16.	Contingencies

From time to time, the Company is a defendant or plaintiff in various legal actions that arise in the normal course of business. As such, the Company is required to assess the likelihood of any adverse outcomes to these matters as well as potential ranges of losses and possible recoveries. The Company

may

not

be covered by insurance as it pertains to some or all of these matters. A determination of the amount of the provision required for these commitments and contingencies, if any, which would be charged to earnings, is made after careful analysis of each matter. Once established, a provision

may

change in the future due to new developments or changes in circumstances and could increase or decrease the Company’s earnings in the period that the changes are made. Asserted claims in these matters sought approximately

$10.3

million in damages (as further described below) as of

June 29, 2019.

As of

June 29, 2019,

the Company did

not

have an accrual for any such liabilities.

The Company has a dispute with a customer that is a major utility in the United States. Both parties agreed in fiscal

2017

to resolve this dispute through binding arbitration. Arbitration hearings with this customer started in fiscal

2018.

Essentially, the customer has

not

paid the balance of accounts receivable the Company believes are owed for certain disputed projects. As of

June 29, 2019

the total amount of outstanding receivables from this customer on these disputed projects was

$11.2

million, subject to potential upward adjustment in damages claimed in arbitration. Additionally, as part of the arbitration process, the customer has asserted counter-claims. While the total amount of asserted counter-claims is unknown as of

June 29, 2019,

the total amount of such counter-claims is anticipated to be at least

$10.3

million. The Company believes these counter-claims are retaliatory in nature. Prior to the Company asserting its claims, the customer had

not

asserted any counter-claims. The Company believes these counter-claims asserted by its customer have

merit and were merely asserted as a strategy to reduce the Company’s own claims in any arbitration award or potential settlement agreement. The Company believes that its accounts receivable balance, subject to reserves, is fully collectible. Furthermore, the Company believes that this arbitration will conclude prior to reporting its fiscal

2019

financial results. While the Company believes the customer’s counter-claims to be frivolous and without merit, it can give

assurances that it will ultimately

not

have to pay all or a portion of such counter-claims. The Company is continuing work on

one

of the engagements that have given rise to this dispute and also on several engagements from the same client that are

not

currently part of the arbitration.

The Company is also subject to other pending legal proceedings and claims that arise from time to time in the ordinary course of its business, which

may

not

be covered by insurance.