Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2020

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:

	Three Months Ended   March 31,
thousands	2020		2019
Revenue from customers
Service revenues – fee based	$	641,921	$	579,974
Service revenues – product based	15,921		19,379
Product sales	56,649		72,800
Total revenue from customers	714,491		672,153
Revenue from other than customers
Lease revenue (1)	59,475		—
Net gains (losses) on commodity-price swap agreements	—		(667		)
Other	347		397
Total revenues and other	$	774,313	$	671,883

 

⁽¹⁾  For the three months ended March 31, 2020, includes fixed- and variable-lease revenue from an operating and maintenance agreement entered into with Occidental. See Operating lease within Note 6.

Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets were $331.8 million and $362.6 million as of March 31, 2020, and December 31, 2019, 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, 2019	$	67,357
Additional estimated revenues recognized	5,365
Balance at March 31, 2020	$	72,722
Contract assets at March 31, 2020
Other current assets	$	12,975
Other assets	59,747
Total contract assets from contracts with customers	$	72,722

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 current-period activity related to contract liabilities from contracts with customers:

thousands
Balance at December 31, 2019	$	222,274
Cash received or receivable, excluding revenues recognized during the period	11,203
Revenues recognized that were included in the contract liability balance at the beginning of the period	(8,893		)
Balance at March 31, 2020	$	224,584
Contract liabilities at March 31, 2020
Accrued liabilities	$	9,120
Other liabilities	215,464
Total contract liabilities from contracts with customers	$	224,584

Transaction price allocated to remaining performance obligations. Revenues expected to be recognized from certain performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2020, 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
Remainder of 2020	$	572,077
2021	779,098
2022	1,035,119
2023	978,409
2024	948,700
Thereafter	3,547,074
Total	$	7,860,477