Accounts Receivable

12 Months Ended

Jul. 25, 2015

Receivables [Abstract]

Accounts Receivable

Accounts Receivable

Accounts receivable consisted of the following:

	July 25, 2015			July 26, 2014
	(Dollars in thousands)
Contract billings	$	292,029		$	258,254
Retainage	24,321			15,323
Total	316,350			273,577
Less: allowance for doubtful accounts	(1,216		)	(836		)
Accounts receivable, net	$	315,134		$	272,741

The Company grants credit under normal payment terms, generally without collateral, to its customers. The Company expects to collect the outstanding balance of accounts receivable, net (including retainage and amounts on which it has filed construction liens) within the next twelve months. The increase in accounts receivable and retainage during fiscal 2015 is the result of higher levels of work performed. Except as described below, there were no material accounts receivable amounts representing claims or other similar items subject to uncertainty as of July 25, 2015 or July 26, 2014.

In April 2014, Pauley Construction, Inc. ("Pauley"), a wholly-owned subsidiary of the Company, halted work and filed construction liens with respect to past due balances from a customer on a rural project. The project was being funded primarily by the Rural Utilities Service agency of the United States Department of Agriculture (the "RUS") under the American Recovery and Reinvestment Act of 2009. During fiscal 2015, the project restarted pursuant to the customer's restructuring plan with the RUS. In connection therewith, the Company made an investment of $4.0 million in nonvoting senior units of the customer during fiscal 2015. The Company collected certain of the past due balances and $6.8 million remains outstanding as of July 25, 2015. The Company expects to collect the remaining accounts receivable balances from the customer within the next twelve months. A significant portion of the outstanding balance is secured by construction liens. In the event the customer does not pay the balances owed, the Company may enforce its liens rights or take other actions necessary for collection. Amounts realized from these actions would depend on the fair value of the assets as well as the amount owed to, and the priority of, other creditors at the time of resolution.

The Company maintains an allowance for doubtful accounts for estimated losses on uncollected balances. The allowance for doubtful accounts changed as follows:

	Fiscal Year Ended
	July 25, 2015			July 26, 2014
	(Dollars in thousands)
Allowance for doubtful accounts at beginning of period	$	836		$	129
Bad debt expense	465			615
Amounts recovered (charged) against the allowance	(85		)	92
Allowance for doubtful accounts at end of period	$	1,216		$	836