Contracts In Process

6 Months Ended

Jul. 05, 2015

CONTRACTS IN PROCESS

Contracts in process represent recoverable costs and, where applicable, accrued profit related to long-term contracts that have been inventoried until the customer is billed, and consisted of the following:



	July 5, 2015			December 31, 2014
Contract costs and estimated profits	$	7,505		$	7,494
Other contract costs	1,040			1,064
	8,545			8,558
Advances and progress payments	(4,272		)	(3,967		)
Total contracts in process	$	4,273		$	4,591

Contract costs consist primarily of labor, material, overhead and G&A expenses. Other contract costs represent amounts that are not currently allocable to government contracts, such as a portion of our estimated workers’ compensation obligations, other insurance-related assessments, pension and other post-retirement benefits and environmental expenses. These costs will become allocable to contracts generally after they are paid. We expect to recover these costs through ongoing business, including existing backlog and probable follow-on contracts. If the backlog in the future does not support the continued deferral of these costs, the profitability of our remaining contracts could be adversely affected.