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Revenue
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
Disaggregation of Revenue

The following is a summary of revenues disaggregated by segment:
Three Months Ended
March 31,
20232022
(millions)
Pipeline (a)
$85 $77 
Gathering135 138 
Total operating revenues$220 $215 
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(a)Includes revenues outside the scope of Topic 606 primarily related to contracts accounted for as leases of $1 million and $2 million for the three months ended March 31, 2023 and 2022, respectively.
Nature of Services
DT Midstream primarily provides two types of revenue services: firm service and interruptible service. Firm service revenue contracts provide for fixed revenue commitments regardless of actual volumes of natural gas that flow, which leads to more stable operating performance, revenues and cash flows and limits our exposure to natural gas price fluctuations. Firm service revenue contracts are typically long-term and structured using fixed demand charges or MVCs with fixed deficiency fee rates. Contracts structured using fixed demand charges contain a performance obligation of a stand-ready series of distinct services that are substantially the same with the same pattern of transfer to the customer, therefore revenue is recognized ratably over time. Contracts structured using MVCs with fixed deficiency fee rates require customers to transport or store a minimum volume of natural gas over a specified time period. If a customer fails to meet its MVCs for the specified time period, the contract consideration includes a fixed rate for the actual volumes transported, gathered or stored, and a deficiency fee for the shortfall between the MVCs and the actual volumes transported, gathered or stored. If a customer exceeds its MVC for the specified time period, the contract consideration is based on fixed rates for the actual volumes transported, gathered or stored. The contract consideration is allocated to each distinct monthly performance obligation, consistent with the allocation objective and based upon the level of effort required to satisfy the service obligation. Revenues are generally recognized over time based on the output measure of natural gas volumes transported, gathered or stored, with the recognition of the deficiency fee revenue in the period when it is known the customer cannot make up the deficient volumes in the specified time period. Interruptible service revenue contracts typically contain fixed rates, with total consideration dependent on actual natural gas volumes that flow. Interruptible service revenues are recognized over time based on the output measure of natural gas volumes transported, gathered or stored. Certain of our gathering contracts allow for the recovery of production-related operating expenses, which are recorded as revenue and operating expense.
Contract Liabilities
The following is a summary of contract liability activity:
2023
(millions)
Balance at January 1$32 
Increases due to cash received or receivable, excluding amounts recognized as revenue during the period5 
Revenue recognized that was included in the balance at the beginning of the period(1)
Balance at March 31
$36 
The contract liabilities at DT Midstream generally represent amounts paid by customers for which the associated performance obligation has not yet been satisfied. Contract liabilities associated with these services are recognized upon delivery of the service to the customer.
The following table presents contract liability amounts as of March 31, 2023 that are expected to be recognized as revenue in future periods:
(millions)
Remainder of 2023$3 
20244 
20255 
20265 
20275 
2028 and thereafter14 
Total$36 
Transaction Price Allocated to the Remaining Performance Obligations
In accordance with optional exemptions available under Topic 606, DT Midstream does not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less, (2) with the exception of fixed consideration, contracts for which the amount of revenue recognized depends upon DT Midstream's invoices for actual volumes transported, gathered or stored, and (3) contracts for which variable consideration relates entirely to an unsatisfied performance obligation.
Such contracts consist of various types of performance obligations, including providing midstream services. Contracts with variable volumes and/or variable pricing, including those with pricing provisions tied to a consumer price or other index, have also been excluded as the related contract consideration is variable at the contract inception. Contract lengths vary from cancellable to multi-year.
The following table presents revenue amounts related to fixed consideration associated with unsatisfied performance obligations as of March 31, 2023 that are expected to be recognized as revenue in future periods:
(millions)
Remainder of 2023$79 
202496 
202586 
202657 
202735 
2028 and thereafter50 
Total$403 
Costs to Obtain or Fulfill a Contract
DT Midstream recognizes an asset from the costs incurred to obtain a revenue contract only if it expects to recover those costs. In addition, the costs to fulfill a revenue contract are capitalized if the costs are specifically identifiable to a revenue contract, would result in enhancing resources that will be used in satisfying performance obligations in the future, and are expected to be recovered. These capitalized costs are amortized on a systematic basis consistent with the pattern of transfer of the services to which such costs relate.
As of both March 31, 2023 and December 31, 2022, the Company had capitalized costs to obtain or fulfill a contract of $19 million, which are included in other current assets and other noncurrent assets in the accompanying Consolidated Statements of Financial Position. During the three months ended March 31, 2023 and 2022, we recognized less than $1 million of amortization expense related to such capitalized costs.