Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
May 31, 2019 | Jul. 09, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | LNN | |
Entity Registrant Name | LINDSAY CORP | |
Entity Central Index Key | 0000836157 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 1-13419 | |
Entity Tax Identification Number | 470554096 | |
Entity Address, Address Line One | 18135 Burke Street | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Omaha | |
Entity Address, State or Province | Nebraska | |
Entity Address, Country | US | |
Entity Address, Postal Zip Code | 68022 | |
City Area Code | 402 | |
Local Phone Number | 829-6800 | |
Entity Common Stock, Shares Outstanding | 10,786,339 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Income Statement [Abstract] | ||||
Operating revenues | $ 121,054 | $ 169,571 | $ 342,187 | $ 424,436 |
Cost of operating revenues | 91,055 | 118,093 | 259,066 | 305,245 |
Gross profit | 29,999 | 51,478 | 83,121 | 119,191 |
Operating expenses: | ||||
Selling expense | 7,515 | 10,842 | 23,934 | 31,087 |
General and administrative expense | 14,695 | 17,862 | 46,585 | 43,866 |
Engineering and research expense | 3,314 | 3,960 | 10,547 | 11,932 |
Total operating expenses | 25,524 | 32,664 | 81,066 | 86,885 |
Operating income | 4,475 | 18,814 | 2,055 | 32,306 |
Other income (expense): | ||||
Interest expense | (1,169) | (1,226) | (3,552) | (3,502) |
Interest income | 525 | 540 | 1,930 | 1,171 |
Other expense, net | (602) | (683) | (591) | (2,062) |
Earnings (loss) before income taxes | 3,229 | 17,445 | (158) | 27,913 |
Income tax expense (benefit) | 332 | 7,066 | (827) | 12,614 |
Net earnings | $ 2,897 | $ 10,379 | $ 669 | $ 15,299 |
Earnings per share: | ||||
Basic | $ 0.27 | $ 0.96 | $ 0.06 | $ 1.43 |
Diluted | $ 0.27 | $ 0.96 | $ 0.06 | $ 1.42 |
Shares used in computing earnings per share: | ||||
Basic | 10,786 | 10,757 | 10,779 | 10,735 |
Diluted | 10,814 | 10,785 | 10,807 | 10,763 |
Cash dividends declared per share | $ 0.31 | $ 0.30 | $ 0.93 | $ 0.90 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 2,897 | $ 10,379 | $ 669 | $ 15,299 |
Other comprehensive income (loss): | ||||
Defined benefit pension plan adjustment, net of tax | 38 | 40 | 104 | 109 |
Foreign currency translation adjustment, net of hedging activities and tax | (1,831) | (3,705) | 125 | (2,925) |
Total other comprehensive (loss) income, net of tax expense of $120, $347, $421 and $74, respectively | (1,793) | (3,665) | 229 | (2,816) |
Total comprehensive income | $ 1,104 | $ 6,714 | $ 898 | $ 12,483 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Other comprehensive income, tax expense | $ 120 | $ 347 | $ 421 | $ 74 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 110,839 | $ 160,787 | $ 111,779 |
Receivables, net of allowance of $2,498, $4,143, and $3,585, respectively | 94,584 | 69,107 | 92,135 |
Inventories, net | 91,091 | 79,233 | 82,635 |
Assets held-for-sale | 2,744 | 10,837 | 51,516 |
Other current assets, net | 17,903 | 11,087 | 12,341 |
Total current assets | 317,161 | 331,051 | 350,406 |
Property, plant, and equipment: | |||
Cost | 188,215 | 171,450 | 172,438 |
Less accumulated depreciation | (117,848) | (114,202) | (112,554) |
Property, plant, and equipment, net | 70,367 | 57,248 | 59,884 |
Intangibles, net | 25,103 | 27,376 | 28,656 |
Goodwill | 64,454 | 64,671 | 64,723 |
Deferred income tax assets | 8,783 | 6,645 | 4,581 |
Other noncurrent assets | 20,054 | 12,824 | 11,528 |
Total assets | 505,922 | 499,815 | 519,778 |
Current liabilities: | |||
Accounts payable | 37,509 | 30,530 | 30,281 |
Current portion of long-term debt | 208 | 205 | 204 |
Liabilities held-for-sale | 0 | 2,424 | 14,275 |
Other current liabilities | 49,102 | 46,935 | 53,911 |
Total current liabilities | 86,819 | 80,094 | 98,671 |
Pension benefits liabilities | 5,661 | 5,874 | 6,080 |
Long-term debt | 115,885 | 116,129 | 116,172 |
Deferred income tax liabilities | 918 | 1,083 | 1,117 |
Other noncurrent liabilities | 26,245 | 19,769 | 20,229 |
Total liabilities | 235,528 | 222,949 | 242,269 |
Shareholders' equity: | |||
Preferred stock of $1 par value - Authorized 2,000 shares; no shares issued and outstanding | 0 | 0 | 0 |
Common stock of $1 par value - authorized 25,000 shares; 18,870, 18,841, and 18,841 shares issued, respectively | 18,870 | 18,841 | 18,841 |
Capital in excess of stated value | 70,566 | 68,465 | 67,587 |
Retained earnings | 476,580 | 484,886 | 483,243 |
Less treasury stock - at cost, 8,083 shares | (277,238) | (277,238) | (277,238) |
Accumulated other comprehensive loss, net | (18,384) | (18,088) | (14,924) |
Total shareholders' equity | 270,394 | 276,866 | 277,509 |
Total liabilities and shareholders' equity | $ 505,922 | $ 499,815 | $ 519,778 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Statement Of Financial Position [Abstract] | |||
Receivables, allowance | $ 2,498 | $ 3,585 | $ 4,143 |
Preferred stock, par value | $ 1 | $ 1 | $ 1 |
Preferred stock, authorized | 2,000,000 | 2,000,000 | 2,000,000 |
Preferred stock, issued | 0 | 0 | 0 |
Preferred stock, outstanding | 0 | 0 | 0 |
Common stock, par value | $ 1 | $ 1 | $ 1 |
Common stock, authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Common stock, issued | 18,870,000 | 18,841,000 | 18,841,000 |
Treasury stock, shares | 8,083,000 | 8,083,000 | 8,083,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Capital In Excess Of Stated Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income, Net [Member] |
Beginning balance, value at Aug. 31, 2017 | $ 270,055 | $ 18,780 | $ (277,238) | $ 63,006 | $ 477,615 | $ (12,108) |
Beginning balance, shares at Aug. 31, 2017 | 18,780 | 8,083 | ||||
Net earnings | 15,299 | $ 0 | $ 0 | 0 | 15,299 | 0 |
Other comprehensive (loss) income | (2,816) | 0 | 0 | 0 | 0 | (2,816) |
Total comprehensive income | 12,483 | 0 | 0 | 0 | 0 | 0 |
Cash dividends per share | (9,671) | 0 | 0 | 0 | (9,671) | 0 |
Issuance of common shares under share compensation plans: | ||||||
Proceeds from exercise of stock options | 2,788 | $ 61 | 0 | 2,727 | 0 | 0 |
Proceeds from exercise of stock options, shares | 61 | |||||
Common stock withheld for payroll tax obligations | (833) | $ 0 | 0 | (833) | 0 | 0 |
Share-based compensation expense | 2,687 | 0 | 0 | 2,687 | 0 | 0 |
Ending balance, value at May. 31, 2018 | 277,509 | $ 18,841 | $ (277,238) | 67,587 | 483,243 | (14,924) |
Ending Balance, shares at May. 31, 2018 | 18,841 | 8,083 | ||||
Beginning balance, value at Aug. 31, 2018 | 276,866 | $ 18,841 | $ (277,238) | 68,465 | 484,886 | (18,088) |
Beginning balance, shares at Aug. 31, 2018 | 18,841 | 8,083 | ||||
Net earnings | 669 | $ 0 | $ 0 | 0 | 669 | 0 |
Other comprehensive (loss) income | 229 | 0 | 0 | 0 | 0 | 229 |
Total comprehensive income | 898 | 0 | 0 | 0 | 0 | 0 |
Cash dividends per share | (10,032) | 0 | 0 | 0 | (10,032) | 0 |
Issuance of common shares under share compensation plans: | ||||||
Proceeds from exercise of stock options | 177 | $ 29 | 0 | 148 | 0 | 0 |
Proceeds from exercise of stock options, shares | 29 | |||||
Common stock withheld for payroll tax obligations | (1,124) | $ 0 | 0 | (1,124) | 0 | 0 |
Share-based compensation expense | 3,077 | 0 | 0 | 3,077 | 0 | 0 |
Cumulative impact of ASC/ASU adoption | ASC 606 [Member] | 532 | 0 | 0 | 0 | 532 | 0 |
Cumulative impact of ASC/ASU adoption | ASU 2018-02 [Member] | 0 | 0 | 0 | 0 | 525 | (525) |
Ending balance, value at May. 31, 2019 | $ 270,394 | $ 18,870 | $ (277,238) | $ 70,566 | $ 476,580 | $ (18,384) |
Ending Balance, shares at May. 31, 2019 | 18,870 | 8,083 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||||
Cash dividends per share | $ 0.31 | $ 0.30 | $ 0.93 | $ 0.90 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2019 | May 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 669 | $ 15,299 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 10,452 | 12,851 |
Loss on sale of business | 301 | 6,023 |
Provision for uncollectible accounts receivable | (726) | (2,407) |
Deferred income taxes | (2,556) | (687) |
Share-based compensation expense | 3,226 | 2,942 |
Other, net | (14) | 473 |
Changes in assets and liabilities: | ||
Receivables | (26,371) | (29,826) |
Inventories | (14,467) | (8,247) |
Other current assets | 546 | (971) |
Accounts payable | 9,072 | 1,901 |
Other current liabilities | (4,078) | 10,058 |
Other noncurrent assets and liabilities | 4,318 | 766 |
Net cash (used in) provided by operating activities | (19,628) | 8,175 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant, and equipment | (20,210) | (6,920) |
Proceeds from settlement of net investment hedges | 2,262 | 101 |
Payments for settlement of net investment hedges | (327) | (3,089) |
Other investing activities, net | 60 | 241 |
Net cash used in investing activities | (18,215) | (9,667) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 177 | 2,788 |
Common stock withheld for payroll tax obligations | (1,124) | (833) |
Principal payments on long-term debt | (153) | (150) |
Payment of debt issuance costs | (115) | 0 |
Dividends paid | (10,032) | (9,671) |
Net cash used in financing activities | (11,247) | (7,866) |
Effect of exchange rate changes on cash and cash equivalents | (858) | (483) |
Net change in cash and cash equivalents | (49,948) | (9,841) |
Cash and cash equivalents, beginning of period | 160,787 | 121,620 |
Cash and cash equivalents, end of period | 110,839 | 111,779 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Income taxes paid | 6,278 | 6,087 |
Interest paid | 2,379 | 2,358 |
NONCASH INVESTING ACTIVITIES: | ||
