Uncompleted Contracts (Notes)

3 Months Ended

Sep. 30, 2015

Disclosure Customer Contracts Additional Information [Abstract]

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, 2015		June 30, 2015
	(in thousands)
Costs incurred and estimated earnings recognized on uncompleted contracts	$	1,744,572	$	1,633,780
Billings on uncompleted contracts	1,736,243		1,644,413
	$	8,329	$	(10,633	)
Shown on balance sheet as:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	83,604	$	86,071
Billings on uncompleted contracts in excess of costs and estimated earnings	75,275		96,704
	$	8,329	$	(10,633	)

Progress billings in accounts receivable at September 30, 2015 and June 30, 2015 included retentions to be collected within one year of $26.3 million and $25.2 million, respectively. Contract retentions collectible beyond one year are included in Other Assets on the Condensed Consolidated Balance Sheet and totaled $1.0 million at September 30, 2015 and $2.8 million at June 30, 2015.

Other

In the three months ended September 30, 2014 our results of operations were materially impacted by charges resulting from a change in estimate related to an acquired EPC joint venture project in the Electrical Infrastructure segment. The charges resulted in a reduction to operating income of $3.3 million and an after-tax reduction of $1.3 million to net income attributable to Matrix Service Company. The Company reached substantial completion in the fourth quarter of fiscal 2015 on the project and is currently working through project closeout.