Revenue and Customer Contract Balances

3 Months Ended

Nov. 26, 2021

Revenue From Contract With Customer [Abstract]

Revenue and Customer Contract Balances

Revenue and Customer Contract Balances

We disaggregate revenue by segment and geography and by product and service revenue. See “Segment and Other Information.”

Net Sales and Gross Billings

Net sales by products and services and gross amounts billed for services, including those services in which we act as an agent for our customers, were as follows:

Three months ended	November 26, 2021		November 27, 2020
Net sales:
Products	$	456,425	$	285,202
Services		13,519		6,495
	$	469,944	$	291,697
Gross billings in connection with services:
Services	$	13,519	$	6,495
Cost of materials (1)		336,275		131,524
	$	349,794	$	138,019

(1) Included in gross billings in connection with services are amounts billed to customers for the cost of materials procured in an agent capacity in connection with our procurement, logistics, inventory management, temporary warehousing, kitting and packaging services. While we take title to inventory under such arrangements, control of such inventory does not transfer to us as we do not, at any point, have the ability to direct the use, and thereby obtain the benefits of, the inventory.

Customer Contract Balances

As of	November 26, 2021		August 27, 2021
Contract assets (1)	$	154	$	4,247
Contract liabilities: (2)
Deferred revenue	$	14,888	$	19,271
Customer advances		15,952		15,835
	$	30,840	$	35,106

(1) Contract assets are included in other current assets.

(2) Contract liabilities are included in other current liabilities and noncurrent liabilities based on the timing of when our customer is expected to take control of the asset or receive the benefit of the service.

Deferred revenue related to amounts received from customers in advance of satisfying performance obligations. As of November 26, 2021, we expect to recognize revenue of $10.5 million of the balance of $14.9 million in the next 12 months and the remaining amount thereafter. In the first quarter of 2022, we recognized revenue of $5.8 million from satisfying performance obligations related to amounts included in deferred revenue as of August 27, 2021. Customer advances represent amounts received from customers for advance payments to secure product and services within the next 12 months. In the first quarter of 2022, we recognized revenue of $1.3 million from satisfying performance obligations related to amounts included in customer advances as of August 27, 2021.

As of November 26, 2021 and August 27, 2021, other current liabilities included $25.1 million and $24.9 million, respectively, for estimates of consideration payable to customers, including estimates for pricing adjustments and returns.