Uncompleted Contracts (Notes)

6 Months Ended

Dec. 31, 2012

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, 2012		June 30, 2012
	(in thousands)
Costs incurred and estimated earnings recognized on uncompleted contracts	$	831,053	$	774,749
Billings on uncompleted contracts	822,508		736,480
	$	8,545	$	38,269
Shown on balance sheet as:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	66,151	$	68,562
Billings on uncompleted contracts in excess of costs and estimated earnings	57,606		30,293
	$	8,545	$	38,269

Progress billings in accounts receivable at December 31, 2012 and June 30, 2012 included retentions to be collected within one year of $23.3 million and $22.3 million, respectively. Contract retentions collectible beyond one year totaled $2.9 million at December 31, 2012 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 December 31, 2012 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 three and six months ended December 31, 2012, our results of operations were materially impacted by a 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. This change in estimate resulted in a $3.3 million and $3.0 million decrease in operating income, a $2.1 million and $2.0 million decrease in our net income and a $0.08 and $0.07 decrease in our diluted earnings per common share during the three and six months ended December 31, 2012, respectively. This change was the only change in estimate considered material to our results of operations during the periods presented herein.

Billings on uncompleted contracts in excess of costs and estimated earnings included an accrued loss related to this project of $1.4 million at December 31, 2012.