10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-13419

Lindsay Corporation

(Exact name of registrant as specified in its charter)

Delaware	47-0554096
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
18135 Burke Street, Suite 100, Omaha, Nebraska	68022
(Address of principal executive offices)	(Zip Code)

402‑829-6800

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 par value	LNN	New York Stock Exchange, Inc.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	☒	Accelerated filer	☐
Non‑accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of January 4, 2022, 10,972,392 shares of the registrant’s common stock were outstanding.

Lindsay Corporation

INDEX FORM 10-Q

		Page
Part I – FINANCIAL INFORMATION		3
	ITEM 1 – Financial Statements	3
	Condensed Consolidated Statements of Earnings for the three months ended November 30, 2021 and November 30, 2020	3
	Condensed Consolidated Statements of Comprehensive Income for the three months ended November 30, 2021 and November 30, 2020	4
	Condensed Consolidated Balance Sheets as of November 30, 2021, November 30, 2020, and August 31, 2021	5
	Condensed Consolidated Statements of Shareholders’ Equity for the three months ended November 30, 2021 and November 30, 2020	6
	Condensed Consolidated Statements of Cash Flows for the three months ended November 30, 2021 and November 30, 2020	7
	Notes to the Condensed Consolidated Financial Statements	8
	ITEM 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
	ITEM 3 – Quantitative and Qualitative Disclosures about Market Risk	23
	ITEM 4 – Controls and Procedures	24
Part II – OTHER INFORMATION		25
	ITEM 1 – Legal Proceedings	25
	ITEM 1A – Risk Factors	25
	ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds	25
	ITEM 3 – Defaults Upon Senior Securities	25
	ITEM 4 – Mine Safety Disclosures	25
	ITEM 5 – Other Information	25
	ITEM 6 – Exhibits	26
SIGNATURES		27

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Part I – FINANCIAL INFORMATION

ITEM 1 - Financial Statements

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

	Three months ended
($ and shares in thousands, except per share amounts)	November 30, 2021			November 30, 2020
Operating revenues	$	166,152		$	108,485
Cost of operating revenues		128,714			77,077
Gross profit		37,438			31,408
Operating expenses:
Selling expense		7,990			7,331
General and administrative expense		12,880			13,452
Engineering and research expense		3,207			3,090
Total operating expenses		24,077			23,873
Operating income		13,361			7,535
Other (expense) income:
Interest expense		(1,163	)		(1,201	)
Interest income		177			303
Other expense, net		(2,900	)		246
Total other (expense) income		(3,886	)		(652	)
Earnings before income taxes		9,475			6,883
Income tax expense (benefit)		1,574			(212	)
Net earnings	$	7,901		$	7,095
Earnings per share:
Basic	$	0.72		$	0.65
Diluted	$	0.72		$	0.65
Shares used in computing earnings per share:
Basic		10,927			10,845
Diluted		11,026			10,888
Cash dividends declared per share	$	0.33		$	0.32

See accompanying notes to condensed consolidated financial statements.

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LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three months ended
($ in thousands)	November 30, 2021			November 30, 2020
Net earnings	$	7,901		$	7,095
Other comprehensive (loss) income:
Defined benefit pension plan adjustment, net of tax		49			43
Foreign currency translation adjustment, net of hedging activities and tax		(3,350	)		1,384
Unrealized loss on marketable securities, net of tax		(57	)		(32	)
Total other comprehensive (loss) income, net of tax expense of $2 and $32, respectively		(3,358	)		1,395
Total comprehensive income	$	4,543		$	8,490

See accompanying notes to condensed consolidated financial statements.

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LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

($ and shares in thousands, except par values)	November 30, 2021			November 30, 2020			August 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	84,719		$	126,802		$	127,107
Marketable securities		30,195			19,624			19,604
Receivables, net of allowance of $3,398, $2,960, and $3,422,    respectively		111,959			74,909			93,609
Inventories, net		173,115			114,278			145,244
Other current assets, net		26,345			20,837			30,539
Total current assets		426,333			356,450			416,103
Property, plant, and equipment:
Cost		230,268			212,725			229,000
Less accumulated depreciation		(138,629	)		(131,430	)		(137,003	)
Property, plant, and equipment, net		91,639			81,295			91,997
Intangibles, net		19,827			22,817			20,367
Goodwill		67,735			68,027			67,968
Operating lease right-of-use assets		17,584			26,008			18,281
Deferred income tax assets		6,157			9,924			8,113
Other noncurrent assets		20,170			10,681			14,356
Total assets	$	649,445		$	575,202		$	637,185
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	58,908		$	36,263		$	45,209
Current portion of long-term debt		219			214			217
Other current liabilities		88,655			65,910			92,814
Total current liabilities		147,782			102,387			138,240
Pension benefits liabilities		5,660			6,293			5,754
Long-term debt		115,471			115,641			115,514
Operating lease liabilities		17,679			24,863			18,301
Deferred income tax liabilities		798			902			832
Other noncurrent liabilities		20,112			21,215			20,099
Total liabilities		307,502			271,301			298,740
Shareholders' equity:
Preferred stock of $1 par value - authorized 2,000 shares; no shares issued and outstanding		—			—			—
Common stock of $1 par value - authorized 25,000 shares;    19,056, 18,948, and 18,991 shares issued, respectively		19,056			18,948			18,991
Capital in excess of stated value		89,006			78,026			86,495
Retained earnings		532,410			503,342			528,130
Less treasury stock - at cost, 8,083 shares		(277,238	)		(277,238	)		(277,238	)
Accumulated other comprehensive loss, net		(21,291	)		(19,177	)		(17,933	)
Total shareholders' equity		341,943			303,901			338,445
Total liabilities and shareholders' equity	$	649,445		$	575,202		$	637,185

See accompanying notes to condensed consolidated financial statements.

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Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
($ and shares in thousands, except per share amounts)
(Unaudited)
	Shares of common stock		Shares of treasury stock		Common stock		Capital in excess of stated value			Retained earnings			Treasury stock			Accumulated other comprehensive loss, net			Total shareholders’ equity
Balance at August 31, 2020		18,918		8,083	$	18,918	$	77,686		$	499,724		$	(277,238	)	$	(20,572	)	$	298,518
Comprehensive income:
Net earnings		—		—		—		—			7,095			—			—			7,095
Other comprehensive income		—		—		—		—			—			—			1,395			1,395
Total comprehensive income		—		—		—		—			—			—			—			8,490
Cash dividends ($.32) per share		—		—		—		—			(3,477	)		—			—			(3,477	)
Issuance of common shares under share compensation plans, net		30		—		30		(1,243	)		—			—			—			(1,213	)
Share-based compensation expense		—		—		—		1,583			—			—			—			1,583
Balance at November 30, 2020		18,948		8,083	$	18,948	$	78,026		$	503,342		$	(277,238	)	$	(19,177	)	$	303,901
Balance at August 31, 2021		18,991		8,083	$	18,991	$	86,495		$	528,130		$	(277,238	)	$	(17,933	)	$	338,445
Comprehensive income:
Net earnings		—		—		—		—			7,901			—			—			7,901
Other comprehensive loss		—		—		—		—			—			—			(3,358	)		(3,358	)
Total comprehensive income		—		—		—		—			—			—			—			4,543
Cash dividends ($.33) per share		—		—		—		—			(3,621	)		—			—			(3,621	)
Issuance of common shares under share compensation plans, net		65		—		65		1,289			—			—			—			1,354
Share-based compensation expense		—		—		—		1,222			—			—			—			1,222
Balance at November 30, 2021		19,056		8,083	$	19,056	$	89,006		$	532,410		$	(277,238	)	$	(21,291	)	$	341,943
See accompanying notes to condensed consolidated financial statements.

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LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three months ended
($ in thousands)	November 30, 2021			November 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	7,901		$	7,095
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Depreciation and amortization		4,896			5,140
Provision for uncollectible accounts receivable		91			158
Deferred income taxes		1,841			140
Share-based compensation expense		1,222			1,583
Unrealized foreign currency transaction loss (gain)		2,193			(203	)
Other, net		292			36
Changes in assets and liabilities:
Receivables		(17,816	)		8,896
Inventories		(31,674	)		(8,294	)
Other current assets		5,965			(3,068	)
Accounts payable		12,462			7,286
Other current liabilities		(3,632	)		(7,146	)
Other noncurrent assets and liabilities		(7,920	)		3,750
Net cash (used in) provided by operating activities		(24,179	)		15,373
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(3,061	)		(5,614	)
Purchases of marketable securities available-for-sale		(14,354	)		(3,844	)
Proceeds from maturities of marketable securities available-for-sale		3,599			3,616
Other investing activities, net		(342	)		—
Net cash used in investing activities		(14,158	)		(5,842	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		2,442			56
Common stock withheld for payroll tax obligations		(1,181	)		(1,269	)
Proceeds from employee stock purchase plan		93			—
Principal payments on long-term debt		(54	)		(35	)
Dividends paid		(3,621	)		(3,477	)
Net cash used in financing activities		(2,321	)		(4,725	)
Effect of exchange rate changes on cash and cash equivalents		(1,730	)		593
Net change in cash and cash equivalents		(42,388	)		5,399
Cash and cash equivalents, beginning of period		127,107			121,403
Cash and cash equivalents, end of period	$	84,719		$	126,802
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net of refunds	$	341		$	418
Interest paid	$	51		$	77

See accompanying notes to condensed consolidated financial statements.

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LINDSAY CORPORATION AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 – Basis of Presentation

The condensed consolidated financial statements are presented in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and do not include all of the disclosures normally required by U.S. generally accepted accounting principles (“U.S. GAAP”) as contained in Lindsay Corporation’s (the “Company”) Annual Report on Form 10-K. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended August 31, 2021.

In the opinion of management, the condensed consolidated financial statements of the Company reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and the results of operations and cash flows for the periods presented. The results for interim periods are not necessarily indicative of trends or results expected by the Company for a full year. The condensed consolidated financial statements were prepared using U.S. GAAP. These principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from these estimates.

Recent Accounting Guidance Adopted

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting and related disclosure requirements for income taxes. The Company adopted this standard in the first quarter of its fiscal 2022. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements.

In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. The Company adopted this in the first quarter of the Company’s fiscal 2021. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill; rather, an entity will measure its goodwill impairment by the amount the carrying value exceeds the fair value of a reporting unit. The Company adopted this in the first quarter of the Company’s fiscal 2021. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures. 

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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, 2021 and November 30, 2020 is as follows:

	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
	Three months ended
	November 30, 2020
($ in thousands)	Irrigation		Infrastructure		Total
Point in time	$	80,060	$	15,452	$	95,512
Over time		7,296		1,639		8,935
Revenue from the contracts with customers		87,356		17,091		104,447
Lease revenue		—		4,038		4,038
Total operating revenues	$	87,356	$	21,129	$	108,485

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 $7.3 million at November 30, 2021.

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, 2021, November 30, 2020, and August 31, 2021, contract assets amounted to $1.2 million, $1.2 million, and $1.3 million, respectively. These amounts are included within other current assets on the condensed consolidated balance sheet.

Contract liabilities include advance payments from customers and billings in excess of delivery of performance obligations. At November 30, 2021, November 30, 2020, and August 31, 2021, contract liabilities amounted to $41.1 million, $21.3 million, and $37.4 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, 2021 and November 30, 2020, the Company recognized $12.7 million and $6.5 million of revenue that were included in the liabilities as of August 31, 2021 and 2020, respectively. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter.

Note 3 – Net Earnings per Share

Basic earnings per share is calculated on the basis of weighted average outstanding common shares. Diluted earnings per share is calculated on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, restricted stock unit awards and other dilutive securities.

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The following table shows the computation of basic and diluted net earnings per share for the three months ended November 30, 2021 and 2020:

	Three months ended
($ and shares in thousands, except per share amounts)	November 30, 2021		November 30, 2020
Numerator:
Net earnings	$	7,901	$	7,095
Denominator:
Weighted average shares outstanding		10,927		10,845
Diluted effect of stock awards		99		43
Weighted average shares outstanding assuming    dilution		11,026		10,888
Basic net earnings per share	$	0.72	$	0.65
Diluted net earnings per share	$	0.72	$	0.65

Certain stock options and restricted stock units were excluded from the computation of diluted net earnings per share because their effect would have been anti-dilutive. Performance stock units are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. The following table shows the securities excluded from the computation of earnings per share because their effect would have been anti-dilutive:

	Three months ended
(Units and options in thousands)	November 30, 2021		November 30, 2020
Stock options		10		79
Performance stock units		2		10

Note 4 – Income Taxes

The Company recorded income tax expense of $1.6 million and an income tax benefit of $0.2 million for the three months ended November 30, 2021 and 2020, respectively.

It is the Company’s policy to report income tax expense for interim periods using an estimated annual effective income tax rate. The estimated annual effective income tax rate was 24.2 percent and 23.8 percent for the three months ended November 30, 2021 and 2020, respectively.

The tax effects of significant or unusual items are not considered in the estimated annual effective income tax rate. The tax effects of such discrete events are recognized in the interim period in which the events occur. The Company recorded discrete items resulting in an income tax benefit of $0.7 million and $1.8 million for the three months ended November 30, 2021 and 2020, respectively. The discrete items recorded in the three months ended November 30, 2021 include a benefit of $0.7 million related to the vesting of share-based compensation awards, and the discrete items recorded in the three months ended November 30, 2020 include a benefit of $1.7 million related to the release of a valuation allowance related to net operating loss carryforwards in a foreign jurisdiction.

Note 5 – Inventories

Inventories consisted of the following as of November 30, 2021, November 30, 2020, and August 31, 2021:

($ in thousands)	November 30, 2021	November 30, 2020	August 31, 2021
Raw materials and supplies	$78,102	$52,374	$69,962
Work in process	12,227	8,041	8,301
Finished goods and purchased parts, net	90,676	58,284	75,053
Total inventory value before LIFO adjustment	181,005	118,699	153,316
Less adjustment to LIFO value	(7,890)	(4,421)	(8,072)
Inventories, net	$173,115	$114,278	$145,244

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Note 6 – Long-Term Debt

The following table sets forth the outstanding principal balances of the Company’s long-term debt as of the dates shown:

($ in thousands)	November 30, 2021	November 30, 2020	August 31, 2021
Series A Senior Notes	$115,000	$115,000	$115,000
Elecsys Series 2006A Bonds	1,096	1,309	1,148
Total debt	116,096	116,309	116,148
Less current portion	(219)	(214)	(217)
Less unamortized debt issuance costs	(406)	(454)	(417)
Total long-term debt	$115,471	$115,641	$115,514

Principal payments on the debt are due as follows:

Due within	$ in thousands
1 year	$	219
2 years		222
3 years		227
4 years		231
5 years		197
Thereafter		115,000
	$	116,096

Note 7 – Fair Value Measurements

The following table presents the Company’s financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of November 30, 2021, November 30, 2020, and August 31, 2021. There were no transfers between any levels for the periods presented.

