Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2023

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.

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.

Changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. The Company recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated. Change orders and claims are negotiated in the normal course of business and represent management’s estimates of additional contract revenues that have been earned and are probable of collection.

The Company received notification from a customer on a large project with a contract that was billed on a time and materials basis with no stated maximum price, that it is withholding payment of approximately $31.0 million on remaining outstanding billings, including retention. The Company believes it has substantial defenses against these claims based upon the terms of the contract and the Company's belief that it has performed under the terms of the contract. The Company believes collection of the remaining outstanding billings, including retention is probable and, as a result, the Company has recognized the revenue from this project in its results. However, there is uncertainty surrounding this matter, including the potential long-term nature of dispute resolution, the Company filing a lien on the property and the broad range of possible consideration amounts as a result of negotiations and potential litigation to resolve the dispute.

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 18.

Year ended December 31, 2023	Electric		Natural gas distribution		Pipeline		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	136,274	$	724,600	$	—	$	—	$	—	$	860,874
Commercial utility sales	170,321		442,507		—		—		—		612,828
Industrial utility sales	43,063		45,205		—		—		—		88,268
Other utility sales	7,270		—		—		—		—		7,270
Natural gas transportation	—		52,465		145,297		—		—		197,762
Natural gas storage	—		—		18,254		—		—		18,254
Electrical & mechanical specialty contracting	—		—		—		2,125,536		—		2,125,536
Transmission & distribution specialty contracting	—		—		—		683,342		—		683,342
Other	54,508		15,141		13,874		173		7,941		91,637
Intersegment eliminations	(274)		(416)		(62,540)		(143)		(7,941)		(71,314)
Revenues from contracts with customers	411,162		1,279,502		114,885		2,808,908		—		4,614,457
Other revenues	(10,261)		7,619		187		45,338		—		42,883
Total external operating revenues	$	400,901	$	1,287,121	$	115,072	$	2,854,246	$	—	$	4,657,340

Year ended December 31, 2022	Electric		Natural gas distribution		Pipeline		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	138,634	$	718,191	$	—	$	—	$	—	$	856,825
Commercial utility sales	146,182		453,802		—		—		—		599,984
Industrial utility sales	43,766		41,710		—		—		—		85,476
Other utility sales	7,597		—		—		—		—		7,597
Natural gas transportation	—		48,886		129,290		—		—		178,176
Natural gas storage	—		—		14,583		—		—		14,583
Electrical & mechanical specialty contracting	—		—		—		1,988,729		—		1,988,729
Transmission & distribution specialty contracting	—		—		—		662,705		—		662,705
Other	45,608		13,617		11,450		436		5,840		76,951
Intersegment eliminations	(137)		(274)		(58,884)		(4,627)		(5,840)		(69,762)
Revenues from contracts with customers	381,650		1,275,932		96,439		2,647,243		—		4,401,264
Other revenues	(4,714)		(2,402)		256		47,380		—		40,520
Total external operating revenues	$	376,936	$	1,273,530	$	96,695	$	2,694,623	$	—	$	4,441,784

Year ended December 31, 2021	Electric		Natural gas distribution		Pipeline		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	126,841	$	544,721	$	—	$	—	$	—	$	671,562
Commercial utility sales	137,556		328,285		—		—		—		465,841
Industrial utility sales	41,757		30,964		—		—		—		72,721
Other utility sales	7,051		—		—		—		—		7,051
Natural gas transportation	—		48,408		114,001		—		—		162,409
Natural gas storage	—		—		14,680		—		—		14,680
Electrical & mechanical specialty contracting	—		—		—		1,324,419		—		1,324,419
Transmission & distribution specialty contracting	—		—		—		677,074		—		677,074
Other	42,902		10,567		13,667		557		4,606		72,299
Intersegment eliminations	(170)		(300)		(59,470)		(1,403)		(4,522)		(65,865)
Revenues from contracts with customers	355,937		962,645		82,878		2,000,647		84		3,402,191
Other revenues	(6,525)		8,995		188		49,587		—		52,245
Total external operating revenues	$	349,412	$	971,640	$	83,066	$	2,050,234	$	84	$	3,454,436

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, 2023		December 31, 2022		Change		Location on Consolidated Balance Sheets
	(In thousands)
Contract assets	$	158,861	$	154,144	$	4,717	Receivables, net
Contract liabilities - current	(202,144)		(168,361)		(33,783)		Accounts payable
Contract liabilities - noncurrent	(291)		(6)		(285)		Noncurrent liabilities - other
Net contract liabilities	$	(43,574)	$	(14,223)	$	(29,351)

	December 31, 2022		December 31, 2021		Change		Location on Consolidated Balance Sheets
	(In thousands)
Contract assets	$	154,144	$	103,737	$	50,407	Receivables, net
Contract liabilities - current	(168,361)		(146,792)		(21,569)		Accounts payable
Contract liabilities - noncurrent	(6)		(118)		112		Noncurrent liabilities - other
Net contract liabilities	$	(14,223)	$	(43,173)	$	28,950

The Company recognized $167.7 million and $143.6 million in revenue for the years ended December 31, 2023 and 2022, respectively, which was previously included in contract liabilities at December 31, 2022 and 2021, respectively.

The Company recognized a net increase in revenues of $45.7 million and $46.9 million for the years ended December 31, 2023 and 2022, respectively, from performance obligations satisfied in prior periods.

Remaining performance obligations

The remaining performance obligations, also referred to as backlog, at the construction services segment 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 storage contracts included in the remaining performance obligations have weighted average remaining durations of less than five years and two years, respectively.

At December 31, 2023, the Company's remaining performance obligations were $2.6 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; $471.5 million within the next 13 to 24 months; and $529.2 million in 25 months or more.