Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~March 19, 2018, 10,757,318~~January 4, 2021, 10,865,246 shares of the registrant’s common stock were outstanding.

	Three months ended							Six months ended						Three months ended
($ and shares in thousands, except per share amounts)	February 28, 2018				February 28, 2017			February 28, 2018			February 28, 2017			November 30, 2020			November 30, 2019
Operating revenues	$	130,339			$	124,125		$	254,865		$	234,515		$	108,485		$	109,393
Cost of operating revenues		95,023				91,184			187,152			173,200			77,077			75,319
Gross profit		35,316				32,941			67,713			61,315			31,408			34,074

Operating expenses:
Selling expense		10,020				10,132			20,245			20,114			7,331			6,492
General and administrative expense		14,311				10,230			26,229			21,585			13,452			11,804
Engineering and research expense		3,919				4,057			7,972			8,359			3,090			3,502
Total operating expenses		28,250				24,419			54,446			50,058			23,873			21,798

Operating income		7,066				8,522			13,267			11,257			7,535			12,276

Other income (expense):
Other (expense) income:
Interest expense		(1,095	)			(1,201	)		(2,331	)		(2,410	)		(1,201	)		(1,186	)
Interest income		311				171			686			336			303			615
Other (expense) income, net		(606	)			144			(1,154	)		(212	)
Other income (expense), net															246			(450	)
Total other (expense) income															(652	)		(1,021	)

Earnings before income taxes		5,676		��		7,636			10,468			8,971			6,883			11,255

Income tax expense		3,941				2,624			5,548			3,086
Income tax (benefit) expense															(212	)		2,910

Net earnings	$	1,735			$	5,012		$	4,920		$	5,885		$	7,095		$	8,345

Earnings per share:
Basic	$	0.16			$	0.47		$	0.46		$	0.55		$	0.65		$	0.77
Diluted	$	0.16			$	0.47		$	0.46		$	0.55		$	0.65		$	0.77

Shares used in computing earnings per share:
Basic		10,743				10,657			10,724			10,647			10,845			10,795
Diluted		10,765				10,674			10,752			10,670			10,888			10,828

Cash dividends declared per share	$	0.30			$	0.29		$	0.60		$	0.58		$	0.32		$	0.31

	Three months ended				Six months ended				Three months ended
($ in thousands)	February 28, 2018		February 28, 2017		February 28, 2018		February 28, 2017		November 30, 2020			November 30, 2019
Net earnings	$	1,735	$	5,012	$	4,920	$	5,885	$	7,095		$	8,345
Other comprehensive income:
Other comprehensive income (loss):
Defined benefit pension plan adjustment, net of tax		37		38		69		75		43			43
Foreign currency translation adjustment, net of hedging activities and tax		1,814		1,947		780		513		1,384			(293	)
Total other comprehensive income, net of tax (benefit) expense of ($306), $87, ($274) and $653, respectively		1,851		1,985		849		588
Unrealized loss on marketable securities, net of tax										(32	)		0
Total other comprehensive income (loss), net of tax (benefit) expense of ($32), and $76, respectively										1,395			(250	)
Total comprehensive income	$	3,586	$	6,997	$	5,769	$	6,473	$	8,490		$	8,095

($ and shares in thousands, except par values)	February 28, 2018			February 28, 2017			August 31, 2017			November 30, 2020			November 30, 2019			August 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	102,211		$	102,825		$	121,620		$	126,802		$	120,910		$	121,403
Receivables, net of allowance of $7,736, $7,473, and $7,447, respectively		96,738			78,828			73,850
Marketable securities											19,624			0			19,511
Receivables, net of allowance of $2,960, $2,785, and $2,780, respectively											74,909			79,317			84,604
Inventories, net		102,975			82,847			86,155			114,278			97,284			104,792
Prepaid expenses		5,339			5,208			4,384
Other current assets		6,092			15,968			6,925
Assets held-for-sale											0			2,744			0
Other current assets, net											20,837			16,376			17,625
Total current assets		313,355			285,676			292,934			356,450			316,631			347,935

Property, plant, and equipment:
Cost		192,898			185,714			189,140			212,725			193,000			208,107
Less accumulated depreciation		(120,220	)		(110,082	)		(114,642	)		(131,430	)		(122,695	)		(128,526	)
Property, plant, and equipment, net		72,678			75,632			74,498			81,295			70,305			79,581

Intangibles, net		40,677			44,890			42,808			22,817			23,739			23,477
Goodwill		77,296			76,577			77,131			68,027			64,358			68,004
Operating lease right-of-use assets											26,008			25,764			27,457
Deferred income tax assets		5,773			3,094			5,311			9,924			9,902			9,935
Other noncurrent assets		12,575			4,747			13,350			10,681			16,112			14,137
Total assets	$	522,354		$	490,616		$	506,032		$	575,202		$	526,811		$	570,526

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	46,599		$	44,254		$	36,717		$	36,263		$	30,097		$	29,554
Current portion of long-term debt		203			199			201			214			210			195
Other current liabilities		57,720			46,350			55,119			65,910			54,494			72,646
Total current liabilities		104,522			90,803			92,037			102,387			84,801			102,395

