Concentration of Credit Risk

6 Months Ended

Jul. 27, 2019

Customer Concentration and Revenue Information

Geographic Location

The Company provides services throughout the United States. Contract revenues from services previously provided in Canada were not material during the three or six months ended July 27, 2019 or July 28, 2018.

Significant Customers

The Company’s customer base is highly concentrated, with its top five customers accounting for approximately 79.4% and 78.3% of its total contract revenues during the six months ended July 27, 2019 and July 28, 2018, respectively. Customers whose contract revenues exceeded 10% of total contract revenues during the three or six months ended July 27, 2019 or July 28, 2018, as well as total contract revenues from all other customers combined, were as follows (dollars in millions):



	For the Three Months Ended						For the Six Months Ended
	July 27, 2019			July 28, 2018			July 27, 2019			July 28, 2018
	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
Verizon Communications Inc.	$	205.0	23.2%	$	147.3	18.4%	$	384.8	22.4%	$	269.5	17.6%
AT&T Inc.	183.3		20.7	165.2		20.7	392.5		22.8	342.2		22.4
CenturyLink, Inc.	138.7		15.7	107.6		13.5	248.5		14.5	197.2		12.9
Comcast Corporation	133.2		15.1	171.2		21.4	270.3		15.7	330.3		21.6
Total other customers combined	224.0		25.3	208.2		26.0	421.9		24.6	391.6		25.5
Total contract revenues	$	884.2	100.0%	$	799.5	100.0%	$	1,718.0	100.0%	$	1,530.8	100.0%

See Note 5, Accounts Receivable, Contract Assets, and Contract Liabilities, for information on the Company’s customer credit concentration and collectability of trade accounts receivable and contract assets.

Customer Type

Total contract revenues by customer type during the three and six months ended July 27, 2019 and July 28, 2018 were as follows (dollars in millions):



	For the Three Months Ended						For the Six Months Ended
	July 27, 2019			July 28, 2018			July 27, 2019			July 28, 2018
	Amount		% of Total	Amount		% of Total	Amount		% of Total	Amount		% of Total
Telecommunications	$	804.4	91.0%	$	726.7	90.9%	$	1,565.8	91.2%	$	1,393.9	91.1%
Underground facility locating	53.8		6.1	49.0		6.1	102.0		5.9	94.1		6.1
Electrical and gas utilities and other	26.0		2.9	23.8		3.0	50.2		2.9	42.8		2.8
Total contract revenues	$	884.2	100.0%	$	799.5	100.0%	$	1,718.0	100.0%	$	1,530.8	100.0%

Remaining Performance Obligations

Master service agreements and other contractual agreements with customers contain customer-specified service requirements, such as discrete pricing for individual tasks. In most cases, the Company’s customers are not contractually committed to procure specific volumes of services under these agreements.

Services are generally performed pursuant to these agreements in accordance with individual work orders. An individual work order generally is completed within one year. As a result, the Company’s remaining performance obligations under the work orders not yet completed is not meaningful in relation to the Company’s overall revenue at any given point in time. The Company applies the practical expedient in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, and does not disclose information about remaining performance obligations that have original expected durations of one year or less.