Trade Accounts Receivable

12 Months Ended

Nov. 03, 2013

Receivables [Abstract]

Trade Accounts Receivable

NOTE 5: Trade Accounts Receivable

Trade accounts receivable includes both billed and unbilled amounts due from customers. Billed trade receivables generally do not bear interest and are recorded at the amount invoiced less amounts for which revenue has been deferred because customer arrangements are not finalized. Unbilled receivables represent accrued revenue earned and recognized on contracts for which billings have not yet been presented to the customer. At November 3, 2013 and October 28, 2012 trade accounts receivable included unbilled receivables of $30.4 million and $31.2 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. The Company also maintains a sales allowance for specific customers related to volume discounts and 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.

For the years ended November 3, 2013, October 28, 2012 and October 30, 2011, the activity in the allowance accounts is as follows (in thousands):

	Balance at beginning of year		Provision / (Release)		Deductions		Balance at end of year
Year Ended November 3, 2013:
Sales allowance	$	544	$	(183)	$	(42)	$	319
Allowance for doubtful accounts		1,355		562		(425)		1,492
Total	$	1,899	$	379	$	(467)	$	1,811
	Balance at beginning of year		Provision / (Release)		Deductions		Balance at end of year
Year Ended October 28, 2012:
Sales allowance	$	1,169	$	(618)	$	(7)	$	544
Allowance for doubtful accounts		1,154		732		(531)		1,355
Total	$	2,323	$	114	$	(538)	$	1,899
	Balance at beginning of year		Provision / (Release)		Deductions		Balance at end of year
Year Ended October 30, 2011:
Sales allowance	$	2,484	$	(1,288)	$	(27)	$	1,169
Allowance for doubtful accounts		503		814		(163)		1,154
Total	$	2,987	$	(474)	$	(190)	$	2,323