Revenues

We generate revenue by charging fees for gathering, transporting, offloading and storing crude oil; for storing intermediate products and feed stocks; for distributing, transporting and storing refined products; and for wholesale marketing. A significant portion of our revenue is derived from long-term commercial agreements with Delek, which provide for annual fee adjustments for increases or decreases in the PPI or FERC index (refer to Note 3 for a more detailed description of these agreements). In addition to the services we provide to Delek, we also generate substantial revenue from crude oil, intermediate and refined products transportation services for, and terminalling and marketing services to, third parties primarily in Texas, Tennessee and Arkansas. Certain of these services are provided pursuant to contractual agreements with third parties. Payment terms require customers to pay shortly after delivery and do not contain significant financing components.

The majority of our commercial agreements with Delek meet the definition of a lease since: (1) performance of the contracts is dependent on specified property, plant or equipment and (2) it is remote that one or more parties other than the customer will take more than a minor amount of the output associated with the specified property, plant or equipment. As part of our adoption of ASC 606, we applied the new revenue recognition standard only to the service component of these leases. The bifurcation of the lease and service components was based on an analysis of lease-related and service-related costs for each contract, adjusted for representative profit margins. The lease component continues to be accounted for under the applicable lease accounting guidance.

The following table represents a disaggregation of revenue for each reportable segment for the three months ended March 31, 2018 (in thousands):



	Pipelines and Transportation		Wholesale Marketing and Terminalling		Consolidated
Service Revenue - Third Party	$	4,251	$	309	$	4,560
Service Revenue - Affiliate ⁽¹⁾	19,897		9,566		29,463
Product Revenue - Third Party	—		101,717		101,717
Product Revenue - Affiliate	—		20,234		20,234
Lease Revenue - Affiliate	9,565		2,382		11,947
Total Revenue	$	33,713	$	134,208	$	167,921

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⁽¹⁾ Net of $0.6 million of amortization expense related to a customer contract intangible asset recorded in the wholesale marketing and terminalling segment.

As of March 31, 2018, we expect to recognize $1.2 billion in service and lease revenues related to our unfulfilled performance obligations pertaining to the minimum volume commitments and capacity utilization under the non-cancelable terms of our commercial agreements with Delek. We do not disclose information about remaining performance obligations that have original expected durations of one year or less.

Our unfulfilled performance obligations as of March 31, 2018 were as follows (in millions):



Remainder of 2018	$	122.3
2019	159.4
2020	159.1
2021	149.0
2022 and thereafter	630.9
Total expected revenue on remaining performance obligations	$	1,220.7