Quarterly report pursuant to Section 13 or 15(d)

Other Non-Current Assets

v3.20.2
Other Non-Current Assets
 9 Months Ended
Sep. 30, 2020
Other Assets, Noncurrent [Abstract]  
Other Non-Current Assets OTHER NON-CURRENT ASSETS
As of September 30, 2020 and December 31, 2019, other non-current assets, net consisted of the following (in millions):
September 30, December 31,
2020 2019
Advances made to municipalities for water system enhancements $ 85  $ 87 
Advances and other asset conveyances to third parties to support LNG terminals 61  55 
Advances made under EPC and non-EPC contracts 5  29 
Equity method investments 77  108 
Debt issuance costs and debt discount, net 46  45 
Tax-related payments and receivables 20  20 
Contract assets, net 64  18 
Other 27  26 
Total other non-current assets, net $ 385  $ 388 
Equity Method Investments

Our equity method investments consist of interests in privately-held companies. In 2017, we acquired an equity interest in Midship Holdings, LLC (“Midship Holdings”), which manages the business and affairs of Midship Pipeline Company, LLC (“Midship Pipeline”), which we account for as an equity method investment. See Note 8—Other Non-Current Assets of our Notes to Consolidated Financial Statements in our annual report on Form 10-K for the fiscal year ended December 31, 2019 for further information.

During the three and nine months ended September 30, 2020, we recognized other-than-temporary impairment losses of $129 million related to our investment in Midship Holdings. Impairment was precipitated primarily due to declining market conditions in the energy industry and customer credit risk, resulting in a reduction in the fair value of our equity interests. During the three and nine months ended September 30, 2019, we recognized losses of $87 million related to our investments in certain equity method investees, including Midship Holdings. Impairments were primarily the result of cost overruns and extended construction timelines for operating infrastructure of our investees’ projects, resulting in a reduction of the fair value of our equity interests. The fair values of our equity interests were measured using an income approach, which utilized level 3 fair value inputs such as projected earnings and discount rates, and/or market approach. Impairment losses associated with our equity method investments are presented in other expense, net.

Our investment in Midship Holdings, net of impairment losses, was $76 million and $105 million at September 30, 2020 and December 31, 2019, respectively.