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Revenue Recognition | 9 Months Ended
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Sep. 30, 2022
Revenue From Contract With Customer [Abstract] |
Revenue Recognition | NOTE 8 – REVENUE RECOGNITION Disaggregation of Revenue The Company disaggregates revenue from clients, most of which is earned over time, into categories that depict how the nature, amount and uncertainty of revenue and cash flows are affected by economic and business factors. Those categories are client market, client type, and contract mix. Client markets provide insight into the breadth of the Company’s expertise. In classifying revenue by client market, the Company attributes revenue from a client to the market that the Company believes is the client’s primary market. The Company also classifies revenue by the type of entity for which it does business, which is an indicator of the diversity of its client base. The Company attributes revenue generated as a subcontractor to a commercial company as government revenue when the ultimate client is a government agency or department. Disaggregation by contract mix provides insight in terms of the degree of performance risk that the Company has assumed. Fixed-price contracts are considered to provide the highest amount of performance risk as the Company is required to deliver a scope of work or level of effort for a negotiated fixed price. Time-and-materials contracts require the Company to provide skilled employees on contracts for negotiated fixed hourly rates. Since the Company is not required to deliver a scope of work, but merely skilled employees, it considers these contracts to be less risky than a fixed-price agreement. Cost-based contracts are considered to provide the lowest amount of performance risk since the Company is generally reimbursed for all contract costs incurred in performance of contract deliverables with only the amount of incentive or award fees (if applicable) dependent on the achievement of negotiated performance requirements.
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
|  | Dollars |  |  | Percent |  |  | Dollars |  |  | Percent |  |  | Dollars |  |  | Percent |  |  | Dollars |  | Percent |
Client Markets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Energy, environment, and infrastructure |  | $ | 166,956 |  |  |  | 36 | % |  | $ | 156,384 |  |  |  | 40 | % |  | $ | 483,415 |  |  |  | 37 | % |  | $ | 486,945 |  |  | 42 | %
Health, education, and social programs |  |  | 249,034 |  |  |  | 53 | % |  |  | 182,292 |  |  |  | 46 | % |  |  | 663,739 |  |  |  | 51 | % |  |  | 508,161 |  |  | 43 | %
Safety and security |  |  | 33,760 |  |  |  | 7 | % |  |  | 28,311 |  |  |  | 7 | % |  |  | 96,568 |  |  |  | 7 | % |  |  | 89,130 |  |  | 8 | %
Consumer and financial |  |  | 18,027 |  |  |  | 4 | % |  |  | 27,073 |  |  |  | 7 | % |  |  | 60,633 |  |  |  | 5 | % |  |  | 80,827 |  |  | 7 | %
Total |  | $ | 467,777 |  |  |  | 100 | % |  | $ | 394,060 |  |  |  | 100 | % |  | $ | 1,304,355 |  |  |  | 100 | % |  | $ | 1,165,063 |  |  | 100 | %
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
|  | Dollars |  |  | Percent |  |  | Dollars |  |  | Percent |  |  | Dollars |  |  | Percent |  |  | Dollars |  | Percent |
Client Type: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. federal government |  | $ | 271,255 |  |  |  | 58 | % |  | $ | 195,153 |  |  |  | 50 | % |  | $ | 714,993 |  |  |  | 55 | % |  | $ | 553,378 |  |  | 48 | %
U.S. state and local government |  |  | 65,613 |  |  |  | 14 | % |  |  | 58,792 |  |  |  | 15 | % |  |  | 195,791 |  |  |  | 15 | % |  |  | 174,446 |  |  | 15 | %
International government |  |  | 23,075 |  |  |  | 5 | % |  |  | 32,697 |  |  |  | 8 | % |  |  | 78,978 |  |  |  | 6 | % |  |  | 107,850 |  |  | 9 | %
