Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

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Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMER REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
Our reportable segments for the three months ended March 31, 2024 were North America Regions, U.S. Federal, Europe, Alternative Fuels and All Other. On January 1, 2024, we changed the structure of our internal organization, and our U.S. Regions and Canada are now included in North America Regions. Additionally, our Asset Sustainability Group was formerly included in Canada, but is now included in “All Other”. 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 March 31, 2024:
North America Regions U.S. Federal Europe Alternative Fuels All Other Total
Project revenue $ 116,211  $ 43,479  $ 41,424  $ 3,163  $ 7  $ 204,284 
O&M revenue 6,933  15,278  747  2,377  —  25,335 
Energy assets 13,754  1,929  171  27,300  —  43,154 
Other 1,387  204  1,780  19  22,243  25,633 
Total revenues $ 138,285  $ 60,890  $ 44,122  $ 32,859  $ 22,250  $ 298,406 
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended March 31, 2023:
North America Regions U.S. Federal Europe Alternative Fuels All Other Total
Project revenue $ 119,231  $ 45,549  $ 17,200  $ —  $ 1,250  $ 183,230 
O&M revenue 5,539  12,700  333  3,686  —  22,258 
Energy assets 14,407  1,076  519  24,653  117  40,772 
Other 1,365  231  1,044  —  22,142  24,782 
Total revenues $ 140,542  $ 59,556  $ 19,096  $ 28,339  $ 23,509  $ 271,042 

The following table presents information related to our revenue recognized over time:
Three Months Ended March 31,
2024 2023
Percentage of revenue recognized over time 94% 93%
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 March 31,
2024 2023
United States $ 239,099  $ 233,084 
Canada 15,180  17,234 
Europe 44,127  20,724 
Total revenues $ 298,406  $ 271,042 
Contract Balances
The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers:
  March 31, 2024 December 31, 2023
Accounts receivable, net $ 146,836  $ 153,362 
Accounts receivable retainage, net 32,158  33,826 
Contract Assets:
Costs and estimated earnings in excess of billings $ 652,428  $ 636,163 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 61,267  $ 52,903 
Billings in excess of cost and estimated earnings, non-current (1)
19,883  18,688 
Total contract liabilities $ 81,150  $ 71,591 
March 31, 2023 December 31, 2022
Accounts receivable, net $ 130,940  $ 174,009 
Accounts receivable retainage, net 35,625  38,057 
Contract Assets:
Costs and estimated earnings in excess of billings $ 497,762  $ 576,363 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 39,326  $ 34,796 
Billings in excess of cost and estimated earnings, non-current (1)
12,510  7,617 
Total contract liabilities $ 51,836  $ 42,413 
(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 three months ended March 31, 2024 was primarily due to billings of $210,475 offset by revenue recognized of $203,216. 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 three months ended March 31, 2024, we recognized revenue of $60,748 and billed $46,306 to customers that had balances which were included in contract liabilities at December 31, 2023.
The decrease in contract assets for the three months ended March 31, 2023 was primarily due to billings of $286,203 offset by revenue recognized of $190,415. Contract assets also decreased 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 three months ended March 31, 2023, we recognized revenue of $34,715 and billed $39,082 to customers that had balances which were 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 March 31, 2024, we had contracted backlog of $2,658,592 of which approximately 32% 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 $3,120 and $2,612 were recognized in our condensed consolidated statements of (loss) income on projects that converted to customer contracts during the three months ended March 31, 2024 and 2023, respectively.
No impairment charges in connection with our project development costs were recorded during the three or three months ended March 31, 2024 and 2023.