UNCONSOLIDATED AFFILIATES (Notes)

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Affiliates - The following table sets forth our investments in unconsolidated affiliates for the periods indicated:



	Net Ownership Interest	December 31, 2019		December 31, 2018
		(Thousands of dollars)
Northern Border Pipeline	50%	$	307,209	$	381,623
Overland Pass Pipeline	50%	417,473		429,295
Roadrunner	50%	80,816		93,857
Other	Various	56,346		64,375
Investments in unconsolidated affiliates (a)		$	861,844	$	969,150

(a) - Equity-method goodwill (Note A) was $38.8 million at December 31, 2019 and 2018.

Equity in Net Earnings from Investments and Impairments - The following table sets forth our equity in net earnings from investments for the periods indicated:



	Years Ended December 31,
	2019			2018		2017
	(Thousands of dollars)
Northern Border Pipeline	$	68,871		$	67,854	$	68,153
Overland Pass Pipeline	63,698			65,887		60,067
Roadrunner	26,839			22,993		19,150
Other	(4,867		)	1,649		11,908
Equity in net earnings from investments	$	154,541		$	158,383	$	159,278
Impairment of equity investments	$	—		$	—	$	(4,270	)

Impairment Charges - In 2017, following a review of nonstrategic assets for potential divestiture, we recorded $4.3 million of noncash impairment charges related to a nonstrategic equity investment located in Oklahoma, which was later sold.

Unconsolidated Affiliates Financial Information - The following tables set forth summarized combined financial information of our unconsolidated affiliates for the periods indicated:



	December 31, 2019			December 31, 2018
	(Thousands of dollars)
Balance Sheet
Current assets	$	149,564		$	158,723
Property, plant and equipment, net	$	2,314,631		$	2,413,662
Other noncurrent assets	$	13,252		$	16,273
Current liabilities	$	88,142		$	83,057
Long-term debt	$	581,327		$	480,731
Other noncurrent liabilities	$	76,685		$	47,826
Accumulated other comprehensive income (loss)	$	(28,373	)	$	2,053
Owners’ equity	$	1,759,666		$	1,974,991



	Years Ended December 31,
	2019		2018		2017
	(Thousands of dollars)
Income Statement
Revenues	$	634,135	$	637,762	$	639,102
Operating expenses	$	291,210	$	276,373	$	277,121
Net income	$	315,274	$	337,694	$	347,692

Distributions paid to us (a)	$	257,644	$	197,285	$	196,114

(a) As determined by the Northern Border Pipeline Management Committee, we received an additional distribution of $50.0 million from Northern Border Pipeline during the year ended December 31, 2019.

We incurred expenses in transactions with unconsolidated affiliates of $164.7 million, $153.9 million and $156.1 million for 2019, 2018 and 2017, respectively, primarily related to Overland Pass Pipeline and Northern Border Pipeline. Accounts payable to our equity-method investees at December 31, 2019 and 2018, were $13.5 million and $14.7 million, respectively.

Northern Border Pipeline - The Northern Border Pipeline partnership agreement provides that distributions to Northern Border Pipeline’s partners are to be made on a pro rata basis according to each partner’s percentage interest. The Northern Border Pipeline Management Committee determines the amount and timing of such distributions. Any changes to, or suspension of, the cash distribution policy of Northern Border Pipeline requires the unanimous approval of the Northern Border Pipeline Management Committee. Cash distributions are equal to 100% of distributable cash flow as determined from Northern Border Pipeline’s financial statements based upon EBITDA less interest expense and maintenance capital expenditures. Loans or other advances from Northern Border Pipeline to its partners or affiliates are prohibited under its credit agreement. In 2019 and 2018, we made no contributions to Northern Border Pipeline. In 2017, we made equity contributions of $83 million to Northern Border Pipeline.

Northern Border Pipeline entered into a settlement with shippers that was approved by the FERC in February 2018. The settlement provides for tiered rate reductions beginning January 1, 2018, that reduced tariff rates 12.5% by January 2020, compared with previous tariff rates and requires new rates to be established by January 2024. We do not expect the impact of lower tariff rates on Northern Border Pipeline’s earnings and cash distributions to be material to us.

Overland Pass Pipeline - The Overland Pass Pipeline agreement provides that distributions to Overland Pass Pipeline’s members are to be made on a pro rata basis according to each member’s percentage interest. The Overland Pass Pipeline Company Management Committee determines the amount and timing of such distributions. Any changes to, or suspension of, the cash distributions from Overland Pass Pipeline requires the unanimous approval of the Overland Pass Pipeline Company Management Committee. Cash distributions are equal to 100% of available cash as defined in the limited liability company agreement.

Roadrunner - The Roadrunner agreement provides that distributions to members are made on a pro rata basis according to each member’s ownership interest. As the operator, we have been delegated the authority to determine such distributions in accordance with, and on the frequency set forth in, the Roadrunner agreement. Cash distributions are equal to 100% of available cash, as defined in the limited liability company agreement. In 2019, 2018 and 2017, our contributions to Roadrunner were not material.

We have an operating agreement with Roadrunner that provides for reimbursement or payment to us for management services and certain operating costs. Reimbursements and payments from Roadrunner included in operating income in our Consolidated Statements of Income for the years ended December 31, 2019, 2018 and 2017, were not material.