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Change in Estimate
12 Months Ended
Jun. 30, 2016
Accounting Changes and Error Corrections [Abstract]  
Change in Estimate
Change in Estimate
In October 2013, the regulatory agency charged with oversight of one of the Company’s Exit Strategy projects issued a letter requiring the Company to evaluate modifications to its current site remedy. While it was premature to predict the outcome of this evaluation, the Company’s best estimate of such modifications was $12,439. As a result, the Company updated its estimate to complete for this project during the three months ended September 27, 2013. This adjustment resulted in a reduction of gross revenue and NSR of $5,093 and a $7,346 charge to cost of services as a provision for future losses during the fiscal year ended June 30, 2014. Because these additional costs are covered by insurance, the Company also recorded an insurance recoverable of $12,439 during the fiscal year ended June 30, 2014. Therefore, this change in estimate had no impact on operating income or EPS.
In February 2014, the regulatory agency charged with oversight of another one of the Company’s Exit Strategy projects requested the addition of a significant alternative remedy with respect to a supplemental feasibility study. While the Company cannot predict which alternative will ultimately be chosen by the regulatory agency, the Company’s best estimate of potential modifications was $4,877. As a result, the Company updated its estimate to complete for this project during the three months ended March 28, 2014. There were no other significant changes to the estimate to complete for this project since that time. This adjustment resulted in a reduction of gross revenue and NSR of $1,855 and a $3,022 charge to cost of services as a provision for future losses during the fiscal year ended June 30, 2014. Because these additional costs were expected to be covered by insurance, the Company also recorded an insurance recoverable of $4,877 during the fiscal year ended June 30, 2014. Therefore, this change in estimate had no impact on operating income or EPS.
In June 2016, the Company submitted a feasibility study report to the regulatory agency with oversight of one of the Company’s Exit Strategy projects which evaluated various modifications including the installation of an extensive barrier wall system.  While the Company is still awaiting final approval from the regulatory agency as to the selected remedy, the Company’s best estimate of the cost of installing and implementing this modified remedy, if selected, is an additional $12,927.    As a result, the Company updated its estimate to complete for this project during the three months that ended June 30, 2016.   This adjustment resulted in a reduction of gross revenue and NSR of $3,330 and a $9,597 charge to cost of services as a provision for future losses during the fiscal year ended June 30, 2016. Because these additional costs are all covered by insurance, the Company also recorded a corresponding insurance recoverable of $12,927 during the fiscal year ended June 30, 2016. Therefore, this change in estimate had no impact on operating income or EPS.

During the course of fiscal 2016, the Company realized unexpected cost increases on another of its Exit Strategy projects related to inclement weather, significant rainfall and localized flooding that resulted in significant remedial construction delays and productivity losses.  The cumulative effect of these delays was a $3,983 increase to the estimate at completion for the project. Because a portion of the additional costs are covered by insurance, the Company also recorded an insurance recoverable of $957 during the fiscal year ended June 30, 2016. Therefore, this change in estimate decreased 2016 operating income and EPS by $3,026 and $0.06, respectively.