Segment Disclosures

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Disclosures [Text Block]

Note 12 – Segment Disclosures

We have one reportable segment, Williams Partners. All remaining business activities are included in Other. (See Note 1 – General, Description of Business, and Basis of Presentation.)

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

	Williams Partners		Other		Eliminations			Total
	(Millions)
Three Months Ended March 31, 2017
Segment revenues:
Service revenues
External	$	1,256	$	5	$	—		$	1,261
Internal	—		3		(3		)	—
Total service revenues	1,256		8		(3		)	1,261
Product sales
External	727		—		—			727
Internal	—		—		—			—
Total product sales	727		—		—			727
Total revenues	$	1,983	$	8	$	(3	)	$	1,988
Three Months Ended March 31, 2016
Segment revenues:
Service revenues
External	$	1,222	$	7	$	—		$	1,229
Internal	4		11		(15		)	—
Total service revenues	1,226		18		(15		)	1,229
Product sales
External	428		3		—			431
Internal	—		—		—			—
Total product sales	428		3		—			431
Total revenues	$	1,654	$	21	$	(15	)	$	1,660
March 31, 2017
Total assets	$	46,938	$	656	$	(82	)	$	47,512
December 31, 2016
Total assets	$	46,265	$	685	$	(115	)	$	46,835

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

	Three Months Ended   March 31,
	2017			2016
	(Millions)
Modified EBITDA by segment:
Williams Partners	$	1,132		$	955
Other	18			(37		)
	1,150			918
Accretion expense associated with asset retirement obligations for nonregulated operations	(7		)	(7		)
Depreciation and amortization expenses	(442		)	(445		)
Equity earnings (losses)	107			97
Impairment of equity-method investments	—			(112		)
Other investing income (loss) – net	272			18
Proportional Modified EBITDA of equity-method investments	(194		)	(189		)
Interest expense	(280		)	(291		)
(Provision) benefit for income taxes	(37		)	(2		)
Net income (loss)	$	569		$	(13	)