Segment Disclosures

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Disclosures [Text Block]

Note 15 – 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);

◦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 September 30, 2019
Segment revenues:
Service revenues
External	$	340	$	718	$	433	$	4	$	—		$	1,495
Internal	13		13		—		3		(29		)	—
Total service revenues	353		731		433		7		(29		)	1,495
Total service revenues – commodity consideration	1		7		30		—		—			38
Product sales
External	22		66		378		—		—			466
Internal	8		10		11		—		(29		)	—
Total product sales	30		76		389		—		(29		)	466
Total revenues	$	384	$	814	$	852	$	7	$	(58	)	$	1,999
Three Months Ended September 30, 2018
Segment revenues:
Service revenues
External	$	236	$	595	$	533	$	7	$	—		$	1,371
Internal	11		12		—		3		(26		)	—
Total service revenues	247		607		533		10		(26		)	1,371
Total service revenues – commodity consideration	6		18		97		—		—			121
Product sales
External	59		46		706		—		—			811
Internal	10		85		26		—		(121		)	—
Total product sales	69		131		732		—		(121		)	811
Total revenues	$	322	$	756	$	1,362	$	10	$	(147	)	$	2,303
Nine Months Ended September 30, 2019
Segment revenues:
Service revenues
External	$	925	$	2,102	$	1,384	$	13	$	—		$	4,424
Internal	34		36		—		9		(79		)	—
Total service revenues	959		2,138		1,384		22		(79		)	4,424
Total service revenues – commodity consideration	9		33		116		—		—			158
Product sales
External	87		169		1,256		—		—			1,512
Internal	27		57		46		—		(130		)	—
Total product sales	114		226		1,302		—		(130		)	1,512
Total revenues	$	1,082	$	2,397	$	2,802	$	22	$	(209	)	$	6,094

	Northeast G&P		Atlantic-Gulf		West		Other		Eliminations			Total
	(Millions)
Nine Months Ended September 30, 2018
Segment revenues:
Service revenues
External	$	677	$	1,769	$	1,599	$	17	$	—		$	4,062
Internal	30		37		—		9		(76		)	—
Total service revenues	707		1,806		1,599		26		(76		)	4,062
Total service revenues – commodity consideration	14		45		257		—		—			316
Product sales
External	214		131		1,759		—		—			2,104
Internal	28		198		63		—		(289		)	—
Total product sales	242		329		1,822		—		(289		)	2,104
Total revenues	$	963	$	2,180	$	3,678	$	26	$	(365	)	$	6,482
September 30, 2019
Total assets	$	15,445	$	16,888	$	13,550	$	928	$	(530	)	$	46,281
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   September 30,						Nine Months Ended   September 30,
	2019			2018			2019			2018
	(Millions)
Modified EBITDA by segment:
Northeast G&P	$	345		$	281		$	947		$	786
Atlantic-Gulf	599			492			1,683			1,418
West	311			412			921			1,214
Other	(2		)	6			1			(49		)
	1,253			1,191			3,552			3,369
Accretion expense associated with asset retirement obligations for nonregulated operations	(8		)	(8		)	(25		)	(26		)
Depreciation and amortization expenses	(435		)	(425		)	(1,275		)	(1,290		)
Equity earnings (losses)	93			105			260			279
Other investing income (loss) – net	(107		)	2			(54		)	74
Proportional Modified EBITDA of equity-method investments	(181		)	(205		)	(546		)	(552		)
Interest expense	(296		)	(270		)	(888		)	(818		)
(Provision) benefit for income taxes	(77		)	(190		)	(244		)	(297		)
Net income (loss)	$	242		$	200		$	780		$	739