Contract Assets and Contract Liabilities

9 Months Ended

Sep. 26, 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 September 26, 2020 and December 28, 2019:

	September 26, 2020			December 28, 2019
	(dollars in thousands)
Costs incurred on uncompleted contracts	$	33,565		$	23,846
Estimated earnings on uncompleted contracts		3,467			5,188
Earned revenues		37,032			29,034
Less: billings to date		36,709			30,610
Net costs and estimated earnings in excess of billings (billings in excess of costs) on uncompleted contracts	$	323		$	(1,576	)
Contract assets	$	3,055		$	3,862
Contract liabilities		(2,732	)		(5,438	)
Net contract assets	$	323		$	(1,576	)