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Reportable Segments (Notes) | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
Reportable Segments | Reportable Segments Our reportable business segments are:
• | Natural Gas Pipelines—the ownership and operation of (i) major interstate and intrastate natural gas pipeline and storage systems; (ii) natural gas and crude oil gathering systems and natural gas processing and treating facilities; (iii) NGL fractionation facilities and transportation systems; and (iv) LNG facilities;
• | CO 2—(i) the production, transportation and marketing of CO 2 to oil fields that use CO 2 as a flooding medium for recovering crude oil from mature oil fields to increase production; (ii) ownership interests in and/or operation of oil fields and gas processing plants in West Texas; and (iii) the ownership and operation of a crude oil pipeline system in West Texas;
• | Terminals—the ownership and/or operation of (i) liquids and bulk terminal facilities located throughout the U.S. and portions of Canada that transload and store refined petroleum products, crude oil, chemicals, and ethanol and bulk products, including petroleum coke, steel and coal; and (ii) Jones Act tankers;
• | Products Pipelines—the ownership and operation of refined petroleum products, NGL and crude oil and condensate pipelines that primarily deliver, among other products, gasoline, diesel and jet fuel, propane, ethane, crude oil and condensate to various markets, plus the ownership and/or operation of associated product terminals and petroleum pipeline transmix facilities; and
• | Kinder Morgan Canada—the ownership and operation of the Trans Mountain pipeline system that transports crude oil and refined petroleum products from Edmonton, Alberta, Canada to marketing terminals and refineries in British Columbia, Canada and the state of Washington, plus the Jet Fuel aviation turbine fuel pipeline that serves the Vancouver (Canada) International Airport.
We evaluate performance principally based on each segment’s EBDA, which excludes general and administrative expenses, interest expense, net, and 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. We consider each period’s earnings before all non-cash DD&A expenses to be an important measure of business segment performance for our reporting segments. We account for intersegment sales at market prices, while we account for asset transfers at either market value or, in some instances, book value. During 2017, 2016 and 2015, we did not have revenues from any single external customer that exceeded 10% of our consolidated revenues. Financial information by segment follows (in millions):
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Revenues |  |  |  |  |
Natural Gas Pipelines |  |  |  |  |
Revenues from external customers | $ | 8,608 |  |  | $ | 7,998 |  |  | $ | 8,704 |
Intersegment revenues | 10 |  |  | 7 |  |  | 21 |
CO 2 | 1,196 |  |  | 1,221 |  |  | 1,699 |
Terminals |  |  |  |  |  |
Revenues from external customers | 1,965 |  |  | 1,921 |  |  | 1,878 |
Intersegment revenues | 1 |  |  | 1 |  |  | 1 |
Products Pipelines |  |  |  |  |
Revenues from external customers | 1,645 |  |  | 1,631 |  |  | 1,828 |
Intersegment revenues | 16 |  |  | 18 |  |  | 3 |
Kinder Morgan Canada | 256 |  |  | 253 |  |  | 260 |
Corporate and intersegment eliminations(a) | 8 |  |  | 8 |  |  | 9 |
Total consolidated revenues | $ | 13,705 |  |  | $ | 13,058 |  |  | $ | 14,403 |
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Operating expenses(b) |  |  |  |  |
Natural Gas Pipelines | $ | 5,457 |  |  | $ | 4,393 |  |  | $ | 4,738 |
CO 2 | 394 |  |  | 399 |  |  | 432 |
Terminals | 788 |  |  | 768 |  |  | 836 |
Products Pipelines | 487 |  |  | 573 |  |  | 772 |
Kinder Morgan Canada | 95 |  |  | 87 |  |  | 87 |
Corporate and intersegment eliminations | (6 | ) |  | 2 |  |  | 26 |
Total consolidated operating expenses | $ | 7,215 |  |  | $ | 6,222 |  |  | $ | 6,891 |
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Other expense (income)(c) |  |  |  |  |
Natural Gas Pipelines | $ | 26 |  |  | $ | 199 |  |  | $ | 1,269 |
CO 2 | (1 | ) |  | 19 |  |  | 606 |
Terminals | (14 | ) |  | 99 |  |  | 190 |
Products Pipelines | — |  |  | 76 |  |  | 2 |
Kinder Morgan Canada | — |  |  | — |  |  | (1 | )
Corporate | 1 |  |  | (7 | ) |  | — |
Total consolidated other expense (income) | $ | 12 |  |  | $ | 386 |  |  | $ | 2,066 |
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
DD&A |  |  |  |  |
Natural Gas Pipelines | $ | 1,011 |  |  | $ | 1,041 |  |  | $ | 1,046 |
CO 2 | 493 |  |  | 446 |  |  | 556 |
Terminals | 472 |  |  | 435 |  |  | 433 |
Products Pipelines | 216 |  |  | 221 |  |  | 206 |
Kinder Morgan Canada | 46 |  |  | 44 |  |  | 46 |
Corporate | 23 |  |  | 22 |  |  | 22 |
Total consolidated DD&A | $ | 2,261 |  |  | $ | 2,209 |  |  | $ | 2,309 |
