Uncompleted Contracts (Notes)

6 Months Ended

Dec. 31, 2015

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:

	December 31, 2015			June 30, 2015
	(in thousands)
Costs incurred and estimated earnings recognized on uncompleted contracts	$	1,937,286		$	1,633,780
Billings on uncompleted contracts	1,969,683			1,644,413
	$	(32,397	)	$	(10,633	)
Shown in balance sheet as:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	81,743		$	86,071
Billings on uncompleted contracts in excess of costs and estimated earnings	114,140			96,704
	$	(32,397	)	$	(10,633	)

Progress billings in accounts receivable at December 31, 2015 and June 30, 2015 included retentions to be collected within one year of $25.3 million and $25.2 million, respectively. Contract retentions collectible beyond one year are included in Other Assets in the Condensed Consolidated Balance Sheet and totaled $5.6 million at December 31, 2015 and $2.8 million at June 30, 2015.

Other

In the three and six months ended December 31, 2014 our results of operations were materially impacted by charges resulting from a change in estimate related to an acquired EPC joint venture project in the Electrical Infrastructure segment. The charges resulted in a reduction to operating income of $22.9 million and $26.2 million and an after-tax reduction of $7.9 million and $9.0 million to net income attributable to Matrix Service Company, respectively. The Company recorded an additional charge on this project in the second quarter of fiscal 2016. The charge resulted in a reduction of operating income in the Electrical Infrastructure segment of $5.4 million and $5.5 million and a reduction of $2.0 million in net income attributable to Matrix Service Company in the three and six months ended December 31, 2015, respectively.

The fiscal 2016 project charge was attributable to higher than expected project closeout costs. The Company reached substantial completion on the project in the fourth quarter of fiscal 2015.