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, 2021
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, 2021 were U.S. Regions, U.S. Federal, Canada, Non-Solar Distributed Generation (“Non-Solar DG”), and All Other. On January 1, 2021, we changed the structure of our internal organization, and our U.S. Regions segment now includes our U.S.-based enterprise energy management services previously included in our “All Other” 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 year ended December 31, 2021:
US Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 463,173  $ 340,686  $ 36,755  $ 25,377  $ 37,969  $ 903,960 
O&M revenue 21,117  47,072  71  9,724  629  78,613 
Energy assets 39,533  4,913  4,529  101,804  472  151,251 
Integrated-PV —  —  —  —  41,202  41,202 
Other 4,470  277  8,102  338  27,484  40,671 
Total revenues $ 528,293  $ 392,948  $ 49,457  $ 137,243  $ 107,756  $ 1,215,697 
The following table presents our revenue disaggregated by line of business and reportable segment for the year ended December 31, 2020:
US Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 347,137  $ 327,626  $ 36,708  $ 21,883  $ 31,252  $ 764,606 
O&M revenue 18,209  45,423  169  8,261  300  72,362 
Energy assets 34,403  4,358  4,075  75,150  211  118,197 
Integrated-PV —  —  —  —  39,112  39,112 
Other 4,403  475  6,845  1,123  25,152  37,998 
Total revenues $ 404,152  $ 377,882  $ 47,797  $ 106,417  $ 96,027  $ 1,032,275 
The following table presents our revenue disaggregated by line of business and reportable segment for the year ended December 31, 2019:
US Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 321,973  $ 240,656  $ 27,995  $ 9,221  $ 11,219  $ 611,064 
O&M revenue 15,753  41,599  5  9,183  169  66,709 
Energy assets 25,719  3,652  3,306  65,365  —  98,042 
Integrated-PV —  —  —  —  47,953  47,953 
Other 5,803  1,519  6,613  914  28,316  43,165 
Total revenues $ 369,248  $ 287,426  $ 37,919  $ 84,683  $ 87,657  $ 866,933 
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,
2021 2020 2019
Percentage of revenue recognized over time 94  % 94  % 92  %
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, 2021 December 31, 2020
Accounts receivable, net $ 161,970  $ 125,010 
Accounts receivable retainage 43,067  30,189 
Contract Assets
Costs and estimated earnings in excess of billings 306,172    185,960 
Contract Liabilities
Billings in excess of cost and estimated earnings 35,918  33,984 
Billings in excess of cost and estimated earnings, non-current (1)
6,481  6,631 
Total contract liabilities $ 42,399  $ 40,615 
(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, 2021 was primarily due to revenue recognized of $708,384, offset in part by billings of $618,041. The increase in contract liabilities was primarily driven by the receipt of advance payments from customers, and related billings, exceeding recognition of revenue as performance obligations were satisfied. For the year ended December 31, 2021, we recognized revenue of $207,746 and billed $181,284 to customers that had balances which were included in contract liabilities at December 31, 2020. Changes in contract liabilities are also driven by reclassifications to or from contract assets as a result of timing of customer payments, as well as acquired contract assets and liabilities.
The decrease in contract assets for the year ended December 31, 2020 was primarily due to billings of $644,583, offset in part by revenue recognized of $618,839. The increase in contract liabilities was primarily driven by the receipt of advance payments from customers, and related billings, exceeding recognition of revenue as performance obligations were satisfied. For the year ended December 31, 2020, we recognized revenue of $132,622, and billed customers $140,275 to customers that had balances which were included in contract liabilities at December 31, 2019.
Backlog
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, 2021, we had fully-contracted backlog of $2,640,960 and approximately 52% 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, 2021 and 2020, 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, 2021 and 2020, the amortization of commission costs related to contracts was not material and have been included in the accompanying consolidated statements of income.
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,
2021 2020 2019
Project development costs recognized $ 12,737  $ 12,790  $ 35,172 
No impairment charges in connection with our commission costs or project development costs were recorded during the years ended December 31, 2021 and 2020.