XML 18 R11.htm IDEA: XBRL DOCUMENT
v3.24.3

Contract Receivables, Net | 9 Months Ended
--- | ---
Sep. 30, 2024
Receivables [Abstract] |
Contract Receivables, Net | NOTE 3 – CONTRACT RECEIVABLES, NET Contract receivables, net consisted of the following:
|  | September 30, 2024 |  |  | December 31, 2023 |
Billed and billable |  | $ | 220,690 |  |  | $ | 210,919 |
Allowance for expected credit losses |  |  | (8,278 | ) |  |  | (5,435 | )
Contract receivables, net |  | $ | 212,412 |  |  | $ | 205,484 |
The Company sells certain billed contract receivables in accordance with its Master Receivables Purchase Agreement (the “MRPA”) with MUFG Bank, Ltd. (“MUFG”). The contract receivables that are sold without recourse and where the Company does not retain any ongoing financial interest in the transferred receivables, other than providing servicing activities, are accounted for as sales under ASC 860, Transfers and Servicing (“ASC 860”). Consequently, these contract receivables are derecognized from the Company’s consolidated balance sheets at the date of the sale, and the cash received from MUFG is presented as part of cash flows from operating activities. The following is a reconciliation of billed contract receivables sold to MUFG that were eligible and accounted for as sales under ASC 860, including billed contract receivables sold to MUFG and collected from customers on behalf of MUFG during the nine months ended September 30, 2024 and 2023, and the balance of billed contract receivables not yet collected from customers as of September 30, 2024 and 2023, respectively:
|  | As of and for the Nine Months Ended |
|  | September 30, 2024 |  |  | September 30, 2023 |
Beginning balance, billed contract receivables sold and not yet collected (1) |  | $ | 21,302 |  |  | $ | 3,819 |
Billed contract receivables sold during the period (2) |  |  | 482,469 |  |  |  | 159,480 |
Collections from customers during the period (2) |  |  | (473,037 | ) |  |  | (131,580 | )
Ending balance, billed contract receivables sold and not yet collected (3) |  | $ | 30,735 |  |  | $ | 31,719 |
(1) The beginning balances represent billed contract receivables that were previously sold and derecognized by the Company but have not yet been collected from customers as of January 1, 2024 and 2023, respectively. (2) For the nine months ended September 30, 2024 and 2023, the Company recorded net inflows of $9.4 million and $27.9 million, respectively, in its cash flows from operating activities from the sale of billed contract receivables. (3) The ending balances represent billed contract receivables that were sold and derecognized by the Company but have not yet been collected from customers as of September 30, 2024 and 2023, respectively. The following is a reconciliation of cash collections from customers of billed contract receivables previously sold to MUFG that were eligible and accounted for as sales under ASC 860, including collections from customers on behalf of MUFG of previously sold billed contract receivables and remittances of cash collections to MUFG during the nine months ended September 30, 2024 and 2023, and the balance of cash collected but not yet remitted to MUFG as of September 30, 2024 and 2023, respectively:
|  | As of and for the Nine Months Ended |
|  | September 30, 2024 |  |  | September 30, 2023 |
Beginning balance, cash collected but not yet remitted to MUFG (1) |  | $ | 21,796 |  |  | $ | 6,164 |
Collections from customers during the period (2) |  |  | 473,037 |  |  |  | 131,580 |
Remittances to MUFG during the period (2) |  |  | (463,558 | ) |  |  | (127,303 | )
Ending balance, cash collected but not yet remitted to MUFG (3) |  | $ | 31,275 |  |  | $ | 10,441 |
(1) The beginning balances represent cash collected from customers on behalf of MUFG for billed contract receivables that were previously sold and derecognized by the Company but have not yet been remitted to MUFG as of January 1, 2024 and 2023, respectively. (2) For the nine months ended September 30, 2024 and 2023, the Company recorded net inflows of $9.5 million and $4.3 million, respectively, in its cash flows from operating activities from the collection of billed contract receivables that were sold but not yet remitted to MUFG. (3) The ending balances are included as part of “Accrued expenses and other current liabilities” on the Company’s consolidated balance sheets. The Company services the receivables sold by collecting cash and remitting it to MUFG. The related servicing fee received from MUFG was immaterial. The aggregate impact of the sale of billed contract receivables on the Company’s operating cash flows was $18.9 million and $32.2 million for the nine months ended September 30, 2024 and 2023, respectively. The Company also sold certain billed contract receivables to MUFG that did not qualify as sales under ASC 860. Consequently, the cash received from and remitted back to MUFG is presented as cash from financing activities within “Proceeds from other short-term borrowings” and “Repayments of other short-term borrowings” on the Company’s consolidated statements of cash flows. At September 30, 2024 and December 31, 2023, the amounts due to MUFG for cash collected and not yet remitted for billed contract receivables sold that did not qualify as sales under ASC 860 totaled $2.7 million and $6.9 million, respectively. These amounts are included as part of “Accrued expenses and other current liabilities” on the Company’s consolidated balance sheets.

X
- Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration