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Debt (Notes) | 12 Months Ended
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Dec. 31, 2020
Debt Disclosure [Abstract] |
Debt | 9. Debt The following table provides detail on the principal amount of our outstanding debt balances:
| December 31,
| 2020 |  | 2019
| (In millions, unless otherwise stated)
Credit facility and commercial paper borrowings(a) | $ | — |  |  | $ | 37 |
Corporate senior notes(b) |  |  |
6.85%, due February 2020 | — |  |  | 700 |
6.50%, due April 2020 | — |  |  | 535 |
5.30%, due September 2020 | — |  |  | 600 |
6.50%, due September 2020 | — |  |  | 349 |
5.00%, due February 2021 | 750 |  |  | 750 |
3.50%, due March 2021(c) | 750 |  |  | 750 |
5.80%, due March 2021 | 400 |  |  | 400 |
5.00%, due October 2021 | 500 |  |  | 500 |
4.15%, due March 2022 | 375 |  |  | 375 |
1.50%, due March 2022(d) | 917 |  |  | 841 |
3.95%, due September 2022 | 1,000 |  |  | 1,000 |
3.15%, due January 2023 | 1,000 |  |  | 1,000 |
Floating rate, due January 2023(e) | 250 |  |  | 250 |
3.45%, due February 2023 | 625 |  |  | 625 |
3.50%, due September 2023 | 600 |  |  | 600 |
5.625%, due November 2023 | 750 |  |  | 750 |
4.15%, due February 2024 | 650 |  |  | 650 |
4.30%, due May 2024 | 600 |  |  | 600 |
4.25%, due September 2024 | 650 |  |  | 650 |
4.30%, due June 2025 | 1,500 |  |  | 1,500 |
6.70%, due February 2027 | 7 |  |  | 7 |
2.25%, due March 2027(d) | 611 |  |  | 561 |
6.67%, due November 2027 | 7 |  |  | 7 |
4.30%, due March 2028 | 1,250 |  |  | 1,250 |
7.25%, due March 2028 | 32 |  |  | 32 |
6.95%, due June 2028 | 31 |  |  | 31 |
8.05%, due October 2030 | 234 |  |  | 234 |
2.00%, due February 2031(f) | 750 |  |  | — |
7.40%, due March 2031 | 300 |  |  | 300 |
7.80%, due August 2031 | 537 |  |  | 537 |
7.75%, due January 2032 | 1,005 |  |  | 1,005 |
7.75%, due March 2032 | 300 |  |  | 300 |
7.30%, due August 2033 | 500 |  |  | 500 |
5.30%, due December 2034 | 750 |  |  | 750 |
5.80%, due March 2035 | 500 |  |  | 500 |
7.75%, due October 2035 | 1 |  |  | 1 |
6.40%, due January 2036 | 36 |  |  | 36 |
6.50%, due February 2037 | 400 |  |  | 400 |
7.42%, due February 2037 | 47 |  |  | 47 |
6.95%, due January 2038 | 1,175 |  |  | 1,175 |
6.50%, due September 2039 | 600 |  |  | 600 |
6.55%, due September 2040 | 400 |  |  | 400 |
7.50%, due November 2040 | 375 |  |  | 375 |
6.375%, due March 2041 | 600 |  |  | 600 |
5.625%, due September 2041 | 375 |  |  | 375 |
5.00%, due August 2042 | 625 |  |  | 625 |
4.70%, due November 2042 | 475 |  |  | 475 |
5.00%, due March 2043 | 700 |  |  | 700 |
5.50%, due March 2044 | 750 |  |  | 750 |
5.40%, due September 2044 | 550 |  |  | 550 |
5.55%, due June 2045 | 1,750 |  |  | 1,750 |
5.05%, due February 2046 | 800 |  |  | 800 |
(continued) | December 31,
| 2020 |  | 2019
5.20%, due March 2048 | 750 |  |  | 750 |
3.25%, due August 2050(f) | 500 |  |  | — |
7.45%, due March 2098 | 26 |  |  | 26 |
TGP senior notes(b) |  |  |
7.00%, due March 2027 | 300 |  |  | 300 |
7.00%, due October 2028 | 400 |  |  | 400 |
2.90%, due March 2030(g) | 1,000 |  |  | — |
8.375%, due June 2032 | 240 |  |  | 240 |
7.625%, due April 2037 | 300 |  |  | 300 |
EPNG senior notes(b) |  |  |
8.625%, due January 2022 | 260 |  |  | 260 |
7.50%, due November 2026 | 200 |  |  | 200 |
8.375%, due June 2032 | 300 |  |  | 300 |
CIG senior notes(b) |  |  |
4.15%, due August 2026 | 375 |  |  | 375 |
6.85%, due June 2037 | 100 |  |  | 100 |
EPC Building, LLC, promissory note, 3.967%, due January 2020 through December 2035 | 380 |  |  | 395 |
Trust I Preferred Securities, 4.75%, due March 2028(h) | 221 |  |  | 221 |
KMGP, $1,000 Liquidation Value Series A Fixed-to-Floating Rate Term Cumulative Preferred Stock, due August 2057(i) | — |  |  | 100 |
Other miscellaneous debt(j) | 254 |  |  | 258 |
Total debt – KMI and Subsidiaries | 33,396 |  |  | 33,360 |
Less: Current portion of debt(k) | 2,558 |  |  | 2,477 |
