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Segment Information
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] Segment Information

MPLX’s chief operating decision maker is the chief executive officer (“CEO”) of its general partner. The CEO reviews MPLX’s discrete financial information, makes operating decisions, assesses financial performance and allocates resources on a type of service basis. MPLX has two reportable segments: L&S and G&P. Each of these segments is organized and managed based upon the nature of the products and services it offers.

•
L&S – transports, stores, distributes and markets crude oil, asphalt, refined petroleum products and water. Also includes an inland marine business, terminals, rail facilities, storage caverns and refining logistics.
•
G&P – gathers, processes and transports natural gas; and gathers, transports, fractionates, stores and markets NGLs.
Our CEO evaluates the performance of our segments using Segment Adjusted EBITDA. Amounts included in net income and excluded from Segment Adjusted EBITDA include: (i) depreciation and amortization; (ii) provision/(benefit) for income taxes; (iii) amortization of deferred financing costs; (iv) extinguishment of debt; (v) non-cash equity-based compensation; (vi) impairment expense; (vii) net interest and other financial costs; (viii) income/(loss) from equity method investments; (ix) distributions and adjustments related to equity method investments; (x) unrealized derivative gains/(losses); (xi) acquisition costs; (xii) noncontrolling interest; and (xiii) other adjustments as deemed necessary. These items are either: (i) believed to be non-recurring in nature; (ii) not believed to be allocable or controlled by the segment; or (iii) are not tied to the operational performance of the segment.

The tables below present information about revenues and other income, capital expenditures and investments in unconsolidated affiliates as well as total assets for our reportable segments:
 
Three Months Ended March 31,
(In millions)
2020
 
2019(1)
L&S
 
 
 
Service revenue
$
1,004

 
$
889

Rental income
242

 
335

Product related revenue
19

 
15

Income from equity method investments
50

 
45

Other income
51

 
12

Total segment revenues and other income(2)
1,366

 
1,296

Segment Adjusted EBITDA(3)
872

 
559

Capital expenditures
184

 
198

Investments in unconsolidated affiliates
54

 
7

G&P
 
 
 
Service revenue
536

 
528

Rental income
88

 
89

Product related revenue
222

 
276

(Loss)/income from equity method investments
(1,234
)
 
32

Other income
14

 
14

Total segment revenues and other (loss)/income(2)
(374
)
 
939

Segment Adjusted EBITDA(3)
422

 
371

Capital expenditures
134

 
306

Investments in unconsolidated affiliates
$
37

 
$
128


(1)
Financial information for the first quarter of 2019 has been retrospectively adjusted for the acquisition of ANDX. See Notes 1 and 3.
(2)
Within the total segment revenues and other income amounts presented above, third party revenues for the L&S segment were $158 million and $153 million for the three months ended March 31, 2020 and 2019, respectively. Third party losses for the G&P segment were $425 million for the three months ended March 31, 2020 and third party revenues were $887 million for the three months ended March 31, 2019.
(3)
See below for the reconciliation from Segment Adjusted EBITDA to net income.

(In millions)
March 31, 2020
 
December 31, 2019
Segment assets
 
 
 
Cash and cash equivalents
$
57

 
$
15

L&S
20,891

 
20,810

G&P
16,058

 
19,605

Total assets
$
37,006

 
$
40,430



The table below provides a reconciliation between net (loss)/income and Segment Adjusted EBITDA.

 
Three Months Ended March 31,
(In millions)
2020
 
2019(1)
Reconciliation to Net (loss)/income:
 
 
 
L&S Segment Adjusted EBITDA
$
872

 
$
559

G&P Segment Adjusted EBITDA
422

 
371

Total reportable segments
1,294

 
930

Depreciation and amortization(2)
(325
)
 
(301
)
Benefit for income taxes
—

 
1

Amortization of deferred financing costs
(14
)
 
(7
)
Non-cash equity-based compensation
(5
)
 
(7
)
Impairment expense
(2,165
)
 
—

Net interest and other financial costs
(216
)
 
(217
)
(Loss)/income from equity method investments
(1,184
)
 
77

Distributions/adjustments related to equity method investments
(124
)
 
(122
)
Unrealized derivative gains/(losses)(3)
15

 
(4
)
Acquisition costs
—

 
(1
)
Other
(1
)
 
—

Adjusted EBITDA attributable to noncontrolling interests
9

 
7

Adjusted EBITDA attributable to Predecessor(4)
—

 
333

Net (loss)/income
$
(2,716
)
 
$
689


(1)
Financial information for the first quarter of 2019 has been retrospectively adjusted for the acquisition of ANDX. See Notes 1 and 3.
(2)
Depreciation and amortization attributable to L&S was $138 million and $126 million for the three months ended March 31, 2020 and 2019, respectively. Depreciation and amortization attributable to G&P was $187 million and $175 million for the three months ended March 31, 2020 and 2019, respectively.
(3)
MPLX makes a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is outstanding, changes in the fair value of the derivative are recorded as an unrealized gain or loss. When a derivative contract matures or is settled, the previously recorded unrealized gain or loss is reversed and the realized gain or loss of the contract is recorded.
(4)
The adjusted EBITDA adjustments related to Predecessor are excluded from adjusted EBITDA attributable to MPLX LP prior to the Merger.