Revenue, Receivables and Contract Assets and Liabilities

3 Months Ended

May 27, 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 12 for disclosure of revenue by segment):

	Three Months Ended
(In thousands)	May 27, 2023		May 28, 2022
Recognized at shipment	$	152,655	$	161,164
Recognized over time	209,058		195,471
Total	$	361,713	$	356,635

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.

(In thousands)	May 27, 2023		February 25, 2023
Trade accounts	$	139,204	$	140,732
Construction contracts	74,685		58,331
Total receivables	213,889		199,063
Less: allowance for credit losses	3,093		1,796
Receivables, net	$	210,796	$	197,267

The following table summarizes the activity in the allowance for credit losses for the three-month period ended:

(In thousands)	May 27, 2023
Beginning balance	$	1,796
Additions charged to costs and expenses	1,376
Deductions from allowance, net of recoveries	(82)
Foreign currency effects	3
Ending balance	$	3,093

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. 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 to us from the customer. Contract liabilities consist of billings in excess of costs and earnings and other deferred revenue on contracts.

The time period between when performance obligations are complete and when payment is due is not significant. In certain parts of our business 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 at which point amounts are released to us from the customer.

The changes in contract assets and contract liabilities were mainly due to timing of project activity within our businesses that operate under long-term contracts.

Other contract-related disclosures	Three Months Ended
(In thousands)	May 27, 2023		May 28, 2022
Revenue recognized related to contract liabilities from prior year-end	$	22,745	$	35,926
Revenue recognized related to prior satisfaction of performance obligations	427		175

Some of our contracts have an expected duration of longer than a year, with performance obligations extending over that time frame. Generally, these contracts are found in our businesses that typically operate with long-term contracts, which recognize revenue over time. The transaction prices associated with unsatisfied performance obligations at May 27, 2023 are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:

(In thousands)	May 27, 2023
Within one year	$	459,780
Within two years	262,496
Beyond two years	81,710
Total	$	803,986