Revenue from Contract with Customers

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

7. Revenue from Contracts with Customers

Disaggregation of Revenue

The following table presents our revenue from contracts with customers disaggregated by revenue source (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Contract operations ⁽¹⁾:
0 - 1,000 horsepower per unit	$	63,683	$	59,600	$	127,422	$	119,192
1,001 - 1,500 horsepower per unit	75,598		68,948		149,938		135,178
Over 1,500 horsepower per unit	45,969		35,904		89,394		70,314
Other ⁽²⁾	1,008		998		2,011		1,963
Total contract operations ⁽³⁾	186,258		165,450		368,765		326,647

Aftermarket services ⁽¹⁾:
Services	33,281		36,706		66,802		68,913
OTC parts and components sales	18,851		24,714		38,982		43,350
Total aftermarket services ⁽⁴⁾	52,132		61,420		105,784		112,263

Total revenue	$	238,390	$	226,870	$	474,549	$	438,910

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⁽¹⁾	We operate in two segments: contract operations and aftermarket services. See Note 19 (“Segments”) for further details regarding our segments.


⁽²⁾	Primarily related to fees associated with Archrock-owned non-compressor equipment.


⁽³⁾	Included $2.2 million and $1.4 million for the three months ended June 30, 2019 and 2018, respectively, and $4.4 million and $2.7 million for the six months ended June 30, 2019 and 2018, respectively, related to billable maintenance on Archrock-owned units that was recognized at a point in time. All other contract operations revenue is recognized over time.


⁽⁴⁾	All service revenue within aftermarket services is recognized over time. All OTC parts and components sales revenue is recognized at a point in time.

Performance Obligations

As of June 30, 2019, we had $312.9 million of remaining performance obligations related to our contract operations segment. We have elected to apply the practical expedient to not consider the effects of the time value of money, as the expected time between the transfer of services and payment for such services is less than one year. The remaining performance obligations will be recognized through 2024 as follows (in thousands):



	2019		2020		2021		2022		2023		2024		Total
Remaining performance obligations	$	148,323	$	117,192	$	37,632	$	8,295	$	1,122	$	293	$	312,857

As of June 30, 2019 we have elected to apply the practical expedient to not disclose the aggregate transaction price for the remaining performance obligations for aftermarket services, as there are no contracts with customers with an original contract term that is greater than one year.

Contract Balances

As of June 30, 2019 and December 31, 2018, our receivables from contracts with customers, net of allowance for doubtful accounts, were $139.3 million and $142.1 million, respectively. As of June 30, 2019 and December 31, 2018, our contract liabilities were $11.6 million and $17.1 million, respectively, which are included in deferred revenue and other liabilities in our condensed consolidated balance sheets. Freight billings to customers for the transport of compressor assets and milestone billings on aftermarket services often result in a contract liability. We recognized $25.2 million of our December 31, 2018 contract liability balance as revenue during the six months ended June 30, 2019, primarily related to freight billings and aftermarket services.