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Revenue Recognition
 3 Months Ended
Nov. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 2 – Revenue Recognition

 

Disaggregation of Revenue

 

A breakout by segment of revenue recognized over time versus at a point in time for the three months ended November 30, 2023 and 2022 is as follows:

 

 

Three months ended

 

 

 

November 30, 2023

 

($ in thousands)

 

Irrigation

 

 

Infrastructure

 

 

Total

 

Point in time

 

$

131,201

 

 

$

12,951

 

 

$

144,152

 

Over time

 

 

8,967

 

 

 

1,231

 

 

 

10,198

 

Revenue from the contracts with customers

 

 

140,168

 

 

 

14,182

 

 

 

154,350

 

 

 

 

 

 

 

 

 

 

 

Lease revenue

 

 

—

 

 

 

7,008

 

 

 

7,008

 

Total operating revenues

 

$

140,168

 

 

$

21,190

 

 

$

161,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

November 30, 2022

 

($ in thousands)

 

Irrigation

 

 

Infrastructure

 

 

Total

 

Point in time

 

$

145,716

 

 

$

20,230

 

 

$

165,946

 

Over time

 

 

6,367

 

 

 

1,454

 

 

 

7,821

 

Revenue from the contracts with customers

 

 

152,083

 

 

 

21,684

 

 

 

173,767

 

 

 

 

 

 

 

 

 

 

 

Lease revenue

 

 

—

 

 

 

2,392

 

 

 

2,392

 

Total operating revenues

 

$

152,083

 

 

$

24,076

 

 

$

176,159

 

 

Further disaggregation of revenue is disclosed in the Note 14 – Industry Segment Information.

 

For contracts with an initial length longer than 12 months, the unsatisfied performance obligations were $1.4 million at November 30, 2023.

 

Contract Balances

 

Contract assets arise when recorded revenue for a contract exceeds the amounts billed under the terms of such contract. Contract liabilities arise when billed amounts exceed revenue recorded. Amounts are billable to customers upon various measures of performance, including achievement of certain milestones and completion of specified units of completion of the contract. At November 30, 2023, November 30, 2022, and August 31, 2023, contract assets amounted to $0.7 million, $1.1 million, and $1.3 million, respectively. These amounts are included within other current assets on the condensed consolidated balance sheets.

Contract liabilities include advance payments from customers and billings in excess of delivery of performance obligations. At November 30, 2023, November 30, 2022, and August 31, 2023, contract liabilities amounted to $21.7 million, $27.5 million, and $20.5 million, respectively. Contract liabilities are included within other current liabilities on the condensed consolidated balance sheets. During the Company’s three months ended November 30, 2023 and 2022, the Company recognized $7.9 million and $17.9 million of revenue that were included in the liabilities as of August 31, 2023 and 2022, respectively. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter.