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Revenue Recognition
 12 Months Ended
Aug. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 3 – Revenue Recognition

Contract balances

Contract assets primarily consist of work completed for railcar maintenance but not billed at the reporting date. Contract liabilities primarily consist of customer prepayments for new railcars and other management-type services, for which the Company has not yet satisfied the related performance obligations.

The opening and closing balances of the Company’s contract balances are as follows:

(In millions)

 

Balance sheet classification

 

August 31, 2024

 

 

August 31, 2023

 

 

$ change

 

Contract assets

 

Accounts receivable, net

 

$

6.7

 

 

$

0.1

 

 

$

6.6

 

Contract assets

 

Inventories

 

$

10.8

 

 

$

7.0

 

 

$

3.8

 

Contract liabilities 1

 

Deferred revenue

 

$

54.6

 

 

$

43.3

 

 

$

11.3

 

1 Contract liabilities balance includes deferred revenue within the scope of Revenue from Contracts with Customers (Topic 606).

For the years ended August 31, 2024 and 2023 the Company recognized $22.9 million and $13.0 million of revenue, respectively, that was included in Contract liabilities as of August 31, 2023 and 2022.

Performance obligations

As of August 31, 2024, the Company has entered into contracts with customers for which revenue has not yet been recognized. The following table outlines estimated transaction prices related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods.

(In millions)

 

August 31, 2024

 

Revenue type:

 

 

 

Manufacturing – Railcar sales

 

$

2,678.7

 

Manufacturing – Sustainable conversions

 

$

50.4

 

Services

 

$

133.7

 

Other

 

$

14.9

 

Based on current production and delivery schedules and existing contracts, approximately $1.9 billion of the Railcar sales amount is expected to be recognized in 2025 while the remaining amount is expected to be recognized in 2026 and beyond.

Sustainable conversions represent orders to modify existing railcars and are expected to be recognized in 2025.

Services includes management and maintenance services of which approximately 61% are expected to be performed through 2029 and the remaining amount through 2037.