XML 85 R11.htm IDEA: XBRL DOCUMENT
v3.20.1

Revenues (Notes) | 3 Months Ended
--- | ---
Mar. 31, 2020
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 Holdings' 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 Holdings, 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 Holdings, 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, New Mexico, 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 Holdings meet the definition of a lease because: (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 Holdings will take more than a minor amount of the output associated with the specified property, plant or equipment. As part of our adoption of Accounting Standards Codification ("ASC") 842, Leases ("ASC 842"), we applied the permitted practical expedient to not separate lease and non-lease components under the predominance principle to designated asset classes associated with the provision of logistics services. We have determined that the predominant component of the related agreements currently in effect is the lease component. Therefore, the combined component is accounted for under the applicable lease accounting guidance. Of our $479.5 million net property, plant, and equipment balance as of March 31, 2020, $279.0 million is subject to operating leases under our commercial agreements. These agreements do not include options for the lessee to purchase our leasing equipment, nor do they include any material residual value guarantees or material restrictive covenants. The following table represents a disaggregation of revenue for each reportable segment for the periods indicated (in thousands):
|  | Three Months Ended March 31, 2020
|  | Pipelines and Transportation |  | Wholesale Marketing and Terminalling |  | Consolidated
Service Revenue - Third Party |  | $ | 9,465 |  |  | $ | 191 |  |  | $ | 9,656 |
Product Revenue - Third Party |  | — |  |  | 47,046 |  |  | 47,046 |
Product Revenue - Affiliate |  | — |  |  | 51,503 |  |  | 51,503 |
Lease Revenue - Affiliate (1) |  | 38,502 |  |  | 16,694 |  |  | 55,196 |
Total Revenue |  | $ | 47,967 |  |  | $ | 115,434 |  |  | $ | 163,401 |
(1) Net of $1.8 million of amortization expense for the three months ended March 31, 2020, related to a customer contract intangible asset recorded in the wholesale marketing and terminalling segment.
|  | Three Months Ended March 31, 2019
|  | Pipelines and Transportation |  | Wholesale Marketing and Terminalling |  | Consolidated
Service Revenue - Third Party |  | $ | 3,974 |  |  | $ | 120 |  |  | $ | 4,094 |
Product Revenue - Third Party |  | — |  |  | 85,424 |  |  | 85,424 |
Product Revenue - Affiliate |  | — |  |  | 9,386 |  |  | 9,386 |
Lease Revenue - Affiliate (1) |  | 36,659 |  |  | 16,920 |  |  | 53,579 |
Total Revenue |  | $ | 40,633 |  |  | $ | 111,850 |  |  | $ | 152,483 |
(1) Net of $1.8 million of amortization expense for the three months ended March 31, 2019, related to a customer contract intangible asset recorded in the wholesale marketing and terminalling segment. As of March 31, 2020, we expect to recognize $1.3 billion in 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 Holdings. Most of these agreements have an initial term ranging from five to ten years, which may be extended for various renewal terms. We disclose information about remaining performance obligations that have original expected durations of greater than one year. Our unfulfilled performance obligations as of March 31, 2020 were as follows (in thousands):
Remainder of 2020 |  | 157,039 |
2021 |  | 209,150 |
2022 |  | 208,095 |
2023 |  | 202,287 |
2024 and thereafter |  | $ | 504,649 |
Total expected revenue on remaining performance obligations |  | $ | 1,281,220 |

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