CONTRACTS RECEIVABLE AND RETAINAGE |
6 Months Ended |
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Jun. 30, 2015 | |
| Contractors [Abstract] | |
| CONTRACTS RECEIVABLE AND RETAINAGE |
CONTRACTS RECEIVABLE AND RETAINAGE
The principal customers of the Company include major and large independent oil and gas companies, marine companies, and their contractors. Of our contracts receivable balance at June 30, 2015, $23.4 million, or 62.6%, is with five customers. The significant projects for these five customers consist of:
•a large deepwater jacket, piles and topside;
•two separate projects with fabrication and installation of offshore skids;
•shallow water jackets, piles, and topsides;
•three inland river towing vessels; and
•an upgrade to an oil unloading and handling facility.
At June 30, 2015, there was no allowance for bad debt included in the Company’s contract receivable balance.
In connection with work associated with a completed hull and topside project for a large deepwater customer in the first quarter 2014, we had a remaining receivable balance of $10.0 million at December 31, 2014. In the first quarter 2015, we entered into a settlement agreement with this customer that included payment of $8.4 million in cash and title to certain skidway equipment used for project load-outs. The cash settlement was received during the first quarter 2015. The equipment, valued at $1.2 million, was included in property, plant and equipment at June 30, 2015 with an assigned useful life of 15 years and represents a non-cash change in contracts receivable and property, plant and equipment in the accompanying unaudited statement of cash flows for the six months ended June 30, 2015. The remaining $0.4 million balance was charged to bad debt expense and was included in general and administrative expenses for the six-months ended June 30, 2015.
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