Revenue, Receivables and Contract Assets and Liabilities

12 Months Ended

Feb. 25, 2023

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 15 for disclosure of revenue by segment):

(In thousands)	February 25, 2023		February 26, 2022		February 27, 2021
Recognized at shipment	$	649,792	$	551,783	$	504,583
Recognized over time	790,904		762,194		726,191
Total	$	1,440,696	$	1,313,977	$	1,230,774

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)	2023		2022
Trade accounts	$	140,732	$	129,085
Construction contracts	58,331		12,857
Contract retainage	25,834		28,782
Total receivables	224,897		170,724
Less: allowance for credit losses	1,796		2,132
Receivables, net	$	223,101	$	168,592

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

(In thousands)	2023		2022
Beginning balance	$	2,132	$	1,947
Additions charged to costs and expenses	394		729
Deductions from allowance, net of recoveries	(686)		(514)
Other deductions	(44)		(30)
Ending balance	$	1,796	$	2,132

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)	February 25, 2023		February 26, 2022
Contract assets	$	59,403	$	59,185
Contract liabilities	28,011		11,373

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

Other contract-related disclosures

(In thousands)	February 25, 2023		February 26, 2022
Revenue recognized related to contract liabilities from prior year-end	$	37,594	$	19,747
Revenue recognized related to prior satisfaction of performance obligations	16,612		22,461

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 February 25, 2023, the transaction price associated with unsatisfied performance obligations was approximately $835.8 million. The performance obligations are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:

(In thousands)	February 25, 2023
Within one year	$	487,217
Within two years	263,609
Beyond two years	84,990
Total	$	835,816