XML 28 R17.htm IDEA: XBRL DOCUMENT v3.21.1
Revenue Recognition
 6 Months Ended
Feb. 28, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
We recognize revenue when we transfer control of goods and services to our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for goods and services and is recognized net of allowances for rebates, sales incentives, product returns, and discounts to customers. Further details regarding revenue recognition are included within the Revenue Recognition footnote of the Notes to Consolidated Financial Statements within our Form 10-K.
Contract Balances
Our rights related to collections from customers are unconditional and are reflected within Accounts receivable on the Consolidated Balance Sheets. We do not have any other significant contract assets. Contract liabilities arise when we receive cash or an unconditional right to collect cash prior to the transfer of control of goods or services.
The amount of transaction price from contracts with customers allocated to our contract liabilities consists of the following as of the periods presented (in millions):
February 28, 2021August 31, 2020
Current deferred revenues$7.3 $5.4 
Non-current deferred revenues55.2 53.6 
Current deferred revenues primarily consist of software licenses as well as professional service and sales-type warranty fees collected prior to performing the related service. Current deferred revenues are included within Other current liabilities on the Consolidated Balance Sheets. These services are expected to be performed within one year. Non-current deferred revenues primarily consist of long-term service-type warranties, which are typically recognized ratably as revenue between five and ten years from the date of sale, and are included within Other long-term liabilities on the Consolidated Balance Sheets. Revenue recognized from beginning balances of contract liabilities during the six months ended February 28, 2021 totaled $4.3 million.
Unsatisfied performance obligations as of February 28, 2021 that do not represent contract liabilities consist primarily of orders for physical goods that have not yet been shipped, which are typically shipped within a few weeks of order receipt.
Disaggregated Revenues
Our lighting and building management solutions are sold primarily through independent sales agents who cover specific geographic areas and market channels, by internal sales representatives, through consumer retail channels, and directly to large corporate accounts. The following table shows revenue from contracts with customers by sales channel for the periods presented (in millions):
Three Months EndedSix Months Ended
February 28, 2021February 29, 2020February 28, 2021February 29, 2020
Independent sales network$592.7 $596.9 $1,192.2 $1,214.9 
Direct sales network73.9 73.3 150.2 157.6 
Retail sales43.0 56.8 98.0 110.2 
Corporate accounts26.7 54.8 50.7 88.3 
Other40.3 42.4 77.5 87.9 
Total $776.6 $824.2 $1,568.6 $1,658.9