Pension benefits liabilities		6,152			6,708			6,295			6,293			5,948			6,374
Long-term debt		116,673			116,876			116,775			115,641			115,805			115,682
Operating lease liabilities											24,863			25,323			25,862
Deferred income tax liabilities		1,179			1,678			1,191			902			845			889
Other noncurrent liabilities		20,768			20,995			19,679			21,215			21,089			20,806
Total liabilities		249,294			237,060			235,977			271,301			253,811			272,008

Shareholders' equity:
Preferred stock of $1 par value -
Authorized 2,000 shares; no shares issued and outstanding		—			—			—
Common stock of $1 par value - authorized 25,000 shares; 18,841, 18,746, and 18,780 shares issued, respectively		18,841			18,746			18,780

Preferred stock of $1 par value - authorized 2,000 shares; 0 shares issued and outstanding											0			0			0
Common stock of $1 par value - authorized 25,000 shares; 18,948, 18,897, and 18,918 shares issued, respectively											18,948			18,897			18,918
Capital in excess of stated value		66,625			59,002			63,006			78,026			71,706			77,686
Retained earnings		476,091			466,630			477,615			503,342			479,732			499,724
Less treasury stock - at cost, 8,083, 8,083, and 8,083 shares, respectively		(277,238	)		(277,238	)		(277,238	)
Less treasury stock - at cost, 8,083 shares											(277,238	)		(277,238	)		(277,238	)
Accumulated other comprehensive loss, net		(11,259	)		(13,584	)		(12,108	)		(19,177	)		(20,097	)		(20,572	)
Total shareholders' equity		273,060			253,556			270,055			303,901			273,000			298,518
Total liabilities and shareholders' equity	$	522,354		$	490,616		$	506,032		$	575,202		$	526,811		$	570,526

Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
($ and shares in thousands, except per share amounts)
(Unaudited)
	Shares of common stock		Shares of treasury stock		Common stock		Capital in excess of stated value			Retained earnings			Treasury stock			Accumulated other comprehensive loss, net			Total shareholders’ equity
Balance at August 31, 2019		18,870		8,083	$	18,870	$	71,684		$	474,740		$	(277,238	)	$	(19,847	)	$	268,209
Comprehensive income:
Net earnings		0		0		0		0			8,345			0			0			8,345
Other comprehensive loss		0		0		0		0			0			0			(250	)		(250	)
Total comprehensive income		0		0		0		0			0			0			0			8,095
Cash dividends ($.31 per share)		0		0		0		0			(3,353	)		0			0			(3,353	)
Issuance of common shares under share compensation plans, net		27		0		27		(1,138	)		0			0			0			(1,111	)
Share-based compensation expense		0		0		0		1,160			0			0			0			1,160
Balance at November 30, 2019		18,897		8,083	$	18,897	$	71,706		$	479,732		$	(277,238	)	$	(20,097	)	$	273,000


Balance at August 31, 2020		18,918		8,083	$	18,918	$	77,686		$	499,724		$	(277,238	)	$	(20,572	)	$	298,518
Comprehensive income:
Net earnings		0		0		0		0			7,095			0			0			7,095
Other comprehensive income		0		0		0		0			0			0			1,395			1,395
Total comprehensive income		0		0		0		0			0			0			0			8,490
Cash dividends ($.32 per share)		0		0		0		0			(3,477	)		0			0			(3,477	)
Repurchase of common stock		0		0		0		0			0			0			0			0
Issuance of common shares under share compensation plans, net		30		0		30		(1,243	)		0			0			0			(1,213	)
Share-based compensation expense		0		0		0		1,583			0			0			0			1,583
Balance at November 30, 2020		18,948		8,083	$	18,948	$	78,026		$	503,342		$	(277,238	)	$	(19,177	)	$	303,901

See accompanying notes to condensed consolidated financial statements.

	Three months ended
($ in thousands)	November 30, 2020			November 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	7,095		$	8,345
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		5,140			4,748
Provision for uncollectible accounts receivable		158			248
Deferred income taxes		140			1,987
Share-based compensation expense		1,583			1,160
Foreign currency transaction (gain) loss		(203	)		668
Other, net		36			(294	)
Changes in assets and liabilities:
Receivables		8,896			(4,122	)
Inventories		(8,294	)		(4,931	)
Other current assets		(3,068	)		(2,466	)
Accounts payable		7,286			725
Other current liabilities		(7,146	)		(1,901	)
Other noncurrent assets and liabilities		3,750			(2,626	)
Net cash provided by operating activities		15,373			1,541

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(5,614	)		(4,322	)
Purchases of marketable securities available-for-sale		(3,844	)		0
Proceeds from maturities of marketable securities available-for-sale		3,616			0
Proceeds from settlement of net investment hedges		0			1,092
Other investing activities, net		0			24
Net cash used in investing activities		(5,842	)		(3,206	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		56			0
Common stock withheld for payroll tax obligations		(1,269	)		(1,111	)
Principal payments on long-term debt		(35	)		(52	)
Dividends paid		(3,477	)		(3,353	)
Net cash used in financing activities		(4,725	)		(4,516	)

