NOTE 9. REVENUE FROM CONTRACTS WITH CUSTOMERS

We believe that disaggregating our revenue by operating segment (see Note 14) provides the information necessary to understand the nature, amount, timing and uncertainty of our revenues and cash flows.

Contract Balances with Customers

Our contract assets are included in “Accounts receivable” in our unaudited condensed consolidated balance sheets. Accounts receivable consist of invoiced amounts or amounts for which we have a right to invoice based on services completed or products delivered. Our current and non-current contract liabilities are included in “Other current liabilities” and “Other liabilities”, respectively, in our unaudited condensed consolidated balance sheets. Our contract liabilities consist of deferred revenues from advance consideration received from customers related to future performance of service or delivery of products and off-market contract liabilities from unfavorable contracts recognized in connection with our business acquisitions in the Proppant Production segment.

Deferred revenues, including revenue recognized during the three months ended March 31, 2023 relating to amounts included in contract liabilities at the beginning of the period, are not material to our unaudited condensed consolidated financial statements.

During the three months ended March 31, 2023, we recorded additional off-market contract liabilities amounting to $85.0 million from the Performance Proppants acquisition (see Note 2) and recorded the related amortization of $8.1 million to revenue. As of March 31, 2023, our off-market contract liabilities amounted to $100.5 million and the related estimated future amortization to revenue is expected to be $49.4 million for the remainder of 2023, $43.5 million in 2024 and $7.6 million in 2025.

Performance Obligations

Certain of our Proppant Production contracts contain multiple performance obligations to provide a minimum quantity of proppant products to our customers in future periods. For these contracts, the transaction price is allocated to each performance obligation at estimated selling prices and we recognize revenue as we satisfy these performance obligations. As of March 31, 2023, the aggregate amount of transaction price allocated to unsatisfied performance obligations was $530.7 million, and we expect to perform these obligations and recognize revenue of $202.7 million for the remainder of 2023, $189.8 million in 2024, $80.2 million in 2025, $43.5 million in 2026 and $14.5 million in 2027.

We have elected the practical expedient permitting the exclusion of disclosing the value of unsatisfied performance obligations for Stimulation Services and Manufacturing contracts as these contracts have original contract terms of one year or less or we have the right to invoice for services performed.