Total long-term debt – KMI and Subsidiaries(l) | $ | 30,838 |  |  | $ | 30,883 |
(a)See “—Current portion of debt” below for further details regarding the outstanding credit facility and commercial paper borrowings. (b)Notes provide for the redemption at any time at a price equal to 100% of the principal amount of the notes plus accrued interest to the redemption date plus a make whole premium and are subject to a number of restrictions and covenants. The most restrictive of these include limitations on the incurrence of liens and limitations on sale-leaseback transactions. (c)On January 4, 2021, we repaid our $750 million senior corporate notes. (d)Consists of senior notes denominated in Euros that have been converted to U.S. dollars and are respectively reported above at the December 31, 2020 exchange rate of 1.2216 U.S. dollars per Euro and at the December 31, 2019 exchange rate of 1.1213 U.S. dollars per Euro. As of December 31, 2020 and 2019, the cumulative changes in the exchange rate of U.S. dollars per Euro since issuance had resulted in increases to our debt balance of $102 million and $26 million, respectively, related to the 1.50% series and increases of $68 million and $18 million, respectively, related to the 2.25% series. The cumulative increase in debt due to the changes in exchange rates is offset by a corresponding change in the value of cross-currency swaps reflected in “Deferred charges and other assets” and “Other long-term liabilities and deferred credits” on our accompanying consolidated balance sheets. At the time of issuance, we entered into foreign currency contracts associated with these senior notes, effectively converting these Euro-denominated senior notes to U.S. dollars (see Note 14 “Risk Management—Foreign Currency Risk Management”). (e)During the year ended December 31, 2019, we entered into a floating-to-fixed interest rate swap agreement which was designated as a cash flow hedge. (f)On August 5, 2020, we issued in a registered offering two series of senior notes consisting of $750 million aggregate principal amount of 2.00% senior notes due 2031 and $500 million aggregate principal amount of 3.25% senior notes due 2050 and received combined net proceeds of $1,226 million. (g)On February 24, 2020, TGP issued in a private placement $1,000 million aggregate principal amount of its 2.90% senior notes due 2030 and received net proceeds of $991 million. (h)Capital Trust I (Trust I), is a 100%-owned business trust that as of December 31, 2020, had 4.4 million of 4.75% trust convertible preferred securities outstanding (referred to as the Trust I Preferred Securities). Trust I exists for the sole purpose of issuing preferred securities and investing the proceeds in 4.75% convertible subordinated debentures, which are due 2028. Trust I’s sole source of income is interest earned on these debentures. This interest income is used to pay distributions on the preferred securities. We provide a full and unconditional guarantee of the Trust I Preferred Securities. There are no significant restrictions from these securities on our ability to obtain funds from our subsidiaries by distribution, dividend or loan. The Trust I Preferred Securities are non-voting (except in limited circumstances), pay quarterly distributions at an annual rate of 4.75% and carry a liquidation value of $50 per security plus accrued and unpaid distributions. The Trust I Preferred Securities outstanding as of December 31, 2020 are convertible at any time prior to the close of business on March 31, 2028, at the option of the holder, into the following mixed consideration: (i) 0.7197 of a share of our Class P common stock; and (ii) $25.18 in cash without interest. We have the right to redeem these Trust I Preferred Securities at any time. (i)As of December 31, 2019, KMGP had outstanding 100,000 shares of its $1,000 Liquidation Value Series A Fixed-to-Floating