Revenue (Notes)

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

Disaggregation of Revenue

We operate our business in two primary segments, Fuel Distribution and Marketing and All Other. We disaggregate revenue within the segments by channels.

The following table depicts the disaggregation of revenue by channel within each segment:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(in millions)
Fuel Distribution and Marketing Segment
Dealer	$	374	$	989	$	1,035	$	1,767
Distributor	645		2,142		2,112		3,781
Unbranded wholesale	548		623		1,143		1,273
Commission agent	363		439		679		814
Non motor fuel sales	20		16		31		35
Lease income	29		31		59		63
Total	1,979		4,240		5,059		7,733
All Other Segment
Motor fuel	62		173		189		314
Non motor fuel sales	34		58		94		113
Lease income	5		4		10		7
Total	101		235		293		434
Total revenue	$	2,080	$	4,475	$	5,352	$	8,167

Contract Balances with Customers

The balances of receivables from contracts with customers listed in the table below include both current trade receivables and long-term receivables, net of allowance for expected credit losses. The allowance for expected credit losses represents our best estimate of the probable losses associated with potential customer defaults. We estimate the expected credit losses based on historical write-off experience by industry and current expectations of future credit losses.

The balances of the Partnership’s contract assets and contract liabilities as of June 30, 2020 and December 31, 2019 are as follows:

	June 30, 2020		December 31, 2019
	(in millions)
Contract balances
Contract asset	$	128	$	117
Accounts receivable from contracts with customers	$	263	$	366
Contract liability	$	—	$	—

The amount of revenue recognized in the three and six months ended June 30, 2020 that was included in the contract liability balance at the beginning of each period was $0.1 million and $0.2 million, respectively, and $0.1 million and $0.2 million in the three and six months ended June 30, 2019, respectively. This amount of revenue is a result of changes in the transaction price of the Partnership’s contracts with customers. The difference in the opening and closing balances of the contract asset and contract liability primarily results from the timing difference between the Partnership’s performance and the customer’s payment.

Costs to Obtain or Fulfill a Contract

The Partnership recognizes an asset from the costs incurred to obtain a contract (e.g. sales commissions) only if it expects to recover those costs. On the other hand, the costs to fulfill a contract are capitalized if the costs are specifically identifiable to a contract, would result in enhancing resources that will be used in satisfying performance obligations in the future, and are expected to be recovered. These capitalized costs are recorded as a part of other current assets and other noncurrent assets and are amortized as a reduction of revenue on a systematic basis consistent with the pattern of transfer of the goods or services to which such costs relate. The amount of amortization on these capitalized costs that the Partnership recognized was $5 million and $10 million for the three and six months ended June 30, 2020, respectively, and $4 million and $8 million for the three and six months ended June 30, 2019, respectively. The Partnership has also made a policy election of expensing the costs to obtain a contract, as and when they are incurred, in cases where the expected amortization period is one year or less.