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Revenue Recognition
 6 Months Ended
Mar. 31, 2024
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue from External Customers by Products and Services [Table 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 its 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 when: (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 start 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 customer. 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, other than the Residential Single-family and Infrastructure Solutions Industrial Services businesses, as (i) control 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 Custom Power Solutions business, 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 the work performed creates an asset with alternative use to the Company and whether we have the right to bill the customer as costs are incurred. Such assessment involves an evaluation of contractual termination clauses. Where we are creating an asset with no alternative use and 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 customer.

For arrangements where we recognize revenue over time, 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 result 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.

Certain divisions in the Residential and Infrastructure Solutions segments recognize revenue at the completion of the contract ("completed contract") under the right to invoice practical expedient because the duration of their contracts is short in nature. We recognize revenue on completed contracts when the project is complete and billable to the customer.
 
Variable Consideration

The transaction price for our contracts may include variable consideration, which includes changes to transaction price for approved and unapproved change orders, claims and incentives. 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 performance 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 will be entitled (or which 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 performance 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 accounted for as a reduction of the transaction price in the case of liquidated damages) are not resolved in our favor, or to the extent incentives reflected in transaction price are not earned, there could be reductions in, or reversals of, previously recognized revenue.

Disaggregation of Revenue

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 revenue for the three and six months ended March 31, 2024 and 2023 was derived from the following activities. Certain prior period amounts have been reclassified to conform with the current period presentation, where applicable. See details in the following tables:
Three Months Ended March 31,Six Months Ended March 31,
2024202320242023
Communications$193,503 $141,120 $364,251 $288,365 
Residential
Single-family252,292 227,216 498,859 470,925 
Multi-family and Other87,080 78,896 156,369 153,265 
Total Residential339,372 306,112 655,228 624,190 
Infrastructure Solutions
Industrial Services12,076 11,562 23,17422,516 
Custom Power Solutions63,713 41,054 115,50379,384 
Total Infrastructure Solutions75,789 52,616 138,677101,900 
Commercial & Industrial97,069 69,033 $182,021129,300 
Total Revenue$705,733 $568,881 $1,340,177$1,143,755 

Three Months Ended March 31, 2024
CommunicationsResidentialInfrastructure SolutionsCommercial & IndustrialTotal
Fixed-price$141,144 $339,372 $73,543 $82,972 $637,031 
Time-and-material52,359 — 2,246 14,097 68,702 
Total revenue$193,503 $339,372 $75,789 $97,069 $705,733 
Three Months Ended March 31, 2023
CommunicationsResidentialInfrastructure SolutionsCommercial & IndustrialTotal
Fixed-price$92,392 $306,112 $50,951 $59,915 $509,370 
Time-and-material48,728 — 1,665 9,118 59,511 
Total revenue$141,120 $306,112 $52,616 $69,033 $568,881 
Six Months Ended March 31, 2024
CommunicationsResidentialInfrastructure SolutionsCommercial & IndustrialTotal
Fixed-price$266,367 $655,228 $134,423 $156,882 $1,212,900 
Time-and-material97,884 — 4,254 25,139 127,277 
Total revenue$364,251 $655,228 $138,677 $182,021 $1,340,177 
Six Months Ended March 31, 2023
CommunicationsResidentialInfrastructure SolutionsCommercial & IndustrialTotal
Fixed-price$179,666 $624,190 $98,497 $111,810 $1,014,163 
Time-and-material108,699 — 3,403 17,490 129,592 
Total revenue$288,365 $624,190 $101,900 $129,300 $1,143,755 
Accounts Receivable and Allowance for Credit Losses

Accounts receivable include amounts that we have billed or have an unconditional right to bill our customers. As of March 31, 2024, Accounts receivable included $7,385 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 performance 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 billed to the customer at any point during the contract. Amounts by which cumulative contract revenue recognized on a contract as of a given date exceeds cumulative billings and unbilled receivables to the customer under the contract are reflected as a current asset in our Condensed Consolidated Balance Sheets under the caption “Costs and estimated earnings in excess of billings”. Amounts by which cumulative billings to the customer under a contract as of a given date exceed cumulative contract revenue recognized are reflected as a current liability in our Condensed Consolidated Balance Sheets under the caption “Billings in excess of costs and estimated earnings”.

During the six months ended March 31, 2024 and 2023, we recognized revenue of $92,970 and $52,350 related to our contract liabilities at October 1, 2023 and 2022, respectively.
 
Remaining 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 commitments. At March 31, 2024, we had remaining performance obligations of $1,065,444. The Company expects to recognize revenue on approximately $875,040 of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter.
 
For the three and six months ended March 31, 2024, net revenue recognized from our performance obligations satisfied in previous periods was not material.