Quarterly report pursuant to Section 13 or 15(d)

Revenues

v3.22.2.2
Revenues
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenues
NOTE 5 – Revenues
The following table disaggregates revenue by significant product type and operating segment for the three and six months ended June 30, 2022 and 2021:
Three Months Ended June 30, Six Months Ended June 30,
(in thousands)
 2022 2021 2022 2021
Revenue by Product Type
RNG, including RINs and LCFS credits
 $ 55,086  $ 821  $ 89,883  $ 821 
RNG O&M service (1)
242  —  532  — 
Power, including RECs
 14,893  2,238  31,759  2,238 
Power O&M service (1)
953  —  1,851  — 
Equipment and associated services
 2,808  2,068  4,022  3,722 
Other (1)
468  —  533  — 
Total
 $ 74,450  $ 5,127  $ 128,580  $ 6,781 
Revenue by Operating Segment
RNG
 $ 55,328  $ 821  $ 90,415  $ 821 
Power
 15,846  2,238  33,610  2,238 
Corporate and Other
 3,276  2,068  4,555  3,722 
Total $ 74,450  $ 5,127  $ 128,580  $ 6,781 
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(1) Includes revenues earned from the Company’s joint ventures, see “Note 20 - Related Party Transactions.”
Contract Assets and Contract Liabilities
The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets include unbilled amounts from equipment sales projects when revenues recognized under the cost-to-cost measure of progress exceed the amounts invoiced to customers, as the amounts cannot be billed under the terms of the contracts. There were no credit allowances for contract assets as of June 30, 2022 or December 31, 2021. Contract liabilities from contracts arise when amounts invoiced to customers exceed revenues from equipment sales recognized under the cost-to-cost measure of progress. Contract liabilities additionally include advanced payments from customers on certain equipment contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation and are recorded as either current or long-term, depending upon when such revenue is expected to be recognized.
Contract assets and liabilities consisted of the following as of June 30, 2022 and December 31, 2021:
(in thousands) June 30, 2022 December 31, 2021
Contract assets (included in Prepaid expenses and other current assets)
 $ 168  $ 87 
Contract liabilities (included in Accrued and other current liabilities)
$ (270) $ (505)
The decrease in contract liabilities during the six months ended June 30, 2022 was primarily due to the timing of milestone billings along with revenues recognized that were included in December 31, 2021 contract liabilities.
Costs to Obtain Customer Contracts
The Company recognizes an asset for the incremental costs of obtaining a contract with a customer when the economic benefit and amortization period exceeds one year. Only those costs that are directly related to the acquisition of customer contracts and that would not have been incurred if the customer contract had not been obtained are deferred as assets. As of June 30, 2022, $2.5 million was recorded for costs to obtain customer contracts and included in other non-current assets on the Company’s consolidated balance sheet. Amortization will begin when the related contract commences.
Transaction Price Allocated to Remaining Unsatisfied Performance Obligations
Remaining unsatisfied performance obligations as of June 30, 2022 relate to certain of the Company’s RNG and Environmental Attributes contracts. The Company applies the optional exemptions in ASC 606 and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied performance obligations. Firm contracts for fixed-price, fixed-quantity sales of RNG and Environmental Attributes based on minimum contractual volumes are reflected in the table below when their original expected term is in excess of one year. The following table summarizes the revenue the Company expects to recognize over next 21 years on these firm sales contracts as of June 30, 2022:

(in thousands)
Remainder of 2022 $ 42,026 
2023-2024 262,001
2025-2026 429,996
2027-2028 441,067
2029-2030 434,641
2031-2032 418,453
Thereafter 1,871,603
Total $ 3,899,787