Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

v3.21.2
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 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 three and six months ended June 30, 2021 were U.S. Regions, U.S. Federal, Canada and Non-Solar Distributed Generation (“Non-Solar DG”). 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 three months ended June 30, 2021:
U.S. Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 92,601  $ 77,075  $ 7,307  $ 9,241  $ 10,031  $ 196,255 
O&M revenue 5,303  11,742  —  2,462  89  19,596 
Energy assets 10,046  1,371  1,571  23,852  101  36,941 
Integrated-PV —  —  —  —  10,721  10,721 
Other 1,520  12  1,996  16  6,863  10,407 
Total revenues $ 109,470  $ 90,200  $ 10,874  $ 35,571  $ 27,805  $ 273,920 
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended June 30, 2020:
U.S. Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 76,040  $ 72,220  $ 6,167  $ 3,004  $ 2,499  $ 159,930 
O&M revenue 4,283  10,755  17  2,120  133  17,308 
Energy assets 8,080  1,505  1,344  17,820  —  28,749 
Integrated-PV —  —  —  —  8,530  8,530 
Other 1,171  11  1,507  185  5,645  8,519 
Total revenues $ 89,574  $ 84,491  $ 9,035  $ 23,129  $ 16,807  $ 223,036 
The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2021:
U.S. Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 163,759  $ 167,164  $ 16,308  $ 13,895  $ 15,822  $ 376,948 
O&M revenue 9,613  23,182  26  5,099  160  38,080 
Energy assets 18,856  2,035  2,318  46,783  236  70,228 
Integrated-PV —  —  —  —  19,875  19,875 
Other 2,515  33  3,865  162  14,416  20,991 
Total revenues $ 194,743  $ 192,414  $ 22,517  $ 65,939  $ 50,509  $ 526,122 
The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2020:
U.S. Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 147,533  $ 128,334  $ 15,031  $ 5,375  $ 8,086  $ 304,359 
O&M revenue 8,635  22,381  26  4,135  193  35,370 
Energy assets 16,934  2,224  2,007  35,806  —  56,971 
Integrated-PV —  —  —  —  19,999  19,999 
Other 2,312  297  3,363  537  12,241  18,750 
Total revenues $ 175,414  $ 153,236  $ 20,427  $ 45,853  $ 40,519  $ 435,449 
The following table presents information related to our revenue recognized over time:
Three Months Ended Six Months Ended
June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
Percentage of revenue recognized over time 94% 94% 94% 93%
The remainder 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,
2021 2020 2021 2020
United States $ 252,536  $ 211,218  $ 486,545  $ 407,157 
Canada 9,973  8,458  20,826  19,011 
Other 11,411  3,360  18,751  9,281 
Total revenues $ 273,920  $ 223,036  $ 526,122  $ 435,449 
Contract Balances
The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers:
  June 30, 2021 December 31, 2020
Accounts receivable, net $ 115,462  $ 125,010 
Accounts receivable retainage, net $ 36,485  $ 30,189 
Contract Assets:
Costs and estimated earnings in excess of billings $ 195,027  $ 185,960 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 26,561  $ 33,984 
Billings in excess of cost and estimated earnings, non-current (1)
6,082  6,631 
Total contract liabilities $ 32,643  $ 40,615 
June 30, 2020 December 31, 2019
Accounts receivable, net $ 86,017  $ 95,863 
Accounts receivable retainage, net $ 19,119  $ 16,976 
Contract Assets:
Costs and estimated earnings in excess of billings $ 195,391  $ 202,243 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 34,896  $ 26,618 
Billings in excess of cost and estimated earnings, non-current (1)
5,035  5,560 
Total contract liabilities $ 39,931  $ 32,178 
(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, 2021 was primarily due to revenue recognized of $277,960 offset by billings of $288,012. Contract assets also increased due to reclassifications from contract liabilities as a result of timing of customer payments. The decrease in contract liabilities was primarily driven by recognition of revenue as performance obligations were satisfied exceeding increases from the receipt of advance payment from customers, and related billings. For the six months ended June 30, 2021, we recognized revenue of $98,570 that was previously included in the beginning balance of contract liabilities and billed customers $70,884. Changes in contract liabilities are also driven by reclassifications to or from contract assets as a result of timing of customer payments.
The decrease in contract assets for the six months ended June 30, 2020 was primarily due to billings of approximately $285,036, partially offset by revenue recognized of $276,492. The increase in contract liabilities was primarily driven by the receipt of advance payment from customers, and related billings, exceeding increases from the recognition of revenue as performance obligations were satisfied. For the six months ended June 30, 2020, we billed customers $50,697 and recognized revenue of $44,446 that was previously included in the beginning balance of contract liabilities. Changes in contract liabilities are also driven by reclassifications to or from contract assets as a result of timing of customer payments.

Performance Obligations
Our remaining performance obligations (“backlog”) represent the unrecognized revenue value of our contract commitments. At June 30, 2021, we had backlog of $1,902,420 of which approximately 35% 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 $2,128 and $1,543 were included in other long-term assets in the accompanying condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020, respectively. Project development costs of $3,109 and $4,258 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the three months ended June 30, 2021 and 2020, respectively. Project development costs of $5,094 and $5,865 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the six months ended June 30, 2021 and 2020, respectively.
No impairment charges in connection with our capitalized commission costs or project development costs were recorded during the six months ended June 30, 2021 and 2020.