Customer Contracts

12 Months Ended

Jun. 30, 2014

Contractors [Abstract]

Customer Contracts

Customer 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 on uncompleted contracts is reported as a current liability. Gross and net amounts on uncompleted contracts are as follows:

	June 30, 2014			June 30, 2013
	(In thousands)
Costs and estimated earnings recognized on uncompleted contracts	$	1,435,242		$	802,588
Billings on uncompleted contracts	1,470,674			791,663
	$	(35,432	)	$	10,925
Shown on balance sheet as:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	73,008		$	73,773
Billings on uncompleted contracts in excess of costs and estimated earnings	108,440			62,848
	$	(35,432	)	$	10,925

SME Receivables

The Company continues to pursue collection of a receivable acquired in connection with the purchase of S.M. Electric Company, Inc. in February 2009. The recorded values at June 30, 2014 and June 30, 2013 include $0.7 million in claim receivables, which represents the Company's best estimate of the amount to be collected under the 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.

Other

In the twelve months ended June 30, 2014 our results of operations were materially impacted by a charge resulting from a change in estimate on an aboveground storage tank project. The charge resulted in an $8.4 million decrease in operating income for the twelve months ended June 30, 2014. The project is a loss project; therefore, the entire projected loss has been recorded. The charge reflects management's best estimate of the total contract revenues to be recognized and total costs at completion.

In the twelve months ended June 30, 2013, our gross profit was materially impacted by a $3.7 million charge resulting from a change in estimate for a project to construct aboveground storage tanks. This project was completed in the fourth quarter of fiscal 2013.