Contract Assets and Contract Liabilities

9 Months Ended

Sep. 28, 2019

Contractors [Abstract]

Contract Assets and Contract Liabilities

NOTE 5 – CONTRACT ASSETS AND CONTRACT LIABILITIES

Our contract assets consist of unbilled amounts typically resulting from sales under long-term contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Our contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue. The noncurrent portion of deferred revenue is included in other long-term liabilities in our consolidated balance sheets.

Costs, estimated earnings and billings on uncompleted contracts consisted of the following at September 28, 2019 and December 29, 2018:

	September 28, 2019			December 29, 2018
	(dollars in thousands)
Costs incurred on uncompleted contracts	$	24,451		$	34,800
Estimated earnings on uncompleted contracts		4,843			6,921
Earned revenues		29,294			41,721
Less: billings to date		25,979			39,150
Net costs and estimated earnings in excess of billings (billings in excess of costs) on uncompleted contracts	$	3,315		$	2,571
Contract assets	$	4,128		$	3,175
Contract liabilities		(813	)		(604	)
Net contract assets	$	3,315		$	2,571