Revenue and Customers

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue and Customers

Note 8— Revenue and Customers

Contract Balances

Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on invoiced amounts are typically 30 days. Current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Other current liabilities,” respectively, and noncurrent contract assets and liabilities are included in “Other assets” and “Other liabilities,” respectively, on our Condensed Consolidated Balance Sheets.

The following table provides information about contract assets and contract liabilities from contracts with customers:

	March 31, 2020			December 31, 2019
Current contract assets	$	17,085		$	21,292
Noncurrent contract assets	7,494			9,508
Total contract assets	24,579			30,800
Current contract liabilities (deferred revenue)	(42,535		)	(34,196		)
Noncurrent contract liabilities (deferred revenue)	(26,171		)	(30,859		)
Total contract liabilities	$	(68,706	)	$	(65,055	)

Significant changes in the remaining performance obligation contract assets and the contract liabilities balances for the three months ended March 31, 2020 and 2019 are as follows:

	Contract Assets			Contract Liabilities
Net balance at December 31, 2018	$	47,664		$	(80,753	)
Amortization of deferred costs	(8,775		)	—
Additions to deferred costs	373			—
Amortization of deferred revenue	—			9,355
Additions to deferred revenue	—			(866		)
Total	(8,402		)	8,489
Net balance at March 31, 2019	$	39,262		$	(72,264	)
Net balance at December 31, 2019	$	30,800		$	(65,055	)
Amortization of deferred costs	(8,799		)	—
Additions to deferred costs	2,578			—
Amortization of deferred revenue	—			15,828
Additions to deferred revenue	—			(19,479		)
Total	(6,221		)	(3,651		)
Net balance at March 31, 2020	$	24,579		$	(68,706	)

Transaction Price Allocated to the Remaining Performance Obligations

The following table reflects revenue expected to be recognized in the future related to unsatisfied performance obligations, by rig type, as of March 31, 2020:    

	For the Years Ended December 31,
	2020 (1)		2021		2022		2023		2024 and beyond		Total
Floaters	$	23,912	$	11,210	$	7,853	$	3,546	$	—	$	46,521
Jackups	13,217		7,227		1,741		—		—		22,185
Total	$	37,129	$	18,437	$	9,594	$	3,546	$	—	$	68,706

⁽¹⁾ Represents a nine-month period beginning April 1, 2020.

The revenue included above consists of expected mobilization, demobilization, and upgrade revenue for unsatisfied performance obligations. The amounts are derived from the specific terms within drilling contracts that contain such provisions, and the expected timing for recognition of such revenue is based on the estimated start date and duration of each respective contract based on information known at March 31, 2020. The actual timing of recognition of such amounts may vary due to factors outside of our control. We have taken the optional exemption, permitted by accounting standards, to exclude disclosure of the estimated transaction price related to the variable portion of unsatisfied performance obligations at the end of the reporting period, as our transaction price is based on a single performance obligation consisting of a series of distinct hourly, or more frequent, periods, the variability of which will be resolved at the time of the future services.

Disaggregation of Revenue

The following table provides information about contract drilling revenue by rig types:

	Three Months Ended March 31,
	2020		2019
Floaters	$	125,336	$	153,154
Jackups	142,028		117,347
Total	$	267,364	$	270,501