Contract Assets and Liabilities

6 Months Ended

Jun. 30, 2018

Revenue From Contract With Customer [Abstract]

7. Contract Assets and Liabilities

During the three and six months ended June 30, 2018, we recognized revenue of $13.3 million and $102.7 million, respectively, that was included in the contract liability balance at January 1, 2018.

During the three and six months ended June 30, 2018, we recognized revenue of $33.2 million and $60.9 million, respectively, 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. The changes in contract transaction price were from items such as executed or estimated change orders and unresolved contract modifications and claims.

As of June 30, 2018 and January 1, 2018, the aggregate claim recovery estimates included in contract asset and liability balances were approximately $36.1 million and $26.7 million, respectively. As of June 30, 2017, costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings included $10.8 million in aggregate claim recovery estimates.

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

	June 30, 2018		January 1, 2018
Costs in excess of billings and estimated earnings	$	161,670	$	69,755
Contract retention		103,520		91,135
Total contract assets	$	265,190	$	160,890

The following table summarizes changes in the contract asset balance for the period presented (in thousands):

Balance at January 1, 2018	$	160,890
Change in the measure of progress on projects, net		643,605
Acquired contract assets		45,353
Revisions in estimates, net		(44,550	)
Billings		(516,854	)
Receipts related to contract retention		(23,254	)
Balance at June 30, 2018	$	265,190

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

	June 30, 2018		January 1, 2018
Billings in excess of costs and estimated earnings	$	91,147	$	82,750
Provisions for losses		717		924
Total contract liabilities	$	91,864	$	83,674

The following table summarizes changes in the contract liability balance for the period presented (in thousands):

Balance at January 1, 2018	$	83,674
Change in the measure of progress on projects, net		(620,602	)
Acquired contract liabilities		7,974
Revisions in estimates, net		(4,353	)
Billings		625,434
Change in provision for loss, net		(263	)
Balance at June 30, 2018	$	91,864