Total Government |  |  | 359,943 |  |  |  | 77 | % |  |  | 286,642 |  |  |  | 73 | % |  |  | 989,762 |  |  |  | 76 | % |  |  | 835,674 |  |  | 72 | %
Commercial |  |  | 107,834 |  |  |  | 23 | % |  |  | 107,418 |  |  |  | 27 | % |  |  | 314,593 |  |  |  | 24 | % |  |  | 329,389 |  |  | 28 | %
Total |  | $ | 467,777 |  |  |  | 100 | % |  | $ | 394,060 |  |  |  | 100 | % |  | $ | 1,304,355 |  |  |  | 100 | % |  | $ | 1,165,063 |  |  | 100 | %
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
|  | Dollars |  |  | Percent |  |  | Dollars |  |  | Percent |  |  | Dollars |  |  | Percent |  |  | Dollars |  | Percent |
Contract Mix: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Time-and-materials |  | $ | 188,758 |  |  |  | 40 | % |  | $ | 157,627 |  |  |  | 40 | % |  | $ | 523,635 |  |  |  | 40 | % |  | $ | 479,712 |  |  | 41 | %
Fixed price |  |  | 210,810 |  |  |  | 45 | % |  |  | 166,053 |  |  |  | 42 | % |  |  | 580,738 |  |  |  | 45 | % |  |  | 473,810 |  |  | 41 | %
Cost-based |  |  | 68,209 |  |  |  | 15 | % |  |  | 70,380 |  |  |  | 18 | % |  |  | 199,982 |  |  |  | 15 | % |  |  | 211,541 |  |  | 18 | %
Total |  | $ | 467,777 |  |  |  | 100 | % |  | $ | 394,060 |  |  |  | 100 | % |  | $ | 1,304,355 |  |  |  | 100 | % |  | $ | 1,165,063 |  |  | 100 | %
Contract Balances: Contract assets consist primarily of unbilled amounts resulting from long-term contracts when revenue recognized exceeds the amount billed often due to billing schedule timing. Contract liabilities result from advance payments received on a contract or from billings in excess of revenue recognized on long-term contracts due to billing schedule timing. The following table summarizes the contract balances as of September 30, 2022 and December 31, 2021:
|  | September 30, 2022 |  |  | December 31, 2021 |  |  | $ Change |  |  | % Change |
Contract assets |  | $ | 196,811 |  |  | $ | 137,867 |  |  | $ | 58,944 |  |  |  | 42.8 | %
Contract liabilities |  |  | (24,599 | ) |  |  | (39,665 | ) |  |  | 15,066 |  |  |  | (38.0 | %)
Net contract assets (liabilities) |  | $ | 172,212 |  |  | $ | 98,202 |  |  | $ | 74,010 |  |  |  | 75.4 | %
The net contract assets (liabilities) as of September 30, 2022 increased by $74.0 million as compared to December 31, 2021. The increase in net contract assets (liabilities) is primarily due to the timing difference between the performance of services and billings to and payments from customers. The increase of $58.9 million in contract assets includes $9.9 million at September 30, 2022 from SemanticBits which was acquired during 2022. There were no material changes to contract balances due to impairments or credit losses during the period. During the nine months ended September 30, 2022 and 2021, the Company recognized $27.1 million and $21.7 million in revenue related to the contract liabilities balance at December 31, 2021 and 2020, respectively. Performance Obligations: The Company had $1.4 billion in unfulfilled performance obligations as of September 30, 2022 which primarily reflect the future delivery of services for which revenue will be recognized over time. The obligations relate to continued or additional services required on contracts, including those that are either non-cancellable or have substantive termination penalties, and were generally valued using an estimated cost-plus margin approach, with variable consideration being estimated at the most likely amount. The amounts exclude marketing offers, which are negotiated but unexercised contract options and indefinite delivery/indefinite quantity (IDIQ) and similar arrangements that provided a framework for customers to issue specific tasks, delivery, or purchase orders in the future. The Company expects to satisfy these performance obligations in approximately two years.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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