	November 30, 2021
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	84,719	$	—	$	—		$	84,719
Marketable securities:
Corporate bonds		—		26,503		—			26,503
U.S. treasury securities		—		3,692		—			3,692
	November 30, 2020
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	126,802	$	—	$	—		$	126,802
Marketable securities:
Corporate bonds		—		14,564		—			14,564
U.S. treasury securities		—		5,060		—			5,060
Earn-out liability		—		—		(1,112	)		(1,112	)
	August 31, 2021
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	127,107	$	—	$	—		$	127,107
Marketable securities:
Corporate bonds		—		15,484		—			15,484
U.S. treasury securities		—		4,120		—			4,120
Earn-out liability		—		—		(250	)		(250	)

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The Company’s investment in marketable securities consists of United States treasury bonds and investment grade corporate bonds. The marketable securities are classified as available-for-sale and are carried at fair value with the change in unrealized gains and losses reported as a separate component on the condensed consolidated statements of comprehensive income until realized. The Company determines fair value using data points that are observable, such as quoted prices and interest rates. The amortized cost of the investments approximates fair value. Investment income is recorded within other (expense) income on the condensed consolidated statements of earnings. As of November 30, 2021, approximately 65% of the Company’s marketable securities investments mature within one year and 35% mature within one to five years.

The Company’s earn-out liability relates to its acquisition of Net Irrigate, LLC during the third quarter of fiscal 2020 and was settled in full during the first quarter of fiscal 2022.

There were no required fair value adjustments for assets and liabilities measured at fair value on a non-recurring basis for the three months ended November 30, 2021 or 2020.

Note 8 – Commitments and Contingencies

In the ordinary course of its business operations, the Company enters into arrangements that obligate it to make future payments under contracts such as lease agreements. Additionally, the Company is involved, from time to time, in commercial litigation, employment disputes, administrative proceedings, business disputes and other legal proceedings. The Company has established accruals for certain proceedings based on an assessment of probability of loss. The Company believes that any such currently-pending proceedings are either covered by insurance or would not have a material effect on the business or its consolidated financial statements if decided in a manner that is unfavorable to the Company. Such proceedings are exclusive of environmental remediation matters which are discussed separately below.

Infrastructure Products

The Company is currently defending a number of product liability lawsuits arising out of vehicle collisions with highway barriers incorporating the Company’s X-Lite® end terminal. Despite the September 2018 reversal of a sizable judgment against a competitor, the Company expects that the significant attention brought to the infrastructure products industry by the original judgment may lead to additional lawsuits being filed against the Company and others in the industry.

The Company, certain of its subsidiaries, and certain third parties which originally designed the X-Lite end terminal have also been named in a lawsuit filed on June 9, 2020 in the Circuit Court of Cole County, Missouri by Missouri Highways and Transportation Commission (“MHTC”). MHTC alleges, among other things, that the X-Lite end terminal was defectively designed and failed to perform as designed, intended, and advertised, leading to MHTC’s removal and replacement of X-Lite end terminals from Missouri’s roadways. MHTC alleges strict liability (defective design and failure to warn), negligence, breach of express warranties, breach of implied warranties (merchantability and fitness for a particular purpose), fraud, and public nuisance. MHTC seeks compensatory damages, interest, attorneys’ fees, and punitive damages.

The Company believes it has meritorious factual and legal defenses to each of the lawsuits discussed above and is prepared to vigorously defend its interests. Based on the information currently available to the Company, the Company does not believe that a loss is probable in any of these lawsuits; therefore, no accrual has been included in the Company’s consolidated financial statements. While it is possible that a loss may be incurred, the Company is unable to estimate a range of potential loss due to the complexity and current status of these lawsuits. However, the Company maintains insurance coverage to mitigate the impact of adverse exposures in these lawsuits and does not expect that these lawsuits will have a material adverse effect on its business or its consolidated financial statements.

In June 2019, the Company was informed by letter that the Department of Justice, Civil Division and U.S. Attorney’s Office for the Northern District of New York, with the assistance of the Department of Transportation, Office of Inspector General, are conducting an investigation of the Company relating to the Company’s X-Lite end terminal and potential violations of the federal civil False Claims Act. Depending on the outcome of this matter, there could be a material adverse effect on the Company’s business or its consolidated financial statements. Given the current posture of the matter, the Company is unable to estimate a range of potential loss, if any, or to express an opinion regarding the ultimate outcome.

Environmental Remediation

In previous years, the Company committed to a plan to remediate environmental contamination of the groundwater at and adjacent to its Lindsay, Nebraska facility (the “site”). The current estimated aggregate accrued cost of $16.1 million is based on consideration of remediation options which the Company believes could be successful in meeting the long-term regulatory requirements of the site. The Company submitted a revised remedial alternatives evaluation report to the U.S. Environmental Protection Agency (“EPA”) and the Nebraska Department of Environment and Energy (the “NDEE”) in August 2020 to

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review remediation alternatives and proposed plans for the site. The proposed remediation plan is preliminary and has not been approved by the EPA or the NDEE. Based on guidance from third-party environmental experts and the preliminary discussions with the regulatory agencies, the Company anticipates that a definitive plan will not be agreed upon until the first half of calendar 2022 or later. Of the total liability as of both August 31, 2021 and 2020, $11.0 million was calculated on a discounted basis using a discount rate of 1.2%, which represents a risk-free rate. This discounted portion of the liability amounts to $12.4 million on an undiscounted basis.

The Company accrues the anticipated cost of investigation and remediation when the obligation is probable and can be reasonably estimated. While the plan has not been formally approved by the EPA, the Company believes the current accrual is a good faith estimate of the long-term cost of remediation at this site; however, the estimate of costs and their timing could change as a result of a number of factors, including but not limited to (1) EPA input on the proposed remediation plan and any changes which the EPA may subsequently require, (2) refinement of cost estimates and length of time required to complete remediation and post-remediation operations and maintenance, (3) effectiveness of the technology chosen in remediation of the site as well as changes in technology that may be available in the future, and (4) unforeseen circumstances existing at the site. As a result of these factors, the actual amount of costs incurred by the Company in connection with the remediation of contamination of its Lindsay, Nebraska site could exceed the amounts accrued for this expense at this time. While any revisions could be material to the operating results of any fiscal quarter or fiscal year, the Company does not expect such additional expenses would have a material adverse effect on its liquidity or financial condition.

The following table summarizes the undiscounted environmental remediation liability classifications included in the condensed consolidated balance sheets as of November 30, 2021, November 30, 2020, and August 31, 2021:

($ in thousands)	November 30, 2021		November 30, 2020		August 31, 2021
Other current liabilities	$	828	$	1,105	$	965
Other noncurrent liabilities		15,181		15,021		15,128
Total environmental remediation liabilities	$	16,009	$	16,126	$	16,093

Note 9 – Warranties

The following table provides the changes in the Company’s product warranties:

	Three months ended
($ in thousands)	November 30, 2021			November 30, 2020
Product warranty accrual balance, beginning of period	$	12,736		$	10,765
Liabilities accrued for warranties during the period		2,394			1,734
Warranty claims paid during the period		(2,751	)		(1,641	)
Product warranty accrual balance, end of period	$	12,379		$	10,858

Note 10 – Share-Based Compensation

The Company’s current share-based compensation plans, approved by the stockholders of the Company, provides for awards of stock options, restricted shares, restricted stock units (“RSUs”), stock appreciation rights, performance shares, and performance stock units (“PSUs”) to employees and non-employee directors of the Company. The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. Share-based compensation expense was $1.3 million and $1.7 million for the three months ended November 30, 2021 and 2020, respectively.

The following table illustrates the type and fair value of share-based compensation awards granted during the three months ended November 30, 2021 and 2020, respectively:

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	Three months ended
	November 30, 2021				November 30, 2020
	Number of units granted		Weighted average grant-date fair value per award		Number of units granted		Weighted average grant-date fair value per award
Stock options		21,137	$	41.80		35,168	$	30.68
RSUs		20,099	$	141.99		26,314	$	106.72
PSUs		12,122	$	147.74		19,533	$	125.23

The RSUs granted during the three months ended November 30, 2021 and 2020 included 2,248 and 2,162 awards, respectively, that will be settled in cash. The weighted average stock price on the date of grant was $145.93 and $110.21 per award for the three months ended November 30, 2021 and 2020, respectively. Share issuances are presented net of share repurchases to cover payroll taxes of $1.2 million and $1.3 million for the three months ended November 30, 2021 and 2020, respectively.

The following table provides the assumptions used in determining the fair value of the stock options awarded during the three months ended November 30, 2021 and 2020, respectively:

	Three months ended November 30,
	2021			2020
Weighted-average dividend yield		0.9	%		1.2	%
Weighted-average volatility		33.8	%		32.8	%
Risk-free interest rate		1.2	%		0.5	%
Weighted-average expected life (years)		5			6

The PSUs granted during fiscal 2022 include performance goals based on a return on invested capital ("ROIC") and total shareholder return ("TSR") relative to the Company's peers during the performance period. The awards actually earned will range from zero to two hundred percent of the targeted number of PSUs and will be paid in shares of common stock. Shares earned will be distributed upon vesting on the first day of November following the end of the three-year performance period. For the ROIC portion of the award, the Company is accruing compensation expense based on the estimated number of shares expected to be issued utilizing the most current information available to the Company at the date of the consolidated financial statements. For the TSR portion of the award, compensation expense is recorded ratably over the three-year term of the award based on the estimated grant date fair value.

The fair value of the TSR portion of the awards granted during the three months ended November 30, 2021 and 2020 was estimated at the grant date using a Monte Carlo simulation model which included the following assumptions:

	Three months ended November 30,
	2021			2020
Expected term (years)		3			3
Risk-free interest rate		0.7	%		0.2	%
Volatility		39.1	%		38.6	%
Dividend yield		0.9	%		1.2	%

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Note 11 – Other Current Liabilities

($ in thousands)	November 30, 2021		November 30, 2020		August 31, 2021
Other current liabilities:
Contract liabilities	$	39,747	$	18,497	$	36,060
Compensation and benefits		13,460		13,759		21,623
Warranties		12,379		10,858		12,736
Dealer related liabilities		4,180		3,696		3,971
Operating lease liabilities		3,787		5,004		3,991
Tax related liabilities		1,639		443		1,072
Deferred revenue - lease		1,201		3,165		3,456
Accrued insurance		893		1,253		1,123
Accrued environmental liabilities		828		1,105		965
Other		10,541		8,130		7,817
Total other current liabilities	$	88,655	$	65,910	$	92,814

Note 12 – Share Repurchases

There were no shares repurchased during the three months ended November 30, 2021 and 2020 under the Company’s share repurchase program. The remaining amount available under the repurchase program was $63.7 million as of November 30, 2021.

Note 13 – Industry Segment Information

The Company manages its business activities in two reportable segments: irrigation and infrastructure. The Company evaluates the performance of its reportable segments based on segment revenues, gross profit and operating income, with operating income for segment purposes excluding unallocated corporate general and administrative expenses, interest income, interest expense, other income and expenses and income taxes. Operating income for segment purposes includes general and administrative expenses, selling expenses, engineering and research expenses and other overhead charges directly attributable to the segment. There are no inter-segment sales included in the amounts disclosed. The Company had no single customer who represented 10 percent or more of its total revenues during the three months ended November 30, 2021 or 2020.

Irrigation - This reporting segment includes the manufacture and marketing of center pivot, lateral move and hose reel irrigation systems and large diameter steel tubing as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial internet of things, or “IIoT”, solutions. The irrigation reporting segment consists of one operating segment.

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Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment. The infrastructure reporting segment consists of one operating segment.

	Three months ended
($ in thousands)	November 30, 2021			November 30, 2020
Operating revenues:
Irrigation:
North America	$	78,976		$	52,790
International		66,933			34,566
Irrigation total		145,909			87,356
Infrastructure		20,243			21,129
Total operating revenues	$	166,152		$	108,485
Operating income:
Irrigation	$	17,212		$	10,633
Infrastructure		2,766			4,256
Corporate		(6,617	)		(7,354	)
Total operating income		13,361			7,535
Interest and other expense, net		(3,886	)		(652	)
Earnings before income taxes	$	9,475		$	6,883

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ITEM 2 ‑ Management's Discussion and Analysis of Financial Condition and Results of Operations

Concerning Forward‑Looking Statements

This Quarterly Report on Form 10-Q contains not only historical information, but also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical are forward-looking and reflect information concerning possible or assumed future results of operations and planned financing of the Company. In addition, forward-looking statements may be made orally or in press releases, conferences, reports, on the Company's web site, or otherwise, in the future by or on behalf of the Company. When used by or on behalf of the Company, the words “expect,” “anticipate,” “estimate,” “believe,” “intend,” “will,” “plan,” “predict,” “project,” “outlook,” “could,” “may,” “should” or similar expressions generally identify forward-looking statements. The entire section entitled “Executive Overview and Outlook” should be considered forward-looking statements. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve a number of risks and uncertainties, including but not limited to those discussed in the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2020. Readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results or conditions, which may not occur as anticipated. Actual results or conditions could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described herein and in the Company’s other public filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, 2021, as well as other risks and uncertainties not now anticipated. The risks and uncertainties described herein and in the Company’s other public filings are not exclusive and further information concerning the Company and its businesses, including factors that potentially could materially affect the Company's financial results, may emerge from time to time. Except as required by law, the Company assumes no obligation to update forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

COVID-19 Impact

In March 2020, the World Health Organization declared the 2019 coronavirus disease (COVID-19) a global pandemic. This outbreak has adversely affected workforces, customers, economies, and financial markets globally, leading to economic uncertainty. Shelter-in-place or stay-at-home orders have been implemented from time to time in many of the jurisdictions in which the Company operates. However, because the Company supports critical industries, the Company’s facilities worldwide have generally been considered “business essential” and have remained open throughout the outbreak with limited exceptions. Accordingly, COVID-19 has had a limited impact on the Company’s manufacturing operations to date. While the Company has implemented new procedures to protect the health and well-being of employees and customers, costs associated with these procedures have not been material. The pandemic has not had a material adverse effect on demand for the Company’s irrigation or infrastructure products; however, the pandemic has resulted in a slowdown of road construction activity and delays in certain project implementations. As pandemic conditions improve and economic activity increases, the Company has experienced a number of supply chain challenges including increased lead times and limited availability of certain components, raw material inflation, and labor and logistics constraints.

