Note 8 - Contract Assets and Liabilities

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

8.  Contract Assets and Liabilities

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 $40.4 million and $152.5 million during the three and nine months ended September 30, 2022, respectively, and $37.2 million and $153.6 million during the three and nine months ended September 30, 2021, 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, 2022, December 31, 2021 and September 30, 2021, the aggregate claim recovery estimates included in contract asset balances were $69.6 million, $35.5 million and $40.4 million, respectively.

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

(in thousands)		September 30, 2022		December 31, 2021 (1)		September 30, 2021
Costs in excess of billings and estimated earnings	$	83,837	$	14,158	$	61,815
Contract retention		157,401		131,279		142,231
Total contract assets	$	241,238	$	145,437	$	204,046

(1) These balances do not include amounts held for sale (see Note 3).

As of  September 30, 2022, December 31, 2021 and September 30, 2021, contract retention receivable from Brightline Trains Florida LLC represented 11.5%, 17.2% and 11.5%, respectively, of total contract assets. No other contract retention receivable individually 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.

As work is performed, revenue is recognized and the corresponding contract liabilities are reduced. We recognized revenue of $12.7 million and $220.3 million during the three and nine months ended September 30, 2022, respectively, and $5.8 and $181.4 million during the three and nine months ended September 30, 2021, respectively, that was included in the contract liability balances at  December 31, 2021 and 2020, respectively.

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

(in thousands)		September 30, 2022		December 31, 2021 (1)		September 30, 2021
Billings in excess of costs and estimated earnings, net of retention	$	170,516	$	169,542	$	166,091
Provisions for losses		20,521		30,499		29,176
Total contract liabilities	$	191,037	$	200,041	$	195,267

(1) These balances do not include amounts held for sale (see Note 3).