Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.10.0.1
Revenue
6 Months Ended
Jun. 30, 2018
Revenue from Contract with Customer [Abstract]  
Revenue
Revenue

Disaggregated Revenue
Our revenues are derived from contract services performed for 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, 2018 is as follows (in thousands):
 
 
Three months ended June 30, 2018
Customer
 
Supply Chain Management
 
Aviation
 
Federal Services
 
Total
U.S. Postal Services
 
$
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
U.S. Postal Services
 
$
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, 2018 is 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 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 decreased from $47.6 million at adoption of ASC 606 on January 1, 2018 to $38.0 million at June 30, 2018, primarily due to billings in excess of revenue recognized. Contract liabilities, which are included in accrued expenses and other current liabilities in our consolidated balance sheet, decreased from $9.8 million at adoption of ASC 606 on January 1, 2018 to $3.9 million at June 30, 2018, primarily due to revenue recognized in excess of advance payments received. For the three and six months ended June 30, 2018, we recognized revenue of $1.2 million and $7.7 million 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 three and six months ended 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, 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, 2018, the aggregate amount of transaction prices allocated to unsatisfied or partially unsatisfied performance obligations was $339 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 six months ended June 30, 2018, revenue recognized from performance obligations related to prior periods was not material.