Leases Lessor Disclosures (Tables)

12 Months Ended

Dec. 31, 2019

Lessor, Lease, Description [Line Items]

Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block]

The following is a schedule of minimum future rental revenue on the non-cancellable operating leases as of December 31, 2019:

(In millions)	Related Party		Third Party		Total
2020	$	1,134	$	186	$	1,320
2021	1,130		179		1,309
2022	1,127		177		1,304
2023	1,074		170		1,244
2024	1,015		167		1,182
2025 and thereafter	2,699		1,072		3,771
Total minimum future rentals	$	8,179	$	1,951	$	10,130

Schedule of Future Minimum Rental Payments Receivable for Operating Leases [Table Text Block]

The following is a schedule of minimum future rental revenue on the non-cancellable operating leases as of December 31, 2018:

(In millions)	Related Party		Third Party		Total
2019	$	1,277	$	171	$	1,448
2020	1,275		163		1,438
2021	1,146		154		1,300
2022	1,143		151		1,294
2023	1,094		145		1,239
2024 and thereafter	3,786		1,114		4,900
Total minimum future rentals	$	9,721	$	1,898	$	11,619

Sales-type Lease, Lease Income [Table Text Block]

Lessor

Based on the terms of fee-based transportation and storage services agreements with MPC and third parties , MPLX is considered to be the lessor under several operating lease arrangements in accordance with GAAP. These agreements have remaining terms ranging from less than 1 year to 11 years with renewal options ranging from 1 year to 5 years, with some agreements having multiple renewal options. We are also considered to be the lessor under operating lease agreements related to certain fee-based natural gas gathering, transportation and processing agreements. MPLX’s primary natural gas lease operations relate to a natural gas gathering agreement in the Marcellus Shale for which it earns a fixed-fee for providing gathering services to a single producer using a dedicated gathering system. As the gathering system is expanded, the fixed-fee charged to the producer is adjusted to include the additional gathering assets in the lease. The primary term of the natural gas gathering arrangement expires in 2038 and will continue thereafter on a year-to-year basis until terminated by either party. Other significant natural gas implicit leases relate to a natural gas processing agreement in the Marcellus Shale and a natural gas processing agreement in the Southern Appalachia region for which MPLX earns minimum monthly fees for providing processing services to a single producer using a dedicated processing plant. The primary term of these natural gas processing agreements expires during 2023 and 2033, these contracts will continue thereafter on a year-to-year basis until terminated by either party.

MPLX did not elect to use the practical expedient to combine lease and non-lease components for lessor arrangements. The tables below represent the portion of the contract allocated to the lease component based on relative standalone selling price. Lessor agreements are currently deemed operating, as we elected the practical expedient to carry forward historical classification conclusions. If and when a modification of an existing agreement occurs and the agreement is required to be assessed under ASC 842, MPLX assesses the amended agreement and makes a determination as to whether a reclassification of the lease is required.

During the year ended December 31, 2019, there was a modification to MPLX terminal agreements with MPC. Based on the modification, certain terminals within the MPLX terminal agreement were reclassified from operating leases to sales-type leases. As a result, the underlying assets previously shown on the Consolidated Balance Sheets associated with the sales-type leases were derecognized and the net investment in the lease (i.e., the sum of the present value of the future lease payments and the unguaranteed residual value of the assets) was recorded as a lease receivable. When determining the net investment in the lease, certain variable payments were excluded from the total contract consideration, primarily related to fees for which there are no minimum volume commitments. The difference between the net book value of the underlying assets and the net investment in the lease has been recorded through equity given that the dropdown of MPLXT was a common control transaction. During the year, MPLX derecognized approximately $29 million of property, plant and equipment, derecognized approximately $3 million of existing deferred rent receivable, recorded a lease receivable of approximately $47 million, recorded an unguaranteed residual asset of approximately $6 million and equity of $21 million.

Under ASC 840, MPLX’s revenue from its implicit lease arrangements, excluding executory costs, totaled approximately $1,032 million in 2018 and $601 million in 2017. Lease revenues included on the Consolidated Statements of Income during 2019 were as follows:

	2019
(In millions)	Related Party		Third Party
Operating leases:
Operating lease revenue(1)	$	1,020	$	257
Sales-type leases:
Profit/(loss) recognized at the commencement date	—		N/A
Interest income (Sales-type rental revenue- fixed minimum)	6		N/A
Interest income (Revenue from variable lease payments)	$	1	N/A

(1) These amounts are presented net of executory costs.

