Revenue

12 Months Ended

Dec. 31, 2021

Revenue From Contract With Customer [Abstract]

Revenue

10. REVENUE

The Company’s revenue is derived from contracts for services with federal, state, local and foreign governmental entities and private customers. Revenues are generally derived from the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock.

Performance obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account upon which the Company’s revenue is calculated. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue as the performance obligation is satisfied. Fixed-price contracts, which comprise substantially all of the Company’s revenue, will most often represent a single performance obligation as the promise to transfer the individual services is not separately identifiable from other promises in the contracts and, therefore, not distinct.

The Company’s performance obligations are satisfied over time and revenue is recognized using contract fulfillment costs incurred to date compared to total estimated costs at completion, also known as cost-to-cost, to measure progress towards completion. As the Company’s performance creates an asset that the customer controls, this method provides a faithful depiction of the transfer of an asset to the customer. Generally, the Company has an enforceable right to payment for performance completed to date.

The majority of the Company’s contracts are completed in a year or less. At December 31, 2021, the Company had $551,588 of remaining performance obligations, which the Company refers to as total backlog. Approximately 88% of the Company’s backlog will be completed in 2022 with the remaining balance expected to be completed by 2023.

Transaction price

The transaction price is calculated using the Company’s estimated costs to complete a project. These costs are based on the types of equipment required to perform the specified service, project site conditions, the estimated project duration, seasonality, location and complexity of a project.

The nature of the Company’s contracts gives rise to several types of variable consideration, including pay on quantity dredged for dredging projects and dredging project contract modifications. Estimated pay quantity is the amount of material the Company expects to dredge for which it will receive payment. Estimated quantity to be dredged is calculated using engineering estimates based on current survey data and the Company’s knowledge based on historical project experience.

Revenue by category

Domestically, the Company’s work generally is performed in coastal waterways and deep-water ports. The U.S. dredging market consists of four primary types of work: capital, coastal protection, maintenance and rivers & lakes. Foreign projects typically involve capital work.

The following table sets forth, by type of work, the Company’s contract revenues for the years ended December 31, 2021, 2020 and 2019:

Revenues	2021		2020		2019
Capital—U.S.	$	397,034	$	336,163	$	299,706
Capital—foreign		6,596		25,892		48,619
Coastal protection		169,678		201,361		182,369
Maintenance		132,551		148,767		104,753
Rivers & lakes		20,290		21,418		76,071
Total revenues	$	726,149	$	733,601	$	711,518

The following table sets forth, by type of customer, the Company’s contract revenues for the years ended December 31, 2021, 2020 and 2019:

Revenues	2021		2020		2019
Federal government	$	568,980	$	582,949	$	581,157
State and local government		118,712		85,737		71,398
Private		31,861		39,023		10,344
Foreign		6,596		25,892		48,619
Total revenues	$	726,149	$	733,601	$	711,518

Contract balances

Billings on contracts are generally submitted after verification with the customers of physical progress and are recognized as accounts receivable in the balance sheet. For billings that do not match the timing of revenue recognition, the difference between amounts billed and recognized as revenue is reflected in the balance sheet as either contract revenues in excess of billings or billings in excess of contract revenues. Certain pre-contract and pre-construction costs are capitalized and reflected as contract assets in the balance sheet. Customer advances, deposits and commissions are reflected in the balance sheet as contract liabilities.

Accounts receivable at December 31, 2021 and December 31, 2020 are as follows:

		2021			2020
Completed contracts	$	10,612		$	12,347
Contracts in progress		65,415			21,239
Retainage		7,490			5,968
		83,517			39,554
Allowance for doubtful accounts		(564	)		(564	)
Total accounts receivable—net	$	82,953		$	38,990

The components of contracts in progress at December 31, 2021 and December 31, 2020 are as follows:

		2021			2020
Costs and earnings in excess of billings:
Costs and earnings for contracts in progress	$	270,998		$	199,964
Amounts billed		(240,941	)		(168,569	)
Costs and earnings in excess of billings for contracts in progress		30,057			31,395
Costs and earnings in excess of billings for completed contracts		10,894			2,823
Total contract revenues in excess of billings	$	40,951		$	34,218
Current portion of contract revenues in excess of billings	$	39,844		$	32,106
Long-term contract revenues in excess of billings		1,107			2,112
Total contract revenues in excess of billings	$	40,951		$	34,218
Billings in excess of costs and earnings:
Amounts billed	$	(224,381	)	$	(550,468	)
Costs and earnings for contracts in progress		209,567			517,860
Total billings in excess of contract revenues	$	(14,814	)	$	(32,608	)

At December 31, 2021 and 2020, costs to fulfill contracts with customers recognized as an asset were $5,652 and $10,501, respectively, and are recorded in other current assets and other noncurrent assets. These costs relate to pre-contract and pre-construction activities. During the years ended December 31, 2021 and 2020 the company amortized pre-contract and pre-construction costs of $17,839 and $15,541, respectively.

The Company’s largest domestic customer is the U.S. Army Corps of Engineers (the “Corps”), which has responsibility for federally funded projects related to navigation and flood control of U.S. waterways. In 2021, 2020 and 2019, 78.4%, 79.5% and 81.7%, respectively, of contract revenues were earned from contracts with federal government agencies, including the Corps, as well as other federal entities such as the U.S. Coast Guard and U.S. Navy. During the year ended December 31, 2021 and 2020, respectively, the Company recognized $716 and $616 of revenue related to the use of equipment by a customer working on a federal government contract. At December 31, 2021 and 2020, approximately 68.5% and 42.6% respectively, of accounts receivable, including contract revenues in excess of billings and retainage, were due on contracts with federal government agencies. The Company depends on its ability to continue to obtain federal government contracts, and indirectly, on the amount of federal funding for new and current government dredging projects. Therefore, the Company’s operations can be influenced by the level and timing of federal funding.

The Company derived revenues and gross profit (loss) from foreign project operations for the years ended December 31, 2021, 2020, and 2019, as follows:

	2021			2020			2019
Contract revenues	$	6,596		$	25,892		$	48,619
Costs of contract revenues		(9,281	)		(34,529	)		(66,347	)
Gross profit (loss)	$	(2,685	)	$	(8,637	)	$	(17,728	)

In 2021, 2020 and 2019, foreign revenues were primarily from work done in the Middle East. The majority of the Company’s long-lived assets are marine vessels and related equipment. At any point in time, the Company may employ certain assets outside of the U.S., as needed, to perform work on the Company’s foreign projects. As of December 31, 2021,  long-lived assets located outside of the U.S had no net book value compared to $5,225 at December 31, 2020. Currently our assets outside of the U.S. do not include dredges. Revenue from foreign projects has been concentrated in the Middle East which comprised less than 10% in 2021, 2020 and 2019. At December 31, 2021 and 2020, approximately 9% and 12%, respectively, of total accounts receivable, including retainage and contract revenues in excess of billings, were due on contracts in the Middle East.