Note 10 – Segment Disclosures

Our reportable segments are Northeast G&P, Atlantic-Gulf, West, and NGL & Petchem Services. (See Note 1 – General, Description of Business, and Basis of Presentation.) Certain other corporate activities are included in Other.

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:


◦	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 Comprehensive Income.



	Northeast G&P		Atlantic- Gulf		West		NGL & Petchem Services		Eliminations			Total
	(Millions)
Three Months Ended March 31, 2018
Segment revenues:
Service revenues
External	$	219	$	596	$	531	$	—	$	—		$	1,346
Internal	9		13		—		—		(22		)	—
Total service revenues	228		609		531		—		(22		)	1,346
Total service revenues – commodity consideration (external only)	4		15		82		—		—			101
Product sales
External	89		35		512		—		—			636
Internal	9		58		18		—		(85		)	—
Total product sales	98		93		530		—		(85		)	636
Total revenues	$	330	$	717	$	1,143	$	—	$	(107	)	$	2,083

Three Months Ended March 31, 2017
Segment revenues:
Service revenues
External	$	208	$	527	$	518	$	3	$	—		$	1,256
Internal	9		9		—		—		(18		)	—
Total service revenues	217		536		518		3		(18		)	1,256
Product sales
External	60		69		405		193		—			727
Internal	8		65		51		6		(130		)	—
Total product sales	68		134		456		199		(130		)	727
Total revenues	$	285	$	670	$	974	$	202	$	(148	)	$	1,983

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



	Three Months Ended March 31,
	2018			2017
	(Millions)
Modified EBITDA by segment:
Northeast G&P	$	250		$	226
Atlantic-Gulf	451			450
West	413			385
NGL & Petchem Services	—			51
Other	(7		)	20
	1,107			1,132
Accretion expense associated with asset retirement obligations for nonregulated operations	(8		)	(6		)
Depreciation and amortization expenses	(423		)	(433		)
Equity earnings (losses)	82			107
Other investing income (loss) – net	4			271
Proportional Modified EBITDA of equity-method investments	(169		)	(194		)
Interest expense	(209		)	(214		)
(Provision) benefit for income taxes	—			(3		)
Net income (loss)	$	384		$	660

The following table reflects Total assets by reportable segment.



	Total Assets
	March 31, 2018			December 31, 2017
	(Millions)
Northeast G&P	$	14,388		$	14,397
Atlantic-Gulf	16,806			15,230
West	15,802			16,144
NGL & Petchem Services	2			3
Other (1)	1,366			936
Eliminations (2)	(1,789		)	(807		)
Total	$	46,575		$	45,903


(1)	Increase in Other due primarily to increased cash balance.


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