Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.21.2
Revenue
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2021 are as follows (in thousands):
Three months ended September 30, 2021
Aviation Fleet Federal and Defense Total
Commercial $ 72,542  $ 20,690  $ 931  $ 94,163 
DoD —  2,739  58,123  60,862 
Other government 582  36,839  8,136  45,557 
$ 73,124  $ 60,268  $ 67,190  $ 200,582 
Nine months ended September 30, 2021
Aviation Fleet Federal and Defense Total
Commercial $ 164,353  $ 52,757  $ 1,434  $ 218,544 
DoD —  10,517  162,984  173,501 
Other government 657  109,798  38,175  148,630 
$ 165,010  $ 173,072  $ 202,593  $ 540,675 


A summary of revenues for our operating segments by customer for the three and nine months ended September 30, 2020 are as follows (in thousands):
Three months ended September 30, 2020
Aviation Fleet Federal and Defense Total
Commercial $ 36,075  $ 12,471  $ 428  $ 48,974 
DoD 104  7,275  49,556  56,935 
Other government 39  43,973  15,584  59,596 
$ 36,218  $ 63,719  $ 65,568  $ 165,505 

Nine months ended September 30, 2020
Aviation Fleet Federal and Defense Total
Commercial $ 125,295  $ 29,818  $ 1,317  $ 156,430 
DoD 941  16,937  168,078  185,956 
Other government 283  141,390  27,579  169,252 
$ 126,519  $ 188,145  $ 196,974  $ 511,638 
A summary of revenues for our operating segments by type for the three and nine months ended September 30, 2021 is as follows (in thousands):
Three months ended September 30, 2021
Aviation Fleet Federal and Defense Total
Repair $ 18,714  $ —  $ —  $ 18,714 
Distribution 54,410  60,268  —  114,678 
Cost Plus Contract —  —  26,775  26,775 
Fixed Price Contract —  —  25,729  25,729 
T&M Contract —  —  14,686  14,686 
     Total $ 73,124  $ 60,268  $ 67,190  $ 200,582 

Nine months ended September 30, 2021
Aviation Fleet Federal and Defense Total
Repair $ 56,051  $ —  $ —  $ 56,051 
Distribution 108,959  173,072  —  282,031 
Cost Plus Contract —  —  65,139  65,139 
Fixed Price Contract —  —  82,090  82,090 
T&M Contract —  —  55,364  55,364 
     Total $ 165,010  $ 173,072  $ 202,593  $ 540,675 

A summary of revenues for our operating segments by type for the three and nine months ended September 30, 2020 is as follows (in thousands):
Three months ended September 30, 2020
Aviation Fleet Federal and Defense Total
Repair $ 17,280  $ —  $ —  $ 17,280 
Distribution 18,938  63,719  —  82,657 
Cost Plus Contract —  —  18,194  18,194 
Fixed Price Contract —  —  32,937  32,937 
T&M Contract —  —  14,437  14,437 
     Total $ 36,218  $ 63,719  $ 65,568  $ 165,505 

Nine months ended September 30, 2020
Aviation Fleet Federal and Defense Total
Repair $ 66,936  $ —  $ —  $ 66,936 
Distribution 59,583  188,145  —  247,728 
Cost Plus Contract —  —  61,182  61,182 
Fixed Price Contract —  —  107,932  107,932 
T&M Contract —  —  27,860  27,860 
     Total $ 126,519  $ 188,145  $ 196,974  $ 511,638 
Contract Balances
Unbilled receivables (contract assets) 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 as of December 31, 2020 to $30.8 million as of September 30, 2021, primarily due to the unbilled receivables acquired as a result of the HSS acquisition and revenues recognized as performance obligations are satisfied in excess of billings. Contract liabilities, which are included in accrued expenses and other current liabilities in our consolidated balance sheets, decreased from $10.1 million as of December 31, 2020 to $8.6 million as of September 30, 2021, primarily due to revenue recognized in excess of advance payments received. For the nine months ended September 30, 2021 and September 30, 2020, we recognized revenue that was previously included in the beginning balance of contract liabilities of $2.7 million and $2.0 million, 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 57% of our revenues for the three and nine months ended September 30, 2021 and 50% of our revenues for the three and nine months ended September 30, 2020. Revenues from products and services transferred to customers over time accounted for approximately 43% of our revenues for the three and nine months ended September 30, 2021 and 50% of our revenues for the three and nine months ended September 30, 2020, primarily related to revenues in our Federal and Defense segment and MRO services in our Aviation segment.
As of September 30, 2021, the aggregate amount of transaction prices allocated to unsatisfied or partially unsatisfied performance obligations was $218 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 nine months ended September 30, 2021 and September 30, 2020, revenue recognized from performance obligations satisfied in prior periods was not material.