Note 4 - Costs and Estimated Earnings on Uncompleted Contracts

9 Months Ended

Sep. 30, 2015

Long-term Contracts or Programs Disclosure [Text Block]

. C

OSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

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

	September 30, 2015
	U.S Government		Commercial		Total

Costs incurred on uncompleted Contracts	$	331,229,392	$	113,516,197	$	444,745,589
Estimated earnings		62,389,343		47,564,640		109,953,983
Sub-total		393,618,735		161,080,837		554,699,572
Less billings to date		338,242,351		120,033,209		458,275,560

Costs and estimated earnings in excess of billings on uncompleted contracts	$	55,376,384	$	41,047,628	$	96,424,012

	December 31, 2014
	U.S. Government		Commercial		Total
Costs incurred on uncompleted Contracts	$	299,871,583	$	90,272,545	$	390,144,128
Estimated earnings		56,708,610		39,773,983		96,482,593
Sub-total		356,580,193		130,046,528		486,626,721
Less billings to date		313,441,471		94,324,761		407,766,232
Costs and estimated earnings in excess of billings on uncompleted contracts	$	43,138,722	$	35,721,767	$	78,860,489

The above amounts are included in the accompanying balance sheets under the following captions at September 30, 2015 and December 31, 2014:

	September 30, 2015			December 31, 2014
Costs and estimated earnings in excess of billings on uncompleted contracts	$	96,537,127		$	79,054,139
Billings in excess of costs and estimated earnings on uncompleted contracts		(113,115	)		(193,650	)

Totals	$	96,424,012		$	78,860,489

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 nine months ended September 30, 2015, 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 $333,000 from that which would have been reported had the revised estimates been used as the basis of recognition of contract profits in prior years. During the nine months ended September 30, 2014, 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 $42,346,000 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 uncompleted open contracts, it is possible that additional significant costs could occur on contracts prior to completion.