Note 19 – Segment Disclosures

Our reportable segments are Northeast G&P, Atlantic-Gulf, and West. All remaining business activities are included in Other. (See Note 1 – General, Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies.)

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. Intersegment revenues primarily represent the sale of NGLs from our natural gas processing plants to our marketing business.

We define Modified EBITDA as follows:

•Net income (loss) before:

◦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;

◦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:



		United States		Canada		Total
		(Millions)
Revenues from external customers:
	2018	$	8,686	$	—	$	8,686
	2017	8,030		1		8,031
	2016	7,425		74		7,499

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



	Northeast G&P		Atlantic-Gulf		West		Other		Eliminations			Total
	(Millions)
2018
Segment revenues:
Service revenues
External	$	935	$	2,460	$	2,085	$	22	$	—		$	5,502
Internal	41		49		—		12		(102		)	—
Total service revenues	976		2,509		2,085		34		(102		)	5,502
Total service revenues – commodity consideration (external only)	20		59		321		—		—			400
Product sales
External	245		174		2,365		—		—			2,784
Internal	42		261		83		—		(386		)	—
Total product sales	287		435		2,448		—		(386		)	2,784
Total revenues	$	1,283	$	3,003	$	4,854	$	34	$	(488	)	$	8,686

Other financial information:
Additions to long-lived assets	$	477	$	2,297	$	361	$	36	$	—		$	3,171
Proportional Modified EBITDA of equity-method investments	493		183		94		—		—			770

2017
Segment revenues:
Service revenues
External	$	837	$	2,202	$	2,246	$	27	$	—		$	5,312
Internal	35		37		—		11		(83		)	—
Total service revenues	872		2,239		2,246		38		(83		)	5,312
Product sales
External	264		257		1,840		358		—			2,719
Internal	27		227		173		8		(435		)	—
Total product sales	291		484		2,013		366		(435		)	2,719
Total revenues	$	1,163	$	2,723	$	4,259	$	404	$	(518	)	$	8,031

Other financial information:
Additions to long-lived assets	$	460	$	2,001	$	321	$	32	$	—		$	2,814
Proportional Modified EBITDA of equity-method investments	452		264		79		—		—			795

2016
Segment revenues:
Service revenues
External	$	836	$	1,959	$	2,328	$	48	$	—		$	5,171
Internal	34		39		—		11		(84		)	—
Total service revenues	870		1,998		2,328		59		(84		)	5,171
Product sales
External	134		245		1,183		766		—			2,328
Internal	28		205		197		22		(452		)	—
Total product sales	162		450		1,380		788		(452		)	2,328
Total revenues	$	1,032	$	2,448	$	3,708	$	847	$	(536	)	$	7,499

Other financial information:
Additions to long-lived assets	$	223	$	1,608	$	223	$	92	$	(1	)	$	2,145
Proportional Modified EBITDA of equity-method investments	357		287		110		—		—			754

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,
	2018			2017			2016
	(Millions)
Modified EBITDA by segment:
Northeast G&P	$	1,086		$	819		$	853
Atlantic-Gulf	2,023			1,238			1,621
West	308			412			1,544
Other	(29		)	997			(696		)
	3,388			3,466			3,322
Accretion expense associated with asset retirement obligations for nonregulated operations	(33		)	(33		)	(31		)
Depreciation and amortization expenses	(1,725		)	(1,736		)	(1,763		)
Equity earnings (losses)	396			434			397
Impairment of equity-method investments	(32		)	—			(430		)
Other investing income (loss) – net	219			282			63
Proportional Modified EBITDA of equity-method investments	(770		)	(795		)	(754		)
Interest expense	(1,112		)	(1,083		)	(1,179		)
(Provision) benefit for income taxes	(138		)	1,974			25
Net income (loss)	$	193		$	2,509		$	(350	)

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



	Total Assets						Equity-Method Investments
	December 31, 2018			December 31, 2017			December 31, 2018		December 31, 2017
	(Millions)
Northeast G&P	$	14,526		$	14,397		$	5,319	$	5,307
Atlantic-Gulf	16,346			14,989			776		823
West	13,948			16,143			1,726		422
Other (1)	849			1,449			—		—
Eliminations (2)	(367		)	(626		)	—		—
Total	$	45,302		$	46,352		$	7,821	$	6,552

______________


(1)	Decrease in Other is due primarily to a decreased cash balance.


(2)	Eliminations primarily relate to the intercompany notes and accounts receivable generated by our cash management program.