COPT Defense Properties Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition on Construction Contract and Other Service Revenues (Tables)

9 Months Ended

Sep. 30, 2018

The table below reports construction contract and other service revenues by compensation arrangement (in thousands):



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2018		2017		2018		2017
Construction contract revenues:
GMP	$	1,840	$	25,235	$	31,865	$	50,141
FFP	3,653		3,759		16,376		14,544
Cost-plus fee	2,719		560		4,273		577
Other	211		232		688		696
	$	8,423	$	29,786	$	53,202	$	65,958

The table below reports construction contract and other service revenues by service type (in thousands):



	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2018		2017			2018		2017
Construction contract revenues:
Construction	$	8,160	$	30,004		$	50,743	$	61,173
Design	52		(450		)	1,771		4,089
Other	211		232			688		696
	$	8,423	$	29,786		$	53,202	$	65,958

The beginning and ending balances of accounts receivable related to our construction contracts were as follows (in thousands):



	For the Nine Months Ended September 30,
	2018		2017
Beginning balance	$	4,577	$	4,131
Ending balance	$	5,571	$	5,414

The beginning and ending balances of our contract assets were as follows (in thousands):



	For the Nine Months Ended September 30,
	2018		2017
Beginning balance	$	4,884	$	10,350
Ending balance	$	2,821	$	2,005

Changes in contract liabilities were as follows (in thousands):



	For the Nine Months Ended September 30,
	2018		2017
Beginning balance	$	27,402	$	32,650
Ending balance	$	560	$	32,762
Portion of beginning balance recognized in revenue during:
Three months ended September 30	$	—	$	11,689
Nine months ended September 30	$	27,296	$	32,650