Note 4. Revenue from Contracts with Customers

On January 1, 2018, the Partnership adopted ASC 606, “Revenue from Contracts with Customers” (“ASC 606”) using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning January 1, 2018 are presented under ASC 606 while prior period amounts are not adjusted and continue to be reported in accordance with the Partnership’s historic accounting under ASC 605, “Revenue Recognition,” (“ASC 605”). See Note 2 for the Partnership’s revenue recognition policy and below for the required disclosures under ASC 606.

Disaggregation of Revenue

The following table provides the disaggregation of revenue from contracts with customers and other sales by segment for the periods presented (in thousands):


	Year Ended December 31, 2019
Revenue from contracts with customers:	Wholesale		GDSO		Commercial		Total
Refined petroleum products, renewable fuels, crude oil and propane	$	1,681,426	$	3,806,892	$	794,082	$	6,282,400
Station operations		—		394,679		—		394,679
Total revenue from contracts with customers		1,681,426		4,201,571		794,082		6,677,079
Other sales:
Revenue originating as physical forward contracts and exchanges		5,746,338		—		584,129		6,330,467
Revenue from leases		2,102		72,082		—		74,184
Total other sales		5,748,440		72,082		584,129		6,404,651
Total sales	$	7,429,866	$	4,273,653	$	1,378,211	$	13,081,730


	Year Ended December 31, 2018
Revenue from contracts with customers:	Wholesale		GDSO		Commercial		Total
Refined petroleum products, renewable fuels, crude oil and propane	$	1,580,156	$	4,081,498	$	769,271	$	6,430,925
Station operations		—		355,656		—		355,656
Total revenue from contracts with customers		1,580,156		4,437,154		769,271		6,786,581
Other sales:
Revenue originating as physical forward contracts and exchanges		5,308,613		—		503,832		5,812,445
Revenue from leases		2,021		71,555		—		73,576
Total other sales		5,310,634		71,555		503,832		5,886,021
Total sales	$	6,890,790	$	4,508,709	$	1,273,103	$	12,672,602

Nature of Goods and Services

Revenue from Contracts with Customers (ASC 606):

Refined petroleum products, renewable fuels, crude oil and propane sales—Under the Partnership’s Wholesale, GDSO and Commercial segments, revenue is recognized at the point where control of the product is transferred to the customer and collectability is reasonably assured.

Station operations—Revenue from convenience store sales of grocery and other merchandise and sundries (such as car wash sales and lottery and ATM commissions) is recognized at the time of the sale to the customer.

Other Revenue:

Revenue Originating as Physical Forward Contracts and Exchanges—The Partnership’s commodity contracts and derivative instrument activity include physical forward commodity sale contracts. The Partnership does not take the normal purchase and sale exemption available under ASC 815, “Derivatives and Hedging,” for any of its physical forward contracts. This income is recognized under ASC 815 and is included in sales at the contract value at the point where control of the product is transferred to the customer. Income from net exchange differentials included in sales is recognized under ASC 845, “Nonmonetary Transactions,” upon delivery of product to exchange partners.

Revenue from Leases—The Partnership has rental income from gasoline stations and cobranding arrangements and lease income from space leased to several unrelated third parties at several of the Partnership’s terminals. This income was recognized under ASC 842 for the year ended December 31, 2019 and under ASC 840, “Leases,” for the years ended December 31, 2018 and 2017.

Transaction Price Allocated to Remaining Performance Obligations

The Partnership has elected certain of the optional exemptions from the disclosure requirement for remaining performance obligations for specific situations in which an entity need not estimate variable consideration to recognize revenue. Accordingly, the Partnership applies the practical expedient in paragraph ASC 606-10-50-14 to its contracts with customers where revenue is tied to a market-index and does not disclose information about variable consideration from remaining performance obligations for which the Partnership recognizes revenue.

The fixed component of estimated revenues expected to be recognized in the future related to performance obligations tied to a market index that are unsatisfied (or partially unsatisfied) at the end of the reporting period are not significant.

Contract Balances

A receivable, which is included in accounts receivable, net in the accompanying consolidated balance sheets, is recognized in the period the Partnership provides services when its right to consideration is unconditional. In contrast, a contract asset will be recognized when the Partnership has fulfilled a contract obligation but must perform other obligations before being entitled to payment.

The nature of the receivables related to revenue from contracts with customers and other revenue, as well as contract assets, are the same, given they are related to the same customers and have the same risk profile and securitization. The Partnership had no significant contract liabilities at both December 31, 2019 and 2018. Payment terms on invoiced amounts are typically 2 to 30 days.

A contract liability is recognized when the Partnership has an obligation to transfer goods or services to a customer for which the Partnership has received consideration (or the amount is due) from the customer.