CONTRACT ASSETS AND CONTRACT LIABILITIES

3 Months Ended

Mar. 30, 2024

CONTRACT ASSETS AND CONTRACT LIABILITIES

CONTRACT ASSETS AND CONTRACT LIABILITIES

NOTE 4 – CONTRACT ASSETS AND CONTRACT LIABILITIES

Our contract assets consist of unbilled amounts typically resulting from sales under long-term contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Our contract liabilities consist of advance payments and billings in excess of costs incurred.

Costs, estimated earnings and billings on uncompleted contracts consisted of the following (dollars in thousands):

	March 30, 2024			December 30, 2023
Costs incurred on uncompleted contracts	$	18,276		$	23,318
Estimated earnings on uncompleted contracts		781			3,602
Earned revenues		19,057			26,920
Less: billings to date		16,431			24,819
Net costs in excess of billings on uncompleted contracts	$	2,626		$	2,101
Costs and estimated earnings in excess of billings on uncompleted contracts	$	3,602		$	3,296
Billings in excess of costs and estimated earnings on uncompleted contracts		(976	)		(1,195	)
Net costs in excess of billings on uncompleted contracts	$	2,626		$	2,101