Revenue (Tables)

3 Months Ended

Mar. 31, 2018

Disaggregation of Revenue [Table Text Block]

The following table represents a disaggregation of revenue by type of goods or services for the three months ended March 31, 2018 and 2017, along with the reportable segment for each category:

(in thousands)	Three Months Ended March 31,
	2018		2017⁽¹⁾
Performance Improvement Solutions
System Design and Build	$	7,495	$	7,319
Software		869		456
Training and Consulting Services		1,537		1,895

Nuclear Industry Training and Consulting
Training and Consulting Services		12,994		6,672

Total revenue	$	22,895	$	16,342

⁽¹⁾ Prior period amounts have not been adjusted under the modified retrospective transition method for the adoption of ASC 606.

Contract with Customer, Asset and Liability [Table Text Block]

SDB contracts are typically fixed-priced, and we receive payments based on a billing schedule as established in our contracts. The transaction price for software contracts is generally fixed. Fees for software are normally due in advance of or shortly after delivery of the software. Fees for PCS are normally paid in advance of the service period. For Training and Consulting Services, the customers are generally billed on a regular basis, such as weekly, biweekly or monthly, for services provided. Contract liability, which we classify as billing in excess of revenue earned, relates to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as performance obligations are satisfied.

The following table reflects the balance of contract liabilities and the revenue recognized in the reporting period that was included in the contract liabilities from contracts with customers:

(in thousands)

	March 31, 2018		December 31, 2017
Billings in excess of revenue earned (BIE)	$	12,592	$	14,543
Revenue recognized in the period from amounts included in BIE at the beginning of the period	$	5,115		N/A

For an SDB contract, we generally have two main performance obligations: the training simulator build and PCS. The training simulator build generally includes hardware, software, and labor. We recognize the training simulator build revenue over the construction and installation period using the cost-to-cost input method. In applying the cost-to-cost input method, we use the actual costs incurred to date relative to the total estimated costs to measure the work progress toward the completion of the performance obligation and recognize revenue accordingly. Estimated contract costs are reviewed and revised periodically as the work progresses, and the cumulative effect of any change in estimates is recognized in the period in which the change is identified. Estimated losses are recognized in the period such losses are identified. Uncertainties inherent in the performance of contracts include labor availability and productivity, material costs, change order scope and pricing, software modification and customer acceptance issues. The reliability of these cost estimates is critical to the Company's revenue recognition as a significant change in the estimates can cause the Company's revenue and related margins to change significantly from the amounts estimated in the early stages of the project.

For the three months ended March 31, 2018, the Company did not recognize significant revenue related to performance obligations satisfied in previous periods.