REVENUE RECOGNITION

9 Months Ended

May 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

NOTE 4. REVENUE RECOGNITION

The majority of the Company's revenue 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. See Note 13, Segment Information, for further information about disaggregated revenue by the Company's major product lines.

Certain revenue from the Company's downstream products in the North America Steel Group segment is not recognized at a point in time. Revenue resulting from sales of fabricated rebar in the North America Steel Group segment is recognized over time, as discussed below. Revenue resulting from sales of steel fence posts and other downstream products in the North America Steel Group segment is recognized equal to billing under an available practical expedient.

Each of the North America Steel Group segment's fabricated rebar contracts represent a single performance obligation. Revenue from certain fabricated rebar contracts for which the Company provides fabricated product and installation services is recognized over time using an input measure. These contracts represented 7% of net sales in the North America Steel Group segment during both the three months ended May 31, 2024 and 2023, and 8% of net sales in the North America Steel Group segment during both the nine months ended May 31, 2024 and 2023. Revenue from fabricated rebar contracts for which the Company does not provide installation services is recognized over time using an output measure. These contracts represented 10% of net sales in the North America Steel Group segment in each of the three and nine months ended May 31, 2024, and 11% and 12% of net sales in the North America Steel Group segment in the three and nine months ended May 31, 2023, respectively.

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

(in thousands)	May 31, 2024		August 31, 2023
Contract assets (included in accounts receivable)	$	59,401	$	67,641
Contract liabilities (included in accrued expenses and other payables)	31,496		28,377

The amount of revenue reclassified from August 31, 2023 contract liabilities during the nine months ended May 31, 2024 was approximately $25.2 million.

Remaining Performance Obligations

As of May 31, 2024, revenue totaling $1.0 billion has been allocated to remaining performance obligations in the North America Steel Group segment related to contracts for which revenue is recognized using an input or output measure. Of this amount, the Company estimates that approximately 78% of the remaining performance obligations will be recognized in the twelve months following May 31, 2024, and the remainder will be recognized during the subsequent twelve months. The duration of all other contracts in the North America Steel Group, Europe Steel Group and Emerging Businesses Group segments are typically less than one year.