Contract Receivables

12 Months Ended

Dec. 31, 2017

Contract Receivables [Abstract]

Contract Receivables

5.  Contract Receivables

Contract receivables represent balances due from a broad base of both domestic and international customers. All contract receivables are considered to be collectible within twelve months. Recoverable costs and accrued profit not billed represent costs incurred and associated profit accrued on contracts that will become billable upon future milestones or completion of contracts. The components of contract receivables are as follows:

(in thousands)	December 31,
	2017		2016
Billed receivables	$	8,154	$	13,325
Recoverable costs and accrued profit not yet billed		5,980		5,555
Allowance for doubtful accounts		(137)		(17)
Total contract receivables, net	$	13,997	$	18,863

During January 2018, the Company invoiced $4.7 million of the unbilled amounts related to the balance at December 31, 2017.

On March 29, 2017, Westinghouse, a customer of our Performance Improvement Solutions segment, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York, Case No. 17-10751. During the second quarter of 2017, Westinghouse assumed one of our contracts related to Southern Nuclear Company. Therefore, we have not recorded a reserve for outstanding receivables related to this contract. On July 31, 2017, South Carolina Electric and Gas Company announced that it will cease construction of new nuclear plants at the V.C. Summer Nuclear Station, one of the facilities for which the Company has an executory contract with Westinghouse for the provision of simulator software and equipment. Although there has been no formal rejection of the contract as part of the Westinghouse bankruptcy process, GSE now considers it likely that Westinghouse will reject the parties' contract pertaining to the V.C. Summer Nuclear Station. Therefore, at June 30, 2017, GSE reserved 100% of accounts receivable, unbilled receivables, and billings in excess related to the V.C. Summer Nuclear Station, resulting in a net bad debt charge of $118,000.

At December 31, 2017, in addition to the foregoing amounts associated with the V.C. Summer Nuclear Station, the Company had approximately $31,000 in net billed and unbilled pre-petition receivables attributable to Westinghouse, and it was fully collected in January 2018. Therefore, none of the remaining outstanding amounts have been reserved at December 31, 2017.

The activity in the allowance for doubtful accounts is as follows:

(in thousands)	As of and for the
	years ended December 31,
	2017		2016
Beginning balance	$	17	$	103
Current year provision		118		-
Current year write-offs		-		(86)
Currency adjustment		2		-
Ending balance	$	137	$	17