Revenue from Contract with Customers

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

12. Revenue from Contracts with Customers

The following table presents our revenue from contracts with customers disaggregated by revenue source (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Contract operations (1):
0 - 1,000 horsepower per unit	$	51,409	$	66,026	$	175,877	$	193,448
1,001 - 1,500 horsepower per unit		73,205		81,755		236,083		231,693
Over 1,500 horsepower per unit		50,142		49,572		156,351		138,966
Other (2)		467		984		1,835		2,995
Total contract operations (3)		175,223		198,337		570,146		567,102
Aftermarket services (1):
Services (4)		17,961		28,888		62,492		95,689
OTC parts and components sales		12,447		17,724		43,006		56,707
Total aftermarket services (5)		30,408		46,612		105,498		152,396
Total revenue	$	205,631	$	244,949	$	675,644	$	719,498

(1) We operate in two segments: contract operations and aftermarket services. See Note 22 (“Segments”) for further details regarding our segments.

(2) Primarily relates to fees associated with owned non-compression equipment.

(3) Includes $1.4 million and $1.6 million for the three months ended September 30, 2020 and 2019, respectively, and $4.5 million and $6.0 million for the nine months ended September 30, 2020 and 2019, respectively, related to billable maintenance on owned compressors that was recognized at a point in time. All other contract operations revenue is recognized over time.

(4) Included a reversal of $0.7 million of revenue during the three and nine months ended September 30, 2019 related to changes in estimates of performance obligations partially satisfied in prior periods.

(5) All service revenue within aftermarket services is recognized over time. All OTC parts and components sales revenue is recognized at a point in time.

Performance Obligations

As of September 30, 2020, we had $387.6 million of remaining performance obligations related to our contract operations segment. We do not consider the effects of the time value of money, as the expected time between the transfer of services and payment for such services is less than one year. Our remaining performance obligations will be recognized through 2025 as follows (in thousands):

	2020		2021		2022		2023		2024		2025		Total
Remaining performance obligations	$	105,933	$	195,902	$	74,732	$	9,694	$	1,196	$	116	$	387,573

We do not disclose the aggregate transaction price for the remaining performance obligations for aftermarket services as there are no contracts with customers with an original contract term that is greater than one year.

Contract Assets and Liabilities

As of September 30, 2020 and December 31, 2019, our receivables from contracts with customers, net of allowance for credit losses, were $102.8 million and $139.4 million, respectively.

Freight billings to customers for the transport of compression assets, customer-specified modifications of compression assets and milestone billings on aftermarket services often result in a contract liability. As of September 30, 2020 and December 31, 2019, our contract liabilities were $4.9 million and $11.4 million, respectively, which were included in deferred revenue and other liabilities in our condensed consolidated balance sheets. The decrease in the contract liability balance during the nine months ended September 30, 2020 was primarily due to $17.2 million recognized as revenue during the period, partially offset by revenue deferral of $10.7 million, each primarily related to freight billings and milestone billings on aftermarket services.