Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.19.2
Revenue
6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Revenue
Revenue

Disaggregated Revenue
Our revenues are derived from contract services performed for the 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 and six months ended June 30, 2019 are as follows (in thousands):
 
 
Three months ended June 30, 2019
Customer
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
USPS
 
$
42,112

 
$

 
$

 
$
42,112

DoD
 
6,461

 
260

 
68,359

 
75,080

Commercial
 
5,090

 
54,086

 

 
59,176

Other government
 
142

 
651

 
11,950

 
12,743

 
 
$
53,805

 
$
54,997

 
$
80,309

 
$
189,111


 
 
Six months ended June 30, 2019
Customer
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
USPS
 
$
84,795

 
$

 
$

 
$
84,795

DoD
 
11,303

 
1,155

 
125,323

 
137,781

Commercial
 
9,070

 
102,561

 
1,104

 
112,735

Other government
 
341

 
651

 
22,727

 
23,719

 
 
$
105,509

 
$
104,367

 
$
149,154

 
$
359,030


A summary of revenues for our operating groups by customer for the three and six months ended June 30, 2018 are as follows (in thousands):
 
 
Three months ended June 30, 2018
Customer
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
USPS
 
$
43,089

 
$

 
$

 
$
43,089

DoD
 
7,525

 
1,025

 
73,637

 
82,187

Commercial
 
3,413

 
34,037

 
31

 
37,481

Other government
 
236

 
742

 
6,659

 
7,637

 
 
$
54,263

 
$
35,804

 
$
80,327

 
$
170,394


 
 
Six months ended June 30, 2018
Customer
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
USPS
 
$
87,120

 
$

 
$

 
$
87,120

DoD
 
15,701

 
2,240

 
151,899

 
169,840

Commercial
 
6,799

 
65,572

 
233

 
72,604

Other government
 
507

 
742

 
16,478

 
17,727

 
 
$
110,127

 
$
68,554

 
$
168,610

 
$
347,291



A summary of revenues for our operating groups by contract type for the three and six months ended June 30, 2019 are as follows (in thousands):
 
 
Three months ended June 30, 2019
Contract Type
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
Cost-type
 
$

 
$
169

 
$
33,496

 
$
33,665

Fixed-price
 
53,805

 
25,056

 
19,153

 
98,014

Time and materials
 

 
29,772

 
27,660

 
57,432

Total revenues
 
$
53,805

 
$
54,997

 
$
80,309

 
$
189,111


 
 
Six months ended June 30, 2019
Contract Type
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
Cost-type
 
$

 
$
381

 
$
61,336

 
$
61,717

Fixed-price
 
105,509

 
48,992

 
39,020

 
193,521

Time and materials
 

 
54,994

 
48,798

 
103,792

Total revenues
 
$
105,509

 
$
104,367

 
$
149,154

 
$
359,030


A summary of revenues for our operating groups by contract type for the three and six months ended June 30, 2018 are as follows (in thousands):
 
 
Three months ended June 30, 2018
Contract Type
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
Cost-type
 
$

 
$
701

 
$
41,801

 
$
42,502

Fixed-price
 
54,263

 
19,869

 
17,204

 
91,336

Time and materials
 

 
15,234

 
21,322

 
36,556

Total revenues
 
$
54,263

 
$
35,804

 
$
80,327

 
$
170,394


 
 
Six months ended June 30, 2018
Contract Type
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
Cost-type
 
$

 
$
1,098

 
$
92,922

 
$
94,020

Fixed-price
 
110,127

 
39,373

 
32,343

 
181,843

Time and materials
 

 
28,083

 
43,345

 
71,428

Total revenues
 
$
110,127

 
$
68,554

 
$
168,610

 
$
347,291



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 $46.0 million at June 30, 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 $4.9 million at June 30, 2019, primarily due to revenue recognized in excess of advance payments received. For the six months ended June 30, 2019 and June 30, 2018, we recognized revenue that was previously included in the beginning balance of contract liabilities of $2.0 million and $7.7 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 and six months ended June 30, 2019 and June 30, 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 and six months ended June 30, 2019 and June 30, 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 June 30, 2019, the aggregate amount of transaction prices allocated to unsatisfied or partially unsatisfied performance obligations was $269 million. Performance obligations expected to be satisfied within one year and greater than one year are 97% and 3%, 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 six months ended June 30, 2019 and June 30, 2018, revenue recognized from performance obligations satisfied in prior periods was not material.