| Revenue Recognition | NOTE 4. REVENUE RECOGNITION In the Americas Mills, Americas Recycling, and International Mill segments, revenue is recognized at a point in time concurrent with the transfer of control, which usually occurs, depending on shipping terms, upon shipment or customer receipt. In the Americas Fabrication segment, each contract represents a single performance obligation. Revenue is either recognized over time or equal to billing under an available practical expedient. For contracts where the Company provides fabricated product and installation services, revenue is recognized over time using an input method. For the three months ended November 30, 2019 , these contracts represent approximately 26% of net sales in the Americas Fabrication segment. For these contracts, the measure of progress is based on contract costs incurred to date compared to total estimated contract costs, which provides a reasonable depiction of the Company ’s progress towards satisfaction of the performance obligation as there is a direct relationship between costs incurred by the Company and the transfer of the fabricated product and installation services. Revenue from contracts where the Company does not provide installation services is recognized over time using an output method. For the three months ended November 30, 2019 , these contracts represent approximately 23% of net sales in the Americas Fabrication segment. For these contracts, the Company uses tons shipped compared to total estimated tons, which provides a reasonable depiction of the transfer of contract value to the customer, as there is a direct relationship between the units shipped by the Company and the transfer of the fabricated product. Significant judgment is required to evaluate total estimated costs used in the input method and total estimated tons in the output method. If estimated total consolidated costs on any contract are greater than the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known. The cumulative effect of revisions to estimates related to net contract revenues, costs to complete or total planned quantity is recorded in the period in which such revisions are identified. The Company does not exercise significant judgment in determining the transaction price. For the three months ended November 30, 2019 , the remaining 51% of net sales in the Americas Fabrication segment is recognized as amounts are billed to the customer. Payment terms and conditions vary by contract type, although the Company generally requires customers to pay within 30 days of invoice date. The timing of revenue recognition for certain Americas Fabrication contracts, as described above, differ from the timing of invoicing to customers. The Company records an asset when revenue is recognized prior to invoicing and a liability when revenue is recognized after invoicing. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined the contracts do not include a significant financing component. The following table provides information about assets and liabilities from contracts with customers. (in thousands) November 30, 2019 August 31, 2019 Contract assets (included in other current assets) $ 89,507 $ 103,805 Contract liabilities (included in accrued expenses and other payables) 34,037 37,165 The amount of revenue reclassified from August 31, 2019 contract liabilities during the three months ended November 30, 2019 was approximately $14.5 million . Remaining Performance Obligations As of November 30, 2019 , $799.1 million has been allocated to remaining performance obligations in the Americas Fabrication segment, excluding those contracts where revenue is recognized equal to billing. Of this amount, the Company estimates the remaining performance obligations will be recognized as revenue as follows: 40% in the first twelve months , 48% in the following twelve months , and 12% thereafter . The duration of contracts in the Americas Mills, Americas Recycling, and International Mill segments are typically less than one year. Disaggregation of Revenue The following tables display revenue by reportable segment from external customers, disaggregated by major source. The Company believes disaggregating by these categories depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended November 30, 2019 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Total Steel products $ 115 $ 441,163 $ 499,727 $ 157,944 $ — $ 1,098,949 Ferrous scrap 58,302 6,748 — 212 — 65,262 Nonferrous scrap 113,218 3,355 — 1,993 — 118,566 Construction materials — — 67,466 — — 67,466 Other 516 22,926 3,184 4,891 2,948 34,465 Total $ 172,151 $ 474,192 $ 570,377 $ 165,040 $ 2,948 $ 1,384,708 Three Months Ended November 30, 2018 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Total Steel products $ 239 $ 347,965 $ 374,807 $ 217,770 $ — $ 940,781 Ferrous scrap 111,654 9,142 — 275 — 121,071 Nonferrous scrap 128,075 3,180 — 2,941 — 134,196 Construction materials — — 57,171 — — 57,171 Other 213 13,384 2,580 5,687 2,259 24,123 Total $ 240,181 $ 373,671 $ 434,558 $ 226,673 $ 2,259 $ 1,277,342 |
