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Other Long-term Liabilities
9 Months Ended
Sep. 30, 2023
Other Liabilities, Noncurrent [Abstract]  
Other Long-term Liabilities

Note 7 — Other Long-term Liabilities

 

Other long-term liabilities are comprised of the following:

 

 

 

September 30, 2023

 

 

December 31, 2022

 

Deferred revenue

 

$

202.1

 

 

$

198.8

 

Asset retirement obligations

 

 

104.7

 

 

 

97.9

 

Operating lease liabilities

 

 

35.5

 

 

 

28.6

 

Other liabilities

 

 

15.9

 

 

 

15.9

 

Total other long-term liabilities

 

$

358.2

 

 

$

341.2

 

 

Deferred Revenue

 

We have certain long-term contractual arrangements for which we have received consideration that we are not yet able to recognize as revenue. The resulting deferred revenue will be recognized once all conditions for revenue recognition have been met.

 

Deferred revenue as of September 30, 2023 and December 31, 2022, was $202.1 million and $198.8 million, respectively, which includes $129.0 million of payments received from Vitol Americas Corp. (“Vitol”) (formerly known as Noble Americas Corp.), a subsidiary of Vitol US Holding Co., in 2016, 2017, and 2018 as part of an agreement (the “Splitter Agreement”) related to the construction and operation of a crude oil and condensate splitter. In December 2018, Vitol elected to terminate the Splitter Agreement. The Splitter Agreement provides that the first three annual payments are ours if Vitol elects to terminate, which Vitol disputes. The timing of revenue recognition related to the Splitter Agreement deferred revenue is dependent on the outcome of current litigation with Vitol. See Note 12 – Contingencies.

 

Deferred revenue includes nonmonetary consideration received in a 2015 amendment to a gas gathering and processing agreement and consideration received for other construction activities of facilities connected to our systems. Deferred revenue also includes contributions in aid of construction received from customers for which revenue is recognized over the expected contract term.