Receivables |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | RECEIVABLES Receivables were comprised of the following:
As of December 31, 2015 and 2014, all billed receivables are due from the U.S. government, either directly as prime contractor to the U.S. government or as subcontractor to another prime contractor to the U.S. government. Because the Company’s billed receivables are with the U.S. government, the Company does not believe it has a material credit risk exposure. Unbilled contract receivables represent revenue recognized on long-term contracts in excess of amounts billed as of the balance sheet date. We estimate that approximately $5.2 million of our unbilled contract receivables as of December 31, 2015 may not be collected within the next twelve months. These amounts relate to requests for equitable adjustments and contract line item realignments with our customers. As part of the Spin-off, Exelis indemnified Vectrus for a receivable of approximately $11.4 million. The Company recorded a corresponding liability in other accrued liabilities on its consolidated balance sheet because it is required to remit amounts collected related to the indemnified receivable to Harris Corporation. On November 19, 2015, the Company reached a settlement for the indemnified receivable of approximately $8.2 million. As part of the settlement, the Company cleared the corresponding liability by remitting payment of $8.2 million to Harris Corporation for the amount of the settlement. In addition, the Company recognized $0.2 million in selling, general and administrative expenses due to the effect of foreign currency translation during the period. |