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Revenue Recognition

9 Months Ended

Sep. 30, 2019

Revenue Recognition

Revenue Recognition

(11) Revenue Recognition

On January 1, 2018, we adopted ASC Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018.

We identified no material impact on our historical revenues upon initial application of ASC Topic 606, and as such did not recognize any cumulative catch-up effect to the opening balance of our partners’ capital as of January 1, 2018. Additionally, the application of ASC Topic 606 had no material impact on any financial statement line items.

The following table disaggregates our revenue by type of service (in thousands):


		Three Months Ended September 30,						Nine Months Ended September 30,
		2019			2018			2019			2018
Contract operations revenue		$	169,911		$	162,895		$	507,194		$	396,134
Retail parts and services revenue			5,845			6,052			12,983			16,241
Total revenues		$	175,756		$	168,947		$	520,177		$	412,375

The following table disaggregates our revenue by timing of provision of services or transfer of goods (in thousands):


		Three Months Ended September 30,						Nine Months Ended September 30,
		2019			2018			2019			2018
Services provided or goods transferred at a point in time		$	5,845		$	6,052		$	12,983		$	16,241
Services provided over time:
Primary term			114,121			84,620			316,809			199,027
Month-to-month			55,790			78,275			190,385			197,107
Total revenues		$	175,756		$	168,947		$	520,177		$	412,375

Contract assets and trade accounts receivable

We record contract assets when we have completed performance under a contract but our right to consideration is not yet unconditional. We had no contract assets as of September 30, 2019 and December 31, 2018. There were no significant changes to our trade accounts receivable balances due to contract modifications or adjustments, or changes in time frame for a right to consideration to become unconditional during the period.

Deferred revenue

We record deferred revenue when cash payments are received or due in advance of our performance. The increase in the deferred revenue balance for the nine months ended September 30, 2019 is primarily driven by cash payments received or due in advance of satisfying our performance obligations under a contract. There was no significant change to our deferred revenue balance as a result of changes in time frame for a performance obligation to be satisfied during the period.

Practical expedients and exemptions

We have elected to apply the practical expedient in ASC 606-10-50-14 and as such do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.