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Revenue from contracts with customers
 12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue from contracts from 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 16.
Year ended December 31, 2019
Electric

Natural gas distribution

Pipeline and midstream

Construction materials and contracting

Construction services

Other

Total

 
(In thousands)
Residential utility sales
$
125,369

$
483,452

$
—

$
—

$
—

$
—

$
608,821

Commercial utility sales
141,596

296,835

—

—

—

—

438,431

Industrial utility sales
37,765

26,895

—

—

—

—

64,660

Other utility sales
7,408

—

—

—

—

—

7,408

Natural gas transportation
—

45,449

101,665

—

—

—

147,114

Natural gas gathering
—

—

9,164

—

—

—

9,164

Natural gas storage
—

—

11,708

—

—

—

11,708

Contracting services
—

—

—

1,088,633

—

—

1,088,633

Construction materials
—

—

—

1,627,833

—

—

1,627,833

Intrasegment eliminations*
—

—

—

(525,749
)
—

—

(525,749
)
Inside specialty contracting
—

—

—

—

1,266,196

—

1,266,196

Outside specialty contracting
—

—

—

—

531,882

—

531,882

Other
35,574

12,726

17,687

—

131

16,551

82,669

Intersegment eliminations
—

—

(56,252
)
(1,066
)
(3,370
)
(16,461
)
(77,149
)
Revenues from contracts with customers
347,712

865,357

83,972

2,189,651

1,794,839

90

5,281,621

Revenues out of scope
4,013

(135
)
220

—

51,057

—

55,155

Total external operating revenues
$
351,725

$
865,222

$
84,192

$
2,189,651

$
1,845,896

$
90

$
5,336,776

*
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.
 

Year ended December 31, 2018
Electric

Natural gas distribution

Pipeline and midstream

Construction materials and contracting

Construction services

Other

Total

 
(In thousands)
Residential utility sales
$
121,477

$
457,959

$
—

$
—

$
—

$
—

$
579,436

Commercial utility sales
136,236

276,716

—

—

—

—

412,952

Industrial utility sales
34,353

24,603

—

—

—

—

58,956

Other utility sales
7,556

—

—

—

—

—

7,556

Natural gas transportation
—

43,238

89,159

—

—

—

132,397

Natural gas gathering
—

—

9,159

—

—

—

9,159

Natural gas storage
—

—

11,543

—

—

—

11,543

Contracting services
—

—

—

968,755

—

—

968,755

Construction materials
—

—

—

1,423,068

—

—

1,423,068

Intrasegment eliminations*
—

—

—

(465,969
)
—

—

(465,969
)
Inside specialty contracting
—

—

—

—

926,875

—

926,875

Outside specialty contracting
—

—

—

—

392,544

—

392,544

Other
31,568

14,579

18,865

—

525

11,259

76,796

Intersegment eliminations
—

—

(50,905
)
(669
)
(1,681
)
(11,052
)
(64,307
)
Revenues from contracts with customers
331,190

817,095

77,821

1,925,185

1,318,263

207

4,469,761

Revenues out of scope
3,933

6,152

197

—

51,509

—

61,791

Total external operating revenues
$
335,123

$
823,247

$
78,018

$
1,925,185

$
1,369,772

$
207

$
4,531,552

*
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:
 
December 31, 2019

December 31, 2018

Change

Location on Consolidated Balance Sheets
 
(In thousands)
 
 
Contract assets
$
109,078

$
104,239

$
4,839

Receivables, net
Contract liabilities - current
(142,768
)
(93,901
)
(48,867
)
Accounts payable
Contract liabilities - noncurrent
(19
)
(135
)
116

Deferred credits and other liabilities - other
Net contract assets (liabilities)
$
(33,709
)
$
10,203

$
(43,912
)
 

 
December 31, 2018

December 31, 2017

Change

Location on Consolidated Balance Sheets
 
(In thousands)
 
 
Contract assets
$
104,239

$
109,540

$
(5,301
)
Receivables, net
Contract liabilities - current
(93,901
)
(84,123
)
(9,778
)
Accounts payable
Contract liabilities - noncurrent
(135
)
—

(135
)
Deferred credits and other liabilities - other
Net contract assets
$
10,203

$
25,417

$
(15,214
)
 

The Company recognized $89.0 million and $78.6 million in revenue for the years ended December 31, 2019 and 2018, respectively, which was previously included in contract liabilities at December 31, 2018 and 2017, respectively.
The Company recognized a net increase in revenues of $44.1 million and $36.7 million for the years ended December 31, 2019 and 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, also referred to as backlog, that the Company reasonably expects to be realized. These unrecognized revenues can include: 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 December 31, 2019, the Company's remaining performance obligations were $2.0 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $1.5 billion within the next 12 months or less; $229.4 million within the next 13 to 24 months; and $259.3 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.