v2.4.0.8

Risk Management (Tables) | 3 Months Ended
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Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Instruments | As of March 31, 2014, KMI and KMP had entered into the following outstanding commodity forward contracts to hedge their forecasted energy commodity purchases and sales:
| Net open position long/(short)
Derivatives designated as hedging contracts |  |  |
Crude oil fixed price | (24.0) |  | MMBbl
Natural gas fixed price | (23.0) |  | Bcf
Natural gas basis | (23.0) |  | Bcf
Derivatives not designated as hedging contracts |  |  |
Crude oil fixed price | (0.7) |  | MMBbl
Crude oil basis | (0.7) |  | MMBbl
Natural gas fixed price | (13.1) |  | Bcf
Natural gas basis | (8.3) |  | Bcf
NGL fixed price | (1.0) |  | MMBbl
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair values of our derivative contracts included in our accompanying consolidated balance sheets as of March 31, 2014 and December 31, 2013 (in millions):
Fair Value of Derivative Contracts
|  |  |  | Asset derivatives |  | Liability derivatives
|  |  |  | March 31, 2014 |  | December 31, 2013 |  | March 31, 2014 |  | December 31, 2013
|  | Balance sheet location |  | Fair value |  | Fair value |  | Fair value |  | Fair value
Derivatives designated as hedging contracts |  |  |  |  |  |  |  |  |  |
Natural gas and crude derivative contracts |  | Other current assets/(Other current liabilities) |  | $ | 13 |  |  | $ | 18 |  |  | $ | (51 | ) |  | $ | (33 | )
|  | Deferred charges and other assets/(Other long-term liabilities and deferred credits) |  | 22 |  |  | 58 |  |  | (13 | ) |  | (30 | )
Subtotal |  |  |  | 35 |  |  | 76 |  |  | (64 | ) |  | (63 | )
Interest rate swap agreements |  | Other current assets/(Other current liabilities) |  | 122 |  |  | 87 |  |  | — |  |  | — |
|  | Deferred charges and other assets/(Other long-term liabilities and deferred credits) |  | 170 |  |  | 172 |  |  | (94 | ) |  | (116 | )
Subtotal |  |  |  | 292 |  |  | 259 |  |  | (94 | ) |  | (116 | )
Total |  |  |  | 327 |  |  | 335 |  |  | (158 | ) |  | (179 | )
Derivatives not designated as hedging contracts |  |  |  |  |  |  |  |  |  |  |  |
Natural gas, crude and NGL derivative contracts |  | Other current assets/(Other current liabilities) |  | 6 |  |  | 4 |  |  | (9 | ) |  | (5 | )
Subtotal |  |  |  | 6 |  |  | 4 |  |  | (9 | ) |  | (5 | )
Power derivative contracts |  | Other current assets/(Other current liabilities) |  | 2 |  |  | 7 |  |  | (49 | ) |  | (54 | )
|  | Deferred charges and other assets/(Other long-term liabilities and deferred credits) |  | 8 |  |  | 11 |  |  | (58 | ) |  | (73 | )
Subtotal |  |  |  | 10 |  |  | 18 |  |  | (107 | ) |  | (127 | )
Total |  |  |  | 16 |  |  | 22 |  |  | (116 | ) |  | (132 | )
Total derivatives |  |  |  | $ | 343 |  |  | $ | 357 |  |  | $ | (274 | ) |  | $ | (311 | )
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following three tables summarize the impact of our derivative contracts on our accompanying consolidated statements of income for each of the three months ended March 31, 2014 and 2013 (in millions):
Derivatives in fair value hedging relationships |  | Location of gain/(loss) recognized in income on derivatives |  | Amount of gain/(loss) recognized in income on derivatives and related hedged item(a)
|  |  |  | Three Months Ended March 31,
|  |  |  | 2014 |  | 2013
Interest rate swap agreements |  | Interest expense |  | $ | 55 |  |  | $ | (88 | )
Total |  |  |  | $ | 55 |  |  | $ | (88 | )
Fixed rate debt |  | Interest expense |  | $ | (55 | ) |  | $ | 88 |
Total |  |  |  | $ | (55 | ) |  | $ | 88 |
_______
(a) | Amounts reflect the change in the fair value of interest rate swap agreements and the change in the fair value of the associated fixed rate debt which exactly offset each other as a result of no hedge ineffectiveness.
