Revenue from Contract with Customers

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

9. Revenue from Contracts with Customers

Disaggregation of Revenue

The following table presents our revenue from contracts with customers disaggregated by revenue source (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Contract operations ⁽¹⁾:
0 - 1,000 horsepower per unit	$	66,026	$	60,725	$	193,448	$	179,917
1,001 - 1,500 horsepower per unit	81,755		69,663		231,693		204,841
Over 1,500 horsepower per unit	49,572		38,053		138,966		108,367
Other ⁽²⁾	984		1,068		2,995		3,031
Total contract operations ⁽³⁾	198,337		169,509		567,102		496,156

Aftermarket services ⁽¹⁾:
Services ⁽⁴⁾	28,888		38,863		95,689		107,776
OTC parts and components sales	17,724		24,000		56,707		67,350
Total aftermarket services ⁽⁵⁾	46,612		62,863		152,396		175,126

Total revenue	$	244,949	$	232,372	$	719,498	$	671,282

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⁽¹⁾	We operate in two segments: contract operations and aftermarket services. See Note 21 (“Segments”) for further details.


⁽²⁾	Primarily relates to fees associated with owned non-compressor equipment.


⁽³⁾	Included $1.6 million for each of the three months ended September 30, 2019 and 2018 and $6.0 million and $4.3 million for the nine months ended September 30, 2019 and 2018, respectively, related to billable maintenance on owned units that was recognized at a point in time. All other contract operations revenue is recognized over time.


⁽⁴⁾	Included a reversal of $0.7 million of revenue during the three and nine months ended September 30, 2019 related to changes in estimates of performance obligations partially satisfied in prior periods.


⁽⁵⁾	All service revenue within aftermarket services is recognized over time. All OTC parts and components sales revenue is recognized at a point in time.

Performance Obligations

As of September 30, 2019, we had $453.2 million of remaining performance obligations related to our contract operations segment. We have elected to apply the practical expedient to not consider the effects of the time value of money, as the expected time between the transfer of services and payment for such services is less than one year. The remaining performance obligations will be recognized through 2024 as follows (in thousands):



	2019		2020		2021		2022		2023		2024		Total
Remaining performance obligations	$	114,677	$	198,753	$	100,244	$	34,878	$	4,090	$	563	$	453,205

As of September 30, 2019 we have elected to apply the practical expedient to not disclose the aggregate transaction price for the remaining performance obligations for aftermarket services, as there are no contracts with customers with an original contract term that is greater than one year.

Contract Balances

As of September 30, 2019 and December 31, 2018, our receivables from contracts with customers, net of allowance for doubtful accounts, were $151.3 million and $142.1 million, respectively.

Freight billings to customers for the transport of compressor assets, customer-specified modifications of compressor assets and milestone billings on aftermarket services often result in a contract liability. As of September 30, 2019 and December 31, 2018, our contract liabilities were $11.0 million and $17.1 million, respectively, which were included in deferred revenue and other liabilities in our condensed consolidated balance sheets. We recognized $33.5 million of our December 31, 2018 contract liability balance as revenue during the nine months ended September 30, 2019.