COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS

12 Months Ended

Dec. 31, 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 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 Consolidated Balance Sheets.

Costs and estimated profits on uncompleted contracts and related amounts billed for 2020 and 2019 were as follows (in thousands):

	December 31,
	2020		2019
Costs incurred on uncompleted contracts	$	36,969	$	51,017
Estimated profits, thereon	6,711		10,771
Total	$	43,680	$	61,788
Less: billings to date	29,315		41,223
Net	$	14,365	$	20,565

Such amounts were included in the accompanying Consolidated Balance Sheets for 2020 and 2019 under the following captions (in thousands):

	December 31,
	2020		2019
Costs and estimated profits in excess of billings	$	18,459	$	32,455
Billings in excess of costs and estimated profits	(4,061)		(11,871)
Translation Adjustment	(33)		(19)
Net	$	14,365	$	20,565

During the twelve months ended December 31, 2020, $11.9 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.