INNOVATE Corp

3. Revenue and Contracts in Process

Revenue from contracts with customers consisted of the following (in millions):

Accounts receivables, net, from contracts with customers consisted of the following (in millions):

As of January 1, 2023, accounts receivable, net, from contracts with customers totaled $250.4 million.

The following table disaggregates DBMG's revenue by market (in millions):

Contract assets and contract liabilities consisted of the following (in millions):

As of January 1, 2023, contract assets were $165.1 million and contract liabilities were $98.6 million.

Contract assets and liabilities fluctuate period to period based on various factors, including, among others, changes in the number and size of projects in progress at period end; variability in billing and payment terms, such as up-front or advance billings, interim or milestone billings, or deferred billings; and recognized unapproved change orders, contract claims and changes in estimated costs to complete in the normal course of business.

The change in contract assets during the nine months ended September 30, 2024, is a result of the recording of $63.6 million of contract assets driven by new commercial projects, offset by $68.4 million of contract assets transferred to receivables from contract assets recognized at the beginning of the period, including from certain large projects at or nearing completion and the corresponding billing of amounts previously recorded as contract assets.

The change in contract liabilities during the nine months ended September 30, 2024, is a result of the recording of periodic contract liabilities of $78.3 million driven largely by new commercial projects, offset by revenue recognized that was included in the contract liability balance at the beginning of the period in the amount of $146.3 million, including from certain large projects at or nearing completion.

Transaction Price Allocated to Remaining Unsatisfied Performance Obligations

As of September 30, 2024, the transaction price allocated to remaining unsatisfied performance obligations consisted of the following (in millions):

DBMG's remaining unsatisfied performance obligations increase with awards of new contracts and decrease as it performs work and recognizes revenue on existing contracts. DBMG includes a project within its remaining unsatisfied performance obligations at such time the project is awarded and agreement on contract terms has been reached. DBMG's remaining unsatisfied performance obligations include amounts related to contracts for which a fixed price contract value is not assigned when a reasonable estimate of total transaction price can be made. DBMG expects to recognize this revenue approximately within the next 2.5 years.

Remaining unsatisfied performance obligations include unrecognized revenues to be realized from uncompleted construction contracts. Although many of DBMG's contracts are subject to cancellation at the election of its customers, in accordance with industry practice, DBMG does not limit the amount of unrecognized revenue included within its remaining unsatisfied performance obligations due to the inherent substantial economic penalty that would be incurred by its customers upon cancellation.

Life Sciences Segment

The following table disaggregates the Life Sciences segment's revenue by type (in millions):

Spectrum Segment

The following table disaggregates the Spectrum segment's revenue by type (in millions):

Transaction Price Allocated to Remaining Unsatisfied Performance Obligations

As of September 30, 2024, the transaction price allocated to remaining unsatisfied performance obligations consisted of $18.0 million of broadcast station revenues of which $9.6 million is expected to be recognized withinone year and $8.4 million is expected to be recognized within the next 3 years.