Accounts Receivable, Contract Assets, and Contract Liabilities

9 Months Ended

Oct. 26, 2024

Accounts Receivable, Contract Assets, and Contract Liabilities

The following provides further details on the balance sheet accounts of accounts receivable, net; contract assets; and contract liabilities.

Accounts Receivable

Accounts receivable, net, classified as current, consisted of the following (dollars in thousands):


	October 26, 2024		January 27, 2024
Trade accounts receivable	$	660,685	$	462,034
Unbilled accounts receivable	961,600		734,442
Retainage	40,285		49,556
Total	1,662,570		1,246,032
Less: allowance for doubtful accounts	(1,277)		(2,776)
Accounts receivable, net	$	1,661,293	$	1,243,256

We maintain an allowance for doubtful accounts for estimated losses on uncollected balances. The allowance for doubtful accounts changed as follows (dollars in thousands):


	For the Three Months Ended				For the Nine Months Ended
	October 26, 2024		October 28, 2023		October 26, 2024		October 28, 2023
Allowance for doubtful accounts at beginning of period	$	1,671	$	3,801	$	2,776	$	3,246
Provision for (recovery of) bad debt	84		(205)		(1,006)		1,028
Amounts charged against the allowance	(478)		(31)		(493)		(709)
Allowance for doubtful accounts at end of period	$	1,277	$	3,565	$	1,277	$	3,565

Contract Assets and Contract Liabilities

Net contract assets consisted of the following (dollars in thousands):


	October 26, 2024		January 27, 2024
Contract assets	$	60,963	$	52,211
Contract liabilities	58,885		39,122
Contract assets, net	$	2,078	$	13,089

The decrease in contract assets, net, primarily resulted from increased billings under contracts consisting of multiple tasks. During the three and nine months ended October 26, 2024, we performed services and recognized $2.2 million and $14.7 million, respectively, of contract revenues related to contract liabilities that existed at January 27, 2024. See Note 7, Other Current Assets and Other Assets, for information on our long-term contract assets.

Customer Credit Concentration

We have two customers whose combined amounts of accounts receivable and contract assets, net, exceeded 10% of total combined accounts receivable and contract assets, net. The combined amounts of accounts receivable and contract assets, net, for Lumen Technologies were $401.9 million, or 24.1%, and $345.0 million, or 27.4%, as of October 26, 2024 and January 27, 2024, respectively, and Charter Communications were $186.9 million, or 11.2%, and $108.2 million, or 8.6%, as of October 26, 2024 and January 27, 2024, respectively, of the total combined accounts receivable and contract assets, net. No other customer had combined amounts of accounts receivable and contract assets, net, which exceeded 10% of total combined accounts receivable and contract assets, net as of October 26, 2024 or January 27, 2024. We believe that none of our significant customers were experiencing financial difficulties that would materially impact the collectability of our total accounts receivable and contract assets, net, as of October 26, 2024 or January 27, 2024.