Note 2 - Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts

12 Months Ended

Dec. 31, 2015

Long-term Contracts or Programs Disclosure [Text Block]

COSTS

AND

ESTIMATED EARNINGS IN

EXCESS OF BILLINGS ON UNCOMPLETED CONTRACTS

At December 31, 2015, costs and estimated earnings in excess of billings on uncompleted contracts (unbilled)

consist of:

	U.S. Government		Commerc ial		Total
Costs incurred on uncompleted contracts	$	349,458,368	$	123,078,356	$	472,536,724
Estimated earnings		62,718,792		49,539,299		112,258,091
		412,177,160		172,617,655		584,794,815
Less billings to date		353,601,903		128,745,963		482,347,866

Costs and estimated earnings in excess of billings on uncompleted contracts	$	58,575,257	$	43,871,692	$	102,446,949

At December 31, 2014, costs and estimated earnings in excess of billings on uncompleted contracts (unbilled) consist of:

	U.S. Government		Commercial		Total


Costs incurred on uncompleted contracts	$	299,871,583	$	90,272,545	$	390,144,128
Estimated earnings		56,708,610		39,773,983		96,482,593
		356,580,193		130,046,528		486,626,721
Less billings to date		313,441,471		94,324,761		407,766,232

Costs and estimated earnings in excess of billings on uncompleted contracts	$	43,138,722	$	35,721,767	$	78,860,489

The above amounts are included in the accompanying balance sheets under the following captions at December 31, 2015 and 2014.

	2015			2014
Costs and estimated earnings in excess of billings on uncompleted contracts	$	102,622,387		$	79,054,139
Billings in excess of costs and estimated earnings on uncompleted contracts		(175,438	)		(193,650	)

Totals	$	102,446,949		$	78,860,489

Unbilled costs and estimated earnings are billed in accordance with applicable contract terms. As of December 31, 2015, approximately $17.6 million of the balances above are not expected to be collected within one year. There are no amounts billed under retainage provisions.

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 years ended December 31, 2015, 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 $1,875,000, $42,568,000 and $3,700,000, respectively, from that which would have been reported had the revised estimate been used as the basis of recognition of contract profits in prior years.

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