Trade Accounts Receivable

12 Months Ended

Nov. 01, 2020

Receivables [Abstract]

Trade Accounts Receivable

Trade Accounts Receivable

Trade accounts receivable includes both billed and unbilled amounts due from customers. Billed trade receivables generally do not bear interest. Unbilled receivables represent accrued revenue earned and recognized on contracts for which billings have not yet been presented to the customer. At November 1, 2020 and November 3, 2019, trade accounts receivable included unbilled receivables of $3.2 million and $7.7 million, respectively.

The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions, customers’ financial condition and current receivable aging and payment patterns. Additions to the allowance for doubtful accounts are recorded to Selling, administrative and other operating costs in the Consolidated Statement of Operations. The Company also maintains a sales allowance for specific customers related to billing disputes. The amount of the sales allowance is determined based on discount estimates and historical credits issued and additions to the sales allowance are recorded as a reduction to net revenue. Account balances are written off against the allowances when the Company believes it is probable the amount will not be received. As required under ASC 606, the Company changed its presentation to show this sales allowance as a liability, which is included in Accrued insurance and other in the Consolidated Balance Sheet.

For the years ended November 1, 2020 and November 3, 2019, the activity in the allowance accounts were as follows (in thousands):

	Balance at beginning of year		Activity		Balance at end of year
Year Ended November 1, 2020
Allowance for doubtful accounts included in Trade accounts receivable	$	117	$	102	$	219
Accrued sales reserve included in Accrued insurance and other	$	310	$	(148)	$	162
	Balance at beginning of year		Adoption of Topic 606		Activity		Balance at end of year
Year Ended November 3, 2019
Sales allowance	$	705	$	(705)	$	—	$	—
Allowance for doubtful accounts	54		—		63		117
Total included in Trade accounts receivable	$	759	$	(705)	$	63	$	117
Accrued Sales Reserve included in Accrued insurance and other	$	—	$	705	$	(395)	$	310