REVENUE

We implemented ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), in Q1 2019 using the modified-retrospective method, which required the new guidance to be applied retrospectively to revenue transactions completed on or after the effective date. The adoption of the new revenue standard did not have an impact on our consolidated financial statements except for enhanced disclosures. All necessary changes required by the new standard, including those related to our accounting policies, controls and disclosures, have been identified and implemented as of the beginning of 2019.

Accounting Policies

Our revenue consists substantially of product sales and related service revenue. Product sales are reported net of discounts and are recognized when control passes to the purchaser, which is when the rights and obligations associated with the product or service have transferred to the purchaser. For sales to our dealers, this typically occurs when product is shipped. In cases where we sell directly to customers, control of the product is often transferred upon delivery. The performance obligation from services is considered satisfied when the services have been rendered.

For shipping and handling activities, we have elected to apply the accounting policy election permitted in ASC 606-10-25-18B, which allows an entity to account for shipping and handling activities as fulfillment activities rather than a promised good or service when the activities are performed even if those activities are performed after the control of the good has been transferred. We expense shipping and handling costs at the time revenue is recognized, which is in accordance with the policy election.

For sales tax, we elected to apply the accounting policy election permitted in ASC 606-10-32-2A, which allows an entity to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). This allows us to present revenue net of these certain types of taxes.

Disaggregation of Revenue

The following table provides information about disaggregated revenue by product category for each of our reportable segments:



Product Category Data	Three Months Ended
Product Category Data	May 25, 2018		May 26, 2017
Americas
Systems and storage	$	258.0	$	264.5
Seating	157.9		152.7
Other (1)	119.9		117.8
EMEA
Systems and storage	62.8		52.3
Seating	44.2		37.3
Other (1)	30.4		23.5
Other
Systems and storage	7.7		14.3
Seating	11.2		13.5
Other (1)	61.9		59.2
	$	754.0	$	735.1

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(1)	The Other product category data by segment consists primarily of consolidated dealers, textiles and surface materials, worktools, architecture, technology, other uncategorized product lines and services.

Reportable geographic information is as follows:



Reportable Geographic Revenue	Three Months Ended
Reportable Geographic Revenue	May 25, 2018		May 26, 2017
United States	$	471.3	$	467.0
Foreign locations	282.7		268.1
	$	754.0	$	735.1

Contract Balances

We have contract assets which are reported as Accounts receivable in the Condensed Consolidated Balance Sheets. These assets represent the amount of consideration to which we are entitled in exchange for the goods or services rendered to our customers.

At times, we receive deposits from customers before revenue is recognized, resulting in the recognition of a contract liability (Customer deposits) presented in the Condensed Consolidated Balance Sheets.

Changes in the Customer deposits balance during the three months ended May 25, 2018 are as follows:



	Customer Deposits
Balance as of February 23, 2018	$	28.2
Increases due to deposits received, net of other adjustments	12.5
Revenue recognized	(20.9		)
Balance as of May 25, 2018	$	19.8

Practical Expedients Elected

For incremental costs of obtaining a contract, we have elected the practical expedient permitted in ASC 340-40-25-4, which permits an entity to recognize incremental costs to obtain a contract as an expense when incurred if the amortization period will be less than one year. This election had no effect on our financial statements.

For significant financing components, we have elected the practical expedient permitted in ASC 606-10-32-18, which allows an entity to recognize the promised amount of consideration without adjusting for the effects of a significant financing component if the contract has a duration of one year or less. As our contracts typically are less than one year in length and do not have significant financing components, consideration is not adjusted.