v2.4.0.8

Guarantee of Securities of Subsidiaries (Notes) | 3 Months Ended
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Mar. 31, 2014
Guarantees [Abstract] |
Guarantees [Text Block] | Guarantee of Securities of Subsidiaries KMI had guaranteed the payment of the outstanding senior notes issued by El Paso LLC (formerly known as El Paso Corporation) as a result of the EP acquisition. These notes were also guaranteed by El Paso, El Paso LLC’s direct parent. El Paso Issuing Corporation (Finance Corp), a direct subsidiary of El Paso LLC, is the co-issuer of these notes. The aggregate principal amount of these series of El Paso LLC senior notes are referred to as the “Guaranteed Notes”. On October 3, 2013, El Paso LLC transferred substantially all of its assets to El Paso Holdco pursuant to an internal restructuring transaction. In connection with such internal restructuring, El Paso Holdco succeeded El Paso LLC as issuer with respect to the Guaranteed Notes, and El Paso LLC ceased to be an obligor with respect to the Guaranteed Notes. Prior to the internal restructuring, El Paso Holdco had been presented as the “Guarantor Subsidiary” and is now presented as one of the “Subsidiary Issuers.” KMI continues to guarantee the payment of the Guaranteed Notes. Finance Corp’s obligations as a co-issuer and primary obligor continue to be joint and several with the obligations of El Paso Holdco as issuer. As of both March 31, 2014, and December 31, 2013, approximately $3.8 billion of these guaranteed notes are outstanding. Subject to the limitations set forth in the applicable supplemental indentures, the guarantee of KMI is full and unconditional and joint and several, and guarantee the Guaranteed Notes through their respective maturity dates, the latest of which is in 2037. Finance Corp has no subsidiaries and no independent assets or operations. A significant amount of KMI’s income and cash flow are generated by its subsidiaries. As a result, the funds necessary to meet KMI’s debt service and/or guarantee obligations are provided in large part by distributions or advances from its subsidiaries. Included among the non-guarantor subsidiaries are KMP, KMR and EPB, along with KMGP, the general partner of KMP and El Paso Pipeline GP Company, L.L.C., the general partner of EPB. In the following condensed consolidating financial information, KMI is “Parent Guarantor,” and El Paso Holdco and Finance Corp are the “Subsidiary Issuers.” Both of the Subsidiary Issuers are 100% owned by KMI.
Condensed Consolidating Statement of Income for the Three Months Ended March 31, 2014 (In Millions) (Unaudited)
| Parent Guarantor |  | Subsidiary Issuers |  | Non-guarantor Subsidiaries |  | Eliminations |  | Consolidated KMI
Revenues | $ | 9 |  |  | $ | — |  |  | $ | 4,048 |  |  | $ | (10 | ) |  | $ | 4,047 |
Costs, expenses and other |  |  |  |  |  |  |  |  |
Costs of sales | — |  |  | — |  |  | 1,643 |  |  | — |  |  | 1,643 |
Depreciation, depletion and amortization | — |  |  | — |  |  | 496 |  |  | — |  |  | 496 |
Other operating expenses | 8 |  |  | — |  |  | 763 |  |  | (10 | ) |  | 761 |
Total costs, expenses and other | 8 |  |  | — |  |  | 2,902 |  |  | (10 | ) |  | 2,900 |
Operating income | 1 |  |  | — |  |  | 1,146 |  |  | — |  |  | 1,147 |
Other income (expense) |  |  |  |  |  |  |  |  |
Earnings from equity investments | 345 |  |  | 127 |  |  | 99 |  |  | (472 | ) |  | 99 |
Interest, net | (73 | ) |  | (65 | ) |  | (310 | ) |  | — |  |  | (448 | )
Amortization of excess cost of equity investments and other, net | 1 |  |  | — |  |  | 2 |  |  | — |  |  | 3 |
Income from continuing operations before income taxes | 274 |  |  | 62 |  |  | 937 |  |  | (472 | ) |  | 801 |
