Contract Assets and Contract Liabilities

12 Months Ended

Dec. 31, 2018

Contract Assets And Contract Liabilities

Contract Assets and Contract Liabilities

Our contract assets consist of unbilled amounts typically resulting from sales under 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 and deferred revenue.

Net contract assets (liabilities) consisted of the following:

(In thousands)	Dec. 30, 2017			Opening Balance Adjustment			FY 2018 Opening Balance			Reductions(1)			Additions(2)			Dec. 31, 2018
Contract Assets	$	-		$	56		$	56		$	(314	)	$	314		$	56
Contract Liabilities - Open Projects (3)		186			(108	)		78			(154	)		177			101
Contract Liabilities - Other Customer Deposits (4)		128			-			128			(125	)		171			174
Net Contract Assets (Liabilities)	$	(314	)	$	164		$	(150	)	$	(35	)	$	(34	)	$	(219	)
(1) For contract assets, the amount represents amount billed to the customer.
For contract liabilities, the amount represents reductions for revenue recognized.
(2) For contract assets, the amount represents revenue recognized during the period using the cost-to-cost method.
For contract liabilities, the amount represents advance payments received during the period.
(3) Contract liablities from ongoing consulting projects.
(4) Other customer deposts include payments received for orders not fulfilled and other advance payments.

In the year ended December 31, 2018, we recognized revenue of approximately $95,000 related to our adjusted contract liabilities at the beginning of the fiscal year 2018.