Revenue (Tables)

3 Months Ended

Mar. 31, 2018

Summary of Revenue Disaggregated by Service Type and Contract Type

The following tables display Centuri’s revenue from contracts with customers disaggregated by service type and contract type:

(Thousands of dollars)	Three Months Ended				Twelve Months Ended
	March 31				March 31
	2018		2017		2018		2017
Service Types:
Replacement gas construction	$	157,351	$	120,438	$	824,979	$	727,518
New gas construction		36,197		33,079		168,494		208,289
Other construction		66,469		38,618		320,893		189,258
Total Construction revenues	$	260,017	$	192,135	$	1,314,366	$	1,125,065

(Thousands of dollars)	Three Months Ended				Twelve Months Ended
	March 31				March 31
	2018		2017		2018		2017
Contract Types:
Master services agreement	$	194,464	$	147,192	$	932,804	$	841,468
Bid contract		65,553		44,943		381,562		283,597
Total Construction revenues	$	260,017	$	192,135	$	1,314,366	$	1,125,065
Unit priced contracts	$	234,285	$	177,671	$	1,176,699	$	964,023
Fixed priced contracts		25,732		14,464		137,667		161,042
Total Construction revenues	$	260,017	$	192,135	$	1,314,366	$	1,125,065

Summary of Information about Receivables, Revenue Earned on Contracts in Progress in Excess of Billings, Which are Included Within Accounts Receivable, and Amounts Billed in Excess of Revenue Earned on Contracts

The following table provides information about receivables, revenue earned on contracts in progress in excess of billings, which are included within accounts receivable, net of allowances and amounts billed in excess of revenue earned on contracts, which is included in other current liabilities as of March 31, 2018 and December 31, 2017 on the Company’s Condensed Consolidated Balance Sheets:

(Thousands of dollars)	March 31, 2018		December 31, 2017
Contracts receivable, net	$	130,288	$	221,859
Revenue earned on contracts in progress in excess of billings		57,745		5,768
Amounts billed in excess of revenue earned on contracts		8,102		9,602

Schedule of Construction Services Contracts Receivable

Construction services contracts receivable consists of the following:

(Thousands of dollars)	March 31, 2018
Billed on completed contracts and contracts in progress	$	129,838
Other receivables		467
Contracts receivable, gross		130,305
Allowance for doubtful accounts		(17	)
Contracts receivable, net	$	130,288

Summary of Revenue on Contracts in Progress in Excess of Billings within Accounts Receivable Net of Allowances and Amounts Billed in Excess of Revenue Earned

Management recognizes revenue on contracts in progress in excess of billings (a contract asset) within Accounts receivable, net of allowances in its balance sheets, and amounts billed in excess of revenue earned (a contract liability) in Other current liabilities. However, the following shows the significant changes in these asset and liability balances associated with Centuri since January 1, 2018:

(Thousands of dollars)	March 31, 2018
	Revenue earned on contracts in progress in excess of billings			Amounts billed in excess of revenue earned on contracts
Revenue recognized that was included in the amounts billed in excess of revenue earned on contracts balance at the beginning of the period	$	—		$	(9,602	)
Increases due to amounts billed to customers in excess of revenue earned during the period		—			8,102
Transferred to contracts receivable from revenue earned on contracts in progress in excess of billings recognized at the beginning of the period		(5,768	)		—
Increase from the reclassification of contract assets due to the adoption of topic 606		51,744
Increases from contract assets, contingent on a future event occurring		6,001			—

Accounting Standards Update 2014-09 [Member]

Summary of Revenue Disaggregated by Service Type and Contract Type

Gas operating revenues on the Condensed Consolidated Statements of Income of both the Company and Southwest include revenue from contracts with customers, which is shown disaggregated by customer type, and various categories of revenue:

	Three Months Ended						Twelve Months Ended
	March 31						March 31
(Thousands of dollars)	2018			2017			2018			2017
Residential	$	344,611		$	342,737		$	859,078		$	850,798
Small commercial		87,943			81,125			250,331			236,819
Large commercial		15,440			13,595			54,224			49,610
Industrial/other		6,510			5,451			23,085			19,453
Transportation		24,054			22,732			89,081			86,446
Revenue from contracts with customers		478,558			465,640			1,275,799			1,243,126
Alternative revenue program revenues (deferrals)		27,209			(4,232	)		66,788			12,790
Other revenues (a)		(11,454	)		1,194			(8,568	)		2,998
Total Gas operating revenues	$	494,313		$	462,602		$	1,334,019		$	1,258,914

(a) Includes various other revenues, which were offset by $14 million of tax reform savings revenue adjustments for both periods ended March 31, 2018.