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Revenues and Accounts Receivable | 12 Months Ended
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Dec. 31, 2020
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. Supply and Logistics Segment Revenues from Contracts with Customers. The following table presents our Supply and Logistics segment revenues from contracts with customers disaggregated by type of activity (in millions):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Supply and Logistics segment revenues from contracts with customers |  |  |  |  |
Crude oil transactions | $ | 21,202 |  |  | $ | 30,082 |  |  | $ | 29,592 |
NGL and other transactions | 1,149 |  |  | 1,884 |  |  | 3,108 |
Total Supply and Logistics segment revenues from contracts with customers | $ | 22,351 |  |  | $ | 31,966 |  |  | $ | 32,700 |
Revenues from sales of crude oil, NGL and natural gas are recognized at the time title to the product sold transfers to the purchaser, which occurs upon delivery of the product to the purchaser or its designee. Sales of crude oil and NGL consist of outright sales contracts. The consideration received under these contracts is variable based on commodity prices. Inventory exchanges under buy/sell transactions are excluded from Supply and Logistics segment revenues in our Consolidated Statements of Operations. Revenues recognized by our Supply and Logistics segment primarily represent margin based activities. In addition, we have certain crude oil sales agreements that are entered into in conjunction with storage arrangements and future inventory exchanges. The revenues under these agreements are deferred until all performance obligations associated with the related agreements are completed. The inventory that has been sold under these crude oil sales agreements is reflected in “Other current assets” on our Consolidated Balance Sheet until all of our performance obligations are complete. At that time, the inventory that has been sold is removed from our Consolidated Balance Sheet and recorded as “Purchases and related costs” in our Consolidated Statement of Operations. See “Contract Balances” below for further discussion of contract liabilities associated with these agreements. The following table presents amounts in Other current assets and deferred revenue associated with these agreements (in millions):
| December 31,
| 2020 |  | 2019
Other current assets | $ | 229 |  |  | $ | 142 |
Deferred revenue (1) | $ | 361 |  |  | $ | 155 |
(1)Included in “Other current liabilities” on our Consolidated Balance Sheet. We may also utilize derivatives in connection with the transactions described above. Derivative revenue is not included as a component of revenue from contracts with customers, but is included in other items in revenue. The change in the fair value of derivatives that are not designated or do not qualify for hedge accounting is recognized in revenues each period. Transportation Segment Revenues from Contracts with Customers. The following table presents our Transportation segment revenues from contracts with customers disaggregated by type of activity (in millions):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Transportation segment revenues from contracts with customers |  |  |  |  |
Tariff activities: |  |  |  |  |
Crude oil pipelines | $ | 1,805 |  |  | $ | 2,039 |  |  | $ | 1,724 |
NGL pipelines | 101 |  |  | 99 |  |  | 103 |
Total tariff activities | 1,906 |  |  | 2,138 |  |  | 1,827 |
Trucking | 99 |  |  | 145 |  |  | 149 |
Total Transportation segment revenues from contracts with customers | $ | 2,005 |  |  | $ | 2,283 |  |  | $ | 1,976 |
Our Transportation segment operations generally consist of fee-based activities associated with transporting crude oil and NGL on pipelines and trucks. Revenues from pipeline tariffs and fees are associated with the transportation of crude oil and NGL at a published tariff. We primarily recognize pipeline tariff and fee revenues over time as services are rendered, based on the volumes transported. As is common in the pipeline transportation industry, our tariffs incorporate a loss allowance factor. We recognize the allowance volumes collected as part of the transaction price and record this non-cash consideration at fair value, measured as of the contract inception date. Facilities Segment Revenues from Contracts with Customers. The following table presents our Facilities segment revenues from contracts with customers disaggregated by type of activity (in millions):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Facilities segment revenues from contracts with customers |  |  |  |  |
Crude oil, NGL and other terminalling and storage | $ | 704 |  |  | $ | 697 |  |  | $ | 688 |
