Revenue (Tables)

9 Months Ended

Sep. 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				Nine Months Ended				Twelve Months Ended
	September 30,				September 30,				September 30,
	2018		2017		2018		2017		2018		2017
Service Types:
Replacement gas construction	$	305,177	$	238,957	$	718,598	$	540,907	$	965,757	$	765,068
New gas construction	50,544		43,216		131,017		116,521		179,872		180,093
Other construction	94,902		97,921		256,229		215,108		334,163		228,415
Total Construction revenues	$	450,623	$	380,094	$	1,105,844	$	872,536	$	1,479,792	$	1,173,576

(Thousands of dollars)	Three Months Ended				Nine Months Ended				Twelve Months Ended
	September 30,				September 30,				September 30,
	2018		2017		2018		2017		2018		2017
Contract Types:
Master services agreement	$	348,274	$	261,576	$	832,813	$	617,129	$	1,101,216	$	831,465
Bid contract	102,349		118,518		273,031		255,407		378,576		342,111
Total Construction revenues	$	450,623	$	380,094	$	1,105,844	$	872,536	$	1,479,792	$	1,173,576
Unit priced contracts	$	368,918	$	332,462	$	948,593	$	782,560	$	1,286,059	$	993,294
Fixed priced contracts	81,705		47,632		157,251		89,976		193,733		180,282
Total Construction revenues	$	450,623	$	380,094	$	1,105,844	$	872,536	$	1,479,792	$	1,173,576

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 contracts receivable and revenue earned on contracts in progress in excess of billings (contract asset), which are both included within Accounts receivable, net of allowances, and amounts billed in excess of revenue earned on contracts (contract liability), which are included in Other current liabilities as of September 30, 2018 and December 31, 2017 on the Company’s Condensed Consolidated Balance Sheets:

(Thousands of dollars)	September 30, 2018		December 31, 2017
Contracts receivable, net	$	191,923	$	221,859
Revenue earned on contracts in progress in excess of billings	85,554		5,768
Amounts billed in excess of revenue earned on contracts	7,192		9,602

Schedule of Construction Services Contracts Receivable

Construction services contracts receivable consists of the following:

(Thousands of dollars)	September 30, 2018
Billed on completed contracts and contracts in progress	$	189,619
Other receivables	2,424
Contracts receivable, gross	192,043
Allowance for doubtful accounts	(120		)
Contracts receivable, net	$	191,923

Accounting Standards Update 2014-09

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				Nine Months Ended				Twelve Months Ended
	September 30,				September 30,				September 30,
(Thousands of dollars)	2018		2017		2018		2017		2018		2017
Residential	$	120,249	$	123,459	$	631,562	$	624,638	$	864,128	$	854,840
Small commercial	40,020		41,656		183,616		173,799		253,330		237,430
Large commercial	11,360		11,475		39,934		37,851		54,462		50,397
Industrial/other	5,390		5,024		17,391		15,518		23,899		20,946
Transportation	19,818		20,545		64,591		64,235		88,115		86,528
Revenue from contracts with customers	196,837		202,159		937,094		916,041		1,283,934		1,250,141
Alternative revenue program revenues (deferrals)	9,094		9,123		46,696		15,026		67,017		21,300
Other revenues (a)	11,592		1,777		3,725		4,756		3,049		4,867
Total Gas operating revenues	$	217,523	$	213,059	$	987,515	$	935,823	$	1,354,000	$	1,276,308

(a) Includes various other revenues, and during the first six months of 2018, included $12.5 million as a reserve against revenue associated with a tax reform savings adjustment. During the third quarter of 2018, amounts previously recognized were reclassified to the various categories of revenue from contracts with customers when incorporated in tariff rates. Refer to Income Taxes in Note 1 – Nature of Operations and Basis of Presentation.