COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

3 Months Ended

Mar. 31, 2013

COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS [Abstract]

COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

4. COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

Costs and estimated earnings in excess of billings on uncompleted contracts consist of:

	March 31, 2013
	U.S
	Government	Commercial	Total
Costs incurred on uncompleted
contracts	$246,341,518	$46,580,985	$292,922,503
Estimated earnings	65,879,081	25,421,477	91,300,558
Subtotal	312,220,599	72,002,462	384,223,061
Less billings to date	227,019,725	47,501,933	274,521,658
Costs and estimated earnings
in excess of billings on
uncompleted contracts	$85,200,874	$24,500,529	$109,701,403

	December 31, 2012
	U.S.
	Government	Commercial	Total
Costs incurred on uncompleted
contracts	$214,888,101	$42,636,753	$257,524,854
Estimated earnings	85,320,636	23,782,285	109,102,921
Subtotal	300,208,737	66,419,038	366,627,775
Less billings to date	215,743,090	42,631,694	258,374,784
Costs and estimated earnings in excess of billings on uncompleted contracts	$84,465,647	$23,787,344	$108,252,991

 

The above amounts are included in the accompanying balance sheets under the following captions at March 31, 2013 and December 31, 2012:

	March 31, 2013	December 31, 2012
Costs and estimated earnings in excess of billings on
uncompleted contracts	$ 110,011,430	$ 108,909,844
Billings in excess of costs and estimated earnings on
uncompleted contracts	(310,027)	(656,853)
Totals	$ 109,701,403	$ 108,252,991

U.S. Government Contracts includes contracts directly with the U.S. Government and Government subcontracts.

Revisions in the estimated gross profits on contracts and contract amounts are made in the period in which the circumstances requiring the revisions occur. During the three months ended March 31, 2013 and 2012, the effect of such revisions in total estimated contract profits resulted in a decrease to the total gross profit to be earned on the contracts of approximately $1,377,000 and $600,000, respectively, from that which would have been reported had the revised estimates been used as the basis of recognition of contract profits in prior years.

Although management believes it has established adequate procedures for estimating costs to complete on uncompleted open contracts, it is possible that additional significant costs could occur on contracts prior to completion.