Effect of exchange rate changes on cash and cash equivalents		593			(113	)
Net change in cash and cash equivalents		5,399			(6,294	)
Cash and cash equivalents, beginning of period		121,403			127,204
Cash and cash equivalents, end of period	$	126,802		$	120,910

SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid, net of refunds	$	418		$	(56	)
Interest paid	$	77		$	67

Six months ended

($ in thousands)

February 28,
2018

February 28,
2017

CASH FLOWS FROM OPERATING ACTIVITIES:

Net earnings

$
4,920

$
5,885

Adjustments to reconcile net earnings to net cash provided by operating
activities:

Depreciation and amortization

8,599

8,120

Provision for uncollectible accounts receivable
��

228

(609
)
Deferred income taxes

(931
)

1,707

Share-based compensation expense

1,887

1,815

Other, net

45

(594
)
Changes in assets and liabilities:

Receivables

(23,084
)

2,710

Inventories

(15,239
)

(7,368
)
Prepaid expenses and other current assets

(1,731
)

3,375

Accounts payable

9,728

11,926

Other current liabilities

5,313

(14,122
)
Other noncurrent assets and liabilities

1,368

(2,123
)
Net cash (used in) provided by operating activities

(8,897
)

10,722

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property, plant, and equipment

(4,715
)

(4,194
)
Proceeds from settlement of net investment hedges

101

2,054

Payments for settlement of net investment hedges

(1,967
)

(482
)
Other investing activities, net

137

136

Net cash used in investing activities

(6,444
)

(2,486
)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from exercise of stock options

2,788

647

Common stock withheld for payroll tax obligations

(833
)

(635
)
Principal payments on long-term debt

(100
)

(98
)
Dividends paid

(6,444
)

(6,181
)
Net cash used in financing activities

(4,589
)

(6,267
)

Effect of exchange rate changes on cash and cash equivalents

521

(390
)
Net change in cash and cash equivalents

(19,409
)

1,579

Cash and cash equivalents, beginning of period

121,620

101,246

Cash and cash equivalents, end of period

$
102,211

$
102,825

SUPPLEMENTAL CASH FLOW INFORMATION

Income taxes paid

$
2,141

$
7,233

Interest paid

$
2,301

$
2,383

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, ~~2017.~~2020.

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.~~

In ~~May 2014,~~June 2016, the Financial Accounting Standards Board ~~(the “FASB”~~(“FASB”) issued Accounting Standards Update (“ASU”) No. ~~2014-09,~~ ~~Revenue from Contracts with Customers.~~ ~~In August 2015, the FASB issued ASU No. 2015-14,~~ ~~Revenue from Contracts with Customers: Deferral~~2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of ~~the Effective Date.~~Credit Losses on Financial Instruments. The standard ~~provides a single model for revenue arising from contracts with customers and supersedes~~replaces the incurred loss impairment methodology in current revenue recognition guidance. The ASU requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of goods or services. The ASU will replace existing revenue recognition guidance in U.S. GAAP ~~and becomes effective~~with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. The Company adopted this in the first quarter of the Company’s fiscal ~~2019. Early~~2021. The adoption ~~is permitted only in fiscal 2018. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year~~ of ~~adoption, through~~this ASU did not have a ~~cumulative adjustment.~~

The Company is currently in the assessment phase, reviewing a representative sample of contracts, holding discussions with key stakeholders, and cataloging potential impacts on the Company’s operations, accounting policies, internal control over financial reporting, and financial statements. The Company has identified that the key changes in the ASU that could potentiallymaterial impact the Company’s revenue recognition relates to the allocation of contract revenues between various products and services, the timing of when those revenues are recognized, and the deferral of incremental costs to obtain a contract. The Company is continuing to evaluate the impact of the ASU on the consolidated statements of earnings, financial position, and financial statement disclosures, as well as the adoption method.

~~In February 2016, the FASB issued ASU No. 2016-02,~~ ~~Leases (Topic 842).~~ The standard requires a lessee to recognize assets and liabilities arising from an operating lease on the balance sheet. Additionally, companies are permitted to make an accounting policy election to not recognize lease assets and liabilities for leases with a term of 12 months or less. The effective date of ASU No. 2016-02 will be the first quarter of the Company’s fiscal 2020 with early adoption permitted. The Company is currently evaluating the effect that adopting this standard will have on its consolidated financial ~~statements.~~statements and related disclosures.

In ~~March~~January 2017, the FASB ~~issued~~issues ASU ~~2017-07,~~ ~~Presentation of Net Periodic Benefit Cost Related to Defined Benefit Plans~~2017-04, Simplifying the Test for Goodwill Impairment, which ~~amends~~eliminates the ~~income statement presentation requirements for~~requirement to calculate the ~~components~~implied fair value of ~~net periodic benefit cost for~~goodwill; rather, an ~~entity's defined benefit pension and post-retirement plans. ASU 2017-07 is effective~~entity will measure its goodwill impairment by the amount the carrying value exceeds the fair value of a reporting unit. The Company adopted this in the first quarter of the Company’s fiscal ~~2019 with early~~2021. The adoption ~~permitted. The Company does not believe~~of this ASU ~~will~~did not have a material impact on ~~the~~its condensed consolidated financial ~~statements.~~statements and related disclosures.

