Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

v3.22.1
Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2022
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 months ended March 31, 2022 were U.S. Regions, U.S. Federal, Canada, Non-Solar Distributed Generation (“Non-Solar DG”) and All Other. On January 1, 2022, we changed the structure of our internal organization and our “All Other” segment now includes our U.S.-based enterprise energy management services previously included in our U.S Regions segment and our U.S. Regions segment now includes U.S. project revenue and associated costs previously included in our Non-Solar DG 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 March 31, 2022:
U.S. Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 298,632  $ 62,217  $ 13,951  $ —  $ 18,604  $ 393,404 
O&M revenue 5,080  12,297  11  2,774  91  20,253 
Energy assets 10,018  1,090  761  26,487  72  38,428 
Integrated-PV —  —  —  —  11,356  11,356 
Other 790  42  2,449  —  7,280  10,561 
Total revenues $ 314,520  $ 75,646  $ 17,172  $ 29,261  $ 37,403  $ 474,002 
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended March 31, 2021:
U.S. Regions U.S. Federal Canada Non-Solar DG All Other Total
Project revenue $ 75,812  $ 90,089  $ 9,001  $ —  $ 5,791  $ 180,693 
O&M revenue 4,415  11,440  26  2,532  71  18,484 
Energy assets 8,802  664  747  22,939  135  33,287 
Integrated-PV —  —  —  —  9,154  9,154 
Other 215  21  1,869  109  8,370  10,584 
Total revenues $ 89,244  $ 102,214  $ 11,643  $ 25,580  $ 23,521  $ 252,202 

The following table presents information related to our revenue recognized over time:
Three Months Ended March 31,
2022 2021
Percentage of revenue recognized over time 96% 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 March 31,
2022 2021
United States $ 438,391  $ 234,009 
Canada 15,988  10,853 
Other 19,623  7,340 
Total revenues $ 474,002  $ 252,202 

Contract Balances
The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers:
  March 31, 2022 December 31, 2021
Accounts receivable, net $ 204,082  $ 161,970 
Accounts receivable retainage, net $ 40,555  $ 43,067 
Contract Assets:
Costs and estimated earnings in excess of billings $ 460,240  $ 306,172 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 31,729  $ 35,918 
Billings in excess of cost and estimated earnings, non-current (1)
6,322  6,481 
Total contract liabilities $ 38,051  $ 42,399 
March 31, 2021 December 31, 2020
Accounts receivable, net $ 113,095  $ 125,010 
Accounts receivable retainage, net $ 32,071  $ 30,189 
Contract Assets:
Costs and estimated earnings in excess of billings $ 179,474  $ 185,960 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 30,211  $ 33,984 
Billings in excess of cost and estimated earnings, non-current (1)
6,590  6,631 
Total contract liabilities $ 36,801  $ 40,615 
(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, 2022 was primarily due to revenue recognized of $381,949 offset by billings of $229,540. 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 three months ended March 31, 2022, we recognized revenue of $33,077 that was previously included in the beginning balance of contract liabilities and billed customers $23,723. 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 three months ended March 31, 2021 was primarily due to billings of approximately $144,539, partially offset by revenue recognized of $130,297. The decrease 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 three months ended March 31, 2021, we recognized revenue of $45,483 that was previously included in the beginning balance of contract liabilities and billed customers $33,081. 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 March 31, 2022, we had contracted backlog of $2,553,770 of which approximately 48% 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 $4,209 and $1,985 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the three months ended March 31, 2022 and 2021, respectively.
No impairment charges in connection with our project development costs were recorded during the three months ended March 31, 2022 and 2021.