Revenue Recognition

3 Months Ended

Jul. 05, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The Company's revenues by reportable segments are presented in Note 17.

Service revenues related to the work performed for the Company’s customers by its maintenance technicians generally represent a separate and distinct performance obligation. Control for these services passes to the customer as the services are performed. Service revenues for the first quarter of fiscal 2021 and 2020 amounted to $68,758 and $79,147, respectively.

A small portion of the Company's customer arrangements obligate the Company to create customized products for its customers that require the bundling of both products and services into a single performance obligation because the individual products and services that are required to fulfill the customer requirements do not meet the definition for a distinct performance obligation. These customized products generally have no alternative use to the Company and the terms and conditions of these arrangements give the Company the enforceable right to payment for performance completed to date, including a reasonable profit margin. For these arrangements, control transfers over time and the Company measures progress towards completion by selecting the input or output method that best depicts the transfer of control of the underlying goods and services to the customer for each respective arrangement. Methods used by the Company to measure progress toward completion include labor

hours, costs incurred and units of production. Revenues recognized over time for the first quarter of fiscal 2021 and 2020 amounted to $36,102 and $41,495, respectively.

On July 5, 2020, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $92,632, of which, the Company estimates that approximately $66,604 will be recognized as revenue in fiscal 2021, $24,149 in fiscal 2022, $1,808 in fiscal 2023, $18 in fiscal 2024 and $53 in fiscal 2025.

Any payments that are received from a customer in advance, prior to the satisfaction of a related performance obligation and billings in excess of revenue recognized, are deferred and treated as a contract liability. Advance payments and billings in excess of revenue recognized are classified as current or non-current based on the timing of when recognition of revenue is expected. As of July 5, 2020, the current and non-current portion of contract liabilities were $14,941 and $8,314, respectively. As of March 31, 2020, the current and non-current portion of contract liabilities were $17,342 and $8,356, respectively. Revenues recognized during the first quarter of fiscal 2021 and 2020 that were included in the contract liability at the beginning of the year, amounted to $3,466 and $4,467, respectively.

Amounts representing work completed and not billed to customers represent contract assets and were $44,792 and $39,048 as of July 5, 2020 and March 31, 2020, respectively.

The Company uses historic customer product return data as a basis of estimation for customer returns and records the reduction of sales at the time revenue is recognized. At July 5, 2020, the right of return asset related to the value of inventory anticipated to be returned from customers was $4,265 and refund liability representing amounts estimated to be refunded to customers was $6,970.