Revenues

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]


5.	REVENUES

Disaggregation of Revenues

Revenues – related party disaggregated by activity type were as follows (in thousands):



	Pipeline Transportation		Terminaling		Storage and Other		Total
Three Months Ended September 30, 2018:
Revenues from lease contracts	$	17,702	$	93,874	$	502	$	112,078
Revenues from contracts with customer	13,861		13,215		1,436		28,512
Total revenues – related party	$	31,563	$	107,089	$	1,938	$	140,590

Three Months Ended September 30, 2017:
Revenues from lease contracts	$	11,197	$	74,476	$	138	$	85,811
Revenues from contracts with customer	11,845		10,681		1,003		23,529
Total revenues – related party	$	23,042	$	85,157	$	1,141	$	109,340

Nine Months Ended September 30, 2018:
Revenues from lease contracts	$	53,584	$	270,933	$	1,138	$	325,655
Revenues from contracts with customer	39,654		37,823		4,027		81,504
Total revenues – related party	$	93,238	$	308,756	$	5,165	$	407,159

Nine Months Ended September 30, 2017:
Revenues from lease contracts	$	33,379	$	217,793	$	408	$	251,580
Revenues from contracts with customer	37,697		34,667		1,757		74,121
Total revenues – related party	$	71,076	$	252,460	$	2,165	$	325,701

Operating Leases – Lessor

As described in Note 1, certain schedules under our commercial agreements with Valero are considered operating leases under U.S. GAAP. These agreements contain minimum throughput commitments and escalation clauses to adjust transportation tariffs and terminaling and storage fees to reflect changes in price indices. Revenues from lease contracts are reflected separately on our statements of income. The components of our revenues from lease contracts were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Minimum lease revenues	$	91,059	$	70,588	$	270,257	$	208,859
Contingent lease revenues	21,019		15,223		55,398		42,721
Revenues from lease contracts	$	112,078	$	85,811	$	325,655	$	251,580

Receivables from Contracts with Customer

Our receivables from contracts with our customer are included in receivables – related party. These balances were $9.1 million and $8.3 million as of September 30, 2018 and January 1, 2018, respectively.

Future Minimum Rentals and Remaining Performance Obligations

As of September 30, 2018, future minimum rentals to be received for operating leases (described above) having initial or remaining noncancelable lease terms in excess of one year are shown below under “Lease Contracts,” and future revenues expected to be recognized from our remaining performance obligations from contracts with our customer with an original expected duration of greater than one year are shown below under “Contracts with Customer” (in thousands):



	Lease Contracts		Contracts with Customer
Remainder of 2018	$	91,060	$	20,462
2019	361,282		81,215
2020	362,268		81,426
2021	361,282		81,215
2022	361,282		81,215
Thereafter	2,914,596		116,994
Total	$	4,451,770	$	462,527

Our lease contracts and our contracts with our customer contain annual inflation escalation clauses that are (i) deemed contingent rentals and variable consideration, respectively, and (ii) applied to the remainder of the contracts. The amounts presented above exclude any estimates for future rate changes due to these inflation rate escalations as prescribed by the contracts.

VALERO ENERGY PARTNERS LP 10-Q