5. Contracts-in-Process and Long-Term Receivables

Contracts-in-Process

Contracts-in-Process are comprised of the following (in thousands):


	March 31, 2012		December 31, 2011
Contracts-in-Process:
Amounts billed	$	127,389	$	107,920
Unbilled receivables		71,090		51,341

	$	198,479	$	159,261

As of March 31, 2012 and December 31, 2011, billed receivables were reduced by an allowance for doubtful accounts of $0.2 million.

Unbilled amounts include recoverable costs and accrued profit on progress completed, which have not been billed. Such amounts are billed in accordance with the contract terms, typically upon shipment of the product, achievement of contractual milestones, or completion of the contract and, at such time, are reclassified to billed receivables.

Long-Term Receivables

Billed receivables relating to long-term contracts are expected to be collected within one year. We classify deferred billings and the orbital receivable component of unbilled receivables expected to be collected beyond one year as long-term. Fresh-start fair value adjustments relating to long-term receivables are amortized using the effective interest method over the life of the related orbital stream (see Note 10).

Receivable balances related to satellite orbital incentive payments, deferred billings and the Telesat consulting services fee (see Note 19) as of March 31, 2012 and December 31, 2011 are presented below (in thousands):


	March 31, 2012			December 31, 2011
Orbital receivables	$	353,513		$	354,852
Deferred receivables		8,669			1,973
Telesat consulting services receivable		20,700			20,700

		382,882			377,525
Less, current portion included in contracts-in-process		(15,923	)		(14,837	)

Long-term receivables	$	366,959		$	362,688

Financing Receivables

The following summarizes the age of financing receivables that have a contractual maturity of over one year as of March 31, 2012 (in thousands):


	Total		Unlaunched		Launched		Financing Receivables Subject To Aging		Current		90 Days or Less		More Than 90 Days
Satellite Manufacturing:
Orbital Receivables
Long term orbitals	$	337,590	$	140,675	$	196,915	$	196,915	$	196,915	$	—	$	—
Short term unbilled		12,619		—		12,619		12,619		12,619		—		—
Short term billed		3,304		—		3,304		3,304		3,304		—		—

		353,513		140,675		212,838		212,838		212,838		—		—
Deferred Receivables		8,669		—		—		8,669		8,669		—		—

Consulting Services:
Receivables from Telesat		20,700		—		—		20,700		20,700		—		—

		382,882		140,675		212,838		242,207		242,207		—		—

Contracts-in-Process:
Unbilled receivables		58,471		58,471		—		—		—		—		—

Total	$	441,353	$	199,146	$	212,838	$	242,207	$	242,207	$	—	$	—

The following summarizes the age of financing receivables that have a contractual maturity of over one year as of December 31, 2011 (in thousands):


	Total		Unlaunched		Launched		Financing Receivables Subject To Aging		Current		90 Days or Less		More Than 90 Days
Satellite Manufacturing:
Orbital Receivables
Long term orbitals	$	340,015	$	141,518	$	198,497	$	198,497	$	198,497	$	—	$	—
Short term unbilled		11,370		—		11,370		11,370		11,370		—		—
Short term billed		3,467		—		3,467		3,467		1,084		—		2,383

		354,852		141,518		213,334		213,334		210,951		—		2,383

Deferred Receivables		1,973		—		—		1,973		1,973		—		—

Consulting Services:
Telesat receivables		20,700		—		—		20,700		20,700		—		—

		377,525		141,518		213,334		236,007		233,624		—		2,383

Contracts-in-Process:
Unbilled receivables		39,971		39,971		—		—		—		—		—

Total	$	417,496	$	181,489	$	213,334	$	236,007	$	233,624	$	—	$	2,383

Billed receivables of $124.1 million and $104.5 million as of March 31, 2012 and December 31, 2011, respectively (not including billed orbital receivables of $3.3 million and $3.5 million as of March 31, 2012 and December 31, 2011, respectively) have been excluded from the tables above as they have contractual maturities of less than one year.

Long term unbilled receivables include satellite orbital incentives related to satellites under construction of $140.7 million and $141.5 million as of March 31, 2012 and December 31, 2011, respectively. These receivables are not included in financing receivables subject to aging in the table above since the timing of their collection is not determinable until the applicable satellite is launched. Contracts-in-process include $58.5 million and $40.0 million as of March 31, 2012 and December 31, 2011, respectively, of unbilled receivables that represent accumulated incurred costs and earned profits net of losses on contracts in process that have been recorded as sales but have not yet been billed to customers. These receivables are not included in financing receivables subject to aging in the table above since the timing of their collection is not determinable until the contractual obligation to bill the customer is fulfilled.

We assign internal credit ratings for all our customers with financing receivables. The credit worthiness of each customer is based upon public information and/or information obtained directly from our customers. We utilize credit ratings where available from the major credit rating agencies in our analysis. We have therefore assigned our rating categories to be comparable to those used by the major credit rating agencies. Credit risk profile by internally assigned ratings, consisted of the following (in thousands):


Rating Categories	March 31, 2012		December 31, 2011
A/BBB	$	61,153	$	41,607
BB/B		281,366		246,373
B/CCC		98,559		94,156
Customers in bankruptcy		—		39,307
Other		275		(3,947	)

Total financing receivables	$	441,353	$	417,496