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Revenues | 9 Months Ended
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Sep. 30, 2023
Revenue from Contract with Customer [Abstract] |
Revenues | Revenues Revenue Recognition Revenue is recognized when obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our petroleum products, convenience merchandise, Renewable Identification Numbers ("RINs") and other assets to our third-party customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Excise and sales tax that we collect where we have determined we are the principal in the transaction have been recorded as revenue on a jurisdiction-by-jurisdiction basis. The Company enters into buy/sell and similar arrangements when petroleum products are held at one location but are needed at a different location. The Company often pays or receives funds related to the buy/sell arrangements based on location or quality differences. The Company continues to account for these transactions as non-monetary exchanges under existing accounting guidance and typically reports these on a net basis in the Consolidated Statements of Income. The following tables disaggregate our revenues by major source for the three and nine months ended September 30, 2023 and 2022, respectively:
|  | Three Months Ended September 30, 2023 |  | Three Months Ended September 30, 2022
(Millions of dollars) |  | Marketing |  | Corporate and Other Assets |  | Consolidated |  | Marketing |  | Corporate and Other Assets |  | Consolidated
Petroleum product sales (at retail) 1 |  | $ | 4,134.8 |  |  | $ | — |  |  | $ | 4,134.8 |  |  | $ | 4,550.4 |  |  | $ | — |  |  | $ | 4,550.4 |
Petroleum product sales (at wholesale) 1 |  | 524.0 |  |  | — |  |  | 524.0 |  |  | 528.2 |  |  | — |  |  | 528.2 |
Total petroleum product sales |  | 4,658.8 |  |  | — |  |  | 4,658.8 |  |  | 5,078.6 |  |  | — |  |  | 5,078.6 |
Merchandise sales |  | 1,055.6 |  |  | — |  |  | 1,055.6 |  |  | 1,027.2 |  |  | — |  |  | 1,027.2 |
Other operating revenues: |  |  |  |  |  |  |  |  |  |  |  |
RINs |  | 81.7 |  |  | — |  |  | 81.7 |  |  | 87.6 |  |  | — |  |  | 87.6 |
Other revenues 2 |  | 1.7 |  |  | 0.1 |  |  | 1.8 |  |  | 1.0 |  |  | 0.3 |  |  | 1.3 |
Total revenues |  | $ | 5,797.8 |  |  | $ | 0.1 |  |  | $ | 5,797.9 |  |  | $ | 6,194.4 |  |  | $ | 0.3 |  |  | $ | 6,194.7 |
|  | Nine Months Ended September 30, 2023 |  | Nine Months Ended September 30, 2022
(Millions of dollars) |  | Marketing |  | Corporate and Other Assets |  | Consolidated |  | Marketing |  | Corporate and Other Assets |  | Consolidated
Petroleum product sales (at retail) 1 |  | $ | 11,693.7 |  |  | — |  |  | $ | 11,693.7 |  |  | $ | 13,361.7 |  |  | $ | — |  |  | $ | 13,361.7 |
Petroleum product sales (at wholesale) 1 |  | 1,409.9 |  |  | — |  |  | 1,409.9 |  |  | 1,555.6 |  |  | — |  |  | 1,555.6 |
Total petroleum product sales |  | 13,103.6 |  |  | — |  |  | 13,103.6 |  |  | 14,917.3 |  |  | — |  |  | 14,917.3 |
Merchandise sales |  | 3,070.8 |  |  | — |  |  | 3,070.8 |  |  | 2,913.8 |  |  | — |  |  | 2,913.8 |
Other operating revenues: |  |  |  |  |  |  |  |  |  |  |  |
RINs |  | 281.2 |  |  | — |  |  | 281.2 |  |  | 243.6 |  |  | — |  |  | 243.6 |
Other revenues 2 |  | 4.7 |  |  | 0.2 |  |  | 4.9 |  |  | 4.7 |  |  | 0.4 |  |  | 5.1 |
Total revenues |  | $ | 16,460.3 |  |  | $ | 0.2 |  |  | $ | 16,460.5 |  |  | $ | 18,079.4 |  |  | $ | 0.4 |  |  | $ | 18,079.8 |
1 Includes excise and sales taxes that remain eligible for inclusion under Topic 606 2 Primarily includes collection allowance on excise and sales taxes and other miscellaneous items Marketing segment Petroleum product sales (at retail). For our retail store locations, the revenue related to petroleum product sales is recognized as the fuel is pumped to our customers. The transaction price at the pump typically includes some portion of sales or excise taxes as levied in the respective jurisdictions. Those taxes that are collected for remittance to governmental entities on a pass-through basis are not recognized as revenue and they are recorded to a liability account until they are paid. Our customers typically use a mixture of cash, checks, credit cards and debit cards to pay for our products as they are received. We have accounts receivable from the various credit/debit card providers at any point in time related to product sales made on credit cards and debit cards. These