XML 24 R13.htm IDEA: XBRL DOCUMENT v3.20.2

Revenue Recognition

6 Months Ended

Jun. 30, 2020

Revenue Recognition

Revenue Recognition

7. Revenue Recognition

Disaggregation of Revenue

A majority of the Company’s revenues are earned through contracts with customers that normally provide for payment upon completion of specified work or units of work as identified in the contract. Although there is considerable variation in the terms of these contracts, they are primarily structured as fixed-price contracts, under which the Company agrees to do the entire project for a fixed amount, or unit-price contracts, under which the Company agrees to do the work at a fixed price per unit of work as specified in the contract. The Company also enters into time-and-equipment and time-and-materials contracts under which the Company is paid for labor and equipment at negotiated hourly billing rates and for other expenses, including materials, as incurred at rates agreed to in the contract. Finally, the Company sometimes enters into cost-plus contracts, where the Company is paid for costs plus a negotiated margin. On occasion, time-and-equipment, time-and-materials and cost-plus contracts include a guaranteed not-to-exceed maximum price.

Historically, fixed-price and unit-price contracts have had the highest potential margins; however, they have had a greater risk in terms of profitability because cost overruns may not be recoverable. Time-and-equipment, time-and-materials and cost-plus contracts have historically had less margin upside, but generally have had a lower risk of cost overruns. The Company also provides services under master service agreements (“MSAs”) and other variable-term service agreements. MSAs normally cover maintenance, upgrade and extension services, as well as new construction. Work performed under MSAs is typically billed on a unit-price, time-and-materials or time-and-equipment basis. MSAs are typically one to three years in duration; however, most of the Company’s contracts, including MSAs, may be terminated by the customer on short notice, typically 30 to 90 days, even if the Company is not in default under the contract. Under MSAs, customers generally agree to use the Company for certain services in a specified geographic region. Most MSAs include no obligation for the contract counterparty to assign specific volumes of work to the Company and do not require the counterparty to use the Company exclusively, although in some cases the MSA contract gives the Company a right of first refusal for certain work. Additional information related to the Company’s market types is provided in Note 11–Segment Information.

The components of the Company’s revenue by contract type for the three and six months ended June 30, 2020 and 2019 were as follows:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three months ended June 30, 2020
​	​	T&D				​	C&I				​	Total
(dollars in thousands)		Amount			Percent		Amount			Percent		Amount			Percent
Fixed price	​	$	126,350	​	45.7	%	$	187,662	​	79.4	%	$	314,012	​	61.2	%
Unit price	​		84,629		30.6	​		19,047		8.1	​		103,676		20.2	​
T&E	​		61,632		22.3	​		21,752		9.2	​		83,384		16.3	​
Other	​		4,148		1.4	​		7,831		3.3	​		11,979		2.3	​
​	​	$	276,759		100.0	%	$	236,292		100.0	%	$	513,051		100.0	%

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​		Three months ended June 30, 2019														​
​	​	T&D				​	C&I				​	Total
(dollars in thousands)	​	Amount		​	Percent	​	Amount		​	Percent	​	Amount		​	Percent
Fixed price	​	$	119,572		46.7	%	$	115,117		59.7	%	$	234,689		52.3	%
Unit price	​		52,162		20.4	​		12,855		6.7	​		65,017		14.5	​
T&E	​		76,841		30.0	​		37,193		19.3	​		114,034		25.4	​
Other	​		7,335		2.9	​		27,701		14.3	​		35,036		7.8	​
​	​	$	255,910		100.0	%	$	192,866		100.0	%	$	448,776		100.0	%

​

The components of the Company’s revenue by contract type for the six months ended June 30, 2020 and 2019 were as follows:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Six months ended June 30,  2020
​	​	T&D				​	C&I				​	Total
(dollars in thousands)		​	Amount		Percent		​	Amount		Percent		​	Amount		Percent	​
Fixed price	​	$	247,352		46.1	%	$	406,201		82.0	%	$	653,553		63.4	%
Unit price	​		147,939		27.6	​		37,123		7.5	​		185,062		17.9	​
T&E	​		129,683		24.2	​		37,554		7.6	​		167,237		16.2	​
Other	​		11,055		2.1	​		14,614		2.9	​		25,669		2.5	​
​	​	$	536,029		100.0	%	$	495,492		100.0	%	$	1,031,521		100.0	%

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Six months ended June 30,  2019
​	​	T&D				​	C&I				​	Total
(dollars in thousands)		​	Amount		Percent		​	Amount		Percent		​	Amount		Percent	​
Fixed price	​	$	252,896		47.9	%	$	248,828		64.1	%	$	501,724		54.7	%
Unit price	​		103,356		19.6	​		22,843		5.9	​		126,199		13.8	​
T&E	​		153,149		29.0	​		49,724		12.8	​		202,873		22.1	​
Other	​		19,057		3.5	​		67,017		17.2	​		86,074		9.4	​
​	​	$	528,458		100.0	%	$	388,412		100.0	%	$	916,870		100.0	%

​

The components of the Company’s revenue by market type for the three months ended June 30, 2020 and 2019 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended June 30, 2020

​

Three months ended June 30, 2019

(dollars in thousands)

Amount

Percent

Segment

Amount

Percent

Segment

Transmission

​

$

181,189

​

35.3

%

T&D

​

$

169,466

​

37.8

%

T&D

Distribution

​

95,570

18.6

T&D

​

86,444

19.2

T&D

Electrical construction

​

236,292

46.1

C&I

​

192,866

43.0

C&I

Total revenue

​

$

513,051

100.0

%

​

$

448,776

100.0

%

​

The components of the Company’s revenue by market type for the six months ended June 30, 2020 and 2019 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30,  2020

​

Six months ended June 30, 2019

(dollars in thousands)

Amount

Percent

Segment

Amount

Percent

Segment

Transmission

​

$

352,755

34.2

%

T&D

​

$

357,231

39.0

%

T&D

Distribution

​

183,274

17.8

T&D

​

171,227

18.6

T&D

Electrical construction

​

495,492

48.0

C&I

​

388,412

42.4

C&I

Total revenue

​

$

1,031,521

100.0

%

​

$

916,870

100.0

%

​

Remaining Performance Obligations

As of June 30, 2020, the Company had $1.45 billion of remaining performance obligations. The Company’s remaining performance obligations include projects that have a written award, a letter of intent, a notice to proceed or an agreed upon work order to perform work on mutually accepted terms and conditions.

The following table summarizes the amount of remaining performance obligations as of June 30, 2020 that the Company expects to be realized and the amount of the remaining performance obligations that the Company reasonably estimates will not be recognized within the next twelve months.

​

​	​	​	​	​	​	​	​	​	​
​	​	Remaining Performance Obligations at June 30, 2020					​	​	​
​	​	​	​	​	Amount estimated to not be		​	Total at
(in thousands)		Total			recognized within 12 months			December 31, 2019
​	​	​	​	​	​	​	​	​	​
T&D	​	$	421,472	​	$	40,418	​	$	381,850
C&I	​		1,025,097	​		191,528	​		1,027,193
Total	​	$	1,446,569	​	$	231,946	​	$	1,409,043

​

The Company expects a vast majority of the remaining performance obligations to be recognized within twenty-four months, although the timing of the Company’s performance is not always under its control. Additionally, the difference between the remaining performance obligations and backlog is due to the exclusion of a portion of the Company’s MSAs under certain contract types from the Company’s remaining performance obligations as these contracts can be canceled for convenience at any time by the Company or the customer without considerable cost incurred by the customer. Additional information related to backlog is provided in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

X

- References

No definition available.

+ Details

Name:	us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Name:	us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration