Revenue

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

15.Revenue

The following table presents the Company’s revenue for the three and six months ended June 30, 2022 and 2021 (in thousands):

	For the three months ended June 30,				For the six months ended June 30,
	2022		2021		2022		2021
Revenue from leases	$	81,895	$	85,322	$	155,957	$	180,467
Revenue from contracts with customers
Time charter, regasification and other services		28,177		24,536		51,707		55,254
Gas sales		512,857		82,940		1,006,938		121,890
Total revenue	$	622,929	$	192,798	$	1,214,602	$	357,611

Lease revenue

The Company’s time charter contracts are accounted for as operating or sales-type leases. The Company's revenue from leases is presented within revenues in the consolidated statements of income and for the three and six months ended June 30, 2022 and 2021 consists of the following (in thousands):

	For the three months ended June 30,				For the six months ended June 30,
	2022		2021		2022		2021
Operating lease income	$	63,027	$	65,968	$	118,301	$	141,866
Sales-type lease income		18,868		19,354		37,656		38,601
Total revenue from leases	$	81,895	$	85,322	$	155,957	$	180,467

Sales-type leases

Sales-type lease income is interest income that is presented within lease revenues on the consolidated statements of income. The Company leased two vessels and a terminal under sales-type leases as it is reasonably certain that the ownership of these assets will transfer to the customer at the end of the term. For the three and six months ended June 30, 2022, the Company recorded lease income from the net investment in the leases within revenue from lease contracts of $18.9 million and $37.7 million, respectively, compared to $19.4 million and $38.6 million for the three and six months ended June 30 2021, respectively.

Operating leases

Revenue from time charter contracts accounted for as operating leases is recognized by the Company on a straight-line basis over the term of the contract. As of June 30, 2022, the Company is the lessor to long-term time charter agreements with customers on six of its vessels. The following represents the amount of property and equipment that is leased to customers as of June 30, 2022 and December 31, 2021 (in thousands):

	June 30, 2022			December 31, 2021
Property and equipment	$	1,804,721		$	1,899,892
Accumulated depreciation		(663,415	)		(766,642	)
Property and equipment, net	$	1,141,306		$	1,133,250

The future minimum revenues presented in the table below should not be construed to reflect total charter hire revenues for any of the years presented. Minimum future revenues included below are based on the fixed components and do not include variable or contingent revenue. Additionally, revenue generated from short-term charters are not included as the duration of the contracts are less than a year. As of June 30, 2022, the minimum contractual future revenues to be received under the time charters during the next five years and thereafter are as follows (in thousands):

Year	Sales-type			Operating
Remainder of 2022	$	44,167		$	128,305
2023		80,449			167,190
2024		84,214			132,753
2025		87,612			121,510
2026		87,612			93,327
Thereafter		579,486			509,322
Total undiscounted	$	963,540		$	1,152,407
Less: imputed interest		(544,197	)
Net investment in sales-type leases		419,343
Less: current portion		(12,200	)
Non-current net investment in sales-type leases	$	407,143

Revenue from contracts with customers

The following table shows disaggregated revenues from customers attributable to the country in which the revenues were derived (in thousands). Revenues from external customers are attributed to the country in which the party to the applicable agreement has its principal place of business.

	For the three months ended June 30, 2022
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Bangladesh	$	18,626	$	9,453	$	—	$	28,079
UAE		16,253		5,380		—		21,633
Pakistan		11,003		2,853		—		13,856
Argentina		13,391		5,870		—		19,261
Brazil		13,051		1,873		512,857		527,781
Israel		9,571		1,459		—		11,030
United States		—		1,259		—		1,259
Other		—		30		—		30
Total revenue	$	81,895	$	28,177	$	512,857	$	622,929