Rate Term Cumulative Preferred Stock due 2057, which was redeemed including accrued dividends on January 15, 2020. (j)Includes finance lease obligations with monthly installments. The lease terms expire between 2024 and 2061. (k)Amounts include KMI outstanding credit facility borrowings, commercial paper borrowings and other debt maturing within 12 months. See “—Current Portion of Debt” below. (l)Excludes our “Debt fair value adjustments” which, as of December 31, 2020 and 2019, increased our combined debt balances by $1,293 million and $1,032 million, respectively. In addition to all unamortized debt discount/premium amounts, debt issuance costs and purchase accounting on our debt balances, our debt fair value adjustments also include amounts associated with the offsetting entry for hedged debt and any unamortized portion of proceeds received from the early termination of interest rate swap agreements. For further information about our debt fair value adjustments, see “—Debt Fair Value Adjustments” below. Current Portion of Debt The following table details the components of our “Current portion of debt” reported on our consolidated balance sheets:
|  | December 31,
|  | 2020 |  | 2019
|  | (In millions, unless otherwise stated)
$4 billion credit facility due November 16, 2023 |  | $ | — |  |  | $ | — |
Commercial paper notes(a) |  | — |  |  | 37 |
Current portion of senior notes |  |  |  |
6.85%, due February 2020 |  | — |  |  | 700 |
6.50%, due April 2020 |  | — |  |  | 535 |
5.30%, due September 2020 |  | — |  |  | 600 |
6.50%, due September 2020 |  | — |  |  | 349 |
5.00%, due February 2021 |  | 750 |  |  | — |
3.50%, due March 2021(b) |  | 750 |  |  | — |
5.80%, due March 2021 |  | 400 |  |  | — |
5.00%, due October 2021 |  | 500 |  |  | — |
Trust I Preferred Securities, 4.75% due March 2028(c) |  | 111 |  |  | 111 |
KMGP, $1,000 Liquidation Value Series A Fixed-to-Floating Rate Term Cumulative Preferred Stock, due August 2057(d) |  | — |  |  | 100 |
Current portion of other debt |  | 47 |  |  | 45 |
Total current portion of debt |  | $ | 2,558 |  |  | $ | 2,477 |
(a)Weighted average interest rates on borrowings outstanding as of December 31, 2019 was 1.90%. (b)On January 4, 2021, we repaid our $750 million senior corporate notes. (c)Reflects the portion of cash consideration payable if all the outstanding securities as of the end of the reporting period were converted by the holders. (d)In December 2019, we notified the holder of our intent to redeem these securities. As our notification was irrevocable, the outstanding balance was classified as current in our accompanying balance sheet as of December 31, 2019. We redeemed these securities including accrued dividends on January 15, 2020. We and substantially all of our wholly owned domestic subsidiaries are a party to a cross guarantee agreement whereby each party to the agreement unconditionally guarantees, jointly and severally, the payment of specified indebtedness of each other party to the agreement. Credit Facility and Restrictive Covenants As of December 31, 2020, we had borrowing capacity of approximately $3.9 billion under our $4 billion revolving credit facility. We also continue to maintain a $4 billion commercial paper program through the private placement of short-term notes. The notes mature up to 270 days from the date of issue and are not redeemable or subject to voluntary prepayment by us prior to maturity. The notes are sold at par value less a discount representing an interest factor or if interest bearing, at par. Borrowings under our revolving credit facility can be used for working capital and other general corporate purposes and as a backup to our commercial paper program. Borrowings under our commercial paper program reduce the borrowings allowed under our credit facility. Depending on the type of loan request, our credit facility borrowings under our credit facility bear interest