Segment Disclosures

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Disclosures

Note 12 – Segment Disclosures

Our reportable segments are Central, Northeast G&P, Atlantic-Gulf, West, and NGL & Petchem Services. (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.

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 Totalrevenues as reported in the Consolidated Statement of Comprehensive Income (Loss).

	Central		Northeast G&P		Atlantic- Gulf		West		NGL & Petchem Services		Eliminations			Total
	(Millions)
Three Months Ended September 30, 2016
Segment revenues:
Service revenues
External	$	252	$	196	$	503	$	256	$	45	$	—		$	1,252
Internal	3		11		6		—		—		(20		)	—
Total service revenues	255		207		509		256		45		(20		)	1,252
Product sales
External	—		36		77		4		538		—			655
Internal	—		7		59		66		50		(182		)	—
Total product sales	—		43		136		70		588		(182		)	655
Total revenues	$	255	$	250	$	645	$	326	$	633	$	(202	)	$	1,907
Three Months Ended September 30, 2015
Segment revenues:
Service revenues
External	$	264	$	192	$	476	$	263	$	37	$	—		$	1,232
Internal	6		2		1		—		—		(9		)	—
Total service revenues	270		194		477		263		37		(9		)	1,232
Product sales
External	—		21		77		11		451		—			560
Internal	—		6		41		51		41		(139		)	—
Total product sales	—		27		118		62		492		(139		)	560
Total revenues	$	270	$	221	$	595	$	325	$	529	$	(148	)	$	1,792
Nine Months Ended September 30, 2016
Segment revenues:
Service revenues
External	$	759	$	603	$	1,415	$	774	$	137	$	—		$	3,688
Internal	9		23		8		—		—		(40		)	—
Total service revenues	768		626		1,423		774		137		(40		)	3,688
Product sales
External	—		82		177		12		1,342		—			1,613
Internal	—		18		133		188		125		(464		)	—
Total product sales	—		100		310		200		1,467		(464		)	1,613
Total revenues	$	768	$	726	$	1,733	$	974	$	1,604	$	(504	)	$	5,301
Nine Months Ended September 30, 2015
Segment revenues:
Service revenues
External	$	769	$	602	$	1,398	$	783	$	103	$	—		$	3,655
Internal	18		4		3		—		—		(25		)	—
Total service revenues	787		606		1,401		783		103		(25		)	3,655
Product sales
External	—		88		228		27		1,335		—			1,678
Internal	—		12		136		167		113		(428		)	—
Total product sales	—		100		364		194		1,448		(428		)	1,678
Total revenues	$	787	$	706	$	1,765	$	977	$	1,551	$	(453	)	$	5,333

The following table reflects the reconciliation of Modified EBITDA to Net income (loss) as reported in the Consolidated Statement of Comprehensive Income (Loss).

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
	(Millions)
Modified EBITDA by segment:
Central	$	176		$	163		$	467		$	456
Northeast G&P	208			189			638			557
Atlantic-Gulf	416			414			1,149			1,138
West	166			169			479			480
NGL & Petchem Services	104			85			(104		)	249
Other	—			1			—			11
	1,070			1,021			2,629			2,891
Accretion expense associated with asset retirement obligations for nonregulated operations	(8		)	(5		)	(24		)	(21		)
Depreciation and amortization expenses	(426		)	(423		)	(1,293		)	(1,261		)
Equity earnings (losses)	104			92			302			236
Impairment of equity-method investments	—			(461		)	(112		)	(461		)
Other investing income (loss) – net	28			—			29			1
Proportional Modified EBITDA of equity-method investments	(194		)	(185		)	(574		)	(504		)
Interest expense	(229		)	(205		)	(689		)	(600		)
(Provision) benefit for income taxes	6			(1		)	85			(4		)
Net income (loss)	$	351		$	(167	)	$	353		$	277

The following table reflects Total assets by reportable segment.  

	Total Assets
	September 30,   2016			December 31,   2015
	(Millions)
Central	$	13,234		$	13,914
Northeast G&P	13,646			13,827
Atlantic-Gulf	13,416			12,171
West	4,733			5,035
NGL & Petchem Services	2,493			3,306
Other corporate assets	141			350
Eliminations (1)	(1,125		)	(733		)
Total	$	46,538		$	47,870

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