Accounts Receivable, Contract Assets, and Contract Liabilities

6 Months Ended

Jul. 30, 2022

Receivables [Abstract]

Accounts Receivable, Contract Assets, and Contract Liabilities

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):

	July 30, 2022		January 29, 2022
Trade accounts receivable	$	412,859	$	330,811
Unbilled accounts receivable	682,119		545,493
Retainage	24,402		20,318
Total	1,119,380		896,622
Less: allowance for doubtful accounts	(785)		(724)
Accounts receivable, net	$	1,118,595	$	895,898

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				For the Six Months Ended
	July 30, 2022		July 31, 2021		July 30, 2022		July 31, 2021
Allowance for doubtful accounts at beginning of period	$	761	$	4,237	$	724	$	1,676
Provision for bad debt	102		78		134		2,901
Amounts charged against the allowance	(78)		(2,788)		(73)		(3,050)
Allowance for doubtful accounts at end of period	$	785	$	1,527	$	785	$	1,527

Contract Assets and Contract Liabilities

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

	July 30, 2022		January 29, 2022
Contract assets	$	45,715	$	24,539
Contract liabilities	16,170		18,512
Contract assets, net	$	29,545	$	6,027

The increase in net contract assets primarily resulted from increased services performed under contracts consisting of multiple tasks. During the three and six months ended July 30, 2022, we performed services and recognized $3.6 million and $11.3 million of contract revenues related to contract liabilities that existed at January 29, 2022. 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 July 30, 2022 or January 29, 2022 were as follows (dollars in millions):

	July 30, 2022			January 29, 2022
	Amount		% of Total	Amount		% of Total
Lumen Technologies	$	231.1	20.1%	$	166.0	18.4%
AT&T Inc.	$	162.3	14.1%	$	106.0	11.7%
Verizon Communications Inc.	$	147.7	12.9%	$	144.3	16.0%
Comcast Corporation	$	133.9	11.7%	$	113.5	12.6%

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 July 30, 2022 or January 29, 2022.