XML 58 R42.htm IDEA: XBRL DOCUMENT v3.8.0.1
Risk Management (Tables)
 12 Months Ended
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments [Table Text Block]
As of December 31, 2017, we had the following outstanding commodity forward contracts to hedge our forecasted energy commodity purchases and sales: 
 
Net open position long/(short)
Derivatives designated as hedging contracts
 
 
Crude oil fixed price
(21.0
)
MMBbl
Crude oil basis
(7.2
)
MMBbl
Natural gas fixed price
(46.4
)
Bcf
Natural gas basis
(21.7
)
Bcf
Derivatives not designated as hedging contracts
 

 
Crude oil fixed price
(1.9
)
MMBbl
Crude oil basis
(1.2
)
MMBbl
Natural gas fixed price
(9.0
)
Bcf
Natural gas basis
(23.1
)
Bcf
NGL fixed price
(4.1
)
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 (in millions):
Fair Value of Derivative Contracts
 
 
 
Asset derivatives
 
Liability derivatives
 
 
 
December 31,
 
December 31,
 
 
 
2017
 
2016
 
2017
 
2016
 
Location
 
Fair value
 
Fair value
Derivatives designated as
hedging contracts
 
 
 
 
 
 
 
 
 
Energy commodity derivative contracts
Fair value of derivative contracts/(Other current liabilities)
 
$
65

 
$
101

 
$
(53
)
 
$
(57
)
 
Deferred charges and other assets/(Other long-term liabilities and deferred credits)
 
14

 
70

 
(24
)
 
(24
)
Subtotal
 
 
79

 
171

 
(77
)
 
(81
)
Interest rate swap agreements
Fair value of derivative contracts/(Other current liabilities)
 
41

 
94

 
(3
)
 
—

 
Deferred charges and other assets/(Other long-term liabilities and deferred credits)
 
164

 
206

 
(62
)
 
(57
)
Subtotal
 
 
205

 
300

 
(65
)
 
(57
)
Cross-currency swap agreements
Fair value of derivative contracts/(Other current liabilities)
 
—

 
—

 
(6
)
 
(7
)
 
Deferred charges and other assets/(Other long-term liabilities and deferred credits)
 
166

 
—

 
—

 
(24
)
Subtotal
 
 
166

 
—

 
(6
)
 
(31
)
Total
 
 
450

 
471

 
(148
)
 
(169
)
Derivatives not designated as
 hedging contracts
 
 
 

 
 

 
 

 
 

Energy commodity derivative contracts
Fair value of derivative contracts/(Other current liabilities)
 
8

 
3

 
(22
)
 
(29
)
 
Deferred charges and other assets/(Other long-term liabilities and deferred credits)
 
—

 
—

 
(2
)
 
(1
)
Total
 
 
8

 
3

 
(24
)
 
(30
)
Total derivatives
 
 
$
458

 
$
474

 
$
(172
)
 
$
(199
)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following tables summarize the impact of our derivative contracts on our accompanying consolidated statements of income (in millions):
Derivatives in fair value hedging relationships
 
Location
 
Gain/(loss) recognized in income on derivatives and related hedged item
 
 
 
 
Year Ended December 31,
 
 
 
 
2017
 
2016
 
2015
Interest rate swap agreements
 
Interest, net
 
$
(103
)
 
$
(180
)
 
$
25

 
 
 
 
 
 
 
 
 
Hedged fixed rate debt
 
Interest, net
 
$
105

 
$
160

 
$
(33
)

Derivatives in cash flow hedging relationships
 
Gain/(loss) recognized in OCI on derivative (effective portion)(a)
 
Location
 
Gain/(loss) reclassified from Accumulated OCI into income (effective portion)(b)
 
Location
 
Gain/(loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
 
Year Ended
 
 
 
Year Ended
 
 
 
Year Ended
 
 
December 31,
 
 
 
December 31,
 
 
 