The ultimate impact of COVID-19 on the Company’s business, results of operations, or cash flows remains uncertain and depends on numerous evolving factors that the Company may not be able to accurately predict or effectively respond to, including, without limitation: the duration and scope of the outbreak; mutations of COVID-19; actions taken by governments, businesses, and individuals in response to the outbreak; the effect on economic activity and actions taken in response; the effect on customers and their demand for the Company’s products and services; and the Company’s ability to manufacture, sell, distribute and service its products, including without limitation as a result of supply chain challenges, facility closures, social distancing, restrictions on travel, fear or anxiety by the populace, and shelter-in-place orders. As such, the full financial impact of COVID-19 on the Company’s business is difficult to estimate.

Accounting Policies

In preparing the Company’s condensed consolidated financial statements in conformity with U.S. GAAP, management must make a variety of decisions which impact the reported amounts and the related disclosures. These decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. In making these decisions, management applies its judgment based on its understanding and analysis of the relevant circumstances and the Company’s historical experience.

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The Company’s accounting policies that are most important to the presentation of its results of operations and financial condition, and which require the greatest use of judgments and estimates by management, are designated as its critical accounting policies. See discussion of the Company’s critical accounting policies under Item 7 in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, 2021. Management periodically re-evaluates and adjusts its critical accounting policies as circumstances change. There were no significant changes in the Company’s critical accounting policies during the three months ended November 30, 2021.

Recent Accounting Guidance

See Note 1 – Basis of Presentation and the disclosure therein of recently adopted accounting guidance to the condensed consolidated financial statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Executive Overview and Outlook

Operating revenues for the three months ended November 30, 2021 were $166.2 million, an increase of 53 percent compared to $108.5 million for the three months ended November 30, 2020. Irrigation segment revenues increased 67 percent to $145.9 million and infrastructure segment revenues decreased 4 percent to $20.2 million. Net earnings for the three months ended November 30, 2021 were $7.9 million, or $0.72 per diluted share, compared to net earnings of $7.1 million, or $0.65 per diluted share, for the three months ended November 30, 2020.

The global drivers for the Company’s irrigation segment are population growth and the attendant need for expanded food production and efficient water use. The need for irrigated agricultural crop production, which depends upon many factors, include the following primary drivers:

Agricultural commodity prices – As of November 2021, U.S. corn prices have increased approximately 40 percent and U.S. soybean prices have increased approximately six percent from November 2020. The increases are due to lower production levels in the U.S. coupled with higher demand coming primarily from an increase in corn and soybean exports to China.

Net farm income – As of December 2021, the U.S. Department of Agriculture (the “USDA”) estimated U.S. 2021 net farm income to be $116.8 billion, an increase of 23 percent from the USDA’s estimated U.S. 2020 net farm income of $94.8 billion. The increase is primarily related to an increase in cash receipts from crops and livestock that is offsetting a portion of the decrease in government support payments. If estimates hold, U.S. net farm income in 2021 will be the highest level since 2013.

Weather conditions – Demand for irrigation equipment is often positively affected by storm damage and prolonged periods of drought conditions as producers look for ways to reduce the risk of low crop production and crop failures. Conversely, demand for irrigation equipment can be negatively affected during periods of more predictable or excessive natural precipitation.

Governmental policies – A number of governmental laws and regulations can affect the Company’s business, including:

The Agriculture Improvement Act of 2018 (the “Farm Bill”) was signed into law in December 2018. The Farm Bill continues many of the programs that were in the Agricultural Act of 2014, which expired in September 2018. Such programs are designed to provide a degree of certainty to growers, including funding for the Environmental Quality Incentives Program, which provides financial assistance to farmers to implement conservation practices, and is frequently used to assist in the purchase of center pivot irrigation systems.

Changes to U.S. income tax laws enacted in December 2017 increased the benefit of certain tax incentives, such as the Section 179 income tax deduction and Section 168 bonus depreciation, which are intended to encourage equipment purchases by allowing the entire cost of equipment to be treated as an expense in the year of purchase rather than amortized over its useful life.

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Biofuel production continues to be a major demand driver for irrigated corn, sugar cane and soybeans as these crops are used in high volumes to produce ethanol and biodiesel. In December 2021, the U.S. Environmental Protection Agency (“EPA”) proposed the Renewable Fuels Standard (RFS) volume requirements for 2022, 2021, and 2020. The proposed volumes for 2022 are over 3.5 billion gallons higher than the volume of renewable fuel used in 2020. The EPA is proposing 2021 volumes at the level it predicts the market will use by the end of the year, while proposing revisions to the 2020 standards to account for market challenges, including the COVID-19 pandemic.

Many international markets are affected by government policies such as subsidies and other agriculturally related incentives. While these policies can have a significant effect on individual markets, they typically do not have a material effect on the consolidated results of the Company.

Currency – The value of the U.S. dollar fluctuates in relation to the value of currencies in a number of countries to which the Company exports products and in which the Company maintains local operations. The strengthening of the dollar increases the cost in the local currency of the products exported from the U.S. into these countries and, therefore, could negatively affect the Company’s international sales and margins. In addition, the U.S. dollar value of sales made in any affected foreign currencies will decline as the value of the dollar rises in relation to these other currencies.

International irrigation markets remain active with opportunities for further development and expansion, however regional political and economic factors, currency conditions and other factors can create a challenging environment. Additionally, international results are heavily dependent upon project sales which tend to fluctuate and can be difficult to forecast accurately.

The infrastructure business continues to be driven by the Company's transportation safety products which is dependent to a significant extent on government spending for road construction and improvements. The enactment of the Infrastructure Investment and Jobs Act in November 2021 marked the largest infusion of federal investment into infrastructure projects in more than a decade. This legislation introduced $110 billion in incremental federal funding, planned for roads, bridges, and other transformational projects, which the Company anticipates will translate into higher demand for its transportation safety products.

Demand for irrigation equipment in the U.S. has remained robust over the same prior year period due to positive farmer sentiment resulting from strong agricultural commodity prices and a favorable outlook for net farm income. During this period supply chain constraints such as steel and other raw material costs as well as freight and logistics costs have continued to persist. These circumstances have continued to temper operating margins and are expected to continue to do so until these increased costs can be fully covered by increases in selling prices. In addition, supply chain constraints impacting availability of raw materials and trucking resources have contributed to cost increases and have resulted in extended lead times for deliveries.

The backlog of unshipped orders at November 30, 2021 was $154.8 million compared with $89.2 million at November 30, 2020. The irrigation backlog is higher compared to the prior year while the infrastructure backlog is lower. The Company’s backlog can fluctuate from period to period due to the seasonality, cyclicality, timing and execution of contracts. Backlog typically represents long-term projects as well as short lead-time orders, and therefore is generally not a good indication of the next fiscal quarter’s revenues.

The global drivers for the Company’s markets of population growth, expanded food production, efficient water use and infrastructure expansion support the Company’s long-term growth goals. The most significant opportunities for growth over the next several years are in international markets, where irrigation use is less developed and demand is driven primarily by food security, water scarcity and population growth.

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Results of Operations

For the Three Months ended November 30, 2021 compared to the Three Months ended November 30, 2020

The following section presents an analysis of the Company’s operating results displayed in the condensed consolidated statements of earnings for the three months ended November 30, 2021 and 2020. It should be read together with the industry segment information in Note 13 to the condensed consolidated financial statements:

	Three months ended						Percent
($ in thousands)	November 30, 2021			November 30, 2020			Increase (Decrease)
Consolidated
Operating revenues	$	166,152		$	108,485		53%
Gross profit	$	37,438		$	31,408		19%
Gross margin		22.5	%		29.0	%
Operating expenses (1)	$	24,077		$	23,873		1%
Operating income	$	13,361		$	7,535		77%
Operating margin		8.0	%		6.9	%
Other expense, net	$	(3,886	)	$	(652	)	496%
Income tax expense	$	1,574		$	(212	)	-842%
Overall income tax rate		16.6	%		-3.1	%
Net earnings	$	7,901		$	7,095		11%
Irrigation Segment
Segment operating revenues	$	145,909		$	87,356		67%
Segment operating income	$	17,212		$	10,633		62%
Segment operating margin		11.8	%		12.2	%
Infrastructure Segment
Segment operating revenues	$	20,243		$	21,129		-4%
Segment operating income	$	2,766		$	4,256		-35%
Segment operating margin		13.7	%		20.1	%

(1)Includes $6.6 million and $7.4 million of corporate operating expenses for the three months ended November 30, 2021 and 2020, respectively.

Revenues

Operating revenues for the three months ended November 30, 2021 increased 53 percent to $166.2 million from $108.5 million for the three months ended November 30, 2020, as irrigation revenues increased $58.6 million and infrastructure revenues decreased $0.9 million. The irrigation segment provided 88 percent of the Company’s revenue during the three months ended November 30, 2021 as compared to 81 percent for the three months ended November 30, 2020.

North America irrigation revenues for the three months ended November 30, 2021 of $79.0 million increased $26.2 million, or 50 percent, from $52.8 million for the three months ended November 30, 2020. The increase resulted from a combination of higher irrigation equipment unit sales volume and higher average selling prices. Increased demand for irrigation equipment is supported by higher agricultural commodity prices and farm income, while higher average selling prices result from the pass through of higher raw materials costs to customers.

International irrigation revenues for the three months ended November 30, 2021 of $66.9 million increased $32.4 million, or 94 percent, from $34.6 million for the three months ended November 30, 2020. The increase resulted from a combination of higher average selling prices and higher unit sales volumes in most international markets, namely Brazil, Middle East and Europe. These increases are the result of positive market fundamentals and from the pass through of higher raw material costs. Also contributing were favorable effects of foreign currency translation of approximately $1.1 million compared to the same prior year period.

Infrastructure segment revenues for the three months ended November 30, 2021 of $20.2 million decreased $0.9 million, or 4 percent, from $21.1 million for the three months ended November 30, 2020. The decrease resulted from lower Road Zipper System sales, which were partially offset by higher Road Zipper System lease revenue and increased sales of road safety products.

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Gross Profit

Gross profit for the three months ended November 30, 2021 of $37.4 million increased 19 percent from $31.4 million for the three months ended November 30, 2020. The increase in gross profit resulted from higher irrigation segment revenues that were partially offset by lower infrastructure segment revenues. In addition, gross profit was reduced by the impact of higher costs of raw materials and other inputs, as well as approximately $6.0 million resulting from the impact of the last-in, first-out ("LIFO") method of accounting for inventory, of which $5.0 million impacted the irrigation segment and $1.0 million impacted the infrastructure segment. Under LIFO, higher raw material costs are recognized in cost of goods sold rather than in ending inventory values. Gross margin was 22.5 percent of sales for the three months ended November 30, 2021 compared with 29.0 percent of sales for the three months ended November 30, 2020. Lower gross margin in the current year period resulted in part from a higher proportion of irrigation revenues, which have a lower gross margin than infrastructure revenues, as compared to the same prior year period. Higher costs of raw materials and other inputs also contributed to lower gross margin in the current period compared to the same prior year period.

Operating Expenses

Operating expenses of $24.1 million for the three months ended November 30, 2021 increased $0.2 million, or 1 percent, compared with $23.9 million for the three months ended November 30, 2020. The increase resulted primarily from higher selling expenses and engineering expenses, which were partially offset by reductions in other categories of operating expenses compared to the same prior year period.

Other Expense, net

Other expense for the three months ended November 30, 2021 increased $3.1 million compared to the three months ended November 30, 2020. The change resulted primarily from higher foreign currency transaction losses compared to the same prior year period.

Income Taxes

The Company recorded income tax expense of $1.6 million and an income tax benefit of $0.2 million for the three months ended November 30, 2021 and 2020, respectively. The effective income tax rate was 16.6 percent and (3.1) percent for the three months ended November 30, 2021 and 2020, respectively. The current year period includes a benefit of $0.7 million related to the vesting of share-based compensation awards while the same prior year period includes a benefit of $1.7 million related to the release of a valuation allowance related to net operating loss carryforwards in a foreign jurisdiction.

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Liquidity and Capital Resources

The Company's cash, cash equivalents, and marketable securities totaled $114.9 million at November 30, 2021 compared with $146.4 million at November 30, 2020 and $146.7 million at August 31, 2021. The Company requires cash for financing its receivables and inventories, paying operating expenses and capital expenditures, and for dividends and share repurchases. The Company meets its liquidity needs and finances its capital expenditures from its available cash and funds provided by operations along with borrowings under its credit arrangements described below. The Company’s investments in marketable securities are primarily comprised of United States government securities and investment grade corporate securities. The Company believes its current cash resources, investments in marketable securities, projected operating cash flow, and remaining capacity under its continuing bank lines of credit are sufficient to cover all its expected working capital needs, planned capital expenditures and dividends. The Company may require additional borrowings to fund potential acquisitions in the future.

The Company’s total cash and cash equivalents held by foreign subsidiaries were approximately $35.5 million, $41.3 million, and $38.4 million as of November 30, 2021, November 30, 2020, and August 31, 2021, respectively. The Company considers earnings in foreign subsidiaries to be indefinitely reinvested and would need to accrue and pay incremental state, local, and foreign taxes if such earnings were repatriated to the United States. The Company does not intend to repatriate the funds and does not expect these funds to have a significant impact on the Company’s overall liquidity.

Net working capital was $278.6 million at November 30, 2021, as compared with $254.1 million at November 30, 2020 and $277.9 million at August 31, 2021. Cash used in operating activities totaled $24.2 million during the three months ended November 30, 2021, compared to cash provided by operating activities of $15.4 million during the three months ended November 30, 2020. This change was primarily due to increases in receivables and inventories that were partially offset by changes in other categories of working capital, compared to the same prior year period.

Cash flows used in investing activities totaled $14.2 million during the three months ended November 30, 2021 compared to $5.8 million during the three months ended November 30, 2020. Purchases of marketable securities increased $10.5 million compared to the same prior year period. Purchases of property, plant, and equipment were $3.1 million, compared to $5.6 million in the same prior year period.

Cash flows used in financing activities totaled $2.3 million during the three months ended November 30, 2021 compared to cash flows used in financing activities of $4.7 million during the three months ended November 30, 2020. The decrease was primarily the result of higher proceeds from the exercise of stock options compared to the same prior year period.

Capital Allocation Plan

The Company’s capital allocation plan is to continue investing in revenue and earnings growth, combined with a defined process for enhancing returns to stockholders. Under the Company’s capital allocation plan, the priorities for uses of cash include:

Investment in organic growth including capital expenditures and expansion of international markets,

Dividends to stockholders, along with expectations to increase dividends over time,

Synergistic acquisitions that provide attractive returns to stockholders, and

Opportunistic share repurchases taking into account cyclical and seasonal fluctuations.

Capital Expenditures

Capital expenditures for fiscal 2022 are expected to be between $20.0 million and $25.0 million, including equipment replacement, productivity improvements and new product development. The Company’s management does maintain flexibility to modify the amount and timing of some of the planned expenditures in response to economic conditions.

Dividends

In the first quarter of fiscal 2022, the Company paid a quarterly cash dividend to stockholders of $0.33 per common share, or $3.6 million, compared to a quarterly cash dividend of $0.32 per common share, or $3.5 million, in the first quarter of fiscal 2021.

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Share Repurchases

The Company’s Board of Directors authorized a share repurchase program of up to $250.0 million of common stock with no expiration date. Under the program, shares may be repurchased in privately negotiated and/or open market transactions as well as under formalized trading plans in accordance with the guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. There were no shares repurchased during the three months ended November 30, 2021 or 2020. The remaining amount available under the repurchase program was $63.7 million as of November 30, 2021.

Long-Term Borrowing Facilities

Senior Notes. The Company has outstanding $115.0 million in aggregate principal amount of Senior Notes, Series A (the “Senior Notes”). The entire principal of the Senior Notes is due and payable on February 19, 2030. Interest on the Senior Notes is payable semi-annually at a fixed annual rate of 3.82 percent. Borrowings under the Senior Notes are unsecured. The Company used the proceeds of the sale of the Senior Notes for general corporate purposes, including acquisitions and dividends.

Revolving Credit Facility. The Company has outstanding a $50.0 million unsecured Amended and Restated Revolving Credit Facility (the “Revolving Credit Facility”) with Wells Fargo Bank, National Association (“Wells Fargo”) expiring August 26, 2026. The Company intends to use borrowings under the Revolving Credit Facility for working capital purposes and to fund acquisitions. At November 30, 2021 and 2020, the Company had no outstanding borrowings under the Revolving Credit Facility. The amount of borrowings available at any time under the Revolving Credit Facility is reduced by the amount of standby letters of credit issued by Wells Fargo then outstanding. At November 30, 2021, the Company had the ability to borrow up to $50.0 million under the Revolving Credit Facility. The Revolving Credit Facility may be increased by up to an additional $50.0 million at any time, subject to additional commitment approval. The Revolving Credit Facility was amended to transition the benchmark rate from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”). Borrowings under the Revolving Credit Facility bear interest at a variable rate equal to the SOFR plus a margin of between 100 and 210 basis points depending on the Company’s leverage ratio then in effect (which resulted in a variable rate of 1.40 percent at November 30, 2021), subject to adjustment as set forth in the loan documents for the Revolving Credit Facility. Interest is paid on a monthly to quarterly basis depending on loan type. The Company currently pays an annual commitment fee on the unused portion of the Revolving Credit Facility. The fee is between 0.125 percent and 0.2 percent (0.125 percent at November 30, 2021) on the unused balance depending on the Company’s leverage ratio then in effect.

Borrowings under the Revolving Credit Facility have equal priority with borrowings under the Company’s Senior Notes. Each of the credit arrangements described above include certain covenants relating primarily to the Company’s financial condition. These financial covenants include a funded debt to EBITDA leverage ratio and an interest coverage ratio. In the event that the loan documents for the Revolving Credit Facility were to require the Company to comply with any financial covenant that is not already included or is more restrictive than what is already included in the arrangement governing the Senior Notes, then such covenant shall be deemed incorporated by reference for the benefit of holders of the Senior Notes. Upon the occurrence of any event of default of these covenants, including a change in control of the Company, all amounts outstanding thereunder may be declared to be immediately due and payable. At November 30, 2021 and 2020, the Company was in compliance with all financial loan covenants contained in its credit arrangements in place as of each of those dates.

Series 2006A Bonds. Elecsys International LLC, a wholly owned subsidiary of the Company, has outstanding $1.1 million in principal amount of industrial revenue bonds that were issued in 2006 (the “Series 2006A Bonds”). Principal and interest on the Series 2006A Bonds are payable monthly through maturity on September 1, 2026. The interest rate is adjustable every five years based on the yield of the 5-year United States Treasury Notes, plus 0.45 percent (1.72 percent as of November 30, 2021). This rate was adjusted on September 1, 2021 in accordance with the terms of the bonds, and the adjusted rate will be in force through maturity. The obligations under the Series 2006A Bonds are secured by a first priority security interest in certain real estate.

Contractual Obligations and Commercial Commitments

There have been no material changes in the Company’s contractual obligations and commercial commitments as described in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2021.

ITEM 3 – Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes from the Company’s quantitative and qualitative disclosures about market risk previously disclosed in the Company’s most recent Annual Report on Form 10-K. See discussion of the Company’s quantitative and qualitative disclosures about market risk under Part II, Item 7A in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2021.

- 23 -

ITEM 4 – Controls and Procedures

Disclosure Controls and Procedures

The Company carried out an evaluation under the supervision and the participation of the Company’s management, including the Company’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of November 30, 2021.

Changes in Internal Control over Financial Reporting

The CEO and CFO determined that there has not been any significant change to the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

- 24 -

Part II – OTHER INFORMATION

ITEM 1 – Legal Proceedings

See the disclosure in Note 8 – Commitments and Contingencies to the condensed consolidated financial statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q, which disclosure is hereby incorporated herein by reference.

ITEM 1A – Risk Factors

There have been no material changes from risk factors previously disclosed in the Company’s most recent Annual Report on Form 10-K. See the discussions of the Company’s risk factors under Part I, Item 1A in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2021.

ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds

None.

ITEM 3 – Defaults Upon Senior Securities

None.

ITEM 4 – Mine Safety Disclosures

Not applicable.

ITEM 5 – Other Information

None.

- 25 -

ITEM 6 – Exhibits

Exhibit
No.	Description
3.1	Restated Certificate of Incorporation of the Company, incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on December 14, 2006.
3.2	Amended and Restated By‑Laws of the Company, effective October 17, 2018, incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on October 19, 2018.
4.1	Specimen Form of Common Stock Certificate, incorporated by reference to Exhibit 4(a) of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2006.
10.1*	Lindsay Corporation Management Incentive Plan (MIP) 2022 Plan Year. † **
10.2*	Lindsay Corporation Policy on Payment of Director Fees and Expenses.
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.
32.1*	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.
101*	Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline Extensible Business Reporting Language ("Inline XBRL").
104*	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

† Management contract or compensatory plan or arrangement required to be filed as an exhibit hereto pursuant to Item 6 of Part II of Form 10-Q.

* Filed herein.

** Certain confidential portions of this exhibit were omitted by means of marking such portions with brackets and asterisks because the identified confidential portions (i) are not material and (ii) would be competitively harmful if publicly disclosed.

- 26 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 6th day of January 2022.

	LINDSAY CORPORATION
By:	/s/ BRIAN L. KETCHAM
Name:	Brian L. Ketcham
Title:	Senior Vice President and Chief Financial Officer
	(on behalf of the registrant and as principal financial officer)

- 27 -

EX-10.1

Exhibit 10.1

Certain identified information has been excluded from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

LINDSAY CORPORATION

MANAGEMENT INCENTIVE PLAN (MIP)

2022

Plan Year

____________________________

Senior Vice President - HR/Date

________________________

Chief Financial Officer/Date

________________________

Chief Executive Officer/Date

Table of Contents

1. Purpose	1
2. Definitions	1
3. Effective Date	2
4. Eligibility for Participation	2
5. Enrollment in the Plan	2&3
6. Determination of Target Payout Levels	3&4
7. Basis of Awards	4&5
8. Changes in Employment Status	6
9. Administration	6
10. Attachments .…….7

1. Purpose

The purpose of the Management Incentive Plan (the “Plan”) is to:

 Encourage performance consistent with the Company’s business strategy.

 Focus on near-term performance results as well as progress toward the achievement of long-term objectives.

 Strengthen the link between performance and pay by delivering awards based on measurable corporate and individual goals.

2. Definitions

The terms used in this Plan have the meanings set forth below.

A. “Company” shall mean Lindsay Corporation.

B. “Committee” shall mean the Human Resources and Compensation Committee of the Company’s Board of Directors.

C. “Financial Performance Component” shall mean the portion of a Participant’s Plan award that is based on the Company’s and specific Market financial performance as defined in Section 7B.

D. "Named Executive Officers" shall mean the executives of the Company listed in the Executive Compensation section of the Company’s Proxy Statement, other executive officers of the Company for SEC reporting purposes and any other elected officers.

E. “Participant” shall mean a key employee eligible for awards under the terms outlined in Section 4 of this Plan.

F. “Plan” shall mean Lindsay Corporation Management Incentive Plan.

G. “Strategic Goal Performance Component” shall mean the portion of a Participant’s Plan award that is based on a Participant’s or the Company’s performance relative to certain individual objectives or strategic goals established in accordance with Section 7C.

1

3. Effective Date

The Plan shall be effective as of September 1, 2021 and will be in effect for the 2022 bonus year. The 2022 bonus year is defined as September 1, 2021 through August 31, 2022.

4. Eligibility for Participation

A. Participation in the Plan is limited to individuals in positions which have significant responsibility for and impact on the Company’s corporate performance.

B. Only the Named Executive Officers are eligible to be considered for participation in the Plan.

C. Participation in the Plan does not guarantee or entitle any employee to participate in any bonus plan enacted in the future. Participation in the Plan at any target bonus level does not guarantee or entitle any employee to be eligible to participate at any similar target bonus level in any bonus plan which may be enacted in the future.

5. Enrollment in the Plan

A. Initial Enrollment

At the beginning of the Plan year, each Participant must be enrolled in the Plan subject to the approvals and eligibility criteria set forth in Sections 4 and 6. The enrollment process is as follows:

i. Plan Participants will participate in the Plan at the target percentage set forth opposite his or her name on Exhibit A.

ii. The Company’s Chief Executive Officer will review the participant list and projected bonus costs of enrolled employees with the Committee. The Committee provides final approval on the aggregate potential cost of the Plan.

2

B.

3

Mid-year Enrollment

When hiring or promoting employees during the Plan year who may be eligible for participation in the Plan, the following procedures must be followed:

i. Prior to the commencement of the recruiting or promotion process, the hiring manager consults with Human Resources to determine the position’s eligibility for participation in the Plan and the recommended target bonus amount.

ii. Offer letters indicating bonus Plan participation and target bonus award opportunities to new hires and/or promoted employees must be reviewed by the CEO or, in the case of a Named Executive Officer, by the Committee. Target bonus recommendations must be approved before communication to a prospective Participant. Generally, employees hired or promoted during the fourth quarter of fiscal 2022 are not eligible to participate in the 2022 Plan.

6. Determination of Target Payout Levels

A. Incentive awards will be calculated as a percentage of the Participant’s annual base salary received during the Plan year, provided that annual base salary increases which are made during the first quarter of the Plan year will be treated for purposes of calculating a Participant’s bonus as if they had been made at the beginning of the Plan year. The impact of promotions or other adjustments to base pay made after the annual pay adjustment noted above will be prorated for the time in effect. While award amounts will vary based on the range of award opportunity and an assessment of individual performance results, the target award opportunities for each Participant are set forth opposite his or her name on Exhibit A. Actual participation is subject to approval by the CEO and by the Committee. Actual participation is based on an assessment of the individual's position impact on the organization.

B. If a Participant’s Plan target award opportunity (Target % of Salary as set forth above) changes due to promotion into a grade level with a higher target bonus, the Participant’s bonus will be calculated based on his or her annual salary during the Plan year and a pro-rated bonus award. The pro-rated bonus award will reflect the portion of the Plan year spent in each grade level (e.g., 26 weeks at 40% and 26 weeks at 50%). In evaluating the performance of Participants who change positions during the Plan year, consideration will be given to the length of time and results in each position. Actual award decisions will be made by the CEO or, in the case of a Named Executive Officer, by the Committee. Generally, fourth quarter promotions will not result in an increase in a Participant’s target award opportunity.

C. Examples of various award calculations are included with this Plan document as Attachment

4

A.

D. The Committee will determine the award payments to the Named Executive Officers.

E. Award payments will be calculated on an annual basis and paid in accordance with the Company’s normal payroll cycle. Payments will be made within 75 days following the Plan year. The payment date may be changed at any time and for any reason at the discretion of the CEO, or in the case of a Named Executive Officer, with approval of the Committee, but may not be later than March 15 following the end of the Plan year for which the award is paid.

7. Basis of Awards

A. Measurable performance objectives for each Plan Participant will be established at the beginning of the Plan year (or at mid-year for mid-year hires or newly eligible employees). For the 2022 bonus year, consideration will be given to:

i. Financial Performance Component: Company and Market financial performance vs. Plan performance objectives in accordance with Section 7B.

ii. Strategic Goal Performance Component: Participant’s or Company’s performance relative to individual objectives or strategic goals established in accordance with Section 7C.

iii. Financial and Strategic Goal Performance Components will be added to reach a Participant’s total bonus. The relative weighting between these Components for each Participant is set forth opposite his or her name on Exhibit A.

