Quarterly report pursuant to Section 13 or 15(d)

Revenue from Contracts with Customers

v3.23.3
Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 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 September 30, 2023:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 120,297  $ 71,779  $ 12,872  $ —  $ 37,736  $ 242,684 
O&M revenue 6,353  13,838  17  2,073  492  22,773 
Energy assets 15,911  1,495  1,274  25,227  352  44,259 
Integrated-PV 4  —  —  —  11,611  11,615 
Other 674  229  3,371  19  9,525  13,818 
Total revenues $ 143,239  $ 87,341  $ 17,534  $ 27,319  $ 59,716  $ 335,149 
The following table presents our revenue disaggregated by line of business and reportable segment for the three months ended September 30, 2022:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 251,338  $ 83,878  $ 8,788  $ —  $ 7,527  $ 351,531 
O&M revenue 5,936  13,524  10  2,251  133  21,854 
Energy assets 11,892  1,570  1,264  26,956  —  41,682 
Integrated-PV —  —  —  —  13,616  13,616 
Other 2,040  152  2,304  214  7,903  12,613 
Total revenues $ 271,206  $ 99,124  $ 12,366  $ 29,421  $ 29,179  $ 441,296 

The following table presents our revenue disaggregated by line of business and reportable segment for the nine months ended September 30, 2023:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 338,119  $ 181,232  $ 38,865  $ —  $ 96,585  $ 654,801 
O&M revenue 18,191  40,439  80  8,054  1,285  68,049 
Energy assets 47,619  4,735  3,370  77,901  1,412  135,037 
Integrated-PV 4  —  —  —  35,041  35,045 
Other 2,660  510  8,825  19  28,319  40,333 
Total revenues $ 406,593  $ 226,916  $ 51,140  $ 85,974  $ 162,642  $ 933,265 
The following table presents our revenue disaggregated by line of business and reportable segment for the nine months ended September 30, 2022:
U.S. Regions U.S. Federal Canada Alternative Fuels All Other Total
Project revenue $ 928,616  $ 231,945  $ 32,899  $ —  $ 40,595  $ 1,234,055 
O&M revenue 16,473  39,186  32  7,361  319  63,371 
Energy assets 34,163  4,734  3,512  80,513  111  123,033 
Integrated-PV —  —  —  —  37,239  37,239 
Other 3,859  333  7,556  —  23,249  34,997 
Total revenues $ 983,111  $ 276,198  $ 43,999  $ 87,874  $ 101,513  $ 1,492,695 
The following table presents information related to our revenue recognized over time:
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Percentage of revenue recognized over time 95% 96% 94% 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 September 30, Nine Months Ended September 30,
2023 2022 2023 2022
United States $ 279,651  $ 421,939  $ 783,692  $ 1,409,210 
Canada 15,535  11,416  46,335  40,429 
Other 39,963  7,941  103,238  43,056 
Total revenues $ 335,149  $ 441,296  $ 933,265  $ 1,492,695 
Contract Balances
The following tables provide information about receivables, contract assets and contract liabilities from contracts with customers:
  September 30, 2023 December 31, 2022
Accounts receivable, net $ 133,070  $ 174,009 
Accounts receivable retainage, net $ 33,459  $ 38,057 
Contract Assets:
Costs and estimated earnings in excess of billings $ 591,378  $ 576,363 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 36,880  $ 34,796 
Billings in excess of cost and estimated earnings, non-current (1)
15,622  7,617 
Total contract liabilities $ 52,502  $ 42,413 
September 30, 2022 December 31, 2021
Accounts receivable, net $ 219,817  $ 161,970 
Accounts receivable retainage, net $ 42,456  $ 43,067 
Contract Assets:
Costs and estimated earnings in excess of billings $ 628,529  $ 306,172 
Contract Liabilities:
Billings in excess of cost and estimated earnings $ 43,173  $ 35,918 
Billings in excess of cost and estimated earnings, non-current (1)
$ 6,310  $ 6,481 
Total contract liabilities $ 49,483  $ 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 increase in contract assets for the nine months ended September 30, 2023 was primarily due to billings of $634,340 offset by revenue recognized of $631,136. Contract assets are also affected by 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 nine months ended September 30, 2023, we recognized revenue of $130,262 and billed $135,158 to customers that had balances which were included in contract liabilities at December 31, 2022.
The increase in contract assets for the nine months ended September 30, 2022 was primarily due to revenue recognized of $1,168,996 offset by billings of $850,243. 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 nine months ended September 30, 2022, we billed customers $99,121 and recognized revenue of $99,424 that was previously included in the beginning balance of contract liabilities.
Performance Obligations
Our remaining performance obligations (“backlog”) represent the unrecognized revenue value of our contract commitments. At September 30, 2023, we had contracted backlog of $2,426,445 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 $3,059 and $5,614 were recognized in our condensed consolidated statements of income on projects that converted to customer contracts during the three months ended September 30, 2023 and 2022, respectively. Project development costs of $9,276 and $11,594 were recognized in the condensed consolidated statements of income on projects that converted to customer contracts during the nine months ended September 30, 2023 and 2022, respectively.
No impairment charges in connection with our project development costs were recorded during the three or nine months ended September 30, 2023 and 2022.