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| Contracts with Customers | 4. Contracts with Customers Disaggregation of Revenue The Company’s contracts contain both fixed price and cost reimbursable components. Contract types are based on the component that represents the majority of the contract. The following table presents revenue disaggregated by contract type (in thousands):
Refer to “Note 20—Segments Information” for the Company’s revenues by business lines. Contract Assets and Contract Liabilities Contract assets and contract liabilities balances at December 31, 2024 and December 31, 2023 were as follows (in thousands):
(1) Total contract retentions included in net contract assets (liabilities) were $89.8 million as of December 31, 2024, of which $35.9 million are not expected to be paid in 2025. Total contract retentions included in net contract assets (liabilities) were $73.8 million as of December 31, 2023. Contract assets at December 31, 2024 and December 31, 2023 include approximately $70.7 million and $109.5 million, respectively, related to net claim recovery estimates. For the year ended December 31, 2024 there was a $21.6 million loss recognized related to the collectability of claims. For the year ended December 31, 2023, there were no material losses recognized related to the collectability of claims. During the years ended December 31, 2024 and December 31, 2023, the Company recognized revenue of approximately $190.3 million and $126.0 million, respectively, that was included in the corresponding contract liability balance at December 31, 2023 and December 31, 2022, respectively. Certain changes in contract assets and contract liabilities consisted of the following:
There was no significant impairment of contract assets recognized during the years ended December 31, 2024 and December 31, 2023. Revisions in estimates, such as changes in estimated claims or incentives, related to performance obligations partially satisfied in previous periods that individually had an impact of $5 million or more on revenue resulted in the following changes in revenue.
Certain financial statement impacts from revisions in estimates were as follows (in thousands):
The amounts for 2024, in the table above, include the impact from a contract in the Critical Infrastructure segment related to a change in estimate increasing direct costs of contracts by $6.3 million. The amounts for 2023, in the table above, include the impact from contracts in the Critical Infrastructure segment related to a change in estimate increasing direct costs of contracts by $8.0 million related to net write-downs and a decrease in direct costs of contracts of $37.9 million related to a legal matter. These impacts do not include the operating income impacts disclosed below in "Note 16— Investments in and Advances to Joint Ventures." Accounts Receivable, Net Accounts receivable, net consisted of the following as of December 31, 2024 and December 31, 2023 (in thousands):
Billed accounts receivable represents amounts billed to clients that have not been collected. Unbilled accounts receivable represents amounts where the Company has a present contractual right to bill but an invoice has not been issued to the customer at the period-end date. Receivables from contracts with the U.S. federal government and its agencies were 23% and 18% as of December 31, 2024 and December 31, 2023, respectively. The allowance for doubtful accounts was determined based on consideration of trends in actual and forecasted credit quality of clients, including delinquency and payment history, type of client, such as a government agency or commercial sector client, and general economic conditions and particular industry conditions that may affect a client’s ability to pay. Transaction Price Allocated to the Remaining Unsatisfied Performance Obligations The Company’s remaining unsatisfied performance obligations (“RUPO”) as of December 31, 2024 represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. The Company had $6.7 billion in RUPO as of December 31, 2024. RUPO will increase with awards of new contracts and decrease as the Company performs work and recognizes revenue on existing contracts. Projects are included within RUPO at such time the project is awarded and agreement on contract terms has been reached. The difference between RUPO and backlog relates to unexercised option years that are included within backlog and the value of Indefinite Delivery/Indefinite Quantity (“IDIQ”) contracts included in backlog for which task orders have not been issued. RUPO is comprised of: (a) original transaction price, (b) change orders for which written confirmations from our customers have been received, (c) pending change orders for which the Company expects to receive confirmatrions in the ordinary course of business, and (d) claim amounts that the Company has made against customers for which it has determined that it has a legal basis under existing contractual arrangements and a significant reversal of revenue is not probable, less revenue recognized to-date. The Company expects to satisfy its RUPO as of December 31, 2024 over the following periods (in thousands):
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