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Revenue Recognition
6 Months Ended
Feb. 28, 2023
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 and six months ended February 28, 2023 and 2022 is as follows:

 

 

Three months ended

 

 

Three months ended

 

 

 

February 28, 2023

 

 

February 28, 2022

 

($ in thousands)

 

Irrigation

 

 

Infrastructure

 

 

Total

 

 

Irrigation

 

 

Infrastructure

 

 

Total

 

Point in time

 

$

141,528

 

 

$

14,697

 

 

$

156,225

 

 

$

175,251

 

 

$

16,010

 

 

$

191,261

 

Over time

 

 

6,248

 

 

 

1,657

 

 

 

7,905

 

 

 

5,508

 

 

 

1,467

 

 

 

6,975

 

Revenue from the contracts with customers

 

 

147,776

 

 

 

16,354

 

 

 

164,130

 

 

 

180,759

 

 

 

17,477

 

 

 

198,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease revenue

 

 

 

 

 

2,111

 

 

 

2,111

 

 

 

 

 

 

1,901

 

 

 

1,901

 

Total operating revenues

 

$

147,776

 

 

$

18,465

 

 

$

166,241

 

 

$

180,759

 

 

$

19,378

 

 

$

200,137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

 

Six months ended

 

 

 

February 28, 2023

 

 

February 28, 2022

 

($ in thousands)

 

Irrigation

 

 

Infrastructure

 

 

Total

 

 

Irrigation

 

 

Infrastructure

 

 

Total

 

Point in time

 

$

287,245

 

 

$

34,927

 

 

$

322,172

 

 

$

315,383

 

 

$

30,723

 

 

$

346,106

 

Over time

 

 

12,614

 

 

 

3,111

 

 

 

15,725

 

 

 

11,284

 

 

 

2,209

 

 

 

13,493

 

Revenue from the contracts with customers

 

 

299,859

 

 

 

38,038

 

 

 

337,897

 

 

 

326,667

 

 

 

32,932

 

 

 

359,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease revenue

 

 

 

 

 

4,503

 

 

 

4,503

 

 

 

 

 

 

6,689

 

 

 

6,689

 

Total operating revenues

 

$

299,859

 

 

$

42,541

 

 

$

342,400

 

 

$

326,667

 

 

$

39,621

 

 

$

366,288

 

 

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 February 28, 2023.

 

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 February 28, 2023, February 28, 2022, and August 31, 2022, contract assets amounted to $1.1 million, $1.1 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 February 28, 2023, February 28, 2022, and August 31, 2022, contract liabilities amounted to $17.9 million, $39.7 million, and $30.6 million, respectively. Contract liabilities are included within other current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets. During the Company’s six months ended February 28, 2023 and 2022, the Company recognized $25.0 million and $25.6 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.