Guarantees [Text Block] | Guarantee of Securities of Subsidiaries KMI, along with its direct subsidiary KMP, are issuers of certain public debt securities. KMI, KMP and substantially all of KMI’s wholly owned domestic subsidiaries, are parties 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. Accordingly, with the exception of certain subsidiaries identified as Subsidiary Non-Guarantors, the parent issuer, subsidiary issuer and other subsidiaries are all guarantors of each series of public debt. As a result of the cross guarantee agreement, a holder of any of the guaranteed public debt securities issued by KMI or KMP are in the same position with respect to the net assets, income and cash flows of KMI and the Subsidiary Issuer and Guarantors. The only amounts that are not available to the holders of each of the guaranteed public debt securities to satisfy the repayment of such securities are the net assets, income and cash flows of the Subsidiary Non-Guarantors. In lieu of providing separate financial statements for subsidiary issuer and guarantor, we have included the accompanying condensed consolidating financial statements based on Rule 3-10 of the SEC’s Regulation S-X. We have presented each of the parent and subsidiary issuer in separate columns in this single set of condensed consolidating financial statements. On September 30, 2016, Copano (previously reflected as a Subsidiary Issuer and Guarantor) repaid the $332 million principal amount of its 7.125% senior notes due 2021. Copano continues to be a subsidiary guarantor under the cross guarantee agreement mentioned above. For all periods presented, financial statement balances and activities for Copano are now reflected within the Subsidiary Guarantor column, and the Subsidiary Issuer and Guarantor-Copano column has been eliminated. On September 1, 2016, we sold a 50% equity interest in SNG (see further details discussed in Note 2, “Acquisitions and Divestiture”). Subsequent to the transaction, we deconsolidated SNG and now account for our equity interest in SNG as an equity investment. Our wholly owned subsidiary which holds our interest in SNG is reflected within the Subsidiary Guarantors column of these condensed consolidating financial statements. Excluding fair value adjustments, as of September 30, 2016 , Parent Issuer and Guarantor, Subsidiary Issuer and Guarantor-KMP, and Subsidiary Guarantors had $14,325 million , $19,485 million , and $4,947 million , respectively, of Guaranteed Notes outstanding. Included in the Subsidiary Guarantors debt balance as presented in the accompanying September 30, 2016 condensed consolidating balance sheets is approximately $171 million of capital lease obligation that is not subject to the cross guarantee agreement. The accounts within the Parent Issuer and Guarantor, Subsidiary Issuer and Guarantor-KMP, Subsidiary Guarantors and Subsidiary Non-Guarantors are presented using the equity method of accounting for investments in subsidiaries, including subsidiaries that are guarantors and non-guarantors, for purposes of these condensed consolidating financial statements only. These intercompany investments and related activity eliminate in consolidation and are presented separately in the accompanying balance sheets and statements of income and cash flows. A significant amount of each Issuers’ income and cash flow is generated by its respective subsidiaries. As a result, the funds necessary to meet its debt service and/or guarantee obligations are provided in large part by distributions or advances it receives from its respective subsidiaries. We utilize a centralized cash pooling program among our majority-owned and consolidated subsidiaries, including the Subsidiary Issuers and Guarantors and Subsidiary Non-Guarantors. The following Condensed Consolidating Statements of Cash Flows present the intercompany loan and distribution activity, as well as cash collection and payments made on behalf of our subsidiaries, as cash activities. Effective December 31, 2015, Kinder Morgan (Delaware), Inc. and Kinder Morgan Services LLC merged into KMI. As a result of such merger, both entities are no longer Subsidiary Guarantors, and for all periods presented, financial statement balances and activities for Kinder Morgan (Delaware), Inc. and Kinder Morgan Services LLC are reflected within the Parent Issuer and Guarantor column. Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended September 30, 2016 (In Millions) (Unaudited) Parent Subsidiary Subsidiary Subsidiary Consolidating Adjustments Consolidated KMI Total Revenues $ 9 $ — $ 2,953 $ 386 $ (18 ) $ 3,330 Operating Costs, Expenses and Other Costs of sales — — 916 61 (6 ) 971 Depreciation, depletion and amortization 4 — 466 79 — 549 Other operating expenses 663 — 145 132 (12 ) 928 Total Operating Costs, Expenses and Other 667 — 1,527 272 (18 ) 2,448 Operating (loss) income (658 ) — 1,426 114 — 882 Other Income (Expense) Earnings from consolidated subsidiaries 963 1,004 99 14 (2,080 ) — Losses from equity investments — — (213 ) — — (213 ) Interest, net (173 ) (6 ) (281 ) (12 ) — (472 ) Amortization of excess cost of equity investments and other, net (1 ) — (6 ) 4 — (3 ) Income Before Income Taxes 131 998 1,025 120 (2,080 ) 194 Income Tax Expense (319 ) (2 ) (22 ) (34 ) — (377 ) Net (Loss) Income (188 ) 996 1,003 86 (2,080 ) (183 ) Net Income Attributable to Noncontrolling Interests — — — — (5 ) (5 ) Net (Loss) Income Attributable to Controlling Interests (188 ) 996 1,003 86 (2,085 ) (188 ) Preferred Stock Dividends (39 ) — — — — (39 ) Net (Loss) Income Available to Common Stockholders $ (227 ) $ 996 $ 1,003 $ 86 $ (2,085 ) $ (227 ) Net (Loss) Income $ (188 ) $ 996 $ 1,003 $ 86 $ (2,080 ) $ (183 ) Total other comprehensive loss (3 ) (47 ) (32 ) (31 ) 110 (3 ) Comprehensive (loss) income (191 ) 949 971 55 (1,970 ) (186 ) Comprehensive income attributable to noncontrolling interests — — — — (5 ) (5 ) Comprehensive (loss) income attributable to controlling interests $ (191 ) $ 949 $ 971 $ 55 $ (1,975 ) $ (191 ) Condensed Consolidating Statements of Income and Comprehensive Income for the Three Months Ended September 30, 2015 (In Millions) (Unaudited) Parent Subsidiary Subsidiary Subsidiary Consolidating Adjustments Consolidated KMI Total Revenues $ 9 $ — $ 3,298 $ 412 $ (12 ) $ 3,707 Operating Costs, Expenses and Other Costs of sales — — 1,007 98 1 1,106 Depreciation, depletion and amortization 6 — 515 96 — 617 Other operating expenses 16 1 1,101 158 (13 ) 1,263 Total Operating Costs, Expenses and Other 22 1 2,623 352 (12 ) 2,986 Operating (loss) income (13 ) (1 ) 675 60 — 721 Other Income (Expense) Earnings from consolidated subsidiaries 498 484 40 10 (1,032 ) — Earnings from equity investments — — 114 — — 114 Interest, net (208 ) 23 (340 ) (15 ) — (540 ) Amortization of excess cost of equity investments and other, net — — (5 ) 1 — (4 ) Income Before Income Taxes 277 506 484 56 (1,032 ) 291 Income Tax Expense (91 ) (2 ) (14 ) (1 ) — (108 ) Net Income 186 504 470 55 (1,032 ) 183 Net Loss Attributable to Noncontrolling Interests — — — — 3 3 Net Income Attributable to Controlling Interests $ 186 $ 504 $ 470 $ 55 $ (1,029 ) $ 186 Net Income $ 186 $ 504 $ 470 $ 55 $ (1,032 ) $ 183 Total other comprehensive loss (37 ) (42 ) (7 ) (125 ) 174 (37 ) Comprehensive income (loss) 149 462 463 (70 ) (858 ) 146 Comprehensive loss attributable to noncontrolling interests — — — — 3 3 Comprehensive income (loss) attributable to controlling interests $ 149 $ 462 $ 463 $ (70 ) $ (855 ) $ 149 Condensed Consolidating Statements of Income and Comprehensive Income for the Nine Months Ended September 30, 2016 (In Millions) (Unaudited) Parent Subsidiary Subsidiary Subsidiary Consolidating Adjustments Consolidated KMI Total Revenues $ 26 $ — $ 8,555 $ 1,127 $ (39 ) $ 9,669 Operating Costs, Expenses and Other Costs of sales — — 2,261 197 (4 ) 2,454 Depreciation, depletion and amortization 13 — 1,400 239 — 1,652 Other operating expenses 712 4 1,644 600 (35 ) 2,925 Total Operating Costs, Expenses and Other 725 4 5,305 1,036 (39 ) 7,031 Operating (loss) income (699 ) (4 ) 3,250 91 — 2,638 Other Income (Expense) Earnings from consolidated subsidiaries 