Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

v3.21.2
Revenue from Contracts with Customers
 9 Months Ended
Sep. 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 nine months ended September 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 September 30, 2021:
U.S. Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 86,094  $ 82,966  $ 8,317  $ 5,316  $ 11,323  $ 194,016 
O&M revenue 5,830  11,787  —  2,298  90  20,005 
Energy assets 9,870  1,804  1,406  26,070  85  39,235 
Integrated-PV —  —  —  —  10,438  10,438 
Other 1,242  97  1,908  127  6,614  9,988 
Total revenues $ 103,036  $ 96,654  $ 11,631  $ 33,811  $ 28,550  $ 273,682 
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended September 30, 2020:
U.S. Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 79,201  $ 105,444  $ 9,311  $ 7,506  $ 13,941  $ 215,403 
O&M revenue 4,492  11,384  —  2,009  36  17,921 
Energy assets 9,134  1,325  1,227  18,535  87  30,308 
Integrated-PV —  —  —  —  9,421  9,421 
Other 897  150  1,725  201  6,481  9,454 
Total revenues $ 93,724  $ 118,303  $ 12,263  $ 28,251  $ 29,966  $ 282,507 
The following table presents our revenue disaggregated by line of business and reportable segment for the nine months ended September 30, 2021:
U.S. Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 249,853  $ 250,130  $ 24,625  $ 19,211  $ 27,145  $ 570,964 
O&M revenue 15,443  34,969  26  7,397  250  58,085 
Energy assets 28,726  3,839  3,724  72,853  321  109,463 
Integrated-PV —  —  —  —  30,313  30,313 
Other 3,757  130  5,773  289  21,030  30,979 
Total revenues $ 297,779  $ 289,068  $ 34,148  $ 99,750  $ 79,059  $ 799,804 
The following table presents our revenue disaggregated by line of business and reportable segment for the nine months ended September 30, 2020:
U.S. Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 226,734  $ 233,778  $ 24,342  $ 12,881  $ 22,027  $ 519,762 
O&M revenue 13,127  33,765  26  6,144  229  53,291 
Energy assets 26,068  3,549  3,234  54,341  87  87,279 
Integrated-PV —  —  —  —  29,420  29,420 
Other 3,209  447  5,088  738  18,722  28,204 
Total revenues $ 269,138  $ 271,539  $ 32,690  $ 74,104  $ 70,485  $ 717,956 
The following table presents information related to our revenue recognized over time:
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
Percentage of revenue recognized over time 93% 95% 94% 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 September 30, Nine Months Ended September 30,
2021 2020 2021 2020
United States $ 250,441  $ 256,326  $ 736,986  $ 663,483 
Canada 10,832  11,630  31,658  30,641 
Other 12,409  14,551  31,160  23,832 
Total revenues $ 273,682  $ 282,507  $ 799,804  $ 717,956 
Contract Balances
The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers:
  September 30, 2021 December 31, 2020
Accounts receivable, net $ 112,893  $ 125,010 
Accounts receivable retainage, net $ 39,404  $ 30,189 
Contract Assets:
Costs and estimated earnings in excess of billings $ 213,468  $ 185,960 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 28,018  $ 33,984 
Billings in excess of cost and estimated earnings, non-current (1)
6,795  6,631 
Total contract liabilities $ 34,813  $ 40,615 
September 30, 2020 December 31, 2019
Accounts receivable, net $ 121,672  $ 95,863 
Accounts receivable retainage, net $ 24,359  $ 16,976 
Contract Assets:
Costs and estimated earnings in excess of billings $ 179,909  $ 202,243 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 35,320  $ 26,618 
Billings in excess of cost and estimated earnings, non-current (1)
4,982  5,560 
Total contract liabilities $ 40,302  $ 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 nine months ended September 30, 2021 was primarily due to revenue recognized of $414,049 offset by billings of $422,565. Contract assets also increased due to reclassifications, primarily 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 nine months ended September 30, 2021, we recognized revenue of $161,037 that was previously included in the beginning balance of contract liabilities and billed customers $123,891. 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 nine months ended September 30, 2020 was primarily due to billings of approximately $464,712, partially offset by revenue recognized of $434,709. The increase in contract liabilities was primarily driven by the receipt of advance payment from customers, and related billings, exceeding reductions from the recognition of revenue as performance obligations were satisfied. For the nine months ended September 30, 2020, we recognized revenue of $85,356 that was previously included in the beginning balance of contract liabilities and billed customers $86,203. 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 September 30, 2021, we had backlog of $1,893,740 of which approximately 33% 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 $1,191 and $1,543 were included in other long-term assets in the accompanying condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020, respectively. Project development costs of $2,632 and $3,611 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the three months ended September 30, 2021 and 2020, respectively. Project development costs of $7,725 and $9,546 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the nine months ended September 30, 2021 and 2020, respectively.
No impairment charges in connection with our project development costs were recorded during the nine months ended September 30, 2021 and 2020.