Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

2. REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table summarizes revenue from contracts with customers:

	Year Ended December 31,
thousands	2019			2018
Revenue from customers
Service revenues – fee based	$	2,388,191		$	1,905,728
Service revenues – product based	70,127			88,785
Product sales	287,055			310,895
Total revenue from customers	2,745,373			2,305,408
Revenue from other than customers
Net gains (losses) on commodity-price swap agreements	(667		)	(7,875		)
Other	1,468			2,125
Total revenues and other	$	2,746,174		$	2,299,658

 

2. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED)

Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets were $362.6 million and $214.3 million as of December 31, 2019 and 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 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	(4,841		)
Additional estimated revenues recognized	14,698
Cumulative catch-up adjustment for change in estimated consideration due to an annual cost-of-service rate update	9,879
Balance at December 31, 2019	$	67,357
Contract assets at December 31, 2019
Other current assets	$	7,129
Other assets	60,228
Total contract assets from contracts with customers	$	67,357

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 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	75,166
Revenues recognized that were included in the contract liability balance at the beginning of the period	(12,110		)
Cumulative catch-up adjustment for change in estimated consideration due to an annual cost-of-service rate update	13,594
Balance at December 31, 2019	$	222,274
Contract liabilities at December 31, 2019
Accrued liabilities	$	19,659
Other liabilities	202,615
Total contract liabilities from contracts with customers	$	222,274

2. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED)

Transaction price allocated to remaining performance obligations. Revenues expected to be recognized from certain performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2019, are presented 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
2020	$	736,055
2021	776,068
2022	1,030,527
2023	973,799
2024	943,514
Thereafter	3,534,725
Total	$	7,994,688