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Uncompleted Contracts (Notes)
 9 Months Ended
Mar. 31, 2013
Disclosure Customer Contracts Additional Information [Abstract]  
Uncompleted Contracts
Uncompleted Contracts
Contract terms of the Company’s construction contracts generally provide for progress billings based on project milestones. The excess of costs incurred and estimated earnings over amounts billed on uncompleted contracts is reported as a current asset. The excess of amounts billed over costs incurred and estimated earnings recognized on uncompleted contracts is reported as a current liability. Gross and net amounts on uncompleted contracts are as follows:
 
 
March 31,
2013
 
June 30,
2012
 
(in thousands)
Costs incurred and estimated earnings recognized on uncompleted contracts
$
920,179

 
$
774,749

Billings on uncompleted contracts
899,413

 
736,480

 
$
20,766

 
$
38,269

Shown on balance sheet as:
 
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts
$
70,559

 
$
68,562

Billings on uncompleted contracts in excess of costs and estimated earnings
49,793

 
30,293

 
$
20,766

 
$
38,269


Progress billings in accounts receivable at March 31, 2013 and June 30, 2012 included retentions to be collected within one year of $19.0 million and $22.3 million, respectively. Contract retentions collectible beyond one year totaled $6.0 million at March 31, 2013 and $1.2 million at June 30, 2012.
 
SME Receivables
The Company continues to pursue collection of a certain receivable acquired in connection with the purchase of S.M. Electric Company, Inc. in February 2009. The recorded values at March 31, 2013 include $0.7 million in claim receivables, which represents the Company’s best estimate of the amount to be collected under a claim, and an additional $2.9 million for amounts due under the related contract. Recovering the remaining receivables will require mediation or litigation and the ultimate amount realized may be significantly different than the recorded amounts, which could result in a material adjustment to future earnings.
Western Canada Aboveground Storage Tank Project
During the nine months ended March 31, 2013, our results of operations were materially impacted by a $3.1 million charge resulting from a change in estimate for a project to construct aboveground storage tanks in western Canada. The charge was primarily driven by changes in facts and circumstances regarding lower than expected labor productivity and higher than expected direct employee costs. The Company recognized $3.0 million of the charge in the second quarter. Project execution in the third quarter was as expected resulting in a nominal charge of $0.1 million. The change in estimate resulted in a $2.0 million decrease in our net income and a $0.08 decrease in our diluted earnings per common share during the nine months ended March 31, 2013.
Billings on uncompleted contracts in excess of costs and estimated earnings included an accrued loss related to this project of $0.6 million at March 31, 2013. This project was at 81% completion at March 31, 2013 and is expected to be completed in early fiscal 2014.
Legal Settlement
On May 3, 2013, the Company settled a customer dispute in excess of amounts previously accrued resulting in a third quarter charge of $1.0 million. The settlement amount of $1.5 million is expected to be paid in the fourth quarter of fiscal 2013.
Other
The western Canada aboveground storage tank project and legal settlement discussed above are the only change in estimates considered material to our results of operations during the periods presented herein.