B. At the beginning of the Plan year, the objectives for the Financial Performance Component are identified and approved by the Committee and are set forth on Exhibit B.

i. Recommended award amounts may range from 0 - 200% of the Financial Performance Component of the Participant’s target award, based on performance.

ii. Percentages between the threshold, intermediate, target, and maximum award will be interpolated.

iii. In the event of an acquisition, actual results for the selected financial performance metrics (e.g., revenue, operating margin) will be adjusted by subtracting the Board-approved business case for each acquisition for purposes of award payout calculations, unless the Committee approves a modification to

5

include any such items. Any transaction costs associated with any acquisition considered, pursued or closed shall be added back to profitability.

iv. In the event of a divestiture, actual results for the selected financial performance metrics will be adjusted by including the Board-approved budget (and removing actual performance results) for each divestiture for purposes of award payout calculations, unless the Committee approves a modification to any such items. If a planned divestiture is not included in the budget, its financial performance metrics will not be included in the calculation of the Financial Performance Component if the divestiture is not complete by the end of the fiscal year. Any transaction costs associated with any divestiture considered, pursued or closed shall be added back to profitability.

v. Award payout calculations shall exclude the positive or negative impact of any adjustments to the accrual for environmental remediation liability or unbudgeted expenses related to the existing contamination at the Lindsay facility as disclosed in the Company’s SEC filings.

vi. Award payout calculations shall be adjusted to remove Project Foundation consulting fees, if any, from the resulting operating margin calculation which were not included in the annual budget.

vii. Award payout calculations may be adjusted for any items of gain, loss or expense (i) from non-cash impairments; (ii) related to loss contingencies identified in the Company’s 10-K; (iii) that are unusual in nature or infrequent in occurrence; (iv) related to the disposal of a segment of a business; or (v) related to a change in accounting principle. The Plan also permits adjustments to remove the effects of changes in the tax law.

C. At the beginning of the Plan year, the objectives for the Strategic Goal Performance Component are identified and approved by the Committee and are set forth on Exhibit B.

i. Objectives under the Strategic Goal Performance Component may be linked to individual objectives or team-based goals, as appropriate.

ii. Recommended award amounts may range from 0% - 200% of the target amount under the Strategic Goal Performance Component. Recommended award amounts will be based on an assessment of the Participant or Company’s performance, as applicable, relative to objectives established under the Strategic Goal Performance Component as set forth on Exhibit B.

iii. The “Payout (as % of Target Individual Performance Component)” represents the payout relative to target award for the Strategic Goal Performance Component of the Plan.

6

8. Changes in Employment Status

A. Participants who cease to be employees of the Company during the Plan year will not be eligible to receive an award. Only active employees on the date that the bonus is paid will be eligible to receive an award. Any exceptions will require the approval of the CEO, or in the case of a Named Executive Officer, the Committee.

B. In the event that a Participant transfers out of an eligible position into an ineligible position within the Company, the employee may be eligible for a prorated bonus award based upon the approval of the CEO, or in the case of a Named Executive Officer, the Committee.

C. In all cases awards will be calculated and paid according to the provisions in Sections 6 and 7 of this Plan document.

9. Administration

A. General authority for Plan administration and responsibility for ongoing Plan administration will rest with the Committee of the Company’s Board of Directors. The Committee has sole authority for decisions regarding interpretation of the terms of this Plan.

B. The Company reserves the right to amend or change the Plan in whole or in part at any time during the Plan year. Amendments to the Plan require the approval of the Committee.

C. Participation in the Plan does not constitute a contract of employment nor a contractual agreement of payment. It shall not affect the right of the Company to discharge, transfer, or change the position of a Participant. The Plan shall not be construed to limit or prevent the Company from adopting or changing, from time to time, any rules, standards or procedures affecting the Participant’s employment with the Company or any Company affiliate, including those which affect bonus payouts.

D. If any provision of this Plan is found to be illegal, invalid or unenforceable under present or future laws, that provision shall be severed from the Plan. If such a provision is severed, this Plan shall be construed and enforced as if the severed provision had never been part of it and the remaining provisions of this Plan shall remain in full force and effect and shall not be affected by the severed provisions or by its severance from this Plan. In place of any severed provision there shall be added automatically as part of this Plan a provision as similar in terms to the severed provision as may be possible and be legal, valid and enforceable.

E. This is not an ERISA plan. This is a bonus program.

7

ATTACHMENT A

Award Calculation Guidelines

The following examples are to be used as guidelines in calculating bonus awards at the end of the 2022 Plan year. Managers should use their discretion in calculating actual bonus awards and may consider exceptions to the calculations below when necessary. Any such exceptions must be fully documented and are subject to review and approval by the Chief Executive Officer, or in the case of a Named Executive Officer, the Committee.

Full Year Participation		Mid-Year Promotion
Strategic Goal Performance Score:	100	Strategic Goal Performance Score:	100
Financial Performance Score:	100.00%	Financial Performance Score:	100.00%
		Pre-Promotion Calculation
Strategic Goal Score	100	Strategic Goal Score	100
Total Incentive Plan %	40%	Total Incentive Plan %	40%
% Strategic to Total Incentive Plan Participation	20%	% Strategic to Total Incentive Plan Participation	20%
Base Salary	$150,000	Base Salary	$150,000
Strategic Goal Performance Payout	$12,000	Strategic Goal Performance Payout	$12,000
Financial Score	100%	Financial Score	100%
Total Incentive Plan %	40%	Total Incentive Plan %	40%
% Financial to Total Incentive Plan Participation	80%	% Financial to Total Incentive Plan Participation	80%
Base Salary	$150,000	Base Salary	$150,000
Financial Performance Payout	$48,000	Financial Performance Payout	$48,000
Incentive Amount	$60,000	Incentive Amount	$60,000
Time Period (weeks)	52	Time Period (weeks)	26
Proration Factor	1	Proration Factor	0.5
Prorated Payout for Time Period	$60,000	Prorated Payout for Time Period	$30,000
Partial Year Participation
Strategic Goal Performance Score:	100
Financial Performance Score:	100.00%
		Post Promotion Calculation
Strategic Goal Score	100	Strategic Goal Score	100
Total Incentive Plan %	40%	Total Incentive Plan %	50%
% Strategic to Total Incentive Plan Participation	20%	% Strategic to Total Incentive Plan Participation	20%
Base Salary	$150,000	Base Salary	$200,000
Strategic Goal Performance Payout	$12,000	Strategic Goal Performance Payout	$20,000
Financial Score	100%	Financial Score	100%
Total Incentive Plan %	40%	Total Incentive Plan %	50%
% Financial to Total Incentive Plan Participation	80%	% Financial to Total Incentive Plan Participation	80%
Base Salary	$150,000	Base Salary	$200,000
Financial Performance Payout	$48,000	Financial Performance Payout	$80,000
Incentive Amount	$60,000	Incentive Amount	$100,000
Time Period (weeks)	30	Time Period (weeks)	26
Proration Factor	0.57692	Proration Factor	0.5
Prorated Payout for Time Period	$34,615	Prorated Payout for Time Period	$50,000
		Total Prorated Incentive Amount	$80,000

8

[**The appendix that includes Financial Performance and Strategic Goal Component Elements and Weighting for Fiscal Year 2022 constitutes confidential information and has been omitted from this filing because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.**]

9

EX-10.2

Exhibit 10.2

LINDSAY CORPORATION

POLICY ON PAYMENT OF DIRECTOR FEES AND EXPENSES

(Adopted at Board of Directors Meeting on January 25, 2000, as amended at Board of Directors Meetings

on December 5, 2003, July 13, 2004, January 29, 2007, May 4, 2007, July 2, 2008, December 1, 2011,

November 29, 2012, September 26, 2013, September 20, 2016, October 17, 2018 and October 18, 2021)

Outside Directors who are not employees of the Company are compensated or have expenses reimbursed as follows, effective September 1, 2021:

- $75,000 Annual Fee as Director: Payment of $18,750 is made by check or electronic payment in December, March, June and September ($75,000 total).

- $70,000 Annual Fee as Chairman of Board of Directors: Payment of $17,500 is made by check or electronic payment in December, March, June and September ($70,000 total) in addition to the annual fee as a Director, if the Chairman of the Board is an outside Director; provided that the Chairman of the Board may not also receive an additional fee for serving as Chairman of any standing or special committee.

- $20,000 Annual Fee as Chairman of the Audit Committee, $15,000 Annual Fee as Chairman of the Compensation Committee and $15,000 Annual Fee as Chairman of the Corporate Governance and Nominating Committee: Payment of one-quarter of the fee is made by check or electronic payment in December, March, June and September in addition to the annual fee as a Director; provided that the annual fee to serve as the Chairman of any Committee shall not be payable if the Chairman of such Committee is also serving as Chairman of the Board of Directors.

- Lindsay will reimburse outside Directors for actual and reasonable expenses they incur associated with travel for Lindsay meetings or other Lindsay business, including first class commercial airfare (or travel by private plane for distances of less than 1,000 miles if commercial air travel is difficult or inconvenient or more than 1,000 miles if authorized or approved by the Chairman of the Board of Directors or the Chairman of the Audit Committee), car rental, taxi, parking, meals, tips and hotel expenses. Reimbursement for other expenses may be authorized or approved by the Chairman of the Board of Directors or the Chairman of the Audit Committee.

- Directors who are not employees of the Company receive annual grants of restricted stock units with an award value of $100,000 with the grant being made on the date of the annual meeting of stockholders. The number of units awarded will equal $100,000 divided by the closing stock price on the date of grant. These restricted stock units vest on November 1 following the date of grant.

- New directors who are not employees of the Company that join the Board of Directors at a time other than the annual meeting of stockholders receive a one-time grant of restricted stock units with an award value equal to the prorated amount of the last annual grant of restricted stock units based on the amount of time the new director will serve on the Board of Directors until the next annual meeting of stockholders, with the grant being made on the date of their first regular Board meeting as a director. The number of units awarded will equal the prorated amount divided by the closing stock price on the date of grant. These restricted stock units vest on the earlier of November 1 following the date of grant or the date of the next annual meeting of stockholders. For the sake of clarity, this prorated grant of restricted stock units will not apply to a new director who joins the Board of Directors at an annual meeting of the stockholders.

603644.4 6/25/04 - 1 -

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Randy A. Wood, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Lindsay Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ RANDY A. WOOD	President and Chief Executive Officer
Randy A. Wood	January 6, 2022

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Brian L. Ketcham, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Lindsay Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ BRIAN L. KETCHAM	Senior Vice President and Chief Financial Officer
Brian L. Ketcham	January 6, 2022

EX-32.1

EXHIBIT 32.1

CERTIFICATION

In connection with the accompanying Quarterly Report on Form 10-Q (the “Report”) of Lindsay Corporation (the “Company”) for the quarter ended November 30, 2021, I, Randy A. Wood, Chief Executive Officer of the Company and I, Brian L. Ketcham, Chief Financial Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ RANDY A. WOOD

Randy A. Wood

President and Chief Executive Officer

/s/ BRIAN L. KETCHAM

Brian L. Ketcham

Senior Vice President and Chief Financial Officer

January 6, 2022

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Document And Entity Information - shares	3 Months Ended
	Nov. 30, 2021	Jan. 04, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 30, 2021
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Trading Symbol	LNN
Entity Registrant Name	Lindsay Corporation
Entity Central Index Key	0000836157
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--08-31
Entity Filer Category	Large Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity File Number	1-13419
Entity Tax Identification Number	47-0554096
Entity Address, Address Line One	18135 Burke Street
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Omaha
Entity Address, State or Province	NE
Entity Address, Country	US
Entity Address, Postal Zip Code	68022
City Area Code	402
Local Phone Number	829-6800
Entity Common Stock, Shares Outstanding		10,972,392
Entity Interactive Data Current	Yes
Entity Ex Transition Period	Common Stock, $1.00 par value
Security Exchange Name	NYSE
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE

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Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Income Statement [Abstract]
Operating revenues	$ 166,152	$ 108,485
Cost of operating revenues	128,714	77,077
Gross profit	37,438	31,408
Operating expenses:
Selling expense	7,990	7,331
General and administrative expense	12,880	13,452
Engineering and research expense	3,207	3,090
Total operating expenses	24,077	23,873
Operating income	13,361	7,535
Other (expense) income:
Interest expense	(1,163)	(1,201)
Interest income	177	303
Other expense, net	(2,900)	246
Total other (expense) income	(3,886)	(652)
Earnings before income taxes	9,475	6,883
Income tax expense (benefit)	1,574	(212)
Net earnings	$ 7,901	$ 7,095
Earnings per share:
Basic	$ 0.72	$ 0.65
Diluted	$ 0.72	$ 0.65
Shares used in computing earnings per share:
Basic	10,927	10,845
Diluted	11,026	10,888
Cash dividends declared per share	$ 0.33	$ 0.32

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Statement of Comprehensive Income [Abstract]
Net earnings	$ 7,901	$ 7,095
Other comprehensive (loss) income:
Defined benefit pension plan adjustment, net of tax	49	43
Foreign currency translation adjustment, net of hedging activities and tax	(3,350)	1,384
Unrealized loss on marketable securities, net of tax	(57)	(32)
Total other comprehensive (loss) income, net of tax expense of $2 and $32, respectively	(3,358)	1,395
Total comprehensive income	$ 4,543	$ 8,490

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Statement of Comprehensive Income [Abstract]
Other comprehensive (loss) income, tax expense	$ 2	$ 32

