Segment Disclosures

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Disclosures

Note 13 – Segment Disclosures

Our reportable segments are Williams Partners and Williams NGL & Petchem Services. All remaining business activities are included in Other. (See Note 1 – General, Description of Business, and Basis of Presentation.)

Performance Measurement

Prior to first quarter of 2015, we evaluated segment operating performance based on Segment profit (loss) from operations. Beginning in the first quarter of 2015, we evaluate segment operating performance based upon Modified EBITDA (earnings before interest, taxes, depreciation and amortization). This measure represents the basis of our internal financial reporting and is the primary performance measure used by our chief operating decision maker in measuring performance and allocating resources among our reportable segments. Prior period segment disclosures have been recast to reflect this change.

We define Modified EBITDA as follows:

•Net income (loss) before:

◦Provision (benefit) for income taxes;

◦Interest incurred, net of interest capitalized;

◦Equity earnings (losses);

◦Other investing income (loss) – net;

◦Depreciation and amortization expenses;

◦Accretion expense associated with asset retirement obligations for nonregulated operations.

• This measure is further adjusted to include our proportionate share (based on ownership interest) of Modified EBITDA from our equity-method investments calculated consistent with the definition described above.

The following table reflects the reconciliation of Segment revenues to Total revenues as reported in the Consolidated Statement of Income and Total assets by reportable segment.

	Williams Partners		Williams NGL & Petchem Services (1)		Other		Eliminations			Total
	(Millions)
Three months ended March 31, 2015
Segment revenues:
Service revenues
External	$	1,192	$	—	$	5	$	—		$	1,197
Internal	—		—		21		(21		)	—
Total service revenues	1,192		—		26		(21		)	1,197
Product sales
External	519		—		—		—			519
Internal	—		—		—		—			—
Total product sales	519		—		—		—			519
Total revenues	$	1,711	$	—	$	26	$	(21	)	$	1,716
Three months ended March 31, 2014
Segment revenues:
Service revenues
External	$	763	$	—	$	56	$	—		$	819
Internal	—		—		3		(3		)	—
Total service revenues	763		—		59		(3		)	819
Product sales
External	930		—		—		—			930
Internal	—		—		—		—			—
Total product sales	930		—		—		—			930
Total revenues	$	1,693	$	—	$	59	$	(3	)	$	1,749
March 31, 2015
Total assets	$	49,284	$	656	$	1,101	$	(584	)	$	50,457
December 31, 2014
Total assets	$	49,322	$	612	$	1,220	$	(591	)	$	50,563

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(1) Includes certain projects under development and thus no reported revenues to date.

The following table reflects the reconciliation of Modified EBITDA to Net income (loss) as reported in the Consolidated Statement of Income.

	Three months ended March 31,
	2015			2014
	(Millions)
Modified EBITDA by Segment:
Williams Partners	$	817		$	708
Williams NGL & Petchem Services	(5		)	(100		)
Other	—			58
	812			666
Accretion expense associated with asset retirement obligations for nonregulated operations	(6		)	(3		)
Depreciation and amortization expenses	(427		)	(214		)
Equity earnings (losses)	51			(48		)
Other investing income (loss) – net	—			14
Proportional Modified EBITDA of equity-method investments	(136		)	(28		)
Interest expense	(251		)	(140		)
(Provision) benefit for income taxes	(30		)	(51		)
Net income (loss)	$	13		$	196