Contract Receivables, net

12 Months Ended

Jul. 31, 2018

Contract Receivables, net [Abstract]

Contract Receivables, net

7. Contract Receivables, net

Contract receivables, net are summarized in the following table.

	July 31,
	2018			2017 (Restated)
	(in thousands)
Contract receivables:
Billed	$	12,905		$	15,003
Unbilled		13,994			17,990
		26,899			32,993
Allowance for doubtful accounts		(1,284	)		(2,044	)
Contract receivables, net	$	25,615		$	30,949

Billed contract receivables included contractual retainage balances of $1.4 million and $0.9 million at July 31, 2018 and 2017, respectively.  Management anticipates that the unbilled contract receivables and retainage balances at July 31, 2018, included in the table above, will be substantially billed and collected within one year.

At July 31, 2018, management identified $0.5 million of contract receivables, net that are not expected to be collected within one year.  These net receivables represent long-term assets that are included in other assets on the consolidated balance sheet at July 31, 2018.

Contract Receivable Concentrations

Significant concentrations of contract receivables and the allowance for doubtful accounts are summarized in the following table.

	July 31, 2018				July 31, 2017
Region	Contract Receivables		Allowance for Doubtful Accounts		Contract Receivables (Restated)		Allowance for Doubtful Accounts (Restated)
	(in thousands)
U.S. operations	$	21,580	$	569	$	25,472	$	797
South American operations		5,319		715		7,521		1,247
Totals	$	26,899	$	1,284	$	32,993	$	2,044

The allowance for doubtful accounts for the Company’s South American operations represented 13% and 17% of related contract receivables at July 31, 2018 and 2017, respectively.  Unstable local economies that adversely impacted certain of our South American clients in recent years demonstrated signs of stabilizing during fiscal year 2018.  Management continues to monitor trends and events that may adversely impact the realizability of recorded receivables from our South American clients.

Allowance for Doubtful Accounts

Activity within the allowance for doubtful accounts is summarized in the following table.

	Fiscal Year Ended July 31,
	2018			2017 (Restated)			2016 (Restated)
	(in thousands)
Balance at beginning of period	$	2,044		$	6,792		$	6,817
Provision for doubtful accounts during the period		813			682			1,164
Write-offs and recoveries of allowance recorded in prior periods		(943	)		(5,430	)		(1,189	)
Reclassification of allowance from current to noncurrent		(630	)		---			---
Balance at end of period	$	1,284		$	2,044		$	6,792

During fiscal year 2017, the Company reversed $4.9 million of allowance related to a specific project in the Middle East, for which a corresponding $4.9 million contract receivable balance was also written off during the period.