Revenue Recognition

3 Months Ended

Nov. 30, 2020

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, 2020 is as follows:

	Three months ended
	November 30, 2020
($ in thousands)	Irrigation		Infrastructure		Total
Point in time	$	80,060	$	15,452	$	95,512
Over time		7,296		1,639		8,935
Revenue from the contracts with customers		87,356		17,091		104,447
Lease revenue		—		4,038		4,038
Total operating revenues	$	87,356	$	21,129	$	108,485
	Three months ended
	November 30, 2019
($ in thousands)	Irrigation		Infrastructure		Total
Point in time	$	73,818	$	21,162	$	94,980
Over time		9,509		2,125		11,634
Revenue from the contracts with customers		83,327		23,287		106,614
Lease revenue		—		2,779		2,779
Total operating revenues	$	83,327	$	26,066	$	109,393

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 $11.3 million at November 30, 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 November 30, 2020, November 30, 2019, and August 31, 2019, contract assets amounted to $1.2 million, $1.2 million, and $0.9 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 November 30, 2020, November 30, 2019, and August 31, 2019, contract liabilities amounted to $21.3 million, $14.7 million, and $19.6 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, 2020 and 2019, the Company recognized $6.5 million and $6.4 million of revenue that were included in the liabilities as of August 31, 2020 and 2019, respectively. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter.