XML 23 R12.htm IDEA: XBRL DOCUMENT v3.23.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
As described in Note 1, our operations are assessed based on two reportable segments.
Disaggregated Revenues
Revenues by geographic area and customer type were as follows:
 Three Months Ended June 30, 2023Three Months Ended June 30, 2022
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
 (In thousands)
United States:
Government$459,334 $— $459,334 $410,793 $— $410,793 
Non-Government28,081 14,918 42,999 22,236 8,856 31,092 
$487,415 $14,918 $502,333 $433,029 $8,856 $441,885 
Canada:
Government$37 $— $37 $— $— $— 
Non-Government385 100,093 100,478 841 102,757 103,598 
$422 $100,093 $100,515 $841 $102,757 $103,598 
Other:
Government$1,155 $— $1,155 $725 $— $725 
Non-Government2,975 5,909 8,884 1,942 6,909 8,851 
$4,130 $5,909 $10,039 $2,667 $6,909 $9,576 
Segment Revenues$491,967 $120,920 612,887 $436,537 $118,522 555,059 
Eliminations(442)(851)
Revenues$612,445 $554,208 
 Six Months Ended June 30, 2023Six Months Ended June 30, 2022
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
 (In thousands)
United States:
Government$890,912 $— $890,912 $817,040 $— $817,040 
Non-Government51,773 26,196 77,969 45,794 16,070 61,864 
$942,685 $26,196 $968,881 $862,834 $16,070 $878,904 
Canada:
Government$88 $— $88 $— $— $— 
Non-Government593 193,112 193,705 1,819 193,155 194,974 
$681 $193,112 $193,793 $1,819 $193,155 $194,974 
Other:
Government$2,303 $— $2,303 $725 $— $725 
Non-Government6,184 10,536 16,720 2,936 9,247 12,183 
$8,487 $10,536 $19,023 $3,661 $9,247 $12,908 
Segment Revenues$951,853 $229,844 1,181,697 $868,314 $218,472 1,086,786 
Eliminations(892)(1,840)
Revenues$1,180,805 $1,084,946 
Revenues by timing of transfer of goods or services were as follows:
 Three Months Ended June 30, 2023Three Months Ended June 30, 2022
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
 (In thousands)
Over time$486,730 $94,764 $581,494 $436,537 $104,580 $541,117 
Point-in-time5,237 26,156 31,393 — 13,942 13,942 
Segment Revenues$491,967 $120,920 612,887 $436,537 $118,522 555,059 
Eliminations(442)(851)
Revenues$612,445 $554,208 
 Six Months Ended June 30, 2023Six Months Ended June 30, 2022
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
 (In thousands)
Over time$941,541 $190,716 $1,132,257 $868,286 $190,495 $1,058,781 
Point-in-time10,312 39,128 49,440 28 27,977 28,005 
Segment Revenues$951,853 $229,844 1,181,697 $868,314 $218,472 1,086,786 
Eliminations(892)(1,840)
Revenues$1,180,805 $1,084,946 
Revenues by contract type were as follows:
 Three Months Ended June 30, 2023Three Months Ended June 30, 2022
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
 (In thousands)
Fixed-Price Incentive Fee$327,270 $2,604 $329,874 $324,948 $1,969 $326,917 
Firm-Fixed-Price77,323 77,570 154,893 60,672 75,351 136,023 
Cost-Plus Fee86,410 — 86,410 49,970 — 49,970 
Time-and-Materials964 40,746 41,710 947 41,202 42,149 
Segment Revenues$491,967 $120,920 612,887 $436,537 $118,522 555,059 
Eliminations(442)(851)
Revenues$612,445 $554,208 
 Six Months Ended June 30, 2023Six Months Ended June 30, 2022
Government OperationsCommercial OperationsTotalGovernment OperationsCommercial OperationsTotal
 (In thousands)
Fixed-Price Incentive Fee$619,429 $6,788 $626,217 $626,373 $4,516 $630,889 
Firm-Fixed-Price172,041 149,122 321,163 144,238 153,333 297,571 
Cost-Plus Fee159,225 — 159,225 95,488 — 95,488 
Time-and-Materials1,158 73,934 75,092 2,215 60,623 62,838 
Segment Revenues$951,853 $229,844 1,181,697 $868,314 $218,472 1,086,786 
Eliminations(892)(1,840)
Revenues$1,180,805 $1,084,946 
Performance Obligations
As we progress on our contracts and the underlying performance obligations for which we recognize revenue over time, we refine our estimates of variable consideration and total estimated costs at completion, which impact the overall profitability on our contracts and performance obligations. Changes in these estimates result in the recognition of cumulative catch-up adjustments that impact our revenues and/or costs of contracts. During the three and six months ended June 30, 2023, we recognized net unfavorable changes in estimates related to contracts that recognize revenue over time that resulted in decreases in revenues of $5.2 million and $13.0 million, respectively. During the three and six months ended June 30, 2022, we recognized net changes in estimates related to contracts that recognize revenue over time that resulted in increases (decreases) in revenues of $2.1 million and $(3.1) million, respectively, and increases in cost of operations of $2.2 million for both the three and six months ended June 30, 2022. Included in these amounts are contract adjustments for cost overruns related to the manufacture of non-nuclear components being produced within our Government Operations segment. We recognized decreases in operating income of $11.3 million for the three and six months ended June 30, 2022 related to this matter which resulted in decreases in earnings per share of $0.09 for the three and six months ended June 30, 2022. We are pursuing recovery of cost overruns related to this project.
Contract Assets and Liabilities
We include revenues and related costs incurred, plus accumulated contract costs that exceed amounts invoiced to customers under the terms of the contracts, in Contracts in progress. Costs specific to certain contracts for which we recognize revenue at a point in time are also included in Contracts in Progress. We include in Advance billings on contracts billings that exceed accumulated contract costs and revenues recognized over time. Amounts that are withheld on our fixed-price incentive fee contracts are classified within Retainages. Certain of these amounts require conditions other than the passage of time to be achieved, with the remaining amounts only requiring the passage of time. Most long-term contracts contain provisions for progress payments. Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled receivables. Changes in Contracts in progress and Advance billings on contracts are primarily driven by differences in the timing of revenue recognition and billings to our customers. Our fixed-price incentive fee contracts for our Government Operations segment include provisions that result in an increase in retainages on contracts during the first and third quarters of the year, with larger payments received during the second and fourth quarters. Retainages also vary as a result of timing differences between incurring costs and achieving milestones that allow us to recover these amounts.
 June 30,December 31,
 20232022
 (In thousands)
Included in Contracts in progress:
Unbilled receivables$570,763 $521,291 
Retainages$54,374 $48,566 
Advance billings on contracts$87,772 $88,726 
During the three months ended June 30, 2023 and 2022, we recognized $29.7 million and $38.6 million, respectively, of revenues that were in Advance billings on contracts at the beginning of each year. During the six months ended June 30, 2023 and 2022, we recognized $69.2 million and $77.3 million, respectively, of revenues that were in Advance billings on contracts at the beginning of each year.
Remaining Performance Obligations
Remaining performance obligations represent the dollar amount of revenue we expect to recognize in the future from performance obligations on contracts previously awarded and in progress. At June 30, 2023, our remaining performance obligations were $4,115.0 million. We expect to recognize approximately 58% of the revenue associated with our remaining performance obligations by the end of 2024, with the remainder to be recognized thereafter.