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Reportable Segments (Notes) | 12 Months Ended
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Dec. 31, 2019
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 gathering systems and natural gas processing and treating facilities; (iii) NGL fractionation facilities and transportation systems; and (iv) LNG liquefaction and storage facilities;
• | Products Pipelines—the ownership and operation of refined petroleum products, 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;
• | Terminals—the ownership and/or operation of (i) liquids and bulk terminal facilities located throughout the U.S. and portions of Canada (prior to the sale of KML in December 2019) that store and handle various commodities including gasoline, diesel fuel, chemicals, ethanol, metals and petroleum coke; and (ii) Jones Act-qualified tankers;
• | CO 2—(i) the production, transportation and marketing of CO 2 to oil fields that use CO 2 as a flooding medium to increase recovery and production of crude oil from mature oil fields; (ii) ownership interests in and/or operation of oil fields and gasoline processing plants in West Texas; and (iii) the ownership and operation of a crude oil pipeline system in West Texas; and
• | Kinder Morgan Canada (prior to August 31, 2018)—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. As a result of the TMPL Sale, this segment does not have results of operations on a prospective basis.
We evaluate performance principally based on each segment’s EBDA, which excludes general and administrative expenses and corporate charges, 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 book value. For segment reporting purposes, effective January 1, 2019, certain assets were transferred among our business segments. As a result, individual segment results for the years ended December 31, 2018 and 2017 and balances as of December 31, 2018 have been reclassified to conform to the current presentation in the following tables. Revenues, Segment EBDA and Assets previously reported (before reclassifications) for the years ended December 31, 2018 and 2017 and as of December 31, 2018 are discussed further in the footnotes to the tables below. During 2019, 2018 and 2017, 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,
| 2019 |  | 2018 |  | 2017
Revenues |  |  |  |  |
Natural Gas Pipelines |  |  |  |  |
Revenues from external customers | $ | 8,128 |  |  | $ | 8,807 |  |  | $ | 8,502 |
Intersegment revenues | 42 |  |  | 48 |  |  | 22 |
Products Pipelines | 1,831 |  |  | 1,887 |  |  | 1,744 |
Terminals |  |  |  |  |  |
Revenues from external customers | 2,031 |  |  | 2,025 |  |  | 1,972 |
Intersegment revenues | 3 |  |  | 2 |  |  | 2 |
CO 2 | 1,219 |  |  | 1,255 |  |  | 1,196 |
Kinder Morgan Canada | — |  |  | 170 |  |  | 256 |
Corporate and intersegment eliminations(a) | (45 | ) |  | (50 | ) |  | 11 |
Total consolidated revenues(b) | $ | 13,209 |  |  | $ | 14,144 |  |  | $ | 13,705 |
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Operating expenses(c) |  |  |  |  |
Natural Gas Pipelines | $ | 4,213 |  |  | $ | 5,218 |  |  | $ | 5,371 |
Products Pipelines | 684 |  |  | 748 |  |  | 564 |
Terminals | 888 |  |  | 823 |  |  | 793 |
CO 2 | 496 |  |  | 453 |  |  | 394 |
Kinder Morgan Canada | — |  |  | 72 |  |  | 95 |
Corporate and intersegment eliminations | (1 | ) |  | (26 | ) |  | (2 | )
Total consolidated operating expenses | $ | 6,280 |  |  | $ | 7,288 |  |  | $ | 7,215 |
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Other (income) expense(d) |  |  |  |  |
Natural Gas Pipelines | $ | (680 | ) |  | $ | 629 |  |  | $ | 26 |
Products Pipelines | — |  |  | (2 | ) |  | — |
Terminals | (342 | ) |  | 54 |  |  | (14 | )
CO 2 | 77 |  |  | 79 |  |  | (1 | )
Kinder Morgan Canada | 2 |  |  | (596 | ) |  | — |
Corporate | (2 | ) |  | — |  |  | 1 |
Total consolidated other (income) expense | $ | (945 | ) |  | $ | 164 |  |  | $ | 12 |
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
DD&A |  |  |  |  |
Natural Gas Pipelines | $ | 1,005 |  |  | $ | 955 |  |  | $ | 909 |
Products Pipelines | 338 |  |  | 326 |  |  | 310 |
Terminals | 494 |  |  | 489 |  |  | 480 |
CO 2 | 548 |  |  | 473 |  |  | 493 |
Kinder Morgan Canada | — |  |  | 29 |  |  | 46 |
Corporate | 26 |  |  | 25 |  |  | 23 |
Total consolidated DD&A | $ | 2,411 |  |  | $ | 2,297 |  |  | $ | 2,261 |
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Earnings (loss) from equity investments and amortization of excess cost of equity investments, including loss on impairments of equity investments |  |  |  |  |
Natural Gas Pipelines | $ | (101 | ) |  | $ | 410 |  |  | $ | 258 |
Products Pipelines | 63 |  |  | 56 |  |  | 43 |
Terminals | 23 |  |  | 22 |  |  | 24 |
CO 2 | 33 |  |  | 34 |  |  | 42 |
Total consolidated equity earnings | $ | 18 |  |  | $ | 522 |  |  | $ | 367 |