Income tax benefit (expense) | 13 |  |  | (13 | ) |  | (200 | ) |  | — |  |  | (200 | )
Net income | 287 |  |  | 49 |  |  | 737 |  |  | (472 | ) |  | 601 |
Net income attributable to noncontrolling interests | — |  |  | — |  |  | (331 | ) |  | 17 |  |  | (314 | )
Net income attributable to controlling interests | $ | 287 |  |  | $ | 49 |  |  | $ | 406 |  |  | $ | (455 | ) |  | $ | 287 |
Condensed Consolidating Statement of Income for the Three Months Ended March 31, 2013 (In Millions) (Unaudited)
| Parent Guarantor |  | Subsidiary Issuers |  | Non-guarantor Subsidiaries |  | Eliminations |  | Consolidated KMI
Revenues | $ | 9 |  |  | $ | — |  |  | $ | 3,058 |  |  | $ | (7 | ) |  | $ | 3,060 |
Costs, expenses and other |  |  |  |  |  |  |  |  |
Costs of sales | — |  |  | — |  |  | 970 |  |  | — |  |  | 970 |
Depreciation, depletion and amortization | — |  |  | — |  |  | 415 |  |  | — |  |  | 415 |
Other operating expenses | 3 |  |  | (3 | ) |  | 665 |  |  | (7 | ) |  | 658 |
Total costs, expenses and other | 3 |  |  | (3 | ) |  | 2,050 |  |  | (7 | ) |  | 2,043 |
Operating income | 6 |  |  | 3 |  |  | 1,008 |  |  | — |  |  | 1,017 |
Other income (expense) |  |  |  |  |  |  |  |  |
Earnings from equity investments | 339 |  |  | 142 |  |  | 101 |  |  | (481 | ) |  | 101 |
Interest, net | (65 | ) |  | (106 | ) |  | (231 | ) |  | — |  |  | (402 | )
Amortization of excess cost of equity investments, gain on sale of investments and other, net | — |  |  | (1 | ) |  | 222 |  |  | — |  |  | 221 |
Income from continuing operations before income taxes | 280 |  |  | 38 |  |  | 1,100 |  |  | (481 | ) |  | 937 |
Income tax benefit (expense) | 12 |  |  | — |  |  | (291 | ) |  | — |  |  | (279 | )
Income from continuing operations | 292 |  |  | 38 |  |  | 809 |  |  | (481 | ) |  | 658 |
Loss from discontinued operations, net of tax | — |  |  | — |  |  | (2 | ) |  | — |  |  | (2 | )
Net income | 292 |  |  | 38 |  |  | 807 |  |  | (481 | ) |  | 656 |
Net income attributable to noncontrolling interests | — |  |  | — |  |  | (388 | ) |  | 24 |  |  | (364 | )
Net income attributable to controlling interests | $ | 292 |  |  | $ | 38 |  |  | $ | 419 |  |  | $ | (457 | ) |  | $ | 292 |
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2014 (In Millions) (Unaudited)
| Parent Guarantor |  | Subsidiary Issuers |  | Non-guarantor Subsidiaries |  | Eliminations |  | Consolidated KMI
Net income | $ | 287 |  |  | $ | 49 |  |  | $ | 737 |  |  | $ | (472 | ) |  | $ | 601 |
Other comprehensive loss, net of tax |  |  |  |  |  |  |  |  |
Change in fair value of derivatives utilized for hedging purposes | (19 | ) |  | (2 | ) |  | (44 | ) |  | 20 |  |  | (45 | )
Reclassification of change in fair value of derivatives to net income | 6 |  |  | — |  |  | 13 |  |  | (5 | ) |  | 14 |
Foreign currency translation adjustments | (25 | ) |  | — |  |  | (60 | ) |  | 23 |  |  | (62 | )
Adjustments to pension and other postretirement benefit plan liabilities | — |  |  | — |  |  | (2 | ) |  | 1 |  |  | (1 | )
Total other comprehensive loss | (38 | ) |  | (2 | ) |  | (93 | ) |  | 39 |  |  | (94 | )
Comprehensive income | 249 |  |  | 47 |  |  | 644 |  |  | (433 | ) |  | 507 |
Comprehensive income attributable to noncontrolling interests | — |  |  | — |  |  | (258 | ) |  | — |  |  | (258 | )
Comprehensive income attributable to controlling interests | $ | 249 |  |  | $ | 47 |  |  | $ | 386 |  |  | $ | (433 | ) |  | $ | 249 |
Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended March 31, 2013 (In Millions) (Unaudited)
| Parent Guarantor |  | Subsidiary Issuers |  | Non-guarantor Subsidiaries |  | Eliminations |  | Consolidated KMI