Derivatives in cash flow hedging relationships |  | Amount of gain/(loss) recognized in OCI on derivative(effective portion)(a) |  | Location of gain/(loss) reclassified from Accumulated OCI into income (effective portion) |  | Amount of gain/(loss) reclassified from Accumulated OCI into income (effective portion)(b) |  | Location of gain/(loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) |  | Amount of gain/(loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
|  | Three Months Ended March 31, |  |  |  | Three Months Ended March 31, |  |  |  | Three Months Ended March 31,
|  | 2014 |  | 2013 |  |  |  | 2014 |  | 2013 |  |  |  | 2014 |  | 2013
Energy commodity derivative contracts |  | $ | (43 | ) |  | $ | (32 | ) |  | Revenues—Natural gas sales |  | $ | (9 | ) |  | $ | — |  |  | Revenues—Natural gas sales |  | $ | — |  |  | $ | — |
|  |  |  |  |  | Revenues—Product sales and other |  | (6 | ) |  | 5 |  |  | Revenues—Product sales and other |  | (5 | ) |  | (3 | )
|  |  |  |  |  |  | Costs of sales |  | 1 |  |  | — |  |  | Costs of sales |  | — |  |  | — |
Interest rate swap agreements |  | (2 | ) |  | 1 |  |  | Interest expense |  | — |  |  | 1 |  |  | Interest expense |  | — |  |  | — |
Total |  | $ | (45 | ) |  | $ | (31 | ) |  | Total |  | $ | (14 | ) |  | $ | 6 |  |  | Total |  | $ | (5 | ) |  | $ | (3 | )
_______
(a) | We expect to reclassify an approximate $15 million loss associated with energy commodity price risk management activities and included in our accumulated other comprehensive loss and noncontrolling interest balances as of March 31, 2014 into earnings during the next twelve months (when the associated forecasted sales and purchases are also expected to occur), however, actual amounts reclassified into earnings could vary materially as a result of changes in market prices.
(b) | Amounts reclassified were the result of the hedged forecasted transactions actually affecting earnings (i.e., when the forecasted sales and purchases actually occurred).
Derivatives not designated as accounting hedges | Location of gain/(loss) recognized in income on derivatives | Amount of gain/(loss) recognized in income on derivatives
|  | Three Months Ended March 31,
|  | 2014 |  | 2013
Energy commodity derivative contracts | Revenues—Natural gas sales | $ | (7 | ) |  | $ | 1 |
| Revenues—Product sales and other | (1 | ) |  | 2 |
| Costs of sales | 10 |  |  | — |
| Other expense(income) | (2 | ) |  | — |
Total |  | $ | — |  |  | $ | 3 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in the components of our “Accumulated other comprehensive loss” for the three months ended March 31, 2014 and 2013 are summarized as follows (in millions):
| Net unrealized gains/(losses) on cash flow hedge derivatives |  | Foreign currency translation adjustments |  | Pension and other postretirement liability adjustments |  | Total accumulated other comprehensive loss
Balance as of December 31, 2013 | $ | (3 | ) |  | $ | 2 |  |  | $ | (23 | ) |  | $ | (24 | )
Other comprehensive loss before reclassifications | (19 | ) |  | (25 | ) |  | — |  |  | (44 | )
Amounts reclassified from accumulated other comprehensive loss | 6 |  |  | — |  |  | — |  |  | 6 |
Net current-period other comprehensive loss | (13 | ) |  | (25 | ) |  | — |  |  | (38 | )
Balance as of March 31, 2014 | $ | (16 | ) |  | $ | (23 | ) |  | $ | (23 | ) |  | $ | (62 | )
| Net unrealized gains/(losses) on cash flow hedge derivatives |  | Foreign currency translation adjustments |  | Pension and other postretirement liability adjustments |  | Total accumulated other comprehensive loss
Balance as of December 31, 2012 | $ | 7 |  |  | $ | 51 |  |  | $ | (176 | ) |  | $ | (118 | )
Other comprehensive loss before reclassifications | (16 | ) |  | (17 | ) |  | (1 | ) |  | (34 | )
Amounts reclassified from accumulated other comprehensive loss | (4 | ) |  | — |  |  | — |  |  | (4 | )
Net current-period other comprehensive loss | (20 | ) |  | (17 | ) |  | (1 | ) |  | (38 | )
Balance as of March 31, 2013 | $ | (13 | ) |  | $ | 34 |  |  | $ | (177 | ) |  | $ | (156 | )

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- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
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- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41678-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)(2)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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