Concentration of Credit Risk

12 Months Ended

Jul. 27, 2013

The Company is subject to concentrations of credit risk relating primarily to its cash and equivalents, trade accounts receivable and costs and estimated earnings in excess of billings. The Company grants credit under normal payment terms, generally without collateral, to its customers. These customers primarily consist of telephone companies, cable television multiple system operators, and electric and gas utilities. With respect to a portion of the services provided to these customers, the Company has certain statutory lien rights which may in certain circumstances enhance the Company’s collection efforts. Adverse changes in overall business and economic factors may impact the Company’s customers and increase credit risks. These risks may be heightened as a result of economic weakness and market volatility. In the past, some of the Company’s customers have experienced significant financial difficulties and likewise, some may experience financial difficulties in the future. These difficulties expose the Company to increased risks related to the collectability of amounts due for services performed.

The Company’s customer base is highly concentrated, with its top five customers accounting for approximately 58.5%, 59.6%, and 62.0% of its total revenues in fiscal 2013, 2012, and 2011, respectively. AT&T Inc. ("AT&T"), CenturyLink, Inc. ("CenturyLink"), Comcast Corporation ("Comcast"), and Verizon Communications, Inc. ("Verizon") represent a significant portion of the Company’s customer base and each were over 10% of total revenue during fiscal 2013, 2012, or 2011 as reflected in the following table:



	Fiscal Year Ended
	2013	2012	2011
AT&T	15.5%	13.7%	21.1%
CenturyLink	14.6%	13.6%	10.8%
Comcast	10.9%	12.6%	14.3%
Verizon	9.6%	11.3%	8.9%

The Company believes that none of its significant customers were experiencing financial difficulties that would materially impact the collectability of the Company’s trade accounts receivable and costs in excess of billings as of July 27, 2013. Customers representing 10% or more of combined amounts of trade accounts receivable and costs and estimated earnings in excess of billings as of July 27, 2013 or July 28, 2012 had the following outstanding balances and the related percentage of the Company’s total outstanding balances:



	July 27, 2013				July 28, 2012
	Amount		% of Total		Amount		% of Total
			(Dollars in millions)
CenturyLink	$	62.6	13.7	%	$	47.6	17.7	%
Windstream Corporation	$	59.4	13.0	%	$	35.4	13.2	%
AT&T	$	57.4	12.6	%	$	24.7	9.2	%
Verizon	$	33.4	7.3	%	$	30.5	11.3	%

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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