COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

3 Months Ended

Mar. 31, 2017

Contractors [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:

	March 31, 2017
	U.S
	Government		Commercial		Total
Costs incurred on uncompleted contracts	$	350,245,484	$	160,200,864	$	510,446,348
Estimated earnings		41,604,960		59,384,245		100,989,205
Sub-total		391,850,444		219,585,109		611,435,553
Less billings to date		340,937,961		168,889,481		509,827,442
Costs and estimated earnings in excess of billings on uncompleted contracts	$	50,912,483	$	50,695,628	$	101,608,111

	December 31, 2016
	U.S.
	Government		Commercial		Total
Costs incurred on uncompleted contracts	$	341,003,461	$	153,898,425	$	494,901,886
Estimated earnings		39,638,231		58,346,518		97,984,749
Sub-total		380,641,692		212,244,943		592,886,635
Less billings to date		331,277,942		162,145,504		493,423,446
Costs and estimated earnings in excess of billings on uncompleted contracts	$	49,363,750	$	50,099,439	$	99,463,189

The above amounts are included in the accompanying condensed balance sheets under the following captions at March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
Costs and estimated earnings in excess of billings on uncompleted contracts	$	101,929,550		$	99,578,526
Billings in excess of costs and estimated earnings on uncompleted contracts		(321,439	)		(115,337	)
Totals	$	101,608,111		$	99,463,189

U.S. Government Contracts include 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 three months ended March 31, 2017, 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 $1,275,000 from that which would have been reported had the revised estimates been used as the basis of recognition of contract profits in prior years, excluding the effect of the A-10 contract. During the three months ended March 31, 2016, the effect of such revisions was a decrease to total gross profit of approximately $1,320,000.

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