We classify our debt based on the contractual maturity dates of the underlying debt instruments. We defer costs associated with debt issuance over the applicable term. These costs are then amortized as interest expense in our accompanying consolidated statements of income using the effective interest rate method. The following table provides detail on the principal amount of our outstanding debt as of June 30, 2014 and December 31, 2013. The table amounts exclude all debt fair value adjustments, including debt discounts and premiums (in millions).



	June 30, 2014			December 31, 2013
KMEP borrowings:
Senior notes, 2.65% through 9.00%, due 2014 through 2044(a)	$	17,100		$	15,600
Commercial paper borrowings(b)	513			979
Credit facility due May 1, 2018(c)	—			—
Subsidiary borrowings (as obligor):
TGP - Senior Notes, 7.00% through 8.375%, due 2016 through 2037	1,790			1,790
EPNG - Senior Notes, 5.95% through 8.625%, due 2017 through 2032	1,115			1,115
Copano - Senior Notes, 7.125%, due April 1, 2021	332			332
Other miscellaneous subsidiary debt	97			98
Total debt	20,947			19,914
Less: Current portion of debt(d)	(1,337		)	(1,504		)
Total long-term debt(e)	$	19,610		$	18,410

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(a)	All of our fixed rate senior notes provide that we may redeem the notes 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.

(b)

As of both June 30, 2014 and December 31, 2013, the average interest rate on our outstanding commercial paper borrowings was 0.28%. The borrowings under our commercial paper program were used principally to finance the acquisitions and capital expansions, and in the near term, we expect that our short-term liquidity and financing needs will be met primarily through borrowings made under our commercial paper program.


(c)	See “—Credit Facilities” below.


(d)	Amounts include outstanding commercial paper borrowings, discussed above in footnote (b).

(e)

As of June 30, 2014 and December 31, 2013, our “Debt fair value adjustments” increased our debt balances by $1,267 million and $1,214 million, respectively. In addition to all unamortized debt discount/premium amounts and purchase accounting on our debt balances, our debt fair value adjustments also include (i) amounts associated with the offsetting entry for hedged debt; and (ii) 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 Note 5 “Risk Management—Debt Fair Value Adjustments.”