Revenue, Receivables and Contract Assets and Liabilities

3 Months Ended

Jun. 01, 2024

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)	June 1, 2024		May 27, 2023
Recognized at shipment	$	136,722	$	152,655
Recognized over time (input method)	116,681		123,381
Recognized over time (output method)	78,113		85,677
Total	$	331,516	$	361,713

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 forecasted 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)	June 1, 2024		March 2, 2024
Trade accounts	$	112,266	$	115,061
Construction contracts	73,720		61,879
Total receivables	185,986		176,940
Less: allowance for credit losses	2,716		3,383
Receivables, net	$	183,270	$	173,557

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

(In thousands)	June 1, 2024
Beginning balance	$	3,383
Reductions to allowance of credit losses	(659)
Foreign currency effects	(8)
Ending balance	$	2,716

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 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.

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)	June 1, 2024		May 27, 2023
Revenue recognized related to contract liabilities from prior year-end	$	26,530	$	22,745
Revenue recognized related to prior satisfaction of performance obligations	3,298		427

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 June 1, 2024 are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:

(In thousands)	June 1, 2024
Within one year	$	608,606
Between one and two years	352,707
Beyond two years	109,831
Total	$	1,071,144