Accounts Receivable - Net

3 Months Ended

Dec. 30, 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:

	December 30, 2012		September 30, 2012
	(in thousands)
Billed	$	370,231	$	362,331
Unbilled	325,305		355,793
Contract retentions	16,047		17,908
Total accounts receivable – gross	711,583		736,032
Allowance for doubtful accounts	(36,689)		(35,552)
Total accounts receivable – net	$	674,894	$	700,480
Current billings in excess of costs on uncompleted contracts	$	94,511	$	90,909
Non-current billings in excess of costs on uncompleted contracts	4,351		4,410
Total billings in excess of costs on uncompleted contracts	$	98,862	$	95,319

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 December 30, 2012 are expected to be billed and collected within 12 months.  Unbilled accounts receivable at December 30, 2012 and September 30, 2012 include approximately $17 million and $21 million, respectively, related to claims, and requests for equitable adjustment on contracts that provide for price redetermination primarily with U.S. federal government agencies.  These amounts are management’s estimate of the most probable amount to be realized upon the conclusion of claims settlement process.  We regularly evaluate these claim amounts and record appropriate adjustments to operating earnings when collection is deemed to have changed.  No material losses were recognized related to the collectability of claims during the first quarters of fiscal 2013 and 2012.  Contract retentions represent amounts withheld by clients until certain conditions are met or the project is completed, which may be 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 are 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 $72.7 million and $65.9 million at December 30, 2012 and September 30, 2012, respectively.  U.S. federal government unbilled receivables, net of progress payments, were $104.1 million and $100.4 million at December 30, 2012 and September 30, 2012, respectively.  Other than the U.S. federal government, no single client accounted for more than 10% of our accounts receivable at December 30, 2012 and September 30, 2012.