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Customer Contracts
 3 Months Ended
Sep. 30, 2012
Customer Contracts

Note 2—Customer Contracts

Contract terms of the Company’s construction contracts generally provide for progress billings based on project milestones. The excess of costs incurred and estimated earnings over amounts billed on uncompleted contracts is reported as a current asset. The excess of amounts billed over costs incurred and estimated earnings recognized on uncompleted contracts is reported as a current liability. Gross and net amounts on uncompleted contracts are as follows:

 

     September 30,
2012		      June 30,
2012		  
     (in thousands)  

Costs incurred and estimated earnings recognized on uncompleted contracts

    $ 823,597       $ 774,749   

Billings on uncompleted contracts

      791,636         736,480   
  

 

 

     

 

 

  
   $ 31,961       $ 38,269   
  

 

 

     

 

 

  

Shown on balance sheet as:

      

Costs and estimated earnings in excess of billings on uncompleted contracts

    $ 77,598       $ 68,562   

Billings on uncompleted contracts in excess of costs and estimated earnings

      45,637         30,293   
  

 

 

     

 

 

  
   $ 31,961       $ 38,269   
  

 

 

     

 

 

  

Progress billings in accounts receivable at September 30, 2012 and June 30, 2012 included retentions to be collected within one year of $21.3 million and $22.3 million, respectively. Contract retentions collectible beyond one year totaled $2.6 million at September 30, 2012 and $1.2 million at June 30, 2012.

 

SME Receivables

The Company continues to pursue collection of certain receivables acquired in connection with the purchase of S.M. Electric Company, Inc. in February 2009. The recorded values at September 30, 2012 include $0.7 million in claim receivables, which represents the Company’s best estimate of the amount to be collected under a claim, and an additional $2.9 million for amounts due under the related contract. Recovering the remaining receivables will require mediation or litigation and the ultimate amount realized may be significantly different than the recorded amounts, which could result in a material adjustment to future earnings.