Quarterly report pursuant to Section 13 or 15(d)

Business Segment Information

v3.3.0.814
Business Segment Information
 9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
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 are attributed to the United States. Substantially all of our long-lived assets are located in 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 Pass shipping channel in Louisiana 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 natural gas liquefaction facility 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: 
 
Segments
 
LNG Terminal
 
LNG & Natural Gas Marketing
 
Corporate and Other (1)
 
Total
Consolidation
As of or for the Three Months Ended September 30, 2015
 
 
 
 
 
 
 
Revenues (losses) from external customers (2)
$
67,212

 
$
(1,557
)
 
$
404

 
$
66,059

Intersegment revenues (losses) (3)
233

 
11,354

 
(11,587
)
 
—

Depreciation expense
16,775

 
320

 
4,543

 
21,638

Income (loss) from operations
27,072

 
(27,117
)
 
(52,029
)
 
(52,074
)
Interest expense, net of capitalized interest
(67,589
)
 
(14
)
 
(25,963
)
 
(93,566
)
Loss before income taxes and non-controlling interest (4)
(196,693
)
 
(27,665
)
 
(82,803
)
 
(307,161
)
Share-based compensation
1,316

 
2,051

 
24,084

 
27,451

Goodwill
76,819

 
—

 
—

 
76,819

Total assets
16,784,317

 
552,752

 
1,115,190

 
18,452,259

Expenditures for additions to long-lived assets
1,429,808

 
403

 
21,258

 
1,451,469

 
 
 
 
 
 
 
 
As of or for the Three Months Ended September 30, 2014
 
 
 
 
 
 
 
Revenues (losses) from external customers (2)
$
66,983

 
$
(500
)

$
324

 
$
66,807

Intersegment revenues (losses) (3)
607

 
17,262

 
(17,869
)
 
—

Depreciation expense
14,817

 
103

 
1,269

 
16,189

Loss from operations
(28,482
)
 
(6,652
)
 
(26,030
)
 
(61,164
)
Interest expense, net of capitalized interest
(46,996
)
 
—

 
112

 
(46,884
)
Loss before income taxes and non-controlling interest (4)
(64,886
)
 
(7,130
)
 
(30,813
)
 
(102,829
)
Share-based compensation
3,278

 
8,281

 
13,096

 
24,655

Goodwill
76,819

 
—

 
—

 
76,819

Total assets
10,847,861

 
65,536

 
871,919

 
11,785,316

Expenditures for additions to long-lived assets
695,159

 
486

 
21,895

 
717,540

 
 
 
 
 
 
 
 
For the Nine Months Ended September 30, 2015
 
 
 
 
 
 

Revenues (losses) from external customers (2)
$
203,324

 
$
(1,601
)
 
$
730

 
$
202,453

Intersegment revenues (losses) (3)
827

 
24,725

 
(25,552
)
 
—

Depreciation expense
47,787

 
764

 
11,010

 
59,561

Loss from operations
(15,324
)
 
(58,667
)
 
(134,201
)
 
(208,192
)
Interest expense, net of capitalized interest
(169,899
)
 
(14
)
 
(68,751
)
 
(238,664
)
Loss before income taxes and non-controlling interest (4)
(507,751
)
 
(59,871
)
 
(217,014
)
 
(784,636
)
Share-based compensation
30,233

 
12,138

 
71,736

 
114,107

Expenditures for additions to long-lived assets
5,964,244

 
2,517

 
70,913

 
6,037,674

 
 
 
 
 
 
 

For the Nine Months Ended September 30, 2014
 
 
 
 
 
 
 
Revenues from external customers (2)
$
200,243

 
$
482

 
$
1,277

 
$
202,002

Intersegment revenues (losses) (3)
2,113

 
21,336

 
(23,449
)
 
—

Depreciation expense
44,033

 
364

 
4,565

 
48,962

Loss from operations
(56,863
)
 
(33,153
)
 
(81,153
)
 
(171,169
)
Interest expense, net of capitalized interest
(131,264
)
 
—

 
321

 
(130,943
)
Loss before income taxes and non-controlling interest (4)
(376,363
)
 
(34,046
)
 
(95,299
)
 
(505,708
)
Share-based compensation
9,840

 
17,212

 
63,920

 
90,972

Expenditures for additions to long-lived assets
2,164,596

 
1,271

 
54,120

 
2,219,987

 
(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.
(2)
Substantially all of the LNG terminal revenues relate to regasification capacity reservation fee payments made by Total Gas & Power North America, Inc. and Chevron U.S.A. Inc. LNG and natural gas marketing and trading revenue consists primarily of the domestic marketing of natural gas imported into the Sabine Pass LNG terminal.
(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.
(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.