Note receivable from sale of business | $ 5,589 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
May 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The condensed consolidated financial statements are presented in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and do not include all of the disclosures normally required by U.S. generally accepted accounting principles (“U.S. GAAP”) as contained in Lindsay Corporation’s (the “Company”) Annual Report on Form 10-K. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended August 31, 2018. In the opinion of management, the condensed consolidated financial statements of the Company reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and the results of operations and cash flows for the periods presented. The results for interim periods are not necessarily indicative of trends or results expected by the Company for a full year. The condensed consolidated financial statements were prepared using U.S. GAAP. These principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from these estimates. Certain reclassifications have been made to prior financial statements and notes to conform to the current year presentation. Recent Accounting Guidance Not Yet Adopted In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities Recent Accounting Guidance Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, Revenue from Contracts with Customers. The Company adopted the new standard using the modified retrospective approach effective the first day of fiscal 2019. As a result of the adoption, the Company increased retained earnings, $0.5 million, net of tax. This change relates primarily to custom and contract manufacturing arrangements for certain of the Company’s irrigation and infrastructure equipment products at various stages of production at August 31, 2018 in addition to contracts with multiple performance obligations for which control of the relevant performance obligation had been satisfied. Results for reporting periods beginning September 1, 2018 are presented in accordance with ASC Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the previously applied revenue recognition guidance. In March 2017, the FASB issued ASU No. 2017-07, Presentation of Net Periodic Benefit Cost Related to Defined Benefit Plans In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), Income Tax Accounting Implications of the Tax Cuts and Jobs Act Income Taxes In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
May 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition The cumulative effect of initially applying the new revenue standard under ASC Topic 606 was recorded as an adjustment to the opening balance of retained earnings, which impacted the condensed consolidated balance sheet as follows: ($ in thousands) August 31, 2018 ASC Topic 606 Adjustments September 1, 2018 Assets Inventories, net $ 79,233 $ (942 ) $ 78,291 Other current assets 11,087 1,651 12,738 Liabilities and Stockholders' Equity Other current liabilities $ 46,935 $ 14 $ 46,949 Deferred income tax liabilities 1,083 163 1,246 Retained earnings 484,886 532 485,418 The adoption of ASC Topic 606 had the following impact on the condensed consolidated balance sheet and condensed consolidated statement of earnings for the three and nine months ended May 31, 2019: ($ in thousands) As Reported ASC Topic 606 Adjustments Balance without adoption of ASC Topic 606 Assets Inventories, net $ 91,091 $ 3,652 $ 94,743 Other current assets 17,903 (1,114 ) 16,789 Liabilities and Stockholders' Equity Other current liabilities $ 49,102 $ 5,039 $ 54,141 Retained earnings 476,580 (2,500 ) 474,080 Three months ended Nine months ended May 31, 2019 May 31, 2019 ($ in thousands) As Reported ASC Topic 606 Adjustments Balance without adoption of ASC Topic 606 As Reported ASC Topic 606 Adjustments Balance without adoption of ASC Topic 606 Statement of Earnings Operating revenues $ 121,054 $ 43 $ 121,097 $ 342,187 $ (6,303 ) $ 335,884 Operating income 4,475 (38 ) 4,437 2,055 (3,429 ) (1,374 ) The Company determines the appropriate revenue recognition for its contracts by analyzing the type, terms and conditions of each contract or arrangement with a customer. Revenue is recognized when the Company satisfies the performance obligation by transferring control over goods or services to a customer. The amount of revenue recognized is measured as the consideration the Company expects to receive in exchange for those goods or services pursuant to a contract with the customer. The Company does not recognize revenue in cases where collectability is not probable, and defers the recognition until collection is probable or payment is received. Sales taxes, value added taxes, and other taxes collected from its customers concurrent with its revenue activities are excluded from revenue. The Company elected to use the practical expedient of treating shipping and handling costs associated with outbound freight as a fulfillment obligation instead of a separate performance obligation. Shipping and handling fees billed to the customer are reported as revenue and recorded in the same period as the associated fulfillment costs. Customer rebates, cash discounts and other sales incentives are recorded as a reduction of revenues in the period in which the sale is recognized. The Company establishes provisions for estimated warranties and does not generally sell extended warranties for its products. In addition, the Company elected to use the practical expedient of not disclosing the value of unsatisfied performance obligations at the end of the period when the contract has an original expected length of service of one year or less. For contracts with a length longer than twelve months, the unsatisfied performance obligations were $1.6 million at May 31, 2019. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation using the stand-alone selling price of each distinct good or service in the contract. For most performance obligations, the stand-alone selling price is directly observable as these goods or services are also sold separately by the Company. For performance obligations where the stand-alone selling price is not directly observable, the Company uses the expected cost plus a margin approach, under which the expected costs of satisfying a performance obligation are forecasted and then an appropriate margin for that distinct good or service is added. The Company’s performance obligations are satisfied at either a point in time or over time depending on the measure of progress applied toward the complete satisfaction in the transfer of control of the related goods and services to the customer. Revenue recognized at a point in time is derived from the sale of equipment and related parts. Revenue recognition for equipment and parts is generally at a point in time upon transfer of control of the goods to the customer which generally happens upon shipment of goods to the customer. Revenue recognized over time is primarily derived from engineering services and remote monitoring subscription services as well as custom and contract manufactured products. For engineering services, transfer of control to the customer is continuous over time. Therefore, revenue is recognized based on the extent of progress towards completion of the performance obligation. Judgment is required when selecting the method to measure progress towards completion. For fixed price agreements, the Company recognizes revenue on an inputs basis, using total costs incurred to date as a percentage of total costs expected to be incurred. For time and material arrangements, the Company utilizes an output method of resources consumed such as the expended hours times the hourly billing rate. For remote monitoring subscription services, customers are generally billed in advance and revenue is recognized ratably over the life of the agreement. For custom and contract manufactured products, the transfer of control is continuous over the life of the agreement and products do not have an alternate use to the Company. When the customer agreements contain contractual termination clauses and right to payment for work performed to date, the revenue from these agreements is recognized over time as the products are produced. The Company also leases certain infrastructure property to customers. Revenues from the leasing of infrastructure property are recognized on a straight-line basis over the lease term. A breakout by segment of revenue recognized over time versus point in time for the three and nine months ended May 31, 2019 is as follows: Three months ended Nine months ended May 31, 2019 May 31, 2019 ($ in thousands) Irrigation Infrastructure Total Irrigation Infrastructure Total Point in time $ 89,442 $ 19,429 $ 108,871 $ 256,466 $ 51,593 $ 308,059 Over time 9,176 1,589 10,765 25,528 4,372 29,900 Revenue from the contracts with customers 98,618 21,018 119,636 281,994 55,965 337,959 Lease revenue — 1,418 1,418 — 4,228 4,228 Total operating revenues $ 98,618 $ 22,436 $ 121,054 $ 281,994 $ 60,193 $ 342,187 Further disaggregation of revenue is disclosed in the Note 15 – Industry Segment Information. 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. Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date. The contract liabilities primarily relate to the advance consideration received from customers for customer contracts, for which transfer of control of products or performance of service occurs in the future, and therefore revenue is recognized upon completion of the performance obligation. The Company has elected to recognize the incremental costs of obtaining a contract with a term of less than one year as a selling expense when incurred. At May 31, 2019, contract assets amounted to $1.4 million. This amount is included within other current assets on the condensed consolidated balance sheet. The contract asset attributable to the cumulative effect from the adoption of ASC Topic 606 was $1.1 million; the contract asset at August 31, 2018 was $0.5 million. At May 31, 2019 and August 31, 2018, the contract liability was $13.1 million and $8.2 million, respectively. The contract liability is included within other current liabilities on the condensed consolidated balance sheets. During the Company’s nine months ended May 31, 2019, the Company recognized $0.8 million of revenue that was included in the liability as of August 31, 2018. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter. Amounts included here exclude deferred lease revenues that are also included within other current liabilities. |