A breakout by segment of revenue recognized over time versus at a point in time for the ~~FASB issued ASU 2017-12,~~ ~~Targeted Improvements to Accounting for Hedging Activities~~, which improves the financial reporting of hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. ASU 2017-12three months ended November 30, 2020 is effective in the first quarter of the Company’s fiscal 2020 with early adoption permitted. The Company does not believe the adoption of this ASU will have a material impact on the consolidated financial statements.as follows:

Further disaggregation of revenue is disclosed in the ~~FASB issued ASU~~ ~~2018-02,~~ ~~Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification~~Note 13 – Industry Segment Information.

For contracts with an initial length longer than twelve months, the unsatisfied performance obligations were $11.3 million at November 30, 2020.

Contract assets arise when recorded revenue for a contract exceeds the amounts billed under the terms of ~~Certain Tax Effects from Accumulated Other Comprehensive Income, which provides entities with the option~~such contract. Contract liabilities arise when billed amounts exceed revenue recorded. Amounts are billable to ~~eliminate the stranded tax effects associated with the change in tax rates under U.S. Tax Reform through a reclassification~~customers upon various measures of performance, including achievement of certain milestones and completion of specified units of completion of the ~~stranded tax effects from~~ ~~accumulated~~contract. At November 30, 2020, November 30, 2019, and August 31, 2019, contract assets amounted to $1.2 million, $1.2 million, and $0.9 million, respectively. These amounts are included within other ~~comprehensive income to retained earnings.~~ ASU 2018-02 is effective in the first quarter of the Company’s fiscal 2020 with early adoption permitted. Companies should apply the proposed amendments either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate from U.S. Tax Reform is recognized. ~~The Company does not believe the adoption of this ASU will have a material impact~~current assets on ~~the consolidated financial statements.~~

~~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~~ (“U.S. Tax Reform”), which provides guidance on accounting for the impacts of U.S. Tax Reform. SAB 118 directs companies to consider the impact of U.S. Tax Reform as provisional when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting under Accounting Standards Codification (“ASC”) Topic 740, ~~Income Taxes~~. The Company has not yet completed its accounting for the tax effects of the U.S. Tax Reform; however it has made a reasonable, but provisional, estimate of the effects as more fully explained in Note 4 to the condensed consolidated ~~financial statements.~~balance sheet.

Contract liabilities include advance payments from customers and billings in excess of delivery of performance obligations. At November 30, 2020, November 30, 2019, and August 31, 2019, contract liabilities amounted to $21.3 million, $14.7 million, and $19.6 million, respectively. Contract liabilities are included within other current liabilities on the condensed consolidated balance sheets. During the Company’s three months ended November 30, 2020 and 2019, the Company recognized $6.5 million and $6.4 million of revenue that were included in the liabilities as of August 31, 2020 and 2019, respectively. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter.

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 six~~ months ended ~~February 28, 2018~~November 30, 2020 and ~~February 28, 2017:~~

	Three months ended				Six months ended				Three months ended
($ and shares in thousands, except per share amounts)	February 28, 2018		February 28, 2017		February 28, 2018		February 28, 2017		November 30, 2020		November 30, 2019
Numerator:
Net earnings	$	1,735	$	5,012	$	4,920	$	5,885	$	7,095	$	8,345

Denominator:
Weighted average shares outstanding		10,743		10,657		10,724		10,647		10,845		10,795
Diluted effect of stock awards		22		17		28		23		43		33
Weighted average shares outstanding assuming dilution		10,765		10,674		10,752		10,670		10,888		10,828

Basic net earnings per share	$	0.16	$	0.47	$	0.46	$	0.55	$	0.65	$	0.77
Diluted net earnings per share	$	0.16	$	0.47	$	0.46	$	0.55	$	0.65	$	0.77

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~~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				Six months ended				Three months ended
(Units and options in thousands)	February 28, 2018		February 28, 2017		February 28, 2018		February 28, 2017		November 30, 2020		November 30, 2019
Restricted stock units		6		7		72		20		0		19
Stock options		64		119		167		133		79		0
Performance stock units										10		20

The Company recorded income tax ~~expense~~benefit of ~~$3.9 million and $2.6~~$0.2 million for the three months ended ~~February 28, 2018~~November 30, 2020 and ~~February 28, 2017, respectively. The Company recorded~~ income tax expense of ~~$5.5 million and $3.1~~$2.9 million for the ~~six~~three months ended ~~February 28, 2018 and February 28, 2017, respectively. The overall~~November 30, 2019.