The following is a schedule of minimum future rental revenue on the non-cancellable operating leases as of December 31, 2019:

(In millions)	Related Party		Third Party		Total
2020	$	1,134	$	186	$	1,320
2021	1,130		179		1,309
2022	1,127		177		1,304
2023	1,074		170		1,244
2024	1,015		167		1,182
2025 and thereafter	2,699		1,072		3,771
Total minimum future rentals	$	8,179	$	1,951	$	10,130

The following is a schedule of minimum future rental revenue on the non-cancellable operating leases as of December 31, 2018:

(In millions)	Related Party		Third Party		Total
2019	$	1,277	$	171	$	1,448
2020	1,275		163		1,438
2021	1,146		154		1,300
2022	1,143		151		1,294
2023	1,094		145		1,239
2024 and thereafter	3,786		1,114		4,900
Total minimum future rentals	$	9,721	$	1,898	$	11,619

The following is a schedule of minimum future revenue on the sales-type leases with MPC as of December 31, 2019:

(In millions)	Related Party
2020	$	14
2021	14
2022	14
2023	15
2024	15
2025 and thereafter	20
Total minimum future rentals	92
Less: present value discount	45
Lease receivable	$	47

The following schedule summarizes MPLX’s investment in assets held for operating lease by major classes as of December 31, 2019 and 2018:

	December 31,
(In millions)	2019		2018
Natural gas gathering and NGL transportation pipelines and facilities	$	1,120	$	964
Processing, fractionation and storage facilities	2,176		1,670
Pipelines and related assets	362		376
Barges and towing vessels	738		619
Terminals and related assets	1,232		1,415
Refinery related assets	1,083		981
Land, building, office equipment and other	236		187
Total	6,947		6,212
Less accumulated depreciation	2,355		2,074
Property, plant and equipment, net	$	4,592	$	4,138

Sales-type and Direct Financing Leases, Lease Receivable, Maturity [Table Text Block]

The following is a schedule of minimum future revenue on the sales-type leases with MPC as of December 31, 2019:

(In millions)	Related Party
2020	$	14
2021	14
2022	14
2023	15
2024	15
2025 and thereafter	20
Total minimum future rentals	92
Less: present value discount	45
Lease receivable	$	47

Schedule of Property Subject to or Available for Operating Lease [Table Text Block]

The following schedule summarizes MPLX’s investment in assets held for operating lease by major classes as of December 31, 2019 and 2018:

	December 31,
(In millions)	2019		2018
Natural gas gathering and NGL transportation pipelines and facilities	$	1,120	$	964
Processing, fractionation and storage facilities	2,176		1,670
Pipelines and related assets	362		376
Barges and towing vessels	738		619
Terminals and related assets	1,232		1,415
Refinery related assets	1,083		981
Land, building, office equipment and other	236		187
Total	6,947		6,212
Less accumulated depreciation	2,355		2,074
Property, plant and equipment, net	$	4,592	$	4,138

Lessor, Operating Leases [Text Block]

Lessor

Based on the terms of fee-based transportation and storage services agreements with MPC and third parties , MPLX is considered to be the lessor under several operating lease arrangements in accordance with GAAP. These agreements have remaining terms ranging from less than 1 year to 11 years with renewal options ranging from 1 year to 5 years, with some agreements having multiple renewal options. We are also considered to be the lessor under operating lease agreements related to certain fee-based natural gas gathering, transportation and processing agreements. MPLX’s primary natural gas lease operations relate to a natural gas gathering agreement in the Marcellus Shale for which it earns a fixed-fee for providing gathering services to a single producer using a dedicated gathering system. As the gathering system is expanded, the fixed-fee charged to the producer is adjusted to include the additional gathering assets in the lease. The primary term of the natural gas gathering arrangement expires in 2038 and will continue thereafter on a year-to-year basis until terminated by either party. Other significant natural gas implicit leases relate to a natural gas processing agreement in the Marcellus Shale and a natural gas processing agreement in the Southern Appalachia region for which MPLX earns minimum monthly fees for providing processing services to a single producer using a dedicated processing plant. The primary term of these natural gas processing agreements expires during 2023 and 2033, these contracts will continue thereafter on a year-to-year basis until terminated by either party.

MPLX did not elect to use the practical expedient to combine lease and non-lease components for lessor arrangements. The tables below represent the portion of the contract allocated to the lease component based on relative standalone selling price. Lessor agreements are currently deemed operating, as we elected the practical expedient to carry forward historical classification conclusions. If and when a modification of an existing agreement occurs and the agreement is required to be assessed under ASC 842, MPLX assesses the amended agreement and makes a determination as to whether a reclassification of the lease is required.

During the year ended December 31, 2019, there was a modification to MPLX terminal agreements with MPC. Based on the modification, certain terminals within the MPLX terminal agreement were reclassified from operating leases to sales-type leases. As a result, the underlying assets previously shown on the Consolidated Balance Sheets associated with the sales-type leases were derecognized and the net investment in the lease (i.e., the sum of the present value of the future lease payments and the unguaranteed residual value of the assets) was recorded as a lease receivable. When determining the net investment in the lease, certain variable payments were excluded from the total contract consideration, primarily related to fees for which there are no minimum volume commitments. The difference between the net book value of the underlying assets and the net investment in the lease has been recorded through equity given that the dropdown of MPLXT was a common control transaction. During the year, MPLX derecognized approximately $29 million of property, plant and equipment, derecognized approximately $3 million of existing deferred rent receivable, recorded a lease receivable of approximately $47 million, recorded an unguaranteed residual asset of approximately $6 million and equity of $21 million.

Under ASC 840, MPLX’s revenue from its implicit lease arrangements, excluding executory costs, totaled approximately $1,032 million in 2018 and $601 million in 2017. Lease revenues included on the Consolidated Statements of Income during 2019 were as follows:

	2019
(In millions)	Related Party		Third Party
Operating leases:
Operating lease revenue(1)	$	1,020	$	257
Sales-type leases:
Profit/(loss) recognized at the commencement date	—		N/A
Interest income (Sales-type rental revenue- fixed minimum)	6		N/A
Interest income (Revenue from variable lease payments)	$	1	N/A

(1) These amounts are presented net of executory costs.

The following is a schedule of minimum future rental revenue on the non-cancellable operating leases as of December 31, 2019:

(In millions)	Related Party		Third Party		Total
2020	$	1,134	$	186	$	1,320
2021	1,130		179		1,309
2022	1,127		177		1,304
2023	1,074		170		1,244
2024	1,015		167		1,182
2025 and thereafter	2,699		1,072		3,771
Total minimum future rentals	$	8,179	$	1,951	$	10,130

The following is a schedule of minimum future rental revenue on the non-cancellable operating leases as of December 31, 2018:

(In millions)	Related Party		Third Party		Total
2019	$	1,277	$	171	$	1,448
2020	1,275		163		1,438
2021	1,146		154		1,300
2022	1,143		151		1,294
2023	1,094		145		1,239
2024 and thereafter	3,786		1,114		4,900
Total minimum future rentals	$	9,721	$	1,898	$	11,619

The following is a schedule of minimum future revenue on the sales-type leases with MPC as of December 31, 2019:

(In millions)	Related Party
2020	$	14
2021	14
2022	14
2023	15
2024	15
2025 and thereafter	20
Total minimum future rentals	92
Less: present value discount	45
Lease receivable	$	47

The following schedule summarizes MPLX’s investment in assets held for operating lease by major classes as of December 31, 2019 and 2018:

	December 31,
(In millions)	2019		2018
Natural gas gathering and NGL transportation pipelines and facilities	$	1,120	$	964
Processing, fractionation and storage facilities	2,176		1,670
Pipelines and related assets	362		376
Barges and towing vessels	738		619
Terminals and related assets	1,232		1,415
Refinery related assets	1,083		981
Land, building, office equipment and other	236		187
Total	6,947		6,212
Less accumulated depreciation	2,355		2,074
Property, plant and equipment, net	$	4,592	$	4,138