Revenue Recognition

6 Months Ended

Feb. 29, 2020

Revenue From Contract With Customer [Abstract]

Note 2 – Revenue Recognition

Disaggregation of Revenue

A breakout by segment of revenue recognized over time versus point in time for the three and six months ended February 29, 2020 and February 28, 2019 is as follows:

	Three months ended						Three months ended
	February 29, 2020						February 28, 2019
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	73,025	$	18,153	$	91,178	$	85,939	$	10,917	$	96,856
Over time		19,048		2,028		21,076		9,827		1,292		11,119
Revenue from the contracts with customers		92,073		20,181		112,254		95,766		12,209		107,975

Lease revenue		—		1,534		1,534		—		1,207		1,207
Total operating revenues	$	92,073	$	21,715	$	113,788	$	95,766	$	13,416	$	109,182


	Six months ended						Six months ended
	February 29, 2020						February 28, 2019
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	146,400	$	39,759	$	186,159	$	167,025	$	32,164	$	199,189
Over time		28,025		4,684		32,709		16,351		2,782		19,134
Revenue from the contracts with customers		174,425		44,443		218,868		183,376		34,946		218,322

Lease revenue		—		4,313		4,313		—		2,811		2,811
Total operating revenues	$	174,425	$	48,756	$	223,181	$	183,376	$	37,757	$	221,133

Further disaggregation of revenue is disclosed in the Note 16 – Industry Segment Information.

For contracts with a length longer than twelve months, the unsatisfied performance obligations were $6.1 million at February 29, 2020.

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, 2020, February 28, 2019, and August 31, 2019, contract assets amounted to $0.9 million, $1.5 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 29, 2020, February 28, 2019, and August 31, 2019, contract liabilities amounted to $13.4 million, $8.7 million, and $18.4 million, respectively. Contract liabilities are included within other current liabilities on the condensed consolidated balance sheets. During the Company’s six months ended February 29, 2020 and February 28, 2019, the Company recognized $12.6 million and $6.5 million of revenue that were included in the liabilities as of August 31, 2019 and August 31, 2018, respectively. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter.