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Costs and Estimated Earnings on Uncompleted Contracts | 3 Months Ended
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Mar. 31, 2017
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Costs and Estimated Earnings on Uncompleted Contracts |
4. | Costs and Estimated Earnings on Uncompleted Contracts
Revenues from contracts are primarily 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. For contracts where the duration is short, total contract revenue is insignificant, or reasonably dependable estimates cannot be made, revenues are recognized on a completed contract basis, 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 the next twelve months.
(Table only in thousands) |  | March 31, 2017 |  |  | December 31, 2016 |
Costs incurred on uncompleted contracts |  | $ | 193,201 |  |  | $ | 186,609 |
Estimated earnings |  |  | 77,234 |  |  |  | 77,709 |
|  |  | 270,435 |  |  |  | 264,318 |
Less billings to date |  |  | (271,199 | ) |  |  | (261,280 | )
|  | $ | (764 | ) |  | $ | 3,038 |
Included in the accompanying condensed consolidated balance sheets under the following captions: |  |  |  |  |  |  |  |
Costs and estimated earnings in excess of billings on uncompleted contracts |  | $ | 33,447 |  |  | $ | 38,123 |
Billings in excess of costs and estimated earnings on uncompleted contracts |  |  | 34,211 |  |  |  | 35,085 |
|  | $ | (764 | ) |  | $ | 3,038 |
Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes to job performance, job conditions, and estimated profitability may result in revisions to contract revenue and costs, and are recognized in the period in which the revisions are made. No provision for estimated losses on uncompleted contracts was required at March 31, 2017 or December 31, 2016.

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