 For The Years Ended December 31, 1997, 1996 and 1995 |
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| Note 9. Investment in Affiliates |
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Certain investments, where the Corporation’s ownership in domestic and international affiliates is 50 percent or less, are accounted for by the equity method. These investments include undistributed earnings of $20.6 million in 1997 and $49.7 million in 1996. The Corporation’s proportionate share of net income from these affiliates for the years ended December 31, 1997, 1996 and 1995 was $38.4 million, $32.7 million, and $59.8 million, respectively. These amounts are reflected in Other Operating Revenues in the Consolidated Statements of Income. Investment in affiliates as of December 31, 1997 and 1996 includes the following: |
| In Millions | 1997 | 1996 |
| Natural Gas Transmission – domestic | $ | 67.5 | $ | 46.5 | ||||
| Energy Services | ||||||||
| Field Services – domestic | 159.8 | 129.6 | ||||||
| Global Asset Development | ||||||||
| Domestic | 174.5 | 14.5 | ||||||
| International | 207.8 | 183.5 | ||||||
| Other Energy Services | ||||||||
| Domestic | 15.9 | 49.5 | ||||||
| International | 9.7 | 1.4 | ||||||
| Total Energy Services | 567.7 | 378.5 | ||||||
| Other Operations | ||||||||
| Domestic | 38.1 | 65.3 | ||||||
| International | 12.6 | 12.6 | ||||||
| Total Other Operations | 50.7 | 77.9 | ||||||
| Total Investments in Affiliates | $ | 685.9 | $ | 502.9 | ||||
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Natural Gas Transmission. Investments primarily include ownership interests in natural gas pipeline joint ventures which transport gas from Canada to the United States. Field Services. Among other investments, Field Services holds an interest in a partnership which owns natural gas gathering systems in the Gulf of Mexico, a master limited partnership that owns and operates a petroleum pipeline, and a joint venture that provides gathering, processing and marketing services for natural gas producers in Oklahoma. Global Asset Development. Global Asset Development has investments in various natural gas and electric generation and transmission facilities world-wide, and in a joint venture that owns and operates a methanol plant and a MTBE (methyl tertiary butyl ether) plant in Jubail, Saudi Arabia. Other Energy Services. Investments include the participation in various construction and support activities for fossil-fueled generating plants. Other Operations. This segment holds investments in various real estate development projects and a joint venture that provides wireless personal communication services. Summarized combined balance sheet and income statement information of the entities that are accounted for using the equity method are as follows: |
| In Millions | 1997 | 1996 | 1995 |
| Assets | |||||||||||
| Current Assets | $ | 642.0 | $ | 1,025.2 | $ | 617.0 | |||||
| Noncurrent Assets | 5,867.8 | 5,660.5 | 5,090.2 | ||||||||
| Total Assets | $ | 6,509.8 | $ | 6,685.7 | $ | 5,707.2 | |||||
| Liabilities and Equity | |||||||||||
| Current Liabilities | $ | 757.4 | $ | 879.3 | $ | 468.5 | |||||
| Noncurrent Liabilities | 3,257.2 | 3,461.4 | 3,376.0 | ||||||||
| Equity | 2,495.2 | 2,345.0 | 1,862.7 | ||||||||
| Total Liabilities and Equity | $ | 6,509.8 | $ | 6,685.7 | $ | 5,707.2 | |||||
| Income | |||||||||||
| Operating Revenues | $ | 905.0 | $ | 3,133.2 | $ | 1,391.2 | |||||
| Operating Expenses | 702.8 | 2,494.1 | 667.1 | ||||||||
| Net Income | 72.4 | 160.1 | 236.2 |
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The Corporation had outstanding loans to certain affiliates of $87.1 million and $2.9 million at December 31, 1997 and 1996, respectively. |
| Back to Notes to Consolidated Financial Statements Table of Contents |