XML 26 R12.htm IDEA: XBRL DOCUMENT v3.20.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
The adoption of FASB Topic Revenue from Contracts with Customers, which was recognized in a cumulative catch-up adjustment on January 1, 2018, resulted in an increase to Retained earnings of $9.9 million.
Within our Nuclear Operations Group segment, we continue to recognize revenue over time and now measure progress on performance obligations using a cost-to-cost method. Prior to January 1, 2018, we utilized man-hours or a cost-to-cost method to measure progress on certain performance obligations within this segment. The performance obligations identified for recognizing revenue are similar to our historical units of account. As a result of the change to a cost-to-cost method, the timing of revenue recognition on affected contracts, in the aggregate, results in the recognition of revenue and cost of operations earlier in the process of satisfying performance obligations. This change impacted the life-to-date revenue and cost of operations recognized on performance obligations, and the adjustment to capture the impact of the new revenue recognition standard was recorded as a cumulative catch-up adjustment in Retained earnings.
The impact of the adoption of the new revenue standard on our Nuclear Power Group and Nuclear Services Group segments was not material.
Contracts and Revenue Recognition
Nuclear Operations Group
Our Nuclear Operations Group segment recognizes revenue over time for the manufacturing of naval nuclear reactor components and fuel, submarine missile launch tubes and the downblending of high-enriched uranium. Certain of our contracts
contain two or more different types of components, each of which we identify as a separate performance obligation. We recognize revenue using a cost-to-cost method to measure progress as control is continually transferred to the customer as we incur costs on the performance obligations. We allocate revenue to the individual performance obligations within contracts with multiple performance obligations based on the stand-alone selling price of the individual performance obligations.
Our fixed-price incentive fee contracts include incentives that we concluded to be variable consideration. The amount of the variable consideration to which we are entitled is dependent on our actual costs incurred on the performance obligation compared to the target costs for that performance obligation and subject to incentive price revisions included within the contracts. We include these incentive fees in revenue when there is sufficient evidence to determine that the variable consideration is not constrained. The remaining contracts typically have immaterial amounts of variable consideration and have a single performance obligation. Our estimates of variable consideration and total estimated costs at completion are determined through a detailed process based on historical performance and our expertise using the most likely method. Variations from estimated contract performance could result in a material effect on our financial condition and results of operations in future periods.
Our Nuclear Operations Group segment's contracts primarily allow for billings as costs are incurred, subject to certain retainages on our fixed-price incentive fee contracts, that require milestones to be reached for the remaining consideration to be paid. Our fuel and downblending contracts allow billing when we achieve certain milestones related to our progress.
Nuclear Power Group
Our Nuclear Power Group segment recognizes revenue over time using a cost-to-cost method for the manufacturing of large components, non-standard parts, fuel bundles and service contracts as control continually transfers to the customers. For standard parts, revenue is recognized at the point in time control transfers to the customer, which is consistent with the transfer of ownership. For medical radioisotopes, we recognize revenue either at the point in time control transfers to the customer or over time using a unit of output method. This segment generates revenue primarily from firm-fixed-price contracts that do not contain variable consideration as well as time-and-materials based contracts. Certain of these contracts contain assurance warranties and/or provisions for liquidated damages, which are expected to have an immaterial impact to the contracts based on our historical experience. We are entitled to payment on the majority of our Nuclear Power Group segment contracts when we achieve certain milestones related to our progress.
Nuclear Services Group
Our contracts within our Nuclear Services Group segment are primarily cost-plus service contracts on which we recognize revenue over time based on a cost-to-cost method, which is consistent with the structure of the billings associated with these contracts. Ownership continuously transfers to the customer as we perform the services. The contracts within this segment do not contain significant variable consideration and contain a single performance obligation.
Disaggregated Revenues
Revenues by geographical area and customer type were as follows:
 Year Ended December 31, 2020Year Ended December 31, 2019Year Ended December 31, 2018
Nuclear
Operations
Group		Nuclear
Power
Group		Nuclear
Services
Group		TotalNuclear
Operations
Group		Nuclear
Power
Group		Nuclear
Services
Group		TotalNuclear
Operations
Group		Nuclear
Power
Group		Nuclear
Services
Group		Total
 (In thousands)
United States:
Government$1,540,256 $— $113,075 $1,653,331 $1,368,555 $— $111,236 $1,479,791 $1,311,886 $— $107,711 $1,419,597 
Non-Government98,986 35,432 19,061 153,479 51,802 38,058 17,907 107,767 4,146 16,059 11,831 32,036 
$1,639,242 $35,432 $132,136 $1,806,810 $1,420,357 $38,058 $129,143 $1,587,558 $1,316,032 $16,059 $119,542 $1,451,633 
Canada:
Non-Government$— $309,433 $4,357 $313,790 $— $287,948 $2,196 $290,144 $161 $294,781 $2,758 $297,700 
Other:
Non-Government$7,015 $26,404 $— $33,419 $8,230 $26,634 $— $34,864 $2,977 $55,071 $138 $58,186 
