Gulf Island Fabrication, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

CONTRACTS RECEIVABLE AND RETAINAGE

CONTRACTS RECEIVABLE AND RETAINAGE

12 Months Ended

Dec. 31, 2017

Of our contracts receivable balance at December 31, 2017, approximately $15.6 million, or 55.1%, is for two customers. Approximately $8.6 million, or 42.7% of the December 31, 2016 contracts receivable balance relates to three customers. Amounts due on contracts as of December 31, were as follows (in thousands):



	2017		2016
Completed contracts
Current receivables	$	10,246	$	6,812
Contracts in progress:
Current receivables	15,513		14,248
Retainage	4,455		113
Total contracts receivable	30,214		21,173
Less allowance for doubtful accounts	1,748		1,004
Net contracts receivable	$	28,466	$	20,169

Our allowance for doubtful accounts as of December 31, 2017, primarily relates to a customer in our Fabrication Division for the storage of an offshore drilling platform which was fully reserved in 2016. We continue to bill this customer under the terms of the contract; however, no longer recognize revenue for these billings as collection is not reasonably assured. Instead, billings for this customer are offset with an increase in the allowance for doubtful accounts.