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Share-based Compensation and Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2018

Employee Benefits and Share-based Compensation, Noncash [Abstract]

Summary of Activity and Related Balances of Restricted Stock Awards

The following table sets forth a summary of activity and related balances of our restricted stock awards excluding that issued to non-employee directors (in millions, except share and per share amounts):

	Year Ended							Year Ended							Year Ended
	December 31, 2018							December 31, 2017							December 31, 2016
	Shares			Weighted Average Grant Date Fair Value per Share				Shares			Weighted Average Grant Date Fair Value per Share				Shares			Weighted Average Grant Date Fair Value per Share
Outstanding at beginning of period	10,518,344			$	28.21			9,038,137			$	32.72			7,645,105			$	37.91
Granted	5,389,476			17.73				3,221,691			19.52				2,816,599			21.36
Vested	(2,371,193	)		36.34				(1,501,939	)		36.67				(1,226,652	)		38.53
Forfeited	(382,022	)		23.26				(239,545	)		28.34				(196,915	)		35.74
Outstanding at end of period	13,154,605			22.59				10,518,344			28.21				9,038,137			32.72

Summary of Future Vesting of Outstanding Restricted Stock Awards

Following is a summary of the future vesting of our outstanding restricted stock awards:

Year		Vesting of Restricted Shares
2019		4,048,963
2020		3,537,544
2021		4,814,403
2022		152,104
2023		121,093
Thereafter		480,498
Total Outstanding		13,154,605

Schedule of Benefit Obligation, Plan Assets and Funded Status

Benefit Obligation, Plan Assets and Funded Status. The following table provides information about our pension and OPEB plans as of and for each of the years ended December 31, 2018 and 2017 (in millions):

	Pension Benefits								OPEB
	2018				2017				2018				2017
Change in benefit obligation:
Benefit obligation at beginning of period	$	2,982			$	2,884			$	425			$	473
Service cost	52				40				1				1
Interest cost	84				88				12				13
Actuarial (gain) loss	(172		)		155				(53		)		(16		)
Benefits paid	(175		)		(180		)		(33		)		(38		)
Participant contributions	—				3				1				2
Medicare Part D subsidy receipts	—				—				1				1
Exchange rate changes	—				13				—				1
Settlements	—				(21		)		—				—
Other(a)	(205		)		—				(15		)		(12		)
Benefit obligation at end of period	2,566				2,982				339				425

Change in plan assets:
Fair value of plan assets at beginning of period	2,296				2,160				335				332
Actual return on plan assets	(128		)		292				(5		)		29
Employer contributions	30				32				7				9
Participant contributions	—				3				1				2
Medicare Part D subsidy receipts	—				—				1				1
Benefits paid	(175		)		(180		)		(33		)		(38		)
Exchange rate changes	—				10				—				—
Settlements	—				(21		)		—				—
Other(a)	(159		)		—				—				—
Fair value of plan assets at end of period	1,864				2,296				306				335
Funded status - net liability at December 31,	$	(702	)		$	(686	)		$	(33	)		$	(90	)

_______

(a) 2018 amounts represent December 31, 2017 balances associated with Canadian pension and OPEB plans that were included in the TMPL Sale. 2017 amounts represent December 31, 2016 balances associated with our Plantation Pipeline OPEB plan that are no longer included in these disclosures.

Components of Funded Status

Components of Funded Status. The following table details the amounts recognized in our balance sheets at December 31, 2018 and 2017 related to our pension and OPEB plans (in millions):

	Pension Benefits								OPEB
	2018				2017				2018				2017
Non-current benefit asset(a)	$	—			$	—			$	190			$	198
Current benefit liability	—				—				(13		)		(15		)
Non-current benefit liability	(702		)		(686		)		(210		)		(273		)
Funded status - net liability at December 31,	$	(702	)		$	(686	)		$	(33	)		$	(90	)

_______

(a) 2018 and 2017 OPEB amounts include $32 million and $33 million, respectively, of non-current benefit assets related to a plan we sponsor which is associated with employee services provided to an unconsolidated joint venture, and for which we have recorded an offsetting related party deferred credit.

