JEC » Topics » Receivables and Billings in Excess of Costs

These excerpts taken from the JEC 10-K filed Nov 26, 2008.

Receivables and Billings in Excess of Costs

Included in receivables in the accompanying Consolidated Balance Sheets at September 30, 2008 and 2007 were $964.8 million and $790.5 million, respectively, of unbilled receivables. Unbilled receivables represent costs and amounts earned and reimbursable under contracts in progress as of the balance sheet date. Such amounts become billable according to the contract terms, which usually consider the passage of time, achievement of certain milestones or completion of the project. Included in these unbilled receivables at September 30, 2008 and 2007 were contract retentions totaling $35.0 million and $37.1 million, respectively. We anticipate that substantially all of such unbilled amounts will be billed and collected over the next twelve months. Also included in receivables at September 30, 2008 and 2007 are allowances for doubtful accounts totaling $10.1 million and $6.2 million, respectively.

“Billings in excess of costs” represent cash collected from clients, and billings to clients in advance of work performed. We anticipate that substantially all such amounts will be earned over the next twelve months.

Amounts due from the U.S. federal government, net of advanced billings, included in the accompanying Consolidated Balance Sheets totaled $274.1 million and $153.6 million at September 30, 2008 and 2007, respectively.

As discussed above, we include in receivables claims representing the recovery of costs incurred on contracts to the extent it is probable that such claims will result in additional contract revenue and the amount of such additional revenues can be reliably estimated. Such amounts totaled $56.6 million and $49.6 million at September 30, 2008 and 2007, respectively, of which $38.1 million and $36.6 million, respectively, relate to one claim on a waste incineration project performed in Europe (due to the timing of when the claim may be settled, this claim is included in “Other Noncurrent Assets” in the accompanying Consolidated Balance Sheets). The dispute involves proper waste feed, content of residues, final acceptance of the plant, and costs of operation and

maintenance of the plant. We have initiated litigation against the client and are seeking in excess of €40.0 million (approximately $58.6 million) in damages. The client has filed a counterclaim against us, which we believe is without merit.

Receivables and
Billings in Excess of Costs

Included in receivables in the accompanying Consolidated Balance Sheets at September 30, 2008 and
2007 were $964.8 million and $790.5 million, respectively, of unbilled receivables. Unbilled receivables represent costs and amounts earned and reimbursable under contracts in progress as of the balance sheet date. Such amounts become
billable according to the contract terms, which usually consider the passage of time, achievement of certain milestones or completion of the project. Included in these unbilled receivables at September 30, 2008 and 2007 were contract retentions
totaling $35.0 million and $37.1 million, respectively. We anticipate that substantially all of such unbilled amounts will be billed and collected over the next twelve months. Also included in receivables at September 30, 2008 and
2007 are allowances for doubtful accounts totaling $10.1 million and $6.2 million, respectively.

“Billings in excess of
costs” represent cash collected from clients, and billings to clients in advance of work performed. We anticipate that substantially all such amounts will be earned over the next twelve months.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Amounts due from the U.S. federal government, net of advanced billings, included in the accompanying Consolidated Balance Sheets totaled
$274.1 million and $153.6 million at September 30, 2008 and 2007, respectively.

As discussed above, we include in
receivables claims representing the recovery of costs incurred on contracts to the extent it is probable that such claims will result in additional contract revenue and the amount of such additional revenues can be reliably estimated. Such amounts
totaled $56.6 million and $49.6 million at September 30, 2008 and 2007, respectively, of which $38.1 million and $36.6 million, respectively, relate to one claim on a waste incineration project performed in Europe (due to
the timing of when the claim may be settled, this claim is included in “Other Noncurrent Assets” in the accompanying Consolidated Balance Sheets). The dispute involves proper waste feed, content of residues, final acceptance of the plant,
and costs of operation and

maintenance of the plant. We have initiated litigation against the client and are seeking in excess of €40.0 million
(approximately $58.6 million) in damages. The client has filed a counterclaim against us, which we believe is without merit.

SIZE="2">Property, Equipment and Improvements

Property, equipment and improvements are carried at cost, and are shown net of
accumulated depreciation and amortization in the accompanying Consolidated Balance Sheets. Depreciation and amortization is computed primarily by using the straight-line method over the estimated useful lives of the assets. The cost of leasehold
improvements is amortized using the straight-line method over the lesser of the estimated useful life of the asset or the remaining term of the related lease. Estimated useful lives range from 20 to 40 years for buildings, from 3 to 10 years for
equipment and from 4 to 10 years for leasehold improvements.

This excerpt taken from the JEC 10-K filed Nov 29, 2007.

Receivables and Billings in Excess of Costs

Included in receivables in the accompanying Consolidated Balance Sheets at September 30, 2007 and 2006 were $790.5 million and $623.3 million, respectively, of unbilled receivables. Unbilled receivables represent costs and amounts earned and reimbursable under contracts in progress as of the balance sheet date. Such amounts become billable according to the contract terms, which usually consider the passage of time, achievement of certain milestones or completion of the project. Included in these unbilled receivables at September 30, 2007 and 2006 were contract retentions totaling $37.1 million and $34.0 million, respectively. We anticipate that substantially all of such unbilled amounts will be billed and collected over the next twelve months. Also included in receivables at September 30, 2007 and 2006 are allowances for doubtful accounts totaling $6.2 million and $8.0 million, respectively.

