | 253 | 499 | 884 |
Income tax expense (benefit) | (7) | 65 | 94 | 229 |
Net Income | 80 | 188 | 405 | 655 |
Net income-noncontrolling interests | 62 | 42 | 120 | 90 |
Net income-controlling interests | 18 | 146 | 285 | 565 |
Spectra Energy Corp | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total operating revenues | 0 | 0 | 0 | 0 |
Total operating expenses | 1 | 0 | 3 | 4 |
Operating income (loss) | (1) | 0 | (3) | (4) |
Earnings (loss) from equity investments | 0 | 0 | 0 | 0 |
Income (Loss) from Subsidiaries, Net of Tax | 12 | 125 | 275 | 540 |
Other income and expenses, net | 2 | (1) | 0 | (2) |
Interest expense | 0 | 0 | 0 | 0 |
Earnings Before Income Taxes | 13 | 124 | 272 | 534 |
Income tax expense (benefit) | (5) | (22) | (13) | (31) |
Net Income | 18 | 146 | 285 | 565 |
Net income-noncontrolling interests | 0 | 0 | 0 | 0 |
Net income-controlling interests | 18 | 146 | 285 | 565 |
Spectra Energy Capital, LLC | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total operating revenues | 0 | 0 | 0 | 0 |
Total operating expenses | (1) | 1 | (1) | 1 |
Operating income (loss) | 1 | (1) | 1 | (1) |
Earnings (loss) from equity investments | 0 | 0 | 0 | 0 |
Income (Loss) from Subsidiaries, Net of Tax | 62 | 264 | 483 | 899 |
Other income and expenses, net | 0 | 0 | 0 | 1 |
Interest expense | 61 | 66 | 122 | 131 |
Earnings Before Income Taxes | 2 | 197 | 362 | 768 |
Income tax expense (benefit) | (10) | 72 | 87 | 228 |
Net Income | 12 | 125 | 275 | 540 |
Net income-noncontrolling interests | 0 | 0 | 0 | 0 |
Net income-controlling interests | 12 | 125 | 275 | 540 |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total operating revenues | 1,192 | 1,253 | 2,816 | 3,097 |
Total operating expenses | 786 | 914 | 1,867 | 2,115 |
Operating income (loss) | 406 | 339 | 949 | 982 |
Earnings (loss) from equity investments | (189) | 85 | (165) | 246 |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | 0 |
Other income and expenses, net | 20 | 7 | 42 | 16 |
Interest expense | 105 | 110 | 203 | 223 |
Earnings Before Income Taxes | 132 | 321 | 623 | 1,021 |
Income tax expense (benefit) | 8 | 15 | 20 | 32 |
Net Income | 124 | 306 | 603 | 989 |
Net income-noncontrolling interests | 62 | 42 | 120 | 90 |
Net income-controlling interests | 62 | 264 | 483 | 899 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total operating revenues | 0 | 0 | (1) | (1) |
Total operating expenses | 0 | 0 | (1) | (1) |
Operating income (loss) | 0 | 0 | 0 | 0 |
Earnings (loss) from equity investments | 0 | 0 | 0 | 0 |
Income (Loss) from Subsidiaries, Net of Tax | (74) | (389) | (758) | (1,439) |
Other income and expenses, net | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings Before Income Taxes | (74) | (389) | (758) | (1,439) |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net Income | (74) | (389) | (758) | (1,439) |
Net income-noncontrolling interests | 0 | 0 | 0 | 0 |
Net income-controlling interests | $ (74) | $ (389) | $ (758) | $ (1,439) |
Consolidating Financial Infor71
Consolidating Financial Information - Condensed Consolidating Statements of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net Income | $ 80 | $ 188 | $ 405 | $ 655 |
Other comprehensive income (loss) | 93 | 231 | (392) | (6) |
Total comprehensive income (loss), net of tax | 173 | 419 | 13 | 649 |
Less: comprehensive income-noncontrolling interests | 64 | 45 | 114 | 89 |
Comprehensive income (loss)—controlling interests | 109 | 374 | (101) | 560 |
Spectra Energy Corp | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Income | 18 | 146 | 285 | 565 |
Other comprehensive income (loss) | 2 | 2 | 3 | 4 |
Total comprehensive income (loss), net of tax | 20 | 148 | 288 | 569 |
Comprehensive income (loss)—controlling interests | 20 | 148 | 288 | 569 |
Spectra Energy Capital, LLC | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Income | 12 | 125 | 275 | 540 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total comprehensive income (loss), net of tax | 12 | 125 | 275 | 540 |
Comprehensive income (loss)—controlling interests | 12 | 125 | 275 | 540 |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Income | 124 | 306 | 603 | 989 |
Other comprehensive income (loss) | 91 | 229 | (395) | (10) |
Total comprehensive income (loss), net of tax | 215 | 535 | 208 | 979 |
