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Receivables, Net
6 Months Ended
Jun. 30, 2013
Receivables [Abstract]  
Receivables, Net
Receivables, net

(in thousands)
 
June 30,
2013
 
December 31,
2012
 
June 30,
2012
Construction contracts:
 
 
 
 
 
 
Completed and in progress
 
$
207,488

 
$
195,244

 
$
146,509

Retentions
 
76,288

 
93,800

 
66,265

Total construction contracts
 
283,776

 
289,044

 
212,774

Construction material sales
 
43,535

 
26,918

 
50,205

Other
 
11,700

 
12,316

 
12,624

Total gross receivables
 
339,011

 
328,278

 
275,603

Less: allowance for doubtful accounts
 
2,593

 
2,749

 
3,041

Total net receivables
 
$
336,418

 
$
325,529

 
$
272,562



Receivables include amounts billed and billable to clients for services provided and/or according to contract terms as of the end of the applicable period and do not bear interest. Certain contracts include provisions that permit us to submit invoices in advance of providing services and, to the extent not collected, they are included in receivables. Other contracts include provisions that permit us to submit invoices based on the passage of time, achievement of milestones or completion of the project. To the extent the related costs have not been billed, the contract balance is included in costs and estimated earnings in excess of billings on the condensed consolidated balance sheets.

Certain construction contracts include retainage provisions. The balances billed but not paid by customers pursuant to these provisions in general become due upon completion and acceptance of the contract by the owners. As of June 30, 2013, substantially all of the retentions receivable are expected to be collected within one year. Included in other receivables at June 30, 2013, December 31, 2012 and June 30, 2012 were items such as notes receivable, fuel tax refunds and income tax refunds. No such receivables individually exceeded 10% of total net receivables at any of these dates.


Financing receivables consisted of long-term notes receivable and retentions receivable. As of June 30, 2013, December 31, 2012 and June 30, 2012 long-term notes receivable outstanding were $1.6 million, $2.0 million and $1.9 million, respectively, and primarily related to loans made to employees and were included in other noncurrent assets in our condensed consolidated balance sheets.

We segregate our retention receivables into two categories: escrow and non-escrow. The balances in each category were as follows:
(in thousands)
 
June 30,
2013
 
December 31,
2012
 
June 30,
2012
Escrow
 
$
31,892

 
$
41,494

 
$
42,421

Non-escrow
 
44,396

 
52,306

 
23,844

Total retention receivables
 
$
76,288

 
$
93,800

 
$
66,265



The escrow receivables include amounts due to Granite which have been deposited into an escrow account and bear interest. Typically, escrow retention receivables are held until work on a project is complete and has been accepted by the owner who then releases those funds, along with accrued interest, to us. There is minimal risk of not collecting on these amounts.

Non-escrow retention receivables are amounts that the project owner has contractually withheld that are to be paid upon owner acceptance of contract completion. We evaluate our non-escrow retention receivables for collectability using certain customer information that includes the following:

Federal - includes federal agencies such as the Bureau of Reclamation, the Army Corp of Engineers, and the Bureau of Indian Affairs. The obligations of these agencies are backed by the federal government. Consequently, there is minimal risk of not collecting the amounts we are entitled to receive.    
State - primarily state departments of transportation. The risk of not collecting on these accounts is low; however, we have experienced occasional delays in payment as states have struggled with budget issues.
Local - these customers include local agencies such as cities, counties and other local municipal agencies. The risk of not collecting on these accounts is low; however, we have experienced occasional delays in payment as some local agencies have struggled to deal with budget issues.       
Private - includes individuals, developers and corporations. The majority of our collection risk is associated with these customers. We perform ongoing credit evaluations of our customers and generally do not require collateral, although the law provides us certain remedies, including, but not limited to, the ability to file mechanics’ liens on real property improved for private customers in the event of non-payment by such customers.

The following table summarizes the amount of our non-escrow retention receivables within each category:
(in thousands)
 
June 30,
2013
 
December 31,
2012
 
June 30,
2012
Federal
 
$
3,325

 
$
3,234

 
$
2,464

State
 
2,757

 
2,971

 
4,626

Local
 
32,500

 
31,559

 
9,944

Private
 
5,814

 
14,542

 
6,810

Total
 
$
44,396

 
$
52,306

 
$
23,844


 
We regularly review our accounts receivable, including past due amounts, to determine their probability of collection. If it is probable that an amount is uncollectible, it is charged to bad debt expense and a corresponding reserve is established in allowance for doubtful accounts. If it is deemed certain that an amount is uncollectible, the amount is written off. Based on contract terms, non-escrow retention receivables are typically due within 60 days of owner acceptance of contract completion. We consider retention amounts beyond 60 days of owner acceptance of contract completion to be past due. The following tables present the aging of our non-escrow retention receivables (in thousands):
June 30, 2013
 
Current
 
1 - 90 Days
Past Due
 
Over 90 Days
Past Due
 
Total
Federal
 
$
2,551

 
$
236

 
$
538

 
$
3,325

State
 
1,327

 
619

 
811

 
2,757

Local
 
25,362

 
1,496

 
5,642

 
32,500

Private
 
4,571

 
634

 
609

 
5,814

Total
 
$
33,811

 
$
2,985

 
$
7,600

 
$
44,396

December 31, 2012
 
Current
 
1 - 90 Days
Past Due
 
Over 90 Days
Past Due
 
Total
Federal
 
$
3,116

 
$
72

 
$
46

 
$
3,234

State
 
2,148

 
502

 
321

 
2,971

Local
 
25,743

 
1,082

 
4,734

 
31,559

Private
 
13,310

 
716

 
516

 
14,542

Total
 
$
44,317

 
$
2,372

 
$
5,617

 
$
52,306

June 30, 2012
 
Current
 
1 - 90 Days
Past Due
 
Over 90 Days
Past Due
 
Total
Federal
 
$
1,746

 
$

 
$
718

 
$
2,464

State
 
3,552

 
208

 
866

 
4,626

Local
 
7,330

 
1,326

 
1,288

 
9,944

Private
 
6,363

 
92

 
355

 
6,810

Total
 
$
18,991

 
$
1,626

 
$
3,227

 
$
23,844



Federal, state and local agencies generally require several approvals to release payments, and these approvals often take over 90 days past contractual due dates to obtain. Amounts past due from government agencies primarily result from delays caused by paperwork processing and obtaining proper agency approvals rather than lack of funds. We generally receive payment within one year of owner acceptance. As of June 30, 2013, December 31, 2012 and June 30, 2012, our allowance for doubtful accounts contained no material provision related to non-escrow retention receivables as we determined there were no significant collectibility issues.