Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2022

Related Party Transactions [Abstract]

Schedule of Other Related Party Balances

Other related party balances consist of the following:

	March 31, 2022		December 31, 2021
Accounts receivable	$	47	$	40
Prepaid expenses	15		23
Other assets	2		2
Contract assets (1)	214		218
Accounts payable (2)	14		17
Deferred revenue	36		31
Accrued liabilities (3)	18		24
Debt payable (4)	2,542		2,692
Finance lease liability	2		2
Financing receivables (1)	292		293

(1) Refer to the section entitled “Sale Leaseback” below for additional details. Financing receivables are 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 March 31, 2022, Accrued liabilities reflects $14 million of accrued interest and $4 million of other accrued liabilities. As of December 31, 2021, Accrued liabilities reflects $15 million of accrued interest and $9 million of other accrued liabilities. Other accrued liabilities are primarily related to the accrued operations and maintenance expenses on the Norco Assets (as defined below).

(4) Debt payable reflects borrowings outstanding after taking into account unamortized debt issuance costs of $2 million as of both March 31, 2022 and December 31, 2021.

Schedule of Related Party Expenses Including Personnel Costs

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 March 31,
	2022		2021
Allocated operating expenses	$	11	$	14
Major maintenance costs (1)	1		1
Insurance expense (2)	5		5
Other (3)	9		7
Operations and maintenance – related parties	$	26	$	27
Allocated general corporate expenses	$	6	$	5
Management Agreement fee	3		2
Omnibus Agreement fee	2		3
General and administrative – related parties	$	11	$	10

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

(2) Prior to November 1, 2021, the majority of our insurance coverage was provided by a wholly owned subsidiary of Shell, with the remaining coverage provided by third-party insurers. After November 1, 2021, a third-party insurer provided and continues to provide the first 5% of our insurance coverage with the remaining coverage provided by an affiliate of Shell as a reinsurer.

(3) Other expenses primarily relate to 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 and cash principal payments received on the financing receivables for the three months ended March 31, 2022 and March 31, 2021:

	Three Months Ended March 31,
	2022		2021
Cash payments for interest income	$	6	$	8
Cash payments on principal of the financing receivables	1		1