2. COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON UNCOMPLETED CONTRACTS
At December 31, 2013, costs and estimated earnings in excess of billings on uncompleted contracts (unbilled) consist of:
| | 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 |
| | 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 |
| | | | |
At December 31, 2012, costs and estimated earnings in excess of billings on uncompleted contracts (unbilled) consist of: |
| | U.S. Government | Commercial | Total |
| |
Costs incurred on uncompleted | | | |
Contracts | $214,888,101 | $42,636,753 | $257,524,854 |
Estimated earnings | 85,320,636 | 23,782,285 | 109,102,921 |
| | 300,208,737 | 66,419,038 | 366,627,775 |
Less billings to date | 215,743,090 | 42,631,694 | 258,374,784 |
Costs and estimated earnings in excess of billings on uncompleted contracts | $84,465,647 | $23,787,344 | $108,252,991 |
The above amounts are included in the accompanying balance sheets under the following captions at December 31, 2013 and December 31, 2012:
| | 2013 | 2012 |
Costs and estimated earnings in excess of billings on | | |
uncompleted contracts | $ 112,597,136 | $ 108,909,844 |
Billings in excess of costs and estimated earnings on | | |
uncompleted contracts | (276,170) | (656,853) |
| | | |
Totals | $ 112,320,966 | $ 108,252,991 |
Unbilled costs and estimated earnings are billed in accordance with applicable contract terms. As of December 31, 2013, approximately $30 million of the balances above are not expected to be collected within one year. There are no amounts billed under retainage provisions.
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 years ended December 31, 2013, 2012 and 2011, 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 $3,700,000, $1,300,000 and $3,000,000, respectively, from that which would have been reported had the revised estimate been used as the basis of recognition of contract profits in prior years.
Although management believes it has established adequate procedures for estimating costs to complete on uncompleted open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion.
