Revenue Recognition

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

Disaggregated Revenues

Revenues by geographical area and customer type were as follows:



	Three Months Ended March 31, 2020									Three Months Ended March 31, 2019
	Nuclear Operations Group		Nuclear Power Group		Nuclear Services Group		Total			Nuclear Operations Group		Nuclear Power Group		Nuclear Services Group		Total
	(In thousands)
United States:
Government	$	401,066	$	—	$	24,596	$	425,662		$	297,303	$	—	$	24,451	$	321,754
Non-Government	20,841		9,608		11,209		41,658			5,338		9,162		4,353		18,853
	$	421,907	$	9,608	$	35,805	$	467,320		$	302,641	$	9,162	$	28,804	$	340,607
Canada:
Non-Government	$	—	$	74,527	$	960	$	75,487		$	—	$	68,611	$	290	$	68,901
Other:
Non-Government	$	1,868	$	3,782	$	—	$	5,650		$	2,160	$	6,626	$	—	$	8,786
Segment Revenues	$	423,775	$	87,917	$	36,765	548,457			$	304,801	$	84,399	$	29,094	418,294
Adjustments and Eliminations							(6,249		)							(1,840		)
Revenues							$	542,208								$	416,454

Revenues by timing of transfer of goods or services were as follows:



	Three Months Ended March 31, 2020									Three Months Ended March 31, 2019
	Nuclear Operations Group		Nuclear Power Group		Nuclear Services Group		Total			Nuclear Operations Group		Nuclear Power Group		Nuclear Services Group		Total
	(In thousands)
Over time	$	423,739	$	77,185	$	36,765	$	537,689		$	304,733	$	70,661	$	29,094	$	404,488
Point-in-time	36		10,732		—		10,768			68		13,738		—		13,806
Segment Revenues	$	423,775	$	87,917	$	36,765	548,457			$	304,801	$	84,399	$	29,094	418,294
Adjustments and Eliminations							(6,249		)							(1,840		)
Revenues							$	542,208								$	416,454

Revenues by contract type were as follows:



	Three Months Ended March 31, 2020									Three Months Ended March 31, 2019
	Nuclear Operations Group		Nuclear Power Group		Nuclear Services Group		Total			Nuclear Operations Group		Nuclear Power Group		Nuclear Services Group		Total
	(In thousands)
Fixed-Price Incentive Fee	$	284,374	$	492	$	—	$	284,866		$	245,487	$	273	$	—	$	245,760
Firm-Fixed-Price	113,337		70,836		11,637		195,810			39,343		61,998		6,168		107,509
Cost-Plus Fee	25,996		—		22,493		48,489			19,853		—		22,535		42,388
Time-and-Materials	68		16,589		2,635		19,292			118		22,128		391		22,637
Segment Revenues	$	423,775	$	87,917	$	36,765	548,457			$	304,801	$	84,399	$	29,094	418,294
Adjustments and Eliminations							(6,249		)							(1,840		)
Revenues							$	542,208								$	416,454

Performance Obligations

As we progress on our contracts and the underlying performance obligations for which we recognize revenue over time, we refine our estimates of variable consideration and total estimated costs at completion, which impact the overall profitability on our contracts and performance obligations. Changes in these estimates result in the recognition of cumulative catch-up adjustments that impact our revenues and/or costs of contracts. During the three months ended March 31, 2020 and 2019, we recognized net favorable changes in estimates that resulted in increases in revenues of $9.6 million and $4.8 million, respectively.

Contract Assets and Liabilities

We include revenues and related costs incurred, plus accumulated contract costs that exceed amounts invoiced to customers under the terms of the contracts, in Contracts in progress. We include in Advance billings on contracts billings that exceed accumulated contract costs and revenues recognized over time. Amounts that are withheld on our fixed-price incentive fee contracts are classified within Retainages. Certain of these amounts require conditions other than the passage of time to be achieved, with the remaining amounts only requiring the passage of time. Most long-term contracts contain provisions for progress payments. Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled revenues. Changes in Contracts in progress and Advance billings on contracts are primarily driven by differences in the timing of revenue recognition and billings to our customers. During the three months ended March 31, 2020, our unbilled receivables increased $32.1 million primarily as a result of the timing of milestone billings on certain firm-fixed-price contracts within our Nuclear Power Group segment. Our fixed-price incentive fee contracts for our Nuclear Operations Group segment include provisions that result in an increase in retainages on contracts during the first and third quarters of the year, with larger payments made during the second and fourth quarters. Retainages also vary as a result of timing differences between incurring costs and achieving milestones that allow us to recover these amounts.



	March 31,		December 31,
	2020		2019
	(In thousands)
Included in Contracts in progress:
Unbilled receivables	$	397,925	$	365,861
Retainages	$	62,385	$	46,670
Included in Other Assets:
Retainages	$	1,457	$	1,412
Advance billings on contracts	$	80,065	$	75,425

During the three months ended March 31, 2020 and 2019, we recognized $30.2 million and $33.8 million of revenues that were in Advance billings on contracts at December 31, 2019 and 2018, respectively.

Remaining Performance Obligations

Remaining performance obligations represent the dollar amount of revenue we expect to recognize in the future from performance obligations on contracts previously awarded and in progress. Of the March 31, 2020 remaining performance obligations on our contracts with customers, we expect to recognize revenues as follows:



	2020		2021		Thereafter		Total
	(In approximate millions)
Nuclear Operations Group	$	1,116	$	1,043	$	2,123	$	4,282
Nuclear Power Group	183		183		412		778
Nuclear Services Group	34		6		11		51
Total Remaining Performance Obligations	$	1,333	$	1,232	$	2,546	$	5,111