|
| |
7. | Percentage-of-Completion Long-Term Contracts |
See Note 1, "Revenue Recognition" for information regarding engine contracts accounted for under the POC method.
Amounts recognized in the accompanying financial statements are as follows:
|
| | | | | | | |
| As of December 31, |
| 2013 | | 2012 |
| (in millions) |
Cumulative revenues recognized on uncompleted POC contracts | $ | 141.1 |
| | $ | 76.9 |
|
Cumulative billings on uncompleted POC contracts | 146.6 |
| | 71.2 |
|
| $ | (5.5 | ) | | $ | 5.7 |
|
These amounts were included in the accompanying Consolidated Balance Sheets under the following captions:
|
| | | | | | | |
| As of December 31, |
| 2013 | | 2012 |
| (in millions) |
Accounts receivable (POC revenue recognized in excess of billings) | $ | 4.3 |
| | $ | 10.3 |
|
Accrued expenses (POC billings where revenue has not yet been earned) | (9.8 | ) | | (4.6 | ) |
| $ | (5.5 | ) | | $ | 5.7 |
|
At December 31, 2013 and 2012, deposits and progress payments for long lead time components accounted for under the POC method totaled $4.5 million and $5.2 million, respectively, and are reflected in prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets. See Note 6 for a presentation of the incurred costs and progress payments associated with engine contracts accounted for under the completed-contract method.
