REVENUE RECOGNITION

12 Months Ended

Aug. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

NOTE 4. REVENUE RECOGNITION

Revenue from Contracts with Customers

Revenue related to raw materials, steel products and construction-related solutions in the North America and Europe segments and downstream products in the Europe segment is recognized at a point in time concurrent with the transfer of control, which usually occurs, depending on shipping terms, upon shipment or customer receipt. Revenue related to steel fence posts and other downstream products in the North America segment not discussed below is recognized equal to billing under an available practical expedient. See Note 19, Operating Segments, for further information about disaggregated revenue by our major product lines.

Each fabricated rebar contract sold by the North America segment represents a single performance obligation. Revenue from contracts where the Company provides fabricated rebar and installation services is recognized over time using an input measure, and these contracts represented 7%, 8% and 10% of net sales in the North America segment in 2023, 2022 and 2021, respectively. Revenue from fabricated rebar contracts where the Company does not provide installation services is recognized over time using an output measure, and these contracts represented 11% of net sales in the North America segment in 2023, and 9% in 2022 and 2021.

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

(in thousands)	August 31, 2023		August 31, 2022
Contract assets (included in accounts receivable)	$	67,641	$	73,037
Contract liabilities (included in accrued expenses and other payables)	28,377		27,567

The entire contract liability as of August 31, 2022 was recognized in 2023.

Remaining Performance Obligations

As of August 31, 2023, revenue totaling $920.9 million has been allocated to remaining performance obligations in the North America segment related to contracts where revenue is recognized using an input or output measure. Of this amount, the Company estimates that approximately 80% of the remaining performance obligations will be recognized during 2024 and the remainder will be recognized during 2025. The duration of all other contracts in the North America and Europe segments are typically less than one year.