3.	Costs and Estimated Earnings on Uncompleted Contracts

Revenues from contracts, representing the majority of our revenues, are recognized on the percentage of completion method, measured by the percentage of contract costs incurred to date compared with estimated total contract costs for each contract. This method is used because management considers contract costs to be the best available measure of progress on these contracts. Our remaining revenues are recognized when risk and title passes to the customer, which is generally upon shipment of product.

Our contracts have various lengths to completion ranging from a few days to several months. We anticipate that a majority of our current contracts will be completed within twelve months.


	September 30,			December 31,
(dollars in thousands)	2013			2012
Costs incurred on uncompleted contracts	$	66,835		$	51,035
Estimated earnings		21,362			16,644

		88,197			67,679
Less billings to date and advanced billings		(87,056	)		(73,300	)

	$	1,141		$	(5,621	)

Included in the accompanying consolidated balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	16,892		$	5,747
Billings in excess of costs and estimated earnings on uncompleted contracts		(15,751	)		(11,368	)

	$	1,141		$	(5,621	)