“Billings in excess of costs” represent cash collected from clients and advance billings to clients in advance of work performed. We anticipate that substantially all such amounts will be earned over the next twelve months.

Amounts due from the U.S. federal government included in receivables in the accompanying Consolidated Balance Sheets totaled $153.6 million and $159.0 million at September 30, 2007 and 2006, respectively.

As discussed above, we include in receivables claims representing the recovery of costs incurred on contracts to the extent it is probable that such claims will result in additional contract revenue and the amount of such additional revenues can be reliably estimated. Such amounts totaled $49.6 million and $42.0 million at September 30, 2007 and 2006, respectively, of which $36.6 million and $33.1 million, respectively, relate to one claim on a waste incineration project performed in Europe (due to the timing of when the claim may be settled, this claim is included in “Other Noncurrent Assets” in the accompanying consolidated balance sheets). The dispute involves proper waste feed, content of residues, final acceptance of the plant, and costs of operation and maintenance of the plant. We have initiated litigation against the client and are seeking in excess of €40.0 million (approximately $56.7 million) in damages. The client has filed a counterclaim against us, which we believe is without merit.

This excerpt taken from the JEC 10-K filed Dec 8, 2006.

Receivables and Billings in Excess of Costs

Included in “Receivables” in the accompanying Consolidated Balance Sheets at September 30, 2006 and 2005 were $623.3 million and $518.6 million, respectively, of unbilled receivables. Unbilled receivables represent costs and amounts earned and reimbursable under contracts in progress as of the date of our balance sheet. Such amounts become billable according to the contract terms, which usually consider the passage of time, achievement of certain milestones or completion of the project. Included in these unbilled receivables at September 30, 2006 and 2005 were contract retentions totaling $34.0 million and $36.4 million, respectively. We anticipate that substantially all of such unbilled amounts will be billed and collected over the next twelve months. Also included in receivables at September 30, 2006 and 2005 are allowances for doubtful accounts totaling $8.0 million and $7.4 million, respectively.

 

“Billings in excess of costs” represent cash collected from clients on contracts in advance of revenues earned thereon as well as advanced billings to clients in excess of costs and earnings on uncompleted contracts. We anticipate that substantially all such amounts will be earned over the next twelve months.

 

Amounts due from the U.S. federal government included in “Receivables” in the accompanying Consolidated Balance Sheets totaled $159.0 million and $194.8 million at September 30, 2006 and 2005, respectively.

 

As discussed above, we include in receivables claims representing the recovery of costs incurred on contracts to the extent it is probable that such claims will result in additional contract revenue and the amount of such additional revenues can be reliably estimated. Such amounts totaled $42.0 million and $42.6 million at September 30, 2006 and 2005, respectively, of which $33.1 million and $31.3 million, respectively, relate to one claim on a waste incineration project performed in Europe (due to the timing of when the claim may be settled, this claim is included in “Other Noncurrent Assets” in the accompanying consolidated balance sheets). The dispute involves proper waste feed, content of residues, final acceptance of, and costs of operation and maintenance of the plant. We have initiated litigation against the client and are seeking in excess of 40.0 million (approximately $50.8 million) in damages. The client has filed a counterclaim against us, which we believe is without merit.

 

This excerpt taken from the JEC 10-K filed Dec 13, 2005.

Receivables and Billings in Excess of Costs

Included in “Receivables” in the accompanying Consolidated Balance Sheets at September 30, 2005 and 2004 were $518.6 million and $450.8 million, respectively, of unbilled receivables. Unbilled

 

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Table of Contents

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

receivables represent costs and amounts earned and reimbursable under contracts in progress as of the date our balance sheet. Such amounts become billable according to the contract terms, which usually consider the passage of time, achievement of certain milestones or completion of the project. Included in these unbilled receivables at September 30, 2005 and 2004 were contract retentions totaling $36.4 million and $44.9 million, respectively. We anticipate that substantially all of such unbilled amounts will be billed and collected over the next twelve months.

 

“Billings in excess of costs” represent cash collected from clients on contracts in advance of revenues earned thereon as well as advanced billings to clients in excess of costs and earnings on uncompleted contracts. We anticipate that substantially all such amounts will be earned over the next twelve months.

 

Amounts due from the U.S. federal government included in “Receivables” in the accompanying Consolidated Balance Sheets totaled $194.8 million and $154.5 million at September 30, 2005 and 2004, respectively.

 

In accordance with industry practice, we include in receivables claims representing the recovery of costs incurred on contracts to the extent it is probable that such claims will result in additional contract revenue and the amount of such additional revenues can be reliably estimated. Such amounts totaled $42.6 million and $38.7 million at September 30, 2005 and 2004, respectively, of which $31.3 million and $32.5 million, respectively, relate to one claim on a waste incineration project performed in Europe (due to the timing of when the claim may be settled, this claim is included in “Other Noncurrent Assets” in the accompanying consolidated balance sheets). The dispute involves proper waste feed, content of residues, final acceptance of, and costs of operation and maintenance of the plant. We have initiated litigation against the client and are seeking in excess of 40.0 million (approximately $48.1 million) in damages. The client has filed a counterclaim against us, which we believe is without merit.

 

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