v3.22.2.2
Revenues
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenues are generally recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. See Note 1 for further discussion of revenue recognition.

Disaggregated revenues were as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
(In thousands)(In thousands)
Pipelines$77,147 $67,354 $210,246 $202,180 
Terminals, tanks and loading racks44,432 33,317 126,005 108,386 
Refinery processing units27,423 21,913 68,719 65,436 
$149,002 $122,584 $404,970 $376,002 

Revenues on our consolidated statements of income were composed of the following lease and service revenues:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
(In thousands)(In thousands)
Lease revenues$92,697 $84,074 $247,137 $258,877 
Service revenues56,305 38,510 157,833 117,125 
$149,002 $122,584 $404,970 $376,002 
A contract liability exists when an entity is obligated to perform future services for a customer for which the entity has received consideration. Since HEP may be required to perform future services for these deficiency payments received, the deferred revenues on our balance sheets were considered contract liabilities. A contract asset exists when an entity has a right to consideration in exchange for goods or services transferred to a customer. Our consolidated balance sheets included the contract assets and liabilities in the table below:
September 30,
2022		December 31,
2021
 (In thousands)
Contract assets$6,700 $6,637 
Contract liabilities$(256)$(4,185)

The contract assets and liabilities include both lease and service components. During the nine months ended September 30, 2022 and 2021, we recognized $3.9 million and $0.5 million, respectively, of revenue that was previously included in contract
liability as of December 31, 2021 and 2020, respectively. During the nine months ended September 30, 2022 and 2021, we also recognized $0.1 million and $0.3 million, respectively, of revenue included in contract assets.

As of September 30, 2022, we expect to recognize $1.6 billion in revenue related to our unfulfilled performance obligations under the terms of our long-term throughput agreements and leases expiring in 2023 through 2037. These agreements generally provide for changes in the minimum revenue guarantees annually for increases or decreases in the Producer Price Index (“PPI”) or Federal Energy Regulatory Commission (“FERC”) index, with certain contracts having provisions that limit the level of the rate increases or decreases. We expect to recognize revenue for these unfulfilled performance obligations as shown in the table below (amounts shown in table include both service and lease revenues):
Years Ending December 31,(In millions)
Remainder of 2022$90 
2023301 
2024266 
2025185 
2026170 
2027137 
Thereafter408 
Total$1,557 
Payment terms under our contracts with customers are consistent with industry norms and are typically payable within 10 to 30 days of the date of invoice.