Annual report pursuant to Section 13 and 15(d)

Contract Assets and Contract Liabilities (Tables)

v3.19.1
Contract Assets and Contract Liabilities (Tables)
12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
Contract with Customer, Asset and Liability
The following table presents the net contract assets and liabilities for the electrical construction operations as of the dates indicated:
 
 
December 31, 2018
 
December 31, 2017
 
$ Change
Contract assets (1)
 
$
12,030,000

 
$
6,074,346

 
$
5,955,654

Contract liabilities (2)
 
(1,845,049
)
 
(367,552
)
 
(1,477,497
)
Net contract assets
 
$
10,184,951

 
$
5,706,794

 
$
4,478,157

___________________________
 
 
 
 
 
 
(1) Contract assets consist of amounts under the caption Costs and estimated earnings in excess of billings on uncompleted contracts.
(2) Contract liabilities consist of the aggregate of amounts presented under the caption Billings in excess of costs and estimated earnings on uncompleted contracts and any contract loss accruals included in Accounts payable and accrued liabilities.
The amounts billed but not paid by customers pursuant to retention provisions of the electrical construction contracts were $2.2 million and $3.3 million as of December 31, 2018 and 2017, respectively, and are included in the accompanying consolidated balance sheets in accounts receivable and accrued billings. Retainage is expected to be collected within the next twelve months.
The following table presents the changes in the net contract assets and liabilities for the electrical construction operations for the twelve months ended December 31, 2018:
 
 
$ Change
Cumulative adjustment due to changes in contract values (1)
 
$
1,877,219

Cumulative adjustment due to changes in estimated costs at completion
 
(1,556,467
)
Revenue recognized in the period
 
100,224,125

Amounts reclassified to receivables
 
(95,587,957
)
Impairment of contract assets (2)
 
(478,763
)
Total
 
$
4,478,157

(1) Amount attributable to contract modifications accounted for on a cumulative catch-up basis where the customer has approved a change in the scope or price of the contract, where the modification is treated as part of the existing contract and where the remaining goods and services are not distinct.
(2) Adjustment amounts due to changes in contract losses.