Revenue from Contracts with Customers (Notes)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE FROM CONTRACTS WITH CUSTOMERS

    As of September 30, 2020, we had $47.1 million of remaining contractual performance obligations for compression services. As a practical expedient, this amount does not reflect revenue for compression service contracts whose original expected duration is less than twelve months and does not consider the effects of the time value of money. Expected revenue to be recognized in the future as of September 30, 2020 for completion of performance obligations of compression service contracts are as follows:

	2020		2021		2022		2023		2024		Total
	(In Thousands)
Compression service contracts remaining performance obligations	$	13,939	$	26,608	$	5,785	$	703	$	56	$	47,091

    For sales of CBFs where we have agreed to issue credits for the repurchase of reclaimable used fluids at an agreed price based on the condition of the fluid upon return, we adjust the revenue recognized in the period of shipment by an estimated amount, based on historical experience, of the credit expected to be issued. As of September 30, 2020, the amount of remaining credits expected to be issued for the repurchase of reclaimable used fluids was $1.1 million recorded in inventory (right of return asset) and either accounts payable or as a reduction to accounts receivable. There were no material differences between amounts recognized during the three and nine month period ended September 30, 2020, compared to estimates made in a prior period from these variable consideration arrangements.

    Our contract asset balances, primarily associated with customer documentation requirements, were $17.2 million and $34.9 million as of September 30, 2020 and December 31, 2019, respectively. Contract assets, along with billed trade accounts receivable, are included in trade accounts receivable in our consolidated balance sheets.

    Collections primarily associated with progressive billings to customers for the construction of compression equipment is included in unearned income in the consolidated balance sheets. The following table reflects the changes in unearned income in our consolidated balance sheets for the periods indicated:

	Nine Months Ended September 30,
	2020		2019
	(In Thousands)
Unearned Income, beginning of period	$	9,678	$	25,333
Additional unearned income	38,979		106,744
Revenue recognized	(41,624)		(105,486)
Unearned income, end of period	$	7,033	$	26,591

    During the nine month period ended September 30, 2020, we recognized product sales revenue of $9.4 million from unearned income that was deferred as of December 31, 2019. During the nine months ended September 30, 2019, we recognized product sales revenue of $22.2 million from unearned income that was deferred as of December 31, 2018.

    As of September 30, 2020, contract costs were immaterial.

    We disaggregate revenue from contracts with customers into Product Sales and Services within each segment, as noted in our three reportable segments in Note 12. In addition, we disaggregate revenue from contracts with customers by geography based on the following table below.

	Three months ended September 30,		Nine months ended September 30,
	2020	2019	2020		2019
	(In Thousands)
Completion Fluids & Products
U.S.	15,013	31,480	$	85,073	$	100,622
International	36,937	27,860	113,460		100,066
	51,950	59,340	198,533		200,688
Water & Flowback Services
U.S.	19,767	68,052	97,016		209,663
International	1,767	4,789	6,708		14,980
	21,534	72,841	103,724		224,643
Compression
U.S.	71,478	105,153	240,661		324,792
International	7,639	8,613	25,066		28,348
	79,117	113,766	265,727		353,140
Total Revenue
U.S.	106,258	204,685	422,750		635,077
International	46,343	41,262	145,234		143,394
	152,601	245,947	$	567,984	$	778,471