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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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