Accounts Receivable

3 Months Ended

Apr. 25, 2020

Accounts Receivable, Contract Assets, and Contract Liabilities

The following provides further details on the balance sheet accounts of accounts receivable, net; contract assets; and contract liabilities.

Accounts Receivable

Accounts receivable, net, classified as current, consisted of the following (dollars in thousands):


	April 25, 2020		January 25, 2020
Trade accounts receivable	$	384,383	$	355,805
Unbilled accounts receivable	479,706		453,353
Retainage	11,868		12,669
Total	875,957		821,827
Less: allowance for doubtful accounts	(5,166)		(4,582)
Accounts receivable, net	$	870,791	$	817,245

We maintain an allowance for doubtful accounts for estimated losses on uncollected balances. Approximately $16.8 million of the allowance for doubtful accounts as of January 26, 2019 was classified as non-current. The allowance for doubtful accounts changed as follows (dollars in thousands):


	For the Three Months Ended
	April 25, 2020		April 27, 2019
Cumulative effect from implementation of ASU 2016-13	$	471	$	—
Allowance for doubtful accounts at beginning of period	4,582		17,702
Provision for bad debt (recovery)	118		(10,311)
Amounts recovered (charged) against the allowance	(5)		(6,019)
Allowance for doubtful accounts at end of period	$	5,166	$	1,372

Contract Assets and Contract Liabilities

Net contract assets consisted of the following (dollars in thousands):


	April 25, 2020		January 25, 2020
Contract assets	$	275,001	$	253,005
Contract liabilities	24,566		16,332
Contract assets, net	$	250,435	$	236,673

Net contract assets were $250.4 million and $236.7 million as of April 25, 2020 and January 25, 2020, respectively. The increase primarily resulted from services performed under contracts consisting of multiple tasks which will be billed as the tasks are completed. During the three months ended April 25, 2020, we performed services and recognized $8.5 million of contract revenues related to contract liabilities that existed at January 25, 2020. See Note 6, Other Current Assets and Other Assets, for information on our long-term contract assets.

Customer Credit Concentration

Customers whose combined amounts of accounts receivable and contract assets, net, exceeded 10% of total combined accounts receivable and contract assets, net, as of April 25, 2020 or January 25, 2020 were as follows (dollars in millions):


	April 25, 2020					January 25, 2020
	Amount		% of Total	Amount		% of Total
Verizon Communications Inc.	$	471.2	41.9%	$	440.2	41.8%
CenturyLink, Inc.	$	204.6	18.2%	$	175.8	16.7%
Comcast Corporation	$	130.0	11.6%	$	114.0	10.8%

We believe that none of the customers above were experiencing financial difficulties that would materially impact the collectability of the Company’s total accounts receivable and contract assets, net, as of April 25, 2020 or January 25, 2020. On April 14, 2020, Frontier Communications filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York, to implement a prearranged debt restructuring plan. As of April 25, 2020, the Company had outstanding receivables and contract assets in aggregate of approximately $16.7 million with Frontier Communications. The Company has been identified as a critical vendor and expects to continue to provide service to Frontier Communications pursuant to existing contractual obligations and be paid in full for pre-petition and post-petition receivables and contract assets.