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Revenue from contracts with customers
 9 Months Ended
Sep. 30, 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 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 12 months 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 September 30, 2019
Electric

Natural gas distribution

Pipeline and midstream

Construction materials and contracting

Construction services

Other

Total

 
(In thousands)
Residential utility sales
$
30,376

$
44,902

$
—

$
—

$
—

$
—

$
75,278

Commercial utility sales
36,670

29,148

—

—

—

—

65,818

Industrial utility sales
9,348

4,307

—

—

—

—

13,655

Other utility sales
1,862

—

—

—

—

—

1,862

Natural gas transportation
—

11,410

25,229

—

—

—

36,639

Natural gas gathering
—

—

2,510

—

—

—

2,510

Natural gas storage
—

—

3,044

—

—

—

3,044

Contracting services
—

—

—

461,716

—

—

461,716

Construction materials
—

—

—

638,862

—

—

638,862

Intrasegment eliminations*
—

—

—

(231,078
)
—

—

(231,078
)
Inside specialty contracting
—

—

—

—

317,202

—

317,202

Outside specialty contracting
—

—

—

—

151,285

—

151,285

Other
9,380

2,708

5,534

—

45

2,884

20,551

Intersegment eliminations
—

—

(3,831
)
(124
)
(1,226
)
(2,862
)
(8,043
)
Revenues from contracts with customers
87,636

92,475

32,486

869,376

467,306

22

1,549,301

Revenues out of scope
2,209

1,167

47

—

11,075

—

14,498

Total external operating revenues
$
89,845

$
93,642

$
32,533

$
869,376

$
478,381

$
22

$
1,563,799

*
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 September 30, 2018
Electric

Natural gas distribution

Pipeline and midstream

Construction materials and contracting

Construction services

Other

Total

 
(In thousands)
Residential utility sales
$
31,424

$
43,825

$
—

$
—

$
—

$
—

$
75,249

Commercial utility sales
36,259

28,174

—

—

—

—

64,433

Industrial utility sales
8,738

4,421

—

—

—

—

13,159

Other utility sales
2,056

—

—

—

—

—

2,056

Natural gas transportation
—

10,841

21,400

—

—

—

32,241

Natural gas gathering
—

—

2,320

—

—

—

2,320

Natural gas storage
—

—

2,795

—

—

—

2,795

Contracting services
—

—

—

409,006

—

—

409,006

Construction materials
—

—

—

538,962

—

—

538,962

Intrasegment eliminations*
—

—

—

(204,040
)
—

—

(204,040
)
Inside specialty contracting
—

—

—

—

217,474

—

217,474

Outside specialty contracting
—

—

—

—

100,988

—

100,988

Other
6,158

3,208

5,701

—

15

3,084

18,166

Intersegment eliminations
—

—

(3,187
)
(165
)
(782
)
(3,037
)
(7,171
)
Revenues from contracts with customers
84,635

90,469

29,029

743,763

317,695

47

1,265,638

Revenues out of scope
1,445

1,779

42

—

11,883

—

15,149

Total external operating revenues
$
86,080

$
92,248

$
29,071

$
743,763

$
329,578

$
47

$
1,280,787

*
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.
 

Nine Months Ended September 30, 2019
Electric

Natural gas distribution

Pipeline and midstream

Construction materials and contracting

Construction services

Other

Total

 
(In thousands)
Residential utility sales
$
93,368

$
316,521

$
—

$
—

$
—

$
—

$
409,889

Commercial utility sales
105,572

192,191

—

—

—

—

297,763

Industrial utility sales
27,576

18,495

—

—

—

—

46,071

Other utility sales
5,540

—

—

—

—

—

5,540

Natural gas transportation
—

33,686

75,091

—

—

—

108,777

Natural gas gathering
—

—

7,027

—

—

—

7,027

Natural gas storage
—

—

8,313

—

—

—

8,313

Contracting services
—

—

—

841,881

—

—

841,881

Construction materials
—

—

—

1,262,938

—

—

1,262,938

Intrasegment eliminations*
—

—

—

(412,144
)
—

—

(412,144
)
Inside specialty contracting
—

—

—

—

936,008

—

936,008

Outside specialty contracting
—

—

—

—

391,971

—

391,971

Other
26,918

9,544

14,523

—

70

13,631

64,686

Intersegment eliminations
—

—

(35,298
)
(388
)
(2,076
)
(13,566
)
(51,328
)
Revenues from contracts with customers
258,974

