Contracts with Customers

6 Months Ended

Jun. 30, 2021

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				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Fixed-Price	$	233,231	$	311,368	$	463,173	$	619,676
Time-and-Materials		253,365		259,381		493,030		511,820
Cost-Plus		392,760		408,710		797,850		818,956
Total	$	879,356	$	979,459	$	1,754,053	$	1,950,452

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 June 30, 2021 and December 31, 2020 were as follows (in thousands):

	June 30, 2021		December 31, 2020		$ change			% change
Contract assets	$	568,239	$	576,568	$	(8,329	)		-1.4	%
Contract liabilities		196,547		201,864		(5,317	)		-2.6	%
Net contract assets (liabilities) (1)	$	371,692	$	374,704	$	(3,012	)		-0.8	%

(1) Total contract retentions included in net contract assets (liabilities) were $94.7 million as of June 30, 2021, of which $50.8 million are not expected to be paid in the next 12 months. Total contract retentions included in net contract assets (liabilities) were $93.8 million as of December 31, 2020. Contract assets at June 30, 2021 and December 31, 2020 include $103.4 million and $116.6 million, respectively, related to unapproved change orders, claims, and requests for equitable adjustment. For the three and six months ended June 30, 2021 and June 30, 2020, 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 June 30, 2021 and June 30, 2020, the Company recognized revenue of $23.5 million and $28.4 million, respectively, and $92.6 million and $122.7 million during the six months ended June 30, 2021 and June 30, 2020, respectively, that was included in the corresponding contract liability balances at December 31, 2020 and December 31, 2019, respectively. Certain changes in contract assets and contract liabilities consisted of the following:

	June 30, 2021		December 31, 2020
Acquired contract assets	$	-	$	8,350
Acquired contract liabilities		-		300

  There was no significant impairment of contract assets recognized during the three and six months ended June 30, 2021 and June 30, 2020.

 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 resulted in the following changes in revenue:   

	Three Months Ended					Six Months Ended
	June 30, 2021			June 30, 2020		June 30, 2021			June 30, 2020
Revenue impact, net	$	(20,827	)	$	8,983	$	(20,827	)	$	8,983

Accounts Receivable, net

Accounts receivable, net consisted of the following as of June 30, 2021 and December 31, 2020 (in thousands):

	2021			2020
Billed	$	458,686		$	512,357
Unbilled		183,293			190,222
Total accounts receivable, gross		641,979			702,579
Allowance for doubtful accounts		(3,999	)		(4,001	)
Total accounts receivable, net	$	637,980		$	698,578

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.

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. We have not seen and do not expect there to be a risk of non-payment from either our government agency or commercial customers related to COVID-19 impacts; however, we have experienced payment delays due to administrative limitations from both types of customers.

Transaction Price Allocated to the Remaining Unsatisfied Performance Obligations

The Company’s remaining unsatisfied performance obligations (“RUPO”) as of June 30, 2021 represent a measure of the total dollar value of work to be performed on contracts awarded and in-progress. The Company had $5.1 billion in RUPO as of June 30, 2021.

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 June 30, 2021 over the following periods (in thousands):

Period RUPO Will Be Satisfied	Within One Year		Within One to Two Years		Thereafter
Federal Solutions	$	1,071,149	$	461,928	$	355,680
Critical Infrastructure		1,581,878		760,048		861,020
Total	$	2,653,027	$	1,221,976	$	1,216,700