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021	Nov. 30, 2020
Current assets:
Cash and cash equivalents	$ 84,719	$ 127,107	$ 126,802
Marketable securities	30,195	19,604	19,624
Receivables, net of allowance of $3,398, $2,960, and $3,422, respectively	111,959	93,609	74,909
Inventories, net	173,115	145,244	114,278
Other current assets, net	26,345	30,539	20,837
Total current assets	426,333	416,103	356,450
Property, plant, and equipment:
Cost	230,268	229,000	212,725
Less accumulated depreciation	(138,629)	(137,003)	(131,430)
Property, plant, and equipment, net	91,639	91,997	81,295
Intangibles, net	19,827	20,367	22,817
Goodwill	67,735	67,968	68,027
Operating lease right-of-use assets	17,584	18,281	26,008
Deferred income tax assets	6,157	8,113	9,924
Other noncurrent assets	20,170	14,356	10,681
Total assets	649,445	637,185	575,202
Current liabilities:
Accounts payable	58,908	45,209	36,263
Current portion of long-term debt	219	217	214
Other current liabilities	88,655	92,814	65,910
Total current liabilities	147,782	138,240	102,387
Pension benefits liabilities	5,660	5,754	6,293
Long-term debt	115,471	115,514	115,641
Operating lease liabilities	17,679	18,301	24,863
Deferred income tax liabilities	798	832	902
Other noncurrent liabilities	20,112	20,099	21,215
Total liabilities	307,502	298,740	271,301
Shareholders' equity:
Preferred stock of $1 par value - authorized 2,000 shares; no shares issued and outstanding	0	0	0
Common stock of $1 par value - authorized 25,000 shares; 19,056, 18,948, and 18,991 shares issued, respectively	19,056	18,991	18,948
Capital in excess of stated value	89,006	86,495	78,026
Retained earnings	532,410	528,130	503,342
Less treasury stock - at cost, 8,083 shares	(277,238)	(277,238)	(277,238)
Accumulated other comprehensive loss, net	(21,291)	(17,933)	(19,177)
Total shareholders' equity	341,943	338,445	303,901
Total liabilities and shareholders' equity	$ 649,445	$ 637,185	$ 575,202

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021	Nov. 30, 2020
Statement of Financial Position [Abstract]
Receivables, allowance	$ 3,398	$ 3,422	$ 2,960
Preferred stock, par value	$ 1	$ 1	$ 1
Preferred stock, authorized	2,000,000	2,000,000	2,000,000
Preferred stock, issued	0	0	0
Preferred stock, outstanding	0	0	0
Common stock, par value	$ 1	$ 1	$ 1
Common stock, authorized	25,000,000	25,000,000	25,000,000
Common stock, issued	19,056,000	18,991,000	18,948,000
Treasury stock, shares	8,083,000	8,083,000	8,083,000

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Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Capital In Excess Of Stated Value [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss, Net [Member]
Beginning balance, value at Aug. 31, 2020	$ 298,518	$ 18,918	$ (277,238)	$ 77,686	$ 499,724	$ (20,572)
Beginning balance, shares at Aug. 31, 2020		18,918	8,083
Net earnings	7,095	$ 0	$ 0	0	7,095	0
Other comprehensive income (loss)	1,395	0	0	0	0	1,395
Total comprehensive income	8,490	0	0	0	0	0
Cash dividends per share	(3,477)	0	0	0	(3,477)	0
Issuance of common shares under share compensation plans, net	(1,213)	$ 30	$ 0	(1,243)	0	0
Issuance of common shares under share compensation plans, net, shares		30	0
Share-based compensation expense	1,583	$ 0	$ 0	1,583	0	0
Ending balance, value at Nov. 30, 2020	303,901	$ 18,948	$ (277,238)	78,026	503,342	(19,177)
Ending Balance, shares at Nov. 30, 2020		18,948	8,083
Beginning balance, value at Aug. 31, 2021	338,445	$ 18,991	$ (277,238)	86,495	528,130	(17,933)
Beginning balance, shares at Aug. 31, 2021		18,991	8,083
Net earnings	7,901	$ 0	$ 0	0	7,901	0
Other comprehensive income (loss)	(3,358)	0	0	0	0	(3,358)
Total comprehensive income	4,543	0	0	0	0	0
Cash dividends per share	(3,621)	0	0	0	(3,621)	0
Issuance of common shares under share compensation plans, net	1,354	$ 65	$ 0	1,289	0	0
Issuance of common shares under share compensation plans, net, shares		65	0
Share-based compensation expense	1,222	$ 0	$ 0	1,222	0	0
Ending balance, value at Nov. 30, 2021	$ 341,943	$ 19,056	$ (277,238)	$ 89,006	$ 532,410	$ (21,291)
Ending Balance, shares at Nov. 30, 2021		19,056	8,083

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Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Statement of Stockholders' Equity [Abstract]
Cash dividends per share	$ 0.33	$ 0.32

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 7,901	$ 7,095
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Depreciation and amortization	4,896	5,140
Provision for uncollectible accounts receivable	91	158
Deferred income taxes	1,841	140
Share-based compensation expense	1,222	1,583
Unrealized foreign currency transaction loss (gain)	2,193	(203)
Other, net	292	36
Changes in assets and liabilities:
Receivables	(17,816)	8,896
Inventories	(31,674)	(8,294)
Other current assets	5,965	(3,068)
Accounts payable	12,462	7,286
Other current liabilities	(3,632)	(7,146)
Other noncurrent assets and liabilities	(7,920)	3,750
Net cash (used in) provided by operating activities	(24,179)	15,373
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment	(3,061)	(5,614)
Purchases of marketable securities available-for-sale	(14,354)	(3,844)
Proceeds from maturities of marketable securities available-for-sale	3,599	3,616
Other investing activities, net	(342)	0
Net cash used in investing activities	(14,158)	(5,842)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	2,442	56
Common stock withheld for payroll tax obligations	(1,181)	(1,269)
Proceeds from employee stock purchase plan	93	0
Principal payments on long-term debt	(54)	(35)
Dividends paid	(3,621)	(3,477)
Net cash used in financing activities	(2,321)	(4,725)
Effect of exchange rate changes on cash and cash equivalents	(1,730)	593
Net change in cash and cash equivalents	(42,388)	5,399
Cash and cash equivalents, beginning of period	127,107	121,403
Cash and cash equivalents, end of period	84,719	126,802
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net of refunds	341	418
Interest paid	$ 51	$ 77

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Basis of Presentation

3 Months Ended

Nov. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Note 1 – Basis of Presentation

The condensed consolidated financial statements are presented in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and do not include all of the disclosures normally required by U.S. generally accepted accounting principles (“U.S. GAAP”) as contained in Lindsay Corporation’s (the “Company”) Annual Report on Form 10-K. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended August 31, 2021.

In the opinion of management, the condensed consolidated financial statements of the Company reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and the results of operations and cash flows for the periods presented. The results for interim periods are not necessarily indicative of trends or results expected by the Company for a full year. The condensed consolidated financial statements were prepared using U.S. GAAP. These principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from these estimates.

Recent Accounting Guidance Adopted

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting and related disclosure requirements for income taxes. The Company adopted this standard in the first quarter of its fiscal 2022. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements.

In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. The Company adopted this in the first quarter of the Company’s fiscal 2021. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill; rather, an entity will measure its goodwill impairment by the amount the carrying value exceeds the fair value of a reporting unit. The Company adopted this in the first quarter of the Company’s fiscal 2021. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures. 

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Revenue Recognition

3 Months Ended

Nov. 30, 2021

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, 2021 and November 30, 2020 is as follows:

	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
	Three months ended
	November 30, 2020
($ in thousands)	Irrigation		Infrastructure		Total
Point in time	$	80,060	$	15,452	$	95,512
Over time		7,296		1,639		8,935
Revenue from the contracts with customers		87,356		17,091		104,447
Lease revenue		—		4,038		4,038
Total operating revenues	$	87,356	$	21,129	$	108,485

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 $7.3 million at November 30, 2021.

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, 2021, November 30, 2020, and August 31, 2021, contract assets amounted to $1.2 million, $1.2 million, and $1.3 million, respectively. These amounts are included within other current assets on the condensed consolidated balance sheet.

Contract liabilities include advance payments from customers and billings in excess of delivery of performance obligations. At November 30, 2021, November 30, 2020, and August 31, 2021, contract liabilities amounted to $41.1 million, $21.3 million, and $37.4 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, 2021 and November 30, 2020, the Company recognized $12.7 million and $6.5 million of revenue that were included in the liabilities as of August 31, 2021 and 2020, respectively. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter.

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Net Earnings Per Share

3 Months Ended

Nov. 30, 2021

Earnings Per Share [Abstract]

Net Earnings Per Share

Note 3 – Net Earnings per Share

Basic earnings per share is calculated on the basis of weighted average outstanding common shares. Diluted earnings per share is calculated on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, restricted stock unit awards and other dilutive securities.

The following table shows the computation of basic and diluted net earnings per share for the three months ended November 30, 2021 and 2020:

	Three months ended
($ and shares in thousands, except per share amounts)	November 30, 2021		November 30, 2020
Numerator:
Net earnings	$	7,901	$	7,095
Denominator:
Weighted average shares outstanding		10,927		10,845
Diluted effect of stock awards		99		43
Weighted average shares outstanding assuming    dilution		11,026		10,888
Basic net earnings per share	$	0.72	$	0.65
Diluted net earnings per share	$	0.72	$	0.65

Certain stock options and restricted stock units were excluded from the computation of diluted net earnings per share because their effect would have been anti-dilutive. Performance stock units are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. The following table shows the securities excluded from the computation of earnings per share because their effect would have been anti-dilutive:

	Three months ended
(Units and options in thousands)	November 30, 2021		November 30, 2020
Stock options		10		79
Performance stock units		2		10

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Income Taxes

3 Months Ended

Nov. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 4 – Income Taxes

The Company recorded income tax expense of $1.6 million and an income tax benefit of $0.2 million for the three months ended November 30, 2021 and 2020, respectively.

It is the Company’s policy to report income tax expense for interim periods using an estimated annual effective income tax rate. The estimated annual effective income tax rate was 24.2 percent and 23.8 percent for the three months ended November 30, 2021 and 2020, respectively.

The tax effects of significant or unusual items are not considered in the estimated annual effective income tax rate. The tax effects of such discrete events are recognized in the interim period in which the events occur. The Company recorded discrete items resulting in an income tax benefit of $0.7 million and $1.8 million for the three months ended November 30, 2021 and 2020, respectively. The discrete items recorded in the three months ended November 30, 2021 include a benefit of $0.7 million related to the vesting of share-based compensation awards, and the discrete items recorded in the three months ended November 30, 2020 include a benefit of $1.7 million related to the release of a valuation allowance related to net operating loss carryforwards in a foreign jurisdiction.

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Inventories

3 Months Ended

Nov. 30, 2021

Inventory Disclosure [Abstract]

Inventories

Note 5 – Inventories

Inventories consisted of the following as of November 30, 2021, November 30, 2020, and August 31, 2021:

($ in thousands)	November 30, 2021	November 30, 2020	August 31, 2021
Raw materials and supplies	$78,102	$52,374	$69,962
Work in process	12,227	8,041	8,301
Finished goods and purchased parts, net	90,676	58,284	75,053
Total inventory value before LIFO adjustment	181,005	118,699	153,316
Less adjustment to LIFO value	(7,890)	(4,421)	(8,072)
Inventories, net	$173,115	$114,278	$145,244

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Long-Term Debt

3 Months Ended

Nov. 30, 2021

Debt Disclosure [Abstract]

Long-Term Debt

Note 6 – Long-Term Debt

The following table sets forth the outstanding principal balances of the Company’s long-term debt as of the dates shown:

($ in thousands)	November 30, 2021	November 30, 2020	August 31, 2021
Series A Senior Notes	$115,000	$115,000	$115,000
Elecsys Series 2006A Bonds	1,096	1,309	1,148
Total debt	116,096	116,309	116,148
Less current portion	(219)	(214)	(217)
Less unamortized debt issuance costs	(406)	(454)	(417)
Total long-term debt	$115,471	$115,641	$115,514

Principal payments on the debt are due as follows:

Due within	$ in thousands
1 year	$	219
2 years		222
3 years		227
4 years		231
5 years		197
Thereafter		115,000
	$	116,096

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Fair Value Measurements

3 Months Ended

Nov. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 7 – Fair Value Measurements

The following table presents the Company’s financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of November 30, 2021, November 30, 2020, and August 31, 2021. There were no transfers between any levels for the periods presented.

	November 30, 2021
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	84,719	$	—	$	—		$	84,719
Marketable securities:
Corporate bonds		—		26,503		—			26,503
U.S. treasury securities		—		3,692		—			3,692
	November 30, 2020
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	126,802	$	—	$	—		$	126,802
Marketable securities:
Corporate bonds		—		14,564		—			14,564
U.S. treasury securities		—		5,060		—			5,060
Earn-out liability		—		—		(1,112	)		(1,112	)
	August 31, 2021
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	127,107	$	—	$	—		$	127,107
Marketable securities:
Corporate bonds		—		15,484		—			15,484
U.S. treasury securities		—		4,120		—			4,120
Earn-out liability		—		—		(250	)		(250	)

The Company’s investment in marketable securities consists of United States treasury bonds and investment grade corporate bonds. The marketable securities are classified as available-for-sale and are carried at fair value with the change in unrealized gains and losses reported as a separate component on the condensed consolidated statements of comprehensive income until realized. The Company determines fair value using data points that are observable, such as quoted prices and interest rates. The amortized cost of the investments approximates fair value. Investment income is recorded within other (expense) income on the condensed consolidated statements of earnings. As of November 30, 2021, approximately 65% of the Company’s marketable securities investments mature within one year and 35% mature within one to five years.

The Company’s earn-out liability relates to its acquisition of Net Irrigate, LLC during the third quarter of fiscal 2020 and was settled in full during the first quarter of fiscal 2022.

There were no required fair value adjustments for assets and liabilities measured at fair value on a non-recurring basis for the three months ended November 30, 2021 or 2020.

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Commitments and Contingencies

3 Months Ended

Nov. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8 – Commitments and Contingencies

In the ordinary course of its business operations, the Company enters into arrangements that obligate it to make future payments under contracts such as lease agreements. Additionally, the Company is involved, from time to time, in commercial litigation, employment disputes, administrative proceedings, business disputes and other legal proceedings. The Company has established accruals for certain proceedings based on an assessment of probability of loss. The Company believes that any such currently-pending proceedings are either covered by insurance or would not have a material effect on the business or its consolidated financial statements if decided in a manner that is unfavorable to the Company. Such proceedings are exclusive of environmental remediation matters which are discussed separately below.

Infrastructure Products

The Company is currently defending a number of product liability lawsuits arising out of vehicle collisions with highway barriers incorporating the Company’s X-Lite® end terminal. Despite the September 2018 reversal of a sizable judgment against a competitor, the Company expects that the significant attention brought to the infrastructure products industry by the original judgment may lead to additional lawsuits being filed against the Company and others in the industry.

