Receivables

9 Months Ended

Sep. 30, 2012

Receivables [Abstract]

Receivables

(4)  Receivables

The components of receivables were as follows (in thousands):

	September 30,		December 31,
	2012		2011
Billed	$	78,936	$	77,505
Unbilled		416,071		255,962
Total	$	495,007	$	333,467

As of September 30, 2012 and December 31, 2011, unbilled receivables included $9.4 million and $10.2 million, respectively, of incentive fees on certain completed satellite contracts that become due incrementally over periods of up to 15 years, subject to the achievement of performance criteria.  In addition, certain satellite contracts require the company to refund cash to the customer if performance criteria, which cover periods of up to 15 years, are not satisfied.  As of September 30, 2012, the company could be required to refund up to approximately $13.6 million to customers if certain completed satellites were to fail to satisfy performance criteria.  Orbital generally procures insurance policies under which the company believes it would recover satellite incentive fees that are not earned and performance refund obligations.

Under the terms of the company’s Commercial Resupply Services (“CRS”) contract with the National Aeronautics and Space Administration (“NASA”), approximately 25% of the contract value is billable to the customer and collectible only upon the completion of launch and delivery milestones for each of eight CRS contract missions.  Unbilled receivables at September 30, 2012 and December 31, 2011 included $255.3 million and $130.4 million, respectively, pertaining to the CRS contract.  Since the inception of the CRS contract through September 30, 2012, a total of $888 million of revenues have been recognized on the contract, which has a total contract value of approximately $1.9 billion.