It is the Company’s policy to report income tax ~~rate was 53.0 percent and 34.4 percent~~expense for ~~the fiscal year-to-date~~interim periods ~~ended February 28, 2018 and February 28, 2017, respectively.~~

~~On December 22, 2017, the U.S. government enacted comprehensive tax legislation through U.S. Tax Reform which significantly revised the U.S. corporate~~using an estimated annual effective income tax structure by, among other things, lowering the U.S. corporate income tax rate, repealing certain deductions, and changing the way foreign earnings are taxed. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law is enacted. As such, the Company’srate. The estimated annual effective income tax rate was 23.8 percent and 25.8 percent for the ~~current fiscal year includes~~three months ended November 30, 2020 and 2019, respectively. The decrease in the ~~impact of the reduction of the U.S. corporate~~estimated annual effective income tax rate from ~~35%~~November 2019 to 21% beginning January 1, 2018. As an August fiscal year end filer, the lower corporate income tax rate will be phased in resulting in a blended U.S. corporate income tax rate of 25.7% for the fiscal year ending August 31, 2018 (effectively the four months of September through December 2017 at 35% and the eight months of January through August 2018 at 21%).

~~Income tax expense for the three and six months ended February 28, 2018 includes discrete items related~~November 2020 relates primarily to the ~~impact of U.S. Tax Reform as required by ASC Topic 740. These include a one-time mandatory deemed repatriation transition tax on previously untaxed accumulated and current~~change in earnings ~~and profits of the Company’s~~mix among foreign subsidiaries. The Company made a reasonable estimate and recorded a provisional deemed repatriation transition tax obligation of $1.8 million. The Company continues to gather information to more precisely compute the amount of the deemed repatriation transition tax.operations.

The ~~Company also remeasured~~tax effects of significant or ~~revalued its deferred income tax assets and liabilities during its fiscal 2018 second quarter, resulting~~unusual items are not considered in ~~a provisional deferred income tax expense of $0.8 million. This provisional amount incorporates assumptions and estimates made based upon~~ the Company’s current interpretations of U.S. Tax Reform and may change as the Company receives additional clarification and implementation guidance, and as data becomes available allowing for a more accurate scheduling of the deferred income tax assets and liabilities.

The Company’s collective provisional estimates of $2.6 million of incremental income tax expense recorded during the second quarter of fiscal 2018 represents all known and estimable impacts of U.S. Tax Reform, and may change as the Company receives additional clarification and implementation guidance, and as data becomes available. The accounting is expected to be finalized by the end of fiscal 2018.

~~Certain other provisions included in U.S. Tax Reform have later effective dates for fiscal year filers and may have an impact on the Company’s future~~ estimated annual effective income tax rate. ~~Other future adjustments to income tax expense may include the impact of actions the Company may take as a result of U.S. Tax Reform.~~

The tax effects of such discrete ~~items, such as U.S. Tax Reform, were~~events are recognized in the interim period in which the events ~~occurred~~occur. The Company recorded discrete items resulting in an income tax benefit of $1.8 million for the three ~~and six~~ months ended ~~February 28, 2018.~~November 30, 2020, which included a benefit of $1.7 million related to the release of a valuation allowance primarily related to net operating loss carryforwards in a foreign jurisdiction that are now expected be realizable. The ~~Company recorded no material~~tax effects of discrete items did 0t have a significant impact on income tax expense for the three ~~and six~~ months ended ~~February 28, 2017.~~November 30, 2019.

Inventories consisted of the following as of ~~February 28, 2018, February 28, 2017,~~November 30, 2020, November 30, 2019, and August 31, ~~2017:~~2020:

($ in thousands)	February 28, 2018			February 28, 2017			August 31, 2017			November 30, 2020			November 30, 2019			August 31, 2020
Raw materials and supplies	$	38,716		$	27,368		$	31,158		$	52,374		$	47,266		$	51,205
Work in process		9,371			7,570			7,113			8,041			6,235			6,464
Finished goods and purchased parts		60,925			53,587			52,382
Finished goods and purchased parts, net											58,284			51,908			51,684
Total inventory value before LIFO adjustment		109,012			88,525			90,653			118,699			105,409			109,353
Less adjustment to LIFO value		(6,037	)		(5,678	)		(4,498	)		(4,421	)		(8,125	)		(4,561	)
Inventories, net	$	102,975		$	82,847		$	86,155		$	114,278		$	97,284		$	104,792

The following table sets forth the outstanding principal balances of the Company’s long-term debt as of the dates shown:

($ in thousands)	February 28, 2018			February 28, 2017			August 31, 2017			November 30, 2020			November 30, 2019			August 31, 2020
Series A Senior Notes	$	115,000		$	115,000		$	115,000		$	115,000		$	115,000		$	115,000
Revolving Credit Facility		—			—			—			0			0			0
Elecsys Series 2006A Bonds		1,876			2,075			1,976			1,309			1,519			1,344
Total debt		116,876			117,075			116,976			116,309			116,519			116,344
Less current portion		(203	)		(199	)		(201	)		(214	)		(210	)		(195	)
Less unamortized debt issuance costs											(454	)		(504	)		(467	)
Total long-term debt	$	116,673		$	116,876		$	116,775		$	115,641		$	115,805		$	115,682

Due within	$ in thousands		$ in thousands
1 year	$	203	$	214
2 years		207		218
3 years		211		222
4 years		215		227
5 years		219		231
Thereafter		115,821		115,197
	$	116,876	$	116,309

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:

Accumulated other comprehensive income included realized and unrealized after-tax gains of $3.0 million, $6.3 million, and $3.9 million at February 28, 2018, February 28, 2017, and August 31, 2017, respectively, related to derivative contracts designated as hedging instruments.

