Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2024
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, 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 June 30, 2024:
North America Regions U.S. Federal Europe Alternative Fuels All Other Total
Project revenue $ 178,742  $ 68,080  $ 70,064  $ 13,884  $ (7) $ 330,763 
O&M revenue 8,511  14,628  895  2,136  —  26,170 
Energy assets 19,746  3,724  189  29,728  29  53,416 
Other 1,132  305  1,911  104  24,181  27,633 
Total revenues $ 208,131  $ 86,737  $ 73,059  $ 45,852  $ 24,203  $ 437,982 
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended June 30, 2023:
North America Regions U.S. Federal Europe Alternative Fuels All Other Total
Project revenue $ 124,584  $ 63,904  $ 40,399  $ —  $ —  $ 228,887 
O&M revenue 6,362  13,901  460  2,295  —  23,018 
Energy assets 19,391  2,164  452  28,021  (22) 50,006 
Other 1,434  50  2,214  —  21,465  25,163 
Total revenues $ 151,771  $ 80,019  $ 43,525  $ 30,316  $ 21,443  $ 327,074 
The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2024:
North America Regions U.S. Federal Europe Alternative Fuels All Other Total
Project revenue $ 294,953  $ 111,559  $ 111,488  $ 17,047  $ —  $ 535,047 
O&M revenue 15,444  29,906  1,642  4,513  —  51,505 
Energy assets 33,500  5,653  360  57,028  29  96,570 
Other 2,519  509  3,691  123  46,424  53,266 
Total revenues $ 346,416  $ 147,627  $ 117,181  $ 78,711  $ 46,453  $ 736,388 
The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2023:
North America Regions U.S. Federal Europe Alternative Fuels All Other Total
Project revenue $ 243,815  $ 109,453  $ 57,599  $ —  $ 1,250  $ 412,117 
O&M revenue 11,901  26,601  793  5,981  —  45,276 
Energy assets 33,798  3,240  971  52,674  95  90,778 
Other 2,799  281  3,258  —  43,607  49,945 
Total revenues $ 292,313  $ 139,575  $ 62,621  $ 58,655  $ 44,952  $ 598,116 

The following table presents information related to our revenue recognized over time:
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Percentage of revenue recognized over time 96% 95% 95% 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 June 30, Six Months Ended June 30,
2024 2023 2024 2023
United States $ 349,500  $ 270,957  $ 588,599  $ 504,041 
Canada 15,416  13,566  30,596  30,800 
Europe 73,066  42,551  117,193  63,275 
Total revenues $ 437,982  $ 327,074  $ 736,388  $ 598,116 
Contract Balances
The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers:
  June 30, 2024 December 31, 2023
Accounts receivable, net $ 154,665  $ 153,362 
Accounts receivable retainage, net 39,225  33,826 
Contract Assets:
Costs and estimated earnings in excess of billings $ 651,748  $ 636,163 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 97,493  $ 52,903 
Billings in excess of cost and estimated earnings, non-current (1)
20,340  18,688 
Total contract liabilities $ 117,833  $ 71,591 
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 
(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 six months ended June 30, 2024 was primarily due to revenue recognized of $490,125 offset by billings of $494,441. 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 six months ended June 30, 2024, we recognized revenue of $148,279 and billed $153,688 to customers that had balances which were included in contract liabilities at December 31, 2023.
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 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, 2024, we had contracted backlog of $2,836,452 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 $3,164 and $3,605 were recognized in our condensed consolidated statements of income on projects that converted to customer contracts during the three months ended June 30, 2024 and 2023, respectively. Project development costs of $6,284 and $6,217 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the six months ended June 30, 2024 and 2023, respectively.
No impairment charges in connection with our project development costs were recorded during the three or six months ended June 30, 2024 and 2023.