| Business Segment Information |
BUSINESS SEGMENT INFORMATION
We have two reportable segments: LNG terminal segment and LNG and natural gas marketing segment. We determine our reportable segments by identifying each segment that engaged in business activities from which it may earn revenues and incur expenses, had operating results regularly reviewed by the entities’ chief operating decision maker for purposes of resource allocation and performance assessment, and had discrete financial information. Substantially all of our revenues from external customers and long-lived assets for each of the years ended December 31, 2015, 2014 and 2013 are attributed to the United States.
Our LNG terminal segment consists of the Sabine Pass and Corpus Christi LNG terminals. We own and operate the Sabine Pass LNG terminal located on the Sabine-Neches Waterway less than four miles from the Gulf Coast through our ownership interest in and management agreements with Cheniere Partners. We own 100% of the general partner interest in Cheniere Partners and 80.1% of the common shares of Cheniere Holdings, which owns a 55.9% limited partner interest in Cheniere Partners. We are also developing and constructing a second natural gas liquefaction and export facility at the Corpus Christi LNG terminal near Corpus Christi, Texas.
Our LNG and natural gas marketing segment consists of LNG and natural gas marketing activities by Cheniere Marketing. Cheniere Marketing is developing a platform for LNG sales to international markets with professional staff based in the United States, United Kingdom, Singapore and Chile.
The following table (in thousands) summarizes revenues (losses), loss from operations and total assets for each of our reporting segments:
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Segments |
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LNG Terminal |
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LNG & Natural Gas Marketing |
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Corporate and Other (1) |
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Total
Consolidation
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As of or for the Year Ended December 31, 2015 |
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Revenues from external customers (2) |
$ |
269,281 |
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$ |
66 |
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$ |
1,538 |
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$ |
270,885 |
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Intersegment revenues (losses) (3) |
2,225 |
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|
29,373 |
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|
(31,598 |
) |
|
— |
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Depreciation and amortization expense |
65,137 |
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|
1,071 |
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|
16,472 |
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|
82,680 |
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Loss from operations |
(69,923 |
) |
|
(85,577 |
) |
|
(293,813 |
) |
|
(449,313 |
) |
Interest expense, net of capitalized interest |
(219,831 |
) |
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— |
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|
(102,252 |
) |
|
(322,083 |
) |
Loss before income taxes and non-controlling interest (4) |
(596,432 |
) |
|
(87,133 |
) |
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(413,846 |
) |
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(1,097,411 |
) |
Share-based compensation |
32,948 |
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|
14,401 |
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|
147,959 |
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|
195,308 |
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Goodwill |
76,819 |
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— |
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— |
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76,819 |
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Total assets |
17,571,442 |
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550,896 |
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|
897,251 |
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19,019,589 |
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Expenditures for additions to long-lived assets |
6,984,152 |
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|
2,731 |
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|
97,216 |
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|
7,084,099 |
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As of or for the Year Ended December 31, 2014 |
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Revenues (losses) from external customers (2) |
$ |
267,606 |
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$ |
(1,285 |
) |
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$ |
1,633 |
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$ |
267,954 |
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Intersegment revenues (losses) (3) |
(779 |
) |
|
41,908 |
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(41,129 |
) |
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— |
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Depreciation and amortization expense |
58,883 |
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|
271 |
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|
5,104 |
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|
64,258 |
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Loss from operations |
(89,790 |
) |
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(12,993 |
) |
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(169,396 |
) |
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(272,179 |
) |
Interest expense, net of capitalized interest |
(177,400 |
) |
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— |
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(3,836 |
) |
|
(181,236 |
) |
Loss before income taxes and non-controlling interest (4) |
(480,366 |
) |
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(14,874 |
) |
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(192,494 |
) |
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(687,734 |
) |
Share-based compensation |
14,129 |
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|
6,027 |
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|
90,073 |
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|
110,229 |
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Goodwill |
76,819 |
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— |
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— |
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|
76,819 |
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Total assets |
10,580,612 |
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|
567,460 |
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1,425,611 |
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12,573,683 |
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Expenditures for additions to long-lived assets |
2,684,045 |
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|
1,888 |
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161,882 |
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2,847,815 |
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As of or for the Year Ended December 31, 2013 |
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Revenues from external customers (2) |
$ |
265,409 |
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|
$ |
242 |
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$ |
1,562 |
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$ |
267,213 |
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Intersegment revenues (losses) (3) |
2,983 |
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|
45,049 |
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|
(48,032 |
) |
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— |
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Depreciation and amortization expense |
58,099 |
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|
941 |
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|
2,169 |
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|
61,209 |
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Loss from operations |
(121,040 |
) |
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(47,966 |
) |
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(159,322 |
) |
|
(328,328 |
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Interest expense, net of capitalized interest |
(182,003 |
) |
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— |
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|
3,603 |
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|
(178,400 |
) |
Loss before income taxes and non-controlling interest (4) |
(350,734 |
) |
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(48,851 |
) |
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(154,838 |
) |
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(554,423 |
) |
Share-based compensation |
29,805 |
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|
46,293 |
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|
207,783 |
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|
283,881 |
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Goodwill |
76,819 |
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— |
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— |
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76,819 |
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Total assets |
8,663,795 |
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62,327 |
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947,115 |
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9,673,237 |
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Expenditures for additions to long-lived assets |
3,222,454 |
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39 |
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|
9,778 |
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3,232,271 |
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(1) |
Includes corporate activities, business development, oil and gas exploration, development and exploitation, strategic activities and certain intercompany eliminations. These activities have been included in the corporate and other column due to the lack of a material impact that these activities have on our Consolidated Financial Statements. |
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(2) |
Substantially all of the LNG terminal revenues relate to regasification capacity reservation fee payments made by Total and Chevron. LNG and natural gas marketing and trading revenue consists primarily of the domestic marketing of natural gas imported into the Sabine Pass LNG terminal.
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(3) |
Intersegment revenues (losses) related to our LNG and natural gas marketing segment are primarily a result of international revenue allocations using a cost plus transfer pricing methodology. These LNG and natural gas marketing segment intersegment revenues (losses) are eliminated with intersegment revenues (losses) in our Consolidated Statements of Operations.
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(4) |
Items to reconcile loss from operations and loss before income taxes and non-controlling interest include consolidated other income (expense) amounts as presented on our Consolidated Statements of Operations primarily related to our LNG terminal segment.
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