CONTRACT ASSETS AND CONTRACT LIABILITIES

6 Months Ended

Jun. 25, 2022

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 25, 2022			December 25, 2021
Costs incurred on uncompleted contracts	$	47,537		$	36,429
Estimated earnings on uncompleted contracts		6,282			4,866
Earned revenues		53,819			41,295
Less: billings to date		50,506			39,172
Net costs and estimated earnings in excess of billings (billings in excess of costs) on uncompleted contracts	$	3,313		$	2,123
Contract assets	$	5,645		$	4,177
Contract liabilities		(2,332	)		(2,054	)
Net contract assets	$	3,313		$	2,123