CONTRACT ASSETS AND CONTRACT LIABILITIES

6 Months Ended

Jun. 26, 2021

CONTRACT ASSETS AND CONTRACT LIABILITIES

NOTE 4 - CONTRACT ASSETS AND CONTRACT LIABILITIES

NOTE 4 – 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 (dollars in thousands):

	June 26, 2021			December 26, 2020
Costs incurred on uncompleted contracts	$	34,987		$	39,154
Estimated earnings on uncompleted contracts		5,766			4,388
Earned revenues		40,753			43,542
Less: billings to date		38,413			40,710
Net costs and estimated earnings in excess of billings (billings in excess of costs) on uncompleted contracts	$	2,340		$	2,832
Contract assets	$	2,900		$	4,090
Contract liabilities		(560	)		(1,258	)
Net contract assets	$	2,340		$	2,832