December 31,
 
 
2017
 
2016
 
2015
 
 
 
2017
 
2016
 
2015
 
 
 
2017
 
2016
 
2015
Energy commodity derivative contracts
 
$
24

 
$
(115
)
 
$
201

 
Revenues—Natural gas sales
 
$
12

 
$
15

 
$
54

 
Revenues—Natural gas sales
 
$
—

 
$
—

 
$
—

 
 
 

 
 

 
 
 
Revenues—Product sales and other
 
35

 
148

 
236

 
Revenues—Product sales and other
 
11

 
(12
)
 
2

 
 
 

 
 

 
 
 
Costs of sales
 
9

 
(17
)
 
(15
)
 
Costs of sales
 
—

 
—

 
—

Interest rate swap agreements(c)
 
—

 
(2
)
 
(4
)
 
Interest, net
 
(3
)
 
(3
)
 
(3
)
 
Interest, net
 
—

 
—

 
—

Cross-currency swap
 
121

 
13

 
(33
)
 
Other, net
 
118

 
(27
)
 
—

 
Other, net
 
—

 
—

 
—

Total
 
$
145

 
$
(104
)
 
$
164

 
Total
 
$
171

 
$
116

 
$
272

 
Total
 
$
11

 
$
(12
)
 
$
2

_______
(a)
We expect to reclassify an approximate $1 million loss associated with cash flow hedge price risk management activities included in our accumulated other comprehensive loss balances as of December 31, 2017 into earnings during the next twelve months (when the associated forecasted transactions 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).
(c)
Amounts represent our share of an equity investee’s accumulated other comprehensive loss.
Derivatives not designated as accounting hedges
 
Location
 
Gain/(loss) recognized in income on derivatives
 
 
 
 
Year Ended December 31,
 
 
 
 
2017
 
2016
 
2015
Energy commodity derivative contracts
 
Revenues—Natural gas sales
 
$
20

 
$
(10
)
 
$
17

 
 
Revenues—Product sales and other
 
(16
)
 
(26
)
 
176

 
 
Costs of sales
 
—

 
3

 
(2
)
Interest rate swap agreements
 
Interest, net
 
—

 
63

 
(15
)
Total(a)
 
 
 
$
4

 
$
30

 
$
176

________
(a) For the years ended December 31, 2017, 2016 and 2015 includes approximate gains of $57 million, $73 million and $31 million, respectively, associated with natural gas, crude and NGL derivative contract settlements.
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
Changes in the components of our “Accumulated other comprehensive loss” not including non-controlling interests 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, 2014
$
327

 
$
(108
)
 
$
(236
)
 
$
(17
)
Other comprehensive gain (loss) before reclassifications
164

 
(214
)
 
(122
)
 
(172
)
Gains reclassified from accumulated other comprehensive loss
(272
)
 
—

 
—

 
(272
)
Net current-period other comprehensive loss
(108
)
 
(214
)
 
(122
)
 
(444
)
Balance as of December 31, 2015
219

 
(322
)
 
(358
)
 
(461
)
Other comprehensive (loss) gain before reclassifications
(104
)
 
34

 
(14
)
 
(84
)
Gains reclassified from accumulated other comprehensive loss
(116
)
 
—

 
—

 
(116
)
Net current-period other comprehensive (loss) income
(220
)
 
34

 
(14
)
 
(200
)
Balance as of December 31, 2016
(1
)
 
(288
)
 
(372
)
 
(661
)
Other comprehensive gain before reclassifications
145

 
55

 
40

 
240

Gains reclassified from accumulated other comprehensive loss
(171
)
 
—

 
—

 
(171
)
KML IPO
—

 
44

 
7

 
51

Net current-period other comprehensive (loss) income
(26
)
 
99

 
47

 
120

Balance as of December 31, 2017
$
(27
)
 
$
(189
)
 
$
(325
)
 
$
(541
)