REVENUE FROM CONTRACTS WITH CUSTOMERS

3 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

NOTE 9 REVENUE FROM CONTRACTS WITH CUSTOMERS

Drilling Services Revenue

During the three months ended December 31, 2020 and 2019, early termination revenue associated with term contracts was approximately $5.8 million and $0.1 million, respectively.

Contract Costs

We had capitalized fulfillment costs of $5.8 million and $6.2 million as of December 31, 2020 and September 30, 2020, respectively.

Remaining Performance Obligations

The total aggregate transaction price allocated to the unsatisfied performance obligations, commonly referred to as backlog, as of December 31, 2020 was approximately $526.6 million, of which approximately $338.0 million is expected to be recognized during the remainder of fiscal year 2021, approximately $130.4 million during fiscal year 2022, and approximately $58.2 million during fiscal year 2023 and thereafter. These amounts do not include anticipated contract renewals or expected performance bonuses. Additionally, contracts that currently contain month-to-month terms are represented in our backlog as one month of unsatisfied performance obligations. Our contracts are subject to cancellation or modification at the election of the customer; however, due to the level of capital deployed by our customers on underlying projects, we have not been materially adversely affected by contract cancellations or modifications in the past. However, the impact of the COVID-19 pandemic is inherently uncertain, and, as a result, the Company is unable to reasonably estimate the duration and ultimate impacts of the pandemic, including the effect it may have on our contractual obligations with our customers.

Contract Assets and Liabilities

The following tables summarize the balances of our contract assets and liabilities at the dates indicated below:

(in thousands)	December 31, 2020		September 30, 2020
Contract assets	$	3,389	$	2,367

(in thousands)	December 31, 2020
Contract liabilities balance at September 30, 2020	$	8,636
Payment received/accrued and deferred	5,726
Revenue recognized during the period	(6,208)
Contract liabilities balance at December 31, 2020	$	8,154