Concentration of Credit Risk

6 Months Ended

Jan. 28, 2017

The Company is subject to concentrations of credit risk relating primarily to its cash and equivalents, 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 multiple system operators, wireless carriers, network operators, telecommunication equipment and infrastructure providers, and electric and gas utilities and others. With respect to a portion of the services provided to these customers, the Company has statutory lien rights which may in certain circumstances assist in 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 become elevated as a result of economic weakness and market volatility. In the past, some of the Company’s customers have experienced significant financial difficulties and 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 75.8%, 76.1%, 69.7%, and 61.1%, of its total contract revenues during the 2018 transition period and fiscal 2017, 2016, and 2015, respectively. Customers whose contract revenues exceeded 10% of total contract revenues during the 2018 transition period or fiscal 2017, 2016, or 2015 were as follows:



	Six Months Ended	Fiscal Year Ended
	January 27, 2018	July 29, 2017	July 30, 2016	July 25, 2015
Comcast Corporation	21.6%	17.7%	13.6%	12.9%
AT&T Inc.	20.6%	26.3%	24.4%	20.8%
CenturyLink, Inc.⁽¹⁾	17.5%	18.2%	14.7%	14.5%
Verizon Communications Inc.⁽²⁾	12.0%	9.2%	11.2%	7.7%

Customers whose combined amounts of trade accounts receivable and costs and estimated earnings in excess of billings, net (“CIEB, net”) exceeded 10% of total combined trade receivables and CIEB, net as of January 27, 2018, July 29, 2017, or July 30, 2016 were as follows (dollars in millions):



	January 27, 2018			July 29, 2017			July 30, 2016
	Amount		% of Total	Amount		% of Total	Amount		% of Total
Comcast Corporation	$	166.5	24.5%	$	159.7	21.3%	$	95.3	13.9%
CenturyLink, Inc.⁽¹⁾	$	126.0	18.5%	$	148.1	19.8%	$	81.5	11.9%
Verizon Communications Inc.⁽²⁾	$	98.2	14.4%	$	73.7	9.8%	$	70.2	10.2%
AT&T Inc.	$	79.2	11.6%	$	87.1	11.6%	$	138.8	20.3%
Windstream Corporation	$	42.9	6.3%	$	84.7	11.3%	$	79.0	11.5%

⁽¹⁾For comparison purposes in the tables above, amounts from CenturyLink, Inc. and Level 3 Communications, Inc. have been combined for periods prior to their November 2017 merger.

⁽²⁾For comparison purposes in the tables above, amounts from Verizon Communications Inc. and XO Communications LLC’s fiber-optic network business have been combined for periods prior to their February 2017 merger.

In addition another customer had combined amounts of trade accounts receivable and CIEB, net of $25.9 million, or 3.8%, as of January 27, 2018, $47.2 million, or 6.3%, as of July 29, 2017, and $71.5 million, or 10.4%, as of July 30, 2016.

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 January 27, 2018. See Note 4, Accounts Receivable, and Note 5, Costs and Estimated Earnings in Excess of Billings, for additional information regarding the Company’s trade accounts receivable and costs and estimated earnings in excess of billings.