Company: DXPE
Filing Date: 2025-04-30
Form Type: ARS
Source: 0001020710-25-000081
Chunk: 81

Company: DXP ENTERPRISES INC
Filing Date: 2025-04-30
Form: ARS
Chunk 81
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60

See Note 9 - Long-term Debt for fair value disclosures on our asset-backed line of credit and term loan debt under our syndicated credit agreement facilities. NOTE 6 – CONTRACT ASSETS AND LIABILITIES Under our customized pump production contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of a contract. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets presented as “Cost and estimated profits in excess of billings” on our Consolidated Balance Sheets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities that are presented as “Billings in excess of costs and estimated profits” on our Consolidated Balance Sheets. Costs and estimated profits on uncompleted contracts and related amounts billed were as follows (in thousands): December 31, 2024 2023 2022 Costs incurred on uncompleted contracts $ 122,951 $ 92,363 $ 70,329 Estimated profits, thereon 58,373 37,379 23,274 Total costs and estimated profits on uncompleted contracts 181,324 129,742 93,603 Less: billings to date 143,251 96,925 80,426 Total $ 38,073 $ 32,817 $ 13,177 Such amounts were included in the accompanying Consolidated Balance Sheets for 2024 and 2023 under the following captions (in thousands): December 31, 2024 2023 2022 Costs and estimated profits in excess of billings $ 50,735 $ 42,323 $ 23,588 Billings in excess of costs and estimated profits (12,662) (9,506) (10,411) Net contract assets $ 38,073 $ 32,817 $ 13,177 During the twelve months ended December 31, 2024, 2023, and 2022, $7.4 million, $10.4 million, and $3.6 million of the balances that were previously classified as contract liabilities at the beginning of the period were recognized into revenues, respectively. NOTE 7 - PROPERTY AND EQUIPMENT, NET The carrying values of property and equipment, net are as follows (in thousands): December 31, 2024 2023 Land $ 1,704 $ 2,023 Buildings and leasehold improvements 32