Revenue

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

15.Revenue

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

	For the three months ended September 30,				For the nine months ended September 30,
	2022		2021		2022		2021
Revenue from leases	$	84,857	$	86,446	$	240,814	$	266,913
Revenue from contracts with customers
Time charter, regasification and other services		30,489		30,132		82,196		85,386
Gas sales		687,915		75,563		1,694,853		197,453
Total revenue	$	803,261	$	192,141	$	2,017,863	$	549,752

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 nine months ended September 30, 2022 and 2021 consists of the following (in thousands):

	For the three months ended September 30,				For the nine months ended September 30,
	2022		2021		2022		2021
Operating lease income	$	65,919	$	66,994	$	184,220	$	208,860
Sales-type lease income		18,938		19,452		56,594		58,053
Total revenue from leases	$	84,857	$	86,446	$	240,814	$	266,913

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 nine months ended September 30, 2022, the Company recorded lease income from the net investment in the leases within revenue from lease contracts of $18.9 million and $56.6 million, respectively, compared to $19.5 million and $58.1 million for the three and nine months ended September 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 September 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 September 30, 2022 and December 31, 2021 (in thousands):

	September 30, 2022			December 31, 2021
Property and equipment	$	1,854,028		$	1,899,892
Accumulated depreciation		(688,693	)		(766,642	)
Property and equipment, net	$	1,165,335		$	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 September 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	$	22,084		$	44,749
2023		80,449			167,190
2024		84,214			132,753
2025		87,612			121,510
2026		87,612			93,327
Thereafter		579,486			475,428
Total undiscounted	$	941,457		$	1,034,957
Less: imputed interest		(525,260	)
Net investment in sales-type leases		416,197
Less: current portion		(12,759	)
Non-current net investment in sales-type leases	$	403,438

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 September 30, 2022
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Bangladesh	$	18,935	$	10,593	$	—	$	29,528
UAE		16,763		5,144		—		21,907
Pakistan		11,123		2,877		—		14,000
Argentina		15,234		7,062		—		22,296
Brazil		13,194		1,991		687,915		703,100
Israel		9,608		1,647		—		11,255
United States		—		1,146		—		1,146
Other		—		29		—		29
Total revenue	$	84,857	$	30,489	$	687,915	$	803,261

	For the three months ended September 30, 2021
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Bangladesh	$	19,850	$	9,520	$	75,563	$	104,933
UAE		16,392		5,252		—		21,644
Pakistan		11,108		2,618		—		13,726
Argentina		15,358		5,181		—		20,539
Brazil		12,400		1,703		—		14,103
Israel		9,598		1,637		—		11,235
United States		—		1,210		—		1,210
Other		1,740		3,011		—		4,751
Total revenue	$	86,446	$	30,132	$	75,563	$	192,141

	For the nine months ended September 30, 2022
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Bangladesh	$	56,349	$	29,321	$	—	$	85,670
UAE		45,754		13,406		—		59,160
Pakistan		33,008		8,214		—		41,222
Argentina		38,000		17,084		—		55,084
Brazil		39,152		5,525		1,620,754		1,665,431
Israel		28,551		4,760		—		33,311
United States		—		3,504		74,099		77,603
Other		—		382		—		382
Total revenue	$	240,814	$	82,196	$	1,694,853	$	2,017,863

	For the nine months ended September 30, 2021
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Bangladesh	$	58,452	$	27,337	$	158,503	$	244,292
UAE		48,683		12,590		—		61,273
Pakistan		33,008		7,753		—		40,761
Argentina		37,619		13,530		—		51,149
Brazil		36,795		5,092		—		41,887
Israel		28,482		4,857		—		33,339
United States		9,100		6,939		—		16,039
China		—		—		38,950		38,950
Other		14,774		7,288		—		22,062
Total revenue	$	266,913	$	85,386	$	197,453	$	549,752

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 timing for TCP, regas and other services varies and occurs according to the contract. As of September 30, 2022, and December 31, 2021, receivables from contracts with customers associated with revenue from services was $308.2 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 September 30, 2022 and December 31, 2021, was $9.5 million and $12.8 million, respectively. Accrued revenue represents current contract assets 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 nine months ended September 30, 2022 and 2021.

Contract liabilities from advance payments in excess of revenue recognized from services as of September 30, 2022 and December 31, 2021 were $1.6 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 September 30, 2022 and December 31, 2021 (in thousands):

	September 30, 2022		December 31, 2021
Deferred revenues, beginning of period	$	14,451	$	9,569
Cash received but not yet recognized		3,819		4,882
Deferred revenues, end of period	$	18,270	$	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 the contracts. The fixed transaction price allocated to the remaining performance obligations under these arrangements is $401.1 million as of September 30, 2022. The Company expects to recognize revenue from contracts exceeding one year over the following time periods (in thousands):

2022	$	11,977
2023		43,558
2024		44,845
2025		44,071
2026		44,071
Thereafter		212,595
	$	401,117