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ACCOUNTS RECEIVABLE
12 Months Ended
Jan. 31, 2018
ACCOUNTS RECEIVABLE  
ACCOUNTS RECEIVABLE

 

NOTE 6 — ACCOUNTS RECEIVABLE

 

Amounts retained by project owners under construction contracts and included in accounts receivable at January 31, 2018 and 2017 were $70.1 million and $36.2 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, 2018, related to active projects and will be collected during 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 a customer based on an evaluation of the customer’s 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 amounts of the provision for uncollectible accounts and notes receivable were $0.3 and $1.2 million for the fiscal years ended January 31, 2018 and 2017, respectively, and were included in selling, general and administrative expenses for the corresponding year; the amount was not material for the year ended January 31, 2016. Also, APC wrote-off the balance of an account receivable from a project owner in the amount of $0.8 million during the fiscal year ended January 31, 2017. As of January 31, 2018 and 2017, the amounts of the allowance were $0.1 and $1.9 million, respectively, relating primarily to project development loans made in prior years.