The Company, certain of its subsidiaries, and certain third parties which originally designed the X-Lite end terminal have also been named in a lawsuit filed on June 9, 2020 in the Circuit Court of Cole County, Missouri by Missouri Highways and Transportation Commission (“MHTC”). MHTC alleges, among other things, that the X-Lite end terminal was defectively designed and failed to perform as designed, intended, and advertised, leading to MHTC’s removal and replacement of X-Lite end terminals from Missouri’s roadways. MHTC alleges strict liability (defective design and failure to warn), negligence, breach of express warranties, breach of implied warranties (merchantability and fitness for a particular purpose), fraud, and public nuisance. MHTC seeks compensatory damages, interest, attorneys’ fees, and punitive damages.

The Company believes it has meritorious factual and legal defenses to each of the lawsuits discussed above and is prepared to vigorously defend its interests. Based on the information currently available to the Company, the Company does not believe that a loss is probable in any of these lawsuits; therefore, no accrual has been included in the Company’s consolidated financial statements. While it is possible that a loss may be incurred, the Company is unable to estimate a range of potential loss due to the complexity and current status of these lawsuits. However, the Company maintains insurance coverage to mitigate the impact of adverse exposures in these lawsuits and does not expect that these lawsuits will have a material adverse effect on its business or its consolidated financial statements.

In June 2019, the Company was informed by letter that the Department of Justice, Civil Division and U.S. Attorney’s Office for the Northern District of New York, with the assistance of the Department of Transportation, Office of Inspector General, are conducting an investigation of the Company relating to the Company’s X-Lite end terminal and potential violations of the federal civil False Claims Act. Depending on the outcome of this matter, there could be a material adverse effect on the Company’s business or its consolidated financial statements. Given the current posture of the matter, the Company is unable to estimate a range of potential loss, if any, or to express an opinion regarding the ultimate outcome.

Environmental Remediation

In previous years, the Company committed to a plan to remediate environmental contamination of the groundwater at and adjacent to its Lindsay, Nebraska facility (the “site”). The current estimated aggregate accrued cost of $16.1 million is based on consideration of remediation options which the Company believes could be successful in meeting the long-term regulatory requirements of the site. The Company submitted a revised remedial alternatives evaluation report to the U.S. Environmental Protection Agency (“EPA”) and the Nebraska Department of Environment and Energy (the “NDEE”) in August 2020 to

review remediation alternatives and proposed plans for the site. The proposed remediation plan is preliminary and has not been approved by the EPA or the NDEE. Based on guidance from third-party environmental experts and the preliminary discussions with the regulatory agencies, the Company anticipates that a definitive plan will not be agreed upon until the first half of calendar 2022 or later. Of the total liability as of both August 31, 2021 and 2020, $11.0 million was calculated on a discounted basis using a discount rate of 1.2%, which represents a risk-free rate. This discounted portion of the liability amounts to $12.4 million on an undiscounted basis.

The Company accrues the anticipated cost of investigation and remediation when the obligation is probable and can be reasonably estimated. While the plan has not been formally approved by the EPA, the Company believes the current accrual is a good faith estimate of the long-term cost of remediation at this site; however, the estimate of costs and their timing could change as a result of a number of factors, including but not limited to (1) EPA input on the proposed remediation plan and any changes which the EPA may subsequently require, (2) refinement of cost estimates and length of time required to complete remediation and post-remediation operations and maintenance, (3) effectiveness of the technology chosen in remediation of the site as well as changes in technology that may be available in the future, and (4) unforeseen circumstances existing at the site. As a result of these factors, the actual amount of costs incurred by the Company in connection with the remediation of contamination of its Lindsay, Nebraska site could exceed the amounts accrued for this expense at this time. While any revisions could be material to the operating results of any fiscal quarter or fiscal year, the Company does not expect such additional expenses would have a material adverse effect on its liquidity or financial condition.

The following table summarizes the undiscounted environmental remediation liability classifications included in the condensed consolidated balance sheets as of November 30, 2021, November 30, 2020, and August 31, 2021:

($ in thousands)	November 30, 2021		November 30, 2020		August 31, 2021
Other current liabilities	$	828	$	1,105	$	965
Other noncurrent liabilities		15,181		15,021		15,128
Total environmental remediation liabilities	$	16,009	$	16,126	$	16,093

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Warranties

3 Months Ended

Nov. 30, 2021

Product Warranties Disclosures [Abstract]

Warranties

Note 9 – Warranties

The following table provides the changes in the Company’s product warranties:

	Three months ended
($ in thousands)	November 30, 2021			November 30, 2020
Product warranty accrual balance, beginning of period	$	12,736		$	10,765
Liabilities accrued for warranties during the period		2,394			1,734
Warranty claims paid during the period		(2,751	)		(1,641	)
Product warranty accrual balance, end of period	$	12,379		$	10,858

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Share-Based Compensation

3 Months Ended

Nov. 30, 2021

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

Note 10 – Share-Based Compensation

The Company’s current share-based compensation plans, approved by the stockholders of the Company, provides for awards of stock options, restricted shares, restricted stock units (“RSUs”), stock appreciation rights, performance shares, and performance stock units (“PSUs”) to employees and non-employee directors of the Company. The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. Share-based compensation expense was $1.3 million and $1.7 million for the three months ended November 30, 2021 and 2020, respectively.

The following table illustrates the type and fair value of share-based compensation awards granted during the three months ended November 30, 2021 and 2020, respectively:

	Three months ended
	November 30, 2021				November 30, 2020
	Number of units granted		Weighted average grant-date fair value per award		Number of units granted		Weighted average grant-date fair value per award
Stock options		21,137	$	41.80		35,168	$	30.68
RSUs		20,099	$	141.99		26,314	$	106.72
PSUs		12,122	$	147.74		19,533	$	125.23

The RSUs granted during the three months ended November 30, 2021 and 2020 included 2,248 and 2,162 awards, respectively, that will be settled in cash. The weighted average stock price on the date of grant was $145.93 and $110.21 per award for the three months ended November 30, 2021 and 2020, respectively. Share issuances are presented net of share repurchases to cover payroll taxes of $1.2 million and $1.3 million for the three months ended November 30, 2021 and 2020, respectively.

The following table provides the assumptions used in determining the fair value of the stock options awarded during the three months ended November 30, 2021 and 2020, respectively:

	Three months ended November 30,
	2021			2020
Weighted-average dividend yield		0.9	%		1.2	%
Weighted-average volatility		33.8	%		32.8	%
Risk-free interest rate		1.2	%		0.5	%
Weighted-average expected life (years)		5			6

The PSUs granted during fiscal 2022 include performance goals based on a return on invested capital ("ROIC") and total shareholder return ("TSR") relative to the Company's peers during the performance period. The awards actually earned will range from zero to two hundred percent of the targeted number of PSUs and will be paid in shares of common stock. Shares earned will be distributed upon vesting on the first day of November following the end of the three-year performance period. For the ROIC portion of the award, the Company is accruing compensation expense based on the estimated number of shares expected to be issued utilizing the most current information available to the Company at the date of the consolidated financial statements. For the TSR portion of the award, compensation expense is recorded ratably over the three-year term of the award based on the estimated grant date fair value.

The fair value of the TSR portion of the awards granted during the three months ended November 30, 2021 and 2020 was estimated at the grant date using a Monte Carlo simulation model which included the following assumptions:

	Three months ended November 30,
	2021			2020
Expected term (years)		3			3
Risk-free interest rate		0.7	%		0.2	%
Volatility		39.1	%		38.6	%
Dividend yield		0.9	%		1.2	%

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Other Current Liabilities

3 Months Ended

Nov. 30, 2021

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

Note 11 – Other Current Liabilities

($ in thousands)	November 30, 2021		November 30, 2020		August 31, 2021
Other current liabilities:
Contract liabilities	$	39,747	$	18,497	$	36,060
Compensation and benefits		13,460		13,759		21,623
Warranties		12,379		10,858		12,736
Dealer related liabilities		4,180		3,696		3,971
Operating lease liabilities		3,787		5,004		3,991
Tax related liabilities		1,639		443		1,072
Deferred revenue - lease		1,201		3,165		3,456
Accrued insurance		893		1,253		1,123
Accrued environmental liabilities		828		1,105		965
Other		10,541		8,130		7,817
Total other current liabilities	$	88,655	$	65,910	$	92,814

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Share Repurchases

3 Months Ended

Nov. 30, 2021

Equity [Abstract]

Share Repurchases

Note 12 – Share Repurchases

There were no shares repurchased during the three months ended November 30, 2021 and 2020 under the Company’s share repurchase program. The remaining amount available under the repurchase program was $63.7 million as of November 30, 2021.

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Industry Segment Information

3 Months Ended

Nov. 30, 2021

Segment Reporting [Abstract]

Industry Segment Information

Note 13 – Industry Segment Information

The Company manages its business activities in two reportable segments: irrigation and infrastructure. The Company evaluates the performance of its reportable segments based on segment revenues, gross profit and operating income, with operating income for segment purposes excluding unallocated corporate general and administrative expenses, interest income, interest expense, other income and expenses and income taxes. Operating income for segment purposes includes general and administrative expenses, selling expenses, engineering and research expenses and other overhead charges directly attributable to the segment. There are no inter-segment sales included in the amounts disclosed. The Company had no single customer who represented 10 percent or more of its total revenues during the three months ended November 30, 2021 or 2020.

Irrigation - This reporting segment includes the manufacture and marketing of center pivot, lateral move and hose reel irrigation systems and large diameter steel tubing as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial internet of things, or “IIoT”, solutions. The irrigation reporting segment consists of one operating segment.

Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment. The infrastructure reporting segment consists of one operating segment.

	Three months ended
($ in thousands)	November 30, 2021			November 30, 2020
Operating revenues:
Irrigation:
North America	$	78,976		$	52,790
International		66,933			34,566
Irrigation total		145,909			87,356
Infrastructure		20,243			21,129
Total operating revenues	$	166,152		$	108,485
Operating income:
Irrigation	$	17,212		$	10,633
Infrastructure		2,766			4,256
Corporate		(6,617	)		(7,354	)
Total operating income		13,361			7,535
Interest and other expense, net		(3,886	)		(652	)
Earnings before income taxes	$	9,475		$	6,883

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Basis of Presentation (Policies)

3 Months Ended

Nov. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

New Accounting Pronouncements

Recent Accounting Guidance Adopted

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting and related disclosure requirements for income taxes. The Company adopted this standard in the first quarter of its fiscal 2022. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements.

In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. The Company adopted this in the first quarter of the Company’s fiscal 2021. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill; rather, an entity will measure its goodwill impairment by the amount the carrying value exceeds the fair value of a reporting unit. The Company adopted this in the first quarter of the Company’s fiscal 2021. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures. 

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Revenue Recognition (Tables)

3 Months Ended

Nov. 30, 2021

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue by Segment

A breakout by segment of revenue recognized over time versus at a point in time for the three months ended November 30, 2021 and November 30, 2020 is as follows:

	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
	Three months ended
	November 30, 2020
($ in thousands)	Irrigation		Infrastructure		Total
Point in time	$	80,060	$	15,452	$	95,512
Over time		7,296		1,639		8,935
Revenue from the contracts with customers		87,356		17,091		104,447
Lease revenue		—		4,038		4,038
Total operating revenues	$	87,356	$	21,129	$	108,485

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Net Earnings Per Share (Tables)

3 Months Ended

Nov. 30, 2021

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Earnings Per Share

The following table shows the computation of basic and diluted net earnings per share for the three months ended November 30, 2021 and 2020:

	Three months ended
($ and shares in thousands, except per share amounts)	November 30, 2021		November 30, 2020
Numerator:
Net earnings	$	7,901	$	7,095
Denominator:
Weighted average shares outstanding		10,927		10,845
Diluted effect of stock awards		99		43
Weighted average shares outstanding assuming    dilution		11,026		10,888
Basic net earnings per share	$	0.72	$	0.65
Diluted net earnings per share	$	0.72	$	0.65

Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share

The following table shows the securities excluded from the computation of earnings per share because their effect would have been anti-dilutive:

	Three months ended
(Units and options in thousands)	November 30, 2021		November 30, 2020
Stock options		10		79
Performance stock units		2		10

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Inventories (Tables)

3 Months Ended

Nov. 30, 2021

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following as of November 30, 2021, November 30, 2020, and August 31, 2021:

($ in thousands)	November 30, 2021	November 30, 2020	August 31, 2021
Raw materials and supplies	$78,102	$52,374	$69,962
Work in process	12,227	8,041	8,301
Finished goods and purchased parts, net	90,676	58,284	75,053
Total inventory value before LIFO adjustment	181,005	118,699	153,316
Less adjustment to LIFO value	(7,890)	(4,421)	(8,072)
Inventories, net	$173,115	$114,278	$145,244

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Long-Term Debt (Tables)

3 Months Ended

Nov. 30, 2021

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

The following table sets forth the outstanding principal balances of the Company’s long-term debt as of the dates shown:

($ in thousands)	November 30, 2021	November 30, 2020	August 31, 2021
Series A Senior Notes	$115,000	$115,000	$115,000
Elecsys Series 2006A Bonds	1,096	1,309	1,148
Total debt	116,096	116,309	116,148
Less current portion	(219)	(214)	(217)
Less unamortized debt issuance costs	(406)	(454)	(417)
Total long-term debt	$115,471	$115,641	$115,514

Schedule of Principal Payments Due on Long-Term Debt

Principal payments on the debt are due as follows:

Due within	$ in thousands
1 year	$	219
2 years		222
3 years		227
4 years		231
5 years		197
Thereafter		115,000
	$	116,096

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Fair Value Measurements (Tables)

3 Months Ended

Nov. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value

The following table presents the Company’s financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of November 30, 2021, November 30, 2020, and August 31, 2021. There were no transfers between any levels for the periods presented.