NGL and natural gas processing and fractionation | 350 |  |  | 349 |  |  | 364 |
Rail load / unload | 45 |  |  | 76 |  |  | 84 |
Total Facilities segment revenues from contracts with customers | $ | 1,099 |  |  | $ | 1,122 |  |  | $ | 1,136 |
Our Facilities segment operations generally consist of fee-based activities associated with providing storage, terminalling and throughput services primarily for crude oil, NGL and natural gas, as well as NGL fractionation and isomerization services and natural gas and condensate processing services. Revenues generated in this segment include (i) fees that are generated when we receive liquids from one connecting source and deliver the applicable product to another connecting carrier, fees from storage capacity agreements and fees associated with natural gas storage related activities (collectively “Crude oil, NGL and other terminalling and storage”), (ii) fees from natural gas and condensate processing services and from NGL fractionation and isomerization services (collectively, “NGL and natural gas processing and fractionation”) and (iii) loading and unloading fees at our rail terminals. We generate revenue through a combination of month-to-month and multi-year agreements and processing arrangements. Storage fees are typically recognized in revenue ratably over the term of the contract regardless of the actual storage capacity utilized as our performance obligation is to make available storage capacity for a period of time. Terminal fees (including throughput and rail fees) are recognized as the liquids enter or exit the terminal and are received from or delivered to the connecting carrier or third-party terminal, as applicable. Fees from NGL fractionation and isomerization services and gas processing services are recognized in the period when the services are performed. Natural gas storage related activities fees are recognized in the period the natural gas moves across our header system. We recognize rail loading and unloading fees when the volumes are delivered or received. Reconciliation to Total Revenues of Reportable Segments. The following disclosures only include information regarding revenues associated with consolidated entities, and revenues from entities accounted for by the equity method are not included in the disclosures. 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 Consolidated Statements of Operations (in millions):
Year Ended December 31, 2020 |  | Transportation |  | Facilities |  | Supply and Logistics |  | Total
Revenues from contracts with customers |  | $ | 2,005 |  |  | $ | 1,099 |  |  | $ | 22,351 |  |  | $ | 25,455 |
Other items in revenues |  | 15 |  |  | 39 |  |  | (292) |  |  | (238) |
Total revenues of reportable segments |  | $ | 2,020 |  |  | $ | 1,138 |  |  | $ | 22,059 |  |  | $ | 25,217 |
Intersegment revenues |  |  |  |  |  |  |  | (1,927) |
Total revenues |  |  |  |  |  |  |  | $ | 23,290 |
Year Ended December 31, 2019 |  | Transportation |  | Facilities |  | Supply and Logistics |  | Total
Revenues from contracts with customers |  | $ | 2,283 |  |  | $ | 1,122 |  |  | $ | 31,966 |  |  | $ | 35,371 |
Other items in revenues |  | 37 |  |  | 49 |  |  | 310 |  |  | 396 |
Total revenues of reportable segments |  | $ | 2,320 |  |  | $ | 1,171 |  |  | $ | 32,276 |  |  | $ | 35,767 |
Intersegment revenues |  |  |  |  |  |  |  | (2,098) |
Total revenues |  |  |  |  |  |  |  | $ | 33,669 |
Year Ended December 31, 2018 |  | Transportation |  | Facilities |  | Supply and Logistics |  | Total
Revenues from contracts with customers |  | $ | 1,976 |  |  | $ | 1,136 |  |  | $ | 32,700 |  |  | $ | 35,812 |
Other items in revenues |  | 14 |  |  | 25 |  |  | 122 |  |  | 161 |
Total revenues of reportable segments |  | $ | 1,990 |  |  | $ | 1,161 |  |  | $ | 32,822 |  |  | $ | 35,973 |
Intersegment revenues |  |  |  |  |  |  |  | (1,918) |
Total revenues |  |  |  |  |  |  |  | $ | 34,055 |
Minimum Volume Commitments. We have certain agreements that require counterparties to transport or throughput a minimum volume over an agreed upon period. Some of these agreements include make-up rights if the minimum volume is not met. We record a receivable from the counterparty in the period that services are provided or when the transaction occurs, including amounts for deficiency obligations from counterparties associated with minimum volume commitments. If a counterparty has a make-up right associated with a deficiency, we defer the revenue attributable to the counterparty’s make-up right as a contract liability and subsequently recognize the revenue at the earlier of when the deficiency volume is delivered or shipped, when the make-up right expires or when it is determined that the counterparty’s ability to utilize the make-up right is remote. 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):
