Note 2 - Revenues

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

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 years ended

December 31, 2020

and

2019

:

	Year Ended December 31,
	2020			2019
Heavy Fabrications	$	155,198		$	128,686
Gearing		25,136			34,877
Industrial Solutions		18,299			14,664
Eliminations		(137	)		(7	)
Consolidated	$	198,496		$	178,220

The Company's revenue is generally recognized at a point in time, typically when control of the promised goods or services is 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 many 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 versus shipment. The Company recognizes revenue under these arrangements only when there is a substantive reason for the arrangement, 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 year ended

December 31, 

2020,

the Company recognized

$1,438

 of revenue from 

one

customer within the Gearing segment and

$815

 from

one

customer in 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 contract. Since the projects are labor intensive, the Company uses labor hours as the input measure of progress for the contracts. Contract assets are recorded when performance obligations are satisfied but the Company is

not

yet entitled to payment. The Company recognized

$2,253

 of contract assets 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 year ended

December 31, 2019.

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.