~~The amount of gain (loss) recognized in other comprehensive income is as follows:~~

For the three months ended February 28, 2018 and February 28, 2017, the Company settled foreign currency forward contracts resulting in an after-tax net loss of $0.6 million and an after-tax net gain of $1.0 million, respectively, which were included in other comprehensive income as part of a currency translation adjustment. For the six months ended February 28, 2018 and February 28, 2017, the Company settled foreign currency forward contracts resulting in an after-tax net loss of $1.3 million and an after-tax net gain of $0.9 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 earnings related to ineffectiveness of foreign currency forward contracts related to net investment hedges for the three and six months ended February 28, 2018 and February 28, 2017.

At February 28, 2018, February 28, 2017, and August 31, 2017, the Company had outstanding foreign currency forward contracts to sell 32.8 million Euro, 32.9 million Euro, and 32.8 million Euro, respectively, at fixed prices to settle during the next fiscal quarter. At February 28, 2018, February 28, 2017, and August 31, 2017, the Company had an outstanding foreign currency forward contract to sell 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.

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 earnings. At February 28, 2018, February 28, 2017, and August 31, 2017, the Company had $6.2 million, $5.6 million, and $5.0 million, respectively, of U.S. dollar equivalent of foreign currency forward contracts outstanding that are not designated as hedging instruments.

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 ~~February 28, 2018, February 28, 2017,~~November 30, 2020, November 30, 2019, and August 31, ~~2017, respectively.~~2020. There were no transfers between any levels for the periods presented.

	February 28, 2018										November 30, 2020
($ in thousands)	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3			Total
Cash and cash equivalents	$	102,211	$	—		$	—	$	102,211		$	126,802	$	0		$	0		$	126,802
Derivative assets		—		19			—		19
Derivative liabilities		—		(1,010	)		—		(1,010	)
Marketable securities:
Corporate bonds												0		14,564			0			14,564
U.S. treasury securities												0		5,060			0			5,060
Earn-out liability												0		0			(1,112	)		(1,112	)

	February 28, 2017										November 30, 2019
($ in thousands)	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3			Total
Cash and cash equivalents	$	102,825	$	—		$	—	$	102,825		$	120,910	$	0		$	0		$	120,910
Derivative assets		—		—			—		—			0		13			0			13
Derivative liabilities		—		(868	)		—		(868	)		0		(115	)		0			(115	)

	August 31, 2017										August 31, 2020
($ in thousands)	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3			Total
Cash and cash equivalents	$	121,620	$	—		$	—	$	121,620		$	121,403	$	0		$	0		$	121,403
Marketable securities:
Corporate bonds												0		14,426			0			14,426
U.S. treasury securities												0		5,085			0			5,085
Derivative assets		—		9			—		9			0		21			0			21
Derivative liabilities		—		(1,747	)		—		(1,747	)
Earn-out liability												0		0			(1,112	)		(1,112	)

The Company’s investment in marketable securities consists of United States treasury bonds and investment grade corporate bonds. The marketable securities are classified as available-for-sale and are carried at fair value with the change in unrealized gains and losses reported as a separate component on the condensed consolidated statements of comprehensive income (loss) until realized. The Company determines fair value using data points that are observable, such as quoted prices and interest rates. The amortized cost of the investments approximates fair value. Investment income is recorded within other (expense) income on the condensed consolidated statements of earnings. As of November 30, 2020, approximately 72% of the Company’s marketable securities investments mature within one year and 28% mature within one to three years.

The Company’s earn-out liability relates to its acquisition of Net Irrigate, LLC during the third quarter of fiscal 2020. The value of the earn-out liability is based on active customers one year subsequent to the closing date. The fair value of this earn-out payment was calculated using the weighted average probability for each potential outcome and has a maximum potential payout of $1.5 million.

There were no0 required fair value adjustments for assets and liabilities measured at fair value on a non-recurring basis for the three ~~and six~~ months ended ~~February 28, 2018~~November 30, 2020 or ~~February 28, 2017.~~November 30, 2019.

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~~based on an assessment of ~~determination.~~probability of loss. 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.

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® end terminal. Despite the September ~~2017~~2018 reversal of a sizable judgment against a competitor, the Company expects that the significant attention brought to the infrastructure products industry by the original judgment may lead to additional lawsuits being filed against the Company and others in the industry.

