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 as of

March 28, 2020

are uncertain as

open claims have asserted any specific amounts. As of

March 28, 2020,

the Company did

not

have an accrual for any such liabilities. As described in the following paragraph, these claims were denied in their entireties as a result of the arbitration.

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 did

not

pay the balance of accounts receivable the Company believes were owed for certain disputed projects. As of

December 28, 2019,

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

$14.1

million. Additionally, as part of the arbitration process, the customer asserted counter-claims of

$10.3

million. The arbitrator rendered a decision in this dispute in

April 2020,

awarding the Company

$7.4

million. The counter-claims asserted against the Company of

$10.3

million were denied in their entirety. For the

thirteen

week period ended

March 28, 2020,

the Company recorded a charge of

$8.0

million, including

$6.7

million constituting the portion of the accounts receivable relating to the disputed projects that was

not

awarded by the arbitrator,

$0.7

million from other projects with this customer that were

not

part of the arbitration,

$0.4

million in professional fees related to the dispute and arbitration, and

$0.2

million of transit accounts receivable associated with disputed projects that were part of the arbitration. The Company decided to write off the

$0.7

million of accounts receivable from other projects

not

part of the arbitration for business reasons.

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.