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Revenues (Notes) | 9 Months Ended
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Sep. 30, 2018
Revenue from Contract with Customer [Abstract] |
Revenues | 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; for marketing refined products output of Delek's Tyler and Big Spring refineries; and for wholesale marketing in the west Texas area. 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 CPI, 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 Delek 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 periods indicated (in thousands):
|  | Three Months Ended September 30, 2018
|  | Pipelines and Transportation |  | Wholesale Marketing and Terminalling |  | Consolidated
Service Revenue - Third Party |  | $ | 3,653 |  |  | $ | 64 |  |  | $ | 3,717 |
Service Revenue - Affiliate (1) |  | 24,536 |  |  | 14,921 |  |  | 39,457 |
Product Revenue - Third Party |  | — |  |  | 96,558 |  |  | 96,558 |
Product Revenue - Affiliate |  | — |  |  | 9,017 |  |  | 9,017 |
Lease Revenue - Affiliate |  | 11,596 |  |  | 3,765 |  |  | 15,361 |
Total Revenue |  | $ | 39,785 |  |  | $ | 124,325 |  |  | $ | 164,110 |
|  | Nine Months Ended September 30, 2018
|  | Pipelines and Transportation |  | Wholesale Marketing and Terminalling |  | Consolidated
Service Revenue - Third Party |  | $ | 11,618 |  |  | $ | 866 |  |  | $ | 12,484 |
Service Revenue - Affiliate (1) |  | 67,593 |  |  | 39,068 |  |  | 106,661 |
Product Revenue - Third Party |  | — |  |  | 307,268 |  |  | 307,268 |
Product Revenue - Affiliate |  | — |  |  | 30,045 |  |  | 30,045 |
Lease Revenue - Affiliate |  | 32,031 |  |  | 9,822 |  |  | 41,853 |
Total Revenue |  | $ | 111,242 |  |  | $ | 387,069 |  |  | $ | 498,311 |
(1) Net of $1.8 million and $4.2 million of amortization expense for the three and nine months ended, respectively, related to a customer contract intangible asset recorded in the wholesale marketing and terminalling segment. As of September 30, 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 September 30, 2018 were as follows (in thousands):
Remainder of 2018 |  |  |  | $ | 41,162 |
2019 |  |  |  | 164,646 |
2020 |  |  |  | 164,295 |
2021 |  |  |  | 153,541 |
2022 and thereafter |  |  |  | 635,164 |
Total expected revenue on remaining performance obligations |  |  |  | $ | 1,158,808 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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