Revenue, Receivables and Contract Assets and Liabilities

6 Months Ended

Aug. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue, Receivables and Contract Assets and Liabilities

Revenue

The following table disaggregates total revenue by timing of recognition (see Note 13 for disclosure of revenue by segment):



	Three Months Ended				Six Months Ended
In thousands	August 31, 2019		September 1, 2018		August 31, 2019		September 1, 2018
Recognized at shipment	$	164,336	$	166,534	$	319,602	$	323,401
Recognized over time	192,722		195,599		392,822		375,263
Total	$	357,058	$	362,133	$	712,424	$	698,664

Receivables

Trade and construction accounts receivable consist of amounts billed and due from customers. The amounts due are stated at their estimated net realizable value. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. This allowance is based on an assessment of customer creditworthiness, historical payment experience and the age of outstanding receivables. Retainage on construction contracts represents amounts withheld by our customers on long-term projects until the project reaches a level of completion where amounts are released.



In thousands	August 31, 2019			March 2, 2019
Trade accounts	$	153,765		$	145,693
Construction contracts	17,822			19,050
Contract retainage	35,047			32,396
Total receivables	206,634			197,139
Less: allowance for doubtful accounts	(4,721		)	(4,372		)
Net receivables	$	201,913		$	192,767

Contract assets and liabilities

Contract assets consist of retainage, costs and earnings in excess of billings and other unbilled amounts typically generated when revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of billings in excess of costs and earnings and other deferred revenue on contracts. Retainage is classified within receivables and deferred revenue is classified within other current liabilities on our consolidated balance sheets.

The time period between when performance obligations are complete and when payment is due is not significant. In certain of our businesses that recognize revenue over time, progress billings follow an agreed-upon schedule of values, and retainage is withheld by the customer until the project reaches a level of completion where amounts are released.



In thousands	August 31, 2019		March 2, 2019
Contract assets	$	110,018	$	87,491
Contract liabilities	22,980		24,083

The increase in contract assets was due to timing of costs incurred in advance of billings, primarily on a legacy EFCO project. The change in contract liabilities was due to timing of project activity within our businesses that operate under long-term contracts.



Other contract-related disclosures	Three Months Ended				Six Months Ended
In thousands	August 31, 2019		September 1, 2018		August 31, 2019		September 1, 2018
Revenue recognized related to contract liabilities from prior year-end	$	3,361	$	1,262	$	17,455	$	10,380
Revenue recognized related to prior satisfaction of performance obligations	4,481		1,470		6,430		3,798

Some of our contracts have an expected duration of longer than a year, with performance obligations extending over that timeframe. Generally these contracts are in our businesses with long-term contracts which recognize revenue over time. As of August 31, 2019, the transaction price associated with unsatisfied performance obligations was approximately $775.7 million. The performance obligations are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:



In thousands	August 31, 2019
Within one year	$	442,666
Within two years	286,223
Beyond	46,800
Total	$	775,689