Revenue from Contract with Customers (Notes)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue from Contracts with Customers

We derive revenue from contracts with customers primarily from contracts with the U.S. government in the areas of intelligence, defense, homeland security and other federal civilian agencies. Substantially all of our revenue is derived from services and solutions provided to the U.S. government or to prime contractors supporting the U.S. government, including services by our employees and our subcontractors, and solutions that include third-party hardware and software that we purchase and integrate as a part of our overall solutions. Customer requirements may vary from period-to-period depending on the contract. We provide our services and solutions under three types of contracts: cost-reimbursable, fixed-price and time-and-materials. Under cost-reimbursable contracts, we are reimbursed for costs that are determined to be reasonable, allowable and allocable to the contract and paid a fee representing the profit margin negotiated between us and the contracting agency, which may be fixed or performance based. Under fixed-price contracts, we perform specific tasks for a fixed price. Fixed-price contracts may include either a product delivery or specific service performance over a defined period. Under time-and-materials contracts, we are reimbursed for labor at fixed hourly rates and generally reimbursed separately for allowable materials, costs and expenses at cost.

We have one reportable segment. Our U.S. government customers typically exercise independent decision-making and contracting authority. Offices or divisions within an agency or department of the U.S. government may directly, or through a prime contractor, use our services as a separate customer as long as the customer has independent decision-making and contracting authority within its organization. We treat sales to U.S. government customers as sales within the U.S. regardless of where the services are performed. We generated approximately 100%, 99% and 99% from revenue generated in the U.S. for the years ended December 31, 2021, 2020 and 2019, respectively.

The following tables disclose revenue (in thousands) by contract type, customer and prime or subcontractor for the periods presented.

	Year Ended December 31,
	2021		2020		2019
Cost-reimbursable	$	1,740,261	$	1,724,056	$	1,541,687
Fixed-price	472,435		485,847		451,312
Time-and-materials	341,260		308,481		229,560
	$	2,553,956	$	2,518,384	$	2,222,559

	Year Ended December 31,
	2021		2020		2019
U.S. Government	$	2,531,132	$	2,476,655	$	2,175,734
State agencies, international agencies and commercial entities	22,824		41,729		46,825
	$	2,553,956	$	2,518,384	$	2,222,559

	Year Ended December 31,
	2021		2020		2019
Prime contractor	$	2,376,018	$	2,297,452	$	1,995,471
Subcontractor	177,938		220,932		227,088
	$	2,553,956	$	2,518,384	$	2,222,559

We deliver a broad array of IT and technical services solutions under contracts with the U.S. government, state and local governments and commercial customers. The components of receivables are as follows (in thousands):

	December 31, 2021		December 31, 2020
Billed receivables	$	370,115	$	312,991
Unbilled receivables	118,387		106,007
Allowance for doubtful accounts	(12,467)		(18,377)
Receivables-net	$	476,035	$	400,621

Receivables at December 31, 2021 are expected to be substantially collected within one year except for approximately $1.7 million, of which a majority is related to U.S. government receivables. We do not believe that we have significant exposure to credit risk as billed receivable and unbilled receivables are primarily due from the U.S. government. The allowance for doubtful accounts represents our estimate for exposure to compliance, contractual issues and bad debts related to prime contractors. We measure future expected credit losses expected to occur over the estimated life or remaining contractual life of an asset (which includes losses that may be incurred in future periods). When we identify receivables with unique risk characteristics, we evaluate such receivables on an individual basis. A change in our assessment of the creditworthiness and collections from a prime contractor on one of our contracts resulted in a decrease in allowance for doubtful accounts during 2021.

The following table discloses contract liabilities (in thousands):

	December 31, 2021		December 31, 2020
Contract liabilities	$	36,197	$	37,218

Changes in the balance of contract liabilities are primarily due to the timing difference between our performance and our customers' payments. For the year ended December 31, 2021, the amount of revenue that was included in the opening contract liabilities balance was $31.0 million.

The remaining performance obligation at December 31, 2021 was $2.4 billion. The following table discloses when we expect to recognize the remaining performance obligation as revenue (in billions):

For the year ending
December 31, 2022		December 31, 2023		Thereafter
$	1.4	$	0.4	$	0.6