Divestitures and Held-For-Sale
Divestitures and Held-For-Sale | 9 Months Ended |
May 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Divestitures and Held-For-Sale | Note 3 – Divestitures and Held-For-Sale The Company completed the divestiture of its Company-owned irrigation dealership during the first quarter of fiscal 2019 and recorded a loss on sale of $0.3 million included in general and administrative expense on the condensed consolidated statement of earnings for the nine months ended May 31, 2019. The Company received a note of $5.6 million as proceeds for this sale. This is included as a noncash investing activity on the condensed consolidated statement of cash flows. Additionally, during the fourth quarter of fiscal 2018, the Company closed one of its infrastructure manufacturing facilities in North America and consolidated its operations with an irrigation manufacturing facility. The building related to the closure is currently listed for sale and is included within the caption “Assets held-for-sale” in the condensed consolidated balance sheet as of May 31, 2019. The carrying amounts of the major classes of assets and liabilities that were classified as held-for-sale at May 31, 2019, May 31, 2018, and August 31, 2018 are as follows: ($ in thousands) May 31, 2019 May 31, 2018 August 31, 2018 Receivables, net of allowance of $0, $547, and $244 $ — $ 12,212 $ 3,473 Inventories, net — 11,210 3,676 Prepaid expenses — 178 — Other current assets — 55 — Property, plant, and equipment, net 2,744 10,693 3,637 Intangibles, net — 10,827 51 Goodwill — 6,341 — Total assets 2,744 51,516 10,837 Accounts payable — 7,522 1,476 Other current liabilities — 6,243 948 Other noncurrent liabilities — 510 — Total liabilities — 14,275 2,424 Net assets $ 2,744 $ 37,241 $ 8,413 |
Net Earnings Per Share
Net Earnings Per Share | 9 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Note 4 – Net Earnings per Share Basic earnings per share is calculated on the basis of weighted average outstanding common shares. Diluted earnings per share is calculated on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, restricted stock unit awards and other dilutive securities. When a period results in a net loss, the impact of outstanding stock awards is excluded from the diluted loss per share calculation as the inclusion would have an anti-dilutive effect. The following table shows the computation of basic and diluted net earnings per share for the three and nine months ended May 31, 2019 and May 31, 2018: Three months ended Nine months ended ($ and shares in thousands, except per share amounts) May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Numerator: Net earnings $ 2,897 $ 10,379 $ 669 $ 15,299 Denominator: Weighted average shares outstanding 10,786 10,757 10,779 10,735 Diluted effect of stock awards 28 28 28 28 Weighted average shares outstanding assuming dilution 10,814 10,785 10,807 10,763 Basic net earnings per share $ 0.27 $ 0.96 $ 0.06 $ 1.43 Diluted net earnings per share $ 0.27 $ 0.96 $ 0.06 $ 1.42 Certain stock options and restricted stock units were excluded from the computation of diluted net earnings per share because their effect would have been anti-dilutive. Performance stock units are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. In addition, the following table shows the securities excluded from the computation of earnings per share because their effect would have been anti-dilutive: Three months ended Nine months ended (Units and options in thousands) May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Restricted stock units — 1 11 24 Stock options 88 58 66 75 Performance stock units — — 3 — |
Income Taxes
Income Taxes | 9 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 – Income Taxes The Company recorded income tax expense of $0.3 million and $7.1 million for the three months ended May 31, 2019 and 2018, respectively. The Company recorded an income tax benefit of $0.8 million and expense of $12.6 million for the nine months ended May 31, 2019 and 2018, respectively. It is the Company’s policy to report income tax expense for interim periods using an estimated annual effective income tax rate. The estimated annual effective income tax rate was 42.6 percent and 28.5 percent for the nine months ended May 31, 2019 and 2018, respectively. The change in the estimated annual effective income tax rate from May 2018 to May 2019 relates primarily to the change in earnings mix between foreign and domestic operations, including a pre-tax loss in domestic operations. A larger percentage of earnings for the nine months ended May 31, 2019 was generated in foreign jurisdictions taxed at a higher statutory tax rate than the 21 percent U.S. federal tax rate. The rate was also impacted by the reduction of the U.S corporate income tax rate from a prior year blended rate of 25.7 percent to 21 percent due to U.S. Tax Reform offset by the elimination of the manufacturing deduction. The United States enacted significant tax reform into law on December 22, 2017. U.S. Tax Reform made complex and broad changes to the U.S. tax laws. U.S. Tax Reform required companies to pay a one-time deemed repatriation tax on certain undistributed earnings of foreign subsidiaries. The Company recorded a $1.7 million expense for the deemed repatriation tax in fiscal year 2018. U.S. Tax Reform also established new income tax provisions that will affect the Company’s fiscal year 2019, including, but not limited to, eliminating the U.S. manufacturing deduction, and establishing a new minimum tax on global intangible low-taxed income (“GILTI”). The Company has elected to account for GILTI as a period cost, the effect of which is reflected in the estimated annual effective tax rate of 42.6 percent for the nine months ended May 31, 2019. |
Inventories
Inventories | 9 Months Ended |
May 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 6 – Inventories Inventories consisted of the following as of May 31, 2019, May 31, 2018, and August 31, 2018: ($ in thousands) May 31, 2019 May 31, 2018 August 31, 2018 Raw materials and supplies $ 44,742 $ 39,320 $ 36,316 Work in process 6,917 7,898 9,176 Finished goods and purchased parts, net 47,659 41,454 40,197 Total inventory value before LIFO adjustment 99,318 88,672 85,689 Less adjustment to LIFO value (8,227 ) (6,037 ) (6,456 ) Inventories, net $ 91,091 $ 82,635 $ 79,233 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7 – Long-Term Debt The following table sets forth the outstanding principal balances of the Company’s long-term debt as of the dates shown: ($ in thousands) May 31, 2019 May 31, 2018 August 31, 2018 Series A Senior Notes $ 115,000 $ 115,000 $ 115,000 Revolving Credit Facility — — — Elecsys Series 2006A Bonds 1,622 1,826 1,775 Total debt 116,622 116,826 116,775 Less current portion (208 ) (204 ) (205 ) Less unamortized debt issuance costs (529 ) (450 ) (441 ) Total long-term debt $ 115,885 $ 116,172 $ 116,129 Principal payments on the debt are due as follows: Due within $ in thousands 1 year $ 208 2 years 212 3 years 216 4 years 220 5 years 225 Thereafter 115,541 $ 116,622 |
Financial Derivatives
Financial Derivatives | 9 Months Ended |
May 31, 2019 | |
Derivative Instruments And Hedges [Abstract] | |
