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Revenues and Accounts Receivable | 3 Months Ended
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Mar. 31, 2021
Revenue from Contract with Customer [Abstract] |
Revenues and Accounts Receivable | Revenues and Accounts Receivable Revenue Recognition We disaggregate our revenues by segment and type of activity. These categories depict how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. See Note 3 to our Consolidated Financial Statements included in Part IV of our 2020 Annual Report on Form 10-K for additional information regarding our types of revenues and policies for revenue recognition. The following tables present our Supply and Logistics, Transportation and Facilities segment revenues from contracts with customers disaggregated by type of activity (in millions):
|  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
Supply and Logistics segment revenues from contracts with customers |  |  |  |  |  |  |
Crude oil transactions |  |  |  |  | $ | 7,711 |  |  | $ | 7,322 |
NGL and other transactions |  |  |  |  | 684 |  |  | 428 |
Total Supply and Logistics segment revenues from contracts with customers |  |  |  |  | $ | 8,395 |  |  | $ | 7,750 |
|  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
Transportation segment revenues from contracts with customers |  |  |  |  |  |  |
Tariff activities: |  |  |  |  |  |  |
Crude oil pipelines |  |  |  |  | $ | 397 |  |  | $ | 512 |
NGL pipelines |  |  |  |  | 27 |  |  | 26 |
Total tariff activities |  |  |  |  | 424 |  |  | 538 |
Trucking |  |  |  |  | 22 |  |  | 35 |
Total Transportation segment revenues from contracts with customers |  |  |  |  | $ | 446 |  |  | $ | 573 |
|  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
Facilities segment revenues from contracts with customers |  |  |  |  |  |  |
Crude oil, NGL and other terminalling and storage |  |  |  |  | $ | 170 |  |  | $ | 182 |
NGL and natural gas processing and fractionation |  |  |  |  | 73 |  |  | 109 |
Rail load / unload |  |  |  |  | 11 |  |  | 14 |
Total Facilities segment revenues from contracts with customers |  |  |  |  | $ | 254 |  |  | $ | 305 |
Reconciliation to Total Revenues of Reportable Segments. The following disclosures only include information regarding revenues associated with consolidated entities; revenues from entities accounted for by the equity method are not included. The following tables present the reconciliation of our revenues from contracts with customers (as described above for each segment) to segment revenues and total revenues as disclosed in our Condensed Consolidated Statements of Operations (in millions):
Three Months Ended March 31, 2021 |  | Transportation |  | Facilities |  | Supply and Logistics |  | Total
Revenues from contracts with customers |  | $ | 446 |  |  | $ | 254 |  |  | $ | 8,395 |  |  | $ | 9,095 |
Other items in revenues |  | 41 |  |  | 17 |  |  | (312) |  |  | (254) |
Total revenues of reportable segments |  | $ | 487 |  |  | $ | 271 |  |  | $ | 8,083 |  |  | $ | 8,841 |
Intersegment revenues |  |  |  |  |  |  |  | (458) |
Total revenues |  |  |  |  |  |  |  | $ | 8,383 |
Three Months Ended March 31, 2020 |  | Transportation |  | Facilities |  | Supply and Logistics |  | Total
Revenues from contracts with customers |  | $ | 573 |  |  | $ | 305 |  |  | $ | 7,750 |  |  | $ | 8,628 |
Other items in revenues |  | 6 |  |  | 8 |  |  | 158 |  |  | 172 |
Total revenues of reportable segments |  | $ | 579 |  |  | $ | 313 |  |  | $ | 7,908 |  |  | $ | 8,800 |
Intersegment revenues |  |  |  |  |  |  |  | (531) |
Total revenues |  |  |  |  |  |  |  | $ | 8,269 |
Minimum Volume Commitments. We have certain agreements that require counterparties to transport or throughput a minimum volume over an agreed upon period. The following table presents counterparty deficiencies associated with contracts with customers and buy/sell arrangements that include minimum volume commitments for which we had remaining performance obligations and the customers still had the ability to meet their obligations (in millions):
Counterparty Deficiencies |  | Financial Statement Classification |  | March 31, 2021 |  | December 31, 2020
Billed and collected |  | Liability |  | $ | 47 |  |  | $ | 73 |
Unbilled (1) |  | N/A |  | 24 |  |  | 4 |
Total |  |  |  | $ | 71 |  |  | $ | 77 |
(1)Amounts were related to deficiencies for which the counterparties had not met their contractual minimum commitments and are not reflected in our Condensed Consolidated Financial Statements as we had not yet billed or collected such amounts. Contract Balances. Our contract balances consist of amounts received associated with services or sales for which we have not yet completed the related performance obligation. The following table presents the change in the liability balance associated with contracts with customers (in millions):
|  | Contract Liabilities
Balance at December 31, 2020 |  | $ | 501 |
Amounts recognized as revenue (1) |  | (380) |
Additions (2) |  | 373 |
Balance at March 31, 2021 |  | $ | 494 |
(1)Includes approximately $361 million associated with crude oil sales agreements that were entered into in the fourth quarter of 2020 in conjunction with storage arrangements and future inventory exchanges. (2)Includes approximately $346 million associated with crude oil sales agreements that were entered into in the first quarter of 2021 in conjunction with storage arrangements and future inventory exchanges. Such amount is expected to be recognized as revenue in the second quarter of 2021. Remaining Performance Obligations. The information below includes the amount of consideration allocated to partially and wholly unsatisfied remaining performance obligations under contracts that exist as of the end of the periods and the timing of revenue recognition of those remaining performance obligations. Certain contracts meet the requirements for the presentation as remaining performance obligations. These arrangements include a fixed minimum level of service, typically a set volume of service, and do not contain any variability other than expected timing within a limited range. The following table presents the amount of consideration associated with remaining performance obligations for the population of contracts with external customers meeting the presentation requirements as of March 31, 2021 (in millions):
