Unbilled Receivables

12 Months Ended

Dec. 31, 2019

UNBILLED RECEIVABLES

Unbilled receivables represent revenue recognized on long-term contracts (contract costs and estimated profits) less associated advances and progress billings. These amounts will be billed in accordance with the agreed-upon contractual terms. Unbilled receivables consisted of the following:



December 31	2019			2018
Unbilled revenue	$	33,481		$	27,908
Advances and progress billings	(25,624		)	(21,332		)
Net unbilled receivables	$	7,857		$	6,576

The increase in net unbilled receivables in 2019 was due primarily to a large international wheeled armored vehicle contract in our Combat Systems segment. At December 31, 2019, the net unbilled receivable related to this contract was $2.9 billion. Our contract is through the Canadian government to the international customer. We have experienced delays in payment under the contract. We continue to meet our obligations under the contract and are entitled to payment for work performed. In January 2020, we received a $500 progress payment in connection with the outstanding balance. We expect to collect the full amount currently outstanding. Other than the balance related to the large international vehicle contract, we expect to bill substantially all of the remaining year-end 2019 net unbilled receivables balance during 2020. The amount not expected to be billed in 2020 results primarily from the agreed-upon contractual billing terms.

G&A costs in unbilled revenue on December 31, 2019 and 2018, were $441 and $381, respectively. Contract costs also may include estimated contract recoveries for matters such as contract changes and claims for unanticipated contract costs. We record revenue associated with these matters only when the amount of recovery can be estimated reliably and realization is probable.