at either (i) LIBOR adjusted for a eurocurrency funding reserve plus an applicable margin ranging from 1.000% to 2.000% per annum based on our credit ratings or (ii) the greatest of (1) the Federal Funds Rate plus 0.5%; (2) the Prime Rate; or (3) LIBOR for a one-month eurodollar loan adjusted for a eurocurrency funding reserve, plus 1%, plus, in each case, an applicable margin ranging from 0.100% to 1.000% per annum based on our credit rating. Standby fees for the unused portion of the credit facility will be calculated at a rate ranging from 0.100% to 0.300%. Our credit facility contains financial and various other covenants that apply to us and our subsidiaries and are common in such agreements, including a maximum ratio of Consolidated Net Indebtedness to Consolidated EBITDA (as defined in the credit facility) of 5.50 to 1.00, for any four-fiscal-quarter period. Other negative covenants include restrictions on our and certain of our subsidiaries’ ability to incur debt, grant liens, make fundamental changes or engage in certain transactions with affiliates, or in the case of certain material subsidiaries, permit restrictions on dividends, distributions or making or prepayments of loans to us or any guarantor. Our credit facility also restricts our ability to make certain restricted payments if an event of default (as defined in the credit facility) has occurred and is continuing or would occur and be continuing. As of December 31, 2020, we had no borrowings outstanding under our credit facility, no borrowings outstanding under our commercial paper program and $82 million in letters of credit. Our availability under this facility as of December 31, 2020 was approximately $3.9 billion. As of December 31, 2020, we were in compliance with all required covenants. Maturities of Debt The scheduled maturities of the outstanding debt balances, excluding debt fair value adjustments as of December 31, 2020, are summarized as follows:
Year |  | Total
|  | (In millions)
2021 |  | $ | 2,558 |
2022 |  | 2,575 |
2023 |  | 3,250 |
2024 |  | 1,925 |
2025 |  | 1,566 |
Thereafter |  | 21,522 |
Total |  | $ | 33,396 |
Debt Fair Value Adjustments The following table summarizes the “Debt fair value adjustments” included on our accompanying consolidated balance sheets:
|  | December 31,
|  | 2020 |  | 2019
|  | (In millions)
Purchase accounting debt fair value adjustments |  | $ | 546 |  |  | $ | 599 |
Carrying value adjustment to hedged debt |  | 702 |  |  | 359 |
Unamortized portion of proceeds received from the early termination of interest rate swap agreements(a) |  | 240 |  |  | 257 |
Unamortized debt discounts, net |  | (76) |  |  | (67) |
Unamortized debt issuance costs |  | (119) |  |  | (116) |
Total debt fair value adjustments |  | $ | 1,293 |  |  | $ | 1,032 |
(a) As of December 31, 2020, the weighted-average amortization period of the unamortized premium from the termination of interest rate swaps was approximately 14 years. Fair Value of Financial Instruments The carrying value and estimated fair value of our outstanding debt balances is disclosed below:
| December 31, 2020 |  | December 31, 2019
| Carrying value |  | Estimated fair value |  | Carrying value |  | Estimated fair value
| (In millions)
Total debt | $ | 34,689 |  |  | $ | 39,622 |  |  | $ | 34,392 |  |  | $ | 38,016 |
We used Level 2 input values to measure the estimated fair value of our outstanding debt balance as of both December 31, 2020 and 2019. Interest Rates, Interest Rate Swaps and Contingent Debt The weighted average interest rate on all of our borrowings was 4.86% during 2020 and 5.27% during 2019. Information on our interest rate swaps is contained in Note 14. For information about our contingent debt agreements, see Note 13 “Commitments and Contingent Liabilities—Contingent Debt”).

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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