Contract Assets and Contract Liabilities

6 Months Ended

Jun. 30, 2019

Contract with Customer, Asset and Liability [Abstract]

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. 31, 2018			Reductions (1)			Additions (2)			Jun. 30, 2019
Contract Assets	$	56		$	(128	)	$	124		$	52
Contract Liabilities - Open Projects (3)		101			(180	)		217			138
Contract Liabilities - Other Customer Deposits (4)		174			(62	)		43			155
Net Contract Assets (Liabilities)	$	(219	)	$	114		$	(136	)	$	(241	)

(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 liabilities from ongoing consulting projects.

(4) Other customer deposits include payments received for orders not fulfilled and other advance payments.

In the three and six months ended June 30, 2019, we recognized revenue of approximately $61,000 and $119,000 related to our contract liabilities at the beginning of the fiscal year 2019.