Accounts Receivable, Contract Assets, and Contract Liabilities

6 Months Ended

Jul. 29, 2023

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 29, 2023		January 28, 2023
Trade accounts receivable	$	464,494	$	367,842
Unbilled accounts receivable	721,046		670,066
Retainage	32,711		32,351
Total	1,218,251		1,070,259
Less: allowance for doubtful accounts	(3,801)		(3,246)
Accounts receivable, net	$	1,214,450	$	1,067,013

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 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Allowance for doubtful accounts at beginning of period	$	3,682	$	761	$	3,246	$	724
Provision for bad debt	796		102		1,232		134
Amounts charged against the allowance	(677)		(78)		(677)		(73)
Allowance for doubtful accounts at end of period	$	3,801	$	785	$	3,801	$	785

Contract Assets and Contract Liabilities

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

	July 29, 2023		January 28, 2023
Contract assets	$	77,254	$	43,932
Contract liabilities	20,864		19,512
Contract assets, net	$	56,390	$	24,420

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 29, 2023, we performed services and recognized $3.5 million and $14.2 million, respectively, of contract revenues related to contract liabilities that existed at January 28, 2023. 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 29, 2023 or January 28, 2023 were as follows (dollars in millions):

	July 29, 2023			January 28, 2023
	Amount		% of Total	Amount		% of Total
Lumen Technologies	$	315.3	24.7%	$	189.3	17.4%
AT&T Inc.	$	132.4	10.4%	$	136.2	12.5%
Comcast Corporation	$	125.9	9.9%	$	125.2	11.5%
Frontier Communications Corporation	$	96.5	7.6%	$	153.2	14.0%

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 29, 2023 or January 28, 2023.