CONTRACT ASSETS AND CONTRACT LIABILITIES

6 Months Ended

Jul. 01, 2023

CONTRACT ASSETS AND CONTRACT LIABILITIES

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):

	July 1, 2023			December 31, 2022
Costs incurred on uncompleted contracts	$	53,994		$	59,298
Estimated earnings on uncompleted contracts		2,519			4,464
Earned revenues		56,513			63,762
Less: billings to date		53,817			59,784
Net costs and estimated earnings in excess of billings (billings in excess of costs) on uncompleted contracts	$	2,696		$	3,978
Contract assets	$	3,748		$	4,934
Contract liabilities		(1,052	)		(956	)
Net contract assets	$	2,696		$	3,978