Revenue Recognition

6 Months Ended

Feb. 29, 2024

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 29, 2024 and 2023 is as follows:

	Three months ended						Three months ended
	February 29, 2024						February 28, 2023
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	125,241	$	12,343	$	137,584	$	141,528	$	14,697	$	156,225
Over time		7,777		1,437		9,214		6,248		1,657		7,905
Revenue from the contracts with customers		133,018		13,780		146,798		147,776		16,354		164,130
Lease revenue		—		4,721		4,721		—		2,111		2,111
Total operating revenues	$	133,018	$	18,501	$	151,519	$	147,776	$	18,465	$	166,241
	Six months ended						Six months ended
	February 29, 2024						February 28, 2023
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	257,746	$	25,294	$	283,040	$	287,245	$	34,927	$	322,172
Over time		15,440		2,668		18,108		12,614		3,111		15,725
Revenue from the contracts with customers		273,186		27,962		301,148		299,859		38,038		337,897
Lease revenue		—		11,729		11,729		—		4,503		4,503
Total operating revenues	$	273,186	$	39,691	$	312,877	$	299,859	$	42,541	$	342,400

Further disaggregation of revenue is disclosed in the Note 14 – Industry Segment Information.

For contracts with an initial length longer than twelve months, the unsatisfied performance obligations were $1.0 million at February 29, 2024.

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 29, 2024, February 28, 2023, and August 31, 2023, contract assets amounted to $1.1 million, $1.1 million, and $1.3 million, respectively. These amounts are included within other current assets on the condensed consolidated balance sheets.

Contract liabilities include advance payments from customers and billings in excess of delivery of performance obligations. At February 29, 2024, February 28, 2023, and August 31, 2023, contract liabilities amounted to $18.3 million, $17.9 million, and $20.5 million, respectively. Contract liabilities are included within other current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets. During the Company’s six months ended February 29, 2024 and February 28, 2023, the Company recognized $12.1 million and $25.0 million of revenue that were included in the liabilities as of August 31, 2023 and 2022 respectively. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter.