Note 7 - Contract Assets and Liabilities

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

7.  Contract Assets and Liabilities

During the three and nine months ended September 30, 2019, we recognized revenue of $13.2 million and $118.8 million, respectively, that was included in the contract liability balance at December 31, 2018. During the three and nine months ended September 30, 2018, we recognized revenue of $0.6 million and $103.3 million, respectively, that was included in the contract liability balance at January 1, 2018.

As a result of changes in contract transaction price related to performance obligations that were satisfied or partially satisfied prior to the end of the periods, we recognized revenue of $32.8 million and $117.6 million during the three and nine months ended September 30, 2019, respectively, and $25.3 million and $86.2 million during the three and nine months ended September 30, 2018, respectively. The changes in contract transaction price were from items such as executed or estimated change orders and unresolved contract modifications and claims.

As of September 30, 2019, December 31, 2018 and September 30, 2018, the aggregate claim recovery estimates included in contract asset and liability balances were $60.6 million, $45.1 million and $37.2 million, respectively.

The components of the contract asset balances as of the respective dates were as follows (in thousands):

	September 30, 2019		December 31, 2018		September 30, 2018
Costs in excess of billings and estimated earnings	$	127,863	$	120,223	$	108,105
Contract retention		106,062		99,531		105,884
Total contract assets	$	233,925	$	219,754	$	213,989

As of September 30, 2019, December 31, 2018 and September 30, 2018, no individual contract retention balance exceeded 10% of total contract assets at any of the presented dates. The majority of the contract retention balance is expected to be collected within one year and there were no balances determined to be uncollectible.

The components of the contract liability balances as of the respective dates were as follows (in thousands):

	September 30, 2019		December 31, 2018		September 30, 2018
Billings in excess of costs and estimated earnings, net of retention	$	100,673	$	103,250	$	117,352
Provisions for losses		5,337		2,199		407
Total contract liabilities	$	106,010	$	105,449	$	117,759