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Other, net-income (expense) |  |  |  |  |
Natural Gas Pipelines | $ | 53 |  |  | $ | 39 |  |  | $ | 44 |
Products Pipelines | 6 |  |  | 2 |  |  | 4 |
Terminals | (5 | ) |  | 3 |  |  | 8 |
Kinder Morgan Canada | — |  |  | 26 |  |  | 25 |
Corporate | 21 |  |  | 37 |  |  | 16 |
Total consolidated other, net-income (expense) | $ | 75 |  |  | $ | 107 |  |  | $ | 97 |
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Segment EBDA(e) |  |  |  |  |
Natural Gas Pipelines | $ | 4,661 |  |  | $ | 3,540 |  |  | $ | 3,478 |
Products Pipelines | 1,225 |  |  | 1,209 |  |  | 1,237 |
Terminals | 1,506 |  |  | 1,175 |  |  | 1,227 |
CO 2 | 681 |  |  | 759 |  |  | 847 |
Kinder Morgan Canada | (2 | ) |  | 720 |  |  | 186 |
Total Segment EBDA(f) | 8,071 |  |  | 7,403 |  |  | 6,975 |
DD&A | (2,411 | ) |  | (2,297 | ) |  | (2,261 | )
Amortization of excess cost of equity investments | (83 | ) |  | (95 | ) |  | (61 | )
General and administrative and corporate charges | (611 | ) |  | (588 | ) |  | (660 | )
Interest, net | (1,801 | ) |  | (1,917 | ) |  | (1,832 | )
Income tax expense | (926 | ) |  | (587 | ) |  | (1,938 | )
Total consolidated net income | $ | 2,239 |  |  | $ | 1,919 |  |  | $ | 223 |
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Capital expenditures |  |  |  |  |
Natural Gas Pipelines | $ | 1,377 |  |  | $ | 1,565 |  |  | $ | 1,349 |
Products Pipelines | 175 |  |  | 199 |  |  | 149 |
Terminals | 347 |  |  | 386 |  |  | 893 |
CO 2 | 349 |  |  | 397 |  |  | 436 |
Kinder Morgan Canada | — |  |  | 332 |  |  | 338 |
Corporate | 22 |  |  | 25 |  |  | 23 |
Total consolidated capital expenditures | $ | 2,270 |  |  | $ | 2,904 |  |  | $ | 3,188 |
| December 31,
| 2019 |  | 2018
Investments |  |  |
Natural Gas Pipelines | $ | 6,991 |  |  | $ | 6,709 |
Products Pipelines | 491 |  |  | 488 |
Terminals | 251 |  |  | 268 |
CO 2 | 26 |  |  | 16 |
Total consolidated investments | $ | 7,759 |  |  | $ | 7,481 |
| December 31,
| 2019 |  | 2018
Assets |  |  |
Natural Gas Pipelines | $ | 50,310 |  |  | $ | 50,261 |
Products Pipelines | 9,468 |  |  | 9,598 |
Terminals | 8,890 |  |  | 9,415 |
CO 2 | 3,523 |  |  | 3,928 |
Corporate assets(g) | 1,966 |  |  | 5,664 |
Total consolidated assets(h) | $ | 74,157 |  |  | $ | 78,866 |
_______
(a) | 2017 amount includes a management fee of $35 million for services we perform as operator of an equity investee.
(b) | Revenues previously reported (before reclassifications) for the year ended December 31, 2018 were $9,015 million, $1,713 million, $2,019 million and $(28) million and for the year ended December 31, 2017 were $8,618 million, $1,661 million, $1,966 million and $8 million for the Natural Gas Pipelines, Products Pipelines and Terminals business segments, and the Corporate and intersegment eliminations, respectively.
(c) | Includes costs of sales, operations and maintenance expenses, and taxes, other than income taxes.
(d) | Includes (gain) loss on divestitures and impairments, net and other income, net.
(e) | Includes revenues, earnings from equity investments, and other, net, less operating expenses, (gain) loss on divestitures and impairments, net and other income, net.
(f) | Segment EBDA previously reported (before reclassifications) for the year ended December 31, 2018 were $3,580 million, $1,173 million and $1,171 million and for the year ended December 31, 2017 were $3,487 million, $1,231 million and $1,224 million for the Natural Gas Pipelines, Products Pipelines and Terminals business segments, respectively.
(g) | Includes cash and cash equivalents, margin and restricted deposits, 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 our reportable segments.
(h) | Assets previously reported as of December 31, 2018 were $51,562 million, $8,429 million and $9,283 million for the Natural Gas Pipelines, Products Pipelines and Terminals business segments, respectively. The reclassification included a transfer of $450 million of goodwill from the Natural Gas Pipelines Non-Regulated reporting unit to the Products Pipelines reporting unit.
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,
| 2019 |  | 2018 |  | 2017
Revenues from external customers |  |  |  |  |
U.S. | $ | 12,833 |  |  | $ | 13,596 |  |  | $ | 13,073 |
Canada | 300 |  |  | 447 |  |  | 503 |
Mexico and other foreign | 76 |  |  | 101 |  |  | 129 |
Total consolidated revenues from external customers | $ | 13,209 |  |  | $ | 14,144 |  |  | $ | 13,705 |
| December 31,
| 2019 |  | 2018 |  | 2017
Long-term assets, excluding goodwill and other intangibles |  |  |  |  |
U.S. | $ | 46,709 |  |  | $ | 47,468 |  |  | $ | 47,928 |
Canada | 1 |  |  | 748 |  |  | 3,071 |
Mexico and other foreign | 82 |  |  | 83 |  |  | 80 |
Total consolidated long-lived assets | $ | 46,792 |  |  | $ | 48,299 |  |  | $ | 51,079 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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