Quarterly report pursuant to Section 13 or 15(d)

REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS (Tables)

v3.19.1
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS (Tables)
3 Months Ended
Mar. 31, 2019
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following tables summarize revenue for each of our operating segments, disaggregated by contract type, for the three months ended March 31, 2019 and 2018 (in thousands):
 
 
Three Months Ended March 31, 2019
 
 
Fabrication

Shipyard

Services

Eliminations

Total
Contract Type
 
 
 
 
 
 
 
 
 
Fixed-price and unit-rate (1)
$
12,631

 
$
33,626

 
$
6,231

 
$
(614
)
 
$
51,874

T&M (2)

 
2,961

 
10,622

 

 
13,583

Other

 

 
2,749

 
(601
)
 
2,148

 
Total
$
12,631

 
$
36,587

 
$
19,602

 
$
(1,215
)
 
$
67,605

 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2018
 
 
Fabrication

Shipyard

Services

Eliminations

Total
Contract Type
 
 
 
 
 
 
 
 
 
Fixed-price and unit-rate (1)
$
17,343

 
$
17,222

 
$
10,290

 
$
(453
)
 
$
44,402

T&M (2)

 
1,343

 
10,585

 

 
11,928

Other

 

 
995

 
(35
)
 
960

 
Total
$
17,343

 
$
18,565

 
$
21,870

 
$
(488
)
 
$
57,290

 
 
 
 
 
 
 
 
 
 
 
____________
(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.

Revenue, Remaining Performance Obligation
A summary of our remaining performance obligations by operating segment at March 31, 2019 is as follows (in thousands).
Segment
 
Performance Obligations at March 31, 2019
Fabrication
 
$
71,144

Shipyard (1) (2)
 
226,250

Services
 
15,397

Total
 
$
312,791

 
 
 
_____________
(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.
(2)
Amount excludes remaining performance obligations related to contract awards in April 2019 for the construction of a regional class marine research vessel (approximately $70.0 million) and two towing, salvage and rescue ships (approximately $129.0 million).
We expect to recognize revenue for our remaining performance obligations at March 31, 2019 in the following periods (in thousands):
Year
 
Total
Remainder of 2019
 
$
180,172

2020
 
101,924

2021
 
29,825

Thereafter
 
$
870

Total
 
$
312,791

 
 
 
Contract with Customer, Asset and Liability [Table Text Block]
Contract assets and contract liabilities included in our Balance Sheet at March 31, 2019 and December 31, 2018, are as follows (in thousands):
 
March 31,
 
December 31,
 
2019
 
2018
Contract assets
$
38,707

 
$
29,982

Contract liabilities (1), (2), (3)
(9,234
)
 
(16,845
)
Contracts in progress, net
$
29,473

 
$
13,137

______________
(1)
The decrease in contract liabilities compared to December 31, 2018, was primarily due to the unwind of advance payments on two separate projects in our Fabrication and Shipyard Divisions.
(2)
Revenue recognized during the three months ended March 31, 2019 and 2018 related to amounts included in our contract liabilities balance at December 31, 2018 and 2017, was $13.5 million and $4.3 million, respectively.
(3)
Contract liabilities at March 31, 2019 and December 31, 2018, includes accrued contract losses of $1.5 million and $2.4 million, respectively. See "Project Changes in Estimates" below for further discussion of our accrued contract losses.