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Revenue Recognition
3 Months Ended
Nov. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 2 – Revenue Recognition

 

Disaggregation of Revenue

 

A breakout by segment of revenue recognized over time versus at a point in time for the three months ended November 30, 2022 and 2021 is as follows:

 

 

 

Three months ended

 

 

 

November 30, 2022

 

($ in thousands)

 

Irrigation

 

 

Infrastructure

 

 

Total

 

Point in time

 

$

145,716

 

 

$

20,230

 

 

$

165,946

 

Over time

 

 

6,367

 

 

 

1,454

 

 

 

7,821

 

Revenue from the contracts with customers

 

 

152,083

 

 

 

21,684

 

 

 

173,767

 

 

 

 

 

 

 

 

 

 

 

Lease revenue

 

 

 

 

 

2,392

 

 

 

2,392

 

Total operating revenues

 

$

152,083

 

 

$

24,076

 

 

$

176,159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

November 30, 2021

 

($ in thousands)

 

Irrigation

 

 

Infrastructure

 

 

Total

 

Point in time

 

$

139,400

 

 

$

14,712

 

 

$

154,112

 

Over time

 

 

6,509

 

 

 

742

 

 

 

7,251

 

Revenue from the contracts with customers

 

 

145,909

 

 

 

15,454

 

 

 

161,363

 

 

 

 

 

 

 

 

 

 

 

Lease revenue

 

 

 

 

 

4,789

 

 

 

4,789

 

Total operating revenues

 

$

145,909

 

 

$

20,243

 

 

$

166,152

 

 

Further disaggregation of revenue is disclosed in the Note 13 – Industry Segment Information.

 

For contracts with an initial length longer than twelve months, the unsatisfied performance obligations were $1.8 million at November 30, 2022.

 

Contract Balances

 

Contract assets arise when recorded revenue for a contract exceeds the amounts billed under the terms of such contract. Contract liabilities arise when billed amounts exceed revenue recorded. Amounts are billable to customers upon various measures of performance, including achievement of certain milestones and completion of specified units of completion of the contract. At November 30, 2022, November 30, 2021, and August 31, 2022, contract assets amounted to $1.1 million, $1.2 million, and $0.9 million, respectively. These amounts are included within other current assets on the condensed consolidated balance sheets.

 

Contract liabilities include advance payments from customers and billings in excess of delivery of performance obligations. At November 30, 2022, November 30, 2021, and August 31, 2022, contract liabilities amounted to $27.5 million, $41.1 million, and $30.6 million, respectively. Contract liabilities are included within other current liabilities on the condensed consolidated balance sheets. During the Company’s three months ended November 30, 2022 and 2021, the Company recognized $17.9 million and $12.7 million of revenue that were included in the liabilities as of August 31, 2022 and 2021, respectively. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter.