Contract Assets and Liabilities

12 Months Ended

Dec. 31, 2020

Deferred Income Tax Expense Benefit Provision For Gain Loss On Extinguishment Of Debt

Contract Assets and LiabilitiesContract assets and Contract liabilities (included in Accrued liabilities) are reported in the Consolidated Balance Sheets in a net position, on a contract-by-contract basis at the end of each reporting period. Contract assets and contract liabilities are summarized as follows:


(in thousands)	December 31, 2020		December 31, 2019
Contract assets	$	140,348	$	79,070
Allowance for expected credit losses	(1,059)		—
Contract assets, net	$	139,289	$	79,070

Contract liabilities	$	8,206	$	5,656

Contract assets increased $60.2 million during the year ended December 31, 2020. Contract assets increase when there is an increase in unbilled revenue related to the satisfaction of performance obligations in excess of the amounts billed to customers for contracts that are in a contract asset position. The 2020 increase in Contract assets, approximately half of which was related to the LEAP program, was driven by delays in the Boeing 737 MAX return to service and a challenging economic environment in 2020, which caused a slowdown in several key aerospace programs. Other than the allowance for expected credit losses, there were no other provisions for losses related to our Contract assets during the years ended December 31, 2020 and 2019.

The following table presents the 2020 (increases)/ decreases in the allowance for credit losses for Contract assets:


(in thousands)	December 31, 2019		CECL transition adjustment		Charges		Currency translation		Other		December 31, 2020
Contract assets expected credit losses	$	—	$	(403)	$	(657)	$	(5)	$	6	$	(1,059)

Contract liabilities increased $2.6 million during the year ended December 31, 2020, primarily due to increased billings in excess of revenue recognized from satisfied performance obligations for contracts that were in a contract liability position. Revenue recognized for the years ended December 31, 2020 and 2019 that was included in the Contract liability balance at the beginning of the year was $3.8 million and $6.0 million, respectively.