Revenue from contracts with customers

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from contracts with customers

Revenue from contracts with customers

Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.

As part of the adoption of ASC 606 - Revenue from Contracts with Customers, the Company elected the practical expedient to not disclose the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period, along with an explanation of when such revenue would be expected to be recognized. This practical expedient was used since the performance obligations are part of contracts with an original duration of one year or less. The Company also elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less.

Disaggregation

In the following table, revenue is disaggregated by the type of customer or service provided. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The table also includes a reconciliation of the disaggregated revenue by reportable segments. For more information on the Company's business segments, see Note 17.

Three Months Ended March 31, 2019	Electric		Natural gas distribution			Pipeline and midstream			Construction materials and contracting			Construction services			Other			Total
	(In thousands)
Residential utility sales	$	36,555	$	200,609		$	—		$	—		$	—		$	—		$	237,164
Commercial utility sales	35,671		121,793			—			—			—			—			157,464
Industrial utility sales	8,884		8,611			—			—			—			—			17,495
Other utility sales	1,799		—			—			—			—			—			1,799
Natural gas transportation	—		11,570			25,058			—			—			—			36,628
Natural gas gathering	—		—			2,121			—			—			—			2,121
Natural gas storage	—		—			2,646			—			—			—			2,646
Contracting services	—		—			—			83,039			—			—			83,039
Construction materials	—		—			—			179,309			—			—			179,309
Intrasegment eliminations*	—		—			—			(35,140		)	—			—			(35,140		)
Inside specialty contracting	—		—			—			—			299,530			—			299,530
Outside specialty contracting	—		—			—			—			107,398			—			107,398
Other	9,121		3,913			2,696			—			17			7,843			23,590
Intersegment eliminations	—		—			(23,955		)	(95		)	(129		)	(7,824		)	(32,003		)
Revenues from contracts with customers	92,030		346,496			8,566			227,113			406,816			19			1,081,040
Revenues out of scope	536		(4,349		)	47			—			13,917			—			10,151
Total external operating revenues	$	92,566	$	342,147		$	8,613		$	227,113		$	420,733		$	19		$	1,091,191

* Intrasegment revenues are presented within the construction materials and contracting segment to highlight the focus on vertical integration as this segment sells materials to both third parties and internal customers. Due to consolidation requirements, these revenues must be eliminated against construction materials to arrive at the external operating revenue total for the segment.

Three Months Ended March 31, 2018	Electric			Natural gas distribution			Pipeline and midstream			Construction materials and contracting			Construction services			Other			Total
	(In thousands)
Residential utility sales	$	35,183		$	192,886		$	—		$	—		$	—		$	—		$	228,069
Commercial utility sales	34,701			116,891			—			—			—			—			151,592
Industrial utility sales	8,770			7,809			—			—			—			—			16,579
Other utility sales	1,836			—			—			—			—			—			1,836
Natural gas transportation	—			11,179			21,818			—			—			—			32,997
Natural gas gathering	—			—			2,270			—			—			—			2,270
Natural gas storage	—			—			3,134			—			—			—			3,134
Contracting services	—			—			—			74,064			—			—			74,064
Construction materials	—			—			—			173,591			—			—			173,591
Intrasegment eliminations*	—			—			—			(34,270		)	—			—			(34,270		)
Inside specialty contracting	—			—			—			—			233,821			—			233,821
Outside specialty contracting	—			—			—			—			87,181			—			87,181
Other	8,252			3,999			3,326			—			(86		)	2,696			18,187
Intersegment eliminations	—			—			(21,759		)	(101		)	(11		)	(2,638		)	(24,509		)
Revenues from contracts with customers	88,742			332,764			8,789			213,284			320,905			58			964,542
Revenues out of scope	(1,338		)	(100		)	44			—			13,145			—			11,751
Total external operating revenues	$	87,404		$	332,664		$	8,833		$	213,284		$	334,050		$	58		$	976,293

* Intrasegment revenues are presented within the construction materials and contracting segment to highlight the focus on vertical integration as this segment sells materials to both third parties and internal customers. Due to consolidation requirements, these revenues must be eliminated against construction materials to arrive at the external operating revenue total for the segment.

Contract balances

The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost‐to‐cost method of accounting. Contracts from contracting services are billed as work progresses in accordance with agreed upon contractual terms. Generally, billing to the customer occurs contemporaneous to revenue recognition. A variance in timing of the billings may result in a contract asset or a contract liability. A contract asset occurs when revenues are recognized under the cost-to-cost measure of progress, which exceeds amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. A contract liability occurs when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation. The changes in contract assets and liabilities were as follows:

	March 31, 2019			December 31, 2018			Change		Location on Consolidated Balance Sheets
	(In thousands)
Contract assets	$	117,036		$	104,239		$	12,797	Receivables, net
Contract liabilities - current	(86,031		)	(93,901		)	7,870		Accounts payable
Contract liabilities - noncurrent	(30		)	(135		)	105		Deferred credits and other liabilities - other
Net contract assets	$	30,975		$	10,203		$	20,772

The Company recognized $56.4 million in revenue for the three months ended March 31, 2019, which was previously included in contract liabilities at December 31, 2018. The Company recognized $52.0 million in revenue for the three months ended March 31, 2018, which was previously included in contract liabilities at December 31, 2017.

The Company recognized a net increase in revenues of $18.7 million and $3.1 million for the three months ended March 31, 2019 and 2018, respectively, from performance obligations satisfied in prior periods.