Revenue, Receivables and Contract Assets and Liabilities

9 Months Ended

Nov. 26, 2022

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				Nine Months Ended
(In thousands)	November 26, 2022		November 27, 2021		November 26, 2022		November 27, 2021
Recognized at shipment	$	168,593	$	141,826	$	504,450	$	419,893
Recognized over time	199,254		192,391		592,141		566,127
Total	$	367,847	$	334,217	$	1,096,591	$	986,020

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 to us from the customer.

(In thousands)	November 26, 2022		February 26, 2022
Trade accounts	$	142,591	$	129,085
Construction contracts	50,423		12,857
Contract retainage	31,395		28,782
Total receivables	224,409		170,724
Less: allowance for credit losses	1,855		2,132
Receivables, net	$	222,554	$	168,592

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

(In thousands)	November 26, 2022		February 26, 2022
Beginning balance	$	2,132	$	1,947
Additions charged to costs and expenses	20		729
Deductions from allowance, net of recoveries	(279)		(514)
Other changes (1)	(18)		(30)
Ending balance	$	1,855	$	2,132
(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 at which point amounts are released to us from the customer.

(In thousands)	November 26, 2022		February 26, 2022
Contract assets	$	64,359	$	59,185
Contract liabilities	31,657		11,373

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

Other contract-related disclosures	Three Months Ended				Nine Months Ended
(In thousands)	November 26, 2022		November 27, 2021		November 26, 2022		November 27, 2021
Revenue recognized related to contract liabilities from prior year-end	$	3,473	$	1,687	$	36,630	$	18,266
Revenue recognized related to prior satisfaction of performance obligations	4,640		5,051		9,586		12,568

Some of our contracts have an expected duration of longer than a year, with performance obligations extending over that time frame. Generally, these contracts are found in our businesses that typically operate with long-term contracts, which recognize revenue over time. The transaction prices associated with unsatisfied performance obligations at November 26, 2022 are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:

(In thousands)	November 26, 2022
Within one year	$	493,289
Within two years	280,427
Beyond two years	87,660
Total	$	861,376