Segment Disclosures

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Disclosures [Text Block]

Note 20 – Segment Disclosures

Our reportable segments are Atlantic-Gulf, Northeast G&P, 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:

◦Income (loss) from discontinued operations;

◦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 Operations and Other financial information:

	Atlantic-Gulf		Northeast G&P		West		Other		Eliminations			Total
	(Millions)
2019
Segment revenues:
Service revenues
External	$	2,812	$	1,291	$	1,813	$	17	$	—		$	5,933
Internal	49		47		—		13		(109		)	—
Total service revenues	2,861		1,338		1,813		30		(109		)	5,933
Total service revenues – commodity consideration	41		12		150		—		—			203
Product sales
External	217		115		1,733		—		—			2,065
Internal	71		35		64		—		(170		)	—
Total product sales	288		150		1,797		—		(170		)	2,065
Total revenues	$	3,190	$	1,500	$	3,760	$	30	$	(279	)	$	8,201
Other financial information:
Additions to long-lived assets	$	1,179	$	1,245	$	466	$	21	$	—		$	2,911
Proportional Modified EBITDA of equity-method investments	177		454		115		—		—			746
2018
Segment revenues:
Service revenues
External	$	2,460	$	935	$	2,085	$	22	$	—		$	5,502
Internal	49		41		—		12		(102		)	—
Total service revenues	2,509		976		2,085		34		(102		)	5,502
Total service revenues – commodity consideration	59		20		321		—		—			400
Product sales
External	174		245		2,365		—		—			2,784
Internal	261		42		83		—		(386		)	—
Total product sales	435		287		2,448		—		(386		)	2,784
Total revenues	$	3,003	$	1,283	$	4,854	$	34	$	(488	)	$	8,686
Other financial information:
Additions to long-lived assets	$	2,297	$	477	$	361	$	36	$	—		$	3,171
Proportional Modified EBITDA of equity-method investments	183		493		94		—		—			770
2017
Segment revenues:
Service revenues
External	$	2,202	$	837	$	2,246	$	27	$	—		$	5,312
Internal	37		35		—		11		(83		)	—
Total service revenues	2,239		872		2,246		38		(83		)	5,312
Product sales
External	257		264		1,840		358		—			2,719
Internal	227		27		173		8		(435		)	—
Total product sales	484		291		2,013		366		(435		)	2,719
Total revenues	$	2,723	$	1,163	$	4,259	$	404	$	(518	)	$	8,031
Other financial information:
Additions to long-lived assets	$	2,001	$	460	$	321	$	32	$	—		$	2,814
Proportional Modified EBITDA of equity-method investments	264		452		79		—		—			795

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

	Year Ended December 31,
	2019			2018			2017
	(Millions)
Modified EBITDA by segment:
Atlantic-Gulf	$	1,895		$	2,023		$	1,238
Northeast G&P	1,314			1,086			819
West	1,232			308			412
Other	6			(29		)	997
	4,447			3,388			3,466
Accretion expense associated with asset retirement obligations for nonregulated operations	(33		)	(33		)	(33		)
Depreciation and amortization expenses	(1,714		)	(1,725		)	(1,736		)
Equity earnings (losses)	375			396			434
Other investing income (loss) – net	(79		)	187			282
Proportional Modified EBITDA of equity-method investments	(746		)	(770		)	(795		)
Interest expense	(1,186		)	(1,112		)	(1,083		)
(Provision) benefit for income taxes	(335		)	(138		)	1,974
Income (loss) from discontinued operations	(15		)	—			—
Net income (loss)	$	714		$	193		$	2,509

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

	Total Assets						Equity-Method Investments
	December 31, 2019			December 31, 2018			December 31, 2019		December 31, 2018
	(Millions)
Atlantic-Gulf	$	16,575		$	16,346		$	741	$	776
Northeast G&P	15,399			14,526			3,973		5,319
West	13,487			13,948			1,521		1,726
Other	1,151			849			—		—
Eliminations (1)	(572		)	(367		)	—		—
Total	$	46,040		$	45,302		$	6,235	$	7,821

______________

(1)

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