CONTRACT RECEIVABLES

12 Months Ended

Dec. 31, 2011

CONTRACT RECEIVABLES

CONTRACT RECEIVABLES

8. CONTRACT RECEIVABLES

        The following shows the component elements of accounts receivable from contracts as of December 31, 2011 and 2010 (in thousands):

	December 31, 2011			December 31, 2010
Costs incurred on uncompleted contracts	$	46,700		$	75,783
Accrued profit on uncompleted contracts		15,412			13,701
		62,112			89,484
Less billings to date		(68,404	)		(102,858	)
Unbilled receivables and advance payments on uncompleted contracts	$	(6,292	)	$	(13,374	)

        Unbilled receivables and advance payments on uncompleted contracts as of December 31, 2011 and 2010 are as follows (in thousands):

	December 31, 2011			December 31, 2010
Unbilled receivables	$	513		$	841
Advance payments		(6,805	)		(14,215	)
	$	(6,292	)	$	(13,374	)

        Contract receivables as of December 31, 2011 and 2010 are as follows (in thousands):

	December 31, 2011		December 31, 2010
Billed:
Completed contracts	$	900	$	1,257
Contracts in process		1,033		308
Retained		—		—
		1,933		1,565
Unbilled		513		841
	$	2,446	$	2,406

        Within Contract receivables as of December 31, 2011 and 2010 contain amounts billed but not paid by customers pursuant to retainage provisions in long-term contracts that will be due upon completion of the contracts and acceptance by the customer. Costs incurred and accrued profits on uncompleted contracts are comprised of amounts of revenue recognized on contracts for which advance payments have been received at the balance sheet date.

        In addition to contract receivables, the Company had receivables of $0.7 million at December 31, 2011, primarily related to foreign tax receivables.

        In connection with the acquisition of Digital Domain discussed in Note 2, Contract obligations were recorded in the amount of $7.1 million, which represented the fair value of the obligation to perform services for which cash had been received as of the Acquisition Date. As of December 31, 2009, $1.6 million of this obligation had been amortized into earnings, resulting in a net unamortized balance of $5.5 million. Contract obligations were fully amortized as of December 31, 2010.