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REVENUE REVENUE (Notes) | 6 Months Ended
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Jun. 30, 2018
Revenue from Contract with Customer [Abstract] |
Revenues [Text Block] | REVENUES Adoption of ASC Topic 606: Revenue from Contracts with Customers - We adopted Topic 606 on January 1, 2018, using the modified retrospective method applied to contracts that were active as of January 1, 2018. Results for reporting periods beginning after January 1, 2018, are presented under Topic 606, while prior periods are not adjusted and continue to be reported under the accounting standards in effect for those periods. We recorded a net increase to the beginning balance of retained earnings of approximately $1.7 million as of January 1, 2018, due to the cumulative impact of adopting the standard, primarily related to the timing of revenue on transportation contracts with tiered rates that resulted in contract assets in our Natural Gas Pipelines segment, contributions in aid of construction from customers that resulted in contract liabilities and an adjustment to NGL inventory related to contractual fees in our Natural Gas Liquids Segment, as described below. Based on the new guidance, we determined that certain Natural Gas Gathering and Processing segment POP with fee contracts and Natural Gas Liquids segment exchange services contracts that include the purchase of commodities are supplier contracts. Therefore, contractual fees in these identified contracts are now recorded as a reduction of the commodity purchase price in cost of sales and fuel pursuant to ASC 705 rather than as services revenue. To the extent we hold inventory related to these purchases, the related fees previously recorded in services revenue will not be recognized until the inventory is sold. We continue to be principal on the downstream sales of those commodities, which is unchanged from our assessment under previous guidance. The impact on our Consolidated Income Statement and Balance Sheet is as follows (in thousands):
|  | Three Months Ended June 30, 2018
Income Statement |  | As Reported |  | Balance Without Adoption of Topic 606 |  | Effect of Change Increase/(Decrease)
Services revenue |  | $ | 285,267 |  |  | $ | 644,615 |  |  | $ | (359,348 | )
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | 2,175,818 |  |  | $ | 2,523,916 |  |  | $ | (348,098 | )
Depreciation and amortization |  | $ | 106,288 |  |  | $ | 106,142 |  |  | $ | 146 |
Income taxes |  | $ | 87,531 |  |  | $ | 90,151 |  |  | $ | (2,620 | )
Net income |  | $ | 282,179 |  |  | $ | 290,955 |  |  | $ | (8,776 | )
Net income attributable to noncontrolling interests |  | $ | 1,131 |  |  | $ | 1,128 |  |  | $ | 3 |
Net income attributable to ONEOK |  | $ | 281,048 |  |  | $ | 289,827 |  |  | $ | (8,779 | )
|  | Six Months Ended June 30, 2018
Income Statement |  | As Reported |  | Balance Without Adoption of Topic 606 |  | Effect of Change Increase/(Decrease)
Services revenue |  | $ | 567,340 |  |  | $ | 1,278,930 |  |  | $ | (711,590 | )
Cost of sales and fuel (exclusive of depreciation and operating costs) |  | $ | 4,543,844 |  |  | $ | 5,249,690 |  |  | $ | (705,846 | )
Depreciation and amortization |  | $ | 210,525 |  |  | $ | 210,234 |  |  | $ | 291 |
Income taxes |  | $ | 163,302 |  |  | $ | 164,690 |  |  | $ | (1,388 | )
Net income |  | $ | 548,228 |  |  | $ | 552,875 |  |  | $ | (4,647 | )
Net income attributable to noncontrolling interests |  | $ | 2,672 |  |  | $ | 2,667 |  |  | $ | 5 |
Net income attributable to ONEOK |  | $ | 545,556 |  |  | $ | 550,208 |  |  | $ | (4,652 | )
|  | June 30, 2018
Balance Sheet |  | As Reported |  | Balance Without Adoption of Topic 606 |  | Effect of Change Increase/(Decrease)
Accounts receivable, net |  | $ | 934,664 |  |  | $ | 1,056,974 |  |  | $ | (122,310 | )
Natural gas and natural gas liquids in storage |  | $ | 285,776 |  |  | $ | 299,616 |  |  | $ | (13,840 | )
Other current assets |  | $ | 57,286 |  |  | $ | 56,230 |  |  | $ | 1,056 |
Property, plant and equipment |  | $ | 16,363,716 |  |  | $ | 16,341,524 |  |  | $ | 22,192 |
Accumulated depreciation and amortization |  | $ | 3,059,799 |  |  | $ | 3,058,136 |  |  | $ | 1,663 |
Deferred income taxes |  | $ | 31,503 |  |  | $ | 30,617 |  |  | $ | 886 |
Other assets |  | $ | 170,124 |  |  | $ | 165,130 |  |  | $ | 4,994 |
Accounts payable |  | $ | 1,027,467 |  |  | $ | 1,149,777 |  |  | $ | (122,310 | )
Other current liabilities |  | $ | 184,127 |  |  | $ | 182,577 |  |  | $ | 1,550 |
Other deferred credits |  | $ | 357,184 |  |  | $ | 342,162 |  |  | $ | 15,022 |
Retained earnings/paid-in capital |  | $ | 7,699,934 |  |  | $ | 7,702,903 |  |  | $ | (2,969 | )
Noncontrolling interests in consolidated subsidiaries |  | $ | 173,623 |  |  | $ | 173,601 |  |  | $ | 22 |