The Company, ~~intends~~certain of its subsidiaries, and certain third parties which originally designed the X-Lite end terminal have also been named in a lawsuit filed on June 9, 2020 in the Circuit Court of Cole County, Missouri by Missouri Highways and Transportation Commission (“MHTC”). MHTC alleges, among other things, that the X-Lite end terminal was defectively designed and failed to perform as designed, intended, and advertised, leading to MHTC’s removal and replacement of X-Lite end terminals from Missouri’s roadways. MHTC alleges strict liability (defective design and failure to warn), negligence, breach of express warranties, breach of implied warranties (merchantability and fitness for a particular purpose), fraud, and public nuisance. MHTC seeks compensatory damages, interest, attorneys’ fees, and punitive damages.

The Company believes it has meritorious factual and legal defenses to each of the lawsuits discussed above and is prepared to vigorously defend ~~each of these allegations. The Company maintains insurance to mitigate the impact of adverse judgment exposures in the current product liability cases.~~its interests. Based on the information currently available to the Company, the Company does not believe that a loss is probable in any of these lawsuits; therefore, no accrual has been included in the Company’s ~~condensed~~ consolidated financial statements. While it is possible that a loss may be incurred, the Company is unable to estimate a range of potential loss due to the complexity and current status of these lawsuits. However, the Company maintains insurance coverage to mitigate the impact of adverse exposures in these lawsuits and does not expect that these lawsuits will have a material adverse effect on its business or its consolidated financial statements.

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.

In ~~1992,~~previous years, the Company ~~entered into~~committed to a ~~consent decree with the U.S. Environmental Protection Agency (the “EPA”) in which the Company committed~~plan 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 earnings.

~~The~~ current estimated aggregate accrued cost of ~~$17.2~~$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~~submitted a ~~meeting with~~revised remedial alternatives evaluation report to the ~~EPA~~U.S. Environmental Protection Agency (“EPA”) and the Nebraska Department of ~~Environmental Quality~~Environment and Energy (the ~~“NDEQ”~~“NDEE”) ~~during the third quarter of fiscal 2016~~in August 2020 to review remediation alternatives and proposed plans for the ~~site and submitted its remedial alternatives evaluation report to the EPA in August 2016.~~site. The proposed remediation plan is preliminary and has not been approved by the EPA or the ~~NDEQ.~~NDEE. Based on guidance from third-party environmental experts and ~~further~~the preliminary discussions with the ~~EPA and the NDEQ,~~regulatory agencies, the Company anticipates that a definitive plan will not be agreed upon until ~~later~~the latter half of fiscal 2021 or later. An increase to the liability of $1.0 million was recorded within general and administrative expense on the condensed consolidated statement of earnings in the fourth quarter of fiscal ~~2018 or beyond.~~2020. Of the total liability, $11.0 million was calculated on a discounted basis using a discount rate of 1.2%, which represents a risk-free rate. This discounted portion of the liability amounts to $12.4 million on an undiscounted basis.

The Company accrues the anticipated cost of investigation and remediation when the obligation is probable and can be reasonably estimated. ~~Costs are charged against~~While the ~~accrual in~~plan has not formally been approved by the ~~period in which they are paid. While~~EPA, 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,~~site; however, 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~~it 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~~be 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~~exceed the amounts ~~currently~~ accrued for this ~~expense.~~expense at this time. 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 ~~sheet~~sheets as of ~~February 28, 2018, February 28, 2017,~~November 30, 2020, November 30, 2019, and August 31, ~~2017:~~2020:

($ in thousands)	February 28, 2018		February 28, 2017		August 31, 2017		November 30, 2020		November 30, 2019		August 31, 2020
Other current liabilities	$	1,544	$	1,722	$	2,095	$	1,105	$	1,243	$	1,115	��
Other noncurrent liabilities		15,677		16,933		15,937		15,021		14,548		15,030
Total environmental remediation liabilities	$	17,221	$	18,655	$	18,032	$	16,126	$	15,791	$	16,145

	Three months ended						Six months ended						Three months ended
($ in thousands)	February 28, 2018			February 28, 2017			February 28, 2018			February 28, 2017			November 30, 2020			November 30, 2019
Product warranty accrual balance, beginning of period	$	8,187		$	7,572		$	8,411		$	7,443		$	10,765		$	8,960
Liabilities accrued for warranties during the period		647			860			2,103			1,861			1,734			1,480
Warranty claims paid during the period		(1,245	)		(1,420	)		(2,933	)		(2,621	)		(1,641	)		(1,652	)
Changes in estimates		(41	)		(74	)		(33	)		255
Product warranty accrual balance, end of period	$	7,548		$	6,938		$	7,548		$	6,938		$	10,858		$	8,788

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 ~~$0.9~~$1.7 million and ~~$0.9~~$1.2 million for the three months ended ~~February 28, 2018~~November 30, 2020 and ~~February 28, 2017, respectively. Share-based compensation expense was $1.9 million and $1.8 million for the six months ended February 28, 2018 and February 28, 2017,~~2019, respectively.

