4.	Costs and Estimated Earnings on Uncompleted Contracts

Revenues from contracts are recognized on the percentage of completion method, measured by the percentage of contract costs incurred to date compared to estimated total contract costs for each contract. This method is used because management considers contract costs to be the best available measure of progress on these contracts. Revenues are also recognized on a completed contract basis, when risk and title passes to the customer, which is generally upon shipment of product.

Our contracts have various lengths to completion ranging from a few days to several months. We anticipate that a majority of our current contracts will be completed within the next twelve months.


(Table only in thousands)	March 31, 2015			December 31, 2014
Costs incurred on uncompleted contracts	$	103,990		$	97,979
Estimated earnings		31,278			28,328

		135,268			126,307
Less billings to date		(118,312	)		(116,533	)

	$	16,956		$	9,774

Included in the accompanying condensed consolidated balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	31,985		$	24,371
Billings in excess of costs and estimated earnings on uncompleted contracts		(15,029	)		(14,597	)

	$	16,956		$	9,774