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Revenue from contracts with customers
 3 Months Ended
Mar. 31, 2020
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.
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.
Three Months Ended March 31, 2020
Electric

Natural gas distribution

Pipeline

Construction materials and contracting

Construction services

Other

Total

 
(In thousands)
Residential utility sales
$
32,349

$
186,701

$
—

$
—

$
—

$
—

$
219,050

Commercial utility sales
33,587

114,996

—

—

—

—

148,583

Industrial utility sales
10,367

8,521

—

—

—

—

18,888

Other utility sales
1,648

—

—

—

—

—

1,648

Natural gas transportation
—

11,798

27,432

—

—

—

39,230

Natural gas gathering
—

—

2,090

—

—

—

2,090

Natural gas storage
—

—

3,046

—

—

—

3,046

Contracting services
—

—

—

98,401

—

—

98,401

Construction materials
—

—

—

207,910

—

—

207,910

Intrasegment eliminations*
—

—

—

(44,104
)
—

—

(44,104
)
Inside specialty contracting
—

—

—

—

372,209

—

372,209

Outside specialty contracting
—

—

—

—

130,150

—

130,150

Other
8,450

2,498

3,241

—

351

2,991

17,531

Intersegment eliminations
(195
)
(185
)
(25,199
)
(63
)
(2,470
)
(2,973
)
(31,085
)
Revenues from contracts with customers
86,206

324,329

10,610

262,144

500,240

18

1,183,547

Revenues out of scope
(298
)
2,114

45

—

11,965

—

13,826

Total external operating revenues
$
85,908

$
326,443

$
10,655

$
262,144

$
512,205

$
18

$
1,197,373

*
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, 2019
Electric

Natural gas distribution

Pipeline

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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2020

December 31, 2019

Change

Location on Consolidated Balance Sheets
 
(In thousands)
 
Contract assets
$
121,321

$
109,078

$
12,243

Receivables, net
Contract liabilities - current
(153,230
)
(142,768
)
(10,462
)
Accounts payable
Contract liabilities - noncurrent
(81
)
(19
)
(62
)
Noncurrent liabilities - other
Net contract liabilities
$
(31,990
)
$
(33,709
)
$
1,719

 

The Company recognized $89.4 million in revenue for the three months ended March 31, 2020, which was previously included in contract liabilities at December 31, 2019. 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 a net increase in revenues of $19.5 million and $18.7 million for the three months ended March 31, 2020 and 2019, 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 segment include firm transportation and storage contracts with fixed pricing and fixed volumes.
At March 31, 2020, the Company's remaining performance obligations were $2.3 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $1.8 billion within the next 12 months or less; $310.4 million within the next 13 to 24 months; and $245.0 million in 25 months or more.
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 two years, respectively.