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Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

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


	2019		2018		2017⁽¹⁾
Transportation services revenue – third parties	$	134	$	200	$	227
Transportation services revenue – related parties⁽²⁾	210		176		172
Storage services revenue – third parties	9		9		9
Storage services revenue – related parties	7		7		6
Terminaling services revenue – related parties⁽³⁾	47		46		—
Product revenue – third parties⁽⁴⁾	5		2		—
Product revenue – related parties⁽⁴⁾	35		29		—
Total Topic 606 revenue	447		469		414
Lease revenue – related parties	56		56		56
Total revenue	$	503	$	525	$	470

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

⁽²⁾Transportation services revenue — related parties for both 2019 and 2018 includes $5 million of non-lease component in our transportation services contract.

⁽³⁾Terminaling services revenue for 2019 and 2018 is entirely comprised of the non-lease service component in our terminaling services contracts.

⁽⁴⁾Product revenue for 2019 and 2018 is comprised of allowance oil sales.

Operating Lease, Lease Income

As of December 31, 2019, 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	$	838	$	110	$	219	$	219	$	290

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Impact of adoption

In accordance with the revenue standard, the following tables summarize the impact of adoption on our consolidated financial statements as of and for both the years ended December 31, 2019 and 2018:


	2019
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	$	143	$	142	$	1
Transportation, terminaling and storage services – related parties	264		215		49
Product revenue – third parties	5		—		5
Product revenue – related parties	35		—		35
Lease revenue – related parties	56		108		(52)
Costs and expenses
Operations and maintenance – third parties	65		64		1
Operations and maintenance – related parties	59		58		1
Cost of product sold – third parties	5		—		5
Cost of product sold – related parties	31		—		31
Net income	$	546	$	546	$	—

December 31, 2019

Consolidated Balance Sheet

As Reported Under Topic 606

Amounts Without Adoption of Topic 606

Effect of Change Increase/(Decrease)

Deferred revenue – related party

—


	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	$	209	$	—
Transportation, terminaling and storage services – related parties	229		183		46
Product revenue – third parties	2		—		2
Product revenue – related parties	29		—		29
Lease revenue – related parties	56		107		(51)
Costs and expenses
Operations and maintenance – third parties	108		107		1
Operations and maintenance – related parties	54		52		2
Cost of product sold – third parties	7		6		1
Cost of product sold – related parties	25		—		25
Net income	$	482	$	487	$	(5)


	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	$	3	$	3	$	—

Contract with Customer, Asset and Liability

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


	January 1, 2019		December 31, 2019
Receivables from contracts with customers – third parties	$	19	$	11
Receivables from contracts with customers – related parties	21		24
Deferred revenue – third parties	8		—
Deferred revenue – related party	3		—


	January 1, 2018		December 31, 2018
Receivables from contracts with customers – third parties	$	17	$	19
Receivables from contracts with customers – related parties	19		21
Deferred revenue – third parties	6		8
Deferred revenue – related party	9		3

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


	December 31, 2018		Transition Adjustment		Additions ⁽¹⁾		Reductions ⁽²⁾		December 31, 2019
Deferred revenue – third parties	$	8	$	—	$	—	$	(8)	$	—
Deferred revenue – related party	3		—		—		(3)		—

⁽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.


	December 31, 2017		Transition Adjustment		Additions ⁽¹⁾		Reductions ⁽²⁾		December 31, 2018
Deferred revenue – third parties	$	6	$	—	$	10	$	(8)	$	8
Deferred revenue – related party	14		(4)		3		(10)		3

⁽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.

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, 2019:


	Total		2020		2021		2022		2023		2024 and beyond
Revenue expected to be recognized on multi-year committed shipper transportation contracts	$	577	$	106	$	63	$	63	$	63	$	282
Revenue expected to be recognized on other multi-year transportation service contracts ⁽¹⁾	40		5		5		5		5		20
Revenue expected to be recognized on multi-year storage service contracts	21		4		4		4		4		5
Revenue expected to be recognized on multi-year terminaling service contracts⁽¹⁾	378		48		48		48		48		186
Total	$	1,016	$	163	$	120	$	120	$	120	$	493

⁽¹⁾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.