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Recent Accounting Developments (Tables)
 9 Months Ended
Sep. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The following table summarizes the cumulative impact of the adoption of the Revenue Recognition Update on the opening balance sheet (in thousands):
 
December 31, 2017
 
Adjustments Due to the Revenue Recognition Update
 
January 1, 2018
Assets
 
 
 
 
 
Accounts receivable, trade
$
113,416

 
$
7,883

 
$
121,299

Inventory
90,691

 
(6,917
)
 
83,774

Contract costs
—

 
21,524

 
21,524

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Accrued liabilities
$
71,116

 
$
209

 
$
71,325

Deferred revenue
4,858

 
3,188

 
8,046

Deferred income taxes
97,943

 
4,427

 
102,370

 
 
 
 
 
 
Equity
 
 
 
 
 
Accumulated deficit
$
(2,241,243
)
 
$
14,666

 
$
(2,226,577
)

The following tables summarize the impact of the application of the Revenue Recognition Update on our condensed consolidated balance sheet and condensed consolidated statements of operations (in thousands):

 
September 30, 2018
 
 
Balance Sheet
As Reported
 
Balance Excluding the Impact of the Revenue Recognition Update
 
Effect of Change
Assets
 
 
 
 
 
Accounts receivable, trade
$
141,781

 
$
123,079

 
$
18,702

Inventory
77,497

 
94,528

 
(17,031
)
Contract costs
36,482

 
—

 
36,482

 
 
 
 
 
 
Liabilities
 
 
 
 
 
Accounts payable, trade
$
70,950

 
$
70,875

 
$
75

Accrued liabilities
74,879

 
74,619

 
260

Deferred revenue
12,909

 
8,865

 
4,044

Deferred income taxes
2,845

 
2,570

 
275

Other long-term liabilities
19,612

 
19,595

 
17

 
 
 
 
 
 
Equity
 
 
 
 
 
Additional paid-in capital (1)
$
3,154,058

 
$
3,144,217

 
$
9,841

Accumulated deficit
(2,259,489
)
 
(2,283,130
)
 
23,641

——————
(1) 
Represents the impact of the Revenue Recognition Update on net income attributable to noncontrolling interest which was reclassed to additional paid-in capital pursuant to the Merger.

 
Three Months Ended September 30, 2018
 
 
Statement of Operations
As Reported
 
Balance Excluding the Impact of the Revenue Recognition Update
 
Effect of Change
Revenue:
 
 
 
 
 
Contract operations
$
169,509

 
$
170,981

 
$
(1,472
)
Aftermarket services
62,863

 
59,623

 
3,240

Total revenue
232,372

 
230,604

 
1,768

Cost of sales (excluding depreciation and amortization):
 
 
 
 
 
Contract operations
69,056

 
73,673

 
(4,617
)
Aftermarket services
50,043

 
47,973

 
2,070

Total cost of sales (excluding depreciation and amortization)
119,099

 
121,646

 
(2,547
)
Selling, general and administrative
26,298

 
26,924

 
(626
)
Provision for income taxes
3,126

 
2,617

 
509

Net income attributable to Archrock stockholders
9,974

 
5,542

 
4,432



 
Nine Months Ended September 30, 2018
 
 
Statement of Operations
As Reported
 
Balance Excluding the Impact of the Revenue Recognition Update
 
Effect of Change
Revenue:
 
 
 
 
 
Contract operations
$
496,156

 
$
500,306

 
$
(4,150
)
Aftermarket services
175,126

 
161,065

 
14,061

Total revenue
671,282

 
661,371

 
9,911

Cost of sales (excluding depreciation and amortization):
 
 
 
 
 
Contract operations
201,460

 
214,823

 
(13,363
)
Aftermarket services
143,173

 
132,984

 
10,189

Total cost of sales (excluding depreciation and amortization)
344,633

 
347,807

 
(3,174
)
Selling, general and administrative
80,455

 
82,051

 
(1,596
)
Provision for income taxes
1,913

 
(1,837
)
 
3,750

Less: Net income attributable to the noncontrolling interest
(8,097
)
 
(6,141
)
 
(1,956
)
Net income (loss) attributable to Archrock stockholders
8,095

 
(880
)
 
8,975