receivables are typically collected in two to seven days, depending on the terms with the particular credit/debit card providers. Payment fees retained by the credit/debit card providers are recorded as Store and other operating expenses in the Consolidated Statements of Income. Petroleum product sales (at wholesale). Our sales of petroleum products at wholesale are generally recorded as revenue when the deliveries have occurred and legal ownership of the product has transferred to the customer. Title transfer for bulk refined product sales typically occurs at pipeline custody points and upon trucks loading at product terminals. For bulk pipeline sales, we record receivables from customers that are generally collected within a week from custody transfer date. For our rack product sales, the majority of our customers' accounts are drafted by us within 10 days from product transfer. Merchandise sales. For our retail store locations, the revenue related to merchandise sales is recognized as the customer completes their purchase at our locations. The transaction price typically includes some portion of sales tax as levied in the respective jurisdictions. Those taxes that are collected for remittance to governmental entities on a pass-through basis are not recognized as revenue and they are recorded to a liability account until they are paid. As noted above, a mixture of payment types are used for these revenues and the same terms for credit/debit card receivables are realized. The most significant judgment with respect to merchandise sales revenue is determining whether we are the principal or agent for some categories of merchandise such as lottery tickets, lotto, newspapers and other small categories of merchandise. For scratch-off lottery tickets, we have determined we are the principal in the majority of the jurisdictions and therefore we record those sales on a gross basis. We have some categories of merchandise (such as lotto) where we are the agent and the revenues recorded for those transactions are our net commission only. The Company offers loyalty programs through its Murphy USA, Murphy Express, and QuickChek branded retail locations. The customers earn rewards based on their spending or other promotional activities. These programs create a performance obligation which requires us to defer a portion of sales revenue to the loyalty program participants until they redeem their rewards. The rewards may be redeemed for free or discounted merchandise or cash discounts at all stores and on fuel purchases at Murphy USA and Murphy Express stores. Earned rewards expire after an account is inactive for a period of 90 days at Murphy USA and Murphy Express, while certain QuickChek rewards require use within the month. We recognize loyalty revenue when a customer redeems an earned reward. Deferred revenue associated with both rewards programs are included in Trade accounts payable and accrued liabilities in our Consolidated Balance Sheets. The deferred revenue balances at September 30, 2023 and December 31, 2022 were immaterial. RINs sales. For the sale of RINs, we recognize revenue when the RIN is transferred to the counter-party and the sale is completed. Receivables from our counter-parties related to the RIN sales are typically collected within five days of the sale. Other revenues. Items reported as other operating revenues include collection allowances for excise and sales tax and other miscellaneous items and are recognized as revenue when the transaction is completed. Accounts receivable Trade accounts receivable on the balance sheet represents both receivables related to contracts with customers and other trade receivables. At September 30, 2023 and December 31, 2022, we had $215.8 million and $164.1 million of receivables, respectively, related to contracts with customers recorded. All of the trade accounts receivable related to contracts with customers outstanding at the end of each period were collected during the succeeding quarter. These receivables were generally related to credit and debit card transactions along with short term bulk and wholesale sales to our customers, which have a very short settlement window.

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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 -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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