Note 7 - Contract Assets and Liabilities

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

7.  Contract Assets and Liabilities

As work is performed, revenue is recognized and the corresponding contract liabilities are reduced. We recognized revenue of $29.2 million and $175.6 million during the three and six months ended June 30, 2021, respectively, and $18.2 million and $114.0 million during the three and six months ended June 30, 2020, respectively, that was included in the contract liability balances at December 31, 2020 and 2019, respectively.

As a result of changes in contract transaction price from items such as executed or estimated change orders and resolution of contract modifications and claims, we recognized revenue of $44.3 million and $116.4 million during the three and six months ended June 30, 2021, respectively, and $49.9 million and $93.8 million during the three and six months ended June 30, 2020, respectively, related to performance obligations that were satisfied or partially satisfied prior to the end of the periods. The prior period amounts have been adjusted to correct an immaterial disclosure error in the previously issued June 30, 2020 condensed consolidated financial statements.

As of  June 30, 2021, December 31, 2020 and June 30, 2020, the aggregate claim recovery estimates included in contract asset balances were $47.7 million, $37.7 million and $60.0 million, respectively.

The components of the contract asset balances as of the respective dates were as follows:

(in thousands)		June 30, 2021		December 31, 2020		June 30, 2020
Costs in excess of billings and estimated earnings	$	65,247	$	39,300	$	73,745
Contract retention		129,236		125,639		118,174
Total contract assets	$	194,483	$	164,939	$	191,919

As of  June 30, 2021, December 31, 2020 and June 30, 2020, no contract retention receivable individually exceeded 15% 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. 

The components of the contract liability balances as of the respective dates were as follows:

(in thousands)		June 30, 2021		December 31, 2020		June 30, 2020
Billings in excess of costs and estimated earnings, net of retention	$	147,072	$	143,623	$	148,050
Provisions for losses		27,778		27,698		11,768
Total contract liabilities	$	174,850	$	171,321	$	159,818