Revenue, Receivables and Contract Assets and Liabilities

12 Months Ended

Feb. 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 15 for disclosure of revenue by segment):

(In thousands)	February 26, 2022		February 27, 2021		February 29, 2020
Recognized at shipment	$	551,252	$	504,583	$	610,049
Recognized over time	762,725		726,191		777,390
Total	$	1,313,977	$	1,230,774	$	1,387,439

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)	2022		2021
Trade accounts	$	129,085	$	120,534
Construction contracts	12,857		12,163
Contract retainage	28,782		45,167
Total receivables	170,724		177,864
Less: allowance for credit losses	2,132		1,947
Receivables, net	$	168,592	$	175,917

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

(In thousands)	2022		2021
Beginning balance	$	1,947	$	2,469
Additions charged to costs and expenses	729		389
Deductions from allowance, net of recoveries	(514)		(887)
Other deductions	(30)		(24)
Ending balance	$	2,132	$	1,947

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 26, 2022		February 27, 2021
Contract assets	$	59,185	$	74,664
Contract liabilities	11,373		25,000

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 26, 2022		February 27, 2021
Revenue recognized related to contract liabilities from prior year-end	$	19,747	$	16,341
Revenue recognized related to prior satisfaction of performance obligations	22,461		19,705

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 26, 2022, the transaction price associated with unsatisfied performance obligations was approximately $789.8 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 26, 2022
Within one year	$	518,213
Within two years	213,531
Beyond two years	58,080
Total	$	789,824