Revenue Recognition

9 Months Ended

May 31, 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 nine months ended May 31, 2024 and 2023 is as follows:

	Three months ended						Three months ended
	May 31, 2024						May 31, 2023
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	107,438	$	17,542	$	124,980	$	135,990	$	16,817	$	152,807
Over time		7,402		1,276		8,678		6,581		1,383		7,964
Revenue from the contracts with customers		114,840		18,818		133,658		142,571		18,200		160,771
Lease revenue		—		5,541		5,541		—		3,782		3,782
Total operating revenues	$	114,840	$	24,359	$	139,199	$	142,571	$	21,982	$	164,553
	Nine months ended						Nine months ended
	May 31, 2024						May 31, 2023
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	365,184	$	42,835	$	408,019	$	423,212	$	51,743	$	474,955
Over time		22,842		3,944		26,786		19,218		4,494		23,712
Revenue from the contracts with customers		388,026		46,779		434,805		442,430		56,237		498,667
Lease revenue		—		17,271		17,271		—		8,286		8,286
Total operating revenues	$	388,026	$	64,050	$	452,076	$	442,430	$	64,523	$	506,953

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 $112.6 million at May 31, 2024, almost all of which is expected to be satisfied within the next twelve to eighteen months.

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 May 31, 2024, May 31, 2023, and August 31, 2023, contract assets amounted to $3.6 million, $1.3 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 May 31, 2024, May 31, 2023, and August 31, 2023, contract liabilities amounted to $23.5 million, $21.2 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 nine months ended May 31, 2024 and 2023, the Company recognized $14.5 million and $26.3 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.