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Earnings from equity investments and amortization of excess cost of equity investments, including loss on impairments |  |  |  |  |
Natural Gas Pipelines | $ | 253 |  |  | $ | (269 | ) |  | $ | 285 |
CO 2 | 42 |  |  | 22 |  |  | (5 | )
Terminals | 24 |  |  | 19 |  |  | 17 |
Products Pipelines | 48 |  |  | 56 |  |  | 36 |
Total consolidated equity earnings | $ | 367 |  |  | $ | (172 | ) |  | $ | 333 |
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Other, net-income (expense) |  |  |  |  |
Natural Gas Pipelines | $ | 49 |  |  | $ | 19 |  |  | $ | 24 |
Terminals | 8 |  |  | 4 |  |  | 8 |
Products Pipelines | (1 | ) |  | 2 |  |  | 4 |
Kinder Morgan Canada | 25 |  |  | 15 |  |  | 8 |
Corporate | 1 |  |  | 4 |  |  | (1 | )
Total consolidated other, net-income (expense) | $ | 82 |  |  | $ | 44 |  |  | $ | 43 |
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Segment EBDA(d) |  |  |  |  |
Natural Gas Pipelines | $ | 3,487 |  |  | $ | 3,211 |  |  | $ | 3,067 |
CO 2 | 847 |  |  | 827 |  |  | 658 |
Terminals | 1,224 |  |  | 1,078 |  |  | 878 |
Products Pipelines | 1,231 |  |  | 1,067 |  |  | 1,106 |
Kinder Morgan Canada | 186 |  |  | 181 |  |  | 182 |
Total segment EBDA | 6,975 |  |  | 6,364 |  |  | 5,891 |
DD&A | (2,261 | ) |  | (2,209 | ) |  | (2,309 | )
Amortization of excess cost of equity investments | (61 | ) |  | (59 | ) |  | (51 | )
General and administrative and corporate charges | (660 | ) |  | (652 | ) |  | (708 | )
Interest, net | (1,832 | ) |  | (1,806 | ) |  | (2,051 | )
Income tax expense | (1,938 | ) |  | (917 | ) |  | (564 | )
Total consolidated net income | $ | 223 |  |  | $ | 721 |  |  | $ | 208 |
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Capital expenditures |  |  |  |  |
Natural Gas Pipelines | $ | 1,376 |  |  | $ | 1,227 |  |  | $ | 1,642 |
CO 2 | 436 |  |  | 276 |  |  | 725 |
Terminals | 888 |  |  | 983 |  |  | 847 |
Products Pipelines | 127 |  |  | 244 |  |  | 524 |
Kinder Morgan Canada | 338 |  |  | 124 |  |  | 142 |
Corporate | 23 |  |  | 28 |  |  | 16 |
Total consolidated capital expenditures | $ | 3,188 |  |  | $ | 2,882 |  |  | $ | 3,896 |
| 2017 |  | 2016 |  |
Investments at December 31 |  |  |  |  |
Natural Gas Pipelines | $ | 6,218 |  |  | $ | 6,185 |  |  |
CO 2 | 6 |  |  | — |  |  |
Terminals | 263 |  |  | 252 |  |  |
Products Pipelines | 777 |  |  | 566 |  |  |
Kinder Morgan Canada | 34 |  |  | 20 |  |  |
Corporate | — |  |  | 4 |  |  |
Total consolidated investments | $ | 7,298 |  |  | $ | 7,027 |  |  |
| 2017 |  | 2016 |  |
Assets at December 31 |  |  |  |  |
Natural Gas Pipelines | $ | 51,173 |  |  | $ | 50,428 |  |  |
CO 2 | 3,946 |  |  | 4,065 |  |  |
Terminals | 9,935 |  |  | 9,725 |  |  |
Products Pipelines | 8,539 |  |  | 8,329 |  |  |
Kinder Morgan Canada | 2,080 |  |  | 1,572 |  |  |
Corporate assets(e) | 3,382 |  |  | 6,108 |  |  |
Assets held for sale | — |  |  | 78 |  |  |
Total consolidated assets | $ | 79,055 |  |  | $ | 80,305 |  |  |
_______
(a) | Includes a management fee for services we perform as operator of an equity investee.
(b) | Includes costs of sales, operations and maintenance expenses, and taxes, other than income taxes.
(c) | Includes loss on impairment of goodwill, loss on impairments and divestitures, net and other income, net.
(d) | Includes revenues, earnings from equity investments, other, net, less operating expenses, and other income, net, loss on impairment of goodwill, and loss on impairments and divestitures, net and loss on impairments and divestitures of equity investments, net.
(e) | Includes cash and cash equivalents, margin and restricted deposits, unallocable interest receivable, certain prepaid assets and deferred charges, including income tax related assets, risk management assets related to debt fair value adjustments, corporate headquarters in Houston, Texas and miscellaneous corporate assets (such as information technology, telecommunications equipment and legacy activity) not allocated to the reportable segments.
We do not attribute interest and debt expense to any of our reportable business segments. Following is geographic information regarding the revenues and long-lived assets of our business (in millions):
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Revenues from external customers |  |  |  |  |
U.S. | $ | 13,073 |  |  | $ | 12,459 |  |  | $ | 13,797 |
Canada | 503 |  |  | 483 |  |  | 479 |
Mexico | 129 |  |  | 116 |  |  | 127 |
Total consolidated revenues from external customers | $ | 13,705 |  |  | $ | 13,058 |  |  | $ | 14,403 |
| December 31,
| 2017 |  | 2016 |  | 2015
Long-term assets, excluding goodwill and other intangibles |  |  |  |  |
U.S. | $ | 47,928 |  |  | $ | 49,125 |  |  | $ | 51,679 |
Canada | 3,071 |  |  | 2,399 |  |  | 2,193 |
Mexico | 80 |  |  | 82 |  |  | 67 |
Total consolidated long-lived assets | $ | 51,079 |  |  | $ | 51,606 |  |  | $ | 53,939 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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