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REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
Jun. 30, 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 sharp decline in the price of oil during the second quarter of fiscal year 2020, 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 June 30, 2020 and 2019, early termination revenue associated with term contracts was approximately $49.5 million and $0.8 million, respectively, and $57.8 million and $9.1 million, respectively, for the nine months ended June 30, 2020 and 2019. During the three months ended June 30, 2020 and 2019, notification fee revenue related to well-to-well contracts was approximately $0.9 million and $0.8 million, respectively, and $3.0 million and $1.0 million for the nine months ended June 30, 2020 and 2019, respectively.
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 second quarter of fiscal year 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 material.
Contract Costs
We had capitalized fulfillment costs of $6.3 million and $13.9 million as of June 30, 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 June 30, 2020 was approximately $650.7 million, of which approximately $173.3 million is expected to be recognized during the remainder of fiscal year 2020, approximately $331.8 million during fiscal year 2021, and approximately $145.6 million during 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. However, the impact of the COVID-19 pandemic is inherently uncertain, and, as a result, the Company is unable to reasonably estimate the duration and ultimate impacts of the pandemic, including the effect it may have on our contractual obligations with our customers.
Contract Assets and Liabilities
The following tables summarize the balances of our contract assets and liabilities:
(in thousands)
June 30, 2020
 
September 30, 2019
Contract assets
$
2,337

 
$
2,151

(in thousands)
June 30, 2020
Contract liabilities balance at September 30, 2019
$
23,354

Payment received/accrued and deferred
16,005

Revenue recognized during the period
(29,138
)
Contract liabilities balance at June 30, 2020
$
10,221