Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Transportation services revenue – third parties	$	24	$	31	$	78	$	103
Transportation services revenue – related parties (1)	31		55		127		156
Storage services revenue – third parties	2		2		6		6
Storage services revenue – related parties	2		1		6		5
Terminaling services revenue – related parties (2)	31		12		73		35
Terminaling services revenue – major maintenance service – related parties (3)	—		—		4		—
Product revenue – third parties (4)	—		—		—		4
Product revenue – related parties (4)	5		10		14		26
Total Topic 606 revenue	95		111		308		335
Lease revenue – related parties	15		14		43		42
Total revenue	$	110	$	125	$	351	$	377

(1) Transportation services revenue - related parties includes $2 million and $4 million, respectively, of the non-lease service component (defined below) in our transportation services contracts for the three and nine months ended September 30, 2020 and 2019.

(2) Terminaling services revenue - related parties is comprised of the service components in our terminaling services contracts, including the operation and maintenance service components related to the Norco Assets in connection with the April 2020 Transaction. See Note 3 – Related Party Transactions for additional details.

(3) Terminaling services revenue - major maintenance service - related parties is comprised of the service components related to providing required major maintenance to the Norco Assets in connection with the April 2020 Transaction. See Note 3 – Related Party Transactions for additional details.

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

Operating Lease, Lease Income

As of September 30, 2020, future minimum payments of both the lease and non-lease service components to be received under the initial 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	$	756	$	110	$	219	$	219	$	208

Contract Balances

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

	January 1, 2020		September 30, 2020
Receivables from contracts with customers – third parties	$	11	$	10
Receivables from contracts with customers – related parties	24		27
Contract assets - related parties	—		237
Deferred revenue – third parties	—		5
Deferred revenue – related parties (1)	—		14

(1) Deferred revenue - related parties is related to deficiency credits from certain minimum volume commitment contracts and certain components of our terminaling service contracts on the Norco Assets.

Contract With Customer, Estimated Future Amortization

The estimated future amortization related to the contract assets for the next five years is as follows:

	Reminder of 2020		2021		2022		2023		2024		2025
Amortization	$	4	$	15	$	16	$	16	$	17	$	17

Contract With Customer, Deferred Revenue Activity

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

	December 31, 2019		Additions (1)		Reductions (2)		September 30, 2020
Deferred revenue – third parties	$	—	$	7	$	(2)	$	5
Deferred revenue – related parties	—		16		(2)		14

(1) Deferred revenue additions resulted from $19 million deficiency payments from minimum volume commitment contracts and $4 million of deferred revenue related to the major maintenance service components of our terminaling service contracts on the Norco Assets.

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

Remaining Performance Obligations

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 September 30, 2020:

	Total		Remainder of 2020		2021		2022		2023		2024 and beyond
Revenue expected to be recognized on multi-year committed shipper transportation contracts	$	497	$	24	$	63	$	63	$	63	$	284
Revenue expected to be recognized on other multi-year transportation service contracts (1)	36		2		5		5		5		19
Revenue expected to be recognized on multi-year storage service contracts	18		1		4		4		4		5
Revenue expected to be recognized on multi-year terminaling service contracts (1)	342		12		48		48		48		186
Revenue expected to be recognized on multi-year operation and major maintenance terminaling service contracts(2)	1,533		25		106		106		106		1,190
	$	2,426	$	64	$	226	$	226	$	226	$	1,684

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

(2) Relates to the operation and maintenance service components and the major maintenance service components of our terminaling service contracts on the Norco Assets in connection with the April 2020 Transaction.