Note 11 – Segment Disclosures Our reportable segments are Access Midstream, Northeast G&P, Atlantic-Gulf, West, and NGL & Petchem Services. (See Note 1 – General, Description of Business, and Basis of Presentation.) Performance Measurement Prior to the first quarter of 2015, we evaluated segment operating performance based upon Segment profit (loss) from operations. Beginning in the first quarter of 2015, 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. Prior period segment disclosures have been recast to reflect this change. We define Modified EBITDA as follows: | | ◦ | Provision (benefit) for income taxes; |
| | ◦ | Interest incurred, net of interest capitalized; |
| | ◦ | Equity earnings (losses); |
| | ◦ | Other investing income (loss) – net; |
| | ◦ | 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 consistent 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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Access Midstream | | Northeast G&P |
| Atlantic- Gulf |
| West |
| NGL & Petchem Services |
| Eliminations |
| Total |
| | | (Millions) | Three months ended March 31, 2015 | Segment revenues: | | |
|
|
|
|
|
|
|
|
|
|
| Service revenues | | |
|
|
|
|
|
|
|
|
|
|
| External | $ | 299 |
| | $ | 142 |
| | $ | 457 |
| | $ | 262 |
| | $ | 32 |
| | $ | — |
| | $ | 1,192 |
| Internal | — |
| | — |
| | 1 |
| | — |
| | — |
| | (1 | ) | | — |
| Total service revenues | 299 |
| | 142 |
| | 458 |
| | 262 |
| | 32 |
| | (1 | ) | | 1,192 |
| Product sales | | | | | | | | | | | | | | External | — |
| | 37 |
| | 68 |
| | 8 |
| | 406 |
| | — |
| | 519 |
| Internal | — |
| | 1 |
| | 53 |
| | 56 |
| | 37 |
| | (147 | ) | | — |
| Total product sales | — |
| | 38 |
| | 121 |
| | 64 |
| | 443 |
| | (147 | ) | | 519 |
| Total revenues | $ | 299 |
| | $ | 180 |
| | $ | 579 |
| | $ | 326 |
| | $ | 475 |
| | $ | (148 | ) | | $ | 1,711 |
| | | | | | | | | | | | | | | Three months ended March 31, 2014 | | | | | Segment revenues: | | | | | | | | | | | | | | Service revenues | | | | | | | | | | | | | | External | $ | — |
| | $ | 99 |
| | $ | 378 |
| | $ | 256 |
| | $ | 30 |
| | $ | — |
| | $ | 763 |
| Internal | — |
| | — |
| | 1 |
| | — |
| | — |
| | (1 | ) | | — |
| Total service revenues | — |
| | 99 |
| | 379 |
| | 256 |
| | 30 |
| | (1 | ) | | 763 |
| Product sales | | | | | | | | | | | | | | External | — |
| | 60 |
| | 152 |
| | 19 |
| | 699 |
| | — |
| | 930 |
| Internal | — |
| | — |
| | 69 |
| | 126 |
| | 76 |
| | (271 | ) | | — |
| Total product sales | — |
| | 60 |
| | 221 |
| | 145 |
| | 775 |
| | (271 | ) | | 930 |
| Total revenues | $ | — |
| | $ | 159 |
| | $ | 600 |
| | $ | 401 |
| | $ | 805 |
| | $ | (272 | ) | | $ | 1,693 |
|
The following table reflects the reconciliation of Modified EBITDA to Net income as reported in the Consolidated Statement of Comprehensive Income. | | | | | | | | | | | | | | | | | | | | Three months ended March 31, | | | | | | | | 2015 | | 2014 | | | | | | (Millions) | Modified EBITDA by segment: | | | | Access Midstream | $ | 228 |
| | $ | — |
| Northeast G&P | 90 |
| | 48 |
| Atlantic-Gulf | 335 |
| | 266 |
| West | 161 |
| | 212 |
| NGL & Petchem Services | 6 |
| | 182 |
| Other | (3 | ) | | — |
| | 817 |
| | 708 |
| Accretion expense associated with asset retirement obligations for nonregulated operations | (7 | ) | | (3 | ) | Depreciation and amortization expenses | (419 | ) | | (208 | ) | Equity earnings (losses) | 51 |
| | 23 |
| Other investing income (loss) – net | 1 |
| | — |
| Proportional Modified EBITDA of equity-method investments | (136 | ) | | (54 | ) | Interest expense | (192 | ) | | (106 | ) | (Provision) benefit for income taxes | (3 | ) | | (8 | ) | Net income | $ | 112 |
| | $ | 352 |
|
The following table reflects Total assets by reportable segment. | | | | | | | | | | Total Assets | | March 31,
2015 | | December 31,
2014 | | (Millions) | Access Midstream | $ | 22,550 |
| | $ | 22,470 |
| Northeast G&P | 7,350 |
| | 7,314 |
| Atlantic-Gulf | 11,279 |
| | 11,124 |
| West | 5,203 |
| | 5,176 |
| NGL & Petchem Services | 3,383 |
| | 3,510 |
| Other corporate assets | 367 |
| | 563 |
| Eliminations (1) | (848 | ) | | (835 | ) | Total | $ | 49,284 |
| | $ | 49,322 |
|
| | (1) | Eliminations primarily relate to the intercompany accounts receivable generated by our cash management program. |
|