Financial Derivatives | Note 8 – Financial Derivatives The Company uses certain financial derivatives to mitigate its exposure to volatility in foreign currency exchange rates. The Company uses these derivative instruments to hedge exposures in the ordinary course of business and does not invest in derivative instruments for speculative purposes. The Company manages market and credit risks associated with its derivative instruments by establishing and monitoring limits as to the types and degree of risk that may be undertaken, and by entering into transactions with counterparties that have investment grade credit ratings. Fair values of derivative instruments are as follows: ($ in thousands) Balance sheet location May 31, 2019 May 31, 2018 August 31, 2018 Derivatives designated as hedging instruments: Foreign currency forward contracts Other current assets $ 533 $ 2,149 $ 775 Foreign currency forward contracts Other current liabilities — (49 ) — Total derivatives designated as hedging instruments $ 533 $ 2,100 $ 775 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 1 $ 92 $ 123 Foreign currency forward contracts Other current liabilities (22 ) (11 ) (12 ) Total derivatives not designated as hedging instruments $ (21 ) $ 81 $ 111 Accumulated other comprehensive income included realized and unrealized after-tax gains of $6.3 million, $4.4 million, and $5.0 million at May 31, 2019, May 31, 2018, and August 31, 2018, respectively, related to derivative contracts designated as hedging instruments. Net Investment Hedging Relationships The amount of gain recognized in other comprehensive income is as follows: Three months ended Nine months ended ($ in thousands) May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Foreign currency forward contracts, net of tax expense of $182, $544, $368, and $271 respectively $ 682 $ 1,404 $ 1,324 $ 480 For the three months ended May 31, 2019 and 2018, the Company settled foreign currency forward contracts resulting in an after-tax net gain of $0.6 million and after-tax net loss of $0.8 million, respectively, which were included in other comprehensive income as part of a currency translation adjustment. For the nine months ended May 31, 2019 and 2018, the Company settled foreign currency forward contracts resulting in an after-tax net gain of $1.5 million and an after-tax net loss of $2.1 million, respectively, which were included in other comprehensive income as part of a currency translation adjustment. There were no amounts recorded in the condensed consolidated statements of operations related to ineffectiveness of foreign currency forward contracts related to net investment hedges for the three and nine months ended May 31, 2019 and May 31, 2018. At May 31, 2019, May 31, 2018, and August 31, 2018, the Company had outstanding foreign currency forward contracts to sell a notional amount of 32.7 million Euro, 32.8 million Euro, and 32.7 million Euro, respectively, at fixed prices to settle during the next fiscal quarter. At May 31, 2019, May 31, 2018, and August 31, 2018, the Company had an outstanding foreign currency forward contract to sell a notional amount of 43.0 million South African Rand at fixed prices to settle during the next fiscal quarter. The Company’s foreign currency forward contracts qualify as hedges of a net investment in foreign operations. Derivatives Not Designated as Hedging Instruments The Company generally does not elect hedge accounting treatment for derivative contracts related to future settlements of foreign denominated intercompany receivables and payables. If the Company does not elect hedge accounting treatment for a derivative, the Company carries the derivative at its fair value in the condensed consolidated balance sheets and recognizes any subsequent changes in its fair value during a period through earnings in the condensed consolidated statements of operations. At May 31, 2019, May 31, 2018, and August 31, 2018, the Company had notional value of $1.9 million, $5.9 million, and $5.0 million, respectively, of U.S. dollar equivalent of foreign currency forward contracts outstanding that are not designated as hedging instruments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
May 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 9 – Fair Value Measurements The following table presents the Company’s financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of May 31, 2019, May 31, 2018, and August 31, 2018, respectively. There were no transfers between any levels for the periods presented. May 31, 2019 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 110,839 $ — $ — $ 110,839 Derivative assets — 534 — 534 Derivative liabilities — (22 ) — (22 ) May 31, 2018 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 111,779 $ — $ — $ 111,779 Derivative assets — 2,241 — 2,241 Derivative liabilities — (60 ) — (60 ) August 31, 2018 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 160,787 $ — $ — $ 160,787 Derivative assets — 898 — 898 Derivative liabilities — (12 ) — (12 ) There were no required fair value adjustments for assets and liabilities measured at fair value on a non-recurring basis for the nine months ended May 31, 2019 or May 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
May 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 – Commitments and Contingencies In the ordinary course of its business operations, the Company enters into arrangements that obligate it to make future payments under contracts such as lease agreements. Additionally, the Company is involved, from time to time, in commercial litigation, employment disputes, administrative proceedings, business disputes and other legal proceedings. The Company has established accruals for certain proceedings where those proceedings present loss contingencies that are both probable and reasonably estimable at the time of determination. The Company believes that any such currently-pending proceedings are either covered by insurance or would not have a material effect on the business or its consolidated financial statements if decided in a manner that is unfavorable to the Company. Such proceedings are exclusive of environmental remediation matters which are discussed separately below. Infrastructure Products The Company is currently defending a number of product liability lawsuits arising out of vehicle collisions with highway barriers incorporating the Company’s X-Lite In June 2019, the Company was informed by letter that the Department of Justice, Civil Division and U.S. Attorney’s Office for the Northern District of New York, with the assistance of the Department of Transportation, Office of Inspector General, are conducting an investigation of the Company relating to the Company’s X-Lite end terminal and potential violations of the federal civil False Claims Act. Depending on the outcome of this matter, there could be a material adverse effect on the Company’s business or its consolidated financial statements. Given the current posture of the matter, the Company is unable to estimate a range of potential loss, if any, or to express an opinion regarding the ultimate outcome. Environmental Remediation In 1992, the Company entered into a consent decree with the U.S. Environmental Protection Agency (the “EPA”) in which the Company committed to remediate environmental contamination of the groundwater that was discovered from 1982 through 1990 at and adjacent to its Lindsay, Nebraska facility (the “site”). The site was added to the EPA’s list of priority superfund sites in 1989. Between 1993 and 1995, remediation plans for the site were approved by the EPA and fully implemented by the Company. Since 1998, the primary remaining contamination at the site has been the presence of volatile organic compounds in the soil and groundwater. To date, the remediation process has consisted primarily of drilling wells into the aquifer and pumping water to the surface to allow these contaminants to be removed by aeration. In fiscal 2012, the Company undertook an investigation to assess further potential site remediation and containment actions. In connection with the receipt of preliminary results of this investigation and other evaluations, the Company estimated that it would incur $7.2 million in remediation of source area contamination and operating costs and accrued that undiscounted amount. In addition to this source area, the Company determined that volatile organic compounds also existed under one of the manufacturing buildings on the site. Due to the location, the Company had not yet determined the extent of these compounds or the extent to which they were contributing to groundwater contamination. Based on the uncertainty of the remediation actions that might be required with respect to this affected area, the Company believed that meaningful estimates of costs or range of costs could not be made and accordingly were not accrued at that time. In December 2014, the EPA requested that the Company prepare a feasibility study related to the site, including the area covered by the building, which resulted in a revision to the Company’s remediation timeline. In the first quarter of fiscal 2015, the Company accrued $1.5 million of incremental operating costs to reflect its updated timeline. The Company began soil and groundwater testing in preparation for developing this feasibility study during the first quarter of fiscal 2016. During the second quarter of fiscal 2016, the Company completed its testing which clarified the extent of contamination, including the identification of a source of contamination near the manufacturing building that was not part of the area for which reserves were previously established. The Company, with the assistance of third-party environmental experts, developed and evaluated remediation alternatives, a proposed remediation plan, and estimated costs. Based on these estimates of future remediation and operating costs, the Company accrued an additional $13.0 million in the second quarter of fiscal 2016 and included the related expenses in general and administrative expenses in the condensed consolidated statements of operations. The current estimated aggregate accrued cost of $16.1 million is based on consideration of several remediation options that would use different technologies, each of which the Company believes could be successful in meeting the long-term regulatory requirements of the site. The Company participated in a meeting with the EPA and the Nebraska Department of Environmental Quality (the “NDEQ”) during the third quarter of fiscal 2016 to review remediation alternatives and proposed plans for the site and submitted its remedial alternatives evaluation report to the EPA in August 2016. The proposed remediation plan is