Uncompleted Contracts (Notes)

9 Months Ended

Mar. 31, 2016

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:



	March 31, 2016		June 30, 2015
	(in thousands)
Costs incurred and estimated earnings recognized on uncompleted contracts	$	1,759,416	$	1,633,780
Billings on uncompleted contracts	1,733,579		1,644,413
	$	25,837	$	(10,633	)
Shown in balance sheet as:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	92,646	$	86,071
Billings on uncompleted contracts in excess of costs and estimated earnings	66,809		96,704
	$	25,837	$	(10,633	)

Progress billings in accounts receivable at March 31, 2016 and June 30, 2015 included retentions to be collected within one year of $24.4 million and $25.2 million, respectively. Contract retentions collectible beyond one year are included in other assets in the condensed consolidated balance sheet and totaled $5.6 million at March 31, 2016 and $2.8 million at June 30, 2015.

Other

In the three and nine months ended March 31, 2015 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 $28.5 million and $54.7 million and an after-tax reduction of $9.7 million and $18.7 million to net income attributable to Matrix Service Company, respectively. The Company recorded additional charges on this project during the three and nine months ended March 31, 2016, which resulted in a reduction to operating income of $1.6 million and $7.1 million and an after-tax reduction to net income attributable to Matrix Service Company of $0.5 million and $2.5 million, respectively.

The fiscal 2016 project charges are attributable to higher than expected project closeout costs. The Company reached substantial completion on the project in the fourth quarter of fiscal 2015.