| Disaggregation of Revenue |
The following tables summarize revenue for each of our operating segments, disaggregated by contract type, for the three and six months ended June 30, 2019 and 2018 (in thousands):
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Three Months Ended June 30, 2019 |
|
|
Fabrication |
|
Shipyard |
|
Services |
|
Eliminations |
|
Total |
Contract Type |
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|
|
|
|
|
|
|
|
Fixed-price and unit-rate (1)
|
$ |
22,415 |
|
|
$ |
36,607 |
|
|
$ |
12,668 |
|
|
$ |
(3,232 |
) |
|
$ |
68,458 |
|
T&M (2)
|
— |
|
|
960 |
|
|
8,187 |
|
|
— |
|
|
9,147 |
|
Other |
— |
|
|
— |
|
|
3,210 |
|
|
(359 |
) |
|
2,851 |
|
|
Total |
$ |
22,415 |
|
|
$ |
37,567 |
|
|
$ |
24,065 |
|
|
$ |
(3,591 |
) |
|
$ |
80,456 |
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|
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Three Months Ended June 30, 2018 |
|
|
Fabrication |
|
Shipyard |
|
Services |
|
Eliminations |
|
Total |
Contract Type |
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|
|
|
|
|
|
|
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Fixed-price and unit-rate (1)
|
$ |
9,472 |
|
|
$ |
21,259 |
|
|
$ |
10,576 |
|
|
$ |
(1,042 |
) |
|
$ |
40,265 |
|
T&M (2)
|
— |
|
|
2,361 |
|
|
10,486 |
|
|
— |
|
|
12,847 |
|
Other |
— |
|
|
— |
|
|
1,143 |
|
|
(241 |
) |
|
902 |
|
|
Total |
$ |
9,472 |
|
|
$ |
23,620 |
|
|
$ |
22,205 |
|
|
$ |
(1,283 |
) |
|
$ |
54,014 |
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Six Months Ended June 30, 2019 |
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|
Fabrication |
|
Shipyard |
|
Services |
|
Eliminations |
|
Total |
Contract Type |
|
|
|
|
|
|
|
|
|
Fixed-price and unit-rate (1)
|
$ |
35,046 |
|
|
$ |
70,233 |
|
|
$ |
18,899 |
|
|
$ |
(3,846 |
) |
|
$ |
120,332 |
|
T&M (2)
|
— |
|
|
3,921 |
|
|
18,809 |
|
|
— |
|
|
22,730 |
|
Other |
— |
|
|
— |
|
|
5,959 |
|
|
(960 |
) |
|
4,999 |
|
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Total |
$ |
35,046 |
|
|
$ |
74,154 |
|
|
$ |
43,667 |
|
|
$ |
(4,806 |
) |
|
$ |
148,061 |
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|
Six Months Ended June 30, 2018 |
|
|
Fabrication |
|
Shipyard |
|
Services |
|
Eliminations |
|
Total |
Contract Type |
|
|
|
|
|
|
|
|
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Fixed-price and unit-rate (1)
|
$ |
26,815 |
|
|
$ |
38,481 |
|
|
$ |
20,866 |
|
|
$ |
(1,495 |
) |
|
$ |
84,667 |
|
T&M (2)
|
— |
|
|
3,704 |
|
|
21,071 |
|
|
— |
|
|
24,775 |
|
Other |
— |
|
|
— |
|
|
2,138 |
|
|
(276 |
) |
|
1,862 |
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Total |
$ |
26,815 |
|
|
$ |
42,185 |
|
|
$ |
44,075 |
|
|
$ |
(1,771 |
) |
|
$ |
111,304 |
|
____________
(1) Revenue is recognized as the contract is progressed over time.
(2) Revenue is recognized at contracted rates when the work is performed and costs are incurred.
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| Revenue, Remaining Performance Obligation |
A summary of our remaining performance obligations by operating segment at June 30, 2019, is as follows (in thousands).
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Segment |
|
Performance Obligations |
Fabrication |
|
$ |
53,496 |
|
Shipyard (1)
|
|
388,239 |
|
Services |
|
12,787 |
|
Total |
|
$ |
454,522 |
|
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|
_____________
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(1) |
Amount excludes approximately $21.9 million of remaining performance obligations related to contracts for the construction of two MPSVs that are subject to dispute pursuant to a termination notice from our customer. See Note 5 for further discussion of these contracts.
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We expect to recognize revenue for our remaining performance obligations at June 30, 2019, in the following periods (in thousands):
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Year |
|
Performance Obligations |
Remainder of 2019 |
|
$ |
146,150 |
|
2020 |
|
205,651 |
|
2021 |
|
96,481 |
|
Thereafter |
|
6,240 |
|
Total |
|
$ |
454,522 |
|
|
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| Contract with Customer, Asset and Liability |
Contract assets and contract liabilities included in our Balance Sheet at June 30, 2019 and December 31, 2018, are as follows (in thousands):
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June 30, |
|
December 31, |
|
2019 |
|
2018 |
Contract assets |
$ |
51,334 |
|
|
$ |
29,982 |
|
Contract liabilities (1), (2), (3)
|
(13,823 |
) |
|
(16,845 |
) |
Contracts in progress, net |
$ |
37,511 |
|
|
$ |
13,137 |
|
______________
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(1) |
The decrease in contract liabilities compared to December 31, 2018, was primarily due to the unwind of advance payments on a project in our Fabrication Division, offset partially be an increase in advance payments on two projects in our Shipyard Division.
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(2) |
Revenue recognized during the three months ended June 30, 2019 and 2018 related to amounts included in our contract liabilities balance at March 31, 2019 and 2018, was $7.6 million and $4.1 million respectively. Revenue recognized during the six months ended June 30, 2019 and 2018 related to amounts included in our contract liabilities balance at December 31, 2018 and 2017, was $13.9 million and $4.9 million, respectively.
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(3) |
Contract liabilities at June 30, 2019 and December 31, 2018, includes accrued contract losses of $2.0 million and $2.4 million, respectively. See "Project Changes in Estimates" below for further discussion of our accrued contract losses.
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