preliminary and has not been approved by the EPA or the NDEQ. Based on guidance from third-party environmental experts and further discussions with the EPA and the NDEQ, the Company anticipates that a definitive plan will not be agreed upon until later in fiscal 2019 or beyond. The Company accrues the anticipated cost of investigation and remediation when the obligation is probable and can be reasonably estimated. Costs are charged against the accrual in the period in which they are paid. While the Company believes the current accrual is a good faith estimate of the long-term cost of remediation at this site based on the preliminary analysis currently available, the estimate of costs and their timing could change as a result of a number of factors, including (1) EPA and NDEQ input on the proposed remediation plan and any changes which they may subsequently require, (2) refinement of cost estimates and length of time required to complete remediation and post-remediation operations and maintenance, (3) effectiveness of the technology chosen in remediation of the site as well as changes in technology that may become available in the future, and (4) unforeseen circumstances existing at the site. As a result of these factors, the actual amount of costs incurred by the Company in connection with the remediation of contamination of its Lindsay, Nebraska site could vary from the amounts currently accrued for this expense. While any revisions could be material to the operating results of any fiscal quarter or fiscal year, the Company does not expect such additional expenses would have a material adverse effect on its liquidity or financial condition. The following table summarizes the undiscounted environmental remediation liability classifications included in the condensed consolidated balance sheets as of May 31, 2019, May 31, 2018, and August 31, 2018: ($ in thousands) May 31, 2019 May 31, 2018 August 31, 2018 Other current liabilities $ 1,243 $ 1,281 $ 1,264 Other noncurrent liabilities 14,871 15,513 15,319 Total environmental remediation liabilities $ 16,114 $ 16,794 $ 16,583 |
Warranties
Warranties | 9 Months Ended |
May 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Note 11 – Warranties The following table provides the changes in the Company’s product warranties: Three months ended Nine months ended ($ in thousands) May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Product warranty accrual balance, beginning of period $ 7,971 $ 7,548 $ 7,109 $ 8,411 Liabilities accrued for warranties during the period 2,642 1,483 5,472 3,586 Warranty claims paid during the period (1,954 ) (1,177 ) (4,260 ) (4,111 ) Changes in estimates 44 153 382 121 Transfers to liabilities held-for-sale — (872 ) — (872 ) Product warranty accrual balance, end of period $ 8,703 $ 7,135 $ 8,703 $ 7,135 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
May 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 12 – Share-Based Compensation The Company’s current share-based compensation plans, approved by the stockholders of the Company, provides for awards of stock options, restricted shares, restricted stock units (“RSUs”), stock appreciation rights, performance shares, and performance stock units (“PSUs”) to employees and non-employee directors of the Company. The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. Share-based compensation expense was $0.8 million and $1.0 million for the three months ended May 31, 2019 and 2018, respectively. Share-based compensation expense was $3.2 million and $2.9 million for the nine months ended May 31, 2019 and 2018, respectively. |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
May 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Note 13 – Other Current Liabilities ($ in thousands) May 31, 2019 May 31, 2018 August 31, 2018 Other current liabilities: Compensation and benefits $ 13,490 $ 17,258 $ 17,850 Contract liabilities 11,683 10,591 8,184 Warranties 8,703 7,135 7,109 Dealer related liabilities 3,679 2,698 2,431 Tax related liabilities 2,087 5,174 1,293 Accrued insurance 1,594 2,188 2,256 Accrued environmental liabilities 1,243 1,281 1,264 Refund liability 214 274 491 Other 6,409 7,312 6,057 Total other current liabilities $ 49,102 $ 53,911 $ 46,935 |
Share Repurchases
Share Repurchases | 9 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Share Repurchases | Note 14 – Share Repurchases There were no shares repurchased during the three and nine months ended May 31, 2019 and May 31, 2018 under the Company’s share repurchase program. The remaining amount available under the repurchase program was $63.7 million as of May 31, 2019. |
Industry Segment Information
Industry Segment Information | 9 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Industry Segment Information | Note 15 – Industry Segment Information The Company manages its business activities in two reportable segments: irrigation and infrastructure. The Company evaluates the performance of its reportable segments based on segment sales, gross profit and operating income, with operating income for segment purposes excluding unallocated corporate general and administrative expenses, interest income, interest expense, other income and expenses and income taxes. Operating income for segment purposes includes general and administrative expenses, selling expenses, engineering and research expenses and other overhead charges directly attributable to the segment. There are no inter-segment sales included in the amounts disclosed. The Company had no single customer who represented 10 percent or more of its total revenues during the three and nine months ended May 31, 2019 and 2018. Irrigation - This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial IoT solutions. The irrigation reporting segment consists of one operating segment. Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment; the manufacturing and selling of large diameter steel tubing and railroad signals and structures; and providing outsourced manufacturing and production services. The infrastructure reporting segment consists of one operating segment. Three months ended Nine months ended ($ in thousands) May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Operating revenues: Irrigation: North America $ 62,974 $ 87,407 $ 177,118 $ 234,023 International 35,644 41,015 104,876 109,617 Irrigation total 98,618 128,421 281,994 343,639 Infrastructure 22,436 41,150 60,193 80,797 Total operating revenues $ 121,054 $ 169,571 $ 342,187 $ 424,436 Operating income: Irrigation $ 11,037 $ 11,718 $ 26,341 $ 31,502 Infrastructure 3,537 14,248 7,259 20,058 Corporate (10,099 ) (7,152 ) (31,545 ) (19,254 ) Total operating income 4,475 18,814 2,055 32,306 Interest and other expense, net (1,246 ) (1,369 ) (2,213 ) (4,393 ) Earnings (loss) before income taxes $ 3,229 $ 17,445 $ (158 ) $ 27,913 Capital expenditures: Irrigation $ 3,828 $ 1,950 $ 8,306 $ 5,985 Infrastructure 3,064 252 3,430 716 Corporate 1,617 3 8,474 219 $ 8,509 $ 2,205 $ 20,210 $ 6,920 Depreciation and amortization: Irrigation $ 2,373 $ 2,974 $ 7,071 $ 9,047 Infrastructure 905 1,153 2,789 3,435 Corporate 285 125 592 369 $ 3,563 $ 4,252 $ 10,452 $ 12,851 ($ in thousands) May 31, 2019 May 31, 2018 August 31, 2018 Total assets: Irrigation $ 306,714 $ 326,058 $ 277,712 Infrastructure 80,971 88,616 69,919 Corporate 118,237 105,104 152,184 $ 505,922 $ 519,778 $ 499,815 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
May 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
New Accounting Pronouncements | Recent Accounting Guidance Not Yet Adopted In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities Recent Accounting Guidance Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, Revenue from Contracts with Customers. The Company adopted the new standard using the modified retrospective approach effective the first day of fiscal 2019. As a result of the adoption, the Company increased retained earnings, $0.5 million, net of tax. This change relates primarily to custom and contract manufacturing arrangements for certain of the Company’s irrigation and infrastructure equipment products at various stages of production at August 31, 2018 in addition to contracts with multiple performance obligations for which control of the relevant performance obligation had been satisfied. Results for reporting periods beginning September 1, 2018 are presented in accordance with ASC Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the previously applied revenue recognition guidance. In March 2017, the FASB issued ASU No. 2017-07, Presentation of Net Periodic Benefit Cost Related to Defined Benefit Plans In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), Income Tax Accounting Implications of the Tax Cuts and Jobs Act Income Taxes In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
May 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |
Schedule of Disaggregation of Revenue by Segment | A breakout by segment of revenue recognized over time versus point in time for the three and nine months ended May 31, 2019 is as follows: Three months ended Nine months ended May 31, 2019 May 31, 2019 ($ in thousands) Irrigation Infrastructure Total Irrigation Infrastructure Total Point in time $ 89,442 $ 19,429 $ 108,871 $ 256,466 $ 51,593 $ 308,059 Over time 9,176 1,589 10,765 25,528 4,372 29,900 Revenue from the contracts with customers 98,618 21,018 119,636 281,994 55,965 337,959 Lease revenue — 1,418 1,418 — 4,228 4,228 Total operating revenues $ 98,618 $ 22,436 $ 121,054 $ 281,994 $ 60,193 $ 342,187 |
