Revenue, Receivables and Contract Assets and Liabilities

9 Months Ended

Nov. 29, 2025

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				Nine Months Ended
(In thousands)	November 29, 2025		November 30, 2024		November 29, 2025		November 30, 2024
Recognized at shipment	$	163,008	$	150,704	$	492,845	$	427,945
Recognized over time (input method)	119,570		125,451		356,927		360,815
Recognized over time (output method)	65,985		65,189		203,607		226,540
Total	$	348,563	$	341,344	$	1,053,379	$	1,015,300

Revenue at shipment is recognized at the time products are shipped from our manufacturing facilities, which is when control is transferred to our customer.

We also recognize revenue over time using both the input method and output method. The contracts for the businesses that recognize revenue following an over-time input method have a single, bundled performance obligation, as these businesses

generally provide interrelated products and services and integrate these products and services into a combined output specified by the customer. The customer obtains control of this combined output, generally integrated window systems or installed window and curtainwall systems, over time. We measure progress on these contracts by comparing total costs incurred to-date to the total estimated costs for the contract at completion, and record that proportion of the total contract price as revenue in the period. Contract costs include materials, labor and other direct costs related to contract performance. We believe this method of recognizing revenue is consistent with our progress in satisfying our contract obligations.

For revenue recognized following an over-time output method, the customer is considered to have control over the products at the time of production, as the products are highly customized with no alternative use, and we have an enforceable right to payment for performance completed over the production period. We believe this over-time output method of recognizing revenue reasonably depicts the fulfillment of our performance obligations under our contracts.

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)	November 29, 2025		March 1, 2025
Trade accounts	$	111,819	$	117,533
Construction contracts	66,310		70,724
Total receivables	178,129		188,257
Less: allowance for credit losses	1,541		2,667
Receivables, net	$	176,588	$	185,590

The following table summarizes the activity in the allowance for credit losses for the nine months ended November 29, 2025:

(In thousands)	November 29, 2025
Beginning balance	$	2,667
Credits against costs and expenses	(571)
Deductions from allowance, net of recoveries	(581)
Other adjustments	26
Ending balance	$	1,541

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.

(In thousands)	November 29, 2025		March 1, 2025
Contract assets	$	66,645	$	71,842
Contract liabilities	43,086		35,193

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				Nine Months Ended
(In thousands)	November 29, 2025		November 30, 2024		November 29, 2025		November 30, 2024
Revenue recognized related to contract liabilities from prior year-end	$	700	$	399	$	29,029	$	30,760
Revenue recognized related to prior satisfaction of performance obligations	1,957		4,129		4,366		12,295

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 November 29, 2025, are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:

(In thousands)	November 29, 2025
Within one year	$	530,201
Between one and two years	283,130
Beyond two years	79,485
Total	$	892,816

Due to the nature of the work required under these long-term contracts, the estimation of total revenue and costs of sales is subject to many variables and requires significant judgment. We estimate variable consideration at the most likely amount to which we expect to be entitled. Our final cost of sales estimates are based largely on our assessments of anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. Changes in estimated revenue, cost of sales and the related effect on operating income are recognized using a cumulative catch-up adjustment, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a long-term contracts percentage of completion. When the current estimates of total revenues and costs at completion for a long-term contract indicate a loss, a provision for the entire loss on the long-term contract is recognized.

The net cumulative catch-up adjustments on our longer-term contracts for changes in estimates had the following effect on the respective periods shown:

(in thousands, except earnings per share data)	Three Months Ended				Nine Months Ended
	November 29, 2025		November 30, 2024		November 29, 2025		November 30, 2024
Operating income	$	3,976	$	5,801	$	4,775	$	12,905
Earnings per share:
Basic	0.14		0.20		0.17		0.45
Diluted	0.14		0.20		0.17		0.44