Revenue Recognition - Revenues are recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. Our payment terms vary by customer and contract type, including requiring payment before products or services are delivered to certain customers. However, the term between customer prepayments, completion of our performance obligations, invoicing and receipt of payment due is not significant. Practical Expedients - We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) variable consideration on contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Receivables from Customers, Performance Obligations and Revenue Sources - The balances in accounts receivable on our Consolidated Balance Sheet at June 30, 2018, and December 31, 2017, include customer receivables of $926.1 million and $1.2 billion, respectively. Revenues sources are disaggregated in Note L and are derived from commodity sales and services revenues, as described below: Commodity Sales (all segments) - We contract to deliver residue natural gas, condensate, unfractionated NGLs and/or NGL products to customers at a specified delivery point. Our sales agreements may be daily or longer-term contracts for a specified volume. We consider the sale and delivery of each unit of a commodity an individual performance obligation as the customer is expected to control, accept and benefit from each unit individually. We record revenue when the commodity is delivered to the customer as this represents the point in time when control of the product is transferred to the customer. Revenue is recorded based on the contracted selling price, which is generally index-based and settled monthly. Services Gathering only contracts (Natural Gas Gathering and Processing segment) - Under this type of contract, we charge fees for providing midstream services, which include gathering our customer’s natural gas. Our performance obligation begins with delivery of raw natural gas to our system. This service is treated as one performance obligation that is satisfied over time. We use the output method based on delivery of product to our system as the measure of progress, as our services are performed simultaneously. POP contracts with producer take-in-kind rights (Natural Gas Gathering and Processing segment) - Under this type of contract, we do not control the stream of unprocessed gas that we receive at the wellhead due to the producer’s take-in-kind rights. We charge fees for providing midstream services, which include gathering and processing our customer’s natural gas. After performing these services, we return a portion of the natural gas to the producer and purchase the remaining commodities. Our performance obligation begins with delivery of raw natural gas to our system. This service is treated as one performance obligation that is satisfied over time. We use the output method based on delivery of product to our system as the measure of progress, as our services are performed simultaneously. Transportation and exchange contracts (Natural Gas Liquids segment) - Under this type of contract, we charge fees for providing midstream services, which may include a bundled combination of gathering, transporting and/or fractionation of our customer’s NGLs. Our performance obligation begins with delivery of unfractionated NGLs or NGL products to our system. These services represent a series of distinct services that are treated as one performance obligation that is satisfied over time. We use the output method based on delivery of product to our system as the measure of progress, as our services are performed simultaneously. For transportation services under a tariff on our NGL transportation pipelines, fees are recorded upon redelivery to our customer at the completion of the transportation services. Storage contracts (Natural Gas Liquids and Natural Gas Pipelines segments) - We reserve a stated storage capacity and inject/withdraw/store commodities for our customer. The capacity reservation and injection/withdrawal/storage services are considered a bundled service, as we integrate them into one stand-ready obligation provided on a daily basis over the life of the agreement and satisfied over time. Fixed capacity reservation fees are allocated and evenly recognized in revenue. Capacity reservation fees that vary based on a stated or implied economic index and correspond with the costs to provide our services are recognized in revenue based on daily effective fee rate. Transportation, injection and withdrawal fees are recognized in revenue as those services are provided and are dependent on the volume transported, injected or withdrawn by our customer, which is at our customer’s discretion. We use the output method based on the passage of time to measure satisfaction of the performance obligation associated with our daily stand-ready services. Firm service transportation contracts (Natural Gas Pipelines segment) - We reserve a stated transportation capacity and transport commodities for our customer. The capacity reservation and transportation services are considered a bundled service, as we integrate them into one stand-ready obligation provided on a daily basis over the life