Revenue From Contracts With Customers
|3 Months Ended|
Mar. 31, 2023
|Revenue from Contract with Customer [Abstract]|
|Revenue From Contracts With Customers||
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.
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 , $189.8 million in , $80.2 million in , $43.5 million in and $14.5 million in .
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.
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.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef