Revenue

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

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

	Three Months Ended March 31,
	2023		2022
Rail Products and Global Friction Management	$	56,048	$	51,651
Technology Services and Solutions	8,336		12,059
Rail, Technologies, and Services	64,384		63,710
Precast Concrete Buildings	10,886		9,970
Other Precast Concrete Products	13,402		5,040
Precast Concrete Products	24,288		15,010
Fabricated Steel Products	10,517		12,604
Coatings and Measurement	16,299		7,470
Steel Products and Measurement	26,816		20,074
Total net sales	$	115,488	$	98,794

The majority of the Company’s revenue is from products transferred and services rendered to customers at a point in time. 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 designated physical location.

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

	Three Months Ended March 31, 2023
	Rail, Technologies, and Services		Precast Concrete Products		Steel Products and Measurement		Total
Point in time	$	53,834	$	13,402	$	15,726	$	82,962
Over time	10,550		10,886		11,090		32,526
Total net sales	$	64,384	$	24,288	$	26,816	$	115,488
	Three Months Ended March 31, 2022
	Rail, Technologies, and Services		Precast Concrete Products		Steel Products and Measurement		Total
Point in time	$	49,166	$	4,263	$	15,062	$	68,491
Over time	14,544		10,747		5,012		30,303
Total net sales	$	63,710	$	15,010	$	20,074	$	98,794

The Company’s performance obligations under long-term agreements with its customers are generally satisfied over time. Revenue under long-term agreements is generally recognized 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. 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 was as follows for the periods presented:

	Three Months Ended March 31,				Percentage of Total Net Sales Three Months Ended March 31,
	2023		2022		2023		2022
Over time input method	$	16,211	$	19,322	14.0	%	19.6	%
Over time output method	16,315		10,981		14.1		11.1
Total over time sales	$	32,526	$	30,303	28.2	%	30.7	%

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

The following table sets forth the Company's contract assets:

	Contract Assets
Balance as of December 31, 2022	$	33,613
Net additions to contract assets	1,290
Transfers from contract asset balance to accounts receivable	(3,696)
Balance as of March 31, 2023	$	31,207

The following table sets forth the Company's contract liabilities:

	Contract Liabilities
Balance as of December 31, 2022	$	6,781
Revenue recognized from contract liabilities	(3,443)
Increase in billings in excess of cost, excluding revenue recognized	1,983
Other adjustments, including business divestiture	(2,078)
Balance as of March 31, 2023	$	3,243

The Company records provisions related to the allowance for credit losses associated with contract assets. Provisions are recorded based upon a specific review of individual contracts as necessary, and a standard provision over any remaining contract assets pooled together based on similar risk of credit loss. The development of these provisions is based on historical collection trends, accuracy of estimates within contract margin reporting, as well as the expectation that collection patterns and margin reporting will continue to adhere to patterns observed in recent years. These expectations are formed based on trends observed, as well as current and expected future conditions.

As of March 31, 2023, the Company had approximately $259,881 of obligations under new contracts and remaining performance obligations, which is also referred to as backlog. Approximately 8.9% of the March 31, 2023 backlog was related to projects that are anticipated to extend beyond March 31, 2024.