Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenues from Contracts with Customers

The following table presents the Partnership's Coal Royalty and Other segment revenues by major source:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(In thousands)	2020		2019		2020		2019
Coal royalty revenues (1)	$	10,610	$	24,727	$	40,559	$	87,561
Production lease minimum revenues (1)	4,267		2,752		13,554		21,331
Minimum lease straight-line revenues (1)	3,553		3,982		12,349		11,152
Property tax revenues	1,896		1,606		4,256		4,416
Wheelage revenues	1,680		1,675		5,468		5,035
Coal overriding royalty revenues	1,314		2,189		3,319		10,163
Lease amendment revenues	858		1,535		2,591		6,720
Aggregates royalty revenues	221		954		1,068		3,655
Oil and gas royalty revenues	1,078		374		4,923		2,575
Other revenues	263		125		752		1,429
Coal royalty and other revenues	$	25,740	$	39,919	$	88,839	$	154,037
Transportation and processing services revenues (2)	2,204		3,865		6,651		14,740
Total coal royalty and other segment revenues	$	27,944	$	43,784	$	95,490	$	168,777

(1)Effective January 1, 2020, certain revenues previously classified as coal royalty revenues are classified as production lease minimum revenues or minimum lease straight-line revenues due to contract modifications to certain leases that fixed consideration paid to the Partnership over a two year period.

(2)Transportation and processing services revenues from contracts with customers as defined under ASC 606 was $1.2 million and $1.7 million for the three months ended September 30, 2020 and 2019, respectively and $3.7 million and $7.3 million for the nine months ended September 30, 2020 and 2019, respectively. The remaining transportation and processing services revenues of $1.0 million and $2.2 million for the three months ended September 30, 2020 and 2019, respectively, and $2.9 million and $7.5 million for the nine months ended September 30, 2020 and 2019, respectively, related to other NRP-owned infrastructure leased to and operated by third-party operators accounted for under other guidance. See Note 14. Financing Transaction for more information.

The following table details the Partnership's Coal Royalty and Other segment receivables and liabilities resulting from contracts with customers:

	September 30,		December 31,
(In thousands)	2020		2019
Receivables
Accounts receivable, net	$	15,371	$	27,915
Other current assets, net (1)	3,696		90
Other long-term assets, net (2)	691		—
Contract liabilities
Current portion of deferred revenue	$	11,035	$	4,608
Deferred revenue	50,980		47,213

(1)Other current assets, net includes short-term notes receivables from contracts with customers.

(2)Other long-term assets, net includes long-term notes receivables from contracts with customers.

The following table shows the activity related to the Partnership's Coal Royalty and Other segment deferred revenue:

	For the Nine Months Ended September 30,
(In thousands)	2020		2019
Balance at beginning of period (current and non-current)	$	51,821	$	52,553
Increase due to minimums and lease amendment fees	38,005		37,315
Recognition of previously deferred revenue	(27,811)		(41,234)
Balance at end of period (current and non-current)	$	62,015	$	48,634

The Partnership's non-cancelable annual minimum payments due under the lease terms of its coal and aggregates royalty and overriding royalty leases are as follows as of September 30, 2020 (in thousands):

Lease Term (1)	Weighted Average Remaining Years	Annual Minimum Payments (2)
0 - 5 years	3.7	$	14,792
5 - 10 years	5.7	7,478
10+ years	13.5	30,922
Total	9.3	$	53,192

(1)Lease term does not include renewal periods.

(2)Annual minimum payments do not include $40.0 million of annual fixed consideration owed to NRP in 2020 and 2021 resulting from contract modifications entered into during the second quarter of 2020. Additionally, $5.0 million of this $40.0 million annual fixed consideration amount relates to a coal infrastructure lease that is accounted for as a financing transaction. See Note 14. Financing Transaction for more information.