Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

v3.22.2
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2022 were U.S. Regions, U.S. Federal, Canada, Alternative Fuels (formerly 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 former 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 June 30, 2022:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 378,646  $ 85,850  $ 10,160  $ —  $ 14,464  $ 489,120 
O&M revenue 5,457  13,365  11  2,122  95  21,050 
Energy assets 12,253  2,074  1,487  27,070  39  42,923 
Integrated-PV —  —  —  —  12,267  12,267 
Other 1,029  139  2,803  —  8,066  12,037 
Total revenues $ 397,385  $ 101,428  $ 14,461  $ 29,192  $ 34,931  $ 577,397 
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 Alternative Fuels All Other Total
Project revenue $ 101,843  $ 77,074  $ 7,307  $ —  $ 10,031  $ 196,255 
O&M revenue $ 5,403  $ 11,742  $ —  $ 2,362  $ 89  19,596 
Energy assets $ 10,058  $ 1,371  $ 1,571  $ 23,852  $ 91  36,943 
Integrated-PV $ —  $ —  $ —  $ —  $ 10,720  10,720 
Other $ 719  $ 11  $ 1,997  $ (1) $ 7,680  10,406 
Total revenues $ 118,023  $ 90,198  $ 10,875  $ 26,213  $ 28,611  $ 273,920 

The following table presents our revenue disaggregated by line of business and reportable segment for the six months ended June 30, 2022:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 677,278  $ 148,067  $ 24,111  $ —  $ 33,068  $ 882,524 
O&M revenue 10,537  25,662  22  4,896  186  41,303 
Energy assets 22,271  3,164  2,248  53,557  111  81,351 
Integrated-PV —  —  —  —  23,623  23,623 
Other 1,819  181  5,252  —  15,346  22,598 
Total revenues $ 711,905  $ 177,074  $ 31,633  $ 58,453  $ 72,334  $ 1,051,399 
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 Alternative Fuels All Other Total
Project revenue $ 177,655  $ 167,163  $ 16,308  $ —  $ 15,822  $ 376,948 
O&M revenue 9,818  23,182  26  4,894  160  38,080 
Energy assets 18,860  2,035  2,318  46,791  226  70,230 
Integrated-PV —  —  —  —  19,874  19,874 
Other 934  32  3,866  108  16,050  20,990 
Total revenues $ 207,267  $ 192,412  $ 22,518  $ 51,793  $ 52,132  $ 526,122 

The following table presents information related to our revenue recognized over time:
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Percentage of revenue recognized over time 97% 94% 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 June 30, Six Months Ended June 30,
2022 2021 2022 2021
United States $ 548,880  $ 252,536  $ 987,271  $ 486,545 
Canada 13,025  9,973  29,013  20,826 
Other 15,492  11,411  35,115  18,751 
Total revenues $ 577,397  $ 273,920  $ 1,051,399  $ 526,122 

Contract Balances
The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers:
  June 30, 2022 December 31, 2021
Accounts receivable, net $ 207,990  $ 161,970 
Accounts receivable retainage, net $ 43,444  $ 43,067 
Contract Assets:
Costs and estimated earnings in excess of billings $ 663,798  $ 306,172 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 39,787  $ 35,918 
Billings in excess of cost and estimated earnings, non-current (1)
6,175  6,481 
Total contract liabilities $ 45,962  $ 42,399 
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 
(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, 2022 was primarily due to revenue recognized of $845,211 offset by billings of $492,820. 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. In addition, the advance payments and reclassifications, exceeded the recognition of revenue as performance obligations were satisfied. For the six months ended June 30, 2022, we billed customers $59,453 and recognized revenue of $64,145 that was previously included in the beginning balance of contract liabilities.
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.
Performance Obligations
Our remaining performance obligations (“backlog”) represent the unrecognized revenue value of our contract commitments. At June 30, 2022, we had contracted backlog of $2,199,560 of which approximately 38% 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 $1,771 and $3,109 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the three months ended June 30, 2022 and 2021, respectively. Project development costs of $5,980 and $5,094 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the six months ended June 30, 2022 and 2021, respectively.
No impairment charges in connection with our project development costs were recorded during the three or six months ended June 30, 2022 and 2021.