of the agreement and satisfied over time. Fixed capacity reservation fees are allocated and evenly recognized in revenue. Capacity reservation fees that vary based on a stated or implied economic index and correspond with the costs to provide our services are recognized in revenue based on a daily effective fee rate. If the capacity reservation fees vary solely as a contract feature, contract assets or liabilities are recorded for the difference between the amount recorded in revenue and the amount billed to the customer. Transportation fees are recognized in revenue as those services are provided and are dependent on the volume transported by our customer, which is at our customer’s discretion. We use the output method based on the passage of time to measure satisfaction of the performance obligation associated with our daily stand-ready services. Interruptible transportation contracts (Natural Gas Pipelines segment) - We agree to transport natural gas on our pipelines between the customer’s specified nomination and delivery points if capacity is available after satisfying firm transportation service obligations. Our performance obligations and those of our customer begin with delivery of natural gas onto our pipeline and is satisfied over time. The transaction price is based on the transportation fees times the volumes transported. These fees may change over time based on an index or other factors provided in the agreement. We use the output method based on delivery of product to the customer to measure satisfaction of the performance obligation. The total consideration for delivered volumes is recorded in revenue at the time of delivery, when the customer obtains control. Contract Assets and Contract Liabilities - Contract assets and contract liabilities are recorded when the amount of revenue recognized from a contract with a customer differs from the amount billed to the customer and recorded in accounts receivable. Our contract asset balances at the beginning and end of the period primarily relate to our firm service transportation contracts with tiered rates. Our contract liabilities primarily represent deferred revenue on NGL storage contracts for which revenue is recognized over a one-year term and deferred revenue on contributions in aid of construction received from customers for which revenue is recognized over the contract period, which averages approximately 10 years. The following tables set forth the changes in our contract asset and contract liability balances during the six months ended June 30, 2018.
Contract Assets |  | (Millions of dollars)
Balance at January 1, 2018 (a) |  | $ | 6.4 |
Amounts invoiced in excess of revenue recognized |  | (0.4 | )
Net additions |  | 0.4 |
Balance at June 30, 2018 (b) |  | $ | 6.4 |
(a) - Balance includes $0.9 million of current assets. (b) - Contract assets of $1.4 million and $5.0 million are included in other current assets and other assets, respectively, in our Consolidated Balance Sheet.
Contract Liabilities |  | (Millions of dollars)
Balance at January 1, 2018 (a) |  | $ | 33.3 |
Revenue recognized included in beginning balance |  | (18.3 | )
Net additions |  | 27.8 |
Balance at June 30, 2018 (b) |  | $ | 42.8 |
(a) - Balance includes $19.5 million of current liabilities. (b) - Contract liabilities of $27.8 million and $15.0 million are included in other current liabilities and other deferred credits, respectively, in our Consolidated Balance Sheet. Transaction Price Allocated to Unsatisfied Performance Obligations - The following table presents aggregate value allocated to unsatisfied performance obligations as of June 30, 2018, and the amounts we expect to recognize in revenue in future periods, related primarily to firm transportation and storage contracts with remaining contract terms ranging from one month to 26 years:
Expected Period of Recognition in Revenue |  | (Millions of dollars)
Remainder of 2018 |  | $ | 168.5 |
2019 |  | 271.6 |
2020 |  | 226.1 |
2021 |  | 219.2 |
2022 and beyond |  | 1,066.7 |
Total estimated transaction price allocated to unsatisfied performance obligations |  | $ | 1,952.1 |
The table above excludes variable consideration allocated entirely to wholly unsatisfied performance obligations, wholly unsatisfied promises to transfer distinct goods or services that are part of a single performance obligation and consideration we determine to be fully constrained. Information on the nature of the variable consideration excluded and the nature of the performance obligations to which the variable consideration relates can be found in the description of the major contract types discussed above. The amounts we determined to be fully constrained relate to future sales obligations under long-term sales contracts where the transaction price is not known and minimum volume agreements, which we consider to be fully constrained until invoiced.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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