XML 21 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Revenue
 6 Months Ended
Jun. 30, 2018
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
On January 1, 2018, the Company adopted ASU 2014-09, and all the related amendments using the modified retrospective approach, which did not result in any changes to the previously reported financial information. The updates related to ASU 2014-09 were applied only to contracts that were not complete as of January 1, 2018.

The Company’s revenues are comprised of product and service sales, including products and services provided under long-term agreements with its customers. All revenue is recognized when the Company satisfies its performance obligations under the contract, either implicit or explicit, by transferring the promised product or service to its customer either when or as its customer obtains control of the product or service. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation. The majority of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. Revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales, value added, and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis. Shipping and handling costs are included in cost of goods sold.

The Company’s performance obligations under long-term agreements with its customers are generally satisfied as over time. Revenue from products or services transferred to customers over time accounted for 23.4% and 22.7% of revenue for the three months ended June 30, 2018 and 2017, respectively, and 24.3% and 22.9% of revenue for the six months ended June 30, 2018 and 2017, respectively. Revenue under these long-term agreements is generally recognized over time either using an input measure based upon the proportion of actual costs incurred to estimated total project costs or an input measure based upon actual labor costs as a percentage of estimated total labor costs, depending upon which measure the Company believes best depicts the Company’s performance to date under the terms of the contract. Revenue recognized over time using an input measure was $29,583 and $19,835 for the three months ended June 30, 2018 and 2017, respectively, and was $54,144 and $41,445 for the six months ended June 30, 2018 and 2017, respectively. A certain portion of the Company’s revenue recognized over time under these long-term agreements is recognized using an output method, specifically units delivered, based upon certain customer acceptance and delivery requirements. Revenue recognized over time using an output measure was $10,893 and $13,049 for the three months ended June 30, 2018 and 2017, respectively, and was $17,554 and $19,012 for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018 and December 31, 2017, the Company had contract assets of $29,247 and $25,320, respectively, that were recorded in inventory within the Condensed Consolidated Balance Sheets. At June 30, 2018 and December 31, 2017, the Company had contract liabilities of $3,035 and $1,420, respectively, that were recorded in deferred revenue within the Condensed Consolidated Balance Sheets.

Accounting for these long-term agreements involves the use of various techniques to estimate total revenues and costs. The Company estimates profit on these long-term agreements as the difference between total estimated revenues and expected costs to complete a contract and recognizes that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include, among other things, labor productivity, cost and availability of materials, and timing of funding by customers. The nature of these long-term agreements may give rise to several types of variable consideration, such as claims, awards, and incentive fees. Historically, these amounts of variable consideration have not been considered significant. Contract estimates may include additional revenue for submitted contract modifications if there exists an enforceable right to the modification, the amount can be reasonably estimated, and its realization is probable. These estimates are based on historical collection experience, anticipated performance, and the Company’s best judgment at that time. These amounts are generally included in the contract’s transaction price and are allocated over the remaining performance obligations. Changes in judgments related to the estimates above could impact the timing and amount of revenue recognized and, accordingly, the timing and amount of associated income. In the event a contract loss becomes known, the entire amount of the estimated loss is recognized in the Condensed Consolidated Statements of Operations.

The majority of the Company’s revenue is from products and services transferred to customers at a point in time, which accounted for approximately 76.6% and 77.3% of revenue for the three months ended June 30, 2018 and 2017, respectively. Revenue from products and services transferred to customers at a point in time accounted for approximately 75.7% and 77.1% of revenue for the six months ended June 30, 2018 and 2017, respectively. The Company recognizes revenue at the point in time in which the customer obtains control of the product or service, which is generally when product title passes to the customer upon shipment or the service has been rendered to the customer. In limited cases, title does not transfer and revenue is not recognized until the customer has received the products at its physical location.
The following table summarizes the Company's net sales by major product category:
Three Months Ended
June 30,		Six Months Ended
June 30,
2018201720182017
Rail Products$54,332 $44,399 $90,366 $78,764 
Rail Technologies37,552 24,948 63,688 47,063 
Rail Products and Services91,884 69,347 154,054 125,827 
Piling and Fabricated Bridge25,846 29,607 44,707 58,830 
Precast Concrete Products16,361 15,858 26,400 23,957 
Construction Products42,207 45,465 71,107 82,787 
Test, Inspection, and Threading15,008 13,050 29,221 23,932 
Protective Coatings and Measurement Solutions23,791 16,998 40,962 31,016 
Tubular and Energy Services38,799 30,048 70,183 54,948 
Total net sales$172,890 $144,860 $295,344 $263,562 


Net sales by the timing of the transfer of goods and services is as follows:
Three Months Ended June 30, 2018Rail Products and
Services		Construction
Products		Tubular and Energy
Services		Total
Point in time$69,295 $28,196 $34,923 $132,414 
Over time22,589 14,011 3,876 40,476 
Total net sales$91,884 $42,207 $38,799 $172,890 
Three Months Ended June 30, 2017Rail Products and
Services		Construction
Products		Tubular and Energy
Services		Total
Point in time$57,098 $28,766 $26,112 $111,976 
Over time12,249 16,699 3,936 32,884 
Total net sales$69,347 $45,465 $30,048 $144,860 
Six Months Ended June 30, 2018Rail Products and
Services		Construction
Products		Tubular and Energy
Services		Total
Point in time$115,166 $47,122 $61,358 $223,646 
Over time38,888 23,985 8,825 71,698 
Total net sales$154,054 $71,107 $70,183 $295,344 
Six Months Ended June 30, 2017Rail Products and
Services		Construction
Products		Tubular and Energy
Services		Total
Point in time$102,664 $53,390 $47,051 $203,105 
Over time23,163 29,397 7,897 60,457 
Total net sales$125,827 $82,787 $54,948 $263,562 

The timing of revenue recognition, billings, and cash collections results in billed receivables, costs in excess of billings (contract assets, included in inventory), and billings in excess of costs (contract liabilities, included in deferred revenue) on the Condensed Consolidated Balance Sheets.

Significant changes in contract assets during the six months ended June 30, 2018 include transfers to receivables from contract assets recognized at the beginning of the period of $10,872. Significant changes in contract liabilities during the six months ended June 30, 2018 include $740 of revenue recognized that was included in the contract liability at the beginning of the period, and increases of $2,488 due to billings in excess of costs, excluding amounts recognized as revenue during the period.

As of June 30, 2018, the Company has approximately $231,252 of remaining performance obligations, which is also referred to as backlog. Approximately 11.7% of the June 30, 2018 backlog is related to projects that are anticipated to extend beyond June 30, 2019.