Revenue Recognition

6 Months Ended

Feb. 28, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 2 – Revenue Recognition

Disaggregation of Revenue

A breakout by segment of revenue recognized over time versus at a point in time for the three and six months ended February 28, 2022 and 2021 is as follows:

	Three months ended						Three months ended
	February 28, 2022						February 28, 2021
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	175,251	$	16,010	$	191,261	$	110,814	$	20,819	$	131,633
Over time		5,508		1,467		6,975		7,758		1,535		9,293
Revenue from the contracts with customers		180,759		17,477		198,236		118,572		22,354		140,926
Lease revenue		—		1,901		1,901		—		2,651		2,651
Total operating revenues	$	180,759	$	19,378	$	200,137	$	118,572	$	25,005	$	143,577
	Six months ended						Six months ended
	February 28, 2022						February 28, 2021
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	315,383	$	30,723	$	346,106	$	190,926	$	36,269	$	227,195
Over time		11,284		2,209		13,493		15,003		3,174		18,177
Revenue from the contracts with customers		326,667		32,932		359,599		205,929		39,443		245,372
Lease revenue		—		6,689		6,689		—		6,690		6,690
Total operating revenues	$	326,667	$	39,621	$	366,288	$	205,929	$	46,133	$	252,062

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 $4.0 million at February 28, 2022.

Contract Balances

Contract assets arise when recorded revenue for a contract exceeds the amounts billed under the terms of such contract. Contract liabilities arise when billed amounts exceed revenue recorded. Amounts are billable to customers upon various measures of performance, including achievement of certain milestones and completion of specified units of completion of the contract. At February 28, 2022, February 28, 2021, and August 31, 2021, contract assets amounted to $1.1 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 February 28, 2022, February 28, 2021, and August 31, 2021, contract liabilities amounted to $39.7 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 six months ended February 28, 2022 and 2021 the Company recognized $25.6 million and $15.4 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.