COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

9 Months Ended

Sep. 30, 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 the following:

	September 30, 2017
	U.S.
	Government		Commercial		Total
Costs incurred on uncompleted contracts	$	368,164,864	$	171,052,715	$	539,217,579
Estimated earnings		34,663,617		71,877,761		106,541,378
Sub-total		402,828,481		242,930,476		645,758,957
Less billings to date		357,402,993		180,391,063		537,794,056
Costs and estimated earnings in excess of billings on uncompleted contracts	$	45,425,488	$	62,539,413	$	107,964,901

	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 September 30, 2017 and December 31, 2016:

	September 30, 2017			December 31, 2016
Costs and estimated earnings in excess of billings on uncompleted contracts	$	108,377,905		$	99,578,526
Billings in excess of costs and estimated earnings on uncompleted contracts		(413,004	)		(115,337	)
Totals	$	107,964,901		$	99,463,189

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 nine months ended September 30, 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 $1,684,000 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 nine months ended September 30, 2016, the effect of such revisions was a decrease to total gross profit of approximately $1,627,000.

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.