Segment Revenues$1,646,257 $371,269 $136,493 2,154,019 $1,428,587 $352,640 $131,339 1,912,566 $1,319,170 $365,911 $122,438 1,807,519 
Eliminations(30,503)(17,646)(7,630)
Revenues$2,123,516 $1,894,920 $1,799,889 
Revenues by timing of transfer of goods or services were as follows:
 Year Ended December 31, 2020Year Ended December 31, 2019Year Ended December 31, 2018
Nuclear
Operations
Group		Nuclear
Power
Group		Nuclear
Services
Group		TotalNuclear
Operations
Group		Nuclear
Power
Group		Nuclear
Services
Group		TotalNuclear
Operations
Group		Nuclear
Power
Group		Nuclear
Services
Group		Total
 (In thousands)(In thousands)(In thousands)
Over time$1,646,092 $322,745 $136,493 $2,105,330 $1,428,348 $305,075 $131,339 $1,864,762 $1,318,884 $335,430 $122,438 $1,776,752 
Point-in-time165 48,524 — 48,689 239 47,565 — 47,804 286 30,481 — 30,767 
Segment Revenues$1,646,257 $371,269 $136,493 2,154,019 $1,428,587 $352,640 $131,339 1,912,566 $1,319,170 $365,911 $122,438 1,807,519 
Eliminations(30,503)(17,646)(7,630)
Revenues$2,123,516 $1,894,920 $1,799,889 
Revenues by contract type were as follows:
 Year Ended December 31, 2020Year Ended December 31, 2019Year Ended December 31, 2018
Nuclear
Operations
Group		Nuclear
Power
Group		Nuclear
Services
Group		TotalNuclear
Operations
Group		Nuclear
Power
Group		Nuclear
Services
Group		TotalNuclear
Operations
Group		Nuclear
Power
Group		Nuclear
Services
Group		Total
 (In thousands)(In thousands)(In thousands)
Fixed-Price Incentive Fee$1,226,770 $1,578 $— $1,228,348 $1,137,883 $2,511 $— $1,140,394 $1,041,083 $16,165 $— $1,057,248 
Firm-Fixed-Price306,296 296,394 32,334 635,024 210,631 282,014 26,163 518,808 195,030 252,893 23,294 471,217 
Cost-Plus Fee112,479 — 94,320 206,799 79,741 755 102,726 183,222 80,880 45 96,566 177,491 
Time-and-Materials712 73,297 9,839 83,848 332 67,360 2,450 70,142 2,177 96,808 2,578 101,563 
Segment Revenues$1,646,257 $371,269 $136,493 2,154,019 $1,428,587 $352,640 $131,339 1,912,566 $1,319,170 $365,911 $122,438 1,807,519 
Eliminations(30,503)(17,646)(7,630)
Revenues$2,123,516 $1,894,920 $1,799,889 
Performance Obligations
As we progress on our contracts and the underlying performance obligations for which we recognize revenue over time, we refine our estimates of variable consideration and total estimated costs at completion, which impact the overall profitability on our contracts and performance obligations. Changes in these estimates result in the recognition of cumulative catch-up adjustments that impact our revenues and/or costs of contracts. During the years ended December 31, 2020, 2019 and 2018, we recognized net favorable changes in estimates that resulted in increases in revenues of $44.9 million, $70.9 million and $58.6 million, respectively, as well as increases (decreases) in cost of operations of $2.1 million, $(0.7) million and $12.3 million, respectively. Included in these 2018 amounts are contract adjustments resulting from rework issues related to the manufacture of non-nuclear components being produced within our Nuclear Operations Group segment. We recognized a decrease in operating income of $29.2 million for the year ended December 31, 2018 related to this matter, which resulted in a decrease in earnings per share of $0.23.
Contract Assets and Liabilities
We include revenues and related costs incurred, plus accumulated contract costs that exceed amounts invoiced to customers under the terms of the contracts, in Contracts in progress. We include in Advance billings on contracts billings that exceed accumulated contract costs and revenues and costs recognized over time. Amounts that are withheld on our fixed-price incentive fee contracts are classified within Retainages. Certain of these amounts require conditions other than the passage of time to be achieved, with the remaining amounts only requiring the passage of time. Most long-term contracts contain provisions for progress payments. Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled revenues. Changes in Contracts in progress and Advance billings on contracts are primarily driven by differences in the timing of revenue recognition and billings to our customers. During the year ended December 31, 2020, our unbilled receivables increased $70.4 million primarily as a result of the timing of milestone billings in our Nuclear Power Group segment and the acquisition of Laker Energy Products. Our fixed-price incentive fee contracts for our Nuclear Operations Group segment include provisions that result in an increase in retainages on contracts during the first and third quarters of the year, with larger payments made during the second and fourth quarters. Retainages also vary as a result of timing differences between incurring costs and achieving milestones that allow us to recover these amounts.
 December 31,December 31,
 20202019
 (In thousands)
Included in Contracts in progress:
Unbilled receivables$436,279 $365,861 
Retainages$55,172 $46,670 
Included in Other Assets:
Retainages$1,488 $1,412 
Advance billings on contracts$83,581 $75,425 
Retainages expected to be collected after one year are included in Other Assets. Of the long-term retainages at December 31, 2020, we anticipate collecting $0.3 million in 2022 and $1.2 million in 2023.
During the years ended December 31, 2020 and 2019, we recognized $51.5 million and $62.3 million of revenue that was in Advance billings on contracts at December 31, 2019 and 2018, respectively.
Remaining Performance Obligations
Remaining performance obligations represent the dollar amount of revenue we expect to recognize in the future from performance obligations on contracts previously awarded and in progress. Of the remaining performance obligations on our contracts with customers at December 31, 2020, we expect to recognize revenues as follows:
20212022ThereafterTotal
(In approximate millions)
Nuclear Operations Group$1,221 $919 $1,519 $3,659 
Nuclear Power Group307 171 248 726 
Nuclear Services Group21 — — 21 
Total Remaining Performance Obligations$1,549 $1,090 $1,767 $4,406