Contract Assets and Liabilities

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Contract assets and Contract liabilities (included in Accrued liabilities) are reported in the Consolidated Balance Sheets in a net position, on a contract-by-contract basis at the end of each reporting period. Contract assets and contract liabilities are summarized as follows:


(in thousands)	December 31, 2021		December 31, 2020
Contract assets	$	113,249	$	140,348
Allowance for expected credit losses	(703)		(1,059)
Contract assets, net	$	112,546	$	139,289

Contract liabilities	$	6,959	$	8,206

Contract assets decreased $26.7 million during the year ended December 31, 2021, driven by cash inflows due to significant deliveries of LEAP components, which were delayed in the prior year due to slowdowns in the Boeing 737 MAX program. Other than the allowance for expected credit losses, there were no other provisions for losses related to our Contract assets during the years ended December 31, 2021 and 2020.

The following tables present the (increases)/ decreases in the allowance for credit losses for Contract assets:


(in thousands)	December 31, 2020		(Charge)/ benefit		Currency translation		Other		December 31, 2021
Contract assets expected credit losses	$	(1,059)	$	339	$	16	$	1	$	(703)


(in thousands)	December 31, 2019		CECL transition adjustment		(Charge)/ benefit		Currency translation		Other		December 31, 2020
Contract assets expected credit losses	$	—	$	(403)	$	(657)	$	(5)	$	6	$	(1,059)

Contract liabilities decreased $1.2 million during the year ended December 31, 2021, primarily due to revenue recognition from satisfied performance obligations exceeding the amounts invoiced to customers for contracts that were in a contract liability position. Revenue recognized for the years ended December 31, 2021 and 2020 that was included in the Contract liability balance at the beginning of the year was $5.8 million and $3.8 million, respectively.