Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

v3.23.2
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2023
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 six months ended June 30, 2023 and 2022 were U.S. Regions, U.S. Federal, Canada, Alternative Fuels and All Other.
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended June 30, 2023:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 113,502  $ 63,904  $ 11,082  $ —  $ 40,399  $ 228,887 
O&M revenue 6,309  13,901  53  2,295  460  23,018 
Energy assets 18,057  2,164  1,334  28,021  430  50,006 
Integrated-PV —  —  —  —  11,486  11,486 
Other 1,117  50  2,726  —  9,784  13,677 
Total revenues $ 138,985  $ 80,019  $ 15,195  $ 30,316  $ 62,559  $ 327,074 
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended June 30, 2022:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 378,646  $ 85,850  $ 10,160  $ —  $ 14,464  $ 489,120 
O&M revenue 5,457  13,365  11  2,122  95  21,050 
Energy assets 12,253  2,074  1,487  27,070  39  42,923 
Integrated-PV —  —  —  —  12,267  12,267 
Other 1,029  139  2,803  —  8,066  12,037 
Total revenues $ 397,385  $ 101,428  $ 14,461  $ 29,192  $ 34,931  $ 577,397 

The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2023:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 217,822  $ 109,453  $ 25,993  $ —  $ 58,849  $ 412,117 
O&M revenue 11,838  26,601  63  5,981  793  45,276 
Energy assets 31,708  3,240  2,096  52,674  1,060  90,778 
Integrated-PV —  —  —  —  23,430  23,430 
Other 1,986  281  5,454  —  18,794  26,515 
Total revenues $ 263,354  $ 139,575  $ 33,606  $ 58,655  $ 102,926  $ 598,116 
The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2022:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 677,278  $ 148,067  $ 24,111  $ —  $ 33,068  $ 882,524 
O&M revenue 10,537  25,662  22  4,896  186  41,303 
Energy assets 22,271  3,164  2,248  53,557  111  81,351 
Integrated-PV —  —  —  —  23,623  23,623 
Other 1,819  181  5,252  —  15,346  22,598 
Total revenues $ 711,905  $ 177,074  $ 31,633  $ 58,453  $ 72,334  $ 1,051,399 

The following table presents information related to our revenue recognized over time:
Three Months Ended June 30, Six Months Ended June 30,
2023 2022 2023 2022
Percentage of revenue recognized over time 95% 97% 94% 97%
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 June 30, Six Months Ended June 30,
2023 2022 2023 2022
United States $ 270,957  $ 548,880  $ 504,041  $ 987,271 
Canada 13,566  13,025  30,800  29,013 
Other 42,551  15,492  63,275  35,115 
Total revenues $ 327,074  $ 577,397  $ 598,116  $ 1,051,399 

Contract Balances
The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers:
  June 30, 2023 December 31, 2022
Accounts receivable, net $ 123,361  $ 174,009 
Accounts receivable retainage, net $ 37,803  $ 38,057 
Contract Assets:
Costs and estimated earnings in excess of billings $ 575,113  $ 576,363 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 40,459  $ 34,796 
Billings in excess of cost and estimated earnings, non-current (1)
15,659  7,617 
Total contract liabilities $ 56,118  $ 42,413 
June 30, 2022 December 31, 2021
Accounts receivable, net $ 207,990  $ 161,970 
Accounts receivable retainage, net $ 43,444  $ 43,067 
Contract Assets:
Costs and estimated earnings in excess of billings $ 663,798  $ 306,172 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 39,787  $ 35,918 
Billings in excess of cost and estimated earnings, non-current (1)
$ 6,175  $ 6,481 
Total contract liabilities $ 45,962  $ 42,399 
(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 decrease in contract assets for the six months ended June 30, 2023 was primarily due to billings of $436,030 offset by revenue recognized of $413,181. Contract assets are also affected by 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 six months ended June 30, 2023, we recognized revenue of $73,585 and billed $80,774 to customers that had balances which were included in contract liabilities at December 31, 2022.
The increase in contract assets for the six months ended June 30, 2022 was primarily due to revenue recognized of $845,211 offset by billings of $492,820. 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. In addition, the advance payments and reclassifications exceeded the recognition of revenue as performance obligations were
satisfied. For the six months ended June 30, 2022, we billed customers $59,453 and recognized revenue of $64,145 that was previously included in the beginning balance of contract liabilities.
Performance Obligations
Our remaining performance obligations (“backlog”) represent the unrecognized revenue value of our contract commitments. At June 30, 2023, we had contracted backlog of $2,328,660 of which approximately 36% 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 $3,605 and $1,771 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the three months ended June 30, 2023 and 2022, respectively. Project development costs of $6,217 and $5,980 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the six months ended June 30, 2023 and 2022, respectively.
No impairment charges in connection with our project development costs were recorded during the three or six months ended June 30, 2023 and 2022.