Revenue

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Revenue from products or services provided to customers over time accounted for 35.8% and 32.2% of revenue for the three months ended September 30, 2021 and 2020, respectively, and 29.7% and 27.9% of revenue for the nine months ended September 30, 2021 and 2020, respectively. The majority of revenue under these long-term agreements is 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 its performance to date under the terms of the contract. Revenue recognized over time using an input measure was $30,314 and $27,316 for the three months ended September 30, 2021 and 2020, respectively, and $79,109 and $76,606 for the nine months ended September 30, 2021 and 2020, 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 $16,262 and $10,800 for the three months ended September 30, 2021 and 2020, respectively, and was $40,013 and $29,833 for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021 and December 31, 2020, the Company had contract assets of $41,164 and $37,843, respectively, that were recorded in “Inventories - net” within the Condensed Consolidated Balance Sheets. As of September 30, 2021 and December 31, 2020, the Company had contract liabilities of $4,840 and $1,324, respectively, that were recorded in “Deferred revenue” within the Condensed Consolidated Balance Sheets.

The majority of the Company’s revenue is from products transferred and services rendered to customers at a point in time. Point in time revenue accounted for 64.2% and 67.8% of revenue for the three months ended September 30, 2021 and 2020, respectively, and 70.3% and 72.1% of revenue for the nine months ended September 30, 2021 and 2020, respectively. The Company recognizes revenue at the point in time at which the customer obtains control of the product or service, which is generally when the 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 a physical location.

The following table summarizes the Company’s net sales by major product and service category for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Rail Products	$	48,355	$	40,502	$	156,730	$	144,901
Rail Technologies	25,587		23,486		72,226		64,230
Rail Technologies and Services	73,942		63,988		228,956		209,131
Fabricated Steel Products	25,810		22,138		85,754		66,109
Precast Concrete Products	17,972		15,745		50,723		42,816
Coatings and Measurement	12,329		16,494		35,222		63,779
Infrastructure Solutions	56,111		54,377		171,699		172,704
Total net sales	$	130,053	$	118,365	$	400,655	$	381,835

Net sales by the timing of the transfer of products and services was as follows for the periods presented:

	Three Months Ended September 30, 2021
	Rail Technologies and Services		Infrastructure Solutions		Total
Point in time	$	54,470	$	29,007	$	83,477
Over time	19,472		27,104		46,576
Total net sales	$	73,942	$	56,111	$	130,053
	Three Months Ended September 30, 2020
	Rail Technologies and Services		Infrastructure Solutions		Total
Point in time	$	47,027	$	33,222	$	80,249
Over time	16,961		21,155		38,116
Total net sales	$	63,988	$	54,377	$	118,365

	Nine Months Ended September 30, 2021
	Rail Technologies and Services		Infrastructure Solutions		Total
Point in time	$	178,225	$	103,308	$	281,533
Over time	50,731		68,391		119,122
Total net sales	$	228,956	$	171,699	$	400,655
	Nine Months Ended September 30, 2020
	Rail Technologies and Services		Infrastructure Solutions		Total
Point in time	$	163,190	$	112,206	$	275,396
Over time	45,941		60,498		106,439
Total net sales	$	209,131	$	172,704	$	381,835

The timing of revenue recognition, billings, and cash collections results in billed receivables, costs in excess of billings (contract assets, included in “Inventories - net”), and billings in excess of costs (contract liabilities, included in “Deferred revenue”) within the Condensed Consolidated Balance Sheets.

Significant changes in contract assets during the nine months ended September 30, 2021 included transfers of $20,561 from the contract assets balance as of December 31, 2020 to accounts receivable. Significant changes in contract liabilities during the nine months ended September 30, 2021 resulted from increases of $4,512 due to billings in excess of costs, excluding amounts recognized as revenue during the period. Contract liabilities were reduced due to revenue recognized during the three months ended September 30, 2021 and 2020 of $81 and $175, respectively, and revenue recognized during the nine months ended September 30, 2021 and 2020 of $985 and $3,708, respectively, which were included in contract liabilities at the beginning of each period.

As of September 30, 2021, the Company had approximately $231,726 of obligations under new contracts and remaining performance obligations, which is also referred to as backlog. Approximately 11.2% of the September 30, 2021 backlog was related to projects that are anticipated to extend beyond September 30, 2022.