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COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS
 9 Months Ended
Sep. 30, 2016
Contractors [Abstract]  
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS
4.COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

 

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

 

   September 30, 2016 
    U.S.           
    Government    Commercial    Total 
                
Costs incurred on uncompleted               
Contracts  $330,307,949   $146,911,809   $477,219,758 
Estimated earnings   35,177,233    55,943,864    91,121,097 
Sub-total   365,485,182    202,855,673    568,340,855 
Less billings to date   318,086,991    155,340,784    473,427,775 
                
Costs and estimated earnings in excess of billings on uncompleted contracts  $47,398,191   $47,514,889   $94,913,080 

 

   December 31, 2015 
    U.S.           
    Government    Commercial    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 
Sub-total   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 

 

The above amounts are included in the accompanying balance sheets under the following captions at September 30, 2016 and December 31, 2015:

 

    September 30, 2016    December 31, 2015 
Costs and estimated earnings in excess of billings on uncompleted contracts  $95,743,826   $102,622,387 
Billings in excess of costs and estimated earnings on uncompleted contracts   (830,746)   (175,438)
           
Totals  $94,913,080   $102,446,949 

 

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, 2016, 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 $1,627,000 from that which would have been reported had the revised estimates been used as the basis of recognition of contract profits in prior years, excluding the effect of the A-10 contract. During the nine months ended September 30, 2015, the effect of such revisions was a decrease to total gross profit of approximately $333,000.

 

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