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CONTRACT ASSETS AND CONTRACT LIABILITIES | 9 Months Ended
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Sep. 30, 2021
Contract Assets And Contract Liabilities |
CONTRACT ASSETS AND CONTRACT LIABILITIES |
3. | CONTRACT ASSETS AND CONTRACT LIABILITIES
Contract assets represent revenue recognized on contracts in excess of amounts invoiced to the customers and the Company’s right to consideration is conditional on something other than the passage of time. Amounts may not exceed their net realizable value. Under the typical payment terms of our government contracts, the customer retains a portion of the contract price until completion of the contract, as a measure of protection for the customer. Our government contracts therefore typically result in revenue recognized in excess of billings, which we present as contract assets. Contract assets are classified as current. The Company’s contract liabilities represent customer payments received or due from the customer in excess of revenue recognized. Contract liabilities are classified as current. Revenue recognized for the periods ended September 30, 2021 and 2020 that was included in the contract liabilities balance as of January 1, 2021 and 2020, respectively, was approximately $1.6 million and $1.7 million, respectively.

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