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REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended
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Mar. 31, 2020
Revenue from Contract with Customer [Abstract] |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 11 REVENUE FROM CONTRACTS WITH CUSTOMERS Contract Drilling Services Revenue Due to the continued decline in the price of oil, our customers have reduced their drilling activity and we have received rig release notifications for rigs under term and well-to-well contracts. The releases for rigs under term contracts result in early termination compensation owed to us, while releases for rigs under well-to-well contracts given outside the notification window per the contract result in notification fees owed to us. During the three months ended March 31, 2020 and 2019, early termination revenue associated with term contracts was approximately $8.2 million and $1.2 million, respectively, and $8.3 million for both the six months ended March 31, 2020 and 2019. During the three months ended March 31, 2020 and 2019, notification fee revenue related to well-to-well contracts was approximately $2.2 million and $0.3 million, respectively, and $2.1 million and $0.3 million for the six months ended March 31, 2020 and 2019, respectively. Subsequent to March 31, 2020, we have received additional rig release notifications, which will result in additional early termination and notification fee revenue. Refer to Note 18—Subsequent Events. As a result of the depressed market conditions and negative outlook for the near term, certain of our customers have opted to renegotiate existing drilling contracts. During the three months ended March 31, 2020, we agreed to certain price concessions on some of our existing drilling contracts; however, the total impact on current and future periods is not significant. Contract Costs We had capitalized fulfillment costs of $9.9 million and $13.9 million as of March 31, 2020 and September 30, 2019, respectively. Remaining Performance Obligations The total aggregate transaction price allocated to the unsatisfied performance obligations, commonly referred to as backlog, as of March 31, 2020 was approximately $837.6 million, of which approximately $413.1 million is expected to be recognized during the remainder of fiscal year 2020, approximately $312.1 million during fiscal year 2021, and approximately $112.4 million in fiscal year 2022 and thereafter. These amounts do not include anticipated contract renewals. Additionally, contracts that currently contain month-to-month terms are represented in our backlog as one month of unsatisfied performance obligations. Our contracts are subject to cancellation or modification at the election of the customer; however, due to the level of capital deployed by our customers on underlying projects, we have not been materially adversely affected by contract cancellations or modifications in the past. We do not have material long-term contracts related to our H&P Technologies segment. Contract Assets and Liabilities The following tables summarize the balances of our contract assets and liabilities:
(in thousands) | March 31, 2020 |  | September 30, 2019
Contract assets | $ | 2,270 |  |  | $ | 2,151 |
(in thousands) | March 31, 2020
Contract liabilities balance at September 30, 2019 | $ | 23,354 |
Payment received/accrued and deferred | 13,594 |
Revenue recognized during the period | (24,050 | )
Contract liabilities balance at March 31, 2020 | $ | 12,898 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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