Revenue Recognition from Contracts with Customers

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition from Contracts with Customers

Note 9 – Revenue Recognition from Contracts with Customers

The Company’s revenues are primarily generated from regulated tariff-based sales of water and wastewater services and non-regulated operation and maintenance contracts for services on water and wastewater systems owned by others. Revenue from contracts with customers is recognized when control of a promised good or service is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.

The Company’s regulated revenue from contracts with customers is derived from tariff-based sales that result from the obligation to provide water and wastewater services to residential, industrial, commercial, fire-protection and wholesale customers. The Company’s residential customers are billed quarterly while most of the Company’s industrial, commercial, fire-protection and wholesale customers are billed monthly. Payments by customers are due between 15 and 30 days after the invoice date. The Company recognizes revenue as the water and wastewater services are delivered to customers, as well as records unbilled revenues estimated from the last meter reading date to the end of the accounting period utilizing factors such as historical customer data, regional weather indicators and general economic conditions in its service territories. Unearned Revenues and Advance Service Fees include fixed service charge billings in advance of service provided to Tidewater customers and are recognized as service is provided.

Non-regulated service contract revenues consist of base service fees, as well as fees for additional billable services provided to customers. Fees are billed monthly and are due within 30 days after the invoice date. The Company considers the amounts billed to represent the value of these services provided to customers. These contracts expire at various times through June 2030 and contain remaining performance obligations for which the Company expects to recognize revenue in the future. These contracts also contain termination provisions.

Almost all of the amounts included in operating revenues and accounts receivable are from contracts with customers. The Company records its allowance for doubtful accounts based on historical write-offs combined with an evaluation of current economic conditions within its service territories.

The Company’s contracts do not contain any significant financing components.

15

The Company’s operating revenues are comprised of the following:

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Regulated Tariff Sales
Residential	$	20,238		$	19,454		$	37,195		$	36,135
Commercial		4,108			3,649			7,684			7,018
Industrial		2,143			2,175			4,320			4,256
Fire Protection		3,161			3,060			6,265			6,106
Wholesale		3,718			3,827			7,256			7,525
Non-Regulated Contract Operations		3,298			3,076			6,449			5,934
Total Revenue from Contracts with Customers	$	36,666		$	35,241		$	69,169		$	66,974
Other Regulated Revenues		241			124			310			186
Other Non-Regulated Revenues		107			104			213			207
Inter-segment Elimination		(313	)		(192	)		(450	)		(321	)
Total Revenue	$	36,701		$	35,277		$	69,242		$	67,046