| Disaggregation of Revenue |
The following tables summarize revenue for each of our operating segments, disaggregated by contract type, for the three and nine months ended September 30, 2019 and 2018 (in thousands):
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Three Months Ended September 30, 2019 |
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|
Fabrication |
|
Shipyard |
|
Services |
|
Eliminations |
|
Total |
Contract Type |
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|
|
|
|
|
|
|
|
Fixed-price and unit-rate (1)
|
$ |
19,474 |
|
|
$ |
38,128 |
|
|
$ |
6,770 |
|
|
$ |
(65 |
) |
|
$ |
64,307 |
|
T&M (2)
|
— |
|
|
1,308 |
|
|
9,442 |
|
|
— |
|
|
10,750 |
|
Other |
— |
|
|
— |
|
|
1,295 |
|
|
(550 |
) |
|
745 |
|
|
Total |
$ |
19,474 |
|
|
$ |
39,436 |
|
|
$ |
17,507 |
|
|
$ |
(615 |
) |
|
$ |
75,802 |
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|
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Three Months Ended September 30, 2018 |
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|
Fabrication |
|
Shipyard |
|
Services |
|
Eliminations |
|
Total |
Contract Type |
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|
|
|
|
|
|
|
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Fixed-price and unit-rate (1)
|
$ |
3,382 |
|
|
$ |
23,635 |
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|
$ |
10,422 |
|
|
$ |
(494 |
) |
|
$ |
36,945 |
|
T&M (2)
|
— |
|
|
857 |
|
|
10,424 |
|
|
— |
|
|
11,281 |
|
Other |
— |
|
|
— |
|
|
1,771 |
|
|
(285 |
) |
|
1,486 |
|
|
Total |
$ |
3,382 |
|
|
$ |
24,492 |
|
|
$ |
22,617 |
|
|
$ |
(779 |
) |
|
$ |
49,712 |
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Nine Months Ended September 30, 2019 |
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|
Fabrication |
|
Shipyard |
|
Services |
|
Eliminations |
|
Total |
Contract Type |
|
|
|
|
|
|
|
|
|
Fixed-price and unit-rate (1)
|
$ |
54,520 |
|
|
$ |
108,361 |
|
|
$ |
23,517 |
|
|
$ |
(4,311 |
) |
|
$ |
182,087 |
|
T&M (2)
|
— |
|
|
5,229 |
|
|
30,403 |
|
|
— |
|
|
35,632 |
|
Other |
— |
|
|
— |
|
|
7,254 |
|
|
(1,110 |
) |
|
6,144 |
|
|
Total |
$ |
54,520 |
|
|
$ |
113,590 |
|
|
$ |
61,174 |
|
|
$ |
(5,421 |
) |
|
$ |
223,863 |
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Nine Months Ended September 30, 2018 |
|
|
Fabrication |
|
Shipyard |
|
Services |
|
Eliminations |
|
Total |
Contract Type |
|
|
|
|
|
|
|
|
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Fixed-price and unit-rate (1)
|
$ |
30,197 |
|
|
$ |
62,116 |
|
|
$ |
31,288 |
|
|
$ |
(1,989 |
) |
|
$ |
121,612 |
|
T&M (2)
|
— |
|
|
4,561 |
|
|
31,495 |
|
|
— |
|
|
36,056 |
|
Other |
— |
|
|
— |
|
|
3,909 |
|
|
(561 |
) |
|
3,348 |
|
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Total |
$ |
30,197 |
|
|
$ |
66,677 |
|
|
$ |
66,692 |
|
|
$ |
(2,550 |
) |
|
$ |
161,016 |
|
____________
(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 September 30, 2019, is as follows (in thousands).
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Segment |
|
Performance Obligations |
Fabrication |
|
$ |
39,894 |
|
Shipyard (1)
|
|
384,852 |
|
Services |
|
15,189 |
|
Total |
|
$ |
439,935 |
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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 termination notices 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 September 30, 2019, in the following periods (in thousands):
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Year |
|
Performance Obligations |
Remainder of 2019 |
|
$ |
79,028 |
|
2020 |
|
230,699 |
|
2021 |
|
122,068 |
|
Thereafter |
|
8,140 |
|
Total |
|
$ |
439,935 |
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| Contract with Customer, Asset and Liability |
Contract assets and contract liabilities included in our Balance Sheet at September 30, 2019 and December 31, 2018, are as follows (in thousands):
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September 30, |
|
December 31, |
|
2019 |
|
2018 |
Contract assets |
$ |
50,855 |
|
|
$ |
29,982 |
|
Contract liabilities (1), (2), (3)
|
(15,682 |
) |
|
(16,845 |
) |
Contracts in progress, net |
$ |
35,173 |
|
|
$ |
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 by an increase in billings on a project in our Fabrication Division and advance payments on a project in our Shipyard Division.
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(2) |
Revenue recognized during the three months ended September 30, 2019 and 2018, which related to amounts included in our contract liabilities balance at June 30, 2019 and 2018, was $8.5 million and $2.6 million respectively. Revenue recognized during the nine months ended September 30, 2019 and 2018, which related to amounts included in our contract liabilities balance at December 31, 2018 and 2017, was $14.3 million and $5.1 million, respectively.
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(3) |
Contract liabilities at September 30, 2019 and December 31, 2018, includes accrued contract losses of $3.0 million and $2.4 million, respectively. See "Project Changes in Estimates" below for further discussion of our accrued contract losses.
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