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Note 4 - Costs and Estimated Earnings on Uncompleted Contracts
 9 Months Ended
Sep. 30, 2014
Contractors [Abstract]  
Long-term Contracts or Programs Disclosure [Text Block]

4. COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS


Costs and estimated earnings in excess of billings on uncompleted contracts consist of:


   

September 30, 2014

 
   

U.S

                 
   

Government

   

Commercial

   

Total

 
                         

Costs incurred on uncompleted contracts

  $ 290,924,522     $ 82,332,450     $ 373,256,972  

Estimated earnings

    57,658,304       36,786,655       94,444,959  

Sub-total

    348,582,826       119,119,105       467,701,931  

Less billings to date

    303,745,077       86,373,955       390,119,032  

Costs and estimated earnings in excess of billings on uncompleted contracts

  $ 44,837,749     $ 32,745,150     $ 77,582,899  

   

December 31, 2013

 
   

U.S.

                 
   

Government

   

Commercial

   

Total

 

Costs incurred on uncompleted contracts

  $ 259,050,407     $ 62,502,116     $ 321,552,523  

Estimated earnings

    95,590,879       30,694,605       126,285,484  

Sub-total

    354,641,286       93,196,721       447,838,007  

Less billings to date

    272,783,120       62,733,921       335,517,041  

Costs and estimated earnings in excess of billings on uncompleted contracts

  $ 81,858,166     $ 30,462,800     $ 112,320,966  

The above amounts are included in the accompanying balance sheets under the following captions at September 30, 2014 and December 31, 2013:


   

September 30, 2014

   

December 31, 2013

 

Costs and estimated earnings in excess of billings on uncompleted contracts

  $ 77,791,327     $ 112,597,136  

Billings in excess of costs and estimated earnings on uncompleted contracts

    (208,428 )     (276,170 )
                 

Totals

  $ 77,582,899     $ 112,320,966  

U.S. Government Contracts includes contracts directly with the U.S. Government and Government subcontracts.


Revisions in the estimated gross profits on contracts and contract amounts are made in the period in which the circumstances requiring the revisions occur. During the nine months ended September 30, 2014 and 2013, the effect of such revisions in total estimated contract profits resulted in a decrease to the total gross profit to be earned on the contracts of approximately $42,346,000 and $3,600,000, respectively, from that which would have been reported had the revised estimates been used as the basis of recognition of contract profits in prior years. Approximately 95% of the decrease in the nine months ended September 30, 2014 is the result of a change in estimate on the Company’s A-10 program, discussed in Note 1.


Although management believes it has established adequate procedures for estimating costs to complete on uncompleted open contracts, it is possible that additional significant costs could occur on contracts prior to completion.