	For the three months ended June 30, 2021
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Bangladesh	$	19,355	$	8,515	$	82,940	$	110,810
UAE		17,990		3,773		—		21,763
Pakistan		11,018		2,424		—		13,442
Argentina		12,833		4,638		—		17,471
Brazil		12,265		1,824		—		14,089
Israel		9,494		1,744		—		11,238
United States		—		982		—		982
Other		2,367		636		—		3,003
Total revenue	$	85,322	$	24,536	$	82,940	$	192,798

	For the six months ended June 30, 2022
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Bangladesh	$	37,414	$	18,728	$	—	$	56,142
UAE		28,991		8,262		—		37,253
Pakistan		21,885		5,337		—		27,222
Argentina		22,766		10,022		—		32,788
Brazil		25,958		3,534		932,839		962,331
Israel		18,943		3,113		—		22,056
United States		—		2,358		74,099		76,457
Other		—		353		—		353
Total revenue	$	155,957	$	51,707	$	1,006,938	$	1,214,602

	For the six months ended June 30, 2021
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Bangladesh	$	38,602	$	17,817	$	82,940	$	139,359
UAE		32,291		7,338		—		39,629
Pakistan		21,900		5,135		—		27,035
Argentina		22,261		8,349		—		30,610
Brazil		24,395		3,389		—		27,784
Israel		18,884		3,220		—		22,104
United States		9,100		5,729		—		14,829
China		—		—		38,950		38,950
Other		13,034		4,277		—		17,311
Total revenue	$	180,467	$	55,254	$	121,890	$	357,611

Assets and liabilities related to contracts with customers

Under most gas sales contracts, invoicing occurs once the Company’s performance obligations have been satisfied, at which point payment is unconditional. Invoicing for TCP, regas and other services, invoicing timing varies and occurs according to the contract. As of June 30, 2022, and December 31, 2021, receivables from contracts with customers associated with revenue from services was $175.2 million and $232.5 million, respectively. These amounts are presented within accounts receivable, net on the consolidated balance sheets. In addition, revenue for services recognized in excess of the invoiced amounts, or accrued revenue, outstanding at June 30, 2022 and December 31, 2021, was $9.2 million and $12.8 million, respectively. Accrued revenue represents current contract asset that will turn into accounts receivable within the next 12 months and be collected during the Company’s normal business operating cycle. Accrued revenue is presented in accounts receivable, net on the consolidated balance sheets. Other items included in accounts receivable, net represent receivables associated with leases which are accounted for in accordance with the leasing standard. There were no impairment losses for trade receivables for lease or time charter services or contract assets for the six months ended June 30, 2022, and 2021.

Contract liabilities from advance payments in excess of revenue recognized from services as of June 30, 2022 and December 31, 2021 were $1.5 million and $1.5 million, respectively. The performance obligations are expected to be satisfied during the next 12 months, and the contract liabilities are classified within current portion of deferred revenue on the consolidated balance sheets. The remaining portion of current deferred revenue relates to the lease component of the Company’s time charter contracts which are accounted for in accordance with the leasing standard. Noncurrent deferred revenue presented in other long-term liabilities on the consolidated balance sheets represents payments allocated to the Company’s performance obligation for drydocking services within time charter contracts in which the lease component is accounted for as a sales-type lease. Revenue will be recognized once the performance obligation is complete and occurs every five years.

The following table reflects the changes in our long-term contract liabilities to customers, as of June 30, 2022 and December 31, 2021 (in thousands):

	June 30, 2022		December 31, 2021
Deferred revenues, beginning of period	$	14,451	$	9,569
Cash received but not yet recognized		2,536		4,882
Deferred revenues, end of period	$	16,987	$	14,451

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 long-term arrangements with customers in which the Company provides regasification and other services as part of time charter party contracts. The price under these agreements is typically stated in contracts. The fixed transaction price allocated to the remaining performance obligations under these arrangements is $413.1 million as of June 30, 2022. The Company expects to recognize revenue from contracts exceeding one year over the following time periods (in thousands):

2022	$	23,953
2023		43,558
2024		44,845
2025		44,071
2026		44,071
Thereafter		212,595
	$	413,093