Revenue from Contract with Customer

6 Months Ended

Jun. 30, 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 and BVESI have 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 and six months ended June 30, 2020 and 2019, disaggregated revenues from contracts with customers by segment were as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
(dollar in thousands)	2020		2019			2020		2019
Water:
Tariff-based revenues	$	77,264	$	76,876		$	146,518	$	136,451
Surcharges (cost-recovery activities)	962		763			1,696		1,054
Other	491		461			986		920
Water revenues from contracts with customers	78,717		78,100			149,200		138,425
WRAM under-collection (alternative revenue program)	8,357		10,040			9,298		14,438
Total water revenues	87,074		88,140			158,498		152,863
Electric:
Tariff-based revenues	7,384		7,698			17,416		18,964
Surcharges (cost-recovery activities)	178		43			436		97
Electric revenues from contracts with customers	7,562		7,741			17,852		19,061
BRRAM under (over)-collection (alternative revenue program)	117		(333		)	795		(1,024		)
Total electric revenues	7,679		7,408			18,647		18,037
Contracted services:
Water	13,472		14,620			28,173		27,975
Wastewater	13,053		14,479			25,037		27,505
Contracted services revenues from contracts with customers	26,525		29,099			53,210		55,480
Total AWR revenues	$	121,278	$	124,647		$	230,355	$	226,380

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)	June 30, 2020		December 31, 2019
Unbilled receivables	$	10,399	$	10,467
Receivable from the U.S. government	$	64,399	$	64,819
Contract assets	$	20,458	$	15,631
Contract liabilities	$	10,569	$	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 and six months ended June 30, 2020, which were included in contract liabilities at the beginning of the period were $6.7 million and $9.7 million, respectively. Contracted services revenues recognized during the three and six months ended June 30, 2020 from performance obligations satisfied in previous periods were not material.

As of June 30, 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.