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Revenues, Contract Assets and Contract Liabilities

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenues, Contract Assets and Contract Liabilities

Note 4. – Revenues, Contract Assets and Contract Liabilities

Disaggregation of Total Net Sales

The Company disaggregates its sales with customers by revenue recognition method for its only segment, as the Company believes these factors affect the nature, amount, timing, and uncertainty of the Company’s revenue and cash flows.

		Three months ended March 31,
		2019				2018
Fixed price contracts		$	42,176			$	42,216
Product sales			64,992				44,944
Total Revenues		$	107,168			$	87,160

The following table presents geographical information about revenues.

		Three months ended March 31,
		2019				2018
Colombia		$	12,959			$	21,824
United States			92,062				62,993
Panama			763				814
Other			1,384				1,529
Total Revenues		$	107,168			$	87,160

Contract Assets and Liabilities

Contract assets represent accumulated incurred costs and earned profits on contracts with customers that have been recorded as sales but have not been billed to customers and are classified as current and a portion of the amounts billed on certain fixed price contracts that are withheld by the customer as a retainage until a final good receipt of the complete project to the customers satisfaction. Contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue, and represent amounts received in excess of sales recognized on contracts. The Company classifies advance payments and billings in excess of costs incurred as current, and deferred revenue as current or non-current based on the expected timing of sales recognition. Contract assets and contract liabilities are determined on a contract by contract basis at the end of each reporting period. The non-current portion of contract liabilities is included in other liabilities in the Company’s consolidated balance sheets.

The table below presents the components of net contract assets (liabilities).

		March 31, 2019				December 31, 2018
Contract assets — current		$	49,063			$	46,018
Contract assets — non-current			8,117				6,986
Contract liabilities — current			(13,698	)			(16,789	)
Contract liabilities — non-current			(703	)			(1,436	)
Net contract assets (liabilities)		$	42,779			$	34,779

The components of contract assets are presented in the table below.

		March 31, 2019				December 31, 2018
Unbilled contract receivables, gross		$	25,625			$	21,703
Retainage			31,555				31,301
Total contract assets			57,180				53,004
Less: current portion			49,063				46,018
Contract Assets – non-current		$	8,117			$	6,986

The components of contract liabilities are presented in the table below.

		March 31, 2019				December 31, 2018
Billings in excess of costs		$	3,250				4,393
Advances from customers on uncompleted contracts			11,151				13,832
Total contract liabilties			14,401				18,225
Less: current portion			13,698				16,789
Contract liabilities – non-current		$	703				1,436

During the three months ended March 31, 2019, the Company recognized $2,282 of sales related to its contract liabilities at January 1, 2019. During the three months ended March 31, 2018, the Company recognized $3,392 of sales related to its contract liabilities at January 1, 2018.

Remaining Performance Obligations

As of March 31, 2019, the Company had $279.4 million of remaining performance obligations, which represents the transaction price of firm orders minus sales recognized from inception to date. Remaining performance obligations exclude unexercised contract options, verbal commitments and potential orders under basic ordering agreements. The Company expects to recognize 100% of sales relating to existing performance obligations within three years, of which $217.3 million are expected to be recognized during the year ended December 31, 2019, and $62.1 million during the year ended December 31, 2020.