2,373 2,335 174 45 (4,927 ) — Losses from equity investments — — (1 ) — — (1 ) Interest, net (519 ) 91 (918 ) (38 ) — (1,384 ) Amortization of excess cost of equity investments and other, net — — (17 ) 14 — (3 ) Income Before Income Taxes 1,155 2,422 2,488 112 (4,927 ) 1,250 Income Tax Expense (656 ) (5 ) (32 ) (51 ) — (744 ) Net Income 499 2,417 2,456 61 (4,927 ) 506 Net Income Attributable to Noncontrolling Interests — — — — (7 ) (7 ) Net Income Attributable to Controlling Interests 499 2,417 2,456 61 (4,934 ) 499 Preferred Stock Dividends (117 ) — — — — (117 ) Net Income Available to Common Stockholders $ 382 $ 2,417 $ 2,456 $ 61 $ (4,934 ) $ 382 Net Income $ 499 $ 2,417 $ 2,456 $ 61 $ (4,927 ) $ 506 Total other comprehensive (loss) income (96 ) (208 ) (261 ) 101 368 (96 ) Comprehensive income 403 2,209 2,195 162 (4,559 ) 410 Comprehensive income attributable to noncontrolling interests — — — — (7 ) (7 ) Comprehensive income attributable to controlling interests $ 403 $ 2,209 $ 2,195 $ 162 $ (4,566 ) $ 403 Condensed Consolidating Statements of Income and Comprehensive Income for the Nine Months Ended September 30, 2015 (In Millions) (Unaudited) Parent Subsidiary Subsidiary Subsidiary Consolidating Adjustments Consolidated KMI Total Revenues $ 28 $ — $ 9,591 $ 1,184 $ (36 ) $ 10,767 Operating Costs, Expenses and Other Costs of sales — — 2,999 280 2 3,281 Depreciation, depletion and amortization 16 — 1,446 263 — 1,725 Other operating expenses 66 39 2,560 443 (38 ) 3,070 Total Operating Costs, Expenses and Other 82 39 7,005 986 (36 ) 8,076 Operating (loss) income (54 ) (39 ) 2,586 198 — 2,691 Other Income (Expense) Earnings from consolidated subsidiaries 1,980 2,033 188 41 (4,242 ) — Earnings from equity investments — — 304 — — 304 Interest, net (512 ) 30 (1,013 ) (29 ) — (1,524 ) Amortization of excess cost of equity investments and other, net — — (13 ) 7 — (6 ) Income Before Income Taxes 1,414 2,024 2,052 217 (4,242 ) 1,465 Income Tax Expense (466 ) (6 ) (39 ) (10 ) — (521 ) Net Income 948 2,018 2,013 207 (4,242 ) 944 Net Loss Attributable to Noncontrolling Interests — — — — 4 4 Net Income Attributable to Controlling Interests 948 2,018 2,013 207 (4,238 ) 948 Net Income $ 948 $ 2,018 $ 2,013 $ 207 $ (4,242 ) $ 944 Total other comprehensive loss (311 ) (419 ) (351 ) (266 ) 1,036 (311 ) Comprehensive income (loss) 637 1,599 1,662 (59 ) (3,206 ) 633 Comprehensive loss attributable to noncontrolling interests — — — — 4 4 Comprehensive income (loss) attributable to controlling interests $ 637 $ 1,599 $ 1,662 $ (59 ) $ (3,202 ) $ 637 Condensed Consolidating Balance Sheets as of December 31, 2015 (In Millions) Parent Subsidiary Subsidiary Subsidiary Consolidating Adjustments Consolidated KMI ASSETS Cash and cash equivalents $ 123 $ — $ 12 $ 142 $ (48 ) $ 229 Other current assets - affiliates 2,233 1,600 9,410 688 (13,931 ) — All other current assets 126 119 2,161 195 (6 ) 2,595 Property, plant and equipment, net 252 — 33,032 7,263 — 40,547 Investments 16 2 5,906 116 — 6,040 Investments in subsidiaries 27,401 28,038 3,493 3,320 (62,252 ) — Goodwill 15,089 22 5,508 3,171 — 23,790 Notes receivable from affiliates 850 21,319 2,092 358 (24,619 ) — Deferred income taxes 7,501 — — — (2,178 ) 5,323 Other non-current assets 215 307 4,951 107 — 5,580 Total assets $ 53,806 $ 51,407 $ 66,565 $ 15,360 $ (103,034 ) $ 84,104 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities Current portion of debt $ 67 $ 500 $ 132 $ 122 $ — $ 821 Other current liabilities - affiliates 1,328 8,682 3,210 711 (13,931 ) — All other current liabilities 321 458 1,992 527 (54 ) 3,244 Long-term debt 13,845 20,053 7,825 683 — 42,406 Notes payable to affiliates 2,404 448 20,462 1,305 (24,619 ) — Deferred income taxes — — 596 1,582 (2,178 ) — Other long-term liabilities and deferred credits 722 193 909 406 — 2,230 Total liabilities 18,687 30,334 35,126 5,336 (40,782 ) 48,701 Stockholders’ equity Total KMI equity 35,119 21,073 31,439 10,024 (62,536 ) 35,119 Noncontrolling interests — — — — 284 284 Total stockholders’ Equity 35,119 21,073 31,439 10,024 (62,252 ) 