Net income | $ | 292 |  |  | $ | 38 |  |  | $ | 807 |  |  | $ | (481 | ) |  | $ | 656 |
Other comprehensive loss, net of tax |  |  |  |  |  |  |  |  |
Change in fair value of derivatives utilized for hedging purposes | (16 | ) |  | 1 |  |  | (30 | ) |  | 14 |  |  | (31 | )
Reclassification of change in fair value of derivatives to net income | (4 | ) |  | (1 | ) |  | (6 | ) |  | 5 |  |  | (6 | )
Foreign currency translation adjustments | (17 | ) |  | — |  |  | (32 | ) |  | 16 |  |  | (33 | )
Adjustments to pension and other postretirement benefit plan liabilities | (1 | ) |  | (3 | ) |  | (1 | ) |  | 4 |  |  | (1 | )
Total other comprehensive loss | (38 | ) |  | (3 | ) |  | (69 | ) |  | 39 |  |  | (71 | )
Comprehensive income | 254 |  |  | 35 |  |  | 738 |  |  | (442 | ) |  | 585 |
Comprehensive income attributable to noncontrolling interests | — |  |  | — |  |  | (331 | ) |  | — |  |  | (331 | )
Comprehensive income attributable to controlling interests | $ | 254 |  |  | $ | 35 |  |  | $ | 407 |  |  | $ | (442 | ) |  | $ | 254 |
Condensed Consolidating Balance Sheet as of March 31, 2014 (In Millions) (Unaudited)
| Parent Guarantor |  | Subsidiary Issuers |  | Non-guarantor Subsidiaries |  | Eliminations |  | Consolidated KMI
ASSETS |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 56 |  |  | $ | — |  |  | $ | 457 |  |  | $ | — |  |  | $ | 513 |
All other current assets | 642 |  |  | 3 |  |  | 2,826 |  |  | (322 | ) |  | 3,149 |
Property, plant and equipment, net | 25 |  |  | — |  |  | 36,927 |  |  | — |  |  | 36,952 |
Investments | — |  |  | — |  |  | 5,962 |  |  | — |  |  | 5,962 |
Investments in affiliates | 20,437 |  |  | 6,151 |  |  | — |  |  | (26,588 | ) |  | — |
Goodwill | — |  |  | 8,062 |  |  | 16,501 |  |  | — |  |  | 24,563 |
Notes receivable from affiliates | — |  |  | — |  |  | 1,993 |  |  | (1,993 | ) |  | — |
Other non-current assets | 208 |  |  | 844 |  |  | 4,679 |  |  | (816 | ) |  | 4,915 |
Total assets | $ | 21,368 |  |  | $ | 15,060 |  |  | $ | 69,345 |  |  | $ | (29,719 | ) |  | $ | 76,054 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |
Current portion of debt | $ | 660 |  |  | $ | 317 |  |  | $ | 1,435 |  |  | $ | — |  |  | $ | 2,412 |
All other current liabilities | 247 |  |  | 124 |  |  | 3,607 |  |  | (322 | ) |  | 3,656 |
Long-term debt | 3,117 |  |  | 3,987 |  |  | 27,695 |  |  | — |  |  | 34,799 |
Notes payable to affiliates | 1,993 |  |  | — |  |  | — |  |  | (1,993 | ) |  | — |
Deferred income taxes | 2,295 |  |  | — |  |  | 3,120 |  |  | (816 | ) |  | 4,599 |
Other long-term liabilities and deferred credits | 256 |  |  | 71 |  |  | 1,827 |  |  | — |  |  | 2,154 |
Total liabilities | 8,568 |  |  | 4,499 |  |  | 37,684 |  |  | (3,131 | ) |  | 47,620 |
Stockholders’ equity |  |  |  |  |  |  |  |  |
Total KMI equity | 12,800 |  |  | 10,561 |  |  | 15,603 |  |  | (26,164 | ) |  | 12,800 |
Noncontrolling interests | — |  |  | — |  |  | 16,058 |  |  | (424 | ) |  | 15,634 |
Total stockholders’ equity | 12,800 |  |  | 10,561 |  |  | 31,661 |  |  | (26,588 | ) |  | 28,434 |
Total liabilities and stockholders’ equity | $ | 21,368 |  |  | $ | 15,060 |  |  | $ | 69,345 |  |  | $ | (29,719 | ) |  | $ | 76,054 |
Condensed Consolidating Balance Sheet as of December 31, 2013 (In Millions)
| Parent Guarantor |  | Subsidiary Issuers |  | Non-guarantor Subsidiaries |  | Eliminations |  | Consolidated KMI
ASSETS |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 83 |  |  | $ | — |  |  | $ | 515 |  |  | $ | — |  |  | $ | 598 |
All other current assets | 945 |  |  | 38 |  |  | 2,763 |  |  | (476 | ) |  | 3,270 |
Property, plant and equipment, net | 10 |  |  | — |  |  | 35,837 |  |  | — |  |  | 35,847 |
Investments | — |  |  | — |  |  | 5,951 |  |  | — |  |  | 5,951 |
Investments in affiliates | 20,336 |  |  | 6,651 |  |  | — |  |  | (26,987 | ) |  | — |
Goodwill | — |  |  | 8,062 |  |  | 16,442 |  |  | — |  |  | 24,504 |
Notes receivable from affiliates | — |  |  | — |  |  | 1,993 |  |  | (1,993 | ) |  | — |
Other non-current assets | 227 |  |  | 841 |  |  | 4,759 |  |  | (812 | ) |  | 5,015 |
Total assets | $ | 21,601 |  |  | $ | 15,592 |  |  | $ | 68,260 |  |  | $ | (30,268 | ) |  | $ | 75,185 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |
Current portion of debt | $ | 175 |  |  | $ | 400 |  |  | $ | 1,731 |  |  | $ | — |  |  | $ | 2,306 |
All other current liabilities | 228 |  |  | 135 |  |  | 3,882 |  |  | (476 | ) |  | 3,769 |
Long-term debt | 3,371 |  |  | 3,999 |  |  | 26,517 |  |  | — |  |  | 33,887 |
Notes payable to affiliates | 1,993 |  |  | — |  |  | — |  |  | (1,993 | ) |  | — |
Deferred income taxes | 2,426 |  |  | — |  |  | 3,037 |  |  | (812 | ) |  | 4,651 |
Other long term liabilities and deferred credits | 315 |  |  | 69 |  |  | 1,903 |  |  | — |  |  | 2,287 |
Total liabilities | 8,508 |  |  | 4,603 |  |  | 37,070 |  |  | (3,281 | ) |  | 46,900 |
Stockholders’ equity |  |  |  |  |  |  |  |  |
Total KMI equity | 13,093 |  |  | 10,989 |  |  | 15,596 |  |  | (26,585 | ) |  | 13,093 |
Noncontrolling interests | — |  |  | — |  |  | 15,594 |  |  | (402 | ) |  | 15,192 |
Total stockholders’ equity | 13,093 |  |  | 10,989 |  |  | 31,190 |  |  | (26,987 | ) |  | 28,285 |
Total liabilities and stockholders’ equity | $ | 21,601 |  |  | $ | 15,592 |  |  | $ | 68,260 |  |  | $ | (30,268 | ) |  | $ | 75,185 |
Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2014 (In Millions) (Unaudited)
| Parent Guarantor |  | Subsidiary Issuers |  | Non-guarantor Subsidiaries |  | Eliminations |  | Consolidated KMI
Net cash provided by (used in) operating activities | $ | 526 |  |  | $ | (88 | ) |  | $ | 1,287 |  |  | $ | (607 | ) |  | $ | 1,118 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |
Business acquisitions | — |  |  | — |  |  | (960 | ) |  | — |  |  | (960 | )
Acquisitions of other assets and investments | — |  |  | — |  |  | (30 | ) |  | — |  |  | (30 | )
Capital expenditures | (15 | ) |  | — |  |  | (830 | ) |  | — |  |  | (845 | )
Loans to related party | — |  |  | — |  |  | (17 | ) |  | — |  |  | (17 | )
Funding to affiliates | (235 | ) |  | (1 | ) |  | (43 | ) |  | 279 |  |  | — |
Investments in KMP and EPB | (11 | ) |  | — |  |  | — |  |  | 11 |  |  | — |
Contributions to investments | — |  |  | — |  |  | (36 | ) |  | — |  |  | (36 | )
Distributions from equity investments in excess of cumulative earnings | 10 |  |  | — |  |  | 38 |  |  | (10 | ) |  | 38 |
Natural gas storage and natural gas and liquids line-fill | — |  |  | — |  |  | 21 |  |  | — |  |  | 21 |
Other, net | — |  |  | — |  |  | 10 |  |  | — |  |  | 10 |
Net cash (used in) provided by investing activities | (251 | ) |  | (1 | ) |  | (1,847 | ) |  | 280 |  |  | (1,819 | )
Cash flows from financing activities |  |  |  |  |  |  |  |  |
Issuance of debt | 643 |  |  | — |  |  | 4,548 |  |  | — |  |  | 5,191 |
Payment of debt | (408 | ) |  | (83 | ) |  | (3,693 | ) |  | — |  |  | (4,184 | )
Funding from affiliates | 39 |  |  | 172 |  |  | 68 |  |  | (279 | ) |  | — |
Debt issuance costs | (2 | ) |  | — |  |  | (10 | ) |  | — |  |  | (12 | )
Cash dividends | (425 | ) |  | — |  |  | — |  |  | — |  |  | (425 | )
Repurchases of shares and warrants | (149 | ) |  | — |  |  | — |  |  | — |  |  | (149 | )
Distributions to parent | — |  |  | — |  |  | (610 | ) |  | 610 |  |  | — |
Contributions from noncontrolling interests | — |  |  | — |  |  | 688 |  |  | (4 | ) |  | 684 |
