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COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

6 Months Ended

Jun. 30, 2017

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:

		June 30, 2017
		U.S
		Government				Commercial				Total

Costs incurred on uncompleted contracts		$	357,970,228			$	165,341,508			$	523,311,736
Estimated earnings			40,585,938				61,086,808				101,672,746
Sub-total			398,556,166				226,428,316				624,984,482
Less billings to date			349,494,171				174,720,733				524,214,904

Costs and estimated earnings in excess of billings on uncompleted contracts		$	49,061,995			$	51,707,583			$	100,769,578

		December 31, 2016
		U.S.
		Government				Commercial				Total
Costs incurred on uncompleted contracts		$	341,003,461			$	153,898,425			$	494,901,886
Estimated earnings			39,638,231				58,346,518				97,984,749
Sub-total			380,641,692				212,244,943				592,886,635
Less billings to date			331,277,942				162,145,504				493,423,446

Costs and estimated earnings in excess of billings on uncompleted contracts		$	49,363,750			$	50,099,439			$	99,463,189

The above amounts are included in the accompanying condensed balance sheets under the following captions at June 30, 2017 and December 31, 2016:

		June 30, 2017				December 31, 2016
Costs and estimated earnings in excess of billings on uncompleted contracts		$	101,692,410			$	99,578,526
Billings in excess of costs and estimated earnings on uncompleted contracts			(922,832	)			(115,337	)

Totals		$	100,769,578			$	99,463,189

U.S. Government Contracts include 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 six months ended June 30, 2017, 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 six months ended June 30, 2016, the effect of such revisions was a decrease to total gross profit of approximately $1,171,000.

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.