Annual report pursuant to Section 13 and 15(d)

Trade Accounts Receivable

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Trade Accounts Receivable
12 Months Ended
Oct. 28, 2018
Receivables [Abstract]  
Trade Accounts Receivable
Trade Accounts Receivable
Trade accounts receivable includes both billed and unbilled amounts due from customers. Billed trade receivables generally do not bear interest and are recorded at the amount invoiced less amounts for which revenue has been deferred because customer arrangements are not finalized. Unbilled receivables represent accrued revenue earned and recognized on contracts for which billings have not yet been presented to the customer. At October 28, 2018 and October 29, 2017, trade accounts receivable included unbilled receivables of $7.9 million and $12.9 million, respectively.
The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions, customers’ financial condition, and current receivable aging and payment patterns. Additions to the allowance for doubtful accounts are recorded to Selling, administrative and other operating costs. The Company also maintains a sales allowance for specific customers related to volume discounts and billing disputes. The amount of the sales allowance is determined based on discount estimates and historical credits issued and additions to the sales allowance are recorded as a reduction to net revenue. Account balances are written off against the allowances when the Company believes it is probable the amount will not be received.

For the years ended October 28, 2018 and October 29, 2017, the activity in the allowance accounts were as follows (in thousands):
 
Balance at
beginning of year
 
Provision / (Release)
 
Deductions
 
Balance at end
of year
Year Ended October 28, 2018:
 
 
 
 
 
 
 
Sales allowance
$
895

 
$
(190
)
 
$

 
$
705

Allowance for doubtful accounts
354

 
(8
)
 
(292
)
 
54

Total
$
1,249

 
$
(198
)
 
$
(292
)
 
$
759

 
 
 
 
 
 
 
 
 
Balance at
beginning of year
 
Provision / (Release)
 
Deductions
 
Balance at end
of year
Year Ended October 29, 2017:
 
 
 
 
 
 
 
Sales allowance
$
213

 
$
682

 
$

 
$
895

Allowance for doubtful accounts
588

 
357

 
(591
)
 
354

Total
$
801

 
$
1,039

 
$
(591
)
 
$
1,249