|  |  |  | December 31,
Counterparty deficiencies |  | Financial Statement Classification |  | 2020 |  | 2019
Billed and collected |  | Liability |  | $ | 73 |  |  | $ | 22 |
Unbilled (1) |  | N/A |  | 4 |  |  | 20 |
Total |  |  |  | $ | 77 |  |  | $ | 42 |
(1)Amounts were related to deficiencies for which the counterparties had not met their contractual minimum commitments and are not reflected in our 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 changes in the liability balance associated with contracts with customers (in millions):
| Contract Liabilities
Balance at December 31, 2018 | $ | 338 |
Amounts recognized as revenue | (227) |
Additions (1) | 244 |
Other | (1) |
Balance at December 31, 2019 | $ | 354 |
Amounts recognized as revenue (1) | (246) |
Additions (2) | 393 |
Balance at December 31, 2020 | $ | 501 |
(1)Includes approximately $155 million associated with crude oil sales agreements that are entered into in conjunction with storage arrangements and future inventory exchanges. Such amount was recognized as revenue in the first quarter of 2020. (2)Includes approximately $361 million, as discussed above, associated with crude oil sales agreements that are entered into in conjunction with storage arrangements and future inventory exchanges. Such amount is expected to be recognized as revenue in the first quarter of 2021. Remaining Performance Obligations. The information below includes the amount of consideration allocated to partially and wholly unsatisfied 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 December 31, 2020 (in millions):
| 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 and Thereafter
Pipeline revenues supported by minimum volume commitments and capacity agreements (1) | $ | 174 |  |  | $ | 166 |  |  | $ | 170 |  |  | $ | 142 |  |  | $ | 125 |  |  | $ | 455 |
Storage, terminalling and throughput agreement revenues | 340 |  |  | 273 |  |  | 206 |  |  | 173 |  |  | 114 |  |  | 328 |
Total | $ | 514 |  |  | $ | 439 |  |  | $ | 376 |  |  | $ | 315 |  |  | $ | 239 |  |  | $ | 783 |
(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, as discussed below; •Transportation and Facilities contracts that are short-term, as discussed below; •Contracts within the scope of ASC Topic 842, Leases; and •Contracts within the scope of ASC Topic 815, Derivatives and Hedging. We have elected practical expedients to exclude the presentation of remaining performance obligations for variable consideration which relates to wholly unsatisfied performance obligations. Certain contracts do not meet the requirements for presentation of remaining performance obligations due to variability in amount of performance obligation remaining, variability in the timing of recognition or variability in consideration. Acreage dedications do require us to perform future services but do not contain a minimum level of services and are therefore excluded from this presentation. Long-term supply and logistics arrangements contain variable timing, volumes and/or consideration and are excluded from this presentation. The duration of these contracts varies across the periods presented above. Additionally, we have elected practical expedients to exclude contracts with terms of one year or less, and therefore exclude the presentation of remaining performance obligations for short-term transportation, storage and processing services, supply and logistics arrangements, including the non-cancelable period of evergreen arrangements, and any other types of arrangements with terms of one year or less. 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 December 31, 2020 and 2019, substantially all of our trade accounts receivable were less than 30 days past their scheduled invoice date. Our expected credit losses are immaterial. Although we consider our credit procedures to be adequate to mitigate any significant credit losses, given the sharp decline in demand for crude oil and the drop in prices, 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 Consolidated Balance Sheets (in millions):
| December 31,
| 2020 |  | 2019
Trade accounts receivable arising from revenues from contracts with customers | $ | 2,317 |  |  | $ | 3,381 |
Other trade accounts receivables and other receivables (1) | 2,818 |  |  | 3,576 |
Impact due to contractual rights of offset with counterparties | (2,582) |  |  | (3,343) |
Trade accounts receivable and other receivables, net | $ | 2,553 |  |  | $ | 3,614 |
(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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