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ACCOUNTS RECEIVABLE
12 Months Ended
Jan. 31, 2016
ACCOUNTS RECEIVABLE  
ACCOUNTS RECEIVABLE

 

NOTE 6 — ACCOUNTS RECEIVABLE

 

Amounts retained by project owners under construction contracts and included in accounts receivable at January 31, 2017 and 2016 were $36.2 million and $44.6 million, respectively. Such retainage amounts represent funds withheld by project owners until a defined phase of a contract or project has been completed and accepted by the project owner. Retention amounts and the length of retention periods may vary. Most of the amount outstanding as of January 31, 2017, relates to active projects and will not be collected until the fiscal year ending January 31, 2019. Retainage amounts related to active contracts are classified as current assets regardless of the term of the applicable contract and amounts are generally collected by the completion of the applicable contract.

 

The Company may extend credit to its customers based on an evaluation of the customers’ financial condition, generally without requiring collateral. Exposure to losses on accounts receivable is expected to differ by customer due to the varying financial condition of each customer. The Company monitors its exposure to credit losses and maintains an allowance for anticipated losses considered necessary under the circumstances based on historical experience with uncollected accounts and a review of its currently outstanding accounts receivable. The provision for uncollectible accounts was $1.2 million for the fiscal year ended January 31, 2017 and was included in selling, general and administrative expenses; such amounts were not material for the years ended January 31, 2016 and 2015. The amount of the allowance for uncollectible accounts at January 31, 2017 was $1.9 million; it related primarily to project development loans made in prior years. The allowance amount as of January 31, 2016 was not material. Due to the circumstances described in Note 8 below, APC wrote-off its account receivable from a project owner in the amount of $0.8 million during the fiscal year ended January 31, 2017.