Schedule of Components of Accumulated Other Comprehensive (Loss) Income

Components of Accumulated Other Comprehensive (Loss) Income. The following table details the amounts of pre-tax accumulated other comprehensive (loss) income at December 31, 2018 and 2017 related to our pension and OPEB plans which are included on our accompanying consolidated balance sheets, including the portion attributable to our noncontrolling interests, (in millions):

	Pension Benefits								OPEB
	2018				2017				2018				2017
Unrecognized net actuarial (loss) gain	$	(653	)		$	(635	)		$	117			$	88
Unrecognized prior service (cost) credit	(3		)		(4		)		14				17
Accumulated other comprehensive (loss) income	$	(656	)		$	(639	)		$	131			$	105

Fair Value of Pension and OPEB Assets by Level of Assets

Listed below are the fair values of our pension and OPEB plans’ assets that are recorded at fair value by class and categorized by fair value measurement used at December 31, 2018 and 2017 (in millions):

	Pension Assets
	2018																2017
	Level 1				Level 2				Level 3				Total				Level 1				Level 2				Level 3				Total
Measured within fair value hierarchy
Cash	$	—			$	—			$	—			$	—			$	6			$	—			$	—			$	6
Short-term investment funds	—				7				—				7				—				65				—				65
Mutual funds(a)	81				—				—				81				245				—				—				245
Equities(b)	227				—				—				227				278				—				—				278
Fixed income securities	—				422				—				422				—				416				—				416
Derivatives	—				6				—				6				—				5				—				5
Subtotal	$	308			$	435			$	—			$	743			$	529			$	486			$	—			$	1,015
Measured at NAV(c)
Common/collective trusts(d)													857																895
Private investment funds(e)													215																337
Private limited partnerships(f)													49																49
Subtotal													1,121																1,281
Total plan assets fair value													$	1,864															$	2,296

_______

(a) Includes mutual funds which are invested in equity.

(b) Plan assets include $94 million and $110 million of KMI Class P common stock for 2018 and 2017, respectively.

(c) Plan assets for which fair value was measured using NAV as a practical expedient.

(d) Common/collective trust funds were invested in approximately 37% fixed income and 63% equity in 2018 and 36% fixed income and 64% equity in 2017.

(e) Private investment funds were invested in approximately 71% fixed income and 29% equity in 2018 and 52% fixed income and 48% equity in 2017.

(f) Includes assets invested in real estate, venture and buyout funds.

	OPEB Assets
	2018																2017
	Level 1				Level 2				Level 3				Total				Level 1				Level 2				Level 3				Total
Measured within fair value hierarchy
Short-term investment funds	$	—			$	4			$	—			$	4			$	—			$	7			$	—			$	7
Equities(a)	—				—				—				—				16				—				—				16
MLPs	—				—				—				—				50				—				—				50
Guaranteed insurance contracts	—				—				51				51				—				—				49				49
Mutual funds	1				—				—				1				1				—				—				1
Subtotal	$	1			$	4			$	51			$	56			$	67			$	7			$	49			$	123
Measured at NAV(b)
Common/collective trusts(c)													250																68
Fixed income trusts													—																66
Limited partnerships(d)													—																78
Subtotal													250																212
Total plan assets fair value													$	306															$	335

_______

(a) Plan assets include $2 million of KMI Class P common stock for 2017.

(b) Plan assets for which fair value was measured using NAV as a practical expedient.

(c) Common/collective trust funds were invested in approximately 60% equity and 40% fixed income securities for 2018 and 71% equity and 29% fixed income securities for 2017.

(d) Limited partnerships were invested in global equity securities.

Schedule of Changes in Plans’ Assets Included in Level 3

The following tables present the changes in our pension and OPEB plans’ assets included in Level 3 for the years ended December 31, 2018 and 2017 (in millions):

	Pension Assets
	Balance at Beginning of Period				Transfers In (Out)				Realized and Unrealized Gains (Losses), net				Purchases (Sales), net				Balance at End of Period
2017
Insurance contracts	$	16			$	—			$	—			$	(16	)		$	—

	OPEB Assets
	Balance at Beginning of Period				Transfers In (Out)				Realized and Unrealized Gains (Losses), net				Purchases (Sales), net				Balance at End of Period
2018
Insurance contracts	$	49			$	—			$	4			$	(2	)		$	51
2017
Insurance contracts	$	47			$	—			$	5			$	(3	)		$	49

Schedule of Expected Payment of Future Benefits and Employer Contributions

Expected Payment of Future Benefits and Employer Contributions. As of December 31, 2018, we expect to make the following benefit payments under our plans (in millions):

Fiscal year		Pension Benefits				OPEB(a)
2019		$	234			$	33
2020		233				32
2021		225				32
2022		223				31
2023		214				29
2024 - 2028		969				127

_______

(a) Includes a reduction of approximately $2 million in each of the years 2019 - 2023 and approximately $13 million in aggregate for 2024 - 2028 for an expected subsidy related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003.

