Contracts with Customers

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Contracts with Customers

5.Contracts with Customers

Disaggregation of Revenue

The Company’s contracts contain both fixed-price and cost reimbursable components. Contract types are based on the component that represents the majority of the contract. The following table presents revenue disaggregated by contract type (in thousands):

	Three Months Ended
	March 31, 2024		March 31, 2023
Fixed-price	$	631,219	$	341,012
Time-and-Materials		350,651		318,315
Cost-plus		553,806		514,139
Total	$	1,535,676	$	1,173,466

See “Note 18 – Segments Information” for the Company’s revenues by business lines.

Contract Assets and Contract Liabilities

Contract assets and contract liabilities balances at March 31, 2024 and December 31, 2023 were as follows (in thousands):

	March 31, 2024		December 31, 2023
Contract assets	$	768,007	$	757,515
Contract liabilities		282,962		301,107
Net contract assets (liabilities) (1)	$	485,045	$	456,408

(1)Total contract retentions included in net contract assets (liabilities) were $71.7 million as of March 31, 2024, of which $31.8 million are not expected to be paid in the next 12 months. Total contract retentions included in net contract assets (liabilities) were $73.8 million as of December 31, 2023. Contract assets at March 31, 2024 and December 31, 2023 include $101.5 million and $109.5 million, respectively, related to net claim recoveries. For the three months ended March 31, 2024 and March 31, 2023, there were no material losses recognized related to the collectability of claims, unapproved change orders, and requests for equitable adjustment.

During the three months ended March 31, 2024 and March 31, 2023, the Company recognized revenue of $138.3 million and $78.1 million, respectively, that was included in the corresponding contract liability balances at December 31, 2023 and December 31, 2022, respectively.

There was no significant impairment of contract assets recognized during the three months ended March 31, 2024 and March 31, 2023.

There have been no revisions in estimates, such as changes in estimated claims or incentives, related to performance obligations partially satisfied in previous periods that individually had an impact of $5 million or more on revenue.

Accounts Receivable, net

Accounts receivable, net consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands):

	2024			2023
Billed	$	674,861		$	646,375
Unbilled		352,542			273,215
Total accounts receivable, gross		1,027,403			919,590
Allowance for doubtful accounts		(3,940	)		(3,952	)
Total accounts receivable, net	$	1,023,463		$	915,638

Billed accounts receivable represents amounts billed to clients that have not been collected. Unbilled accounts receivable represents amounts where the Company has a present contractual right to bill but an invoice has not been issued to the customer at the period-end date. Receivables from contracts with the U.S. federal government and its agencies were 22% and 18% as of March 31, 2024 and December 31, 2023, respectively.

The allowance for doubtful accounts was determined based on consideration of trends in actual and forecasted credit quality of clients, including delinquency and payment history, type of client, such as a government agency or commercial sector client, and general economic conditions and particular industry conditions that may affect a client’s ability to pay.

Transaction Price Allocated to the Remaining Unsatisfied Performance Obligations

The Company’s remaining unsatisfied performance obligations (“RUPO”) as of March 31, 2024 represent a measure of the total dollar value of work to be performed on contracts awarded and in-progress. The Company had $6.3 billion in RUPO as of March 31, 2024.

RUPO will increase with awards of new contracts and decrease as the Company performs work and recognizes revenue on existing contracts. Projects are included within RUPO at such time the project is awarded and agreement on contract terms has been reached. The difference between RUPO and backlog relates to unexercised option years that are included within backlog and the value of Indefinite Delivery/Indefinite Quantity (“IDIQ”) contracts included in backlog for which delivery orders have not been issued.

RUPO is comprised of: (a) original transaction price, (b) change orders for which written confirmations from our customers have been received, (c) pending change orders for which the Company expects to receive confirmations in the ordinary course of business, and (d) claim amounts that the Company has made against customers for which it has determined that it has a legal basis under existing contractual arrangements and a significant reversal of revenue is not probable, less revenue recognized to-date.

The Company expects to satisfy its RUPO as of March 31, 2024 over the following periods (in thousands):

Period RUPO Will Be Satisfied	Within One Year		Within One to Two Years		Thereafter
Federal Solutions	$	1,762,653	$	350,568	$	159,288
Critical Infrastructure		2,010,225		975,277		992,388
Total	$	3,772,878	$	1,325,845	$	1,151,676