Annual report pursuant to Section 13 and 15(d)

Revenue Recognition

v3.20.1
Revenue Recognition
12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Revenue Recognition
Disaggregated Revenue
Our revenues are derived from contract services performed for 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 year ended December 31, 2019 is as follows (in thousands):
Customer
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
DoD
 
24,246

 
3,775

 
276,313

 
304,334

Other government
 
168,113

 
1,885

 
35,777

 
205,775

Commercial
 
22,161

 
218,886

 
1,471

 
242,518

 
 
$
214,520

 
$
224,546

 
$
313,561

 
$
752,627



A summary of revenues for our operating groups by customer for the year ended December 31, 2018 is as follows (in thousands):
Customer
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
DoD
 
24,280

 
7,387

 
302,827

 
334,494

Other government
 
176,200

 
2,172

 
33,746

 
212,118

Commercial
 
14,329

 
135,864

 
413

 
150,606

 
 
$
214,809

 
$
145,423

 
$
336,986

 
$
697,218



A summary of revenues for our operating groups by contract type for the year ended December 31, 2019 is as follows (in thousands):
Contract Type
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
Cost-type
 
$

 
$
696

 
$
144,600

 
$
145,296

Fixed-price
 
214,520

 
104,806

 
78,163

 
397,489

Time and materials
 

 
119,044

 
90,798

 
209,842

Total revenues
 
$
214,520

 
$
224,546

 
$
313,561

 
$
752,627


A summary of revenues for our operating groups by contract type for the year ended December 31, 2018 is as follows (in thousands):
Contract Type
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
Cost-type
 
$

 
$
4,863

 
$
188,867

 
$
193,730

Fixed-price
 
214,809

 
84,600

 
70,669

 
370,078

Time and materials
 

 
55,960

 
77,450

 
133,410

Total revenues
 
$
214,809

 
$
145,423

 
$
336,986

 
$
697,218



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 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 $46.3 million at December 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, were $5.0 million at December 31, 2018 and $5.0 million at December 31, 2019. For the year ended December 31, 2019 and 2018, we recognized revenue of $2.2 million and $7.9 million, respectively, that was previously included in the beginning balance of contract liabilities.

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 year ended December 31, 2019 and 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 year ended December 31, 2019 and 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 December 31, 2019, the aggregate amount of transaction prices allocated to unsatisfied or partially unsatisfied performance obligations was $213 million. Performance obligations expected to be satisfied within one year and greater than one year are 95% and 5%, 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 year ended December 31, 2019, revenue recognized from performance obligations satisfied in prior periods was not material.