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Revenue from contracts with customers
12 Months Ended
Dec. 31, 2020
Revenue from contracts with customers [Abstract]  
Revenue from contracts with customers
4.
Revenue from contracts with customers

Under most customer contracts, invoicing occurs once the Company’s performance obligations have been satisfied, at which point payment is unconditional. As of December 31, 2020 and 2019, receivables related to revenue from contracts with customers totaled $76,431 and $40,731, respectively, and were included in Receivables, net on the consolidated balance sheets, net of current expected credit losses of $98 and $0, respectively. Other items included in Receivables, net not related to revenue from contracts with customers represent receivables associated with reimbursable costs and leases which are accounted for outside the scope of ASC 606.

The Company has recognized contract liabilities, comprised of unconditional payments due or paid under the contracts with customers prior to the Company’s satisfaction of the related performance obligations. The performance obligations are expected to be satisfied during the next 12 months, and the contract liabilities are classified within Other current liabilities on the consolidated balance sheets. Contract assets are comprised of the transaction price allocated to completed performance obligations that will be billed to customers in subsequent periods. The contract liabilities and contract assets balances as of December 31, 2020 and 2019 are detailed below:

 
December 31, 2020
   
December 31, 2019
 
Contract assets, net - current
 
$
3,673
   
$
3,787
 
Contract assets, net - non-current
   
23,972
     
19,474
 
Total contract assets, net
 
$
27,645
   
$
23,261
 
                 
Contract liabilities
 
$
8,399
   
$
6,542
 
                 
Revenue recognized in the year from:
               
Amounts included in contract liabilities at the beginning of the year
 
$
6,542
   
$
-
 

Contract assets are presented net of expected credit losses of $372 and $0 as of December 31, 2020 and 2019, respectively. As of December 31, 2020, the Company has unbilled receivables, net of current expected credit losses, of $6,818, of which $356 is presented within Other current assets and $6,462 is presented within Other non-current assets on the consolidated balance sheets. These unbilled receivables represent unconditional right to payment subject only to the passage of time.

Operating revenue which includes revenue from sales of LNG and natural gas as well as outputs from the Company’s natural gas-fueled power generation facilities, including power and steam, was $318,311, $145,500 and $96,906 for the years ended December 31, 2020, 2019 and 2018 respectively. During March 2020, the Company began to deliver power and steam recognizing $23,062 in operating revenue for the year ended December 31, 2020.

Other revenue includes revenue for development services as well as lease and other revenue. The table below summarizes the balances in Other revenue:

 
 
Year Ended December 31,
 
 
 
2020
   
2019
   
2018
 
Development services revenue
 
$
129,753
   
$
27,308
   
$
-
 
Lease and other revenue
   
3,586
     
16,317
     
15,395
 
Total other revenue
 
$
133,339
   
$
43,625
   
$
15,395
 

Development services revenue recognized in the year ended December 31, 2020 included $118,757 for the customer’s use of natural gas as part of commissioning their assets.

Transaction price allocated to remaining performance obligations

Some of the Company’s contracts are short-term in nature with a contract term of less than a year. The Company applied the optional exemption not to report any unfulfilled performance obligations related to these contracts.

The Company has arrangements in which LNG, natural gas or outputs from the Company’s power generation facilities are sold on a “take-or-pay” basis whereby the customer is obligated to pay for the minimum guaranteed volumes even if it does not take delivery. The price under these agreements is typically based on a market index plus a fixed margin. The fixed transaction price allocated to the remaining performance obligations under these arrangements is $4,357,054 as of December 31, 2020, representing the fixed margin multiplied by the outstanding minimum guaranteed volumes. The Company expects to recognize this revenue over the following time periods. The pattern of recognition reflects the minimum guaranteed volumes in each period:

Period
 
Revenue
 
2021
 
$
258,738
 
2022
   
250,226
 
2023
   
250,317
 
2024
   
249,804
 
2025
   
246,709
 
Thereafter
   
3,101,260
 
Total
 
$
4,357,054
 

For all other sales contracts that have a term exceeding one year, the Company has elected the practical expedient in ASC 606 under which the Company does not disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. For these excluded contracts, the sources of variability are (a) the market index prices of natural gas used to price the contracts, and (b) the variation in volumes that may be delivered to the customer. Both sources of variability are expected to be resolved at or shortly before delivery of each unit of LNG, natural gas, power or steam. As each unit of LNG, natural gas, power or steam represents a separate performance obligation, future volumes are wholly unsatisfied.

The Company has recognized costs to fulfill a contract with a significant customer, which primarily consist of expenses required to enhance resources to deliver under the agreement with the customer. As of December 31, 2020, the Company has capitalized $11,276, of which $588 of these costs is presented within Other current assets and $10,688 is presented within Other non-current assets on the consolidated balance sheets. As of December 31, 2019, the Company had capitalized $8,839, of which $331 of these costs was presented within Other current assets and $8,508 was presented within Other non-current assets on the consolidated balance sheets. In the first quarter of 2020, the Company began delivery under the agreement and started recognizing these costs on a straight-line basis over the expected term of the agreement.