XML 45 R11.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Revenue Recognition
 3 Months Ended
Nov. 30, 2019
Revenue Recognition
Note 2 – Revenue Recognition
Contract balances
Contract assets primarily consist of unbilled receivables related to marine vessel construction and repair services, for which the respective contracts do not yet permit billing at the reporting date. Contract liabilities primarily consist of customer prepayments for manufacturing, maintenance, and other management-type services, for which the Company has not yet satisfied the related performance obligations.
The opening and closing balances of the Company’s contract balances are as follows:
(in thousands)
 
Balance sheet
 
classification
   
November 30
,
2019
   
August 31
,
2019
   
$
change
 
Contract assets
   
Inventories
    $
9,045
    $
10,196
     $
(1,151
 )
Contract liabilities
 
1
    
Deferred revenue
    $
43,105
    $
52,118
     $
(9,013
)
1
Contract liabilities balance includes deferred revenue within the scope of
Topic 606
.
For the three month period ended November 30, 2019, the Company recognized $20.1 million of revenue that was included in Contract liabilities as of
August 31
, 2019.
Performance obligations
As of November 30, 2019, the Company has entered into contracts with customers for which revenue has not yet been recognized. The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods.
(in millions)
 
November 30,
2019
 
Revenue type
:
    
 
Manufacturing – Railcar sales
  $
2,722.9
  
Manufacturing – Marine
 
$
 
80.2
 
Services
  $
150.0
  
Other
  $
65.2
  
Manufacturing – Railcars intended for syndication 
1
   $
298.3
  
1
Not a performance obligation as defined in Topic 606:
Contracts with Customers
Based on current production and delivery schedules and existing contracts, approximately $1.4 billion of the Railcar
s
ales amount is expected to be recognized
in the remaining nine m
onths of
 2020 while the remaining amount is expected
to be recognized through 2024.
 The table above excludes estimated revenue to be recognized at the Company’s Brazilian manufacturing operation, as they are accounted for under the equity method.
Revenue amounts reflected in Railcars intended for syndication may be syndicated to third parties or held in the Company’s fleet depending on a variety of factors.
Marine revenue is expected to be recognized
through
 
2021 as vessel construction is completed.
Services includes management and maintenance services of which approximately 52%
are expected to be performed through 2024 and the remaining amount through 2037.