Segment Disclosures

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Disclosures [Text Block]

Note 19 – 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, Basis of Presentation, and Summary of Significant Accounting Policies.)

Our segment presentation of Williams Partners, which includes our consolidated master limited partnership, is reflective of the parent-level focus by our chief operating decision-maker, considering the resource allocation and governance provisions associated with the master limited partnership structure. This partnership maintains capital and cash management structures that are separate from ours. It is self-funding and maintains its own lines of bank credit and cash management accounts. These factors, coupled with different costs of capital from our other businesses, serve to differentiate the management of this entity as a whole.

Performance Measurement

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.

We define Modified EBITDA as follows:

•Net income (loss) before:

◦Income (loss) from discontinued operations;

◦Provision (benefit) for income taxes;

◦Interest incurred, net of interest capitalized;

◦Equity earnings (losses);

◦Gain on remeasurement of equity-method investment;

◦Impairment of equity-method investments;

◦Other investing income (loss) – net;

◦Impairment of goodwill;

◦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 consistently with the definition described above.

The following geographic area data includes Revenues from external customers based on product shipment origin and Long-lived assets based upon physical location:

		United States		Canada		Total
		(Millions)
Revenues from external customers:
	2016	$	7,425	$	74	$	7,499
	2015	7,247		113		7,360
	2014	7,229		408		7,637
Long-lived assets:
	2016	$	38,091	$	—	$	38,091
	2015	38,016		1,580		39,596
	2014	38,290		1,364		39,654

Long-lived assets are comprised of property, plant, and equipment, goodwill, and other intangible assets.

The following table reflects the reconciliation of Segment revenues to Total revenues as reported in the Consolidated Statement of Operations and Other financial information:

	Williams Partners		Williams NGL & Petchem Services			Other		Eliminations			Total
	(Millions)
2016
Segment revenues:
Service revenues
External	$	5,140	$	2		$	29	$	—		$	5,171
Internal	33		—			19		(52		)	—
Total service revenues	5,173		2			48		(52		)	5,171
Product sales
External	2,318		10			—		—			2,328
Internal	—		16			—		(16		)	—
Total product sales	2,318		26			—		(16		)	2,328
Total revenues	$	7,491	$	28		$	48	$	(68	)	$	7,499
Other financial information:
Additions to long-lived assets	$	2,102	$	33		$	11	$	(1	)	$	2,145
Proportional Modified EBITDA of equity-method investments	754		—			—		—			754
2015
Segment revenues:
Service revenues
External	$	5,134	$	2		$	28	$	—		$	5,164
Internal	1		—			158		(159		)	—
Total service revenues	5,135		2			186		(159		)	5,164
Product sales
External	2,196		—			—		—			2,196
Internal	—		—			—		—			—
Total product sales	2,196		—			—		—			2,196
Total revenues	$	7,331	$	2		$	186	$	(159	)	$	7,360
Other financial information:
Additions to long-lived assets	$	2,960	$	360		$	28	$	(12	)	$	3,336
Proportional Modified EBITDA of equity-method investments	699		—			—		—			699
2014
Segment revenues:
Service revenues
External	$	3,887	$	—		$	229	$	—		$	4,116
Internal	1		—			30		(31		)	—
Total service revenues	3,888		—			259		(31		)	4,116
Product sales
External	3,521		—			—		—			3,521
Internal	—		—			—		—			—
Total product sales	3,521		—			—		—			3,521
Total revenues	$	7,409	$	—		$	259	$	(31	)	$	7,637
Other financial information:
Additions to long-lived assets (1)	$	20,413	$	291		$	54	$	(2	)	$	20,756
Proportional Modified EBITDA of equity-method investments	431		(78		)	85		—			438

_______________

(1) 2014 Additions to long-lived assets within our Williams Partners segment primarily includes the acquisition-date fair value of long-lived assets from the ACMP Acquisition. (See Note 2 - Acquisitions.)

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

	Years Ended December 31,
	2016			2015			2014
	(Millions)
Modified EBITDA by segment:
Williams Partners	$	3,864		$	4,003		$	3,244
Williams NGL & Petchem Services	(540		)	(83		)	(115		)
Other	(2		)	(29		)	103
	3,322			3,891			3,232
Accretion expense associated with asset retirement obligations for nonregulated operations	(31		)	(28		)	(18		)
Depreciation and amortization expenses	(1,763		)	(1,738		)	(1,176		)
Impairment of goodwill	—			(1,098		)	—
Equity earnings (losses)	397			335			144
Gain on remeasurement of equity-method investment	—			—			2,544
Impairment of equity-method investments	(430		)	(1,359		)	—
Other investing income (loss) – net	63			27			43
Proportional Modified EBITDA of equity-method investments	(754		)	(699		)	(438		)
Interest expense	(1,179		)	(1,044		)	(747		)
(Provision) benefit for income taxes	25			399			(1,249		)
Income (loss) from discontinued operations, net of tax	—			—			4
Net income (loss)	$	(350	)	$	(1,314	)	$	2,339

The following table reflects Total assets and Equity-method investments by reportable segments:

	Total Assets						Equity-Method Investments
	December 31, 2016			December 31, 2015			December 31, 2016		December 31, 2015
	(Millions)
Williams Partners	$	46,265		$	47,870		$	6,701	$	7,336
Williams NGL & Petchem Services	249			835			—		—
Other	674			850			—		—
Eliminations	(353		)	(535		)	—		—
Total	$	46,835		$	49,020		$	6,701	$	7,336