Unbilled Receivables

12 Months Ended

Dec. 31, 2020

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	2020		2019
Unbilled revenue	$	36,657	$	33,481
Advances and progress billings	(28,633)		(25,624)
Net unbilled receivables	$	8,024	$	7,857

On December 31, 2020 and 2019, net unbilled receivables included $2.8 billion and $2.9 billion, respectively, associated with a large international wheeled armored vehicle contract in our Combat Systems segment. We had experienced delays in payment under the contract in 2018 and 2019, which resulted in the large unbilled receivables balances. In March 2020, we finalized a contract amendment with the customer that included a revised payment schedule. Under the amended contract, we received two $500 progress payments, one in each of the first and second quarters of 2020. Further progress payments will be due annually that will liquidate the net unbilled receivables balance over the next few years. Other than the balance related to the large international vehicle contract, we expect to bill substantially all of the remaining year-end 2020 net unbilled receivables balance during 2021. The amount not expected to be billed in 2021 results primarily from the agreed-upon contractual billing terms.

G&A costs in unbilled revenue on December 31, 2020 and 2019, were $427 and $441, 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.