Revenue from Contracts with Customers (Notes)

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE FROM CONTRACTS WITH CUSTOMERS

As of June 30, 2020, we had $50.0 million of remaining contractual performance obligations for compression services. As a practical expedient, this amount does not reflect revenue for compression service contracts whose original expected duration is less than twelve months and does not consider the effects of the time value of money. Expected revenue to be recognized in the future as of June 30, 2020 for completion of performance obligations of compression service contracts are as follows:

	2020		2021		2022		2023		2024		Total
	(In Thousands)
Compression service contracts remaining performance obligations	$	35,385	$	12,735	$	1,807	$	62	$	46	$	50,035

For sales of CBFs where we have agreed to issue credits for the repurchase of reclaimable used fluids at an agreed price based on the condition of the fluid upon return, we adjust the revenue recognized in the period of shipment by an estimated amount, based on historical experience, of the credit expected to be issued. As of June 30, 2020, the amount of remaining credits expected to be issued for the repurchase of reclaimable used fluids was $1.5 million recorded in inventory (right of return asset) and either accounts payable or as a reduction to accounts receivable. There were no material differences between amounts recognized during the three and six month period ended June 30, 2020, compared to estimates made in a prior period from these variable consideration arrangements.

Our contract asset balances, primarily associated with customer documentation requirements, were $19.4 million and $34.9 million as of June 30, 2020 and December 31, 2019, respectively. Contract assets, along with billed trade accounts receivable, are included in trade accounts receivable in our consolidated balance sheets.

Collections primarily associated with progressive billings to customers for the construction of compression equipment is included in unearned income in the consolidated balance sheets. The following table reflects the changes in unearned income in our consolidated balance sheets for the periods indicated:

	Six Months Ended June 30,
	2020			2019
	(In Thousands)
Unearned Income, beginning of period	$	9,678		$	25,333
Additional unearned income	32,834			84,456
Revenue recognized	(29,881		)	(78,119		)
Unearned income, end of period	$	12,631		$	31,670

During the six month period ended June 30, 2020, we recognized product sales revenue of $5.9 million from unearned income that was deferred as of December 31, 2019. During the six months ended June 30, 2019, we recognized product sales revenue of $19.1 million from unearned income that was deferred as of December 31, 2018.

As of June 30, 2020, contract costs were immaterial.

We disaggregate revenue from contracts with customers into Product Sales and Services within each segment, as noted in our three reportable segments in Note 11. In addition, we disaggregate revenue from contracts with customers by geography based on the following table below.

	Three months ended June 30,		Six months ended June 30,
	2020	2019	2020		2019
	(In Thousands)
Completion Fluids & Products
U.S.	32,102	37,536	$	70,060	$	69,142
International	39,244	42,231	76,523		72,206
	71,346	79,767	146,583		141,348
Water & Flowback Services
U.S.	22,866	68,412	77,250		141,611
International	1,857	4,712	4,940		10,191
	24,723	73,124	82,190		151,802
Compression
U.S.	88,583	126,122	169,183		219,638
International	7,789	9,783	17,427		19,736
	96,372	135,905	186,610		239,374
Total Revenue
U.S.	143,551	232,070	316,493		430,391
International	48,890	56,726	98,890		102,133
	192,441	288,796	$	415,383	$	532,524