XML 21 R13.htm IDEA: XBRL DOCUMENT v3.25.2
Revenue Recognition
 9 Months Ended
May 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 2 – 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 contract balances are as follows:

(in millions)

 

Balance sheet classification

 

May 31,
2025

 

 

August 31,
2024

 

 

$
Change

 

Contract assets

 

Accounts receivable, net

 

$

6.8

 

 

$

6.7

 

 

$

0.1

 

Contract assets

 

Inventories

 

$

10.8

 

 

$

10.8

 

 

$

—

 

Contract liabilities (1)

 

Deferred revenue

 

$

25.8

 

 

$

54.6

 

 

$

(28.8

)

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

For the three and nine months ended May 31, 2025, the Company recognized $7.1 million and $34.0 million, respectively, of revenue that was included in Contract liabilities as of August 31, 2024.

Performance obligations

As of May 31, 2025, the Company has entered into contracts with customers for which revenue has not yet been recognized. The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods.

(in millions)

 

May 31,
2025

 

Revenue type:

 

 

 

Manufacturing – Railcar sales

 

$

1,660.1

 

Fleet management

 

$

141.9

 

Other

 

$

12.0

 

Based on current production and delivery schedules and existing contracts, approximately $1.3 billion of Manufacturing – Railcar sales are expected to be recognized through 2026 while the remaining amount is expected to be recognized in 2027 and beyond. Fleet management includes management and maintenance service contracts of which approximately $85.8 million is expected to be recognized through 2029 and the remaining amount is expected to be recognized through 2037. Other performance obligations are expected to be recognized through 2026.