Revenue, Receivables and Contract Assets and Liabilities

12 Months Ended

Feb. 27, 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 15 for disclosure of revenue by segment):

(In thousands)	February 27, 2021		February 29, 2020		March 2, 2019
Recognized at shipment	$	504,583	$	610,049	$	623,357
Recognized over time	726,191		777,390		779,280
Total	$	1,230,774	$	1,387,439	$	1,402,637

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)	2021		2020
Trade accounts	$	120,534	$	141,126
Construction contracts	12,163		20,808
Contract retainage	45,167		37,341
Total receivables	177,864		199,275
Less: allowance for credit losses	1,947		2,469
Receivables, net	$	175,917	$	196,806

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

(In thousands)	2021		2020
Beginning balance	$	2,469	$	4,372
Additions charged to costs and expenses	389		1,192
Deductions from allowance, net of recoveries	(887)		(3,085)
Other deductions	(24)		(10)
Ending balance	$	1,947	$	2,469

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 27, 2021		February 29, 2020
Contract assets	$	74,664	$	110,923
Contract liabilities	25,000		35,954

The decrease in contract assets was due to a reduction in costs and earnings in excess of billings, which is driven by the settlement of matters related to a legacy EFCO project, as well as the timing of projects. The change in contract liabilities was due to timing of project activity from businesses that operate under long-term contracts.

Other contract-related disclosures

(In thousands)	February 27, 2021		February 29, 2020
Revenue recognized related to contract liabilities from prior year-end	$	16,341	$	23,221
Revenue recognized related to prior satisfaction of performance obligations	19,705		15,641

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 27, 2021, the transaction price associated with unsatisfied performance obligations was approximately $857.5 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 27, 2021
Within one year	$	472,728
Within two years	316,847
Beyond	67,946
Total	$	857,521