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Revenue (Notes)
6 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block] Revenue
Remaining Performance Obligations
We had $574.6 million of remaining performance obligations yet to be satisfied as of December 31, 2022. We expect to recognize $432.8 million of our remaining performance obligations as revenue within the next twelve months.
Contract Balances
Contract terms with customers include the timing of billing and payments, which usually differs from the timing of revenue recognition. As a result, we carry contract assets and liabilities in our balance sheet. These contract assets and liabilities are calculated on a contract-by-contract basis and reported on a net basis at the end of each period and are classified as current. We present our contract assets in the balance sheet as Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts ("CIE"). CIE consists of revenue recognized in excess of billings. We present our contract liabilities in the balance sheet as Billings on Uncompleted Contracts in Excess of Costs and Estimated Earnings ("BIE"). BIE consists of billings in excess of revenue recognized. The following table provides information about CIE and BIE:
December 31,
2022
June 30,
2022
Change
 (in thousands)
Costs and estimated earnings in excess of billings on uncompleted contracts$46,588 $44,752 $1,836 
Billings on uncompleted contracts in excess of costs and estimated earnings(99,762)(65,106)(34,656)
Net contract liabilities$(53,174)$(20,354)$(32,820)
The difference between the beginning and ending balances of our CIE and BIE primarily results from the timing of revenue recognized relative to its billings. The amount of revenue recognized during the six months ended December 31, 2022 that was included in the June 30, 2022 BIE balance was $52.3 million. This revenue consists primarily of work performed during the period on contracts with customers that had advance billings.
Progress billings in accounts receivable at December 31, 2022 and June 30, 2022 included retentions to be collected within one year of $19.7 million and $16.1 million, respectively. Contract retentions collectible beyond one year are included in other assets, non-current in the Condensed Consolidated Balance Sheets and totaled $9.0 million as of December 31, 2022 and $4.0 million as of June 30, 2022.
Disaggregated Revenue
Revenue disaggregated by reportable segment is presented in Note 10 - Segment Information. The following tables presents revenue disaggregated by geographic area where the work was performed and by contract type:
Geographic Disaggregation:
 Three Months EndedSix Months Ended
 December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
 (In thousands)
United States$170,290 $145,917 $346,470 $299,201 
Canada20,885 15,260 45,810 28,770 
Other international2,665 788 9,991 2,087 
Total Revenue$193,840 $161,965 $402,271 $330,058 

Contract Type Disaggregation:
 Three Months EndedSix Months Ended
 December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
 (In thousands)
Fixed-price contracts$105,283 $100,841 $214,756 $202,906 
Time and materials and other cost reimbursable contracts88,557 61,124 187,515 127,152 
Total Revenue$193,840 $161,965 $402,271 $330,058 
Typically, we assume more risk with fixed-price contracts since increases in costs to perform the work may not be recoverable. However, these types of contracts typically offer higher profits than time and materials and other cost reimbursable contracts when completed at or below the costs originally estimated. The profitability of time and materials and other cost reimbursable contracts is typically lower than fixed-price contracts and is usually less volatile than fixed-price contracts since the profit component is factored into the rates charged for labor, equipment and materials, or is expressed in the contract as a percentage of the reimbursable costs incurred.
Revisions in Estimates
Subsequent to the end of the second quarter of fiscal 2023, we received notice from a client that they would not approve adequate compensation to us for the impact that excessive scope changes had on our ability to progress work on a midstream gas processing project according to forecast, as well as for the impact that global supply chain issues and inflation had on the project. The project is included in the Process and Industrial Facilities segment and reduced gross profit by $9.6 million and $9.4 million during the three and six months ended December 31, 2022, respectively. We have accrued the full expected loss for the project, which we expect to be mechanically complete in the fourth quarter of fiscal 2023.