REVENUE RECOGNITION

12 Months Ended

Aug. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

NOTE 5. REVENUE RECOGNITION

Revenue from Contracts with Customers

Each fabricated product contract sold by the North America segment represents a single performance obligation. Revenue from contracts where the Company provides fabricated product and installation services is recognized over time using an input measure and these contracts represented approximately 12% of net sales in the North America segment in 2020 and 2019. Revenue from contracts where the Company does not provide installation services is recognized over time using an output measure and these contracts represented approximately 11% and 9% of net sales in the North America segment in 2020 and 2019, respectively. The remaining 77% and 79% of net sales in the North America segment were recognized at a point in time concurrent with the transfer of control or as amounts were billed to the customer under an available practical expedient in 2020 and 2019, respectively.

The following table provides information about assets and liabilities from contracts with customers.

	Year Ended August 31,
(in thousands)	2020		2019
Contract assets (included in accounts receivable)	$	53,275	$	103,805
Contract liabilities (included in accrued expenses and other payables)	25,450		37,165

The decrease in contract assets was primarily due to timing of invoicing in 2020 compared to 2019. The entire contract liability as of August 31, 2019 was recognized in 2020.

Remaining Performance Obligations

As of August 31, 2020, a total of $723.4 million has been allocated to remaining performance obligations in the North America segment, related to those contracts where revenue is recognized using an input or output measure. Of this amount, the Company estimates the remaining performance obligations will be recognized as revenue as follows: 40% in the first twelve months, 48% in the following twelve months, and 12% thereafter. The duration of all other contracts in the North America and Europe segments are typically less than one year.