Note 14 – 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, and Basis of Presentation.)

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);

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



	Northeast G&P		Atlantic-Gulf		West		Other		Eliminations			Total
	(Millions)
Three Months Ended March 31, 2019
Segment revenues:
Service revenues
External	$	266	$	697	$	473	$	4	$	—		$	1,440
Internal	10		12		—		3		(25		)	—
Total service revenues	276		709		473		7		(25		)	1,440
Total service revenues – commodity consideration	5		13		46		—		—			64
Product sales
External	36		52		462		—		—			550
Internal	11		30		17		—		(58		)	—
Total product sales	47		82		479		—		(58		)	550
Total revenues	$	328	$	804	$	998	$	7	$	(83	)	$	2,054

Three Months Ended March 31, 2018
Segment revenues:
Service revenues
External	$	219	$	596	$	531	$	5	$	—		$	1,351
Internal	9		13		—		3		(25		)	—
Total service revenues	228		609		531		8		(25		)	1,351
Total service revenues – commodity consideration	4		15		82		—		—			101
Product sales
External	89		35		512		—		—			636
Internal	9		58		18		—		(85		)	—
Total product sales	98		93		530		—		(85		)	636
Total revenues	$	330	$	717	$	1,143	$	8	$	(110	)	$	2,088

March 31, 2019
Total assets	$	15,301	$	16,441	$	13,834	$	782	$	(388	)	$	45,970
December 31, 2018
Total assets	$	14,526	$	16,346	$	13,948	$	849	$	(367	)	$	45,302

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,
	2019			2018
	(Millions)
Modified EBITDA by segment:
Northeast G&P	$	299		$	250
Atlantic-Gulf	560			451
West	332			413
Other	(4		)	6
	1,187			1,120
Accretion expense associated with asset retirement obligations for nonregulated operations	(9		)	(8		)
Depreciation and amortization expenses	(416		)	(431		)
Equity earnings (losses)	80			82
Impairment of equity-method investments	(74		)	—
Other investing income (loss) – net	1			4
Proportional Modified EBITDA of equity-method investments	(190		)	(169		)
Interest expense	(296		)	(273		)
(Provision) benefit for income taxes	(69		)	(55		)
Net income (loss)	$	214		$	270