Company: EME
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000105634-25-000015
Chunk: 109

Company: EMCOR Group, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 109
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 causes of unanticipated additional contract costs (claims and unapproved change orders). Our contract assets do not include capitalized costs to obtain and fulfill a contract. Contract assets are generally classified as current within the Consolidated Balance Sheets.As of December 31, 2024 and 2023, contract assets included unbilled revenues for unapproved change orders of approximately $25.1 million and $29.8 million, respectively. There were no claim amounts included in contract assets as of December 31, 2024; however, contract assets as of December 31, 2023 included $6.7 million associated with claims. There were $6.9 million and $15.4 million of claims included within accounts receivable as of December 31, 2024 and 2023, respectively. There were contractually billed amounts and retention related to contracts with unapproved change orders and claims of approximately $172.4 million and $157.7 million as of December 31, 2024 and 2023, respectively. For contracts in claim status, contractually billed amounts will generally not be paid by the customer to us until final resolution of the related claims.Contract liabilities from our construction contracts arise when amounts invoiced to our customers exceed revenues recognized under the cost-to-cost measure of progress. Contract liabilities additionally include advanced payments from our customers on certain contracts. Contract liabilities decrease as we recognize revenue from the satisfaction of the related performance obligation and are recorded as either current or long-term, depending upon when we expect to recognize such revenue. The long-term portion of contract liabilities is included in “Other long-term obligations” in the Consolidated Balance Sheets. Net contract liabilities in the accompanying Consolidated Balance Sheets consisted of the following amounts as of December 31, 2024 and 2023 (in thousands):December 31, 2024December 31, 2023Contract assets, current$284,791 $269,885 Contract assets, non-current— — Contract liabilities, current(2,047,540)(1,595,109)Contract liabilities, non-current(1,526)(1,812)Net contract liabilities$(1,764,275)$(1,327,036)Included within net contract liabilities were $1,691.0 million and $1,261.1 million of net contract liabilities on uncompleted construction projects as of December 31, 2024 and 2023, respectively, as follows (in thousands): December 31, 2024December