Accounts Receivable - Net

9 Months Ended

Jul. 03, 2011

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:

	July 3,2011			October 3, 2010
	(in thousands)
Billed	$	372,771		$	314,905
Unbilled	316,367			271,643
Contract retentions	13,890			13,020
Total accounts receivable – gross	703,028			599,568
Allowance for doubtful accounts	(33,897		)	(32,926		)
Total accounts receivable – net	$	669,131		$	566,642
Current billings in excess of costs on uncompleted contracts	$	83,907		$	79,401
Non-current billings in excess of costs on uncompleted contracts	6,194			5,820
Total billings in excess of costs on uncompleted contracts	$	90,101		$	85,221

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.  Substantially all unbilled receivables as of July 3, 2011 are expected to be billed and collected within twelve months.  Unbilled accounts receivable include amounts related to requests for equitable adjustment to contracts that provide for price redetermination primarily with the U.S. federal government.  These amounts are recorded only when they can be reliably estimated and realization is probable.  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 twelve months.

Billed accounts receivable related to U.S. federal government contracts were $96.0 million and $86.3 million as of July 3, 2011 and October 3, 2010, respectively.  U.S. federal government unbilled receivables, net of progress payments, were $97.6 million and $102.0 million as of July 3, 2011 and October 3, 2010, respectively.  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.  Other than the U.S. federal government, no single client accounted for more than 10% of our accounts receivable as of July 3, 2011 and October 3, 2010.