Revenue from contracts with customers

3 Months Ended

Mar. 31, 2022

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 tables, 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, 2022	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	37,304	$	258,816	$	—	$	—	$	—	$	—	$	296,120
Commercial utility sales	35,600		163,609		—		—		—		—		199,209
Industrial utility sales	10,306		13,024		—		—		—		—		23,330
Other utility sales	1,750		—		—		—		—		—		1,750
Natural gas transportation	—		12,381		31,574		—		—		—		43,955
Natural gas storage	—		—		3,719		—		—		—		3,719
Contracting services	—		—		—		114,267		—		—		114,267
Construction materials	—		—		—		241,732		—		—		241,732
Intrasegment eliminations	—		—		—		(46,033)		—		—		(46,033)
Electrical & mechanical specialty contracting	—		—		—		—		392,808		—		392,808
Transmission & distribution specialty contracting	—		—		—		—		148,466		—		148,466
Other	12,753		2,609		1,709		—		48		4,341		21,460
Intersegment eliminations	(124)		(136)		(25,940)		(130)		(1,059)		(4,341)		(31,730)
Revenues from contracts with customers	97,589		450,303		11,062		309,836		540,263		—		1,409,053
Revenues out of scope	(3,995)		115		58		—		11,328		—		7,506
Total external operating revenues	$	93,594	$	450,418	$	11,120	$	309,836	$	551,591	$	—	$	1,416,559

Three Months Ended March 31, 2021	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	33,436	$	203,137	$	—	$	—	$	—	$	—	$	236,573
Commercial utility sales	32,928		120,052		—		—		—		—		152,980
Industrial utility sales	10,029		8,812		—		—		—		—		18,841
Other utility sales	1,566		—		—		—		—		—		1,566
Natural gas transportation	—		12,452		29,417		—		—		—		41,869
Natural gas storage	—		—		4,029		—		—		—		4,029
Contracting services	—		—		—		96,025		—		—		96,025
Construction materials	—		—		—		216,412		—		—		216,412
Intrasegment eliminations	—		—		—		(46,716)		—		—		(46,716)
Electrical & mechanical specialty contracting	—		—		—		—		355,190		—		355,190
Transmission & distribution specialty contracting	—		—		—		—		151,363		—		151,363
Other	9,773		3,009		2,660		—		36		3,341		18,819
Intersegment eliminations	(136)		(142)		(26,229)		(62)		(1,042)		(3,324)		(30,935)
Revenues from contracts with customers	87,596		347,320		9,877		265,659		505,547		17		1,216,016
Revenues out of scope	(2,923)		2,886		36		—		11,923		—		11,922
Total external operating revenues	$	84,673	$	350,206	$	9,913	$	265,659	$	517,470	$	17	$	1,227,938

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:

	March 31, 2022		December 31, 2021		Change		Location on Consolidated Balance Sheets
	(In thousands)
Contract assets	$	164,622	$	125,742	$	38,880	Receivables, net
Contract liabilities - current	(154,136)		(179,140)		25,004		Accounts payable
Contract liabilities - noncurrent	(40)		(118)		78		Noncurrent liabilities - other
Net contract assets (liabilities)	$	10,446	$	(53,516)	$	63,962

The Company recognized $121.8 million in revenue for the three months ended March 31, 2022, which was previously included in contract liabilities at December 31, 2021. The Company recognized $123.4 million in revenue for the three months ended March 31, 2021, which was previously included in contract liabilities at December 31, 2020.

The Company recognized a net increase in revenues of $23.5 million and $34.3 million for the three months ended March 31, 2022 and 2021, 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 contracts with fixed pricing and fixed volumes. The Company has applied the practical expedient, which 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 contracts included in the remaining performance obligations have weighted average remaining durations of approximately five years.

At March 31, 2022, the Company's remaining performance obligations were $3.1 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $2.4 billion within the next 12 months or less; $311.1 million within the next 13 to 24 months; and $407.2 million in 25 months or more.