Revenue Recognition

9 Months Ended

Jun. 30, 2020

Revenue From Contract With Customer [Abstract]

Revenue Recognition

3) Revenue Recognition

The following disaggregates our revenue by major sources for the three and nine months ended June 30, 2020 and June 30, 2019:

	Three Months Ended June 30,				Nine Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Petroleum Products:
Home heating oil and propane	$	120,951	$	115,988	$	877,763	$	1,034,554
Other petroleum products		44,231		94,669		201,382		272,210
Total petroleum products		165,182		210,657		1,079,145		1,306,764
Installations and Services:
Equipment installations		21,548		24,344		72,271		74,711
Equipment maintenance service contracts		32,541		32,279		88,213		87,276
Billable call services		12,884		16,096		44,534		49,234
Total installations and services		66,973		72,719		205,018		211,221
Total Sales	$	232,155	$	283,376	$	1,284,163	$	1,517,985

Deferred Contract Costs 

We recognize an asset for incremental commission expenses paid to sales personnel in conjunction with obtaining new residential customer product and equipment maintenance service contracts. We defer these costs only when we have determined the commissions are, in fact, incremental and would not have been incurred absent the customer contract. Costs to obtain a contract are amortized and recorded ratably as delivery and branch expenses over the period representing the transfer of goods or services to which the assets relate.  Costs to obtain new residential product and equipment maintenance service contracts are amortized as expense over the estimated customer relationship period of approximately five years.  Deferred contract costs are classified as current or non-current within “Prepaid expenses and other current assets” and “Deferred charges and other assets, net,” respectively.  At June 30, 2020 the amount of deferred contract costs included in “Prepaid expenses and other current assets” and “Deferred charges and other assets, net” was $3.4 million and $5.9 million, respectively.  At September 30, 2019 the amount of deferred contract costs included in “Prepaid expenses and other current assets” and “Deferred charges and other assets, net” was $3.4 million and $5.9 million, respectively.  During the nine months ended June 30, 2020 and 2019 we recognized expense of $3.0 million each period associated with the amortization of deferred contract costs within “Delivery and branch expenses” in the Condensed Consolidated Statement of Operations. 

Contract Liability Balances

The Company has contract liabilities for advanced payments received from customers for future oil deliveries (primarily amounts received from customers on “smart pay” budget payment plans in advance of oil deliveries) and obligations to service customers with equipment maintenance service contracts.  Contract liabilities are recognized straight-line over the service contract period, generally one year or less.  As of June 30, 2020 and September 30, 2019 the Company had contract liabilities of $105.5 million and $127.0 million, respectively.  During the nine months ended June 30, 2020 the Company recognized $110.0 million of revenue that was included in the September 30, 2019 contract liability balance.  During the nine months ended June 30, 2019 the Company recognized $104.6 million of revenue that was included in the September 30, 2018 contract liability balance.