Note 4 - Contract Receivables

9 Months Ended

Sep. 30, 2015

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 4. Contract Receivables

Contract receivables consisted of the following:

	September 30, 2015			December 31, 2014
Billed	$	154,251		$	165,934
Unbilled		119,770			96,207
Allowance for doubtful accounts		(2,350	)		(1,887	)
Contract receivables, net	$	271,671		$	260,254

Contract receivables, net of the established allowance for doubtful accounts, are stated at amounts expected to be realized in future periods. Unbilled receivables result from revenue that has been earned in advance of billing. Unbilled receivables can be invoiced at contractually defined intervals or milestones, as well as upon completion of the contract or government audits. The Company anticipates that the majority of unbilled receivables will be substantially billed and collected within one year, and therefore, classifies them as current assets in accordance with industry practice.

The Company considers a number of factors in its estimate of allowance for doubtful accounts, including the customer’s financial condition, historical collection experience, and other factors that may bear on collectability of the receivables. The Company writes off contract receivables when such amounts are determined to be uncollectible. Losses have historically been within management’s expectations.