Segment Disclosures

6 Months Ended

Jun. 30, 2011

Segment Disclosures [Abstract]

Segment Disclosures

Note 13. Segment Disclosures

     Our reporting segments are Williams Partners, Exploration & Production and Midstream Canada & Olefins. All remaining business activities are included in Other. (See Note 2.)

Performance Measurement

     We currently evaluate performance based upon segment profit (loss) from operations, which includes segment revenues from external and internal customers, segment costs and expenses, equity earnings (losses) and income (loss) from investments. Intersegment sales are generally accounted for at current market prices as if the sales were to unaffiliated third parties.

     The primary types of costs and operating expenses by segment can be generally summarized as follows:

• Williams Partners—commodity purchases (primarily for NGL and crude marketing, shrink and fuel), depreciation and operation and maintenance expenses;

• Exploration & Production—commodity purchases (primarily in support of commodity marketing and risk management activities), depletion, depreciation and amortization, lease and facility operating expenses and operating taxes;

• Midstream Canada & Olefins—commodity purchases (primarily for shrink, feedstock and NGL and olefin marketing activities), depreciation and operation and maintenance expenses.

     The following table reflects the reconciliation of segment revenues and segment profit (loss) to revenues and operating income (loss) as reported in the Consolidated Statement of Operations and total assets by reporting segment.

			Exploration		Midstream
	Williams		&		Canada &
	Partners		Production		Olefins		Other			Eliminations			Total
	(Millions)
Three months ended June 30, 2011
Segment revenues:
External	$	1,557	$	762	$	345	$	5		$	—		$	2,669
Internal		114		219		2		2			(337	)		—
Total revenues	$	1,671	$	981	$	347	$	7		$	(337	)	$	2,669
Segment profit (loss)	$	471	$	94	$	72	$	2		$	—		$	639
Less equity earnings (losses)		36		5		—		4			—			45
Segment operating income (loss)	$	435	$	89	$	72	$	(2	)	$	—			594
General corporate expenses														(47	)
Total operating income (loss)													$	547
Three months ended June 30, 2010
Segment revenues:
External	$	1,307	$	726	$	254	$	2		$	—		$	2,289
Internal		93		175		3		3			(274	)		—
Total revenues	$	1,400	$	901	$	257	$	5		$	(274	)	$	2,289
Segment profit (loss)	$	361	$	73	$	61	$	18		$	—		$	513
Less:
Equity earnings (losses)		27		5		—		7			—			39
Income (loss) from investments		—		—		—		13			—			13
Segment operating income (loss)	$	334	$	68	$	61	$	(2	)	$	—			461
General corporate expenses														(45	)
Total operating income (loss)													$	416
Six months ended June 30, 2011
Segment revenues:
External	$	3,035	$	1,541	$	661	$	7		$	—		$	5,244
Internal		215		429		2		6			(652	)		—
Total revenues	$	3,250	$	1,970	$	663	$	13		$	(652	)	$	5,244
Segment profit (loss)	$	908	$	145	$	146	$	22		$	—		$	1,221
Less:
Equity earnings (losses)		61		11		—		13			—			85
Income (loss) from investments		—		—		—		11			—			11
Segment operating income (loss)	$	847	$	134	$	146	$	(2	)	$	—			1,125
General corporate expenses														(98	)
Total operating income (loss)													$	1,027
Six months ended June 30, 2010
Segment revenues:
External	$	2,704	$	1,651	$	521	$	4		$	—		$	4,880
Internal		186		407		8		7			(608	)		—
Total revenues	$	2,890	$	2,058	$	529	$	11		$	(608	)	$	4,880
Segment profit (loss)	$	785	$	226	$	81	$	25		$	—		$	1,117
Less:
Equity earnings (losses)		53		10		—		16			—			79
Income (loss) from investments		—		—		—		13			—			13
Segment operating income (loss)	$	732	$	216	$	81	$	(4	)	$	—			1,025
General corporate expenses														(130	)
Total operating income (loss)													$	895
June 30, 2011
Total assets (a)	$	13,723	$	9,778	$	1,052	$	1,478		$	(326	)	$	25,705
December 31, 2010
Total assets	$	13,404	$	9,827	$	922	$	3,481		$	(2,662	)	$	24,972

(a) The decrease in Other and Eliminations is substantially due to the forgiveness of an intercompany long-term receivable.

     Total segment revenues for Exploration & Production include gas management revenues of $337 million and $365 million for the three months ended June 30, 2011 and 2010, respectively, and $742 million and $921 million for the six months ended June 30, 2011 and 2010, respectively. Gas management revenues include sales of natural gas in conjunction with marketing services provided to third parties and intercompany sales of fuel and shrink gas to the midstream businesses in Williams Partners. These revenues are substantially offset by similar amounts of gas management costs.