Unbilled Receivables

12 Months Ended

Dec. 31, 2021

Contractors [Abstract]

Unbilled Receivables

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	2021		2020
Unbilled revenue	$	39,566	$	36,657
Advances and progress billings	(31,068)		(28,633)
Net unbilled receivables	$	8,498	$	8,024

On December 31, 2021 and 2020, net unbilled receivables included $3.3 billion and $3.4 billion, respectively, associated with two large international contracts in our Combat Systems segment. We had experienced payment delays in 2018 and 2019 on a wheeled vehicle contract that was negotiated in 2012 before finalizing a contract amendment in 2020 with the customer that included a revised payment schedule. Under the amended contract, we have received progress payments in 2020 and 2021 that have reduced the program’s unbilled balance to $2 billion. The remaining scheduled progress payments will liquidate the net unbilled receivables balance by the end of 2023. A separate tracked vehicle contract that was signed in 2010 has experienced an unbilled receivable build-up over the past year while we work to resolve concerns that were raised by the customer on certain aspects of the program. As a result, the balance on this program has grown to $1.3 billion. Other than the balance related to the two large international contracts, we expect to bill substantially all of the remaining year-end 2021 net unbilled receivables balance during 2022. The amount not expected to be billed in 2022 results primarily from the agreed-upon contractual billing terms.

G&A costs in unbilled revenue on December 31, 2021 and 2020, were $501 and $427, respectively.