Revenue Recognition

3 Months Ended

Mar. 31, 2021

Revenue From Contract With Customer [Abstract]

Revenue Recognition

NOTE 7 – REVENUE RECOGNITION

Disaggregation of Revenue

The Company disaggregates revenue from clients, most of which is earned over time, into categories that depict how the nature, amount and uncertainty of revenue and cash flows are affected by economic factors. Those categories are client market, client type and contract mix. Client markets provide insight into the breadth of the Company’s expertise. In classifying revenue by client market, the Company attributes revenue from a client to the market that the Company believes is the client’s primary market. The Company also classifies revenue by the type of entity for which it does business, which is an indicator of the diversity of its client base. The Company attributes revenue generated from being a subcontractor to a commercial company as government revenue when the ultimate client is a government agency or department. Disaggregation by contract mix provides insight in terms of the degree of performance risk that the Company has assumed. Fixed-price contracts are considered to provide the highest amount of performance risk as the Company is required to deliver a scope of work or level of effort for a negotiated fixed price. Time-and-materials contracts require the Company to provide skilled employees on contracts for negotiated fixed hourly rates. Since the Company is not required to deliver a scope of work, but merely skilled employees, it considers these contracts to be less risky than a fixed-price agreement. Cost-based contracts are considered to provide the lowest amount of performance risk since the Company is generally reimbursed for all contract costs incurred in performance of contract deliverables with only the amount of incentive or award fees (if applicable) dependent on the achievement of negotiated performance requirements.  

Changes in the three months ended March 31, 2021 compared to the prior year period were primarily from an increase of revenue in the energy, environment, and infrastructure client market and the health, education, and social programs client market as a result of  U.S. government clients and international government clients, partially offset by decreases in revenue from the consumer and financial markets primarily as a result of commercial clients.

	Three Months Ended March 31,
	2021					2020
	Dollars		Percent			Dollars		Percent
Client Markets:
Energy, environment, and infrastructure	$	164,492		43	%	$	148,961		42	%
Health, education, and social programs		157,765		42	%		151,352		42	%
Safety and security		31,198		8	%		30,301		8	%
Consumer and financial services		25,023		7	%		27,624		8	%
Total	$	378,478		100	%	$	358,238		100	%

	Three Months Ended March 31,
	2021					2020
	Dollars		Percent			Dollars		Percent
Client Type:
U.S. federal government	$	175,913		46	%	$	155,604		43	%
U.S. state and local government		57,152		15	%		60,893		17	%
International government		37,061		10	%		22,801		7	%
Total Government		270,126		71	%		239,298		67	%
Commercial		108,352		29	%		118,940		33	%
Total	$	378,478		100	%	$	358,238		100	%

	Three Months Ended March 31,
	2021					2020
	Dollars		Percent			Dollars		Percent
Contract Mix:
Time-and-materials	$	160,009		42	%	$	168,070		47	%
Fixed price		147,296		39	%		133,204		37	%
Cost-based		71,173		19	%		56,964		16	%
Total	$	378,478		100	%	$	358,238		100	%

Contract Balances:

Contract assets consist primarily of unbilled amounts resulting from long-term contracts when revenue recognized exceeds the amount billed often due to billing schedule timing. Contract liabilities result from advance payments received on a contract or from billings in excess of revenue recognized on long-term contracts due to billing schedule timing. The net contract assets (liabilities) as of March 31, 2021 increased by $19.2 million as compared to December 31, 2020. The increase in net contract assets (liabilities) is primarily due to an increase in work in the energy, environmental, and infrastructure client market and health, education, and social programs client market, offset by decreases in work in the consumer and financial market. There were no material changes to contract balances due to impairments during the period. During the three months ended March 31, 2021 and 2020, the Company recognized $15.1 million and $17.3 million in revenue related to the contract liabilities balance at December 31, 2020 and 2019, respectively.

	March 31, 2021			December 31, 2020			$ Change			% Change
Contract assets	$	164,155		$	143,369		$	20,786			14.5	%
Contract liabilities		(43,589	)		(42,050	)		(1,539	)		3.7	%
Net contract assets (liabilities)	$	120,566		$	101,319		$	19,247			19.0	%

Performance Obligations:

The Company had $1.6 billion in unfulfilled performance obligations as of March 31, 2021 which primarily entail the future delivery of services for which revenue will be recognized over time. The obligations relate to continued or additional services required on contracts and were generally valued using an estimated cost-plus margin approach, with variable consideration being estimated at the most likely amount.  The Company expects to satisfy these performance obligations, on average, in one to two years.