XML 44 R15.htm IDEA: XBRL DOCUMENT v3.21.1
Revenue
3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue
(9) Revenue

The following table presents the Partnership’s revenue, disaggregated by major product:
Three Months Ended
March 31,
(in thousands)20212020
Ammonia$9,534 $14,147 
UAN 38,062 47,014 
Urea products4,758 3,533 
Net sales, exclusive of freight and other52,354 64,694 
Freight revenue6,114 7,722 
Other revenue2,453 2,664 
Net sales$60,921 $75,080 

Transaction Price Allocated to Remaining Performance Obligations

As of March 31, 2021, the Partnership had approximately $6.1 million of remaining performance obligations for contracts with an original expected duration of more than one year. The Partnership expects to recognize approximately $3.5 million of these performance obligations as revenue by the end of 2021, an additional $2.3 million in 2022, and the remaining balance thereafter.

Contract Balances

The Partnership’s deferred revenue is a contract liability that primarily relates to nitrogen fertilizer sales contracts requiring customer prepayment prior to product delivery to guarantee a price and supply of nitrogen fertilizer. Deferred revenue is recorded at the point in time in which a prepaid contract is legally enforceable and the associated right to consideration is unconditional prior to transferring product to the customer. An associated receivable is recorded for uncollected prepaid contract amounts. Contracts requiring prepayment are generally short-term in nature and, as discussed above, revenue is recognized at the point in time in which the customer obtains control of the product.

A summary of the deferred revenue activity for the three months ended March 31, 2021 is presented below:
(in thousands)
Balance at December 31, 2020$30,631 
Add:
New prepay contracts entered into during the period (1)20,094 
Less:
Revenue recognized that was included in the contract liability balance at the beginning of the period(7,505)
Revenue recognized related to contracts entered into during the period(2,800)
Other changes(37)
Balance at March 31, 2021$40,383 

(1) Includes $18.6 million where payment associated with prepaid contracts was collected as of March 31, 2021.