Revenue from Contract with Customer

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenues

Most of Registrant's revenues are derived from contracts with customers, including tariff-based revenues from its regulated utilities. ASUS's 50-year firm fixed-price contracts with the U.S. government are considered service concession arrangements under ASC 853 Service Concession Arrangements. Accordingly, the services under these contracts are accounted for under Topic 606 Revenue from Contracts with Customers and the water and/or wastewater systems are not recorded as Property, Plant and Equipment on Registrant’s balance sheet.

Although GSWC has a diversified base of residential, commercial, industrial and other customers, revenues derived from residential and commercial customers generally account for approximately 90% and 85% of total water and electric revenues, respectively. The vast majority of ASUS's revenues are with the U.S. government. For the three months ended June 30, 2019 and 2018, disaggregated revenues from contracts with customers by segment were as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
(dollar in thousands)	2019			2018			2019			2018
Water:
Tariff-based revenues	$	76,876		$	70,251		$	136,451		$	136,026
Surcharges (cost-recovery activities)	763			728			1,054			1,521
Other	461			453			920			895
Water revenues from contracts with customers	78,100			71,432			138,425			138,442
WRAM under-collection (alternative revenue program)	10,040			5,301			14,438			2,703
Total water revenues	88,140			76,733			152,863			141,145

Electric:
Tariff-based revenues	7,698			7,795			18,964			17,814
Surcharges (cost-recovery activities)	43			63			97			110
Electric revenues from contracts with customers	7,741			7,858			19,061			17,924
BRRAM over-collection (alternative revenue program)	(333		)	(17		)	(1,024		)	(251		)
Total electric revenues	7,408			7,841			18,037			17,673

Contracted services:
Water	14,620			14,233			27,975			27,233
Wastewater	14,479			8,094			27,505			15,578
Contracted services revenues from contracts with customers	29,099			22,327			55,480			42,811

Total revenues	$	124,647		$	106,901		$	226,380		$	201,629

The opening and closing balances of the receivable from the U.S. government, contract assets and contract liabilities from contracts with customers, which related entirely to ASUS, were as follows:



(dollar in thousands)	June 30, 2019		January 1, 2019

Receivable from the U.S. government	$	59,859	$	61,126
Contract assets	$	31,557	$	24,447
Contract liabilities	$	11,564	$	7,530

Contract Assets - Contract assets are those of ASUS and consist of unbilled revenues recognized from work-in-progress construction projects, where the right to payment is conditional on something other than the passage of time. The classification of this asset as current or noncurrent is based on the timing of when ASUS expects to bill these amounts.

Contract Liabilities - Contract liabilities are those of ASUS and consist of billings in excess of revenue recognized. The classification of this liability as current or noncurrent is based on the timing of when ASUS expects to recognize revenue.

Revenue for the three and six months ended June 30, 2019, which was included in contract liabilities at the beginning of the period were $1.7 million and $1.3 million, respectively. Contracted services revenues recognized during the three months ended June 30, 2019 from performance obligations satisfied in previous periods were not material.

As of June 30, 2019, Registrant's aggregate remaining performance obligations, which are entirely for the contracted services segment, were $3.2 billion. Registrant expects to recognize revenue on these remaining performance obligations over the remaining term of each of the 50-year contracts, which range from 35 to 49 years. Each of the contracts with the U.S. government is subject to termination, in whole or in part, prior to the end of its 50-year term for convenience of the U.S. government.