Revenue from Contract with Customer

12 Months Ended

Dec. 31, 2020

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 17.

Year ended December 31, 2020	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	122,663	$	476,388	$	—	$	—	$	—	$	—	$	599,051
Commercial utility sales	131,477		277,873		—		—		—		—		409,350
Industrial utility sales	36,744		26,243		—		—		—		—		62,987
Other utility sales	6,634		—		—		—		—		—		6,634
Natural gas transportation	—		45,546		111,686		—		—		—		157,232
Natural gas gathering	—		—		4,865		—		—		—		4,865
Natural gas storage	—		—		14,918		—		—		—		14,918
Contracting services	—		—		—		1,069,665		—		—		1,069,665
Construction materials	—		—		—		1,659,152		—		—		1,659,152
Intrasegment eliminations	—		—		—		(550,815)		—		—		(550,815)
Inside specialty contracting	—		—		—		—		1,397,124		—		1,397,124
Outside specialty contracting	—		—		—		—		649,486		—		649,486
Other	32,452		10,753		12,216		—		1,541		11,903		68,865
Intersegment eliminations	(491)		(534)		(58,531)		(417)		(5,038)		(11,958)		(76,969)
Revenues from contracts with customers	329,479		836,269		85,154		2,177,585		2,043,113		(55)		5,471,545
Revenues out of scope	2,059		11,382		192		—		47,572		—		61,205
Total external operating revenues	$	331,538	$	847,651	$	85,346	$	2,177,585	$	2,090,685	$	(55)	$	5,532,750

Year ended December 31, 2019	Electric		Natural gas distribution		Pipeline		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

Year ended December 31, 2018	Electric		Natural gas distribution		Pipeline		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

Presented in the previous tables are intrasegment revenues 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, 2020		December 31, 2019		Change		Location on Consolidated Balance Sheets
	(In thousands)
Contract assets	$	104,345	$	109,078	$	(4,733)	Receivables, net
Contract liabilities - current	(158,603)		(142,768)		(15,835)		Accounts payable
Contract liabilities - noncurrent	(52)		(19)		(33)		Noncurrent liabilities - other
Net contract liabilities	$	(54,310)	$	(33,709)	$	(20,601)

	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		Noncurrent liabilities - other
Net contract assets (liabilities)	$	(33,709)	$	10,203	$	(43,912)

The Company recognized $138.2 million and $89.0 million in revenue for the years ended December 31, 2020 and 2019, respectively, which was previously included in contract liabilities at December 31, 2019 and 2018, respectively.

The Company recognized a net increase in revenues of $58.8 million and $44.1 million for the years ended December 31, 2020 and 2019, respectively, from performance obligations satisfied in prior periods.

Remaining performance obligations

The remaining performance obligations, also referred to as backlog, at the construction materials and contracting and construction services segments include unrecognized revenues 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 majority of the Company's construction contracts have an original duration of less than two years.

The remaining performance obligations at the pipeline segment include firm transportation and storage contracts with fixed pricing and fixed volumes. The Company has applied the practical expedient that does not require additional disclosures for contracts with an original duration of less than 12 months to certain firm transportation and non-regulated contracts. The Company's firm transportation and firm storage contracts included in the remaining performance obligations have weighted average remaining durations of approximately five and one years, respectively.

At December 31, 2020, 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 or less; $298.8 million within the next 13 to 24 months; and $234.3 million in 25 months or more.