Goodwill (Notes)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill Disclosure [Text Block]

8.  Goodwill

Changes in the amounts of our goodwill for each of the years ended December 31, 2023 and 2022 are summarized by reporting unit as follows:  

	Natural Gas Pipelines Regulated		Natural Gas Pipelines Non-Regulated		CO2		Products Pipelines		Products Pipelines Terminals		Terminals		Energy Transition Ventures		Total
	(In millions)
Gross goodwill	$	15,892	$	4,940	$	1,528	$	2,575	$	221	$	1,481	$	63	$	26,700
Accumulated impairment losses	(1,643)		(2,597)		(600)		(1,197)		(70)		(679)		—		(6,786)
December 31, 2021	14,249		2,343		928		1,378		151		802		63		19,914
Acquisitions(a)	—		—		—		—		—		—		51		51
December 31, 2022	14,249		2,343		928		1,378		151		802		114		19,965
Acquisition of STX Midstream	—		156		—		—		—		—		—		156
December 31, 2023	14,249		2,499		928		1,378		151		802		114		20,121
Gross goodwill	15,892		5,096		1,528		2,575		221		1,481		114		26,907
Accumulated impairment losses	(1,643)		(2,597)		(600)		(1,197)		(70)		(679)		—		(6,786)
December 31, 2023	$	14,249	$	2,499	$	928	$	1,378	$	151	$	802	$	114	$	20,121

(a)Includes goodwill arising from our acquisition of NANR and a $10 million purchase price adjustment related to our acquisition of Kinetrex in 2021 that was attributed to long-term deferred tax liabilities.

Results of our May 31, 2023 annual impairment test indicated that for each of our reporting units, the reporting unit’s fair value exceeded carrying value, with our Terminals reporting unit’s fair value in excess of its carrying values by less than 10% which was impacted by a decline in market multiples. We did not identify any triggers requiring further impairment analysis during the remainder of the year.

The fair value estimates used in our goodwill impairment test include Level 3 inputs of the fair value hierarchy. For all reporting units other than Energy Transition Ventures, we estimated fair value based on a market approach utilizing forecasted earnings before interest, income taxes, DD&A expenses, including amortization of excess cost of equity investments, (EBITDA) and the enterprise value to estimated EBITDA multiples of comparable companies for each of our reporting units. The value of each reporting unit was determined from the perspective of a market participant in an orderly transaction between market participants at the measurement date. For Energy Transition Ventures, we estimated fair value based on an income approach, which includes assumptions regarding future cash flows based on primarily on production growth assumptions, terminal values and discount rates.

Changes to any one or a combination of these factors would result in a change to the reporting unit fair values, which could lead to future impairment charges. Such potential non-cash impairments could have a significant effect on our results of operations.