Revenue from contracts with customers

9 Months Ended

Sep. 30, 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 September 30, 2022	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	36,981	$	64,074	$	—	$	—	$	—	$	—	$	101,055
Commercial utility sales	38,785		43,734		—		—		—		—		82,519
Industrial utility sales	10,838		7,209		—		—		—		—		18,047
Other utility sales	2,002		—		—		—		—		—		2,002
Natural gas transportation	—		11,910		32,144		—		—		—		44,054
Natural gas storage	—		—		3,595		—		—		—		3,595
Contracting services	—		—		—		492,207		—		—		492,207
Construction materials	—		—		—		742,982		—		—		742,982
Intrasegment eliminations	—		—		—		(259,761)		—		—		(259,761)
Electrical & mechanical specialty contracting	—		—		—		—		543,717		—		543,717
Transmission & distribution specialty contracting	—		—		—		—		181,550		—		181,550
Other	10,758		3,494		3,815		—		200		4,438		22,705
Intersegment eliminations	(124)		(139)		(3,595)		(343)		(2,229)		(4,438)		(10,868)
Revenues from contracts with customers	99,240		130,282		35,959		975,085		723,238		—		1,963,804
Other revenues	(47)		1,792		86		—		11,571		—		13,402
Total external operating revenues	$	99,193	$	132,074	$	36,045	$	975,085	$	734,809	$	—	$	1,977,206

Three Months Ended September 30, 2021	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	36,412	$	55,284	$	—	$	—	$	—	$	—	$	91,696
Commercial utility sales	39,033		35,338		—		—		—		—		74,371
Industrial utility sales	10,495		5,395		—		—		—		—		15,890
Other utility sales	1,993		—		—		—		—		—		1,993
Natural gas transportation	—		11,812		28,058		—		—		—		39,870
Natural gas storage	—		—		3,483		—		—		—		3,483
Contracting services	—		—		—		415,106		—		—		415,106
Construction materials	—		—		—		617,823		—		—		617,823
Intrasegment eliminations	—		—		—		(201,630)		—		—		(201,630)
Electrical & mechanical specialty contracting	—		—		—		—		317,238		—		317,238
Transmission & distribution specialty contracting	—		—		—		—		185,842		—		185,842
Other	12,589		2,110		3,290		—		75		3,423		21,487
Intersegment eliminations	(136)		(142)		(3,908)		(110)		(289)		(3,398)		(7,983)
Revenues from contracts with customers	100,386		109,797		30,923		831,189		502,866		25		1,575,186
Other revenues	(1,456)		581		45		—		11,657		—		10,827
Total external operating revenues	$	98,930	$	110,378	$	30,968	$	831,189	$	514,523	$	25	$	1,586,013

Nine Months Ended September 30, 2022	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	103,648	$	439,639	$	—	$	—	$	—	$	—	$	543,287
Commercial utility sales	108,400		279,697		—		—		—		—		388,097
Industrial utility sales	32,067		29,242		—		—		—		—		61,309
Other utility sales	5,632		—		—		—		—		—		5,632
Natural gas transportation	—		35,747		95,685		—		—		—		131,432
Natural gas storage	—		—		10,210		—		—		—		10,210
Contracting services	—		—		—		937,156		—		—		937,156
Construction materials	—		—		—		1,535,077		—		—		1,535,077
Intrasegment eliminations	—		—		—		(475,026)		—		—		(475,026)
Electrical & mechanical specialty contracting	—		—		—		—		1,443,758		—		1,443,758
Transmission & distribution specialty contracting	—		—		—		—		496,190		—		496,190
Other	33,727		9,854		8,200		—		357		13,168		65,306
Intersegment eliminations	(371)		(416)		(37,328)		(674)		(5,090)		(13,168)		(57,047)
Revenues from contracts with customers	283,103		793,763		76,767		1,996,533		1,935,215		—		5,085,381
Other revenues	(4,854)		(831)		210		—		34,780		—		29,305
Total external operating revenues	$	278,249	$	792,932	$	76,977	$	1,996,533	$	1,969,995	$	—	$	5,114,686

Nine Months Ended September 30, 2021	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	99,106	$	341,901	$	—	$	—	$	—	$	—	$	441,007
Commercial utility sales	105,795		203,002		—		—		—		—		308,797
Industrial utility sales	30,878		20,387		—		—		—		—		51,265
Other utility sales	5,384		—		—		—		—		—		5,384
Natural gas transportation	—		35,715		85,160		—		—		—		120,875
Natural gas storage	—		—		10,606		—		—		—		10,606
Contracting services	—		—		—		791,964		—		—		791,964
Construction materials	—		—		—		1,332,997		—		—		1,332,997
Intrasegment eliminations	—		—		—		(394,126)		—		—		(394,126)
Electrical & mechanical specialty contracting	—		—		—		—		1,020,130		—		1,020,130
Transmission & distribution specialty contracting	—		—		—		—		502,328		—		502,328
Other	31,827		7,913		10,760		—		168		10,152		60,820
Intersegment eliminations	(407)		(425)		(38,000)		(314)		(2,128)		(10,082)		(51,356)
Revenues from contracts with customers	272,583		608,493		68,526		1,730,521		1,520,498		70		4,200,691
Other revenues	(5,329)		5,880		127		—		36,239		—		36,917
Total external operating revenues	$	267,254	$	614,373	$	68,653	$	1,730,521	$	1,556,737	$	70	$	4,237,608

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 for construction work 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, 2022		December 31, 2021		Change		Location on Consolidated Balance Sheets
	(In thousands)
Contract assets	$	265,585	$	125,742	$	139,843	Receivables, net
Contract liabilities - current	(216,439)		(179,140)		(37,299)		Accounts payable
Contract liabilities - noncurrent	(12)		(118)		106		Noncurrent liabilities - other
Net contract assets (liabilities)	$	49,134	$	(53,516)	$	102,650

The Company recognized $11.2 million and $147.9 million in revenue for the three and nine months ended September 30, 2022, respectively, which was previously included in contract liabilities at December 31, 2021. The Company recognized $7.1 million and $152.4 million in revenue for the three and nine months ended September 30, 2021, respectively, which was previously included in contract liabilities at December 31, 2020.

The Company recognized a net increase in revenues of $14.5 million and $54.1 million for the three and nine months ended September 30, 2022, respectively, from performance obligations satisfied in prior periods. The company recognized a net increase in revenues of $19.2 million and $63.3 million for the three and nine months ended September 30, 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 less than five years.

At September 30, 2022, the Company's remaining performance obligations were $3.3 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $2.6 billion within the next 12 months or less; $369.7 million within the next 13 to 24 months; and $418.1 million in 25 months or more.