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Segment Disclosures
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Disclosures [Text Block]
Note 19 – Segment Disclosures
Williams
Williams’ reportable segments are Transmission & Gulf of America, Northeast G&P, West, and Gas & NGL Marketing Services. 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
Williams’ chief operating decision maker is the Chief Executive Officer. Williams' chief operating decision maker primarily utilizes Modified EBITDA, its measure of segment profit and loss, to evaluate performance and make decisions on capital allocation and human resources. Such evaluation includes periodic comparisons of actual performance versus historical and budget, as well as projections of Modified EBITDA.
Williams defines Modified EBITDA as follows:
•Income (loss) before income taxes from continuing operations before:
◦Depreciation and amortization expenses;
◦Equity earnings (losses);
◦Other investing income (loss) – net;
◦Interest expense; and
◦Accretion expense associated with AROs for nonregulated operations.
•This measure is further adjusted to include Williams’ proportionate share (based on ownership interest) of Modified EBITDA from its equity-method investments calculated consistently with the definition described above.
Significant noncash items which are components of Modified EBITDA may include net unrealized gain (loss) from commodity derivatives within Total revenues, net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses for Williams’ Gas & NGL Marketing Services segment, charges associated with lower of cost or net realizable value adjustments to the Gas & NGL Marketing Services segment inventory within Product sales (for natural gas marketing inventory as these sales are presented net of the related costs) and Product costs (for NGL marketing inventory), and impairments of certain assets within Other (income) expense – net within Operating income (loss).
Intersegment Service revenues primarily represent transportation services provided to Williams’ marketing business and gathering services provided to its oil and gas properties. Intersegment Product sales primarily represent the sale of natural gas and NGLs from Williams’ natural gas processing plants and its oil and gas properties to its marketing business.
Segment assets include Investments, Property, plant, and equipment – net, and Intangible assets – net of accumulated amortization.
The following tables present revenues, Modified EBITDA, significant expenses, and certain segment assets measures, as well as reconciliations to the consolidated totals:
Transmission & Gulf of AmericaNortheast G&PWestGas & NGL Marketing Services (1)Total
(Millions)
2024
Segment revenues:
Service revenues
External$4,157 $1,900 $1,558 $— $7,615 
Internal89 13 160 — 262 
Total service revenues4,246 1,913 1,718 — 7,877 
Total service revenues – commodity consideration54 2 78 — 134 
Product sales
External144 24 178 2,500 2,846 
Internal184 86 691 (448)513 
Total product sales328 110 869 2,052 3,359 
Net gain (loss) from commodity derivatives
Realized— — 4 72 76 
Unrealized— — — (335)(335)
Total net gain (loss) from commodity derivatives (2)— — 4 (263)(259)
Total revenues of reportable segments$4,628 $2,025 $2,669 $1,789 $11,111 
Reconciliation of revenues:
Revenues from upstream operations, corporate, and other business activities470 
Net unrealized gain (loss) from commodity derivatives for upstream operations
(26)
Eliminations(1,052)
Total consolidated revenues$10,503 
Segment costs and expenses and Proportional Modified EBITDA of equity-method investments:
Product costs and net realized processing commodity expenses(329)(88)(844)(1,799)
Net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses— — — (6)
Operating and administrative expenses (3)
(1,104)(441)(591)(108)
Recoverable power, transportation, and storage costs (4)
(250)(143)(49)— 
Other segment income (expenses) - net (5)
155 3 (5)— 
Proportional Modified EBITDA of equity-method investments173 602 132 — 
Modified EBITDA of reportable segments$3,273 $1,958 $1,312 $(124)$6,419 
Modified EBITDA from upstream operations, corporate, and other business activities237 
Total consolidated Modified EBITDA$6,656 
Reconciliation of Modified EBITDA:
Depreciation and amortization expenses$(2,219)
Equity earnings (losses)560 
Other investing income (loss) - net343 
Interest expense(1,364)
Accretion expense associated with AROs for nonregulated operations
(81)
Proportional Modified EBITDA of equity-method investments(909)
Income (loss) before income taxes from continuing operations$2,986 
Equity-method investments by reportable segment$272 $3,346 $476 $— $4,094 
Other equity-method investments
