Note 4 - Costs and Estimated Earnings on Uncompleted Contracts

3 Months Ended

Mar. 31, 2016

Long-term Contracts or Programs Disclosure [Text Block]

. C

OSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

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

	March 31, 2016
	U.S Government		Commercial		Total

Costs incurred on uncompleted Contracts	$	365,420,922	$	131,723,458	$	497,144,380
Estimated earnings		49,232,922		51,232,036		100,464,958
Sub-total		414,653,844		182,955,494		597,609,338
Less billings to date		367,009,811		137,787,467		504,797,278

Costs and estimated earnings in excess of billings on uncompleted contracts	$	47,644,033	$	45,168,027	$	92,812,060

	December 31, 2015
	U.S. Government		Commercial		Total
Costs incurred on uncompleted Contracts	$	349,458,368	$	123,078,356	$	472,536,724
Estimated earnings		62,718,792		49,539,299		112,258,091
Sub-total		412,177,160		172,617,655		584,794,815
Less billings to date		353,601,903		128,745,963		482,347,866
Costs and estimated earnings in excess of billings on uncompleted contracts	$	58,575,257	$	43,871,692	$	102,446,949

The above amounts are included in the accompanying balance sheets under the following captions at March

31, 2016 and December 31, 2015:

	March 31, 2016			December 31, 2015
Costs and estimated earnings in excess of billings on uncompleted contracts	$	92,884,034		$	102,622,387
Billings in excess of costs and estimated earnings on uncompleted contracts		(71,974	)		(175,438	)

Totals	$	92,812,060		$	102,446,949

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 three months ended March 31, 2016, 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 $1,320,000 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, 2015, the effect of such revisions was immaterial.

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.