35,403 Total Liabilities and Stockholders’ Equity $ 53,806 $ 51,407 $ 66,565 $ 15,360 $ (103,034 ) $ 84,104 Condensed Consolidating Statements of Cash Flows for the Nine Months Ended September 30, 2016 (In Millions) (Unaudited) Parent Subsidiary Subsidiary Subsidiary Consolidating Adjustments Consolidated KMI Net cash (used in) provided by operating activities $ (3,023 ) $ 3,903 $ 8,778 $ 681 $ (6,844 ) $ 3,495 Cash flows from investing activities Acquisitions of assets and investments, net of cash acquired (2 ) — (331 ) — — (333 ) Capital expenditures (39 ) — (1,550 ) (520 ) — (2,109 ) Proceeds from sale of equity interests in subsidiaries, net — — 1,402 — — 1,402 Sale of property, plant and equipment, investments and other net assets, net of removal costs — — 250 — — 250 Contributions to investments (343 ) — (36 ) (10 ) — (389 ) Distributions from equity investments in excess of cumulative earnings 1,773 298 127 — (2,040 ) 158 Funding to affiliates (2,354 ) (495 ) (3,650 ) (529 ) 7,028 — Other, net — (52 ) 37 (11 ) — (26 ) Net cash used in investing activities (965 ) (249 ) (3,751 ) (1,070 ) 4,988 (1,047 ) Cash flows from financing activities Issuances of debt 8,111 — 374 — — 8,485 Payments of debt (7,178 ) (500 ) (1,449 ) (8 ) — (9,135 ) Restricted cash held in escrow for debt repayment — — (776 ) — — (776 ) Debt issue costs (13 ) — (1 ) (1 ) — (15 ) Cash dividends - common shares (839 ) — — — — (839 ) Cash dividends - preferred shares (115 ) — — — — (115 ) Funding from affiliates 4,070 973 1,539 446 (7,028 ) — Contributions from parents — — 88 — (88 ) — Contributions from noncontrolling interests — — — — 88 88 Distributions to parents — (4,127 ) (4,801 ) (14 ) 8,942 — Distributions to noncontrolling interests — — — — (17 ) (17 ) Net cash provided by (used in) financing activities 4,036 (3,654 ) (5,026 ) 423 1,897 (2,324 ) Effect of exchange rate changes on cash and cash equivalents — — — 4 — 4 Net increase in cash and cash equivalents 48 — 1 38 41 128 Cash and cash equivalents, beginning of period 123 — 12 142 (48 ) 229 Cash and cash equivalents, end of period $ 171 $ — $ 13 $ 180 $ (7 ) $ 357 Condensed Consolidating Statements of Cash Flows for the Nine Months Ended September 30, 2015 (In Millions) (Unaudited) Parent Subsidiary Subsidiary Subsidiary Consolidating Adjustments Consolidated KMI Net cash (used in) provided by operating activities $ (2,387 ) $ 5,917 $ 7,140 $ 134 $ (7,297 ) $ 3,507 Cash flows from investing activities Acquisitions of assets and investments, net of cash acquired (1,709 ) — (210 ) — — (1,919 ) Capital expenditures (9 ) — (2,745 ) (245 ) — (2,999 ) Sale of property, plant and equipment, investments and other net assets, net of removal costs — — 45 — — 45 Contributions to investments (5 ) — (62 ) (7 ) 5 (69 ) Distributions from equity investments in excess of cumulative earnings 1,060 — 113 — (992 ) 181 Investment in KMP (159 ) — — — 159 — Funding to affiliates (2,765 ) (7,699 ) (6,273 ) (518 ) 17,255 — Other, net — 16 5 18 — 39 Net cash used in investing activities (3,587 ) (7,683 ) (9,127 ) (752 ) 16,427 (4,722 ) Cash flows from financing activities Issuances of debt 12,281 — — — — 12,281 Payments of debt (11,544 ) (300 ) (42 ) (7 ) — (11,893 ) Debt issue costs (20 ) — — — — (20 ) Issuances of common shares 3,833 — — — — 3,833 Cash dividends - common shares (3,084 ) — — — — (3,084 ) Repurchases of warrants (12 ) — — — — (12 ) Funding from affiliates 4,528 5,602 6,514 611 (17,255 ) — Contributions from parents — 156 3 12 (171 ) — Contributions from noncontrolling interests — — — — 7 7 Distributions to parents — (3,706 ) (4,480 ) (128 ) 8,314 — Distributions to noncontrolling interests — — — — (25 ) (25 ) Other, net — (1 ) — — — (1 ) Net cash provided by financing activities 5,982 1,751 1,995 488 (9,130 ) 1,086 Effect of exchange rate changes on cash and cash equivalents — — — (7 ) — (7 ) Net increase (decrease) in cash and cash equivalents 8 (15 ) 8 (137 ) — (136 ) Cash and cash equivalents, beginning of period 4 15 17 279 — 315 Cash and cash equivalents, end of period $ 12 $ — $ 25 $ 142 $ — $ 179 |