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Revenue
3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregation of Revenue
The following tables represent a disaggregation of revenue for each reportable segment for the three months ended March 31, 2024 and March 31, 2023:
Three Months Ended March 31, 2024
(In millions)L&SG&PTotal
Revenues and other income:
Service revenue$85 $573 $658 
Service revenue - related parties982 986 
Service revenue - product related— 95 95 
Product sales368 370 
Product sales - related parties60 63 
Total revenues from contracts with customers$1,072 $1,100 2,172 
Non-ASC 606 revenue(1)
674 
Total revenues and other income$2,846 
Three Months Ended March 31, 2023
(In millions)L&SG&PTotal
Revenues and other income:
Service revenue$83 $522 $605 
Service revenue - related parties950 953 
Service revenue - product related— 79 79 
Product sales418 420 
Product sales - related parties67 70 
Total revenues from contracts with customers$1,038 $1,089 2,127 
Non-ASC 606 revenue(1)
586 
Total revenues and other income$2,713 
(1)    Non-ASC 606 Revenue includes rental income, sales-type lease revenue, income from equity method investments, and other income.
Contract Balances
Our receivables are primarily associated with customer contracts. Payment terms vary by product or service type; however, the period between invoicing and payment is not significant. Included within the receivables are balances related to commodity sales on behalf of our producer customers, for which we remit the net sales price back to the producer customers upon completion of the sale.
Under certain of our contracts, we recognize revenues in excess of billings which we present as contract assets. Contract assets typically relate to deficiency payments related to minimum volume commitments and aid in construction agreements where the revenue recognized and MPLX’s rights to consideration for work completed exceeds the amount billed to the customer. Contract assets are included in Other current assets and Other noncurrent assets on the Consolidated Balance Sheets.
Under certain of our contracts, we receive payments in advance of satisfying our performance obligations, which are recorded as contract liabilities. Contract liabilities, which we present as Deferred revenue and Long-term deferred revenue, typically relate to advance payments for aid in construction agreements and deferred customer credits associated with makeup rights and minimum volume commitments. Related to minimum volume commitments, breakage is estimated and recognized into service revenue in instances where it is probable the customer will not use the credit in future periods. We classify contract liabilities as current or long-term based on the timing of when we expect to recognize revenue.
The tables below reflect the changes in ASC 606 contract balances for the three months ended March 31, 2024 and March 31, 2023:
(In millions)Balance at December 31, 2023Additions/ (Deletions)
Revenue Recognized(1)
Balance at March 31, 2024
Contract assets$$(1)$— $
Long-term contract assets— — 
Deferred revenue59 19 (12)66 
Deferred revenue - related parties47 27 (20)54 
Long-term deferred revenue344 — 346 
Long-term deferred revenue - related parties$29 $— $— $29 
(In millions)Balance at December 31, 2022Additions/ (Deletions)
Revenue Recognized(1)
Balance at March 31, 2023
Contract assets$21 $(5)$— $16 
Long-term contract assets(1)— — 
Deferred revenue57 (14)45 
Deferred revenue - related parties63 32 (26)69 
Long-term deferred revenue216 15 — 231 
Long-term deferred revenue - related parties25 — 26 
Contract liabilities— — 
Long-term contract liabilities$$(2)$— $— 
(1)    No significant revenue was recognized related to past performance obligations in the current periods.
Remaining Performance Obligations
The table below includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2024. The amounts presented below are generally limited to fixed consideration from contracts with customers that contain minimum volume commitments.
A significant portion of our future contracted revenue is excluded from the amounts presented below in accordance with ASC 606. Variable consideration that is constrained or not required to be estimated as it reflects our efforts to perform is excluded from this disclosure. Additionally, we do not disclose information on the future performance obligations for any contract with an original expected duration of one year or less, or that are terminable by our customer with little or no termination penalties. Potential future performance obligations related to renewals that have not yet been exercised or are not certain of exercise are excluded from the amounts presented below. Revenues classified as Rental income and Sales-type lease revenue are also excluded from this table.
(In billions)
2024$1.5 
20252.0 
20261.8 
20271.7 
20280.5 
2029 and thereafter0.6 
Total estimated revenue on remaining performance obligations$8.1 
As of March 31, 2024, unsatisfied performance obligations included in the Consolidated Balance Sheets are $495 million and will be recognized as revenue as the obligations are satisfied, which is expected to occur over the next 21 years. A portion of this amount is not disclosed in the table above as it is deemed variable consideration due to volume variability.