Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table provides information about disaggregated revenue by service type and customer type:

	2018		2017 (1)		2016 (1)
Transportation services revenue – third parties	$	200.9	$	226.9	$	242.9
Transportation services revenue – related parties (2)	176.1		172.2		179.7
Total transportation services revenue	377.0		399.1		422.6
Storage services revenue – third parties	8.5		8.7		8.6
Storage services revenue – related parties	6.7		6.0		8.6
Total storage services revenue	15.2		14.7		17.2
Terminaling services revenue – third parties	—		—		—
Terminaling services revenue – related parties	45.7		—		—
Total terminaling services revenue (3)	45.7		—		—
Product revenue – third parties	2.2		—		—
Product revenue – related parties	28.5		—		—
Total product revenue (4)	30.7		—		—
Total Topic 606 revenue	468.6		N/A		N/A
Lease revenue – related parties	56.1		56.3		13.1
Total revenue	$	524.7	$	470.1	$	452.9

⁽¹⁾ As noted above, prior period amounts have not been adjusted under the modified retrospective method.

⁽²⁾ Transportation services revenue — related parties for 2018 includes $4.7 million of non-lease component in our transportation services contract.

⁽³⁾ Terminaling services revenue for 2018 is entirely comprised of the non-lease service component in our terminaling services contracts.

⁽⁴⁾ Product revenue for 2018 is comprised of allowance oil sales.

Operating Lease, Lease Income

As of December 31, 2018, future minimum payments to be received under the ten-year contract term of these operating leases were estimated to be:

	Total		Less than 1 year		Years 2 to 3		Years 4 to 5		More than 5 years
Operating leases	$	933.4	$	107.7	$	215.5	$	215.5	$	394.7

Contract with Customer, Asset and Liability

The following table provides information about receivables and contract liabilities from contracts with customers:

	January 1, 2018		December 31, 2018
Receivables from contracts with customers – third parties	$	17.2	$	18.8
Receivables from contracts with customers – related parties	18.8		21.4
Deferred revenue – third parties	5.5		8.0
Deferred revenue – related party	9.4		2.6

Significant changes in the deferred revenue balances with customers during the period are as follows:

	December 31, 2017		Transition Adjustment		Additions (1)		Reductions (2)		December 31, 2018
Deferred revenue – third parties	$	5.5	$	—	$	10.0	$	(7.5)	$	8.0
Deferred revenue – related party	13.9		(4.5)		3.1		(9.9)		2.6

⁽¹⁾ Contract liability additions resulted from deficiency payments from minimum volume commitment contracts.

(2) Contract liability reductions resulted from revenue earned through the actual or estimated use and expiration of deficiency credits.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Impact of adoption

In accordance with the new revenue standard, the following tables summarize the impact of adoption on our consolidated financial statements as of and for the year ended December 31, 2018:

	2018
Consolidated Statement of Income	As Reported Under Topic 606		Amounts Without Adoption of Topic 606		Effect of Change Increase/(Decrease)
Revenue
Transportation, terminaling and storage services – third parties	$	209.4	$	209.2	$	0.2
Transportation, terminaling and storage services – related parties	228.5		183.4		45.1
Product revenue – third parties	2.2		—		2.2
Product revenue – related parties	28.5		—		28.5
Lease revenue – related parties	56.1		106.5		(50.4)
Costs and expenses
Operations and maintenance – third parties	107.5		112.1		(4.6)
Operations and maintenance – related parties	54.4		46.8		7.6
Cost of product sold – third parties	7.4		5.5		1.9
Cost of product sold – related parties	25.3		—		25.3
Net income	$	482.4	$	487.0	$	(4.6)

	December 31, 2018
Consolidated Balance Sheet	As Reported Under Topic 606		Amounts Without Adoption of Topic 606		Effect of Change Increase/(Decrease)
Deferred revenue – related party	$	2.6	$	2.5	$	0.1

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table includes revenue expected to be recognized in the future related to performance obligations exceeding one year of their initial terms that are unsatisfied or partially unsatisfied as of December 31, 2018:

	Total		2019		2020		2021		2022		2023 and beyond
Revenue expected to be recognized on multi-year committed shipper transportation contracts (1)	$	539.9	$	64.3	$	50.1	$	49.8	$	49.8	$	325.9
Revenue expected to be recognized on other multi-year transportation service contracts (2)	45.0		5.4		5.4		5.4		5.4		23.4
Revenue expected to be recognized on multi-year storage service contracts	4.0		4.0		—		—		—		—
Revenue expected to be recognized on multi-year terminaling service contracts (2)	416.3		46.7		46.7		46.7		46.7		229.5
Total	$	1,005.2	$	120.4	$	102.2	$	101.9	$	101.9	$	578.8

⁽¹⁾ Excludes revenue deferred for deficiency payments.

⁽²⁾ Relates to the non-lease service components of certain of our long-term transportation and terminaling service contracts which are  accounted for as operating leases.