Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.21.1
Revenue
 3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregated Revenue
Our revenues are derived from the delivery of products to our customers and from contract services performed for the DoD or federal civilian agencies. Our customers also include various other government agencies and commercial clients.

A summary of revenues for our operating segments by customer for the three months ended March 31, 2021 are as follows (in thousands):
Three months ended March 31, 2021
Aviation Fleet Federal and Defense Total
Commercial $ 44,346  $ 14,437  $ 318  $ 59,101 
DoD —  3,102  42,786  45,888 
Other government 25  37,208  22,759  59,992 
$ 44,371  $ 54,747  $ 65,863  $ 164,981 
A summary of revenues for our operating segments by customer for the three months ended March 31, 2020 are as follows (in thousands):
Three months ended March 31, 2020
Aviation Fleet Federal and Defense Total
Commercial $ 58,050  $ 8,822  $ 422  $ 67,294 
DoD —  4,567  59,567  64,134 
Other government 30  39,815  6,145  45,990 
$ 58,080  $ 53,204  $ 66,134  $ 177,418 

A summary of revenues for our operating segments by type for the three months ended March 31, 2021 is as follows (in thousands):
Three months ended March 31, 2021
Aviation Fleet Federal and Defense Total
Repair $ 18,316  $ —  $ —  $ 18,316 
Distribution 26,055  54,747  —  80,802 
Cost Plus Contract —  —  16,551  16,551 
Fixed Price Contract —  —  23,931  23,931 
T&M Contract —  —  25,381  25,381 
     Total $ 44,371  $ 54,747  $ 65,863  $ 164,981 

A summary of revenues for our operating segments by type for the three months ended March 31, 2020 is as follows (in thousands):
Three months ended March 31, 2020
Aviation Fleet Federal and Defense Total
Repair $ 32,808  $ —  $ —  $ 32,808 
Distribution 25,272  53,204  —  78,476 
Cost Plus Contract —  —  19,681  19,681 
Fixed Price Contract —  —  38,916  38,916 
T&M Contract —  —  7,537  7,537 
     Total $ 58,080  $ 53,204  $ 66,134  $ 177,418 

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 $22.4 million at December 31, 2020 to $43.7 million at March 31, 2021, primarily due to revenue recognized on a U.S. Department of Justice contract for the first quarter of 2021 which was subsequently billed in the second quarter of 2021. Contract liabilities, which are included in accrued expenses and other current liabilities in our consolidated balance sheet, increased from $10.1 million at December 31, 2020 to
$16.0 million at March 31, 2021, primarily due to advance payments received in excess of revenue recognized. For the three months ended March 31, 2021 and March 31, 2020, we recognized revenue that was previously included in the beginning balance of contract liabilities of $860 thousand and $700 thousand, respectively.


Performance Obligations

Our performance obligations are satisfied either at a point in time or over time as work progresses. The majority of our revenue recognized at a point in time is for the sale of vehicle and aircraft parts in our Fleet and Aviation segments. Revenues from products and services transferred to customers at a point in time accounted for approximately 49% of our revenues for the three months ended March 31, 2021 and 43% of our revenues for the three months ended March 31, 2020. Revenues from products and services transferred to customers over time accounted for approximately 51% of our revenues for the three months ended March 31, 2021 and 57% of our revenues for the three months ended March 31, 2020, primarily related to revenues in our Federal and Defense segment and MRO services in our Aviation segment.
As of March 31, 2021, the aggregate amount of transaction prices allocated to unsatisfied or partially unsatisfied performance obligations was $188 million. Performance obligations expected to be satisfied within one year and greater than one year are 90% and 10%, 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, 2021 and March 31, 2020, revenue recognized from performance obligations satisfied in prior periods was not material.