Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Other Related Party Balances

Other related party balances consist of the following:


	September 30, 2020		December 31, 2019
Accounts receivable	$	40	$	29
Prepaid expenses	10		15
Other assets	2		2
Contract assets (1)	237		—
Accounts payable (2)	20		10
Deferred revenue	14		—
Accrued liabilities (3)	17		19
Debt payable (4)	2,692		2,692
Financing receivables (1)	300		—

(1) Contract assets and Financing receivables were recognized in connection with the April 2020 Transaction. Refer to the section entitled “Sale Leaseback” below for additional details. Financing receivables were presented as a component of (deficit) equity.

(2) Accounts payable reflects amounts owed to SPLC for reimbursement of third-party expenses incurred by SPLC for our benefit.

(3) As of September 30, 2020, Accrued liabilities reflects $15 million accrued interest and $2 million other accrued liabilities, which are primarily related to the accrued operation and maintenance expenses on the Norco Assets. As of December 31, 2019, Accrued liabilities reflects $18 million of accrued interest and $1 million of other accrued liabilities.

(4) Debt payable reflects borrowings outstanding after taking into account unamortized debt issuance costs of $2 million as of both September 30, 2020 and December 31, 2019.

The following table shows related party expenses, including certain personnel costs, incurred by Shell and SPLC on our behalf that are reflected in the accompanying unaudited consolidated statements of income for the indicated periods. Included in these amounts, and disclosed below, is our share of operating and general corporate expenses, as well as the fees paid to SPLC under certain agreements.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Allocated operating expenses	$	13	$	5	$	33	$	13
Major maintenance costs (1)	—		—		3		—
Insurance expense (2)	6		4		16		13
Other (3)	11		5		24		18
Operations and maintenance – related parties	$	30	$	14	$	76	$	44

Allocated general corporate expenses	$	8	$	8	$	25	$	22
Management Agreement fee	2		3		7		7
Omnibus Agreement fee	3		3		8		8
Other	(2)		—		—		—
General and administrative – related parties	$	11	$	14	$	40	$	37

(1) Major maintenance costs are expensed as incurred in connection with the maintenance services of the Norco Assets. Refer to section entitled “Sale Leaseback” below for additional details.

(2) The majority of our insurance coverage is provided by a wholly owned subsidiary of Shell. The remaining coverage is provided by third-party insurers.

(3) Other expenses primarily relate to severance, salaries and wages, other payroll expenses and special maintenance.

Schedule Of Interest Income, Reduction In Financing Receivables, Cash Payments For Interest Income And Principal Repayment Of Financing Receivable

The following table shows the interest income, reduction in the financing receivables, as well as the cash payments for interest income and principal repayment of the financing receivables for the three and nine months ended September 30, 2020:


	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020
Interest income	$	8	$	15
Reduction in the financing receivables	1		2
Cash payments for interest income	7		12
Cash payments for principal repayment of the financing receivables	1		2