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Customer Contracts
 12 Months Ended
Jun. 30, 2017
Contractors [Abstract]  
Customer Contracts
Uncompleted 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 on uncompleted contracts is reported as a current liability. Gross and net amounts on uncompleted contracts are as follows:
 
 
June 30,
2017
 
June 30,
2016
 
 
(In thousands)
Costs and estimated earnings recognized on uncompleted contracts
 
$
1,919,054

 
$
1,875,014

Billings on uncompleted contracts
 
1,903,001

 
1,829,340

 
 
$
16,053

 
$
45,674

Shown on balance sheet as:
 
 
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts
 
$
91,180

 
$
104,001

Billings on uncompleted contracts in excess of costs and estimated earnings
 
75,127

 
58,327

 
 
$
16,053

 
$
45,674


Progress billings in accounts receivable at June 30, 2017 and June 30, 2016 included retentions to be collected within one year of $54.3 million and $29.7 million, respectively. Contract retentions collectible beyond one year are included in other assets in the condensed consolidated balance sheet and totaled $1.9 million at June 30, 2017 and $0.3 million at June 30, 2016. Accounts payable included retentions of $12.6 million at June 30, 2017 and $14.9 million at June 30, 2016. Accounts payable retentions are generally expected to be settled within one year.
Other
Our results were negatively impacted by an increased cost estimate related to a large project in the Electrical Infrastructure segment, which resulted in a decrease in gross profit. The change in cost estimate resulted from a deterioration in the financial forecast of the project during the third fiscal quarter and was caused by various factors that have delayed schedule progress and reduced productivity. In July 2017, the Company reached a settlement agreement with the customer, which resolved open claims and modified the terms enabling the Company to recover all costs and overhead to perform the remainder of the work.  In addition, the execution strategy was revised and a significant portion of future work will no longer be performed by the Company.  The magnitude of the scope reduction is based on the Company’s best estimate at this time but may change as the detailed execution plan continues to develop.
During the year ended June 30, 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 $53.4 million and an after-tax reduction of $18.3 million to net income attributable to Matrix Service Company for fiscal year 2015. The Company recorded additional charges on this project during the year ended June 30, 2016. 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.