Revenue, Receivables and Contract Assets and Liabilities

3 Months Ended

May 29, 2021

Revenue from Contract with Customer [Abstract]

Revenue, Receivables and Contract Assets and Liabilities

Revenue, Receivables and Contract Assets and Liabilities

Revenue

The following table disaggregates total revenue by timing of recognition (see Note 12 for disclosure of revenue by segment):

	Three Months Ended
(In thousands)	May 29, 2021		May 30, 2020
Recognized at shipment	$	140,283	$	116,163
Recognized over time	185,723		172,932
Total	$	326,006	$	289,095

Receivables

Receivables reflected in the financial statements represent the net amount expected to be collected. An allowance for credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor, recent payment history, current and forecast economic conditions and other relevant factors. Upon billing, aging of receivables is monitored until collection. An account is considered current when it is within agreed upon payment terms. An account is written off when it is determined that the asset is no longer collectible. 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)	May 29, 2021		February 27, 2021
Trade accounts	$	123,501	$	120,534
Construction contracts	2,181		12,163
Contract retainage	49,006		45,167
Total receivables	174,688		177,864
Less: allowance for credit losses	2,255		1,947
Net receivables	$	172,433	$	175,917

The following table summarizes the activity in the allowance for credit losses:

(In thousands)	May 29, 2021		February 27, 2021
Beginning balance	$	1,947	$	2,469
Additions charged to costs and expenses	332		389
Deductions from allowance, net of recoveries	(69)		(887)
Other changes (1)	45		(24)
Ending balance	$	2,255	$	1,947
(1) Result of foreign currency effects

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)	May 29, 2021		February 27, 2021
Contract assets	$	77,396	$	74,664
Contract liabilities	18,955		25,000

The change in contract assets and contract liabilities was mainly due to timing of project activity within our businesses that operate under long-term contracts.

Other contract-related disclosures	Three Months Ended
(In thousands)	May 29, 2021		May 30, 2020
Revenue recognized related to contract liabilities from prior year-end	$	14,100	$	13,011
Revenue recognized related to prior satisfaction of performance obligations	2,164		2,877

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 May 29, 2021, the transaction price associated with unsatisfied performance obligations was approximately $855.0 million. The performance obligations are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:

(In thousands)	May 29, 2021
Within one year	$	464,123
Within two years	306,360
Beyond	84,478
Total	$	854,961