Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.19.1
Revenue
3 Months Ended
Mar. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue
Revenue

Disaggregated Revenue
Our revenues are derived from contract services performed for United States Postal Service ("USPS"), United States Department of Defense ("DoD") agencies or federal civilian agencies and from the delivery of products to our clients. Our customers also include various other government agencies and commercial entities.

A summary of revenues for our operating groups by customer for the three months ended March 31, 2019 and 2018 are as follows (in thousands):
 
 
Three months ended March 31, 2019
Customer
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
USPS
 
$
42,683

 
$

 
$

 
$
42,683

DoD
 
4,842

 
895

 
56,964

 
62,701

Commercial
 
3,980

 
48,475

 
1,104

 
53,559

Other government
 
199

 

 
10,777

 
10,976

 
 
$
51,704

 
$
49,370

 
$
68,845

 
$
169,919


 
 
Three months ended March 31, 2018
Customer
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
USPS
 
$
44,031

 
$

 
$

 
$
44,031

DoD
 
8,176

 
1,215

 
78,262

 
87,653

Commercial
 
3,386

 
31,535

 
202

 
35,123

Other government
 
271

 

 
9,819

 
10,090

 
 
$
55,864

 
$
32,750

 
$
88,283

 
$
176,897



A summary of revenues for our operating groups by contract type for the three months ended March 31, 2019 and 2018 are as follows (in thousands):
 
 
Three months ended March 31, 2019
Contract Type
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
Cost-type
 
$

 
$
212

 
$
27,840

 
$
28,052

Fixed-price
 
51,704

 
23,936

 
19,867

 
95,507

Time and materials
 

 
25,222

 
21,138

 
46,360

Total revenues
 
$
51,704

 
$
49,370

 
$
68,845

 
$
169,919


 
 
Three months ended March 31, 2018
Contract Type
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
Cost-type
 
$

 
$
397

 
$
51,121

 
$
51,518

Fixed-price
 
55,864

 
19,504

 
15,139

 
90,507

Time and materials
 

 
12,849

 
22,023

 
34,872

Total revenues
 
$
55,864

 
$
32,750

 
$
88,283

 
$
176,897



Contract Balances
Billed receivables, unbilled receivables (contract assets), and contract liabilities are the results of revenue recognition, customer billing, and timing of payment receipts. Billed receivables, net, represent unconditional rights to consideration under the terms of the contract and include amounts billed and currently due from our customers. Unbilled receivables represent our right to consideration in exchange for goods or services that we have transferred to the customer prior to us having the right to payment for such goods or services. Contract liabilities are recorded when customers remit contractual cash payments in advance of us satisfying related performance obligations under contractual arrangements, including those with performance obligations to be satisfied over a period of time.
We present our unbilled receivables and contract liabilities on a contract-by-contract basis. If a contract liability exists, it is netted against the unbilled receivables balance for that contract. Unbilled receivables increased from $41.3 million at December 31, 2018 to $44.5 million at March 31, 2019, primarily due to revenue recognized in excess of billings. Contract liabilities, which are included in accrued expenses and other current liabilities in our consolidated balance sheet, decreased from $5.0 million at December 31, 2018 to $4.5 million at March 31, 2019, primarily due to revenue recognized in excess of advance payments received. For the three months ended March 31, 2019 and March 31, 2018, we recognized revenue that was previously included in the beginning balance of contract liabilities of $1.5 million and $6.5 million, respectively.
 
Performance Obligations

Our performance obligations are satisfied over time as work progresses or at a point in time. Revenues from products and services transferred to customers over time accounted for approximately 57% of our revenues for the three months ended March 31, 2019 and March 31, 2018, primarily related to revenues in our Federal Services Group and for MRO services in our Aviation Group. Revenues from products and services transferred to customers at a point in time accounted for approximately 43% of our revenues for the three months ended March 31, 2019 and March 31, 2018. The majority of our revenue recognized at a point in time is for the sale of vehicle and aircraft parts in our Supply Chain Management and Aviation groups.
As of March 31, 2019, the aggregate amount of transaction prices allocated to unsatisfied or partially unsatisfied performance obligations was $278 million. Performance obligations expected to be satisfied within one year and greater than one year are 96% and 4%, respectively. We have applied the practical expedient for certain parts sales and MRO services to exclude the amount of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed.

During the three months ended March 31, 2019 and March 31, 2018, revenue recognized from performance obligations satisfied in prior periods was not material.