An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

Kinder Morgan Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Total undiscounted future operating lease payments	—	862)	722)	764)	829)
Discount rate¹	—	5.15%	5.02%	4.95%	4.92%

Total present value of future operating lease payments	—	683)	573)	600)	642)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ Weighted-average interest rate for Kinder Morgan Inc. debt

2018 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 5.15%
2019	122)	2019	122)	116)
2020	107)	2020	107)	97)
2021	102)	2021	102)	88)
2022	97)	2022	97)	79)
2023	81)	2023	81)	63)
2024 and thereafter	353)	2024	81)	60)
		2025	81)	57)
		2026	81)	54)
		2027	81)	52)
		2028	29)	18)
Total:	862)		862)	683)

Based on: 10-K (reporting date: 2018-12-31).

2017 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 5.02%
2018	118)	2018	118)	112)
2019	106)	2019	106)	96)
2020	81)	2020	81)	70)
2021	62)	2021	62)	51)
2022	55)	2022	55)	43)
2023 and thereafter	300)	2023	55)	41)
		2024	55)	39)
		2025	55)	37)
		2026	55)	35)
		2027	55)	34)
		2028	25)	15)
Total:	722)		722)	573)

Based on: 10-K (reporting date: 2017-12-31).

2016 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.95%
2017	106)	2017	106)	101)
2018	94)	2018	94)	85)
2019	86)	2019	86)	74)
2020	75)	2020	75)	62)
2021	61)	2021	61)	48)
2022 and thereafter	342)	2022	61)	46)
		2023	61)	43)
		2024	61)	41)
		2025	61)	39)
		2026	61)	38)
		2027	37)	22)
Total:	764)		764)	600)

Based on: 10-K (reporting date: 2016-12-31).

2015 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.92%
2016	103)	2016	103)	98)
2017	90)	2017	90)	82)
2018	83)	2018	83)	72)
2019	78)	2019	78)	64)
2020	69)	2020	69)	54)
2021 and thereafter	406)	2021	69)	52)
		2022	69)	49)
		2023	69)	47)
		2024	69)	45)
		2025	69)	43)
		2026	61)	36)
Total:	829)		829)	642)

Based on: 10-K (reporting date: 2015-12-31).

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Kinder Morgan Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported)	74,157)	78,866)	79,055)	80,305)	84,104)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	683)	573)	600)	642)
Total assets (adjusted)	74,157)	79,549)	79,628)	80,905)	84,746)
Adjustment to Total Debt
Total debt (as reported)	34,392)	37,324)	37,843)	40,050)	43,227)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	683)	573)	600)	642)
Add: Short-term operating lease liability (located in Other current liabilities)	40)	—)	—)	—)	—)
Add: Long-term operating lease liability (located in Other long-term liabilities and deferred credits)	289)	—)	—)	—)	—)
Total debt (adjusted)	34,721)	38,007)	38,416)	40,650)	43,869)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

^{1, 2} Equal to total present value of future operating lease payments.

Kinder Morgan Inc., Financial Data: Reported vs. Adjusted

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Kinder Morgan Inc., adjusted financial ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Total Asset Turnover¹
Reported total asset turnover	0.18	0.18	0.17	0.16	0.17
Adjusted total asset turnover	0.18	0.18	0.17	0.16	0.17
Debt to Equity²
Reported debt to equity	1.02	1.11	1.13	1.16	1.23
Adjusted debt to equity	1.03	1.13	1.14	1.18	1.25
Return on Assets³ (ROA)
Reported ROA	2.95%	2.04%	0.23%	0.88%	0.30%
Adjusted ROA	2.95%	2.02%	0.23%	0.88%	0.30%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Kinder Morgan Inc. adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Kinder Morgan Inc. adjusted debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Kinder Morgan Inc. adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Kinder Morgan Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Revenues	13,209)	14,144)	13,705)	13,058)	14,403)
Total assets	74,157)	78,866)	79,055)	80,305)	84,104)
Activity Ratio
Total asset turnover¹	0.18	0.18	0.17	0.16	0.17
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenues	13,209)	14,144)	13,705)	13,058)	14,403)
Adjusted total assets	74,157)	79,549)	79,628)	80,905)	84,746)
Activity Ratio
Adjusted total asset turnover²	0.18	0.18	0.17	0.16	0.17

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 13,209 ÷ 74,157 = 0.18

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 13,209 ÷ 74,157 = 0.18

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Kinder Morgan Inc. adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total debt	34,392)	37,324)	37,843)	40,050)	43,227)
Total Kinder Morgan, Inc.’s stockholders’ equity	33,742)	33,678)	33,636)	34,431)	35,119)
Solvency Ratio
Debt to equity¹	1.02	1.11	1.13	1.16	1.23
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt	34,721)	38,007)	38,416)	40,650)	43,869)
Total Kinder Morgan, Inc.’s stockholders’ equity	33,742)	33,678)	33,636)	34,431)	35,119)
Solvency Ratio
Adjusted debt to equity²	1.03	1.13	1.14	1.18	1.25

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ Debt to equity = Total debt ÷ Total Kinder Morgan, Inc.’s stockholders’ equity
= 34,392 ÷ 33,742 = 1.02

² Adjusted debt to equity = Adjusted total debt ÷ Total Kinder Morgan, Inc.’s stockholders’ equity
= 34,721 ÷ 33,742 = 1.03

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Kinder Morgan Inc. adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kinder Morgan, Inc.	2,190)	1,609)	183)	708)	253)
Total assets	74,157)	78,866)	79,055)	80,305)	84,104)
Profitability Ratio
ROA¹	2.95%	2.04%	0.23%	0.88%	0.30%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to Kinder Morgan, Inc.	2,190)	1,609)	183)	708)	253)
Adjusted total assets	74,157)	79,549)	79,628)	80,905)	84,746)
Profitability Ratio
Adjusted ROA²	2.95%	2.02%	0.23%	0.88%	0.30%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ ROA = 100 × Net income attributable to Kinder Morgan, Inc. ÷ Total assets
= 100 × 2,190 ÷ 74,157 = 2.95%

² Adjusted ROA = 100 × Net income attributable to Kinder Morgan, Inc. ÷ Adjusted total assets
= 100 × 2,190 ÷ 74,157 = 2.95%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Kinder Morgan Inc. adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Kinder Morgan Inc. (NYSE:KMI)

Analysis of Operating Leases

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Adjustments to Financial Statements for Operating Leases

Kinder Morgan Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Kinder Morgan Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)