Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Note 2.     Revenue from Contract Customers

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):

	Three Months Ended June 30, 2020
Revenue from contracts with customers:	Wholesale		GDSO		Commercial		Total
Refined petroleum products, renewable fuels, crude oil and propane	$	208,121	$	455,161	$	78,011	$	741,293
Station operations		—		86,967		—		86,967
Total revenue from contracts with customers		208,121		542,128		78,011		828,260
Other sales:
Revenue originating as physical forward contracts and exchanges		568,700		—		54,951		623,651
Revenue from leases		538		17,128		—		17,666
Total other sales		569,238		17,128		54,951		641,317
Total sales	$	777,359	$	559,256	$	132,962	$	1,469,577

	Three Months Ended June 30, 2019
Revenue from contracts with customers:	Wholesale		GDSO		Commercial		Total
Refined petroleum products, renewable fuels, crude oil and propane	$	339,562	$	1,025,669	$	211,817	$	1,577,048
Station operations		—		102,889		—		102,889
Total revenue from contracts with customers		339,562		1,128,558		211,817		1,679,937
Other sales:
Revenue originating as physical forward contracts and exchanges		1,664,440		—		145,000		1,809,440
Revenue from leases		526		17,637		—		18,163
Total other sales		1,664,966		17,637		145,000		1,827,603
Total sales	$	2,004,528	$	1,146,195	$	356,817	$	3,507,540

	Six Months Ended June 30, 2020
Revenue from contracts with customers:	Wholesale		GDSO		Commercial		Total
Refined petroleum products, renewable fuels, crude oil and propane	$	638,461	$	1,200,776	$	225,626	$	2,064,863
Station operations		—		167,869		—		167,869
Total revenue from contracts with customers		638,461		1,368,645		225,626		2,232,732
Other sales:
Revenue originating as physical forward contracts and exchanges		1,625,297		—		170,710		1,796,007
Revenue from leases		1,079		34,852		—		35,931
Total other sales		1,626,376		34,852		170,710		1,831,938
Total sales	$	2,264,837	$	1,403,497	$	396,336	$	4,064,670

	Six Months Ended June 30, 2019
Revenue from contracts with customers:	Wholesale		GDSO		Commercial		Total
Refined petroleum products, renewable fuels, crude oil and propane	$	883,479	$	1,855,841	$	390,159	$	3,129,479
Station operations		—		189,516		—		189,516
Total revenue from contracts with customers		883,479		2,045,357		390,159		3,318,995
Other sales:
Revenue originating as physical forward contracts and exchanges		2,829,212		—		302,247		3,131,459
Revenue from leases		1,043		35,669		—		36,712
Total other sales		2,830,255		35,669		302,247		3,168,171
Total sales	$	3,713,734	$	2,081,026	$	692,406	$	6,487,166

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, Gasoline Distribution and Station Operations (“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.

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. 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. The Partnership had no significant contract liabilities at both June 30, 2020 and December 31, 2019.