Revenue from Contracts with Customer [Text Block] | Revenue from Contracts with Customers On January 1, 2018, we adopted Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers using the modified retrospective method applied to those contracts that were not substantially complete as of January 1, 2018. ASC 606 outlines a five-step model whereby revenue is recognized as performance obligations within the contract are satisfied. ASC 606 also requires new, expanded disclosures regarding revenue recognition. We recognized the cumulative effect of adopting ASC 606 as an increase to the 2018 opening balance of retained earnings in the amount of $0.8 million , with the impact primarily related to fixed-price contracts. We derive revenue from contracts with customers primarily from contracts with the U.S. government in the areas of defense, intelligence, homeland security and other federal civilian agencies. Substantially all of our revenue is derived from services and solutions provided to the U.S. government or to prime contractors supporting the U.S. government, including services by our employees and our subcontractors, and solutions that include third-party hardware and software that we purchase and integrate as a part of our overall solutions. Customer requirements may vary from period-to-period depending on specific contract and customer requirements. We provide our services and solutions under three types of contracts: cost-reimbursable, fixed-price and time-and-materials. Under cost-reimbursable contracts, we are reimbursed for costs that are determined to be reasonable, allowable and allocable to the contract and paid a fee representing the profit margin negotiated between us and the contracting agency, which may be fixed or performance based. Under fixed-price contracts, we perform specific tasks for a fixed price. Fixed-price contracts may include either a product delivery or specific service performance over a defined period. Under time-and-materials contracts, we are reimbursed for labor at fixed hourly rates and are generally reimbursed separately for allowable materials and expenses at cost. We typically recognize revenue for time and material contracts under the "right to invoice" model. For contracts that do not meet the criteria to measure performance as a right to invoice under the series guidance, we utilize an Estimate at Completion process to measure progress toward completion. We typically estimate progress towards completion based on cost incurred or direct labor incurred. As part of this process, we review information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenue and costs. The risks and opportunities include judgments about the ability and cost to achieve the contract milestones and other technical contract requirements. We make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation, execution by our subcontractors, the availability and timing of funding from our customer and overhead cost rates, among other variables. A significant change in one or more of these estimates could affect the timing in which we recognize revenue on our contracts. For the three months ended June 30, 2019 and 2018 , the aggregate impact of adjustments in contract estimates increased our revenue by $3.5 million and $4.3 million , respectively. For the six months ended June 30, 2019 and 2018 , the aggregate impact of adjustments in contract estimates increased our revenue by $5.6 million and $5.8 million , respectively. We have one reportable segment. Our U.S. government customers typically exercise independent decision-making and contracting authority. Offices or divisions within an agency or department of the U.S. government may directly, or through a prime contractor, use our services as a separate customer as long as the customer has independent decision-making and contracting authority within its organization. We treat sales to U.S. government customers as sales within the U.S. regardless of where the services are performed. The following tables disclose revenue (in thousands) by contract type, customer, prime or subcontractor and geography for the periods presented. Three months ended Six months ended 2019 2018 2019 2018 Cost-reimbursable $ 371,852 $ 324,495 $ 731,617 $ 633,542 Fixed-price 108,028 116,762 203,091 232,933 Time-and-materials 57,157 49,787 104,259 97,805 Revenue $ 537,037 $ 491,044 $ 1,038,967 $ 964,280 Three months ended Six months ended 2019 2018 2019 2018 Department of Defense and intelligence agencies $ 408,527 $ 356,953 $ 798,356 $ 690,867 Federal civilian agencies 116,449 121,991 217,637 250,224 State agencies, international agencies and commercial entities 12,061 12,100 22,974 23,189 Revenue $ 537,037 $ 491,044 $ 1,038,967 $ 964,280 Three months ended Six months ended 2019 2018 2019 2018 Prime contractor $ 477,986 $ 433,791 $ 924,505 $ 856,024 Subcontractor 59,051 57,253 114,462 108,256 Revenue $ 537,037 $ 491,044 $ 1,038,967 $ 964,280 Three months ended Six months ended 2019 2018 2019 2018 U.S. $ 529,782 $ 483,170 $ 1,024,442 $ 949,195 International 7,255 7,874 14,525 15,085 Revenue $ 537,037 $ 491,044 $ 1,038,967 $ 964,280 The following table discloses contract receivables (in thousands): June 30, 2019 December 31, 2018 Billed receivables $ 316,960 $ 301,716 Unbilled receivables 82,540 109,895 Allowance for doubtful accounts (6,438 ) (6,233 ) Receivables—net $ 393,062 $ 405,378 Receivables at June 30, 2019 are expected to be substantially collected within one year except for approximately $1.2 million , of which 100% is related to receivables from sales to the U.S. government or from contracts in which we acted as a subcontractor to other contractors selling to the U.S. government. We have one contract which accounts for 11% of our accounts receivable balance. We do not believe that we have significant exposure to credit risk as billed receivables and unbilled receivables are primarily due from the U.S. government. The allowance for doubtful accounts represents our estimate for exposure due to compliance, contractual issues and bad debts related to prime contractors. The following table discloses contract liabilities (in thousands): June 30, 2019 December 31, 2018 Contract liabilities $ 43,526 $ 28,209 For the three months ended June 30, 2019 , the amount of revenue that was included in the opening contract liabilities balance was $4.5 million . For the six months ended June 30, 2019 , the amount of revenue that was included in the opening contract liabilities balance was $22.5 million . The remaining performance obligation as of June 30, 2019 is $2.7 billion . The following table discloses when we expect to recognize the remaining performance obligation as revenue (in billions): For the remaining six months ending December 31, 2019 For the year ending December 31, 2020 December 31, 2021 Thereafter $ 1.0 $ 1.2 $ 0.3 $ 0.2 |