Contract Receivables

6 Months Ended

Jun. 30, 2011

Contract Receivables

Contract Receivables

Note 3. Contract Receivables

Contract receivables consisted of the following:

	June 30, 2011			December 31, 2010
Billed	$	123,048		$	127,452
Unbilled		63,067			51,433
Allowance for doubtful accounts		(1,706	)		(1,922	)
Contract receivables, net	$	184,409		$	176,963

Contract receivables, net of the established allowance, are amounts expected to be received in future periods. Unbilled receivables result from revenue that has been earned in advance of billing. The unbilled receivables can be invoiced at contractually defined intervals or milestones, or upon completion of the contract or U.S. federal government incurred cost audits. The Company anticipates that the majority of unbilled receivables will be substantially billed and collected within one year. Contract receivables are classified as current assets in accordance with industry practice.

The allowance for doubtful accounts is determined based upon management's best estimate of potentially uncollectible contract receivables. The factors that influence management's estimate include historical experience and management's expectations of future losses on a contract-by-contract basis. The Company writes off contract receivables when such amounts are determined to be uncollectible. Losses have historically been within management's expectations.