Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

v3.23.1
Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2023
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, 2023 and 2022 were U.S. Regions, U.S. Federal, Canada, Alternative Fuels and All Other.
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended March 31, 2023:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 104,320  $ 45,549  $ 14,911  $ —  $ 18,450  $ 183,230 
O&M revenue 5,529  12,700  10  3,686  333  22,258 
Energy assets 13,651  1,076  762  24,653  630  40,772 
Integrated-PV —  —  —  —  11,944  11,944 
Other 869  231  2,728  —  9,010  12,838 
Total revenues $ 124,369  $ 59,556  $ 18,411  $ 28,339  $ 40,367  $ 271,042 
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 Alternative Fuels 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 information related to our revenue recognized over time:
Three Months Ended March 31,
2023 2022
Percentage of revenue recognized over time 93% 96%
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,
2023 2022
United States $ 233,084  $ 438,391 
Canada 17,234  15,988 
Other 20,724  19,623 
Total revenues $ 271,042  $ 474,002 

Contract Balances
The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers:
  March 31, 2023 December 31, 2022
Accounts receivable, net $ 130,940  $ 174,009 
Accounts receivable retainage, net $ 35,625  $ 38,057 
Contract Assets:
Costs and estimated earnings in excess of billings $ 497,762  $ 576,363 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 39,326  $ 34,796 
Billings in excess of cost and estimated earnings, non-current (1)
12,510  7,617 
Total contract liabilities $ 51,836  $ 42,413 
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 
(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 decrease in contract assets for the three months ended March 31, 2023 was primarily due to billings of $286,203 offset by revenue recognized of $190,415. Contract assets also decreased 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. The advance payments and reclassifications exceeded the recognition of revenue as performance obligations were satisfied. For the three months ended March 31, 2023, we recognized revenue of $34,715 and billed $39,082 to customers that had balances which were included in contract liabilities at December 31, 2022.
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.
Performance Obligations
Our remaining performance obligations (“backlog”) represent the unrecognized revenue value of our contract commitments. At March 31, 2023, we had contracted backlog of $2,222,460 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 $2,612 and $4,209 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the three months ended March 31, 2023 and 2022, respectively.
No impairment charges in connection with our project development costs were recorded during the three months ended March 31, 2023 and 2022.