Accounts Receivable - Net

6 Months Ended

Apr. 01, 2012

Accounts Receivable - Net

Accounts Receivable - Net

2.Accounts Receivable – Net

Net accounts receivable and billings in excess of costs on uncompleted contracts consisted of the following:

	April 1,2012			October 2,2011
	(in thousands)
Billed	$	326,991		$	364,779
Unbilled	329,328			309,091
Contract retentions	22,057			15,553
Total accounts receivable – gross	678,376			689,423
Allowance for doubtful accounts	(35,956		)	(32,244		)
Total accounts receivable – net	$	642,420		$	657,179
Current billings in excess of costs on uncompleted contracts	$	85,086		$	84,754
Non-current billings in excess of costs on uncompleted contracts	4,344			5,832
Total billings in excess of costs on uncompleted contracts	$	89,430		$	90,586

Billed accounts receivable represent amounts billed to clients that have not been collected.  Unbilled accounts receivable represent revenue recognized but not yet billed pursuant to contract terms or billed after the period end date.  Most of our unbilled receivables at April 1, 2012 are expected to be billed and collected within 12 months.  Unbilled accounts receivable at April 1, 2012 and October 2, 2011 include approximately $21 million and $16 million, respectively, related to claims and requests for equitable adjustment on contracts that provide for price redetermination primarily with agencies of the U.S. federal government.  These amounts are management’s estimate of the most probable amount to be realized upon the conclusion of the claims settlement process.  We regularly evaluate these claim amounts and record appropriate charges to operating earnings when collection is not deemed to be probable.  No material losses were recognized related to the collectability of claims during the second quarter and first six months of fiscal 2012 and 2011.  Contract retentions represent amounts withheld by clients until certain conditions are met or the project is completed, which may take several months or years.  The allowance for doubtful accounts is determined based on a review of client-specific accounts, and contract issues resulting from current events and economic circumstances.  Billings in excess of costs on uncompleted contracts represent the amount of cash collected from clients and billings to clients on contracts in advance of revenue recognized.  The majority of billings in excess of costs on uncompleted contracts will be earned within 12 months.  The non-current billings in excess of costs on uncompleted contracts were reported as part of our “Other long-term liabilities” on our condensed consolidated balance sheets.

Billed accounts receivable related to U.S. federal government contracts were $91.0 million and $88.5 million at April 1, 2012 and October 2, 2011, respectively.  U.S. federal government unbilled receivables, net of progress payments, were $103.0 million and $102.7 million at April 1, 2012 and October 2, 2011, respectively.  Other than the U.S. federal government, no single client accounted for more than 10% of our accounts receivable at April 1, 2012 and October 2, 2011.