Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Regulatory Assets and Liabilities Table [Table Text Block]

The following table summarizes our regulatory asset and liability balances as of December 31, 2019 and 2018 (in millions):



	December 31,
	2019		2018
Current regulatory assets	$	55	$	66
Non-current regulatory assets	212		245
Total regulatory assets(a)	$	267	$	311

Current regulatory liabilities	$	26	$	29
Non-current regulatory liabilities	189		206
Total regulatory liabilities(b)	$	215	$	235

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(a)

Regulatory assets as of December 31, 2019 include (i) $144 million of unamortized losses on disposal of assets; (ii) $51 million income tax gross up on equity AFUDC; and (iii) $72 million of other assets including amounts related to fuel tracker arrangements. Approximately $84 million of the regulatory assets, with a weighted average remaining recovery period of 26 years, are recoverable without earning a return, including the income tax gross up on equity AFUDC for which there is an offsetting deferred income tax balance for FERC rate base purposes; therefore, it does not earn a return.

(b)

Regulatory liabilities as of December 31, 2019 are comprised of customer prepayments to be credited to shippers or other over-collections that are expected to be returned to shippers or netted against under-collections over time. Approximately $131 million of the $189 million classified as non-current is expected to be credited to shippers over a remaining weighted average period of 18 years, while the remaining $58 million is not subject to a defined period.

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the allocation of net income available to shareholders of Class P shares and participating securities (in millions):



	Year Ended December 31,
	2019			2018			2017
Net Income Available to Common Stockholders	$	2,190		$	1,481		$	27
Participating securities:
Less: Net Income Allocated to Restricted stock awards(a)	(12		)	(8		)	(5		)
Net Income Allocated to Class P Stockholders	$	2,178		$	1,473		$	22

Basic Weighted Average Common Shares Outstanding	2,264			2,216			2,230
Basic Earnings Per Common Share	$	0.96		$	0.66		$	0.01

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(a)	As of December 31, 2019, there were approximately 12 million such restricted stock awards.

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following maximum number of potential common stock equivalents are antidilutive and, accordingly, are excluded from the determination of diluted earnings per share (in millions on a weighted average basis):



	Year Ended December 31,
	2019	2018	2017
Unvested restricted stock awards	13	12	10
Warrants to purchase our Class P shares(a)	—	—	116
Convertible trust preferred securities	3	3	3
Mandatory convertible preferred stock(b)	—	48	58

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(a)	On May 25, 2017, approximately 293 million of unexercised warrants expired without the issuance of Class P common stock. Prior to expiration, each warrant entitled the holder to purchase one share of our common stock for an exercise price of $40 per share. The potential dilutive effect of the warrants did not consider the assumed proceeds to KMI upon exercise.

(b)

The holder of each convertible preferred share participated in our earnings by receiving preferred stock dividends through the mandatory conversion date of October 26, 2018 at which time our convertible preferred shares were converted to common shares.