XML 35 R14.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes |
5. | Income Taxes
The components of “Income Before Income Taxes” are as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (In millions)
U.S. | $ | 3,192 |  |  | $ | 3,318 |  |  | $ | 2,217 |
Foreign | 9 |  |  | 17 |  |  | 2 |
Total Income Before Income Taxes | $ | 3,201 |  |  | $ | 3,335 |  |  | $ | 2,219 |
Components of the income tax provision applicable for federal, foreign and state taxes are as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (In millions)
Current tax expense |  |  |  |  |
State | $ | 5 |  |  | $ | 14 |  |  | $ | 11 |
Foreign | — |  |  | 4 |  |  | 3 |
Total | 5 |  |  | 18 |  |  | 14 |
Deferred tax expense |  |  |  |  |
Federal | 619 |  |  | 642 |  |  | 334 |
State | 91 |  |  | 50 |  |  | 21 |
Total | 710 |  |  | 692 |  |  | 355 |
Total tax provision | $ | 715 |  |  | $ | 710 |  |  | $ | 369 |
The difference between the statutory federal income tax rate and our effective income tax rate is summarized as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (In millions, except percentages)
Federal income tax | $ | 672 |  |  | 21.0 | % |  | $ | 700 |  |  | 21.0 | % |  | $ | 466 |  |  | 21.0 | %
Increase (decrease) as a result of: |  |  |  |  |  |  |  |  |  |  |
State income tax, net of federal benefit | 64 |  |  | 2.0 | % |  | 69 |  |  | 2.0 | % |  | 50 |  |  | 2.2 | %
Dividend received deduction | (34) |  |  | (1.1) | % |  | (36) |  |  | (1.1) | % |  | (46) |  |  | (2.1) | %
Release of valuation allowance | — |  |  | — | % |  | — |  |  | — | % |  | (38) |  |  | (1.7) | %
General business credit | (1) |  |  | — | % |  | — |  |  | — | % |  | (36) |  |  | (1.6) | %
Other | 14 |  |  | 0.4 | % |  | (23) |  |  | (0.7) | % |  | (27) |  |  | (1.2) | %
Total | $ | 715 |  |  | 22.3 | % |  | $ | 710 |  |  | 21.2 | % |  | $ | 369 |  |  | 16.6 | %
Deferred tax assets and liabilities result from the following:
| December 31,
| 2023 |  | 2022
| (In millions)
Deferred tax assets |  |  |
Employee benefits | $ | 114 |  |  | $ | 116 |
Net operating loss carryforwards | 2,024 |  |  | 2,007 |
Tax credit carryforwards | 300 |  |  | 303 |
Interest expense limitation | 266 |  |  | 82 |
Other | 181 |  |  | 192 |
Valuation allowances | (77) |  |  | (79) |
Total deferred tax assets | 2,808 |  |  | 2,621 |
Deferred tax liabilities |  |  |
Property, plant and equipment | 215 |  |  | 163 |
Investments(a) | 3,951 |  |  | 3,056 |
Other | 30 |  |  | 25 |
Total deferred tax liabilities | 4,196 |  |  | 3,244 |
Net deferred tax liability | $ | (1,388) |  |  | $ | (623) |
(a)Amounts as of December 31, 2023 and 2022 are primarily associated with KMI’s investment in KMP. Deferred Tax Assets and Valuation Allowances A reconciliation of our valuation allowances for the year ended December 31, 2023 is as follows:
|  | Year Ended December 31, 2023 |  |  |  |
|  | (In millions)
Balance at beginning of period |  | $ | 79 |  |  |  |  |
Statute expirations for state NOL and foreign tax credits |  | (5) |  |  |  |  |
Currency fluctuation |  | 3 |  |  |  |  |
Balance at end of period |  | $ | 77 |  |  |  |  |
The following table provides details related to our deferred tax assets and valuation allowances as of December 31, 2023:
|  | Unused Amount |  | Deferred Tax Asset |  | Valuation Allowance |  | Expiration Period
|  | (In millions) |  |
Net Operating Loss |  |  |  |  |  |  |  |
U.S. federal net operating loss |  | $ | 6,565 |  |  | $ | 1,379 |  |  | $ | — |  |  | Indefinite
U.S. federal net operating loss |  | 1,716 |  |  | 360 |  |  | — |  |  | 2035 - 2037
State losses |  | 5,293 |  |  | 254 |  |  | (46) |  |  | 2024 - 2043
Foreign losses |  | 90 |  |  | 31 |  |  | (31) |  |  | Indefinite
Tax Credits |  |  |  |  |  |  |  |
General business credits |  | 300 |  |  | 300 |  |  | — |  |  | 2036 - 2042
Use of a portion of our U.S. federal carryforwards is subject to the limitations provided under Sections 382 and 383 of the Internal Revenue Code as well as the separate return limitation rules of Internal Revenue Service regulations. If certain substantial changes in our ownership occur, there would be an annual limitation on the amount of carryforwards that could be utilized. Unrecognized Tax Benefits: We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based not only on the technical merits of the tax position based on tax law, but also the past administrative practices and precedents of the taxing authority. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. A reconciliation of our gross unrecognized tax benefit excluding interest and penalties is as follows:
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
|  | (In millions)
Balance at beginning of period |  | $ | 23 |  |  | $ | 21 |  |  | $ | 18 |
Reductions based on statute expirations |  | (5) |  |  | (5) |  |  | — |
Audit settlement |  | (1) |  |  | — |  |  | — |
Additions to state reserves for prior years |  | 1 |  |  | 7 |  |  | 3 |
Balance at end of period |  | $ | 18 |  |  | $ | 23 |  |  | $ | 21 |
Amounts which, if recognized, would affect the effective tax rate |  | $ | 18 |  |  |  |  |
In addition, we believe it is reasonably possible that our liability for unrecognized tax benefits will increase by $4 million during the next year, primarily due to additions for state filing positions taken in prior years, offset by releases from statute expirations. The following table summarizes information of our open tax years:
Jurisdiction |  | Open Tax Year
U.S. |  | 2019 - 2023
Various states |  | 2012 - 2023
Foreign |  | 2008 - 2023

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration