Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

2. REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table summarizes revenue from contracts with customers:



	Three Months Ended September 30,					Nine Months Ended September 30,
thousands	2019		2018			2019			2018
Revenue from customers
Service revenues – fee based	$	587,965	$	486,329		$	1,761,483		$	1,311,963
Service revenues – product based	9,476		23,336			45,530			69,421
Product sales	68,248		80,736			215,517			230,290
Total revenue from customers	665,689		590,401			2,022,530			1,611,674
Revenue from other than customers
Net gains (losses) on commodity-price swap agreements	—		(3,737		)	(667		)	(6,351		)
Other	338		1,236			1,101			1,709
Total revenues and other	$	666,027	$	587,900		$	2,022,964		$	1,607,032

Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets were $344.0 million and $214.3 million as of September 30, 2019, and December 31, 2018, respectively.

Contract assets primarily relate to accrued deficiency fees the Partnership expects to charge customers once the related performance periods are completed and revenue accrued but not yet billed under cost of service contracts with fixed and variable fees. The following table summarizes the current period activity related to contract assets from contracts with customers:



thousands
Balance at December 31, 2018	$	47,621
Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period ⁽¹⁾	(4,547		)
Additional estimated revenues recognized ⁽²⁾	6,373
Balance at September 30, 2019	$	49,447

Contract assets at September 30, 2019
Other current assets	$	5,130
Other assets	44,317
Total contract assets from contracts with customers	$	49,447


⁽¹⁾	Includes $(3.0) million for the three months ended September 30, 2019.


⁽²⁾	Includes $(3.6) million for the three months ended September 30, 2019.

2. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED)

Contract liabilities primarily relate to (i) fees that are charged to customers for only a portion of the contract term and must be recognized as revenues over the expected period of customer benefit, (ii) fixed and variable fees under cost of service contracts that are received from customers for which revenue recognition is deferred, and (iii) aid in construction payments received from customers that must be recognized over the expected period of customer benefit. The following table summarizes the current period activity related to contract liabilities from contracts with customers:



thousands
Balance at December 31, 2018	$	145,624
Cash received or receivable, excluding revenues recognized during the period ⁽¹⁾	44,365
Revenues recognized that were included in the contract liability balance at the beginning of the period ⁽²⁾	(11,145		)
Balance at September 30, 2019	$	178,844

Contract liabilities at September 30, 2019
Accrued liabilities	$	6,631
Other liabilities	172,213
Total contract liabilities from contracts with customers	$	178,844


⁽¹⁾	Includes $15.8 million for the three months ended September 30, 2019.


⁽²⁾	Includes $(1.0) million for the three months ended September 30, 2019.

Transaction price allocated to remaining performance obligations. Revenues expected to be recognized from certain performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2019, are reflected in the following table. The Partnership applies the optional exemptions in Topic 606 and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations. Therefore, the following table represents only a portion of expected future revenues from existing contracts as most future revenues from customers are dependent on future variable customer volumes and, in some cases, variable commodity prices for those volumes.



thousands
Remainder of 2019	$	192,599
2020	863,447
2021	911,705
2022	962,522
2023	915,249
Thereafter	4,399,430
Total	$	8,244,952