570,437

69,656

1,692,287

1,325,973

65

3,917,392

Revenues out of scope
4,449

(781
)
171

—

37,332

—

41,171

Total external operating revenues
$
263,423

$
569,656

$
69,827

$
1,692,287

$
1,363,305

$
65

$
3,958,563

*
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.
 
Nine Months Ended September 30, 2018
Electric

Natural gas distribution

Pipeline and midstream

Construction materials and contracting

Construction services

Other

Total

 
(In thousands)
Residential utility sales
$
93,359

$
305,399

$
—

$
—

$
—

$
—

$
398,758

Commercial utility sales
103,636

185,885

—

—

—

—

289,521

Industrial utility sales
25,734

17,457

—

—

—

—

43,191

Other utility sales
5,766

—

—

—

—

—

5,766

Natural gas transportation
—

32,104

64,505

—

—

—

96,609

Natural gas gathering
—

—

6,900

—

—

—

6,900

Natural gas storage
—

—

8,563

—

—

—

8,563

Contracting services
—

—

—

730,628

—

—

730,628

Construction materials
—

—

—

1,100,185

—

—

1,100,185

Intrasegment eliminations*
—

—

—

(363,877
)
—

—

(363,877
)
Inside specialty contracting
—

—

—

—

667,664

—

667,664

Outside specialty contracting
—

—

—

—

283,432

—

283,432

Other
22,836

10,821

13,353

—

32

8,536

55,578

Intersegment eliminations
—

—

(31,485
)
(501
)
(1,332
)
(8,343
)
(41,661
)
Revenues from contracts with customers
251,331

551,666

61,836

1,466,435

949,796

193

3,281,257

Revenues out of scope
653

2,786

129

—

36,853

—

40,421

Total external operating revenues
$
251,984

$
554,452

$
61,965

$
1,466,435

$
986,649

$
193

$
3,321,678

*
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:
 
September 30, 2019

December 31, 2018

Change

Location on Consolidated Balance Sheets
 
(In thousands)
 
Contract assets
$
163,437

$
104,239

$
59,198

Receivables, net
Contract liabilities - current
(120,207
)
(93,901
)
(26,306
)
Accounts payable
Contract liabilities - noncurrent
(25
)
(135
)
110

Deferred credits and other liabilities - other
Net contract assets
$
43,205

$
10,203

$
33,002

 

The Company recognized $7.5 million and $86.5 million in revenue for the three and nine months ended September 30, 2019, respectively, which was previously included in contract liabilities at December 31, 2018. The Company recognized $10.3 million and $79.2 million in revenue for the three and nine months ended September 30, 2018, respectively, which was previously included in contract liabilities at December 31, 2017.
The Company recognized a net increase in revenues of $21.8 million and $40.3 million for the three and nine months ended September 30, 2019, respectively, from performance obligations satisfied in prior periods. The Company recognized a net decrease in revenues of $8.7 million and $3.7 million for the three and nine months ended September 30, 2018, respectively, from performance obligations satisfied in prior periods.
Remaining performance obligations
The remaining performance obligations at the construction materials and contracting and construction services segments include unrecognized revenues the Company reasonably expects to be realized which includes projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of
collection. Excluded from remaining performance obligations are potential orders under master service agreements. The remaining performance obligations at the pipeline and midstream segment include firm transportation and storage contracts with fixed pricing and fixed volumes.
At September 30, 2019, the Company's remaining performance obligations were $2.1 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $1.6 billion within the next 12 months; $255.0 million within the next 13 to 24 months; and $249.6 million thereafter.
The majority of the Company's construction contracts have an original duration of less than two years. The Company's firm transportation and firm storage contracts have weighted average remaining durations of approximately five and three years, respectively.