13 
Total equity-method investments$4,107 
Segment assets$23,149 $12,918 $12,144 $46 $48,257 
Total current assets2,661 
Regulatory assets, deferred charges, and noncurrent assets1,830 
Assets of upstream operations, corporate, and other business activities1,784 
Total assets$54,532 
Additions to long-lived segment assets
$4,399 $210 $529 $2 $5,140 
Additions to long-lived assets of upstream operations, corporate, and other business activities
458 
Total additions to long-lived assets
$5,598 
Transmission & Gulf of AmericaNortheast G&PWestGas & NGL Marketing Services (1)Total
(Millions)
2023
Segment revenues:
Service revenues
External$3,766 $1,868 $1,376 $1 $7,011 
Internal92 28 126 — 246 
Total service revenues3,858 1,896 1,502 1 7,257 
Total service revenues – commodity consideration38 5 103 — 146 
Product sales
External146 34 80 2,382 2,642 
Internal106 98 361 (322)243 
Total product sales252 132 441 2,060 2,885 
Net gain (loss) from commodity derivatives
Realized2 — 89 115 206 
Unrealized— — — 702 702 
Total net gain (loss) from commodity derivatives (2)2 — 89 817 908 
Total revenues of reportable segments
$4,150 $2,033 $2,135 $2,878 $11,196 
Reconciliation of revenues:
Revenues from upstream operations, corporate, and other business activities505 
Net unrealized gain (loss) from commodity derivatives for upstream operations
1 
Eliminations(795)
Total consolidated revenues$10,907 
Segment costs and expenses and Proportional Modified EBITDA of equity-method investments:
Product costs and net realized processing commodity expenses(259)(125)(517)(1,786)
Net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses— — — (43)
Operating and administrative expenses (3)
(1,034)(424)(502)(98)
Recoverable power, transportation, and storage costs (4)
(241)(132)(37)— 
Other segment income (expenses) - net (5)
118 (10)(3)(1)
Gain on sale of business (6)
129 — — — 
Proportional Modified EBITDA of equity-method investments205 574 162 — 
Modified EBITDA of reportable segments$3,068 $1,916 $1,238 $950 $7,172 
Modified EBITDA from upstream operations, corporate, and other business activities307 
Unallocated Net gain from Energy Transfer litigation judgment (7)
534 
Total consolidated Modified EBITDA$8,013 
Reconciliation of Modified EBITDA:
Depreciation and amortization expenses$(2,071)
Equity earnings (losses)589 
Other investing income (loss) - net108 
Interest expense(1,236)
Accretion expense associated with AROs for nonregulated operations
(59)
Proportional Modified EBITDA of equity-method investments(939)
Income (loss) before income taxes from continuing operations$4,405 
Equity-method investments by reportable segment$652 $3,477 $477 $— $4,606 
Other equity-method investments
8 
Total equity-method investments$4,614 
Segment assets$19,705 $13,319 $12,188 $77 $45,289 
Total current assets4,513 
Regulatory assets, deferred charges, and noncurrent assets1,573 
Assets of upstream operations, corporate, and other business activities1,252 
Total assets$52,627 
Additions to long-lived segment assets
$2,501 $340 $1,186 $7 $4,034 
Additions to long-lived assets of upstream operations, corporate, and other business activities
279 
Total additions to long-lived assets
$4,313 
Transmission & Gulf of AmericaNortheast G&PWestGas & NGL Marketing Services (1)Total
(Millions)
2022
Segment revenues:
Service revenues
External$3,461 $1,613 $1,443 $3 $6,520 
Internal118 41 99 — 258 
Total service revenues3,579 1,654 1,542 3 6,778 
Total service revenues – commodity consideration64 14 182 — 260 
Product sales
External228 28 145 4,052 4,453 
Internal176 106 696 (518)460 
Total product sales404 134 841 3,534 4,913 
Net gain (loss) from commodity derivatives
Realized— — (4)17 13 
Unrealized— — — (321)(321)
Total net gain (loss) from commodity derivatives (2)— — (4)(304)(308)
Total revenues of reportable segments
$4,047 $1,802 $2,561 $3,233 $11,643 
Reconciliation of revenues:
Revenues from upstream operations, corporate, and other business activities626 
Net unrealized gain (loss) from commodity derivatives for upstream operations
25 
Eliminations(1,329)
Total consolidated revenues$10,965 
Segment costs and expenses and Proportional Modified EBITDA of equity-method investments:
Product costs and net realized processing commodity expenses(425)(138)(918)(3,228)
Net unrealized gain (loss) from commodity derivatives within Net processing commodity expenses— — — 47 
Operating and administrative expenses (3)
(906)(384)(507)(96)
Recoverable power, transportation, and storage costs (4)
(254)(132)(43)— 
Other segment income (expenses) - net (5)
19 (6)(14)4 
Proportional Modified EBITDA of equity-method investments193 654 132 — 
Modified EBITDA of reportable segments$2,674 $1,796 $1,211 $(40)$5,641 
