Revenue from contracts with customers

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.

As part of the adoption of ASC 606 - Revenue from Contracts with Customers, the Company elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less.

Disaggregation

In the following table, revenue is disaggregated by the type of customer or service provided. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The table also includes a reconciliation of the disaggregated revenue by reportable segments. For more information on the Company's business segments, see Note 17.



Three Months Ended June 30, 2019	Electric		Natural gas distribution		Pipeline and midstream			Construction materials and contracting			Construction services			Other			Total
	(In thousands)
Residential utility sales	$	26,437	$	71,010	$	—		$	—		$	—		$	—		$	97,447
Commercial utility sales	33,231		41,250		—			—			—			—			74,481
Industrial utility sales	9,344		5,577		—			—			—			—			14,921
Other utility sales	1,879		—		—			—			—			—			1,879
Natural gas transportation	—		10,706		24,804			—			—			—			35,510
Natural gas gathering	—		—		2,396			—			—			—			2,396
Natural gas storage	—		—		2,623			—			—			—			2,623
Contracting services	—		—		—			297,124			—			—			297,124
Construction materials	—		—		—			444,768			—			—			444,768
Intrasegment eliminations*	—		—		—			(145,925		)	—			—			(145,925		)
Inside specialty contracting	—		—		—			—			319,276			—			319,276
Outside specialty contracting	—		—		—			—			133,288			—			133,288
Other	8,417		2,923		6,293			—			9			2,903			20,545
Intersegment eliminations	—		—		(7,513		)	(168		)	(721		)	(2,879		)	(11,281		)
Revenues from contracts with customers	79,308		131,466		28,603			595,799			451,852			24			1,287,052
Revenues out of scope	1,703		2,401		77			—			12,340			—			16,521
Total external operating revenues	$	81,011	$	133,867	$	28,680		$	595,799		$	464,192		$	24		$	1,303,573


*	Intrasegment revenues are presented within the construction materials and contracting segment to highlight the focus on vertical integration as this segment sells materials to both third parties and internal customers. Due to consolidation requirements, these revenues must be eliminated against construction materials to arrive at the external operating revenue total for the segment.



Three Months Ended June 30, 2018	Electric		Natural gas distribution		Pipeline and midstream			Construction materials and contracting			Construction services			Other			Total
	(In thousands)
Residential utility sales	$	26,752	$	68,688	$	—		$	—		$	—		$	—		$	95,440
Commercial utility sales	32,676		40,820		—			—			—			—			73,496
Industrial utility sales	8,226		5,227		—			—			—			—			13,453
Other utility sales	1,874		—		—			—			—			—			1,874
Natural gas transportation	—		10,084		21,287			—			—			—			31,371
Natural gas gathering	—		—		2,310			—			—			—			2,310
Natural gas storage	—		—		2,634			—			—			—			2,634
Contracting services	—		—		—			247,558			—			—			247,558
Construction materials	—		—		—			387,632			—			—			387,632
Intrasegment eliminations*	—		—		—			(125,567		)	—			—			(125,567		)
Inside specialty contracting	—		—		—			—			216,371			—			216,371
Outside specialty contracting	—		—		—			—			95,261			—			95,261
Other	8,425		3,614		4,326			—			103			2,757			19,225
Intersegment eliminations	—		—		(6,539		)	(235		)	(540		)	(2,667		)	(9,981		)
Revenues from contracts with customers	77,953		128,433		24,018			509,388			311,195			90			1,051,077
Revenues out of scope	546		1,107		42			—			11,825			—			13,520
Total external operating revenues	$	78,499	$	129,540	$	24,060		$	509,388		$	323,020		$	90		$	1,064,597


*	Intrasegment revenues are presented within the construction materials and contracting segment to highlight the focus on vertical integration as this segment sells materials to both third parties and internal customers. Due to consolidation requirements, these revenues must be eliminated against construction materials to arrive at the external operating revenue total for the segment.



Six Months Ended June 30, 2019	Electric		Natural gas distribution			Pipeline and midstream			Construction materials and contracting			Construction services			Other			Total
	(In thousands)
Residential utility sales	$	62,993	$	271,619		$	—		$	—		$	—		$	—		$	334,612
Commercial utility sales	68,902		163,043			—			—			—			—			231,945
Industrial utility sales	18,228		14,188			—			—			—			—			32,416
Other utility sales	3,678		—			—			—			—			—			3,678
Natural gas transportation	—		22,276			49,862			—			—			—			72,138
Natural gas gathering	—		—			4,517			—			—			—			4,517
Natural gas storage	—		—			5,269			—			—			—			5,269
Contracting services	—		—			—			380,164			—			—			380,164
Construction materials	—		—			—			624,077			—			—			624,077
Intrasegment eliminations*	—		—			—			(181,066		)	—			—			(181,066		)
Inside specialty contracting	—		—			—			—			618,805			—			618,805
Outside specialty contracting	—		—			—			—			240,686			—			240,686
Other	17,538		6,836			8,989			—			26			10,747			44,136
Intersegment eliminations	—		—			(31,468		)	(264		)	(849		)	(10,704		)	(43,285		)
Revenues from contracts with customers	171,339		477,962			37,169			822,911			858,668			43			2,368,092
Revenues out of scope	2,239		(1,948		)	124			—			26,257			—			26,672
Total external operating revenues	$	173,578	$	476,014		$	37,293		$	822,911		$	884,925		$	43		$	2,394,764


