Contract Assets and Liabilities

12 Months Ended

Dec. 31, 2023

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, 2023		December 31, 2022
Contract assets	$	183,189	$	149,443
Allowance for expected credit losses	(908)		(748)
Contract assets, net	$	182,281	$	148,695

Contract liabilities	$	7,127	$	15,176

Contract assets increased $33.6 million during the year ended December 31, 2023. The increase was primarily due to an increase in unbilled revenue related to the satisfaction of performance obligations, notably for the Sikorsky CH-53K program, in excess of the amounts billed. 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, 2023 and 2022.

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


(in thousands)	December 31, 2022		(Charge)/ benefit		Currency translation		Other		December 31, 2023
Contract assets expected credit losses	$	(748)	$	(152)	$	(8)	$	—	$	(908)


(in thousands)	December 31, 2021		(Charge)/ benefit		Currency translation		Other		December 31, 2022
Contract assets expected credit losses	$	(703)	$	(45)	$	—	$	—	$	(748)

Contract liabilities decreased $8.0 million during the year ended December 31, 2023, 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, 2023 and 2022 that was included in the Contract liability balance at the beginning of the year was $15.2 million and $5.7 million, respectively.