	November 30, 2021
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	84,719	$	—	$	—		$	84,719
Marketable securities:
Corporate bonds		—		26,503		—			26,503
U.S. treasury securities		—		3,692		—			3,692
	November 30, 2020
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	126,802	$	—	$	—		$	126,802
Marketable securities:
Corporate bonds		—		14,564		—			14,564
U.S. treasury securities		—		5,060		—			5,060
Earn-out liability		—		—		(1,112	)		(1,112	)
	August 31, 2021
($ in thousands)	Level 1		Level 2		Level 3			Total
Cash and cash equivalents	$	127,107	$	—	$	—		$	127,107
Marketable securities:
Corporate bonds		—		15,484		—			15,484
U.S. treasury securities		—		4,120		—			4,120
Earn-out liability		—		—		(250	)		(250	)

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Commitments and Contingencies (Tables)

3 Months Ended

Nov. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Summary of Undiscounted Environmental Remediation Liability Classifications

The following table summarizes the undiscounted environmental remediation liability classifications included in the condensed consolidated balance sheets as of November 30, 2021, November 30, 2020, and August 31, 2021:

($ in thousands)	November 30, 2021		November 30, 2020		August 31, 2021
Other current liabilities	$	828	$	1,105	$	965
Other noncurrent liabilities		15,181		15,021		15,128
Total environmental remediation liabilities	$	16,009	$	16,126	$	16,093

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Warranties (Tables)

3 Months Ended

Nov. 30, 2021

Product Warranties Disclosures [Abstract]

Schedule of Product Warranty Liability

The following table provides the changes in the Company’s product warranties:

	Three months ended
($ in thousands)	November 30, 2021			November 30, 2020
Product warranty accrual balance, beginning of period	$	12,736		$	10,765
Liabilities accrued for warranties during the period		2,394			1,734
Warranty claims paid during the period		(2,751	)		(1,641	)
Product warranty accrual balance, end of period	$	12,379		$	10,858

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Share-Based Compensation (Tables)

3 Months Ended

Nov. 30, 2021

Share-based Payment Arrangement [Abstract]

Summary of Type and Fair Value of Share-Based Compensation Awards

The following table illustrates the type and fair value of share-based compensation awards granted during the three months ended November 30, 2021 and 2020, respectively:

	Three months ended
	November 30, 2021				November 30, 2020
	Number of units granted		Weighted average grant-date fair value per award		Number of units granted		Weighted average grant-date fair value per award
Stock options		21,137	$	41.80		35,168	$	30.68
RSUs		20,099	$	141.99		26,314	$	106.72
PSUs		12,122	$	147.74		19,533	$	125.23

Schedule of Assumptions Used

The following table provides the assumptions used in determining the fair value of the stock options awarded during the three months ended November 30, 2021 and 2020, respectively:

	Three months ended November 30,
	2021			2020
Weighted-average dividend yield		0.9	%		1.2	%
Weighted-average volatility		33.8	%		32.8	%
Risk-free interest rate		1.2	%		0.5	%
Weighted-average expected life (years)		5			6

Schedule of Assumptions Used to Estimate Fair Value of TSR Portion of Awards Granted

The fair value of the TSR portion of the awards granted during the three months ended November 30, 2021 and 2020 was estimated at the grant date using a Monte Carlo simulation model which included the following assumptions:

	Three months ended November 30,
	2021			2020
Expected term (years)		3			3
Risk-free interest rate		0.7	%		0.2	%
Volatility		39.1	%		38.6	%
Dividend yield		0.9	%		1.2	%

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Other Current Liabilities (Tables)

3 Months Ended

Nov. 30, 2021

Other Liabilities Disclosure [Abstract]

Schedule of Other Liabilities Current

Other Current Liabilities

($ in thousands)	November 30, 2021		November 30, 2020		August 31, 2021
Other current liabilities:
Contract liabilities	$	39,747	$	18,497	$	36,060
Compensation and benefits		13,460		13,759		21,623
Warranties		12,379		10,858		12,736
Dealer related liabilities		4,180		3,696		3,971
Operating lease liabilities		3,787		5,004		3,991
Tax related liabilities		1,639		443		1,072
Deferred revenue - lease		1,201		3,165		3,456
Accrued insurance		893		1,253		1,123
Accrued environmental liabilities		828		1,105		965
Other		10,541		8,130		7,817
Total other current liabilities	$	88,655	$	65,910	$	92,814

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Industry Segment Information (Tables)

3 Months Ended

Nov. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

	Three months ended
($ in thousands)	November 30, 2021			November 30, 2020
Operating revenues:
Irrigation:
North America	$	78,976		$	52,790
International		66,933			34,566
Irrigation total		145,909			87,356
Infrastructure		20,243			21,129
Total operating revenues	$	166,152		$	108,485
Operating income:
Irrigation	$	17,212		$	10,633
Infrastructure		2,766			4,256
Corporate		(6,617	)		(7,354	)
Total operating income		13,361			7,535
Interest and other expense, net		(3,886	)		(652	)
Earnings before income taxes	$	9,475		$	6,883

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Revenue Recognition (Schedule of Disaggregation of Revenue by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	$ 161,363	$ 104,447
Lease revenue	4,789	4,038
Total operating revenues	166,152	108,485
Point in Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	154,112	95,512
Over Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	7,251	8,935
Irrigation [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	145,909	87,356
Lease revenue	0	0
Total operating revenues	145,909	87,356
Irrigation [Member] | Point in Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	139,400	80,060
Irrigation [Member] | Over Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	6,509	7,296
Infrastructure [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	15,454	17,091
Lease revenue	4,789	4,038
Total operating revenues	20,243	21,129
Infrastructure [Member] | Point in Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	14,712	15,452
Infrastructure [Member] | Over Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	$ 742	$ 1,639

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Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Aug. 31, 2021
Disaggregation Of Revenue [Line Items]
Unsatisfied performance obligation amount	$ 7.3
Revenue recognized	12.7	$ 6.5
Other Current Assets [Member]
Disaggregation Of Revenue [Line Items]
Contract assets	1.2	1.2	$ 1.3
Other Current Liabilities [Member]
Disaggregation Of Revenue [Line Items]
Contract liabilities	$ 41.1	$ 21.3	$ 37.4

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Net Earnings Per Share (Schedule of Computation of Basic and Diluted Net Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Earnings Per Share [Abstract]
Net earnings	$ 7,901	$ 7,095
Weighted average shares outstanding	10,927	10,845
Diluted effect of stock awards	99	43
Weighted average shares outstanding assuming dilution	11,026	10,888
Basic net earnings per share	$ 0.72	$ 0.65
Diluted net earnings per share	$ 0.72	$ 0.65

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Net Earnings Per Share (Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of earnings per share	10	79
Performance Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of earnings per share	2	10

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Income Taxes [Line Items]
Income tax expense (benefit)	$ 1,574	$ (212)
Estimated annual effective income tax rate	24.20%	23.80%
Tax adjustment for unusual items	$ 700	$ 1,800
Tax benefit related to vesting of share based compensation awards	$ 700
Foreign Jurisdiction [Member]
Income Taxes [Line Items]
Valuation allowance reserve in prior year		$ 1,700

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Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021	Nov. 30, 2020
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 78,102	$ 69,962	$ 52,374
Work in process	12,227	8,301	8,041
Finished goods and purchased parts, net	90,676	75,053	58,284
Total inventory value before LIFO adjustment	181,005	153,316	118,699
Less adjustment to LIFO value	(7,890)	(8,072)	(4,421)
Inventories, net	$ 173,115	$ 145,244	$ 114,278

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Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021	Nov. 30, 2020
Debt Instrument [Line Items]
Total debt	$ 116,096	$ 116,148	$ 116,309
Less current portion	(219)	(217)	(214)
Less unamortized debt issuance costs	(406)	(417)	(454)
Total long-term debt	115,471	115,514	115,641
Elecsys Series 2006A Bonds [Member]
Debt Instrument [Line Items]
Total debt	1,096	1,148	1,309
Series A Senior Notes [Member]
Debt Instrument [Line Items]
Total debt	$ 115,000	$ 115,000	$ 115,000

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Long-Term Debt (Schedule of Principal Payments Due on Long-Term Debt) (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021	Nov. 30, 2020
Debt Disclosure [Abstract]
1 year	$ 219
2 years	222
3 years	227
4 years	231
5 years	197
Thereafter	115,000
Total debt	$ 116,096	$ 116,148	$ 116,309

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Fair Value Measurements (Schedule of Financial Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021	Nov. 30, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 84,719	$ 127,107	$ 126,802
Marketable securities:
Earn-out liability		(250)	(1,112)
Corporate Bonds [Member]
Marketable securities:
Marketable securities	26,503	15,484	14,564
U.S. Treasury Securities [Member]
Marketable securities:
Marketable securities	3,692	4,120	5,060
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	84,719	127,107	126,802
Marketable securities:
Earn-out liability		0	0
Level 1 [Member] | Corporate Bonds [Member]
Marketable securities:
Marketable securities	0	0	0
Level 1 [Member] | U.S. Treasury Securities [Member]
Marketable securities:
Marketable securities	0	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0	0
Marketable securities:
Earn-out liability		0	0
Level 2 [Member] | Corporate Bonds [Member]
Marketable securities:
Marketable securities	26,503	15,484	14,564
Level 2 [Member] | U.S. Treasury Securities [Member]
Marketable securities:
Marketable securities	3,692	4,120	5,060
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0	0
Marketable securities:
Earn-out liability		(250)	(1,112)
Level 3 [Member] | Corporate Bonds [Member]
Marketable securities:
Marketable securities	0	0	0
Level 3 [Member] | U.S. Treasury Securities [Member]
Marketable securities:
Marketable securities	$ 0	$ 0	$ 0

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Fair Value Measurements (Narrative) (Details) - USD ($)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Percentage of marketable securities investments mature within one year	65.00%
Percentage of marketable securities investments mature within one to five years	35.00%
Fair Value, Measurements, Nonrecurring [Member]
Assets fair value adjustments	$ 0	$ 0
Liabilities fair value adjustments	$ 0	$ 0

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Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Nov. 30, 2021	Nov. 30, 2020
Commitments And Contingencies [Line Items]
Liabilities	$ 298,740		$ 307,502	$ 271,301
Lindsay, Nebraska Facility [Member]
Commitments And Contingencies [Line Items]
Current environmental remediation accrual			16,100
Liabilities	$ 11,000	$ 11,000
Liabilities discounted risk Free interest rate	1.20%	1.20%
Discounted portion of liabilities			$ 12,400

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Commitments and Contingencies (Summary of Undiscounted Environmental Remediation Liability Classifications) (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021	Nov. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Other current liabilities	$ 828	$ 965	$ 1,105
Other noncurrent liabilities	15,181	15,128	15,021
Total environmental remediation liabilities	$ 16,009	$ 16,093	$ 16,126

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Warranties (Schedule of Product Warranty Liability) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Product Warranties Disclosures [Abstract]
Product warranty accrual balance, beginning of period	$ 12,736	$ 10,765
Liabilities accrued for warranties during the period	2,394	1,734
Warranty claims paid during the period	(2,751)	(1,641)
Product warranty accrual balance, end of period	$ 12,379	$ 10,858

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Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1,300	$ 1,700
Share withheld for payroll tax obligations	$ 1,181	$ 1,269
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares to be settled in cash	2,248	2,162
Weighted average grant-date stock price of awards to be settled in cash	$ 145.93	$ 110.21
Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Performance Stock Units [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of awards actually earned	0.00%
Performance Stock Units [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of awards actually earned	200.00%

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Share-Based Compensation (Summary Of Type And Fair Value Of Share-Based Compensation Awards) (Details) - $ / shares	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	21,137	35,168
Weighted average grant-date fair value per award	$ 41.80	$ 30.68
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	20,099	26,314
Weighted average grant-date fair value per award	$ 141.99	$ 106.72
Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	12,122	19,533
Weighted average grant-date fair value per award	$ 147.74	$ 125.23

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Share-Based Compensation (Schedule of Assumptions Used) (Details)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Share-based Payment Arrangement [Abstract]
Weighted-average dividend yield	0.90%	1.20%
Weighted-average volatility	33.80%	32.80%
Risk-free interest rate	1.20%	0.50%
Weighted-average expected life (years)	5 years	6 years

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Share-Based Compensation (Schedule of Assumptions Used to Estimate Fair Value of TSR Portion of Awards Granted) (Details)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	5 years	6 years
Risk-free interest rate	1.20%	0.50%
Volatility	33.80%	32.80%
Dividend yield	0.90%	1.20%
Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	3 years	3 years
Risk-free interest rate	0.70%	0.20%
Volatility	39.10%	38.60%
Dividend yield	0.90%	1.20%

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Other Current Liabilities (Schedule of Other Liabilities Current) (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021	Nov. 30, 2020
Other Liabilities Disclosure [Abstract]
Contract liabilities	$ 39,747	$ 36,060	$ 18,497
Compensation and benefits	13,460	21,623	13,759
Warranties	12,379	12,736	10,858
Dealer related liabilities	4,180	3,971	3,696
Operating lease liabilities	3,787	3,991	5,004
Tax related liabilities	1,639	1,072	443
Deferred revenue - lease	1,201	3,456	3,165
Accrued insurance	893	1,123	1,253
Accrued environmental liabilities	828	965	1,105
Other	10,541	7,817	8,130
Total other current liabilities	$ 88,655	$ 92,814	$ 65,910

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Share Repurchases (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Equity [Abstract]
Number of shares of common stock repurchased during the period	0	0
Remaining amount available under the repurchase program	$ 63.7

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Industry Segment Information (Narrative) (Details)	3 Months Ended
	Nov. 30, 2021 Segment Customer	Nov. 30, 2020 Customer
Segment Reporting Information [Line Items]
Number of reportable segments	2
Irrigation [Member]
Segment Reporting Information [Line Items]
Number of operating segments	1
Infrastructure [Member]
Segment Reporting Information [Line Items]
Number of operating segments	1
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Number of major customers | Customer	0	0
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Minimum [Member]
Segment Reporting Information [Line Items]
Concentration risk, percentage	10.00%	10.00%

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Industry Segment Information (Schedule of Segment Reporting Information Impacts on Statement of Operations, by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Segment Reporting Information [Line Items]
Total operating revenues	$ 166,152	$ 108,485
Total operating income	13,361	7,535
Interest and other expense, net	(3,886)	(652)
Earnings before income taxes	9,475	6,883
Irrigation [Member]
Segment Reporting Information [Line Items]
Total operating revenues	145,909	87,356
Total operating income	17,212	10,633
Irrigation [Member] | North America [Member]
Segment Reporting Information [Line Items]
Total operating revenues	78,976	52,790
Irrigation [Member] | International [Member]
Segment Reporting Information [Line Items]
Total operating revenues	66,933	34,566
Infrastructure [Member]
Segment Reporting Information [Line Items]
Total operating revenues	20,243	21,129
Total operating income	2,766	4,256
Corporate Segment
Segment Reporting Information [Line Items]
Total operating income	$ (6,617)	$ (7,354)