Revenue from Contract with Customer

9 Months Ended

Sep. 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 more than 90% of total water and electric revenues. The vast majority of ASUS's revenues are from the U.S. government. For the three and nine months ended September 30, 2019 and 2018, disaggregated revenues from contracts with customers by segment were as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
(dollar in thousands)	2019		2018			2019		2018
Water:
Tariff-based revenues	$	89,050	$	87,204		$	225,501	$	223,230
Surcharges (cost-recovery activities)	1,900		937			2,954		2,458
Other	555		486			1,475		1,381
Water revenues from contracts with customers	91,505		88,627			229,930		227,069
WRAM under (over)-collection (alternative revenue program)	3,744		(938		)	18,182		1,765
Total water revenues	95,249		87,689			248,112		228,834

Electric:
Tariff-based revenues	9,729		8,207			28,693		26,021
Surcharges (cost-recovery activities)	51		62			148		172
Electric revenues from contracts with customers	9,780		8,269			28,841		26,193
BRRAM under (over)-collection (alternative revenue program)	2,216		(394		)	1,192		(645		)
Total electric revenues	11,996		7,875			30,033		25,548

Contracted services:
Water	13,797		16,909			41,772		44,134
Wastewater	13,454		11,709			40,959		27,295
Contracted services revenues from contracts with customers	27,251		28,618			82,731		71,429

Total revenues	$	134,496	$	124,182		$	360,876	$	325,811

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)	September 30, 2019		January 1, 2019

Receivable from the U.S. government	$	60,277	$	61,126
Contract assets	$	28,701	$	24,447
Contract liabilities	$	12,689	$	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 nine months ended September 30, 2019, which were included in contract liabilities at the beginning of the period were $5.9 million and $7.3 million, respectively. Contracted services revenues recognized during the three and nine months ended September 30, 2019 from performance obligations satisfied in previous periods were not material.

As of September 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.