XML 24 R9.htm IDEA: XBRL DOCUMENT v3.20.4
Contract Assets and Liabilities
 12 Months Ended
Dec. 31, 2020
Contractors [Abstract]  
Contract Assets and Liabilities Contract Assets and Liabilities
Contracts with customers usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Therefore, contract assets and liabilities are created when the timing of costs incurred on work performed does not coincide with the billing terms, which frequently include retention provisions contained in each contract.
The Company’s consolidated balance sheets present contract assets which contains unbilled revenue and contract retainages associated with contract work that has been completed and billed but not paid by customers, pursuant to retainage provisions, that are generally due once the job is completed and approved. The allowance for doubtful accounts associated with contract assets was $0.4 million as of December 31, 2020 and $0.1 million as of 2019.
Contract assets consisted of the following at December 31:
(in thousands)20202019Change
Unbilled revenue$97,543 $126,087 $(28,544)
Contract retainages, net88,260 91,022 (2,762)
Contract assets$185,803 $217,109 $(31,306)
The Company’s consolidated balance sheets present contract liabilities which contains deferred revenue (previously identified as billings in excess of costs and estimated earnings on uncompleted contracts) and an accrual for contracts in a loss provision.
Contract liabilities consisted of the following at December 31:
(in thousands)20202019Change
Deferred revenue$155,570 $102,673 $52,897 
Accrued loss provision2,826 2,813 13 
Contract liabilities$158,396 $105,486 $52,910 
The following table provides information about contract assets and contract liabilities from contracts with customers:
(in thousands)20202019Change
Contract assets$185,803 $217,109 $(31,306)
Contract liabilities(158,396)(105,486)(52,910)
Net contract assets (liabilities)$27,407 $111,623 $(84,216)
The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing of the Company’s billings in relation to its performance of work along with contract assets and contract liabilities acquired in the CSI acquisition. The amounts of revenues recognized in the period that were included in the opening contract liability balances were $72.2 million and $39.2 million for the year ended December 31, 2020 and 2019, respectively. This revenue consists primarily of work performed on previous billings to customers.
The net asset position for contracts in process consisted of the following at December 31:
(in thousands)20202019
Costs and estimated earnings on uncompleted contracts$3,921,376 $3,532,886 
Less: billings to date3,979,403 3,509,472 
$(58,027)$23,414 
The net asset position for contracts in process is included within the contract asset and contract liability in the accompanying consolidated balance sheets as follows at December 31:
(in thousands)20202019
Unbilled revenue$97,543 $126,087 
Deferred revenue(155,570)(102,673)
$(58,027)$23,414