Receivables

The components of accounts receivable consisted of the following:



(in thousands)	As of			As of
	June 30,			September 30,
	2011			2010

Accounts receivable	$	35,769		$	37,574
Accounts receivable – unbilled	5,469			10,950

Accounts receivable, gross	41,238			48,524

Allowance for doubtful accounts	(3,380		)	(8,399		)

Accounts receivable, net	$	37,858		$	40,125

Unbilled accounts receivable represents revenue recognized but not yet billed as of the period ended. Billings on contracts using the percentage-of-completion method usually occur upon completion of predetermined contract milestones or other contract terms, such as customer approval. The allowance for doubtful accounts is based on the age of receivables and a specific identification of receivables considered at risk of collection.

As of June 30, 2011 and September 30, 2010, we had $5.4 million and $18.4 million, respectively, of accounts receivable recorded using the percentage of completion method. Of these amounts, $1.7 million was invoiced and $3.7 million was unbilled as of June 30, 2011; and, $8.8 million was invoiced and $9.6 million was unbilled as of September 30, 2010. The allowance for doubtful accounts specifically related to receivables recorded using the percentage-of-completion method totaled $5.1 million as of September 30, 2010, and as noted below, this allowance was reclassified to a non-current receivable account.

During the three months ended March 2011, we entered into an accounts receivable settlement agreement related to a large fixed-priced international solar power system contract that was accounted for using the percentage-of-completion method. Based upon the terms of the settlement agreement, we reclassified a net accounts receivable balance of approximately $2.0 million from a current receivable account to a long-term receivable account within other non-current assets, leaving approximately $0.2 million as a current receivable which is expected to be paid within the next twelve months. The reclass consisted of a billed receivable balance of $5.8 million, unbilled receivable balance of $1.5 million, along with an allowance for doubtful accounts that totaled $5.3 million. During the three months ended June 30, 2011, we wrote off $2.9 million related to the long-term receivable that was fully reserved for.

The following table summarizes the changes in the allowance for doubtful accounts within accounts receivable:



(in thousands)	For the Nine Months Ended June 30,
	2011			2010

Balance at beginning of period	$	8,399		$	7,125

Provision adjustment - expense, net of recoveries	63			1,957
Reclass of allowance for doubtful accounts to a long-term receivables account	(5,254		)	—
Impact from foreign exchange translation adjustment	181			(421		)
Write-offs - deductions against receivables	(9		)	(1,060		)

Balance at end of period	$	3,380		$	7,601