COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

6 Months Ended

Jun. 30, 2014

COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS [Abstract]

COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

4. COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

Costs and estimated earnings in excess of billings on uncompleted contracts consist of:

	June 30, 2014
	U.S
	Government	Commercial	Total
Costs incurred on uncompleted
contracts	$283,389,597	$74,375,964	$357,765,561
Estimated earnings	54,647,673	33,817,544	88,465,217
Sub-total	338,037,270	108,193,508	446,230,778
Less billings to date	295,396,600	77,617,027	373,013,627
Costs and estimated earningsin excess of billings on uncompleted contracts	$42,640,670	$30,576,481	$73,217,151

	December 31, 2013
	U.S.
	Government	Commercial	Total
Costs incurred on uncompleted
contracts	$259,050,407	$62,502,116	$321,552,523
Estimated earnings	95,590,879	30,694,605	126,285,484
Sub-total	354,641,286	93,196,721	447,838,007
Less billings to date	272,783,120	62,733,921	335,517,041
Costs and estimated earnings in excess of billings on uncompleted contracts	$81,858,166	$30,462,800	$112,320,966

The above amounts are included in the accompanying balance sheets under the following captions at June 30, 2014 and December 31, 2013:

	June 30, 2014	December 31, 2013
Costs and estimated earnings in excess of billings on
uncompleted contracts	$ 73,560,852	$ 112,597,136
Billings in excess of costs and estimated earnings on
uncompleted contracts	(343,701)	(276,170)
Totals	$ 73,217,151	$ 112,320,966

U.S. Government Contracts includes contracts directly with the U.S. Government and Government subcontracts.

Revisions in the estimated gross profits on contracts and contract amounts are made in the period in which the circumstances requiring the revisions occur. During the six months ended June 30, 2014 and 2013, the effect of such revisions in total estimated contract profits resulted in a decrease to the total gross profit to be earned on the contracts of approximately $41,820,000 and $2,797,000, respectively, from that which would have been reported had the revised estimates been used as the basis of recognition of contract profits in prior years. Approximately 95% of the decrease in the six months ended June 30, 2014 is the result of a change in estimate on the Company's A-10 program, discussed in Note 1.

Although management believes it has established adequate procedures for estimating costs to complete on uncompleted open contracts, it is possible that additional significant costs could occur on contracts prior to completion.