| Remainder of 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 and Thereafter
Pipeline revenues supported by minimum volume commitments and capacity agreements (1) | $ | 135 |  |  | $ | 171 |  |  | $ | 171 |  |  | $ | 146 |  |  | $ | 126 |  |  | $ | 456 |
Storage, terminalling and throughput agreement revenues | 275 |  |  | 302 |  |  | 220 |  |  | 179 |  |  | 116 |  |  | 332 |
Total | $ | 410 |  |  | $ | 473 |  |  | $ | 391 |  |  | $ | 325 |  |  | $ | 242 |  |  | $ | 788 |
(1)Calculated as volumes committed under contracts multiplied by the current applicable tariff rate. The presentation above does not include (i) expected revenues from legacy shippers not underpinned by minimum volume commitments, including pipelines where there are no or limited alternative pipeline transportation options, (ii) intersegment revenues and (iii) the amount of consideration associated with certain income generating contracts, which include a fixed minimum level of service, that are either not within the scope of ASC 606 or do not meet the requirements for presentation as remaining performance obligations. The following are examples of contracts that are not included in the table above because they are not within the scope of ASC 606 or do not meet the requirements for presentation: •Minimum volume commitments on certain of our joint venture pipeline systems; •Acreage dedications; •Supply and Logistics buy/sell arrangements with future committed volumes; •All other Supply and Logistics contracts, due to the election of practical expedients related to variable consideration and short-term contracts; •Transportation and Facilities contracts that are short-term; •Contracts within the scope of ASC 842, Leases; and •Contracts within the scope of ASC 815, Derivatives and Hedging. Trade Accounts Receivable and Other Receivables, Net Our accounts receivable are primarily from purchasers and shippers of crude oil and, to a lesser extent, purchasers of NGL. These purchasers include, but are not limited to, refiners, producers, marketing and trading companies and financial institutions. The majority of our accounts receivable relate to our crude oil supply and logistics activities that can generally be described as high volume and low margin activities, in many cases involving exchanges of crude oil volumes. During 2020, macroeconomic and geopolitical conditions including the collapse of oil prices driven by both the decrease in demand caused by the COVID-19 pandemic and excess supply has caused liquidity issues impacting many energy companies, which in turn has increased the potential credit risks associated with certain counterparties with which we do business. To mitigate credit risk related to our accounts receivable, we utilize a rigorous credit review process. We closely monitor market conditions and perform credit reviews of each customer to make a determination with respect to the amount, if any, of open credit to be extended to any given customer and the form and amount of financial performance assurances we require. Such financial assurances are commonly provided to us in the form of advance cash payments, standby letters of credit, credit insurance or parental guarantees. Additionally, in an effort to mitigate credit risk, a significant portion of our transactions with counterparties are settled on a net-cash basis. For a majority of these net-cash arrangements, we also enter into netting agreements (contractual agreements that allow us to offset receivables and payables with those counterparties against each other on our balance sheet). Accounts receivable from the sale of crude oil are generally settled with counterparties on the industry settlement date, which is typically in the month following the month in which the title transfers. Otherwise, we generally invoice customers within 30 days of when the products or services were provided and generally require payment within 30 days of the invoice date. We review all outstanding accounts receivable balances on a monthly basis and record our receivables net of expected credit losses. We do not write-off accounts receivable balances until we have exhausted substantially all collection efforts. At March 31, 2021 and December 31, 2020, substantially all of our trade accounts receivable were less than 30 days past their invoice date. Our expected credit losses are immaterial. Although we consider our credit procedures to be adequate to mitigate any significant credit losses, the actual amount of current and future credit losses could vary significantly from estimated amounts. The following is a reconciliation of trade accounts receivable from revenues from contracts with customers to total Trade accounts receivable and other receivables, net as presented on our Condensed Consolidated Balance Sheets (in millions):
| March 31, 2021 |  | December 31, 2020
Trade accounts receivable arising from revenues from contracts with customers | $ | 3,140 |  |  | $ | 2,317 |
Other trade accounts receivables and other receivables (1) | 3,582 |  |  | 2,818 |
Impact due to contractual rights of offset with counterparties | (3,321) |  |  | (2,582) |
Trade accounts receivable and other receivables, net | $ | 3,401 |  |  | $ | 2,553 |
(1)The balance is comprised primarily of accounts receivable associated with buy/sell arrangements that are not within the scope of ASC 606.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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