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Revenue (Tables)
3 Months Ended
Mar. 30, 2018
Revenue from Contract with Customer [Abstract]  
Contract with Customer, Asset and Liability
Cumulative catch-up adjustments for the three months ended March 30, 2018 and March 31, 2017 are presented in the following table:
 
 
Three Months Ended
 
 
March 30,
 
March 31,
(In thousands)
 
2018
 
2017
Favorable adjustments
 
$
4,152

 
$
3,542

Unfavorable adjustments
 
(1,311
)
 
(823
)
Net favorable adjustments
 
$
2,841

 
$
2,719

Funded backlog as of March 30, 2018 and December 31, 2017 is presented in the following table:

 
 
Three Months Ended
 
 
March 30,
 
December 31,
(In millions)
 
2018
 
2017
Funded backlog
 
$
723

 
$
719


Disaggregation of Revenue
The following tables present our revenue disaggregated by different categories. Revenue by contract type for the three months ended March 30, 2018 and March 31, 2017 is as follows:
 
 
Three Months Ended
 
 
March 30,
 
March 31,
(In thousands)
 
2018
 
2017
Cost-plus and cost-reimbursable ¹
 
$
230,208

 
$
218,257

Firm-fixed-price
 
90,308

 
71,806

Total revenue
 
$
320,516

 
$
290,063

 
 
 
 
 
¹ Includes time and material contracts
 
 
 
 

Revenue by service line for the three months ended March 30, 2018 and March 31, 2017 is as follows:
 
 
Three Months Ended
 
 
March 30,
 
March 31,
(In thousands)
 
2018
 
2017
Facility and logistics services
 
$
231,825

 
$
220,448

Information technology and network communications services
 
88,691

 
69,615

Total revenue
 
$
320,516

 
$
290,063


Revenue by geographic region for the three months ended March 30, 2018 and March 31, 2017 is as follows:
 
 
Three Months Ended
 
 
March 30,
 
March 31,
(In thousands)
 
2018
 
2017
Middle East
 
$
219,880

 
$
233,907

United States
 
73,788

 
40,010

Europe
 
26,848

 
16,146

Total revenue
 
$
320,516

 
$
290,063


Revenue by contract relationship for the three months ended March 30, 2018 and March 31, 2017 is as follows:
 
 
Three Months Ended
 
 
March 30,
 
March 31,
(In thousands)
 
2018
 
2017
Prime contractor
 
$
301,028

 
$
285,033

Subcontractor
 
19,488

 
5,030

Total revenue
 
$
320,516

 
$
290,063


Revenue by customer for the three months ended March 30, 2018 and March 31, 2017 is as follows:
 
 
Three Months Ended
 
 
March 30,
 
March 31,
(In thousands)
 
2018
 
2017
Army
 
$
237,847

 
$
252,161

Air Force
 
65,255

 
32,969

Navy
 
8,357

 
4,933

Other
 
9,057

 

Total revenue
 
$
320,516

 
$
290,063

Schedule of Effect of New Accounting Principle
The effects of the adoption of ASC Topic 606, using the modified retrospective method on January 1, 2018, are outlined in the following table:
(In thousands)
 
Year Ended December 31, 2017
 
Impact
 
January 1, 2018
Receivables (unbilled)
 
$
121,601

 
$
10,457

 
$
132,058

Costs incurred in excess of billings
 
$
12,751

 
$
(12,751
)
 
$

Billings in excess of costs
 
$
3,766

 
$
(3,766
)
 
$

Impact to contract liabilities
 
$

 
$
1,621

 
$
1,621

Retained earnings, net of tax
 
$
117,415

 
$
(77
)
 
$
117,338


The following table reflects the balances of financial statement line items under the new ASC Topic 606 revenue recognition guidance compared to the former ASC Topic 605 revenue guidance as of and for the three months ended March 30, 2018:
 
 
New Guidance
 
Former Guidance
(In thousands)
 
ASC Topic 606
 
ASC Topic 605
Revenue
 
$
320,516

 
$
320,614

Cost of revenue
 
$
294,050

 
$
291,019

Selling, general and administrative expenses
 
$
17,795

 
$
17,795

Operating income
 
$
8,671

 
$
11,800

Receivables (unbilled)
 
$
156,048

 
$
141,929

Costs incurred in excess of billings
 
$

 
$
16,093

Billings in excess of costs
 
$

 
$
3,501