Annual report pursuant to Section 13 and 15(d)

Revenues

v3.23.1
Revenues
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenues
Note Q – Revenues
The table below presents revenues by customer grouping for the following periods:
Year Ended
  December 31, 2022 December 31, 2021
Civil space
 $ 63,003  $ 60,052 
National security
 43,906  29,833 
Commercial and other
 53,640  47,716 
Total revenues
 $ 160,549  $ 137,601 

Contract Balances
The table below presents the contract assets and contract liabilities included on the consolidated balance sheets for the following periods:
December 31,
2022		 December 31,
2021
Contract assets
 $ 31,041  $ 11,748 
 
Contract liabilities $ 29,817  $ 15,734 

The increase in contract assets was primarily driven by the acquisition of Space NV as well as revenue growth and the timing of billable milestones occurring during the year ended December 31, 2022.

The change in contract liabilities was primarily driven by the acquisition of Space NV and the timing of billable milestones occurring during the year ended December 31, 2022. Revenue recognized in the year ended December 31, 2022 that was included in the contract liability balance as of December 31, 2021 was $15.2 million. Revenue recognized in the year ended December 31, 2021 that was included in the contract liability balance as of December 31, 2020 was $15.3 million.
The Company evaluates the contract value and cost estimates at completion (“EAC”) for performance obligations at least quarterly and more frequently when circumstances significantly change. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimate of total revenue and cost at completion is complex, subject to many variables and requires significant judgment by management on a contract by contract basis. As part of this process, management reviews information including, but not limited to, labor productivity, the nature and technical complexity of the work to be performed, availability and cost volatility of materials, subcontractor and vendor performance, volume assumptions, inflationary trends, and schedule and performance delays. Management’s judgment related to these considerations has become increasingly more significant given the current economic environment and COVID-19 pandemic.

When the Company’s estimate of total costs to be incurred to satisfy a performance obligation exceeds the expected revenue, the Company recognizes the loss immediately. When the Company determines that a change in estimate has an impact on the associated profit of a performance obligation, the Company records the cumulative positive or negative adjustment to the statement of operations and comprehensive income (loss). Changes in estimates and assumptions related to the status of certain long-term contracts may have a material effect on the Company’s operating results.

The following table summarizes the favorable (unfavorable) impact of the net EAC adjustments for the periods presented:
Year Ended
  December 31, 2022 December 31, 2021
Net EAC adjustments, before income taxes $ (9,953) $ (1,835)
Net EAC adjustments, net of income taxes (9,376) (1,551)
Net EAC adjustments, net of income taxes, per diluted share (0.15) (0.03)

The change in net EAC adjustments in both 2022 and 2021 were primarily due to unfavorable changes within the Mission Solutions reporting unit driven by increased production cost contributed by continued supply chain and labor market constraints.

Remaining Performance Obligations
As of December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $275.7 million. The Company expects to recognize approximately 62% of its remaining performance obligations as revenue within the next 12 months and the balance thereafter.

Geographic Information and Significant Customers
The table below presents revenues based on the geographic location of the Company’s customers for the following periods:
Year Ended
  December 31, 2022 December 31, 2021
U.S.
 $ 142,867  $ 133,309 
Netherlands 5,166  — 
Luxembourg
 3,211  3,724 
United Kingdom 3,237  — 
Italy 2,570  — 
Germany
 2,069  140 
Spain 706  — 
South Korea
 269  272 
Poland
 —  138 
Other 454  18 
Total revenues
 $ 160,549  $ 137,601 
The majority of the Company’s revenues are derived from government contracts. Customers comprising 10% or more of revenues were as follows for the periods presented:
Year Ended
  December 31, 2022 December 31, 2021
Customer A $ 21,705  $ 17,753 
Customer B 20,048  48,476 
Customer C 17,131  — 
Total $ 58,884  $ 66,229 
(1) While revenue was generated in each of the periods presented, amounts are only disclosed for the periods in which revenue represented 10% or more of total revenue.