ECOLOGY & ENVIRONMENT INC | 2013 | FY | 3

Substantially all of the Company's revenue is derived from environmental consulting work. The consulting revenue is principally derived from the sale of labor hours. The consulting work is performed under a mix of fixed price, cost-type, and time and material contracts. Contracts are required from all customers. Revenue is recognized as follows:

Contract Type
 
Work Type
 
Revenue Recognition Policy
 
 
 
 
 
Time and Materials
 
Consulting
 
As incurred at contract rates.
Fixed Price
 
Consulting
 
Percentage of completion, approximating the ratio of either total costs or Level of Effort (LOE) hours incurred to date to total estimated costs or LOE hours.
Cost-Type
 
Consulting
 
Costs as incurred. Fixed fee portion is recognized using percentage of completion determined by the percentage of LOE hours incurred to total LOE hours in the respective contracts.

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