Revenue Revenue

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

Disaggregation of Revenue

The following table represents a disaggregation of revenue for each reportable segment for the years ended December 31, 2019 and 2018:

	2019
(In millions)	L&S		G&P		Total
Revenues and other income:
Service revenue	$	346	$	2,152	$	2,498
Service revenue - related parties	3,419		36		3,455
Service revenue - product related	—		140		140
Product sales(1)	65		741		806
Product sales - related parties	26		116		142
Total revenues from contracts with customers	$	3,856	$	3,185	7,041
Non-ASC 606 revenue(2)					2,000
Total revenues and other income					$	9,041

	2018
(In millions)	L&S		G&P		Total
Revenues and other income:
Service revenue	$	174	$	1,682	$	1,856
Service revenue - related parties	2,401		3		2,404
Service revenue - product related	—		220		220
Product sales(1)	12		870		882
Product sales - related parties	11		76		87
Total revenues from contracts with customers	$	2,598	$	2,851	5,449
Non-ASC 606 revenue(2)					1,556
Total revenues and other income					$	7,005

(1) G&P “Product sales” for the year ended December 31, 2018 was adjusted in the table above by $5 million related to derivative gains and mark-to-market adjustments. There were no adjustments for the year ended December 31, 2019.

(2) Non-ASC 606 Revenue includes rental income, income from equity method investments, derivative gains and losses, mark-to-market adjustments, and other income.

Contract Balances

Contract assets typically relate to aid in construction agreements where the revenue recognized and MPLX’s rights to consideration for work completed exceeds the amount billed to the customer. Contract assets are generally classified as current and included in “Other current assets” on the Consolidated Balance Sheets.

Contract liabilities, which we refer to as “Deferred revenue” and “Long-term deferred revenue,” typically relate to advance payments for aid in construction agreements and deferred customer credits associated with makeup rights and minimum volume commitments. Related to minimum volume commitments, breakage is estimated and recognized into service revenue in instances where it is probable the customer will not use the credit in future periods. We classify contract liabilities as current or long-term based on the timing of when we expect to recognize revenue.

“Receivables, net” primarily relate to our commodity sales. Portions of the “Receivables, net” balance are attributed to the sale of commodity product controlled by MPLX prior to sale while a significant portion of

the balance relates to the sale of commodity product on behalf of our producer customers. The sales and related “Receivables, net” are commingled and excluded from the table below. MPLX remits the net sales price back to our producer customers upon completion of the sale. Each period end, certain amounts within accounts payable relate to our payments to producer customers. Such amounts are not deemed material at period end as a result of when we settle with each producer.

The table below reflects the changes in our contract balances for the years ended December 31, 2019 and 2018:

(In millions)	Balance at December 31, 2018(1)		Additions/ (Deletions)		Revenue Recognized(2)			Balance at December 31, 2019
Contract assets	$	36	$	5	$	(2	)	$	39
Deferred revenue	13		17		(7		)	23
Deferred revenue - related parties	65		55		(67		)	53
Long-term deferred revenue	56		34		—			90
Long-term deferred revenue - related parties	$	52	$	3	$	—		$	55

(In millions)	Balance at January 1, 2018(1)		Additions/ (Deletions)(3)		Revenue Recognized(2)			Balance at December 31, 2018
Contract assets	$	4	$	32	$	—		$	36
Deferred revenue	5		19		(11		)	13
Deferred revenue - related parties	42		60		(37		)	65
Long-term deferred revenue	5		51		—			56
Long-term deferred revenue - related parties	$	43	$	9	$	—		$	52

(1) Balance represents ASC 606 portion of each respective line item.

(2) No significant revenue was recognized related to past performance obligations for the years ended December 31, 2019 and 2018.

(3) Includes opening balances related to the Merger.

Remaining Performance Obligations

The table below includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.

As of December 31, 2019, the amounts allocated to contract assets and contract liabilities on the Consolidated Balance Sheets are $220 million and are reflected in the amounts below. This will be recognized as revenue as the obligations are satisfied, which is expected to occur over the next 24 years. Further, MPLX does not disclose variable consideration due to volume variability in the table below.

(In millions)
2020	$	1,717
2022	1,693
2022	1,640
2023	1,555
2024 and thereafter	5,317
Total revenue on remaining performance obligations(1)(2)(3)	$	11,922

(1) All fixed consideration from contracts with customers is included in the amounts presented above. Variable consideration that is constrained or not required to be estimated as it reflects our efforts to perform is excluded.

(2) Arrangements deemed implicit leases are included in “Rental income” and are excluded from this table.

(3) Only minimum volume commitments that are deemed fixed are included in the table above. MPLX has various minimum volume commitments in processing arrangements that vary based on the actual Btu content of the gas received. These amounts are deemed variable consideration and are excluded from the table above.

We do not disclose information on the future performance obligations for any contract with an original expected duration of one year or less.