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Note 15 - Revenue
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

15.

REVENUE:

 

The Company adopted ASC Topic 606, “Revenue from Contracts with Customers,” (“Topic 606”) on January 1, 2018 using the modified retrospective method applied to those contracts that were not completed as of that date. The cumulative effect of adopting Topic 606 was a $0.9 million decrease to Retained earnings as of January 1, 2018 due to a change in the timing of revenue recognition on certain costs under the new revenue standard, as well as, to a lesser extent, a change in the costs included in the provisions for losses on uncompleted contracts. Under the modified retrospective method, periods prior to January 1, 2018 were not adjusted and continue to be reported in accordance with accounting standards in effect for those periods.

 

Net sales by geographic region, based on the location of the customer, were as follows (in thousands):

 

  

Year Ended December 31,

 
  

2020

  

2019

  

2018

 

Net sales by geographic region:

            

United States

 $254,956  $252,797  $161,415 

Canada

  30,951   26,520   10,734 

Total

 $285,907  $279,317  $172,149 

 

One customer accounted for 16% and 23% of total Net sales for the years ended December 31, 2020 and 2019, respectively. No customer accounted for 10% or more of total Net sales for the year ended December 31, 2018.

 

Revisions in contract estimates resulted in an increase (decrease) in revenue of $2.2 million, $(1.2) million, and $(0.2) million for the years ended December 31, 2020, 2019, and 2018, respectively.

 

Disaggregation of Revenue

 

The following table disaggregates revenue by recognition over time or at a point in time, as the Company believes it best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors (in thousands):

 

  

Year Ended December 31,

 
  

2020

  

2019

  

2018

 
             

Over time

 $241,690  $279,317  $172,149 

Point in time

  44,217   -   - 

Net sales

 $285,907  $279,317  $172,149 

 

Contract Assets and Liabilities

 

The difference between the opening and closing balances of the Company’s Contract assets and Contract liabilities primarily results from the timing difference between the Company’s performance and billings, and during the year ended December 31, 2018, an increase due to the acquisition of Ameron of $12.0 million of Contract assets and $0.1 million of Contract liabilities. The changes in the Contract assets and Contract liabilities balances during the years ended December 31, 2020, 2019, and 2018 were not materially affected by any other factors.

 

The Company recognized revenue that was included in the Contract liabilities balance at the beginning of each period of $12.3 million, $3.7 million, and $2.6 million during the years ended December 31, 2020, 2019, and 2018, respectively.

 

Backlog

 

Backlog represents the balance of remaining performance obligations under signed contracts for water infrastructure steel pipe products for which revenue is recognized over time. As of December 31, 2020, backlog was approximately $167 million. The Company expects to recognize approximately 79% of the remaining performance obligations in 2021, 20% in 2022, and the balance thereafter.