Revenue

12 Months Ended

Dec. 31, 2020

Revenue [Abstract]

Revenue

2. Revenue

Total revenue under contracts recognized under Topic 606 was approximately $172.2 million for the year ended December 31, 2020, while $53.0 million was specialty rental income subject to the guidance of ASC 840 for the year ended December 31, 2020. Total revenue under contracts recognized under Topic 606 was $261.3 million for the year ended December 31, 2019, while $59.8 million was specialty rental income subject to the guidance of ASC 840 for the year ended December 31, 2019.

The following table disaggregates our revenue by our four reportable segments as well as the All Other category: Permian Basin, Bakken Basin, Government, TCPL Keystone, and All Other for the years indicated below:  

	For the Years Ended December 31,
	2020		2019		2018
Permian Basin
Services income	$	98,888	$	193,852	$	107,997
Construction fee income		-		2,705		-
Total Permian Basin revenues		98,888		196,557		107,997
Bakken Basin
Services income	$	6,605	$	20,621	$	25,813
Total Bakken Basin revenues		6,605		20,621		25,813
Government
Services income	$	23,538	$	25,071	$	25,536
Total Government revenues		23,538		25,071		25,536
TCPL Keystone
Services income	$	2,153	$	-	$	-
Construction fee income		39,758		15,744		23,209
Total TCPL Keystone revenues		41,911		15,744		23,209
All Other
Services income	$	1,247	$	3,273	$	4,310
Construction fee income		-		4		-
Total All Other revenues		1,247		3,277		4,310
Total revenues	$	172,189	$	261,270	$	186,865

As a result of the current market environment discussed in Note 1 “ Recent Developments – COVID-19 and Disruption in Oil and Gas Industry”, the Company considered the increased risk of delayed customer payments and payment defaults associated with customer liquidity issues and bankruptcies. The Company has experienced customers who have filed for bankruptcy, which has been reflected in the bad debt expense recognized in the accompanying consolidated statements of comprehensive income (loss) for the year ended December 31, 2020. The Company routinely monitors the financial stability of our customers, which involves a high degree of judgment in assessing customers’ historical time to pay, financial condition and various customer-specific factors.

To date, there has been deterioration in the collectability of our receivables as mentioned above, and we are likely to experience additional challenges in collections due to uncertainties around the continued impact of the COVID-19 global pandemic and decrease in demand for oil and natural gas as discussed in Note 1.  As a result of our estimate of the impact, bad debt expense, net of recoveries of approximately $4.0 million was recognized during the year ended December 31, 2020  and is included within selling, general and administrative expenses in the accompanying consolidated statement of comprehensive income (loss).

Contract Assets and Liabilities

We do not have any contract assets and we did not recognize any impairments of any contract assets or liabilities.

Contract liabilities primarily consist of deferred revenue that represent payments for room nights that the customer may use in the future as well as an advanced payment for a community build that is being recognized over the related contract period. Activity in the deferred revenue accounts as of the dates indicated below was as follows:

	For the Years Ended December 31,
	2020		2019		2018
Balances at Beginning of Year	$	26,199	$	37,376	$	57,747
Additions to deferred revenue		12,907		8,652		4,092
Revenue recognized		(20,735)		(19,829)		(24,463)
Balances at End of Year	$	18,371	$	26,199	$	37,376

As of December 31, 2020, for contracts greater than one year, the following table discloses the estimated revenues related to performance obligations that are unsatisfied (or partially unsatisfied) and when we expect to recognize the revenue, and only represents revenue expected to be recognized from contracts where the price and quantity of the product or service are fixed (in thousands):

		For the Years Ended December 31,
	2021		2022		2023		2024		2025			2026	Total
Revenue expected to be recognized as of December 31, 2020	$	44,689	$	30,652	$	18,699	$	18,748	$	18,699	$	13,987	$	145,474

The Company applied some of the practical expedients in Topic 606, including the “right to invoice” practical expedient, and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations.  Due to the application of these practical expedients, the table above represents only a portion of the Company’s expected future consolidated revenues and it is not necessarily indicative of the expected trend in total revenues.