Less: comprehensive income-noncontrolling interests | 64 | 45 | 114 | 89 |
Comprehensive income (loss)—controlling interests | 151 | 490 | 94 | 890 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Income | (74) | (389) | (758) | (1,439) |
Total comprehensive income (loss), net of tax | (74) | (389) | (758) | (1,439) |
Comprehensive income (loss)—controlling interests | $ (74) | $ (389) | $ (758) | $ (1,439) |
Consolidating Financial Infor72
Consolidating Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Cash and cash equivalents | $ 287 | $ 215 | $ 300 | $ 201 | |
Receivables-other | 880 | 1,336 | |||
Other current assets | 570 | 781 | |||
Total current assets | 1,737 | 2,332 | |||
Investments in and loans to unconsolidated affiliates | 2,701 | 2,966 | |||
Goodwill | 4,615 | 4,714 | |||
Other assets | 307 | 327 | |||
Net property, plant and equipment | 22,281 | 22,307 | |||
Regulatory assets and deferred debits | 1,403 | 1,394 | |||
Total Assets | 33,044 | 34,040 | |||
Accounts payable | 557 | 458 | |||
Commercial paper | 535 | 1,583 | |||
Taxes accrued | 108 | 91 | |||
Current maturities of long-term debt | 917 | 327 | |||
Other current liabilities | 1,020 | 1,350 | |||
Total current liabilities | 3,137 | 3,809 | |||
Long-term debt | 12,783 | 12,769 | |||
Deferred credits and other liabilities | 6,787 | 6,806 | |||
Preferred stock of subsidiaries | 258 | 258 | |||
Equity | |||||
Controlling interests | 7,596 | 8,160 | |||
Noncontrolling interests | 2,483 | 2,238 | |||
Total equity | 10,079 | 10,398 | 10,745 | 10,323 | |
Total Liabilities and Equity | 33,044 | 34,040 | |||
Spectra Energy Corp | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Receivables-consolidated subsidiaries | 10 | 18 | |||
Receivables-other | 2 | 2 | |||
Other current assets | 8 | 71 | |||
Total current assets | 20 | 91 | |||
Investments in consolidated subsidiaries | 14,515 | 14,531 | |||
Other assets | 41 | 38 | |||
Regulatory assets and deferred debits | 2 | 4 | |||
Total Assets | 14,578 | 14,664 | |||
Accounts payable | 3 | 3 | |||
Accounts payable-consolidated subsidiaries | 0 | ||||
Taxes accrued | 5 | 5 | |||
Other current liabilities | 69 | 96 | |||
Total current liabilities | 77 | 104 | |||
Advances payable-consolidated subsidiaries | 6,113 | 5,581 | |||
Deferred credits and other liabilities | 792 | 819 | |||
Equity | |||||
Controlling interests | 7,596 | 8,160 | |||
Total equity | 7,596 | 8,160 | |||
Total Liabilities and Equity | 14,578 | 14,664 | |||
Spectra Energy Capital, LLC | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 2 | 1 | 2 | 12 | |
Receivables-consolidated subsidiaries | 0 | 0 | |||
Receivables-other | 0 | 0 | |||
Other current assets | 1 | 2 | |||
Total current assets | 3 | 3 | |||
Investments in and loans to unconsolidated affiliates | 0 | 0 | |||
Investments in consolidated subsidiaries | 20,198 | 20,562 | |||
Advances receivable-consolidated subsidiaries | 5,212 | 4,683 | |||
Other assets | 23 | 22 | |||
Regulatory assets and deferred debits | 14 | 15 | |||
Total Assets | 25,450 | 25,285 | |||
Accounts payable | 4 | 0 | |||
Accounts payable-consolidated subsidiaries | 23 | 17 | |||
Commercial paper | 497 | [1] | 398 | ||
Short-term borrowings-consolidated subsidiaries | 388 | 398 | |||
Taxes accrued | 18 | ||||
Current maturities of long-term debt | 0 | 0 | |||
Other current liabilities | 53 | 54 | |||
Total current liabilities | 983 | 867 | |||
Long-term debt | 2,900 | 2,900 | |||
Notes payable-consolidated subsidiaries | 2,800 | 2,800 | |||
Deferred credits and other liabilities | 4,252 | 4,187 | |||
Equity | |||||
Controlling interests | 14,515 | 14,531 | |||
Total equity | 14,515 | 14,531 | |||
Total Liabilities and Equity | 25,450 | 25,285 | |||
Non-Guarantor Subsidiaries | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 285 | 214 | $ 298 | $ 189 | |
Receivables-consolidated subsidiaries | 18 | 11 | |||
Notes receivable From Consolidated Subsidiaries current [Abstract] | 388 | 398 | |||
Receivables-other | 878 | 1,334 | |||
Other current assets | 561 | 708 | |||
Total current assets | 2,130 | 2,665 | |||
Investments in and loans to unconsolidated affiliates | 2,701 | 2,966 | |||
Advances receivable-consolidated subsidiaries | 901 | 898 | |||
Notes receivable-consolidated subsidiaries | 2,800 | 2,800 | |||
Goodwill | 4,615 | 4,714 | |||
