Quarterly report pursuant to Section 13 or 15(d)

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

v3.19.3
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS (Tables)
9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2019 and 2018 (in thousands):

 
 
Three Months Ended September 30, 2019
 
 
Fabrication

Shipyard

Services

Eliminations

Total
Contract Type
 
 
 
 
 
 
 
 
 
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


 
 
Three Months Ended September 30, 2018
 
 
Fabrication

Shipyard

Services

Eliminations

Total
Contract Type
 
 
 
 
 
 
 
 
 
Fixed-price and unit-rate (1)
$
3,382

 
$
23,635

 
$
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


 
 
Nine Months Ended September 30, 2019
 
 
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


 
 
Nine Months Ended September 30, 2018
 
 
Fabrication
 
Shipyard
 
Services
 
Eliminations
 
Total
Contract Type
 
 
 
 
 
 
 
 
 
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

 
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.

Revenue, Remaining Performance Obligation
A summary of our remaining performance obligations by operating segment at September 30, 2019, is as follows (in thousands).
Segment
 
Performance Obligations
Fabrication
 
$
39,894

Shipyard (1)
 
384,852

Services
 
15,189

Total
 
$
439,935

 
 
 
_____________
(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.

We expect to recognize revenue for our remaining performance obligations at September 30, 2019, in the following periods (in thousands):
Year
 
Performance Obligations
Remainder of 2019
 
$
79,028

2020
 
230,699

2021
 
122,068

Thereafter
 
8,140

Total
 
$
439,935

 
 
 
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):
 
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

______________
(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.
(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.
(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.