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Revenue
 3 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue
Note 3 – Revenue
The following information about the Company’s revenues is presented by segment. Southwest encompasses the natural gas operations segment and Centuri encompasses the utility infrastructure services segment.
Natural Gas Operations Segment:
Gas operating revenues on the Condensed Consolidated Statements of Income of both the Company and Southwest include revenue from contracts with customers, which is shown below, disaggregated by customer type, and various categories of revenue:
 
Three Months Ended
March 31,
 
Twelve Months Ended
March 31,
(Thousands of dollars)
2020
 
2019
 
2020
 
2019
Residential
$
378,555

 
$
417,228

 
$
934,115

 
$
959,837

Small commercial
82,463

 
89,610

 
241,970

 
256,750

Large commercial
12,667

 
13,962

 
47,640

 
51,714

Industrial/other
6,702

 
6,478

 
22,298

 
23,457

Transportation
24,406

 
24,902

 
91,884

 
87,838

Revenue from contracts with customers
504,793

 
552,180

 
1,337,907

 
1,379,596

Alternative revenue program revenues (deferrals)
(3,765
)
 
(34,545
)
 
5,668

 
(15,775
)
Other revenues
1,799

 
3,042

 
7,514

 
20,271

Total Gas operating revenues
$
502,827

 
$
520,677

 
$
1,351,089

 
$
1,384,092

Utility Infrastructure Services Segment:
The following tables display Centuri’s revenue, reflected as Utility infrastructure services revenues on the Condensed Consolidated Statements of Income of the Company, representing revenue from contracts with customers disaggregated by service and contract types:
 
Three Months Ended
March 31,
 
Twelve Months Ended
March 31,
(Thousands of dollars)
2020
 
2019
 
2020
 
2019
Service Types:
 
 
 
 
 
 
 
Gas infrastructure services
$
217,709

 
$
197,893

 
$
1,258,790

 
$
1,128,048

Electric power infrastructure services
72,320

 
52,301

 
267,736

 
79,528

Other
43,464

 
62,668

 
245,083

 
367,554

Total Utility infrastructure services revenues
$
333,493

 
$
312,862

 
$
1,771,609

 
$
1,575,130

 
Three Months Ended
March 31,
 
Twelve Months Ended
March 31,
(Thousands of dollars)
2020
 
2019
 
2020
 
2019
Contract Types:
 
 
 
 
 
 
 
Master services agreement
$
263,545

 
$
235,655

 
$
1,411,267

 
$
1,143,603

Bid contract
69,948

 
77,207

 
360,342

 
431,527

Total Utility infrastructure services revenues
$
333,493

 
$
312,862

 
$
1,771,609

 
$
1,575,130

 
 
 
 
 
 
 
 
Unit price contracts
$
243,136

 
$
235,686

 
$
1,387,706

 
$
1,296,783

Fixed price contracts
27,545

 
38,538

 
101,931

 
130,295

Time and materials contracts
62,812

 
38,638

 
281,972

 
148,052

Total Utility infrastructure services revenues
$
333,493

 
$
312,862

 
$
1,771,609

 
$
1,575,130



The following table provides information about contracts receivable and revenue earned on contracts in progress in excess of billings (contract asset), which are both included within Accounts receivable, net of allowances, as well as amounts billed in excess of revenue earned on contracts (contract liability), which are included in Other current liabilities as of March 31, 2020 and December 31, 2019 on the Company’s Condensed Consolidated Balance Sheets:
(Thousands of dollars)
March 31, 2020
 
December 31, 2019
Contracts receivable, net
$
174,228

 
$
223,904

Revenue earned on contracts in progress in excess of billings
99,967

 
99,399

Amounts billed in excess of revenue earned on contracts
4,716

 
4,525


The revenue earned on contracts in progress in excess of billings (contract asset) primarily relates to Centuri’s rights to consideration for work completed but not billed and/or approved for billing at the reporting date. These contract assets are transferred to contracts receivable when the rights become unconditional. The amounts billed in excess of revenue earned (contract liability) primarily relate to the advance consideration received from customers for which work has not yet been completed. The change in this contract liability balance from December 31, 2019 to March 31, 2020 is due to revenue recognized of $4.5 million that was included in this item as of January 1, 2020, after which time it became earned and the balance was reduced, and to increases due to cash received, net of revenue recognized during the period related to contracts that commenced during the period.
For contracts that have an original duration of one year or less, Centuri uses the practical expedient applicable to such contracts and does not consider/compute an interest component based on the time value of money. Further, because of the short duration of these contracts, Centuri has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize the revenue.
As of March 31, 2020, Centuri had 23 contracts with an original duration of more than one year. The aggregate amount of the transaction price allocated to the unsatisfied performance obligations of these contracts as of March 31, 2020 was $68.2 million. Centuri expects to recognize the remaining performance obligations over approximately the next two years; however, the timing of that recognition is largely within the control of the customer, including when the necessary equipment and materials required to complete the work are provided by the customer.
Utility infrastructure services contracts receivable consists of the following:
(Thousands of dollars)
March 31, 2020
 
December 31, 2019
Billed on completed contracts and contracts in progress
$
169,023

 
$
216,268

Other receivables
5,644

 
8,456

Contracts receivable, gross
174,667

 
224,724

Allowance for doubtful accounts
(439
)
 
(820
)
Contracts receivable, net
$
174,228

 
$
223,904