Revenue

6 Months Ended

Jun. 30, 2023

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, 2023 and 2022 (in thousands):

	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Revenue from leases	$	86,307	$	81,895	$	167,855	$	155,957
Revenue from contracts with customers
Time charter, regasification and other services		39,155		28,177		76,184		51,707
Gas sales		306,910		512,857		399,389		1,006,938
Total revenue	$	432,372	$	622,929	$	643,428	$	1,214,602

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, 2023 and 2022 consists of the following (in thousands):

	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Operating lease income	$	68,025	$	63,027	$	131,335	$	118,301
Sales-type lease income		18,282		18,868		36,520		37,656
Total revenue from leases	$	86,307	$	81,895	$	167,855	$	155,957

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, 2023, the Company recorded lease income from the net investment in the leases within revenue from lease contracts of $18.3 million and $36.5 million, respectively, compared to $18.9 million and $37.7 million for the three and six months ended June 30, 2022, 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, 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 June 30, 2023 and December 31, 2022 (in thousands):

	June 30, 2023			December 31, 2022
Property and equipment	$	2,182,087		$	2,034,183
Accumulated depreciation		(900,106	)		(823,942	)
Property and equipment, net	$	1,281,981		$	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 June 30, 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	$	36,049		$	136,851
2024		84,295			269,944
2025		87,612			210,545
2026		87,612			213,730
2027		87,612			224,227
Thereafter		492,354			702,050
Total undiscounted	$	875,534		$	1,757,347
Less: imputed interest		(469,547	)
Net investment in sales-type leases		405,987
Less: current portion		(13,980	)
Non-current net investment in sales-type leases	$	392,007

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 June 30, 2023
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Brazil	$	13,051	$	2,076	$	225,977	$	241,104
Bangladesh		18,003		10,422		80,933		109,358
UAE		17,700		5,882		—		23,582
United States		—		1,212		—		1,212
Argentina		16,748		13,772		—		30,520
Pakistan		11,002		2,993		—		13,995
Germany		248		—		—		248
Finland		9,555		2,769		—		12,324
Other		—		29		—		29
Total revenue	$	86,307	$	39,155	$	306,910	$	432,372

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

	For the six months ended June 30, 2023
			Revenue from contracts with customers
	Revenue from		TCP, Regas		Gas		Total
	leases		and other		sales		revenue
Brazil	$	25,958	$	4,031	$	296,230	$	326,219
Bangladesh		35,993		21,089		80,933		138,015
UAE		34,541		11,452		—		45,993
United States		—		6,080		—		6,080
Argentina		26,123		19,590		—		45,713
Pakistan		21,884		5,807		—		27,691
Germany		4,351		2,650		—		7,001
Finland		19,005		5,400		22,226		46,631
Other		—		85		—		85
Total revenue	$	167,855	$	76,184	$	399,389	$	643,428

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

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 June 30, 2023, and December 31, 2022, receivables from contracts with customers associated with revenue from services was $118.0 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 June 30, 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 six months ended June 30, 2023 and 2022.

Contract liabilities from advance payments in excess of revenue recognized from services as of June 30, 2023 and December 31, 2022 were $1.4 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 June 30, 2023 (in thousands):

	For the six months ended June 30, 2023
Deferred revenues, beginning of period	$	177,754
Cash received but not yet recognized		24,789
Revenue recognized from prior period deferral		(145,564	)
Deferred revenues, end of period	$	56,979

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 $868.7 million as of June 30, 2023. The Company expects to recognize revenue from contracts exceeding one year over the following time periods (in thousands):

Remainder of 2023	$	61,673
2024		107,200
2025		88,557
2026		87,652
2027		90,030
Thereafter		433,627
	$	868,739