Contract Assets and Contract Liabilities

6 Months Ended

Jun. 27, 2020

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]

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.

Costs, estimated earnings and billings on uncompleted contracts consisted of the following at June 27, 2020 and December 28, 2019:

	June 27, 2020			December 28, 2019
	(dollars in thousands)
Costs incurred on uncompleted contracts	$	28,666		$	23,846
Estimated earnings on uncompleted contracts		3,404			5,188
Earned revenues		32,070			29,034
Less: billings to date		29,281			30,610
Net costs and estimated earnings in excess of billings (billings in excess of costs) on uncompleted contracts	$	2,789		$	(1,576	)
Contract assets	$	5,118		$	3,862
Contract liabilities		(2,329	)		(5,438	)
Net contract assets	$	2,789		$	(1,576	)