Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

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


	Three Months Ended March 31,
	2022		2021
Transportation services revenue – third parties	$	30	$	39
Transportation services revenue – related parties (1)	44		44
Storage services revenue – third parties	2		2
Storage services revenue – related parties	2		2

Terminaling services revenue – related parties (2)	31		30
Terminaling services revenue – major maintenance service – related parties (3)	2		2

Product revenue – related parties (4)	11		6
Total Topic 606 revenue	122		125
Lease revenue – related parties	13		14
Total revenue	$	135	$	139

(1) Transportation services revenue – related parties includes $1 million of non-lease service component in our transportation services contracts for both the three months ended March 31, 2022 and March 31, 2021.

(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. See Note 2 – Related Party Transactions for additional details.

(3) Terminaling services revenue – major maintenance service – related parties is comprised of the major maintenance service components related the Norco Assets. See Note 2 – Related Party Transactions for additional details.

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

Operating Lease, Lease Income

As of March 31, 2022, future minimum payments of both the lease and non-lease service components 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	$	590	$	109	$	218	$	218	$	45

Contract Balances

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


	January 1, 2022		March 31, 2022
Receivables from contracts with customers – third parties	$	13	$	10
Receivables from contracts with customers – related parties	35		37
Contract assets – related parties	218		214
Deferred revenue – third parties	2		4
Deferred revenue – related parties (1)	31		36

(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:


	Remainder of 2022		2023		2024		2025		2026		2027
Amortization	$	13	$	17	$	18	$	19	$	16	$	16

Contract with Customer, Deferred Revenue Activity

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


	December 31, 2021		Additions (1)		Reductions (2)		March 31, 2022
Deferred revenue – third parties	$	2	$	2	$	—	$	4
Deferred revenue – related parties	31		7		(2)		36

(1) Deferred revenue additions resulted from $6 million deficiency payments from minimum volume commitment contracts and $3 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.

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 March 31, 2022:


	Total		Remainder of 2022		2023		2024		2025		2026 and beyond
Revenue expected to be recognized on multi-year committed shipper transportation contracts	$	394	$	48	$	63	$	57	$	50	$	176
Revenue expected to be recognized on other multi-year transportation service contracts (1)	28		4		6		6		5		7
Revenue expected to be recognized on multi-year storage service contracts	15		7		4		4		—		—
Revenue expected to be recognized on multi-year terminaling service contracts (1)	269		36		47		47		48		91
Revenue expected to be recognized on multi-year operation and major maintenance terminaling service contracts(2)	1,456		87		119		123		127		1,000
	$	2,162	$	182	$	239	$	237	$	230	$	1,274

(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.

(2) Relates to the operation and maintenance service components and the major maintenance service components of our terminaling service contracts on the Norco Assets.