Revenue (Tables)

6 Months Ended

Jun. 30, 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				Six Months Ended				Twelve Months Ended
	June 30,				June 30,				June 30,
	2018		2017		2018		2017		2018		2017
Service Types:
Replacement gas construction		$256,070		$181,512		$413,421		$301,950		$899,537		$733,927
New gas construction		44,276		40,226		80,473		73,305		172,545		197,100
Other construction		94,858		78,569		161,327		117,187		337,181		202,245
Total Construction revenues		$395,204		$300,307		$655,221		$492,442		$1,409,263		$1,133,272

(Thousands of dollars)	Three Months Ended				Six Months Ended				Twelve Months Ended
	June 30,				June 30,				June 30,
	2018		2017		2018		2017		2018		2017
Contract Types:
Master services agreement		$290,075		$208,361		$484,539		$355,553		$1,014,517		$825,980
Bid contract		105,129		91,946		170,682		136,889		394,746		307,292
Total Construction revenues		$395,204		$300,307		$655,221		$492,442		$1,409,263		$1,133,272
Unit priced contracts		$345,390		$272,427		$579,675		$450,098		$1,249,602		$974,107
Fixed priced contracts		49,814		27,880		75,546		42,344		159,661		159,165
Total Construction revenues		$395,204		$300,307		$655,221		$492,442		$1,409,263		$1,133,272

Summary of 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

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 June 30, 2018 and December 31, 2017 on the Company’s Condensed Consolidated Balance Sheets:

(Thousands of dollars)	June 30, 2018		December 31, 2017
Contracts receivable, net	$	187,485	$	221,859
Revenue earned on contracts in progress in excess of billings		86,750		5,768
Amounts billed in excess of revenue earned on contracts		8,592		9,602

Schedule of Construction Services Contracts Receivable

Construction services contracts receivable consists of the following:

(Thousands of dollars)	June 30, 2018
Billed on completed contracts and contracts in progress	$	185,911
Other receivables		1,660
Contracts receivable, gross		187,571
Allowance for doubtful accounts		(86	)
Contracts receivable, net	$	187,485

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 the Company’s Condensed Consolidated 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)	June 30, 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		—			8,592
Transferred to contracts receivable from revenue earned on contracts in progress in excess of billings recognized at the beginning of the period		(5,768	)		—
Increases 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		35,006			—

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 below disaggregated by customer type, and various categories of revenue:

	Three Months Ended				Six Months Ended					Twelve Months Ended
	June 30,				June 30,					June 30,
(Thousands of dollars)	2018		2017		2018			2017		2018			2017
Residential	$	166,702	$	158,442	$	511,313		$	501,179	$	867,338		$	850,344
Small commercial		55,653		51,018		143,596			132,143		254,966			235,684
Large commercial		13,134		12,781		28,574			26,376		54,577			49,561
Industrial/other		5,491		5,043		12,001			10,494		23,533			20,157
Transportation		20,719		20,958		44,773			43,690		88,842			86,457
Revenue from contracts with customers		261,699		248,242		740,257			713,882		1,289,256			1,242,203
Alternative revenue program revenues (deferrals)		10,393		10,135		37,602			5,903		67,046			17,280
Other revenues (a)		3,587		1,785		(7,867	)		2,979		(6,766	)		3,945
Total Gas operating revenues	$	275,679	$	260,162	$	769,992		$	722,764	$	1,349,536		$	1,263,428

(a) Includes various other revenues, including $1.6 million during the three months, and an offset of $12.5 million in both the six months and twelve months ending June 30, 2018 related to tax reform savings adjustments. Refer to Income Taxes in Note 1 – Nature of Operations and Basis of Presentation.