Accounts Receivable, Contract Assets, and Contract Liabilities

3 Months Ended

May 01, 2021

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):


	May 1, 2021		January 30, 2021
Trade accounts receivable	$	326,582	$	352,501
Unbilled accounts receivable	529,150		492,324
Retainage	16,050		14,974
Total	871,782		859,799
Less: allowance for doubtful accounts	(4,237)		(1,676)
Accounts receivable, net	$	867,545	$	858,123

We maintain an allowance for doubtful accounts for estimated losses on uncollected balances. The allowance for doubtful accounts changed as follows (dollars in thousands):


	For the Three Months Ended
	May 1, 2021		April 25, 2020
Cumulative effect from implementation of ASU 2016-13	$	—	$	471
Allowance for doubtful accounts at beginning of period	1,676		4,582
Provision for bad debt	2,823		118
Amounts charged against the allowance	(262)		(5)
Allowance for doubtful accounts at end of period	$	4,237	$	5,166

Contract Assets and Contract Liabilities

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


	May 1, 2021		January 30, 2021
Contract assets	$	177,212	$	197,110
Contract liabilities	18,833		14,101
Contract assets, net	$	158,379	$	183,009

Net contract assets were $158.4 million and $183.0 million as of May 1, 2021 and January 30, 2021, respectively. The decrease primarily resulted from reduced services performed and increased billings under contracts consisting of multiple tasks. During the three months ended May 1, 2021, we performed services and recognized $5.9 million of contract revenues related to contract liabilities that existed at January 30, 2021. 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 May 1, 2021 or January 30, 2021 were as follows (dollars in millions):


	May 1, 2021			January 30, 2021
	Amount		% of Total	Amount		% of Total
Verizon Communications Inc.	$	361.5	35.1%	$	389.9	37.4%
Lumen Technologies(1)	$	153.5	14.9%	$	173.5	16.6%
Comcast Corporation	$	134.8	13.1%	$	131.7	12.6%

(1) Formerly known as CenturyLink, Inc.

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 May 1, 2021 or January 30, 2021.