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Note 4: Contract Backlog
(Remaining Performance Obligations)
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The following schedule is a reconciliation of contract backlog (remaining performance
obligations) representing approved contracts as of December 31, 2018:
Balance, January 1, 2018 $ 37,843,000
Contract adjustments and new contracts awarded
90,073,000
Subtotal 127,916,000
Less contract revenue earned
85,264,000
Balance, December 31, 2018
$ 42,652,000
The entity will recognize this revenue as the contracts are completed, which is expected to
occur over the next 12 - 18 months.
Contract backlog does not include amounts considered variable consideration that are
constrained based on the Company's assessment of probability of signifi cant reversal.
Practical Application Note: Note that there is no requirement to quantify the amount of
constrained transaction price. Also, this comment assumes that the footnote 1 has been
expanded to describe the treatment of variable consideration and the nature of such items.
The following table includes estimated revenue expected to be recognized in the future
related to performance obligations that are unsatisfi ed at the end of the reporting period.
(Note that the disclosure of remaining performance obligations is not required for non-public
companies.)
Remaining Performance Obligations:
Tenant Improvement $ 3,500,000
Government 1,500,000
General Building 32,152,000
Mechanical 2,000,000
Concrete 500,000
Solar
3,000,000
$ 42,652,000