Schedule of Weighted-Average Actuarial Assumptions

Actuarial Assumptions and Sensitivity Analysis. Benefit obligations and net benefit cost are based on actuarial estimates and assumptions. The following table details the weighted-average actuarial assumptions used in determining our benefit obligation and net benefit costs of our pension and OPEB plans for 2018, 2017 and 2016:

		Pension Benefits									OPEB
		2018			2017			2016			2018			2017			2016
Assumptions related to benefit obligations:
Discount rate		4.26	%		3.56	%		3.83	%		4.16	%		3.48	%		3.69	%
Rate of compensation increase		3.50	%		3.53	%		3.52	%		n/a			n/a			n/a
Assumptions related to benefit costs:
Discount rate for benefit obligations		3.56	%		3.83	%		4.05	%		3.48	%		3.69	%		3.91	%
Discount rate for interest on benefit obligations		3.13	%		3.09	%		3.24	%		3.08	%		3.05	%		3.18	%
Discount rate for service cost		3.56	%		3.88	%		4.15	%		3.82	%		4.15	%		4.36	%
Discount rate for interest on service cost		3.14	%		3.24	%		3.50	%		3.76	%		3.95	%		4.17	%
Expected return on plan assets(a)		7.25	%		7.07	%		7.31	%		7.08	%		6.84	%		7.07	%
Rate of compensation increase		3.50	%		3.52	%		3.51	%		n/a			n/a			n/a

_______

(a) The expected return on plan assets listed in the table above is a pre-tax rate of return based on our targeted portfolio of investments. For the OPEB assets subject to unrelated business income taxes (UBIT), we utilize an after-tax expected return on plan assets to determine our benefit costs, which is based on a UBIT rate of 21% for 2018, 2017 and 2016.

Schedule of One-Percentage Point Change in Assumed Health Care Cost Trends

A one-percentage point change in assumed health care cost trends would have the following effects as of December 31, 2018 and 2017 (in millions):

		2018				2017
One-percentage point increase:
Aggregate of service cost and interest cost		$	1			$	1
Accumulated postretirement benefit obligation		16				22
One-percentage point decrease:
Aggregate of service cost and interest cost		$	(1	)		$	(1	)
Accumulated postretirement benefit obligation		(14		)		(19		)

Schedule of Components of Net Benefit Cost and Other Amounts Recognized in Other Comprehensive Income

Components of Net Benefit Cost and Other Amounts Recognized in Other Comprehensive Income. For each of the years ended December 31, the components of net benefit cost and other amounts recognized in pre-tax other comprehensive income related to our pension and OPEB plans are as follows (in millions):

		Pension Benefits												OPEB
		2018				2017				2016				2018				2017				2016
Components of net benefit cost:
Service cost		$	52			$	40			$	36			$	1			$	1			$	1
Interest cost		84				88				89				12				13				16
Expected return on assets		(149		)		(147		)		(151		)		(20		)		(19		)		(19		)
Amortization of prior service cost (credit)		—				1				1				(4		)		(3		)		(3		)
Amortization of net actuarial loss (gain)		40				52				35				(6		)		(6		)		—
Curtailment and settlement loss		—				5				—				—				—				—
Net benefit (credit) cost(a)		27				39				10				(17		)		(14		)		(5		)
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
Net loss (gain) arising during period		105				17				116				(32		)		(25		)		(48		)
Prior service cost (credit) arising during period		—				—				—				—				—				—
Amortization or settlement recognition of net actuarial (loss) gain		(87		)		(64		)		(34		)		3				6				—
Amortization of prior service (cost) credit		(1		)		(1		)		—				3				1				1
Exchange rate changes		—				—				1				—				—				—
Total recognized in total other comprehensive (income) loss		17				(48		)		83				(26		)		(18		)		(47		)
Total recognized in net benefit cost (credit) and other comprehensive (income) loss		$	44			$	(9	)		$	93			$	(43	)		$	(32	)		$	(52	)

_______

(a) 2018 and 2017 OPEB amounts each include $4 million of net benefit credits related to a plan that we sponsor that is associated with employee services provided to an unconsolidated joint venture. We charge or refund these costs or credits associated with this plan to the joint venture as an offset to our net benefit cost or credit and receive our proportionate share of these costs or credits through our share of the equity investee’s earnings.

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