XML 57 R17.htm IDEA: XBRL DOCUMENT
v3.20.2

Revenue | 9 Months Ended
--- | ---
Sep. 30, 2020
Revenue from Contract with Customer [Abstract] |
Revenue | (10) Revenue The following tables present the Company’s revenue, disaggregated by major product. The following tables include a reconciliation of the disaggregated revenue with the Company’s reportable segments.
| Three Months Ended September 30, 2020 |  | Nine Months Ended September 30, 2020
(in millions) | Petroleum |  | Nitrogen Fertilizer |  | Other / Elimination |  | Consolidated |  | Petroleum |  | Nitrogen Fertilizer |  | Other / Elimination |  | Consolidated
Major Product |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gasoline | $ | 513 |  |  | $ | — |  |  | $ | — |  |  | $ | 513 |  |  | $ | 1,329 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,329 |
Distillates (1) | 381 |  |  | — |  |  | — |  |  | 381 |  |  | 1,102 |  |  | — |  |  | — |  |  | 1,102 |
Ammonia | — |  |  | 13 |  |  | — |  |  | 13 |  |  | — |  |  | 64 |  |  | — |  |  | 64 |
UAN | — |  |  | 51 |  |  | — |  |  | 51 |  |  | — |  |  | 153 |  |  | — |  |  | 153 |
Other urea products | — |  |  | 3 |  |  | — |  |  | 3 |  |  | — |  |  | 11 |  |  | — |  |  | 11 |
Freight revenue | 4 |  |  | 10 |  |  | — |  |  | 14 |  |  | 13 |  |  | 24 |  |  | — |  |  | 37 |
Other (2) | 21 |  |  | 2 |  |  | (1) |  |  | 22 |  |  | 56 |  |  | 8 |  |  | (5) |  |  | 59 |
Revenue from product sales | 919 |  |  | 79 |  |  | (1) |  |  | 997 |  |  | 2,500 |  |  | 260 |  |  | (5) |  |  | 2,755 |
Crude oil sales | 8 |  |  | — |  |  | — |  |  | 8 |  |  | 55 |  |  | — |  |  | — |  |  | 55 |
Other revenue (2) | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 1 |
Net sales | $ | 927 |  |  | $ | 79 |  |  | $ | (1) |  |  | $ | 1,005 |  |  | $ | 2,556 |  |  | $ | 260 |  |  | $ | (5) |  |  | $ | 2,811 |
| Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019
(in millions) | Petroleum |  | Nitrogen Fertilizer |  | Other / Elimination |  | Consolidated |  | Petroleum |  | Nitrogen Fertilizer |  | Other / Elimination |  | Consolidated
Major Product |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gasoline | $ | 796 |  |  | $ | — |  |  | $ | — |  |  | $ | 796 |  |  | $ | 2,285 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,285 |
Distillates (1) | 692 |  |  | — |  |  | — |  |  | 692 |  |  | 2,035 |  |  | — |  |  | — |  |  | 2,035 |
Ammonia | — |  |  | 11 |  |  | — |  |  | 11 |  |  | — |  |  | 74 |  |  | — |  |  | 74 |
UAN | — |  |  | 62 |  |  | — |  |  | 62 |  |  | — |  |  | 200 |  |  | — |  |  | 200 |
Other urea products | — |  |  | 5 |  |  | — |  |  | 5 |  |  | — |  |  | 14 |  |  | — |  |  | 14 |
Freight revenue | 6 |  |  | 9 |  |  | — |  |  | 15 |  |  | 17 |  |  | 24 |  |  | — |  |  | 41 |
Other (2) | 34 |  |  | 2 |  |  | (2) |  |  | 34 |  |  | 108 |  |  | 6 |  |  | (8) |  |  | 106 |
Revenue from product sales | 1,528 |  |  | 89 |  |  | (2) |  |  | 1,615 |  |  | 4,445 |  |  | 318 |  |  | (8) |  |  | 4,755 |
Crude oil sales | 7 |  |  | — |  |  | — |  |  | 7 |  |  | 36 |  |  | — |  |  | — |  |  | 36 |
Net sales | $ | 1,535 |  |  | $ | 89 |  |  | $ | (2) |  |  | $ | 1,622 |  |  | $ | 4,484 |  |  | $ | 318 |  |  | $ | (8) |  |  | $ | 4,794 |
(1)Distillates consist primarily of diesel fuel, kerosene, and jet fuel. (2)Other revenue consists primarily of feedstock and asphalt sales. Petroleum Segment The Petroleum Segment’s revenue from product sales is recorded upon delivery to customers, which is the point at which title is transferred and the customer has assumed the risk of loss. This generally takes place as product passes into the pipeline, as a product transfer order occurs within a pipeline system, or as product enters equipment or locations supplied or designated by the customer. Qualifying excise and other taxes collected from the Petroleum Segment’s customers and remitted to governmental authorities are not included in reported revenues. Many of the Petroleum Segment’s contracts have index-based pricing which is considered variable consideration that should be estimated in determining the transaction price. The Petroleum Segment determined that it does not need to estimate the variable consideration because the uncertainty related to the consideration is resolved on the pricing date or the date when the product is delivered. The Petroleum Segment may incur broker commissions or transportation costs prior to product transfer on some of its sales. The Petroleum Segment expenses these broker costs, since the contract durations are less than a year. Transportation costs are accounted for as fulfillment costs and are expensed as incurred since they do not meet the requirement for capitalization. The Petroleum Segment’s contracts with its customers state the terms of the sale, including the description, quantity, and price of each product sold. Depending on the product sold, payment from customers is generally due in full within 2 to 32 days of product delivery or invoice date. The Petroleum Segment generally provides no warranty other than the implicit promise that goods delivered are free of liens and encumbrances and meet the agreed upon specification. The Petroleum Segment has determined that product returns or refunds are very rare and will account for them as they occur. Freight revenue recognized by the Petroleum Segment is primarily tariff and line loss charges rebilled to customers to reimburse the Petroleum Segment for expenses incurred from a pipeline operator. An offsetting expense is included in Cost of materials and other. Nitrogen Fertilizer Segment The Nitrogen Fertilizer Segment sells its products on a wholesale basis under a contract or by purchase order. The Nitrogen Fertilizer Segment’s contracts with customers generally contain fixed pricing and most have terms of less than one year. The Nitrogen Fertilizer Segment recognizes revenue at the point in time at which the customer obtains control of the product, which is generally upon delivery and acceptance by the customer. The customer acceptance point is stated in the contract and may be at one of the Nitrogen Fertilizer Segment’s manufacturing facilities, at one of the Nitrogen Fertilizer Segment’s off-site loading facilities, or at the customer’s designated facility. Freight revenue recognized by the Nitrogen Fertilizer Segment represents the pass-through finished goods delivery costs incurred prior to customer acceptance and is reimbursed by customers. An offsetting expense for freight is included in Cost of materials and other. Qualifying excise and other taxes collected from the Nitrogen Fertilizer Segment’s customers and remitted to governmental authorities are not included in reported revenues. Depending on the product sold and the type of contract, payments from customers are generally either due prior to delivery or within 15 to 30 days of product delivery. The Nitrogen Fertilizer Segment generally provides no warranty other than the implicit promise that goods delivered are free of liens and encumbrances and meet the agreed upon specifications. Product returns are rare, and as such, the Nitrogen Fertilizer Segment does not record a specific warranty reserve or consider activities related to such warranty, if any, to be a separate performance obligation. The Nitrogen Fertilizer Segment has an immaterial amount of variable consideration for contracts with an original duration of less than a year. A small portion of the Nitrogen Fertilizer Segment’s revenue includes contracts extending beyond one year, some of which contain variable pricing in which the majority of the variability is attributed to the market-based pricing. The Nitrogen Fertilizer Segment’s contracts do not contain a significant financing component. The Nitrogen Fertilizer Segment has an immaterial amount of fee-based revenue, included in other revenue in the table above, that is recognized based on the net amount of the proceeds received, consistent with prior accounting practice. Transaction price allocated to remaining performance obligations As of September 30, 2020, the Nitrogen Fertilizer Segment had approximately $7 million of remaining performance obligations for contracts with an original expected duration of more than one year. The Nitrogen Fertilizer Segment expects to recognize approximately $1 million of these performance obligations as revenue by the end of 2020, an additional $3 million in 2021, and the remaining balance thereafter. The Nitrogen Fertilizer Segment has elected to not disclose the amount of transaction price allocated to remaining performance obligations for contracts with an original expected duration of less than one year. The Nitrogen Fertilizer Segment has elected to not disclose variable consideration allocated to wholly unsatisfied performance obligations that are based on market prices that have not yet been determined. Contract balances The Nitrogen Fertilizer Segment’s deferred revenue is a contract liability that primarily relates to nitrogen fertilizer sales contracts requiring customer prepayment prior to product delivery to guarantee a price and supply of nitrogen fertilizer. Deferred revenue is recorded at the point in time in which a prepaid contract is legally enforceable and the associated right to consideration is unconditional prior to transferring product to the customer. An associated receivable is recorded for uncollected prepaid contract amounts. Contracts requiring prepayment are generally short-term in nature and, as discussed above, revenue is recognized at the point in time in which the customer obtains control of the product. A summary of the Nitrogen Fertilizer Segment’s deferred revenue activity during the nine months ended September 30, 2020 is presented below:
(in millions) |
Balance at December 31, 2019 | $ | 28 |
Add: |
New prepay contracts entered into during the period (1) | 28 |
Less: |
Revenue recognized that was included in the contract liability balance at the beginning of the period | (27) |
Revenue recognized related to contracts entered into during the period | (17) |
Balance at September 30, 2020 | $ | 12 |
(1) Includes $26 million where payment associated with prepaid contracts was collected as of September 30, 2020.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration