COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS, NET

3 Months Ended

Jul. 31, 2020

Long-term Contracts or Programs Disclosure [Text Block]

NOTE C – COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS, NET

At July 31, 2020 and April 30, 2020, costs and estimated earnings in excess of billings, net, consisted of the following:

	July 31, 2020			April 30, 2020
	(In thousands)
Costs and estimated earnings in excess of billings	$	17,466		$	10,460
Billings in excess of costs and estimated earnings		(10,534	)		(3,507	)
Net asset	$	6,932		$	6,953

Such amounts represent revenue recognized on long-term contracts that had not been billed at the balance sheet dates or represent a liability for amounts billed in excess of the revenue recognized. Amounts are billed to customers pursuant to contract terms. In general, the recorded amounts will be billed and collected or revenue recognized within twelve months of the balance sheet date. Revenue on these long-term contracts is accounted for on the percentage of completion (“POC”) basis. During the three months ended July 31, 2020 and 2019, revenue recognized under POC contracts was approximately $11.7 million and $11.5 million, respectively. If contract losses are anticipated, costs and estimated earnings in excess of billings are reduced for the full amount of such losses when they are determinable. Contract losses of approximately $611,000 and $314,000 were recorded for the three months ended July 31, 2020 and July 31, 2019, respectively.