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Risk Management (Tables)
 12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
As of December 31, 2018, 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
(21.6
)
MMBbl
Crude oil basis
(13.7
)
MMBbl
Natural gas fixed price
(33.3
)
Bcf
Natural gas basis
(26.1
)
Bcf
Derivatives not designated as hedging contracts
 

 
Crude oil fixed price
(0.5
)
MMBbl
Crude oil basis
(4.5
)
MMBbl
Natural gas fixed price
(4.5
)
Bcf
Natural gas basis
(26.9
)
Bcf
NGL fixed price
(3.2
)
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,
 
 
 
2018
 
2017
 
2018
 
2017
 
Location
 
Fair value
 
Fair value
Derivatives designated as
hedging contracts
 
 
 
 
 
 
 
 
 
Energy commodity derivative contracts
Fair value of derivative contracts/(Other current liabilities)
 
$
135

 
$
65

 
$
(45
)
 
$
(53
)
 
Deferred charges and other assets/(Other long-term liabilities and deferred credits)
 
64

 
14

 
—

 
(24
)
Subtotal
 
 
199

 
79

 
(45
)
 
(77
)
Interest rate contracts
Fair value of derivative contracts/(Other current liabilities)
 
12

 
41

 
(37
)
 
(3
)
 
Deferred charges and other assets/(Other long-term liabilities and deferred credits)
 
121

 
164

 
(78
)
 
(62
)
Subtotal
 
 
133

 
205

 
(115
)
 
(65
)
Foreign currency contracts
Fair value of derivative contracts/(Other current liabilities)
 
91

 
—

 
(6
)
 
(6
)
 
Deferred charges and other assets/(Other long-term liabilities and deferred credits)
 
106

 
166

 
—

 
—

Subtotal
 
 
197

 
166

 
(6
)
 
(6
)
Total
 
 
529

 
450

 
(166
)
 
(148
)
Derivatives not designated as
 hedging contracts
 
 
 

 
 

 
 

 
 

Energy commodity derivative contracts
Fair value of derivative contracts/(Other current liabilities)
 
22

 
8

 
(5
)
 
(22
)
 
Deferred charges and other assets/(Other long-term liabilities and deferred credits)
 
—

 
—

 
—

 
(2
)
Total
 
 
22

 
8

 
(5
)
 
(24
)
Total derivatives
 
 
$
551

 
$
458

 
$
(171
)
 
$
(172
)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Income
The following tables summarize the pre-tax impact of our derivative contracts in 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,
 
 
 
 
2018
 
2017
 
2016
Interest rate contracts
 
Interest, net
 
$
(122
)
 
$
(103
)
 
$
(180
)
 
 
 
 
 
 
 
 
 
Hedged fixed rate debt
 
Interest, net
 
$
113

 
$
105

 
$
160


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,
 
 
2018
 
2017
 
2016
 
 
 
2018
 
2017
 
2016
 
 
 
2018
 
2017
 
2016
Energy commodity derivative contracts
 
$
201

 
$
37

 
$
(182
)
 
Revenues—Natural gas sales
 
$
(29
)
 
$
18

 
$
23

 
Revenues—Natural gas sales
 
$
—

 
$
—

 
$
—

 
 
 

 
 

 
 
 
Revenues—Product sales and other
 
(30
)
 
55

 
233

 
Revenues—Product sales and other
 
(65
)
 
11

 
(12
)
 
 
 

 
 

 
 
 
Costs of sales
 
21

 
14

 
(26
)
 
Costs of sales
 
—

 
—

 
—

Interest rate contracts(c)
 
3

 
—

 
(3
)
 
Interest, net
 
(4
)
 
(5
)
 
(4
)
 
Interest, net
 
—

 
—

 
—

Foreign currency contracts
 
(59
)
 
190

 
21

 
Other, net
 
(67
)
 
186

 
(43
)
 
Other, net
 
—

 
—

 
—

Total
 
$
145

 
$
227

 
$
(164
)
 
Total
 
$
(109
)
 
$
268

 
$
183

 
Total
 
$
(65
)
 
$
11

 
$
(12
)
_______
(a)
We expect to reclassify an approximate $165 million gain associated with cash flow hedge price risk management activities included in our accumulated other comprehensive loss balance as of December 31, 2018 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)
During the year ended December 31, 2018, we recognized a $3 million loss as a result of our equity investment’s forecasted transactions being probable of not occurring and a $21 million gain associated with a write-down of hedged inventory. All other 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 income (loss).

Derivatives in net investment hedging relationships
 
Gain/(loss) recognized in OCI on derivative (effective portion)
 
Location
 
Gain/(loss) reclassified from Accumulated OCI into income (effective portion)(a)
 
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,
 
 
2018
 
2017
 
2016
 
 
 
2018
 
2017
 
2016
 
 
 
2018
 
2017
 
2016
Foreign currency contracts
 
$
91

 
$
—

 
$
—

 
Loss on impairments and divestitures, net
 
$
26

 
$
—

 
$
—

 
Other, net
 
$
—

 
$
—

 
$
—

Total
 
$
91

 
$
—

 
$
—

 
Total
 
$
26

 
$
—

 
$
—

 
Total
 
$
—

 
$
—

 
$
—

_______
(a)
During the year ended December 31, 2018, we recognized a $26 million gain from our accumulated other comprehensive loss balance related to the TMPL Sale. See Note 3.

Derivatives not designated as accounting hedges
 
Location
 
Gain/(loss) recognized in income on derivatives
 
 
 
 
Year Ended December 31,
 
 
 
 
2018
 
2017
 
2016
Energy commodity derivative contracts
 
Revenues—Natural gas sales
 
$
3

 
$
20

 
$
(10
)
 
 
Revenues—Product sales and other
 
(12
)
 
(16
)
 
(26
)
 
 
Costs of sales
 
2

 
—

 
3

Interest rate contracts
 
Interest, net
 
—

 
—

 
63

Total(a)
 
 
 
$
(7
)
 
$
4

 
$
30

________
(a) For the years ended December 31, 2018, 2017 and 2016 includes approximate losses of $4 million and gains of $57 million and $73 million, respectively, associated with natural gas, crude and NGL derivative contract settlements.
Schedule of Accumulated Other Comprehensive Income (Loss)
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 at 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 at 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 at December 31, 2017
(27
)
 
(189
)
 
(325
)
 
(541
)
Other comprehensive gain (loss) before reclassifications
111

 
(89
)
 
(31
)
 
(9
)
Losses reclassified from accumulated other comprehensive loss(a)
84

 
223

 
22

 
329

Impact of adoption of ASU 2018-02 (Note 1)
(4
)
 
(36
)
 
(69
)
 
(109
)
Net current-period other comprehensive income
 (loss)
191

 
98

 
(78
)
 
211

Balance at December 31, 2018
$
164

 
$
(91
)
 
$
(403
)
 
$
(330
)
_______
(a)
Amounts for foreign currency translation adjustments and pension and other postretirement liability adjustments reflect the deferred losses recognized in income during the year ended December 31, 2018 related to the TMPL Sale.