| Reportable Segments |
Reportable Segments We operate the following reportable business segments. These segments and their principal sources of revenues are as follows:
| | • | Natural Gas Pipelines—the sale, transport, processing, treating, fractionation, storage and gathering of natural gas and NGL; |
| | • | CO2—KMP—the production, sale and transportation of crude oil from fields in the Permian Basin of West Texas and the production, transportation and marketing of CO2 used as a flooding medium for recovering crude oil from mature oil fields; |
| | • | Products Pipelines—KMP— the transportation and terminaling of refined petroleum products (including gasoline, diesel fuel and jet fuel), NGL, crude oil and condensate, and bio-fuels; |
| | • | Terminals—KMP—the transportation, transloading and storing of refined petroleum products, crude oil and dry and liquid bulk products, including coal, petroleum coke, cement, alumina, salt and other bulk chemicals; |
| | • | Kinder Morgan Canada—KMP—the transportation of crude oil and refined products from Alberta, Canada to marketing terminals and refineries in British Columbia, and the state of Washington. As further described in Note 2, Kinder Morgan Canada divested its interest in the Express pipeline system effective March 14, 2013; and |
| | • | Other—primarily includes other miscellaneous assets and liabilities purchased in our 2012 EP acquisition including (i) our corporate headquarters in Houston, Texas; (ii) several physical natural gas contracts with power plants associated with EP’s legacy trading activities; and (iii) other miscellaneous EP assets and liabilities. |
We evaluate performance principally based on each segment’s EBDA (including amortization of excess cost of equity investments), which excludes general and administrative expenses, third-party debt costs and interest expense, unallocable interest income, and unallocable income tax expense. Our reportable segments are strategic business units that offer different products and services, and they are structured based on how our chief operating decision makers organize their operations for optimal performance and resource allocation. Each segment is managed separately because each segment involves different products and marketing strategies. Financial information by segment follows (in millions): | | | | | | | | | | Three Months Ended March 31, | | 2014 | | 2013 | Revenues | | | | Natural Gas Pipelines | | | | Revenues from external customers | $ | 2,557 |
| | $ | 1,755 |
| Intersegment revenues | 4 |
| | 1 |
| CO2–KMP | 483 |
| | 429 |
| Products Pipelines–KMP | 534 |
| | 454 |
| Terminals–KMP | 391 |
| | 337 |
| Kinder Morgan Canada–KMP | 69 |
| | 72 |
| Other | 4 |
| | 4 |
| Total segment revenues | 4,042 |
| | 3,052 |
| Other revenues | 9 |
| | 9 |
| Less: Total intersegment revenues | (4 | ) | | (1 | ) | Total consolidated revenues | $ | 4,047 |
| | $ | 3,060 |
|
| | | | | | | | | | Three Months Ended March 31, | | 2014 | | 2013 | Segment EBDA(a) | | | | Natural Gas Pipelines | $ | 1,071 |
| | $ | 899 |
| CO2–KMP | 363 |
| | 342 |
| Products Pipelines–KMP | 208 |
| | 185 |
| Terminals–KMP | 214 |
| | 186 |
| Kinder Morgan Canada–KMP(b) | 48 |
| | 193 |
| Other | 7 |
| | 4 |
| Total segment EBDA | 1,911 |
| | 1,809 |
| Total segment DD&A expense | (496 | ) | | (415 | ) | Total segment amortization of excess cost of investments | (10 | ) | | (9 | ) | Other revenues | 9 |
| | 9 |
| General and administrative expense | (172 | ) | | (140 | ) | Interest expense, net of unallocable interest income | (450 | ) | | (409 | ) | Unallocable income tax expense | (191 | ) | | (187 | ) | Loss from discontinued operations, net of tax | — |
| | (2 | ) | Total consolidated net income | $ | 601 |
| | $ | 656 |
|
| | | | | | | | | | March 31,
2014 | | December 31,
2013 | Assets | | | | Natural Gas Pipelines | $ | 51,927 |
| | $ | 52,357 |
| CO2–KMP | 4,734 |
| | 4,708 |
| Products Pipelines–KMP | 6,801 |
| | 6,648 |
| Terminals–KMP | 7,938 |
| | 6,888 |
| Kinder Morgan Canada–KMP | 1,621 |
| | 1,677 |
| Other | 559 |
| | 568 |
| Total segment assets | 73,580 |
| | 72,846 |
| Corporate assets(c) | 2,474 |
| | 2,339 |
| Total consolidated assets | $ | 76,054 |
| | $ | 75,185 |
|
_______ | | (a) | Includes revenues, earnings from equity investments, allocable interest income, and other, net, less operating expenses, allocable income taxes, and other income, net. Operating expenses include natural gas purchases and other costs of sales, operations and maintenance expenses, and taxes, other than income taxes. |
| | (b) | 2013 amount includes a $141 million increase in earnings from the after-tax gain on the sale of KMP’s investments in the Express pipeline system. |
| | (c) | Includes cash and cash equivalents, margin and restricted deposits, unallocable interest receivable, prepaid assets and deferred charges, risk management assets related to debt fair value adjustments and miscellaneous corporate assets (such as information technology and telecommunications equipment) not allocated to individual segments. |
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