Modified EBITDA from upstream operations, corporate, and other business activities434 
Total consolidated Modified EBITDA$6,075 
Reconciliation of Modified EBITDA:
Depreciation and amortization expenses$(2,009)
Equity earnings (losses)637 
Other investing income (loss) - net16 
Interest expense(1,147)
Accretion expense associated with AROs for nonregulated operations
(51)
Proportional Modified EBITDA of equity-method investments(979)
Income (loss) before income taxes from continuing operations$2,542 
Equity-method investments by reportable segment$629 $3,566 $843 $— $5,038 
Other equity-method investments
10 
Total equity-method investments$5,048 
Segment assets$17,795 $13,539 $10,710 $130 $42,174 
Total current assets3,797 
Regulatory assets, deferred charges, and noncurrent assets1,319 
Assets of upstream operations, corporate, and other business activities1,143 
Total assets$48,433 
Additions to long-lived segment assets
$1,420 $261 $1,507 $4 $3,192 
Additions to long-lived assets of upstream operations, corporate, and other business activities
406 
Total additions to long-lived assets
$3,598 
_______________________
(1)    As Williams is acting as agent for natural gas marketing customers or engages in energy trading activities, the resulting revenues are presented net of the related costs of those activities.
(2)    Williams records transactions that qualify as commodity derivatives at fair value with changes in fair value recognized in earnings in the period of change and characterized as unrealized gains or losses. Gains and losses from commodity derivatives held for energy trading purposes are presented on a net basis in revenue.
(3)     Segment operating and administrative expenses primarily include payroll, maintenance and operating costs and taxes, and general and administrative expenses, including acquisition and transition-related expenses. It also includes project execution, information technology, finance and accounting, real estate and aviation, central engineering services, safety and operational discipline, supply chain and digital transformation, corporate strategic development, human resources, legal and government affairs, and executive and audit support services costs which are centrally managed and allocated to segments.
(4)     Recoverable power, transportation and storage costs are charges incurred which are reimbursable pursuant to FERC stipulations or customer contracts.
(5)    Other segment income (expenses) primarily includes equity AFUDC and regulatory credits and charges related to Williams’ regulated operations.
(6)    Gain on sale of business reflects a gain recognized on the sale of certain liquids pipelines in the Gulf Coast region in September 2023 (see Note 3 – Acquisitions and Divestitures).
(7)    Net gain from Energy Transfer litigation judgment resulted from a favorable ruling in November 2023 (see Note 1 – General, Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies).
Transco
Transco manages and evaluates its business as a single reportable segment. Transco’s chief operating decision maker is the Senior Vice President, Transmission & Gulf of America. Transco’s chief operating decision maker determines resource allocation, measures and evaluates segment operating performance based upon Net income (loss) as reported on the Statement of Net Income.
Significant expenses within net income, include Operating and maintenance expenses and Selling, general, and administrative expenses, which are each separately presented on Transco’s Statement of Net Income. Other segment items within net income include natural gas product costs, depreciation and amortization expense, taxes, other than income taxes, interest expense, interest income, other income (expense) – net, and AFUDC.
Transco’s segment assets include Property, plant, and equipment – net as presented on the Balance Sheet.
NWP
NWP manages and evaluates its business as a single reportable segment. NWP’s chief operating decision maker is the Senior Vice President, Transmission & Gulf of America. NWP’s chief operating decision maker determines resource allocation, measures and evaluates segment operating performance based upon Net income (loss) as reported on the Statement of Net Income.
Significant expenses within net income, include Operating and maintenance expenses and Selling, general, and administrative expenses, which are each separately presented on NWP’s Statement of Net Income. Other segment items within net income include depreciation and amortization expense, taxes, other than income taxes, interest expense, other income (expense) – net, and AFUDC.
NWP’s segment assets include Property, plant, and equipment – net as presented on the Balance Sheet.