*	Intrasegment revenues are presented within the construction materials and contracting segment to highlight the focus on vertical integration as this segment sells materials to both third parties and internal customers. Due to consolidation requirements, these revenues must be eliminated against construction materials to arrive at the external operating revenue total for the segment.



Six Months Ended June 30, 2018	Electric			Natural gas distribution		Pipeline and midstream			Construction materials and contracting			Construction services			Other			Total
	(In thousands)
Residential utility sales	$	61,935		$	261,574	$	—		$	—		$	—		$	—		$	323,509
Commercial utility sales	67,377			157,711		—			—			—			—			225,088
Industrial utility sales	16,996			13,036		—			—			—			—			30,032
Other utility sales	3,710			—		—			—			—			—			3,710
Natural gas transportation	—			21,263		43,105			—			—			—			64,368
Natural gas gathering	—			—		4,580			—			—			—			4,580
Natural gas storage	—			—		5,768			—			—			—			5,768
Contracting services	—			—		—			321,622			—			—			321,622
Construction materials	—			—		—			561,223			—			—			561,223
Intrasegment eliminations*	—			—		—			(159,837		)	—			—			(159,837		)
Inside specialty contracting	—			—		—			—			450,192			—			450,192
Outside specialty contracting	—			—		—			—			182,442			—			182,442
Other	16,678			7,613		7,652			—			17			5,452			37,412
Intersegment eliminations	—			—		(28,298		)	(336		)	(550		)	(5,306		)	(34,490		)
Revenues from contracts with customers	166,696			461,197		32,807			722,672			632,101			146			2,015,619
Revenues out of scope	(792		)	1,007		86			—			24,970			—			25,271
Total external operating revenues	$	165,904		$	462,204	$	32,893		$	722,672		$	657,071		$	146		$	2,040,890


*	Intrasegment revenues are presented within the construction materials and contracting segment to highlight the focus on vertical integration as this segment sells materials to both third parties and internal customers. Due to consolidation requirements, these revenues must be eliminated against construction materials to arrive at the external operating revenue total for the segment.

Contract balances

The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost‐to‐cost method of accounting. Contracts from contracting services are billed as work progresses in accordance with agreed upon contractual terms. Generally, billing to the customer occurs contemporaneous to revenue recognition. A variance in timing of the billings may result in a contract asset or a contract liability. A contract asset occurs when revenues are recognized under the cost-to-cost measure of progress, which exceeds amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. A contract liability occurs when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation. The changes in contract assets and liabilities were as follows:



	June 30, 2019			December 31, 2018			Change		Location on Consolidated Balance Sheets
	(In thousands)
Contract assets	$	153,641		$	104,239		$	49,402	Receivables, net
Contract liabilities - current	(90,031		)	(93,901		)	3,870		Accounts payable
Contract liabilities - noncurrent	(25		)	(135		)	110		Deferred credits and other liabilities - other
Net contract assets	$	63,585		$	10,203		$	53,382

The Company recognized $22.6 million and $79.0 million in revenue for the three and six months ended June 30, 2019, respectively, which was previously included in contract liabilities at December 31, 2018. The Company recognized $16.9 million and $68.9 million in revenue for the three and six months ended June 30, 2018, respectively, which was previously included in contract liabilities at December 31, 2017.

The Company recognized a net increase in revenues of $20.6 million and $32.5 million for the three and six months ended June 30, 2019, respectively, from performance obligations satisfied in prior periods. The Company recognized a net increase in revenues of $2.6 million and $5.3 million for the three and six months ended June 30, 2018, respectively, from performance obligations satisfied in prior periods.

Remaining performance obligations

The remaining performance obligations at the construction materials and contracting and construction services segments include unrecognized revenues the Company reasonably expects to be realized which includes projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations are potential orders under master service agreements. The remaining performance obligations at the pipeline and midstream segment include firm transportation and storage contracts with fixed pricing and fixed volumes.

At June 30, 2019, the Company's remaining performance obligations were $2.3 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $1.8 billion within the next 12 months; $269.4 million within the next 13 to 24 months; and $248.6 million thereafter.

The majority of the Company's construction contracts have an original duration of less than two years. The Company's firm transportation and firm storage contracts have weighted average remaining durations of approximately five and three years, respectively.