ASC Topic 606 [Member] | |
Disaggregation Of Revenue [Line Items] | |
Summary of Impacts of ASU on Condensed Consolidated Financial Statements | The cumulative effect of initially applying the new revenue standard under ASC Topic 606 was recorded as an adjustment to the opening balance of retained earnings, which impacted the condensed consolidated balance sheet as follows: ($ in thousands) August 31, 2018 ASC Topic 606 Adjustments September 1, 2018 Assets Inventories, net $ 79,233 $ (942 ) $ 78,291 Other current assets 11,087 1,651 12,738 Liabilities and Stockholders' Equity Other current liabilities $ 46,935 $ 14 $ 46,949 Deferred income tax liabilities 1,083 163 1,246 Retained earnings 484,886 532 485,418 The adoption of ASC Topic 606 had the following impact on the condensed consolidated balance sheet and condensed consolidated statement of earnings for the three and nine months ended May 31, 2019: ($ in thousands) As Reported ASC Topic 606 Adjustments Balance without adoption of ASC Topic 606 Assets Inventories, net $ 91,091 $ 3,652 $ 94,743 Other current assets 17,903 (1,114 ) 16,789 Liabilities and Stockholders' Equity Other current liabilities $ 49,102 $ 5,039 $ 54,141 Retained earnings 476,580 (2,500 ) 474,080 Three months ended Nine months ended May 31, 2019 May 31, 2019 ($ in thousands) As Reported ASC Topic 606 Adjustments Balance without adoption of ASC Topic 606 As Reported ASC Topic 606 Adjustments Balance without adoption of ASC Topic 606 Statement of Earnings Operating revenues $ 121,054 $ 43 $ 121,097 $ 342,187 $ (6,303 ) $ 335,884 Operating income 4,475 (38 ) 4,437 2,055 (3,429 ) (1,374 ) |
Divestitures and Held-For-Sale
Divestitures and Held-For-Sale (Tables) | 9 Months Ended |
May 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Carrying Amounts of Major classes of Assets and Liabilities Classified as Held-for-Sale | The carrying amounts of the major classes of assets and liabilities that were classified as held-for-sale at May 31, 2019, May 31, 2018, and August 31, 2018 are as follows: ($ in thousands) May 31, 2019 May 31, 2018 August 31, 2018 Receivables, net of allowance of $0, $547, and $244 $ — $ 12,212 $ 3,473 Inventories, net — 11,210 3,676 Prepaid expenses — 178 — Other current assets — 55 — Property, plant, and equipment, net 2,744 10,693 3,637 Intangibles, net — 10,827 51 Goodwill — 6,341 — Total assets 2,744 51,516 10,837 Accounts payable — 7,522 1,476 Other current liabilities — 6,243 948 Other noncurrent liabilities — 510 — Total liabilities — 14,275 2,424 Net assets $ 2,744 $ 37,241 $ 8,413 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 9 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Earnings Per Share | The following table shows the computation of basic and diluted net earnings per share for the three and nine months ended May 31, 2019 and May 31, 2018: Three months ended Nine months ended ($ and shares in thousands, except per share amounts) May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Numerator: Net earnings $ 2,897 $ 10,379 $ 669 $ 15,299 Denominator: Weighted average shares outstanding 10,786 10,757 10,779 10,735 Diluted effect of stock awards 28 28 28 28 Weighted average shares outstanding assuming dilution 10,814 10,785 10,807 10,763 Basic net earnings per share $ 0.27 $ 0.96 $ 0.06 $ 1.43 Diluted net earnings per share $ 0.27 $ 0.96 $ 0.06 $ 1.42 |
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | the following table shows the securities excluded from the computation of earnings per share because their effect would have been anti-dilutive: Three months ended Nine months ended (Units and options in thousands) May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Restricted stock units — 1 11 24 Stock options 88 58 66 75 Performance stock units — — 3 — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
May 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following as of May 31, 2019, May 31, 2018, and August 31, 2018: ($ in thousands) May 31, 2019 May 31, 2018 August 31, 2018 Raw materials and supplies $ 44,742 $ 39,320 $ 36,316 Work in process 6,917 7,898 9,176 Finished goods and purchased parts, net 47,659 41,454 40,197 Total inventory value before LIFO adjustment 99,318 88,672 85,689 Less adjustment to LIFO value (8,227 ) (6,037 ) (6,456 ) Inventories, net $ 91,091 $ 82,635 $ 79,233 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The following table sets forth the outstanding principal balances of the Company’s long-term debt as of the dates shown: ($ in thousands) May 31, 2019 May 31, 2018 August 31, 2018 Series A Senior Notes $ 115,000 $ 115,000 $ 115,000 Revolving Credit Facility — — — Elecsys Series 2006A Bonds 1,622 1,826 1,775 Total debt 116,622 116,826 116,775 Less current portion (208 ) (204 ) (205 ) Less unamortized debt issuance costs (529 ) (450 ) (441 ) Total long-term debt $ 115,885 $ 116,172 $ 116,129 |
Schedule of Principal Payments Due on Long-Term Debt | Principal payments on the debt are due as follows: Due within $ in thousands 1 year $ 208 2 years 212 3 years 216 4 years 220 5 years 225 Thereafter 115,541 $ 116,622 |
Financial Derivatives (Tables)
Financial Derivatives (Tables) | 9 Months Ended |
May 31, 2019 | |
Derivative Instruments And Hedges [Abstract] | |
Schedule of Financial Derivatives | Fair values of derivative instruments are as follows: ($ in thousands) Balance sheet location May 31, 2019 May 31, 2018 August 31, 2018 Derivatives designated as hedging instruments: Foreign currency forward contracts Other current assets $ 533 $ 2,149 $ 775 Foreign currency forward contracts Other current liabilities — (49 ) — Total derivatives designated as hedging instruments $ 533 $ 2,100 $ 775 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 1 $ 92 $ 123 Foreign currency forward contracts Other current liabilities (22 ) (11 ) (12 ) Total derivatives not designated as hedging instruments $ (21 ) $ 81 $ 111 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income | The amount of gain recognized in other comprehensive income is as follows: Three months ended Nine months ended ($ in thousands) May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Foreign currency forward contracts, net of tax expense of $182, $544, $368, and $271 respectively $ 682 $ 1,404 $ 1,324 $ 480 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
May 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following table presents the Company’s financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of May 31, 2019, May 31, 2018, and August 31, 2018, respectively. There were no transfers between any levels for the periods presented. May 31, 2019 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 110,839 $ — $ — $ 110,839 Derivative assets — 534 — 534 Derivative liabilities — (22 ) — (22 ) May 31, 2018 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 111,779 $ — $ — $ 111,779 Derivative assets — 2,241 — 2,241 Derivative liabilities — (60 ) — (60 ) August 31, 2018 ($ in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 160,787 $ — $ — $ 160,787 Derivative assets — 898 — 898 Derivative liabilities — (12 ) — (12 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
May 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Undiscounted Environmental Remediation Liability Classifications | The following table summarizes the undiscounted environmental remediation liability classifications included in the condensed consolidated balance sheets as of May 31, 2019, May 31, 2018, and August 31, 2018: ($ in thousands) May 31, 2019 May 31, 2018 August 31, 2018 Other current liabilities $ 1,243 $ 1,281 $ 1,264 Other noncurrent liabilities 14,871 15,513 15,319 Total environmental remediation liabilities $ 16,114 $ 16,794 $ 16,583 |
Warranties (Tables)
Warranties (Tables) | 9 Months Ended |
May 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | The following table provides the changes in the Company’s product warranties: Three months ended Nine months ended ($ in thousands) May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Product warranty accrual balance, beginning of period $ 7,971 $ 7,548 $ 7,109 $ 8,411 Liabilities accrued for warranties during the period 2,642 1,483 5,472 3,586 Warranty claims paid during the period (1,954 ) (1,177 ) (4,260 ) (4,111 ) Changes in estimates 44 153 382 121 Transfers to liabilities held-for-sale — (872 ) — (872 ) Product warranty accrual balance, end of period $ 8,703 $ 7,135 $ 8,703 $ 7,135 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
May 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities Current | Other Current Liabilities ($ in thousands) May 31, 2019 May 31, 2018 August 31, 2018 Other current liabilities: Compensation and benefits $ 13,490 $ 17,258 $ 17,850 Contract liabilities 11,683 10,591 8,184 Warranties 8,703 7,135 7,109 Dealer related liabilities 3,679 2,698 2,431 Tax related liabilities 2,087 5,174 1,293 Accrued insurance 1,594 2,188 2,256 Accrued environmental liabilities 1,243 1,281 1,264 Refund liability 214 274 491 Other 6,409 7,312 6,057 Total other current liabilities $ 49,102 $ 53,911 $ 46,935 |
Industry Segment Information (T
