Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

v3.22.2.2
Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
Our reportable segments for the three and nine months ended September 30, 2022 were U.S. Regions, U.S. Federal, Canada, Alternative Fuels (formerly Non-Solar Distributed Generation (“Non-Solar DG”)) and All Other. On January 1, 2022, we changed the structure of our internal organization and our “All Other” segment now includes our U.S.-based enterprise energy management services previously included in our U.S Regions segment and our U.S. Regions segment now includes U.S. project revenue and associated costs previously included in our former Non-Solar DG segment. As a result, previously reported amounts have been reclassified for comparative purposes.
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended September 30, 2022:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 251,338  $ 83,878  $ 8,788  $ —  $ 7,527  $ 351,531 
O&M revenue 5,936  13,524  10  2,251  133  21,854 
Energy assets 11,892  1,570  1,264  26,956  —  41,682 
Integrated-PV —  —  —  —  13,616  13,616 
Other 2,040  152  2,304  214  7,903  12,613 
Total revenues $ 271,206  $ 99,124  $ 12,366  $ 29,421  $ 29,179  $ 441,296 
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended September 30, 2021:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 91,366  $ 82,967  $ 8,339  $ —  $ 11,344  $ 194,016 
O&M revenue $ 5,957  $ 11,787  $ —  $ 2,167  $ 93  20,004 
Energy assets $ 9,796  $ 1,804  $ 1,409  $ 26,070  $ 155  39,234 
Integrated-PV $ —  $ —  $ —  $ —  $ 10,439  10,439 
Other $ 592  $ 98  $ 1,910  $ 1  $ 7,388  9,989 
Total revenues $ 107,711  $ 96,656  $ 11,658  $ 28,238  $ 29,419  $ 273,682 

The following table presents our revenue disaggregated by line of business and reportable segment for the nine months ended September 30, 2022:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 928,616  $ 231,945  $ 32,899  $ —  $ 40,595  $ 1,234,055 
O&M revenue 16,473  39,186  32  7,361  319  63,371 
Energy assets 34,163  4,734  3,512  80,513  111  123,033 
Integrated-PV —  —  —  —  37,239  37,239 
Other 3,859  333  7,556  —  23,249  34,997 
Total revenues $ 983,111  $ 276,198  $ 43,999  $ 87,874  $ 101,513  $ 1,492,695 
The following table presents our revenue disaggregated by line of business and reportable segment for the nine months ended September 30, 2021:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 269,021  $ 250,130  $ 24,647  $ —  $ 27,166  $ 570,964 
O&M revenue 15,775  34,969  26  7,061  253  58,084 
Energy assets 28,656  3,839  3,727  72,861  381  109,464 
Integrated-PV —  —  —  —  30,313  30,313 
Other 1,526  130  5,776  109  23,438  30,979 
Total revenues $ 314,978  $ 289,068  $ 34,176  $ 80,031  $ 81,551  $ 799,804 

The following table presents information related to our revenue recognized over time:
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Percentage of revenue recognized over time 95% 93% 96% 94%
The remainder of our revenue is for products and services transferred at a point in time, at which point revenue is recognized.
We attribute revenues to customers based on the location of the customer. The following table presents information related to our revenues by geographic area:
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
United States $ 421,939  $ 250,441  $ 1,409,210  $ 736,986 
Canada 11,416  10,832  40,429  31,658 
Other 7,941  12,409  43,056  31,160 
Total revenues $ 441,296  $ 273,682  $ 1,492,695  $ 799,804 

Contract Balances
The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers:
  September 30, 2022 December 31, 2021
Accounts receivable, net $ 219,817  $ 161,970 
Accounts receivable retainage, net $ 42,456  $ 43,067 
Contract Assets:
Costs and estimated earnings in excess of billings $ 628,529  $ 306,172 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 43,173  $ 35,918 
Billings in excess of cost and estimated earnings, non-current (1)
6,310  6,481 
Total contract liabilities $ 49,483  $ 42,399 
September 30, 2021 December 31, 2020
Accounts receivable, net $ 112,893  $ 125,010 
Accounts receivable retainage, net $ 39,404  $ 30,189 
Contract Assets:
Costs and estimated earnings in excess of billings $ 213,468  $ 185,960 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 28,018  $ 33,984 
Billings in excess of cost and estimated earnings, non-current (1)
6,795  6,631 
Total contract liabilities $ 34,813  $ 40,615 
(1) Performance obligations that are expected to be completed beyond the next twelve months and are included in other liabilities in the condensed consolidated balance sheets.
The increase in contract assets for the nine months ended September 30, 2022 was primarily due to revenue recognized of $1,168,996 offset by billings of $850,243. Contract assets also increased due to reclassifications, primarily from contract liabilities as a result of timing of customer payments. The increase in contract liabilities was primarily driven by the receipt of advance payments from customers, and related billings, as well as reclassifications from contract assets as a result of timing of customer payments. The advance payments and reclassifications exceeded the recognition of revenue as performance obligations were satisfied. For the nine months ended September 30, 2022, we billed customers $99,121 and recognized revenue of $99,424 that was previously included in the beginning balance of contract liabilities.
The increase in contract assets for the nine months ended September 30, 2021 was primarily due to revenue recognized of $414,049 offset by billings of $422,565. Contract assets also increased due to reclassifications, primarily from contract liabilities as a result of timing of customer payments. The decrease in contract liabilities was primarily driven by recognition of revenue as performance obligations were satisfied exceeding increases from the receipt of advance payment from customers, and related billings. For the nine months ended September 30, 2021, we recognized revenue of $161,037 that was previously included in the beginning balance of contract liabilities and billed customers $123,891. Changes in contract liabilities are also driven by reclassifications to or from contract assets as a result of timing of customer payments.
Performance Obligations
Our remaining performance obligations (“backlog”) represent the unrecognized revenue value of our contract commitments. At September 30, 2022, we had contracted backlog of $2,179,085 of which approximately 29% is anticipated to be recognized as revenue in the next twelve months. The remaining performance obligations primarily relate to the energy efficiency and renewable energy construction projects, including long-term operations and maintenance (“O&M”) services related to these projects. The long-term services have varying initial contract terms, up to 25 years.
Project Development Costs
Project development costs of $5,614 and $2,632 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the three months ended September 30, 2022 and 2021, respectively. Project development costs of $11,594 and $7,725 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the nine months ended September 30, 2022 and 2021, respectively.
No impairment charges in connection with our project development costs were recorded during the three or nine months ended September 30, 2022 and 2021.