| Revenue From Contract With Customer [Text Block] | 3 . REVENUE RECOGNITION Contracts Our revenue is derived from contracts with customers, and we determine the appropriate accounting treatment for each contract at contract inception. Our contracts primarily relate to electrical and mechanical contracting services, technology infrastructure products and services, and electro-mechanical solutions for industrial operations. Revenue is earned based upon an agreed fixed price or actual costs incurred plus an agreed upon percentage. We account for a contract w hen: (i) it has approval and commitment from both parties, (ii) the rights of the parties are identified, (iii) payment terms are identified, (iv) the contract has commercial substance, and (v) collectability of consideration is probable. We consider the s tart of a project to be when the above criteria have been met and we have written authorization from the customer to proceed. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the custom er. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. We recognize revenue over time for the majority of the services we perform as (i) con trol continuously transfers to the customer as work progresses at a project location controlled by the customer and (ii) we have the right to bill the customer as costs are incurred. Within our Infrastructure Solutions segment, we often perform work inside our own facilities, where control does not continuously transfer to the customer as work progresses. In such cases, we evaluate whether we have the right to bill the customer as costs are incurred. Such assessment involves an evaluation of contractual ter mination clauses. Where we have a contractual right to payment for work performed to date, we recognize revenue over time. If we do not have such a right, we recognize revenue upon completion of the contract, when control of the work transfers to the custo mer. For fixed price arrangements, we use the percentage of completion method of accounting under which revenue recognized is measured principally by the costs incurred and accrued to date for each contract as a percentage of the estimated total cost for each contract at completion. Contract costs include all direct material, labor and indirect costs related to contract performance. Changes in job performance, job conditions, estimated contract costs and profitability and final contract settlements may res ult in revisions to costs and income and the effects of these revisions are recognized in the period in which the revisions are determined. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. This measurement and comparison process requires updates to the estimate of total costs to complete the contract, and these updates may include subjective assessments and judgments. Variable Consideration The transaction price for our contracts may inc lude variable consideration, which includes increases to transaction price for approved and unapproved change orders, claims and incentives, and reductions to transaction price for liquidated damages. Change orders, claims and incentives are generally not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as a modification of the existing contract and performance obligation. We estimate variable consideration for a per formance obligation at the probability weighted value we expect to receive (or the most probable amount we expect to incur in the case of liquidated damages, if any), utilizing estimation methods that best predict the amount of consideration to which we wi ll be entitled (or will be incurred in the case of liquidated damages, if any). We include variable consideration in the estimated transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in transaction price are based largely on an assessment of our anticipated perfo rmance and all information (historical, current and forecasted) that is reasonably available to us. The effect of variable consideration on the transaction price of a performance obligation is recognized as an adjustment to revenue on a cumulative catch-up basis. To the extent unapproved change orders and claims reflected in transaction price (or excluded from transaction price in the case of liquidated damages) are not resolved in our favor, or to the extent incentives reflected in transaction price are no t earned, there could be reductions in, or reversals of, previously recognized revenue. Costs of Obtaining a Contract In certain of our operations, we incur commission costs related to entering into a contract that we only incurred because of that contr act. When this occurs, we capitalize that cost and amortize it over the expected term of the contract . At December 31, 2018 , we had capitalized commission costs of $ 119 . We generally do not incur significant incremental costs related to obtaining or fulfilling a contract prior to the start of a project. On rare occasions, when significant pre -contract costs are incurred, they will be capitalized and amortized on a percentage of completion basis over the life of the contract. Disaggregation of Revenu e We disaggregate our revenue from contracts with customers by activity and contract type, as these categories reflect how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Our consolidated 2018 revenue was derived from the following service activities. See details in the following tables: Three Months Ended December 31, 2018 2017 Commercial & Industrial Commercial $ 43,282 $ 29,141 Industrial 29,301 23,861 Total 72,583 53,002 Communications 69,325 54,459 Infrastructure Solutions Industrial Services 12,223 11,053 Custom Power Solutions 17,256 10,632 Total 29,479 21,685 Residential Single-family 50,476 44,614 Multi-family 14,517 17,218 Other 7,462 7,322 Total 72,455 69,154 Total Revenue $ 243,842 $ 198,300 Three Months Ended December 31, 2018 Commercial & Infrastructure Industrial Communications Solutions Residential Total Fixed-price $ 65,830 $ 48,829 $ 27,511 $ 72,455 $ 214,625 Time-and-material 6,753 20,496 1,968 - 29,217 Total revenue $ 72,583 $ 69,325 $ 29,479 $ 72,455 $ 243,842 Three Months Ended December 31, 2017 Commercial & Infrastructure Industrial Communications Solutions Residential Total Fixed-price $ 48,920 $ 44,156 $ 19,673 $ 69,154 $ 181,903 Time-and-material 4,082 10,303 2,012 - 16,397 Total revenue $ 53,002 $ 54,459 $ 21,685 $ 69,154 $ 198,300 Accounts Receivable Accounts receivable include amounts which we have billed or have an unconditional right to bill our customers. As of December 31, 2018 , Accounts receivable included $ 9,973 of unbilled receivables for which we have an unconditional right to bill. Contract Assets and Liabilities Project contracts typically provide for a schedule of billings on percentage of completion of specific tasks inherent in the fulfillment of our per formance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, contract revenue recognized in the statement of operations can and usually does differ from amounts that can be bi lled to the customer at any point during the contract. Amounts by which cumulative contract revenue recognized on a contract as of a given date exceed cumulative billings and unbilled receivables to the customer under the contract are reflected as a curren t asset in our balance sheet under the caption “Costs and estimated earnings in excess of billings”. To the extent amounts by which cumulative billings to the customer under a contract as of a given date exceed cumulative contract revenue recognized are r eflected as a current liability in our balance sheet under the caption “Billings in excess of costs and estimated earnings”. The net asset (liability) position for contracts in process consisted of the following: December 31, September 30, 2018 2018 Costs and estimated earnings on uncompleted contracts $ 554,909 $ 539,226 Less: Billings to date (565,782) (541,606) $ (10,873) $ (2,380) The net asset (liability) position for contracts in process included in the accompanying consolidated balance sheets was as follows: December 31, September 30, 2018 2018 Costs and estimated earnings in excess of billings $ 24,431 $ 31,446 Billings in excess of costs and estimated earnings (35,304) (33,826) $ (10,873) $ (2,380) In the quarters ended December 31, 2018 and 2017, we recognized revenue of $ 20,167 and $ 16,555 related to our contract liabilities at October 1, 2018 and 2017, respectively. We did not have any impairment losses recognized on our receivables or contract assets for the quarters ended December 31, 2018 or 2017.
R emaining Performance Obligations Remaining performance obligations represent the unrecognized revenue value of our contract commitments. New awards represent the total expected revenue value of new contract commitments undertaken during a given period, as well as additions to the scope of existing contract commitments. Our new performance obligations vary significantly each reporting period based on the timing of our major new contract commitment s. At December 31, 2018, we had remaining performance obligations of $ 406,917 . The Company expects to recognize revenue on approximately $ 386,990 of the remaining performance obligations over the next 12 months, with the remaining recognized thereafter. In the first quarter of fiscal 2019, net revenue recognized from our performance obligations satisfied in previous periods was not material. |
