Segment Disclosures

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Disclosures [Text Block]

Note 14 – Segment Disclosures

Our reportable segments are Transmission & Gulf of Mexico, Northeast G&P, 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. 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;

◦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 Income and Total assets by reportable segment.

	Transmission & Gulf of Mexico		Northeast G&P		West		Other		Eliminations		Total
	(Millions)
Three Months Ended September 30, 2020
Segment revenues:
Service revenues
External	$	797	$	366	$	311	$	5	$	—	$	1,479
Internal	10		13		—		3		(26)		—
Total service revenues	807		379		311		8		(26)		1,479
Total service revenues – commodity consideration	6		2		32		—		—		40
Product sales
External	34		2		378		—		—		414
Internal	12		10		13		—		(35)		—
Total product sales	46		12		391		—		(35)		414
Total revenues	$	859	$	393	$	734	$	8	$	(61)	$	1,933
Three Months Ended September 30, 2019
Segment revenues:
Service revenues
External	$	829	$	340	$	322	$	4	$	—	$	1,495
Internal	13		13		—		3		(29)		—
Total service revenues	842		353		322		7		(29)		1,495
Total service revenues – commodity consideration	7		1		30		—		—		38
Product sales
External	66		22		378		—		—		466
Internal	10		8		11		—		(29)		—
Total product sales	76		30		389		—		(29)		466
Total revenues	$	925	$	384	$	741	$	7	$	(58)	$	1,999
Nine Months Ended September 30, 2020
Segment revenues:
Service revenues
External	$	2,394	$	1,052	$	938	$	15	$	—	$	4,399
Internal	37		39		—		10		(86)		—
Total service revenues	2,431		1,091		938		25		(86)		4,399
Total service revenues – commodity consideration	14		5		74		—		—		93
Product sales
External	104		17		1,014		—		—		1,135
Internal	30		25		39		—		(94)		—
Total product sales	134		42		1,053		—		(94)		1,135
Total revenues	$	2,579	$	1,138	$	2,065	$	25	$	(180)	$	5,627

	Transmission & Gulf of Mexico		Northeast G&P		West		Other		Eliminations		Total
	(Millions)
Nine Months Ended September 30, 2019
Segment revenues:
Service revenues
External	$	2,437	$	925	$	1,049	$	13	$	—	$	4,424
Internal	36		34		—		9		(79)		—
Total service revenues	2,473		959		1,049		22		(79)		4,424
Total service revenues – commodity consideration	33		9		116		—		—		158
Product sales
External	169		87		1,256		—		—		1,512
Internal	57		27		46		—		(130)		—
Total product sales	226		114		1,302		—		(130)		1,512
Total revenues	$	2,732	$	1,082	$	2,467	$	22	$	(209)	$	6,094
September 30, 2020
Total assets	$	19,246	$	14,526	$	10,745	$	756	$	(953)	$	44,320
December 31, 2019
Total assets	$	18,796	$	15,399	$	11,265	$	1,151	$	(571)	$	46,040

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,
	2020		2019		2020		2019
	(Millions)
Modified EBITDA by segment:
Transmission & Gulf of Mexico	$	616	$	665	$	1,893	$	1,891
Northeast G&P	387		345		1,126		947
West	247		245		715		713
Other	(7)		(2)		8		1
	1,243		1,253		3,742		3,552
Accretion expense associated with asset retirement obligations for nonregulated operations	(10)		(8)		(27)		(25)
Depreciation and amortization expenses	(426)		(435)		(1,285)		(1,275)
Impairment of goodwill	—		—		(187)		—
Equity earnings (losses)	106		93		236		260
Impairment of equity-method investments	—		(114)		(938)		(186)
Other investing income (loss) – net	2		7		6		132
Proportional Modified EBITDA of equity-method investments	(189)		(181)		(573)		(546)
Interest expense	(292)		(296)		(882)		(888)
(Provision) benefit for income taxes	(111)		(77)		(24)		(244)
Net income (loss)	$	323	$	242	$	68	$	780