Revenue Recognition

3 Months Ended

Nov. 30, 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 months ended November 30, 2024 and 2023 is as follows:

	Three months ended
	November 30, 2024
($ in thousands)	Irrigation	Infrastructure	Total
Point in time	$139,368	$12,102	$151,470
Over time	7,719	1,358	9,077
Revenue from the contracts with customers	147,087	13,460	160,547
Lease revenue	—	5,734	5,734
Total operating revenues	$147,087	$19,194	$166,281
	Three months ended
	November 30, 2023
($ in thousands)	Irrigation	Infrastructure	Total
Point in time	$131,201	$12,951	$144,152
Over time	8,967	1,231	10,198
Revenue from the contracts with customers	140,168	14,182	154,350
Lease revenue	—	7,008	7,008
Total operating revenues	$140,168	$21,190	$161,358

Further disaggregation of revenue is disclosed in Note 13 – Industry Segment Information.

For contracts with an initial length longer than 12 months, the unsatisfied performance obligations were $73.8 million at November 30, 2024. The balance of unsatisfied performance obligations at November 30, 2024 is expected to be satisfied within the next twelve 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 November 30, 2024, November 30, 2023, and August 31, 2024, contract assets amounted to $3.1 million, $0.7 million, and $3.3 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 November 30, 2024, November 30, 2023, and August 31, 2024, contract liabilities amounted to $18.6 million, $21.7 million, and $21.5 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, 2024 and 2023, the Company recognized $9.6 million and $7.9 million of revenue that were included in the liabilities as of August 31, 2024 and 2023, respectively. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter.