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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers

Our contracts with customers, which are mainly master sales agreements in combination with different types of nominations or standalone agreements, primarily require us to deliver fuel and fuel-related products, while other arrangements require us to complete agreed-upon services. As our contracts go through a formal credit approval process, we only enter into contracts when we determine the amount we expect to be entitled to is probable of collections. Our billing and payment terms generally include monthly invoicing for the prior month's activities with average payment terms of one to three months. We have elected not to adjust the contract consideration for the effect of a significant financing component for any contract in which the period between when the Company transfers the promises in the contract and when the customer pays is a year or less. However, since our contracts have relatively short payment terms, they do not typically result in the provision of significant financing.

We generally recognize fuel sales and services revenue on a gross basis as we have control of the products or services before they are delivered to our customers. In drawing this conclusion, we considered various factors, including inventory risk management, latitude in establishing the sales price, discretion in the supplier selection and that we are normally the primary obligor in our sales arrangements.

The majority of our consolidated revenues are generated through the sale of fuel and fuel-related products. Revenue from the sale of fuel is recognized when our customers obtain control of the fuel, which is typically upon delivery of each promised gallon or barrel to an agreed-upon delivery point. We have determined that each gallon or barrel represents a separate performance obligation, and revenue is recognized at the point in time when control of each gallon or barrel transfer to our customer. We may also incur costs for the transportation of products to the delivery points. Reimbursements of such costs are normally included in the transaction price. In the limited cases, when we coordinate shipping and handling activities after our customer obtains control of goods or services, we have elected to account for these shipping and handling costs as activities to fulfill the promise to transfer the goods.

Our contracts may contain fixed or variable pricing (such as market or index-based pricing) or some combination of those. The pricing structures of our fuel sales that involve variable prices, such as market or index-based pricing or reimbursements of costs, typically correspond to our efforts to transfer the promised fuel, and we recognize revenue based on those variable prices for the related gallons or barrels that we have delivered. In addition, we have elected to exclude from the transaction price the amount of certain taxes assessed by a government authority that we collect (or recover) from our customer and remit in connection with our sales transactions, such as certain sales or excise taxes.

Within our land and aviation segments, contracts with customers may include multi-year sales contracts, which are priced at market-based indices and require minimum volume purchase commitments from our customers. The consideration expected from these contracts is considered variable due to the market-based pricing and the variability is not resolved until delivery is made to our customers. We have elected to apply the optional exemption from estimating and disclosing the variable consideration from our remaining performance obligations under these contracts.

We also have fixed price fuel and fuel-related product sale contracts with a contract term of less than one year (typically one month). For these contracts, we apply the optional exemption, to not disclose the amount of transaction price allocated to remaining performance obligations. We also apply this exemption to those contracts in which the right to consideration corresponds directly with the value to the customer of the entity's performance to date. In limited cases, we may have multi-period fixed price contracts. Because our long-term supply arrangements that exceed one year are typically based on market index prices as previously discussed, the transaction price associated with remaining performance obligations under multi-year fixed price fuel sale contracts are not significant.

We also earn a minor amount of revenue from contracts to provide services, including energy procurement advisory services, international trip planning support, and transaction and payment management processing, which typically represent a single performance obligation for the series of daily services. We generally recognize revenue over the contract period when services have been performed based on our right to invoice for those services.


Disaggregated revenue

The following table presents (in millions) our revenues from contracts with customers disaggregated by major geographic areas and by segment. Prior period amounts (2017) have not been adjusted as the company elected the modified retrospective transition method.

 
 
For the For the Year ended December 31,
 
 
2019
 
2018
 
2017
Aviation
 
$
1,410.2

 
$
1,564.6

 
$
1,086.8

Land
 
18.2

 
3.3

 
3.0

Marine
 
2,929.2

 
3,552.1

 
3,347.0

Asia Pacific
 
$
4,357.7

 
$
5,120.1

 
$
4,436.8

 
 
 
 
 
 
 
Aviation
 
$
3,824.3

 
$
3,641.4

 
$
2,532.1

Land
 
2,425.4

 
2,563.6

 
2,290.7

Marine
 
2,739.1

 
3,148.3

 
2,605.2

EMEA
 
$
8,988.9

 
$
9,353.4

 
$
7,428.1

 
 
 
 
 
 
 
Aviation
 
$
2,347.1

 
$
1,931.6

 
$
1,365.5

Land
 
612.4

 
631.8

 
705.6

Marine
 
678.1

 
610.2

 
548.8

LATAM
 
$
3,637.7

 
$
3,173.6

 
$
2,619.8

 
 
 
 
 
 
 
Aviation
 
$
10,933.0

 
$
12,025.7

 
$
9,644.5

Land
 
7,017.0

 
8,038.0

 
7,912.8

Marine
 
1,415.2

 
1,480.5

 
1,063.3

North America
 
$
19,365.1

 
$
21,544.2

 
$
18,620.6

 
 
 
 
 
 
 
Other revenues (excluded from ASC 606)
 
$
469.6

 
$
559.0

 
$
590.2

 
 
 
 
 
 
 
 
 
$
36,819.0

 
$
39,750.3

 
$
33,695.5


Other revenues (excluded from ASC 606) in the table above includes revenue from leases and other transactions that we account for following separate guidance.

Accounts receivable, contract assets and contract liabilities

The nature of the receivables related to revenue from contracts with customers and other revenue, are substantially similar, given that they are generated from transactions with the same type of counterparties (e.g., separate fuel sales and storage lease with the same counterparty) and are entered into considering the same credit approval and monitoring procedures for all customers. As such, we believe the risk associated with the cash flows from the different types of receivables is not meaningful to separately disaggregate the Accounts receivable balance presented on our Consolidated Balance Sheet. Furthermore, as of December 31, 2019 and 2018, the contract assets and contracts liabilities recognized by the Company were not material.