Industry Segment Information (Tables) | 9 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three months ended Nine months ended ($ in thousands) May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Operating revenues: Irrigation: North America $ 62,974 $ 87,407 $ 177,118 $ 234,023 International 35,644 41,015 104,876 109,617 Irrigation total 98,618 128,421 281,994 343,639 Infrastructure 22,436 41,150 60,193 80,797 Total operating revenues $ 121,054 $ 169,571 $ 342,187 $ 424,436 Operating income: Irrigation $ 11,037 $ 11,718 $ 26,341 $ 31,502 Infrastructure 3,537 14,248 7,259 20,058 Corporate (10,099 ) (7,152 ) (31,545 ) (19,254 ) Total operating income 4,475 18,814 2,055 32,306 Interest and other expense, net (1,246 ) (1,369 ) (2,213 ) (4,393 ) Earnings (loss) before income taxes $ 3,229 $ 17,445 $ (158 ) $ 27,913 Capital expenditures: Irrigation $ 3,828 $ 1,950 $ 8,306 $ 5,985 Infrastructure 3,064 252 3,430 716 Corporate 1,617 3 8,474 219 $ 8,509 $ 2,205 $ 20,210 $ 6,920 Depreciation and amortization: Irrigation $ 2,373 $ 2,974 $ 7,071 $ 9,047 Infrastructure 905 1,153 2,789 3,435 Corporate 285 125 592 369 $ 3,563 $ 4,252 $ 10,452 $ 12,851 ($ in thousands) May 31, 2019 May 31, 2018 August 31, 2018 Total assets: Irrigation $ 306,714 $ 326,058 $ 277,712 Infrastructure 80,971 88,616 69,919 Corporate 118,237 105,104 152,184 $ 505,922 $ 519,778 $ 499,815 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Nov. 30, 2018 | May 31, 2018 | May 31, 2018 | May 31, 2019 | Sep. 01, 2018 | Aug. 31, 2018 | |
Basis Of Presentation [Line Items] | ||||||
Retained earnings | $ 483,243 | $ 483,243 | $ 476,580 | $ 484,886 | ||
ASC Topic 606 [Member] | ||||||
Basis Of Presentation [Line Items] | ||||||
Retained earnings | $ 485,418 | |||||
ASU No. 2017-07 [Member] | ||||||
Basis Of Presentation [Line Items] | ||||||
Net periodic pension cost | $ 100 | $ 300 | ||||
ASU No. 2018-02 [Member] | ||||||
Basis Of Presentation [Line Items] | ||||||
Tax reclassification from accumulated other comprehensive income to retained earnings due to tax reform | $ 500 | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASC Topic 606 [Member] | ||||||
Basis Of Presentation [Line Items] | ||||||
Retained earnings | $ (2,500) | $ 532 |
Revenue Recognition (Summary of
Revenue Recognition (Summary of Impacts of ASU on Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | May 31, 2019 | Sep. 01, 2018 | Aug. 31, 2018 | May 31, 2018 |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Inventories, net | $ 91,091 | $ 79,233 | $ 82,635 | |
Other current assets | 17,903 | 11,087 | 12,341 | |
Other current liabilities | 49,102 | 46,935 | 53,911 | |
Deferred income tax liabilities | 918 | 1,083 | 1,117 | |
Retained earnings | 476,580 | 484,886 | $ 483,243 | |
ASC Topic 606 [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Inventories, net | $ 78,291 | |||
Other current assets | 12,738 | |||
Other current liabilities | 46,949 | |||
Deferred income tax liabilities | 1,246 | |||
Retained earnings | $ 485,418 | |||
ASC Topic 606 Adjustments [Member] | ASC Topic 606 [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Inventories, net | 3,652 | (942) | ||
Other current assets | (1,114) | 1,651 | ||
Other current liabilities | 5,039 | 14 | ||
Deferred income tax liabilities | 163 | |||
Retained earnings | (2,500) | $ 532 | ||
Balance Without Adoption of ASC Topic 606 [Member] | ASC Topic 606 [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Inventories, net | 94,743 | |||
Other current assets | 16,789 | |||
Other current liabilities | 54,141 | |||
Retained earnings | $ 474,080 |
Revenue Recognition (Summary _2
Revenue Recognition (Summary of Impacts of ASU on Condensed Consolidated Statement of Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Statement of Earnings | ||||
Operating revenues | $ 121,054 | $ 169,571 | $ 342,187 | $ 424,436 |
Operating income | 4,475 | $ 18,814 | 2,055 | $ 32,306 |
ASC Topic 606 Adjustments [Member] | ASC Topic 606 [Member] | ||||
Statement of Earnings | ||||
Operating revenues | 43 | (6,303) | ||
Operating income | (38) | (3,429) | ||
Balance Without Adoption of ASC Topic 606 [Member] | ASC Topic 606 [Member] | ||||
Statement of Earnings | ||||
Operating revenues | 121,097 | 335,884 | ||
Operating income | $ 4,437 | $ (1,374) |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
May 31, 2019 | Aug. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Unsatisfied performance obligation amount | $ 1.6 | |
Contract assets | $ 0.5 | |
Revenue recognized | 0.8 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASC Topic 606 [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract assets | 1.1 | |
Other Current Assets [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract assets | 1.4 | |
Other Current Liabilities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract liabilities | $ 13.1 | $ 8.2 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregation of Revenue by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue from the contracts with customers | $ 119,636 | $ 337,959 | ||
Lease revenue | 1,418 | 4,228 | ||
Operating revenues | 121,054 | $ 169,571 | 342,187 | $ 424,436 |
Irrigation [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from the contracts with customers | 98,618 | 281,994 | ||
Lease revenue | 0 | 0 | ||
Operating revenues | 98,618 | 128,421 | 281,994 | 343,639 |
Infrastructure [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from the contracts with customers | 21,018 | 55,965 | ||
Lease revenue | 1,418 | 4,228 | ||
Operating revenues | 22,436 | $ 41,150 | 60,193 | $ 80,797 |
Point in Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from the contracts with customers | 108,871 | 308,059 | ||
Point in Time [Member] | Irrigation [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from the contracts with customers | 89,442 | 256,466 | ||
Point in Time [Member] | Infrastructure [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from the contracts with customers | 19,429 | 51,593 | ||
Over Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from the contracts with customers | 10,765 | 29,900 | ||
Over Time [Member] | Irrigation [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from the contracts with customers | 9,176 | 25,528 | ||
Over Time [Member] | Infrastructure [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from the contracts with customers | $ 1,589 | $ 4,372 |
Divestitures and Held-For-Sal_2
Divestitures and Held-For-Sale (Narrative) (Details) $ in Thousands | 9 Months Ended | ||
May 31, 2019USD ($) | May 31, 2018USD ($) | Aug. 31, 2018Facility | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Loss on sale of irrigation dealership | $ 301 | $ 6,023 | |
Note receivable from sale of business | 5,589 | $ 0 | |
North America [Member] | Infrastructure [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Number of manufacturing facilities closed | Facility | 1 | ||
General and Administrative Expense [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Loss on sale of irrigation dealership | $ 300 |
Schedule of Carrying Amounts of
Schedule of Carrying Amounts of Major classes of Assets and Liabilities Classified as Held-for-Sale (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Discontinued Operations And Disposal Groups [Abstract] | |||
Receivables, net of allowance of $0, $547, and $244 | $ 0 | $ 3,473 | $ 12,212 |
Inventories, net | 0 | 3,676 | 11,210 |
Prepaid expenses | 0 | 0 | 178 |
Other current assets | 0 | 0 | 55 |
Property, plant, and equipment, net | 2,744 | 3,637 | 10,693 |
Intangibles, net | 0 | 51 | 10,827 |
Goodwill | 0 | 0 | 6,341 |
Total assets | 2,744 | 10,837 | 51,516 |
Accounts payable | 0 | 1,476 | 7,522 |
Other current liabilities | 0 | 948 | 6,243 |
Other noncurrent liabilities | 0 | 0 | 510 |
Total liabilities | 0 | 2,424 | 14,275 |
Net assets | $ 2,744 | $ 8,413 | $ 37,241 |
Schedule of Carrying Amounts _2
Schedule of Carrying Amounts of Major classes of Assets and Liabilities Classified as Held-for-Sale (Parenthetical) (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Discontinued Operations And Disposal Groups [Abstract] | |||
Receivables, allowance | $ 0 | $ 244 | $ 547 |
Net Earnings Per Share (Schedul
Net Earnings Per Share (Schedule of Computation of Basic and Diluted Net Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Net earnings | $ 2,897 | $ 10,379 | $ 669 | $ 15,299 |
Weighted average shares outstanding | 10,786 | 10,757 | 10,779 | 10,735 |
Diluted effect of stock awards | 28 | 28 | 28 | 28 |
Weighted average shares outstanding assuming dilution | 10,814 | 10,785 | 10,807 | 10,763 |
Basic net earnings per share | $ 0.27 | $ 0.96 | $ 0.06 | $ 1.43 |
Diluted net earnings per share | $ 0.27 | $ 0.96 | $ 0.06 | $ 1.42 |
Net Earnings Per Share (Sched_2
Net Earnings Per Share (Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the computation of earnings per share | 0 | 1 | 11 | 24 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the computation of earnings per share | 88 | 58 | 66 | 75 |
Performance Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the computation of earnings per share | 0 | 0 | 3 | 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income tax (benefit) expense | $ 332 | $ 7,066 | $ (827) | $ 12,614 | |
Estimated annual effective income tax rate | 42.60% | 28.50% | |||
Blended U.S. corporate income tax rate | 21.00% | 25.70% | |||
Tax adjustment for unusual items | $ 800 | $ 4,700 | |||
Deemed repatriation tax expense | $ 1,700 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Inventory Disclosure [Abstract] | |||
Raw materials and supplies | $ 44,742 | $ 36,316 | $ 39,320 |
Work in process | 6,917 | 9,176 | 7,898 |
Finished goods and purchased parts, net | 47,659 | 40,197 | 41,454 |
Total inventory value before LIFO adjustment | 99,318 | 85,689 | 88,672 |
Less adjustment to LIFO value | (8,227) | (6,456) | (6,037) |
Inventories, net | $ 91,091 | $ 79,233 | $ 82,635 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Debt Instrument [Line Items] | |||
Total debt | $ 116,622 | $ 116,775 | $ 116,826 |
Less current portion | (208) | (205) | (204) |
Less unamortized debt issuance costs | (529) | (441) | (450) |
Total long-term debt | 115,885 | 116,129 | 116,172 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 0 | 0 | 0 |
Elecsys Series 2006A Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 1,622 | 1,775 | 1,826 |
Series A Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | $ 115,000 | $ 115,000 | $ 115,000 |
Long-Term Debt (Schedule of Pri
Long-Term Debt (Schedule of Principal Payments Due on Long-Term Debt) (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Debt Disclosure [Abstract] | |||
1 year | $ 208 | ||
2 years | 212 | ||
3 years | 216 | ||
4 years | 220 | ||
5 years | 225 | ||
Thereafter | 115,541 | ||
Total debt | $ 116,622 | $ 116,775 | $ 116,826 |
Financial Derivatives (Schedule
Financial Derivatives (Schedule of Financial Derivatives) (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Derivatives Designated As Hedging Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivatives | $ 533 | $ 775 | $ 2,100 |
Derivatives Designated As Hedging Instruments [Member] | Other Current Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 533 | 775 | 2,149 |
Derivatives Designated As Hedging Instruments [Member] | Other Current Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | 0 | 0 | (49) |
Derivatives Not Designated As Hedging Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivatives | (21) | 111 | 81 |
Derivatives Not Designated As Hedging Instruments [Member] | Other Current Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 1 | 123 | 92 |
Derivatives Not Designated As Hedging Instruments [Member] | Other Current Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | $ (22) | $ (12) | $ (11) |
Financial Derivatives (Narrativ
Financial Derivatives (Narrative) (Details) € in Millions, R in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||
May 31, 2019USD ($) | May 31, 2018USD ($) | May 31, 2019USD ($) | May 31, 2018USD ($) | May 31, 2019ZAR (R) | May 31, 2019EUR (€) | Aug. 31, 2018USD ($) | Aug. 31, 2018ZAR (R) | Aug. 31, 2018EUR (€) | May 31, 2018ZAR (R) | May 31, 2018EUR (€) | |
Foreign Exchange Forward [Member] | Derivatives Not Designated As Hedging Instruments [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Outstanding foreign currency forward contracts | $ 1.9 | $ 5.9 | $ 1.9 | $ 5.9 | $ 5 | ||||||
Fair Value Hedging [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Realized and unrealized gains, net of related income tax effects | 6.3 | 4.4 | 6.3 | 4.4 | $ 5 | ||||||
Net Investment Hedging [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Foreign currency translation forward contracts, after tax net gain (loss) | 0.6 | (0.8) | 1.5 | (2.1) | |||||||
Derivative contracts ineffective amount | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Outstanding foreign currency forward contracts | R 43 | € 32.7 | R 43 | € 32.7 | R 43 | € 32.8 |
Financial Derivatives (Schedu_2
Financial Derivatives (Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Details) - Foreign Currency Forward Contracts [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||||
Foreign currency forward contracts, net of tax expense of $182, $544, $368, and $271 respectively | $ 682 | $ 1,404 | $ 1,324 | $ 480 |
Tax expense | $ 182 | $ 544 | $ 368 | $ 271 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Financial Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 110,839 | $ 160,787 | $ 111,779 |
Derivative assets | 534 | 898 | 2,241 |
Derivative liabilities | (22) | (12) | (60) |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 110,839 | 160,787 | 111,779 |
Derivative assets | 0 | 0 | 0 |
Derivative liabilities | 0 | 0 | 0 |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Derivative assets | 534 | 898 | 2,241 |
Derivative liabilities | (22) | (12) | (60) |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Derivative assets | 0 | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) | 9 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Assets fair value adjustments | $ 0 | $ 0 |
Liabilities fair value adjustments | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - Lindsay, Nebraska Facility [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | Nov. 30, 2014 | Aug. 31, 2012 | May 31, 2019 | |
Commitments And Contingencies [Line Items] | ||||
Environmental remediation expense | $ 13 | $ 1.5 | $ 7.2 | |
Current environmental remediation accrual | $ 16.1 |
Commitments and Contingencies_3
Commitments and Contingencies (Summary of Undiscounted Environmental Remediation Liability Classifications) (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Commitments And Contingencies Disclosure [Abstract] | |||
Other current liabilities | $ 1,243 | $ 1,264 | $ 1,281 |
Other noncurrent liabilities | 14,871 | 15,319 | 15,513 |
Total environmental remediation liabilities | $ 16,114 | $ 16,583 | $ 16,794 |
Warranties (Schedule of Product
Warranties (Schedule of Product Warranty Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Product Warranties Disclosures [Abstract] | ||||
Product warranty accrual balance, beginning of period | $ 7,971 | $ 7,548 | $ 7,109 | $ 8,411 |
Liabilities accrued for warranties during the period | 2,642 | 1,483 | 5,472 | 3,586 |
Warranty claims paid during the period | (1,954) | (1,177) | (4,260) | (4,111) |
Changes in estimates | 44 | 153 | 382 | 121 |
Transfers to liabilities held-for-sale | 0 | (872) | 0 | (872) |
Product warranty accrual balance, end of period | $ 8,703 | $ 7,135 | $ 8,703 | $ 7,135 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Share-based compensation expense | $ 0.8 | $ 1 | $ 3.2 | $ 2.9 |
Other Current Liabilities (Sche
Other Current Liabilities (Schedule of Other Liabilities Current) (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Other Liabilities Disclosure [Abstract] | |||
Compensation and benefits | $ 13,490 | $ 17,850 | $ 17,258 |
Contract liabilities | 11,683 | 8,184 | 10,591 |
Warranties | 8,703 | 7,109 | 7,135 |
Dealer related liabilities | 3,679 | 2,431 | 2,698 |
Tax related liabilities | 2,087 | 1,293 | 5,174 |
Accrued insurance | 1,594 | 2,256 | 2,188 |
Accrued environmental liabilities | 1,243 | 1,264 | 1,281 |
Refund liability | 214 | 491 | 274 |
Other | 6,409 | 6,057 | 7,312 |
Total other current liabilities | $ 49,102 | $ 46,935 | $ 53,911 |
Share Repurchases (Narrative) (
Share Repurchases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Equity [Abstract] | ||||
Number of shares of common stock repurchased during the period | 0 | 0 | 0 | 0 |
Remaining amount available under the repurchase program | $ 63.7 | $ 63.7 |
Industry Segment Information (N
Industry Segment Information (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
May 31, 2019customer | May 31, 2018customer | May 31, 2019Segmentcustomer | May 31, 2018customer | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 2 | |||
Irrigation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of operating segments | 1 | |||
Infrastructure [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of operating segments | 1 | |||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Number of major customers | customer | 0 | 0 | 0 | 0 |
Industry Segment Information (S
Industry Segment Information (Schedule of Segment Reporting Information Impacts on Statement of Operations, by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total operating revenues | $ 121,054 | $ 169,571 | $ 342,187 | $ 424,436 |
Total operating income | 4,475 | 18,814 | 2,055 | 32,306 |
Interest and other expense, net | (1,246) | (1,369) | (2,213) | (4,393) |
Earnings (loss) before income taxes | 3,229 | 17,445 | (158) | 27,913 |
Capital expenditures | 8,509 | 2,205 | 20,210 | 6,920 |
Depreciation and amortization | 3,563 | 4,252 | 10,452 | 12,851 |
Irrigation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 98,618 | 128,421 | 281,994 | 343,639 |
Total operating income | 11,037 | 11,718 | 26,341 | 31,502 |
Capital expenditures | 3,828 | 1,950 | 8,306 | 5,985 |
Depreciation and amortization | 2,373 | 2,974 | 7,071 | 9,047 |
Irrigation [Member] | North America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 62,974 | 87,407 | 177,118 | 234,023 |
Irrigation [Member] | International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 35,644 | 41,015 | 104,876 | 109,617 |
Infrastructure [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 22,436 | 41,150 | 60,193 | 80,797 |
Total operating income | 3,537 | 14,248 | 7,259 | 20,058 |
Capital expenditures | 3,064 | 252 | 3,430 | 716 |
Depreciation and amortization | 905 | 1,153 | 2,789 | 3,435 |
Corporate Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income | (10,099) | (7,152) | (31,545) | (19,254) |
Capital expenditures | 1,617 | 3 | 8,474 | 219 |
Depreciation and amortization | $ 285 | $ 125 | $ 592 | $ 369 |
Industry Segment Information _2
Industry Segment Information (Schedule of Segment Reporting Information Impacts on Balance Sheet, by Segment) (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 505,922 | $ 499,815 | $ 519,778 |
Irrigation [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 306,714 | 277,712 | 326,058 |
Infrastructure [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 80,971 | 69,919 | 88,616 |
Corporate Segment | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 118,237 | $ 152,184 | $ 105,104 |