Annual report pursuant to Section 13 and 15(d)

Revenue from Contracts with Customers

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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 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 year ended December 31, 2023 were U.S. Regions, U.S. Federal, Canada, Alternative Fuels, and Europe. The remaining amounts are included in “All Other”. Europe was formerly included in “All Other” but was disaggregated due to growth in the segment in 2023. 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 year ended December 31, 2023:
U.S. Regions U.S. Federal Canada Alternative Fuels Europe All Other Total
Project revenue $ 465,342  $ 342,238  $ 53,737  $ —  $ 138,730  $ 1,250  $ 1,001,297 
O&M revenue 26,210  53,496  100  10,697  1,980  —  92,483 
Energy assets 60,450  6,326  4,223  106,359  1,531  —  178,889 
Integrated-PV 4  —  —  —  —  45,739  45,743 
Other 5,116  824  12,050  19  10,601  27,611  56,221 
Total revenues $ 557,122  $ 402,884  $ 70,110  $ 117,075  $ 152,842  $ 74,600  $ 1,374,633 
The following table presents our revenue disaggregated by line of business and reportable segment for the year ended December 31, 2022:
U.S. Regions U.S. Federal Canada Alternative Fuels Europe All Other Total
Project revenue $ 1,049,465  $ 333,846  $ 44,273  $ —  $ 53,680  $ —  $ 1,481,264 
O&M revenue 22,217  51,857  42  10,377  471  1  84,965 
Energy assets 47,372  5,822  4,447  104,082  368  —  162,091 
Integrated-PV —  —  —  —  —  49,696  49,696 
Other 4,289  366  9,796  —  7,126  24,829  46,406 
Total revenues $ 1,123,343  $ 391,891  $ 58,558  $ 114,459  $ 61,645  $ 74,526  $ 1,824,422 
The following table presents our revenue disaggregated by line of business and reportable segment for the year ended December 31, 2021:
U.S. Regions U.S. Federal Canada Alternative Fuels Europe All Other Total
Project revenue $ 488,507  $ 340,686  $ 36,776  $ —  $ 37,970  $ 21  $ 903,960 
O&M revenue 21,551  47,072  71  9,288  631  —  78,613 
Energy assets 39,433  4,913  4,532  101,811  562  —  151,251 
Integrated-PV —  —  —  —  —  41,202  41,202 
Other 1,627  277  8,104  124  7,001  23,538  40,671 
Total revenues $ 551,118  $ 392,948  $ 49,483  $ 111,223  $ 46,164  $ 64,761  $ 1,215,697 
See Note 16 for our revenue disaggregated by geographical region.
The following table presents information related to our revenue recognized over time:
Year Ended December 31,
2023 2022 2021
Percentage of revenue recognized over time 95  % 96  % 95  %
The remainder of our revenue is for products and services transferred at a point in time, at which point revenue is recognized.
Contract Balances
The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers:
  December 31, 2023 December 31, 2022
Accounts receivable, net $ 153,362  $ 174,009 
Accounts receivable retainage 33,826  38,057 
Contract Assets
Costs and estimated earnings in excess of billings 636,163    576,363 
Contract Liabilities
Billings in excess of cost and estimated earnings 52,903  34,796 
Billings in excess of cost and estimated earnings, non-current (1)
18,393  7,617 
Total contract liabilities $ 71,296  $ 42,413 
(1) Performance obligations that are expected to be completed beyond the next twelve months and are included in other liabilities in the consolidated balance sheets.
The increase in contract assets for the year ended December 31, 2023 was primarily due to revenue recognized of $940,317, offset in part by billings of $886,788. 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 year ended December 31, 2023, we recognized revenue of $160,713 and billed $184,174 to customers that had balances which were included in contract liabilities at December 31, 2022.
The increase in contract assets for the year ended December 31, 2022 was primarily due to revenue recognized of $1,371,455, offset in part by billings of $1,103,926. 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 year ended December 31, 2022, we recognized revenue of $135,506, and billed $129,749 to customers that had balances which were included in contract liabilities at December 31, 2021.
Performance Obligations
Our remaining performance obligations (“fully-contracted backlog”) represent the unrecognized revenue value of our contract commitments. Our backlog may vary significantly each reporting period based on the timing of major new contract commitments and the fully-contracted backlog may fluctuate with currency movements. In addition, our customers have the right, under some circumstances, to terminate contracts or defer the timing of our services and their payments to us. At December 31, 2023, we had fully-contracted backlog of $2,545,403 and approximately 32% of our fully-contracted backlog 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 O&M services related to these projects. The long-term services have varying initial contract terms, up to 25 years.
We applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed.
Contract Acquisition Costs
As of December 31, 2023 and 2022, we had capitalized commission costs of $1,735, related to contracts that were not completed, which were included in other assets in the accompanying consolidated balance sheets. For contracts that have a duration of less than one year, we follow a practical expedient and expense these costs when incurred. During the years ended December 31, 2023 and 2022, the amortization of commission costs related to contracts was not material and have been included in the accompanying consolidated statements of income.
Project Development Costs
The following table presents information related to our project development costs recognized in the consolidated statements of income on projects that converted to customer contracts:
Year Ended December 31,
2023 2022 2021
Project development costs recognized $ 13,051  $ 15,507  $ 12,737 
No impairment charges in connection with our commission costs or project development costs were recorded during the years ended December 31, 2023, 2022 and 2021.