Annual report pursuant to Section 13 and 15(d)

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

v3.10.0.1
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS (Tables)
12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following tables summarize revenue for each of our operating segments, disaggregated by contract type and timing of revenue recognition, for 2018, 2017 and 2016 (in thousands):
 
 
2018
 
 
Fabrication
 
Shipyard
 
Services
 
EPC
 
Eliminations
 
Total
Contract Type
 
 
 
 
 
 
 
 
 
 
 
Fixed-price and unit-rate (1)
$
37,943

 
$
88,887

 
$
38,612

 
$
2,477

 
$
(2,414
)
 
$
165,505

T&M (2)

 
7,537

 
43,481

 

 

 
51,018

Other

 

 
6,137

 

 
(1,413
)
 
4,724

 
Total
$
37,943

 
$
96,424

 
$
88,230

 
$
2,477

 
$
(3,827
)
 
$
221,247



2017


Fabrication

Shipyard

Services

EPC

Eliminations

Total
Contract Type











Fixed-price and unit-rate (1)
$
57,880


$
47,787


$
28,465


$
198


$
(5,096
)

$
129,234

T&M (2)


4,912


35,180






40,092

Other




1,800




(104
)

1,696


Total
$
57,880


$
52,699


$
65,445


$
198


$
(5,200
)

$
171,022

 
 
2016
 
 
Fabrication
 
Shipyard
 
Services
 
EPC
 
Eliminations
 
Total
Contract Type
 
 
 
 
 
 
 
 
 
 
 
Fixed-price and unit-rate (1)
$
88,683

 
$
95,958

 
$
31,191

 
$

 
$
(3,062
)
 
$
212,770

T&M (2)

 
13,544

 
58,882

 

 

 
72,426

Other

 

 
1,341

 

 
(211
)
 
1,130

 
Total
$
88,683

 
$
109,502

 
$
91,414

 
$

 
$
(3,273
)
 
$
286,326

____________
(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
The following tables summarize the remaining revenue to be earned under performance obligations for the portion of contracts not yet completed as of December 31, 2018 (in thousands).
Segment
 
Performance Obligations at December 31, 2018
Fabrication
 
$
63,498

Shipyard (1)
 
259,644

Services
 
11,046

EPC
 
385

Total
 
$
334,573

_____________
(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 11 for further discussion of these contracts.

We expect to recognize revenue for our remaining performance obligations in the following periods (in thousands):
Year
 
Total
2019
 
$
233,987

2020
 
81,464

2021
 
19,122

Total
 
$
334,573

Contract with Customer, Asset and Liability
Information with respect to uncompleted contracts at December 31, 2018 and 2017 is as follows (in thousands):
 
December 31,
 
2018
 
2017
Costs incurred on uncompleted contracts
$
253,871

 
$
266,902

Estimated profit (loss) earned to date
(35,470
)
 
(26,954
)
Prepaid subcontractor costs
2,368

 

Sub-total
220,769

 
239,948

Billings to date
(190,588
)
 
(224,329
)
Deferred revenue (1)
(4,592
)
 

Total
$
25,589

 
$
15,619

______________
(1)
Deferred revenue is included within other noncurrent assets as further discussed below.

The above amounts are included in the accompanying Balance Sheet at December 31, 2018 and 2017 under the following captions (in thousands):
 
December 31,
 
2018
 
2017
Contract assets
$
29,982

 
$
28,373

Contract liabilities (1), (2), (3)
(16,845
)
 
(12,754
)
Sub-total
13,137

 
15,619

Contract assets, noncurrent (1)
12,452

 

Total
$
25,589

 
$
15,619

______________
(1)
The increase in contract liabilities compared to December 31, 2017, was primarily due to advance payments for two separate projects in our Fabrication and Shipyard Divisions, offset partially by the reclassification of accrued contract losses (included within contract liabilities) to other noncurrent assets. The accrued contract losses relate to our MPSV projects that are subject to dispute. In addition to the accrued contract losses that were reclassified to other noncurrent assets, contract assets and deferred revenue for these projects were also reclassified to other noncurrent assets, resulting in a net contract asset balance of $12.5 million for these projects within other noncurrent assets on our Balance Sheet at December 31, 2018. See Note 11 for further discussion of the dispute.
(2)
Revenue recognized during 2018 related to amounts included in our contract liabilities balance at December 31, 2017, was $5.1 million.
(3)
Contract liabilities at December 31, 2018 and 2017, includes accrued contract losses of $2.4 million and $7.6 million, respectively. See "Project Changes in Estimates" below for further discussion of our accrued contract losses.
Schedules of Concentration of Risk, by Risk Factor
However, for 2018, 2017 and 2016, certain customers individually accounted for 10% or more of our consolidated revenue as follows (in thousands):
 
December 31,
Customer
2018
 
2017
 
2016
A
$
49,123

 
$
21,781

 
*

B
25,873

 
*

 
*

C
23,279

 
*

 
*

D
*

 
44,724

 
*

E
*

 
 
 
65,981

_____________
* The customer revenue was less than 10% of consolidated revenue for the year.