Revenue

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

Disaggregation of Revenue

The following tables represent a disaggregation of revenue for each reportable segment for the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31, 2020
(In millions)	L&S		G&P		Total
Revenues and other income:
Service revenue	$	84	$	528	$	612
Service revenue - related parties	920		8		928
Service revenue - product related	—		39		39
Product sales	15		154		169
Product sales - related parties	4		29		33
Total revenues from contracts with customers	$	1,023	$	758	1,781
Non-ASC 606 (loss)/revenue(1)					(789		)
Total revenues and other income					$	992

	Three Months Ended March 31, 2019(2)
(In millions)	L&S		G&P		Total
Revenues and other income:
Service revenue	$	86	$	528	$	614
Service revenue - related parties	803		—		803
Service revenue - product related	—		34		34
Product sales	11		205		216
Product sales - related parties	4		37		41
Total revenues from contracts with customers	$	904	$	804	1,708
Non-ASC 606 revenue(1)					527
Total revenues and other income					$	2,235

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

(2) Financial information for the first quarter of 2019 has been retrospectively adjusted for the acquisition of ANDX. See Notes 1 and 3.

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 or for deficiency payments associated with minimum volume commitments which have not been billed to customers. 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. Both types of transactions 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 tables below reflect the changes in our contract balances for the three-month periods ended March 31, 2020 and 2019:

(In millions)	Balance at December 31, 2019(1)		Additions/ (Deletions)			Revenue Recognized(2)			Balance at March 31, 2020
Contract assets	$	39	$	(27	)	$	—		$	12
Deferred revenue	23		5			(3		)	25
Deferred revenue - related parties	53		12			(16		)	49
Long-term deferred revenue	90		6			—			96
Long-term deferred revenue - related parties	$	55	$	1		$	—		$	56

(In millions)	Balance at December 31, 2018(1)		Additions/ (Deletions)(3)			Revenue Recognized(2)(3)			Balance at March 31, 2019(3)
Contract assets	$	36	$	(17	)	$	—		$	19
Deferred revenue	13		1			(1		)	13
Deferred revenue - related parties	65		9			(16		)	58
Long-term deferred revenue	56		1			—			57
Long-term deferred revenue - related parties	$	52	$	—		$	—		$	52

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

(2) No significant revenue was recognized related to past performance obligations in the current periods.

(3) Financial information for the first quarter of 2019 has been retrospectively adjusted for the acquisition of ANDX. See Notes 1 and 3.

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 March 31, 2020, the amounts allocated to contract assets and contract liabilities on the Consolidated Balance Sheets are $224 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 31 years. Further, MPLX does not disclose variable consideration due to volume variability in the table below.

(In millions)
2020	$	1,344
2021	1,747
2022	1,717
2023	1,638
2024 and thereafter	5,662
Total revenue on remaining performance obligations(1),(2),(3)	$	12,108

(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.