Revenue from Contract with Customer

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

Revenues

Most of Registrant's revenues are derived from contracts with customers, including tariff-based revenues from its regulated utilities. ASUS's 50-year firm fixed-price contracts with the U.S. government are considered service concession arrangements under ASC 853 Service Concession Arrangements. Accordingly, the services under these contracts are accounted for under Topic 606 Revenue from Contracts with Customers and the water and/or wastewater systems are not recorded as Property, Plant and Equipment on Registrant’s balance sheet.

Although GSWC has a diversified base of residential, commercial, industrial and other customers, revenues derived from residential and commercial customers generally account for approximately 90% of total water and electric revenues. The vast majority of ASUS's revenues are from the U.S. government. For the three months ended March 31, 2020 and 2019, disaggregated revenues from contracts with customers by segment were as follows:

	Three Months Ended March 31,
(dollar in thousands)	2020		2019
Water:
Tariff-based revenues	$	69,254	$	59,575
Surcharges (cost-recovery activities)	734		291
Other	495		459
Water revenues from contracts with customers	70,483		60,325
WRAM under (over)-collection (alternative revenue program)	941		4,398
Total water revenues	71,424		64,723
Electric:
Tariff-based revenues	10,032		11,266
Surcharges (cost-recovery activities)	258		54
Electric revenues from contracts with customers	10,290		11,320
BRRAM under (over)-collection (alternative revenue program)	678		(691		)
Total electric revenues	10,968		10,629
Contracted services:
Water	14,701		13,355
Wastewater	11,984		13,026
Contracted services revenues from contracts with customers	26,685		26,381
Total revenues	$	109,077	$	101,733

The opening and closing balances of the receivable from the U.S. government, contract assets and contract liabilities from contracts with customers, which related entirely to ASUS, were as follows:    

(dollar in thousands)	March 31, 2020		December 31, 2019
Unbilled receivables	$	10,259	$	10,467
Receivable from the U.S. government	$	63,619	$	64,819
Contract assets	$	19,843	$	15,631
Contract liabilities	$	10,675	$	11,167

Contract Assets - Contract assets are those of ASUS and consist of unbilled revenues recognized from work-in-progress construction projects, where the right to payment is conditional on something other than the passage of time. The classification of this asset as current or noncurrent is based on the timing of when ASUS expects to bill these amounts.

Contract Liabilities - Contract liabilities are those of ASUS and consist of billings in excess of revenue recognized. The classification of this liability as current or noncurrent is based on the timing of when ASUS expects to recognize revenue.

Revenue for the three months ended March 31, 2020, which were included in contract liabilities at the beginning of the period were $7.6 million. Contracted services revenues recognized during the three months ended March 31, 2020 from performance obligations satisfied in previous periods were not material.

As of March 31, 2020, Registrant's aggregate remaining performance obligations, which are entirely for the contracted services segment, were $3.2 billion. Registrant expects to recognize revenue on these remaining performance obligations over the remaining term of each of the 50-year contracts, which range from 34 to 48 years. Each of the contracts with the U.S. government is subject to termination, in whole or in part, prior to the end of its 50-year term for convenience of the U.S. government.