Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

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Revenue Recognition
6 Months Ended
Sep. 30, 2018
Revenue Recognition [Abstract]  
Revenue Recognition

3. Revenue Recognition

 

Adoption of New Accounting Guidance on Revenue Recognition

 

Effective April 1, 2018, we adopted the new accounting guidance on revenue recognition using the modified retrospective approach. Based on the Company’s evaluation process and review of our contracts with customers, the timing and amount of revenue recognized under the new guidance is consistent with our revenue recognition policy under previous guidance. The new guidance has not had a material impact on our results of operations, cash flows or financial condition.

 

Our customer contracts generally include payment terms which vary by the type of customer and services offered. Customer payments are generally due within 30 to 45 days upon receipt of invoice. The timing between satisfaction of a given performance obligation and invoicing is not significant. In certain situations we may require payment prior to delivery of services to the customer, in which cases deferred revenue is recorded. Deferred revenue was not material as of September 30, 2018.

 

Revenue Recognition and Service Types

 

We provide armed and unarmed uniformed security personnel for access control, loss prevention, mobile patrols, traffic control, security console or system operators and fire safety directors, as well as provide personnel for reception, concierge and front desk or doorman operations. We also provide aviation security services and aviation passenger services such as passenger and cargo screening, baggage screening, wheelchair escort services, special escort services in secured areas as required and skycap services. Our contracts contain single performance obligations. We recognize revenue from these performance obligations over time, as services are performed, in amounts that reflect the consideration we expect to be entitled to receive in exchange for the services we provide, net of applicable taxes. Generally, revenues from all services rendered are based on contractual rates per hour or a specific cost per defined unit of activity.

 

We generally determine standalone selling prices based on the prices included in the customer contracts. The price as specified in our customer contracts is generally considered the standalone selling price.

 

Practical Expedients and Exemptions

 

We recognize revenue based on contractual rates over time for which we have the right to invoice for services performed. As allowed under the new guidance, we are not required to disclose the amount of unsatisfied performance obligations.

 

Disaggregation of Revenues

 

The following table presents revenue disaggregated by service type, substantially all of which represents services that are transferred to customers over time:

 

    Six Months Ended September 30, 2018  
Service Types   Security
Division
    Aviation
Division
    Total  
Security services   $ 52,413,928     $ 20,440,076     $ 72,854,004  
Aviation passenger services     -       12,170,110       12,170,110  
    $ 52,413,928     $ 32,610,186     $ 85,024,114  

  

Accounts Receivable, Contract Assets and Contract Liabilities

 

We record accounts receivable when our right to consideration becomes unconditional. We record contract liabilities (deferred revenue) when payments are received prior to the satisfaction of the related performance obligations. The current portion of our contract liabilities is included in accrued liabilities in our Consolidated Balance Sheets. We did not have any material contract assets or long-term contract liabilities as of September 30, 2018.