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Note 2 - Revenues
 3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]
NOTE
2
— REVENUES
 
Revenues are recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.
 
The following table presents the Company's revenues disaggregated by revenue source for the
three
months ended
March 31, 2021
and
2020
:
 
   
Three Months Ended March 31,
  
   
2021
    
2020
  
Heavy Fabrications
   $
22,777
     $
38,368
  
Gearing
    
5,349
      
6,227
  
Industrial Solutions
    
4,604
      
4,039
  
Eliminations
    
(2
 )    
-
  
Consolidated
   $
32,728
     $
48,634
  
 
Revenue within the Company's Gearing and Industrial Solutions segments, as well as industrial fabrication product line revenues within the Heavy Fabrications segment, are generally recognized at a point in time, typically when the promised goods or services are transferred to its customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. The Company measures revenue based on the consideration specified in the purchase order and revenue is recognized when the performance obligations are satisfied. If applicable, the transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation.
 
For tower sales within the Company's Heavy Fabrications segment, products are sold under terms included in bill and hold sales arrangements that result in different timing for revenue recognition. The Company recognizes revenue under these arrangements only when there is a substantive reason for the agreement, the ordered goods are identified separately as belonging to the customer and
not
available to fill other orders, the goods are currently ready for physical transfer to the customer, and the Company does
not
have the ability to use the product or to direct it to another customer. Assuming these required revenue recognition criteria are met, revenue is recognized upon completion of product manufacture and customer acceptance.
 
During the
three
months ended
March 
31,
 
2021,
the Company recognized
$172
 of revenue within the Gearing segment and
$1,153
 within the Heavy Fabrications segment over time, as the products had
no
alternative use to the Company and the Company had an enforceable right to payment, including profit, upon termination of the contracts. Since the projects are labor intensive, the Company uses labor hours as the input measure of progress for the applicable contracts. Contract assets are recorded when performance obligations are satisfied but the Company is
not
yet entitled to payment. The Company recognized
$269
 
of net contract assets during the
first
quarter associated with this revenue which represents the Company's rights to consideration for work completed but
not
billed at the end of the period. The Company did
not
recognize any revenue over time during the quarter ended
March 
31,
2020.
 
The Company generally expenses sales commissions when incurred. These costs are recorded within selling, general and administrative expenses. Customer deposits, deferred revenue and other receipts are deferred and recognized when the revenue is realized and earned. Cash payments to customers are classified as reductions of revenue in the Company's statement of operations.
 
The Company does
not
disclose the value of the unsatisfied performance obligations for contracts with an original expected length of
one
year or less.