COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS

6 Months Ended

Jun. 30, 2020

Contractors [Abstract]

COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS

COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS

Under our customized pump production contracts in our IPS segment, amounts are billed as work progresses in accordance with agreed-upon contractual terms, upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of a contract. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. Our contract assets are presented as “Cost and estimated profits in excess of billings” on our condensed consolidated balance sheets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities that are presented as “Billings in excess of costs and estimated profits” on our condensed consolidated balance sheets.

Costs and estimated profits on uncompleted contracts and related amounts billed were as follows (in thousands):

	June 30, 2020		December 31, 2019
Costs incurred on uncompleted contracts	$	62,561	$	51,017
Estimated profits, thereon	12,632		10,771
Total	75,193		61,788
Less: billings to date	48,387		41,223
Net	$	26,806	$	20,565

Such amounts were included in the accompanying condensed Consolidated Balance Sheets for June 30, 2020 and December 31, 2019 under the following captions (in thousands):

	June 30, 2020		December 31, 2019
Costs and estimated profits in excess of billings	$	30,376	$	32,455
Billings in excess of costs and estimated profits	(3,569)		(11,871)
Translation adjustment	(1)		(19)
Net	$	26,806	$	20,565

During the six months ended June 30, 2020, $11.7 million of the balances that were previously classified as contract liabilities at the beginning of the period shipped. Contract assets and liability changes were primarily due to normal activity and timing differences between our performance and customer payments.