Other assets | 243 | 267 | |||
Net property, plant and equipment | 22,281 | 22,307 | |||
Regulatory assets and deferred debits | 1,387 | 1,375 | |||
Total Assets | 37,058 | 37,992 | |||
Accounts payable | 550 | 455 | |||
Accounts payable-consolidated subsidiaries | 5 | 12 | |||
Commercial paper | 38 | 1,185 | |||
Taxes accrued | 85 | 86 | |||
Current maturities of long-term debt | 917 | 327 | |||
Other current liabilities | 898 | 1,200 | |||
Total current liabilities | 2,493 | 3,265 | |||
Long-term debt | 9,883 | 9,869 | |||
Advances payable-consolidated subsidiaries | 0 | 0 | |||
Deferred credits and other liabilities | 1,743 | 1,800 | |||
Preferred stock of subsidiaries | 258 | 258 | |||
Equity | |||||
Controlling interests | 20,198 | 20,562 | |||
Noncontrolling interests | 2,483 | 2,238 | |||
Total equity | 22,681 | 22,800 | |||
Total Liabilities and Equity | 37,058 | 37,992 | |||
Eliminations | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Receivables-consolidated subsidiaries | (28) | (29) | |||
Notes receivable From Consolidated Subsidiaries current [Abstract] | (388) | (398) | |||
Total current assets | (416) | (427) | |||
Investments in consolidated subsidiaries | (34,713) | (35,093) | |||
Advances receivable-consolidated subsidiaries | (6,113) | (5,581) | |||
Notes receivable-consolidated subsidiaries | (2,800) | (2,800) | |||
Total Assets | (44,042) | (43,901) | |||
Accounts payable-consolidated subsidiaries | (28) | (29) | |||
Short-term borrowings-consolidated subsidiaries | (388) | (398) | |||
Total current liabilities | (416) | (427) | |||
Advances payable-consolidated subsidiaries | (6,113) | (5,581) | |||
Notes payable-consolidated subsidiaries | (2,800) | (2,800) | |||
Equity | |||||
Controlling interests | (34,713) | (35,093) | |||
Total equity | (34,713) | (35,093) | |||
Total Liabilities and Equity | $ (44,042) | $ (43,901) | |||
[1] | Revolving credit facility contains a covenant requiring the Spectra Energy Corp consolidated debt-to-total capitalization ratio, as defined in the agreement, to not exceed 65%. Per the terms of the agreement, collateralized debt is excluded from the calculation of the ratio. This ratio was 58% at June 30, 2015. |
Consolidating Financial Infor73
Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net Income | $ 80 | $ 188 | $ 405 | $ 655 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 393 | 405 | ||
(Earnings) loss from equity investments | 189 | (85) | 165 | (246) |
Distributions received from unconsolidated affiliates | 93 | 199 | ||
Other | 400 | 196 | ||
Net cash provided by (used in) operating activities | 1,456 | 1,209 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Capital expenditures | (989) | (833) | ||
Investments in and loans to unconsolidated affiliates | (34) | (30) | ||
Purchases of held-to-maturity securities | (329) | (437) | ||
Proceeds from sales and maturities of held-to-maturity securities | 344 | 453 | ||
Purchases of available-for-sale securities | 0 | (13) | ||
Proceeds from sales and maturities of available-for-sale securities | 1 | 7 | ||
Distributions received from unconsolidated affiliates | 35 | 242 | ||
Other changes in restricted funds | (6) | (1) | ||
Other | 2 | 0 | ||
Net cash provided by (used in) investing activities | (976) | (612) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from the issuance of long-term debt | 994 | 712 | ||
Payments for the redemption of long-term debt | (39) | (736) | ||
Net increase in commercial paper | (1,030) | (256) | ||
Distributions to noncontrolling interests | (93) | (81) | ||
Contributions from noncontrolling interests | 90 | 112 | ||
Proceeds from the issuance of SEP common units | 180 | 191 | ||
Dividends paid on common stock | (499) | (453) | ||
Other | (9) | 12 | ||
Net cash provided by (used in) financing activities | (406) | (499) | ||
Effect of exchange rate changes on cash | (2) | 1 | ||
Net increase (decrease) in cash and cash equivalents | 72 | 99 | ||
Cash and cash equivalents at beginning of period | 215 | 201 | ||
Cash and cash equivalents at end of period | 287 | 300 | 287 | 300 |
Spectra Energy Corp | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net Income | 18 | 146 | 285 | 565 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
(Earnings) loss from equity investments | 0 | 0 | 0 | 0 |
Equity in earnings of consolidated subsidiaries | (275) | (540) | ||
Other | 30 | (36) | ||
Net cash provided by (used in) operating activities | 40 | (11) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Advances from (to) affiliates | (72) | 85 | ||
Net cash provided by (used in) investing activities | (72) | 85 | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Dividends paid on common stock | (499) | (453) | ||
Distributions and advances from (to) affiliates | 532 | 366 | ||
Other | (1) | 13 | ||
Net cash provided by (used in) financing activities | 32 | (74) | ||
Spectra Energy Capital, LLC | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net Income | 12 | 125 | 275 | 540 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
(Earnings) loss from equity investments | 0 | 0 | 0 | 0 |
Equity in earnings of consolidated subsidiaries | (483) | (899) | ||
Other | 68 | 229 | ||
Net cash provided by (used in) operating activities | (140) | (130) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Advances from (to) affiliates | 46 | 91 | ||
Net cash provided by (used in) investing activities | 46 | 91 | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from the issuance of long-term debt | 0 | 300 | ||
Payments for the redemption of long-term debt | (148) | |||
Net increase in commercial paper | 99 | (124) | ||
Distributions and advances from (to) affiliates | (4) | 1 | ||
Other | 0 | |||
Net cash provided by (used in) financing activities | 95 | 29 | ||
Net increase (decrease) in cash and cash equivalents | 1 | (10) | ||
Cash and cash equivalents at beginning of period | 1 | 12 | ||
Cash and cash equivalents at end of period | 2 | 2 | 2 | 2 |
Non-Guarantor Subsidiaries | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net Income | 124 | 306 | 603 | 989 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 393 | 405 | ||
(Earnings) loss from equity investments | 189 | (85) | 165 | (246) |
Equity in earnings of consolidated subsidiaries | 0 | |||
Distributions received from unconsolidated affiliates | 93 | 199 | ||
Other | 302 | 3 | ||
Net cash provided by (used in) operating activities | 1,556 | 1,350 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Capital expenditures | (989) | (833) | ||
Investments in and loans to unconsolidated affiliates | (34) | (30) | ||
Purchases of held-to-maturity securities | (329) | (437) | ||
Proceeds from sales and maturities of held-to-maturity securities | 344 | 453 | ||
Purchases of available-for-sale securities | (13) | |||
Proceeds from sales and maturities of available-for-sale securities | 1 | 7 | ||
Distributions received from unconsolidated affiliates | 35 | 242 | ||
Other changes in restricted funds | (6) | (1) | ||
Other | 2 | |||
Net cash provided by (used in) investing activities | (976) | (612) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from the issuance of long-term debt | 994 | 412 | ||
Payments for the redemption of long-term debt | (39) | (588) | ||
Net increase in commercial paper | (1,129) | (132) | ||
Distributions to noncontrolling interests | (93) | (81) | ||
Contributions from noncontrolling interests | 90 | 112 | ||
Proceeds from the issuance of SEP common units | 180 | 191 | ||
Dividends paid on common stock | 0 | |||
Distributions and advances from (to) affiliates | (502) | (543) | ||
Other | (8) | (1) | ||
Net cash provided by (used in) financing activities | (507) | (630) | ||
Effect of exchange rate changes on cash | (2) | 1 | ||
Net increase (decrease) in cash and cash equivalents | 71 | 109 | ||
Cash and cash equivalents at beginning of period | 214 | 189 | ||
Cash and cash equivalents at end of period | 285 | 298 | 285 | 298 |
Eliminations | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net Income | (74) | (389) | (758) | (1,439) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
(Earnings) loss from equity investments | $ 0 | $ 0 | 0 | 0 |
Equity in earnings of consolidated subsidiaries | 758 | 1,439 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Advances from (to) affiliates | 26 | (176) | ||
Net cash provided by (used in) investing activities | 26 | (176) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Distributions and advances from (to) affiliates | (26) | 176 | ||
Net cash provided by (used in) financing activities | $ (26) | $ 176 |