Revenue

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

15.Revenue

The following table presents the Company’s revenue for the three months ended March 31, 2023 and 2022 (in thousands):

	For the three months ended March 31,
	2023		2022
Revenue from leases	$	81,548	$	74,062
Revenue from contracts with customers
Time charter, regasification and other services		37,029		23,530
Gas sales		92,479		494,081
Total revenue	$	211,056	$	591,673

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 months ended March 31, 2023 and 2022 consists of the following (in thousands):

	For the three months ended March 31,
	2023		2022
Operating lease income	$	63,310	$	55,274
Sales-type lease income		18,238		18,788
Total revenue from leases	$	81,548	$	74,062

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 months ended March 31, 2023, the Company recorded lease income from the net investment in the leases within revenue from lease contracts of $18.2 million, compared to $18.8 million for the three months ended March 31, 2022.

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 March 31, 2023, the Company is the lessor to time charter agreements with customers on seven of its vessels. The following represents the amount of property and equipment that is leased to customers as of March 31, 2023 and December 31, 2022 (in thousands):

	March 31, 2023			December 31, 2022
Property and equipment	$	2,178,642		$	2,034,183
Accumulated depreciation		(878,697	)		(823,942	)
Property and equipment, net	$	1,299,945		$	1,210,241

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 March 31, 2023, 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 2023	$	58,528		$	221,518
2024		84,295			274,175
2025		87,612			215,610
2026		87,612			212,374
2027		87,612			221,485
Thereafter		492,036			693,487
Total undiscounted	$	897,695		$	1,838,649
Less: imputed interest		(488,153	)
Net investment in sales-type leases		409,542
Less: current portion		(13,544	)
Non-current net investment in sales-type leases	$	395,998

Revenue from contracts with customers

The following tables show 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 March 31, 2023
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Brazil	$	12,907	$	1,955	$	70,253	$	85,115
Bangladesh		17,990		10,667		—		28,657
UAE		16,841		5,570		—		22,411
United States		—		4,868		—		4,868
Argentina		9,375		5,818		—		15,193
Pakistan		10,882		2,814		—		13,696
Germany		4,103		2,650		—		6,753
Finland		9,450		2,631		22,226		34,307
Other		—		56		—		56
Total revenue	$	81,548	$	37,029	$	92,479	$	211,056

	For the three months ended March 31, 2022
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Brazil	$	12,907	$	1,661	$	419,982	$	434,550
Bangladesh		18,788		9,275		—		28,063
UAE		12,738		2,882		—		15,620
United States		—		1,099		74,099		75,198
Argentina		9,375		4,152		—		13,527
Pakistan		10,882		2,484		—		13,366
Israel		9,372		1,654		—		11,026
Other		—		323		—		323
Total revenue	$	74,062	$	23,530	$	494,081	$	591,673

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 time charter party (“TCP”), regas and other services varies and occurs according to the contract. As of March 31, 2023, and December 31, 2022, receivables from contracts with customers associated with revenue from services was $24.0 million and $14.9 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 March 31, 2023 and December 31, 2022, was $4.8 million and $5.3 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 write downs of trade receivables for lease or time charter services or contract assets for the three months ended March 31, 2023 and 2022.

Contract liabilities from advance payments in excess of revenue recognized from services as of March 31, 2023 and December 31, 2022 were $1.1 million and $134.3 million, respectively. If 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. Amounts to be recognized in revenue after 12 months are recorded in long-term deferred revenue. 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 contract liabilities related to long-term contracts with customers as of March 31, 2023 and December 31, 2022 (in thousands):

	March 31, 2023
Deferred revenues, beginning of period	$	177,754
Cash received but not yet recognized		191,765
Revenue recognized from prior period deferral		(173,450	)
Deferred revenues, end of period	$	196,069

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 $895.3 million as of March 31, 2023. The Company expects to recognize revenue from contracts exceeding one year over the following time periods (in thousands):

Remainder of 2023	$	90,139
2024		108,384
2025		88,091
2026		87,089
2027		89,397
Thereafter		432,153
	$	895,253