Distributions to noncontrolling interests | — |  |  | — |  |  | (479 | ) |  | — |  |  | (479 | )
Net cash (used in) provided by financing activities | (302 | ) |  | 89 |  |  | 512 |  |  | 327 |  |  | 626 |
Effect of exchange rate changes on cash and cash equivalents | — |  |  | — |  |  | (10 | ) |  | — |  |  | (10 | )
Net decrease in cash and cash equivalents | (27 | ) |  | — |  |  | (58 | ) |  | — |  |  | (85 | )
Cash and cash equivalents, beginning of period | 83 |  |  | — |  |  | 515 |  |  | — |  |  | 598 |
Cash and cash equivalents, end of period | $ | 56 |  |  | $ | — |  |  | $ | 457 |  |  | $ | — |  |  | $ | 513 |
Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2013 (In Millions) (Unaudited)
| Parent Guarantor |  | Subsidiary Issuers |  | Non-guarantor Subsidiaries |  | Eliminations |  | Consolidated KMI
Net cash provided by operating activities | $ | 335 |  |  | $ | 21 |  |  | $ | 943 |  |  | $ | (532 | ) |  | $ | 767 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |
Acquisitions of assets and investments | — |  |  | — |  |  | (4 | ) |  | — |  |  | (4 | )
Capital expenditures | (11 | ) |  | — |  |  | (587 | ) |  | — |  |  | (598 | )
Proceeds from sale of investments | — |  |  | — |  |  | 491 |  |  | — |  |  | 491 |
Repayment from related party | — |  |  | — |  |  | 10 |  |  | — |  |  | 10 |
Funding to affiliates | (65 | ) |  | (181 | ) |  | (167 | ) |  | 413 |  |  | — |
Drop down assets to KMP | 988 |  |  | — |  |  | (988 | ) |  | — |  |  | — |
Investments in KMP and EPB | (7 | ) |  | (1 | ) |  | — |  |  | 8 |  |  | — |
Contributions to investments | (6 | ) |  | — |  |  | (40 | ) |  | 6 |  |  | (40 | )
Distributions from equity investments in excess of cumulative earnings | — |  |  | — |  |  | 37 |  |  | — |  |  | 37 |
Natural gas storage and natural gas and liquids line-fill | — |  |  | — |  |  | 10 |  |  | — |  |  | 10 |
Other, net | — |  |  | — |  |  | (22 | ) |  | — |  |  | (22 | )
Net cash provided by (used in) investing activities | 899 |  |  | (182 | ) |  | (1,260 | ) |  | 427 |  |  | (116 | )
Cash flows from financing activities |  |  |  |  |  |  |  |  |
Issuance of debt | 520 |  |  | — |  |  | 2,699 |  |  | — |  |  | 3,219 |
Payment of debt | (1,230 | ) |  | (50 | ) |  | (1,811 | ) |  | — |  |  | (3,091 | )
Funding from affiliates | 55 |  |  | 166 |  |  | 192 |  |  | (413 | ) |  | — |
Debt issuance costs | — |  |  | — |  |  | (7 | ) |  | — |  |  | (7 | )
Cash dividends | (384 | ) |  | — |  |  | — |  |  | — |  |  | (384 | )
Repurchases of warrants | (80 | ) |  | — |  |  | — |  |  | — |  |  | (80 | )
Distributions to parent | — |  |  | — |  |  | (530 | ) |  | 530 |  |  | — |
Contributions from noncontrolling interests | — |  |  | — |  |  | 471 |  |  | (6 | ) |  | 465 |
Distributions to noncontrolling interests | — |  |  | — |  |  | (375 | ) |  | — |  |  | (375 | )
Other, net | — |  |  | — |  |  | 6 |  |  | (6 | ) |  | — |
Net cash (used in) provided by financing activities | (1,119 | ) |  | 116 |  |  | 645 |  |  | 105 |  |  | (253 | )
Effect of exchange rate changes on cash and cash equivalents | — |  |  | — |  |  | (6 | ) |  | — |  |  | (6 | )
Net increase (decrease) in cash and cash equivalents | 115 |  |  | (45 | ) |  | 322 |  |  | — |  |  | 392 |
Cash and cash equivalents, beginning of period | 3 |  |  | 45 |  |  | 666 |  |  | — |  |  | 714 |
Cash and cash equivalents, end of period | $ | 118 |  |  | $ | — |  |  | $ | 988 |  |  | $ | — |  |  | $ | 1,106 |

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- Definition The entire disclosure for each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties. + References No definition available. + Details
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