The following table illustrates the type and fair value of ~~the~~ share-based compensation awards granted during the three months ended November 30, 2020 and 2019, respectively:

The RSUs granted during the three months ended November 30, 2020 and 2019 consisted of 2,162 and 2,730, respectively, of awards that will be settled in cash. The weighted average stock price on the date of grant was $110.21 and $94.36 per award for the three months ended November 30, 2020 and 2019, respectively. Share issuances are presented net of share repurchases to cover payroll taxes of $1.3 million and $1.1 million for the three month periods ended ~~February 28, 2018~~November 30, 2020 and ~~February 28, 2017:~~2019, respectively.

The following table provides the assumptions used in determining the fair value of the stock options awarded during the three ~~month period~~months ended ~~February 28, 2018:~~

The PSUs granted during fiscal 2021 include performance goals based on a return on net assets and total shareholder return (TSR) relative to the Company’s peers during the performance period. The awards actually earned will range from 0 to two hundred percent of the targeted number of PSUs and will be paid in shares of common stock. Shares earned will be distributed upon vesting on the first day of November following the end of the three-year performance period. For the return on net assets portion of the award, the Company is accruing compensation expense based on the estimated number of shares expected to be issued utilizing the most current information available to the Company at the date of the financial statements. For the TSR portion of the award, compensation expense is recorded ratably over the three-year term of the award based on the estimated grant date fair value.

The fair value of the TSR portion of the awards granted during the three months ended November 30, 2020 and 2019 was estimated at the grant date using a Monte Carlo simulation model which included the following assumptions:

($ in thousands)	February 28, 2018		February 28, 2017		August 31, 2017		November 30, 2020		November 30, 2019		August 31, 2020
Other current liabilities:
Contract liabilities							$	18,497	$	13,280	$	17,296
Compensation and benefits	$	16,146	$	13,804	$	18,926		13,759		11,400		20,945
Deferred revenues		12,322		4,873		6,166
Warranties		7,548		6,938		8,411		10,858		8,788		10,765
Customer deposits		6,102		4,757		4,096
Operating lease liabilities								5,004		4,200		5,123
Dealer related liabilities		3,445		2,724		3,500		3,696		3,536		3,664
Deferred revenue - lease								3,165		2,431		1,822
Accrued insurance								1,253		1,555		1,348
Accrued environmental liabilities								1,105		1,243		1,115
Tax related liabilities		2,654		2,964		2,813		443		2,400		3,726
Accrued environmental liabilities		1,544		1,722		2,095
Other		7,959		8,568		9,112		8,130		5,661		6,842
Total other current liabilities	$	57,720	$	46,350	$	55,119	$	65,910	$	54,494	$	72,646

There were no0 shares repurchased during the three ~~and six~~ months ended ~~February 28, 2018~~November 30, 2020 and ~~February 28, 2017~~November 30, 2019 under the Company’s share repurchase program. The remaining amount available under the repurchase program was $63.7 million as of ~~February 28, 2018.~~November 30, 2020.

The Company manages its business activities in ~~two~~2 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 no0 single customer who represented 10 percent or more of its total revenues during the three ~~and six~~ months ended ~~February 28, 2018~~November 30, 2020 and ~~February 28, 2017.~~2019.

Irrigation - This reporting segment includes the manufacture and marketing of center pivot, lateral move and hose reel irrigation systems and large diameter steel tubing as well as various ~~water pumping stations, controls, filtration~~innovative technology solutions such as GPS positioning and ~~machine-to-machine technology.~~ guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial IoT solutions.The irrigation reporting segment consists of ~~three~~1 operating ~~segments that have similar economic characteristics and meet the aggregation criteria, including similar products, production processes, type or class of customer and methods for distribution.~~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 manufacture and sale of large diameter steel tubing and railroad signals and structures; and the provision of outsourced manufacturing and production services.~~equipment. The infrastructure reporting segment consists of ~~one~~1 operating segment.

Certain immaterial reclassifications have been made to the prior year operating results to conform with current year presentation, as revenues and operating income from certain product lines previously included within the infrastructure reporting segment are now included within the irrigation reporting segment.

	Three months ended						Six months ended						Three months ended
($ in thousands)	February 28, 2018			February 28, 2017			February 28, 2018			February 28, 2017			November 30, 2020			November 30, 2019
Operating revenues:
Irrigation	$	111,865		$	106,209		$	215,218		$	196,061
Irrigation:
North America													$	52,790		$	53,588
International														34,566			29,739
Irrigation total														87,356			83,327
Infrastructure		18,474			17,916			39,647			38,454			21,129			26,066
Total operating revenues	$	130,339		$	124,125		$	254,865		$	234,515		$	108,485		$	109,393

Operating income:
Irrigation	$	11,933		$	11,304		$	19,784		$	16,453		$	10,633		$	9,784
Infrastructure		2,519			1,595			5,810			4,571			4,256			8,741
Corporate		(7,386	)		(4,377	)		(12,327	)		(9,767	)		(7,354	)		(6,249	)
Total operating income		7,066			8,522			13,267			11,257			7,535			12,276

Interest and other expense, net		(1,390	)		(886	)		(2,799	)		(2,286	)		(652	)		(1,021	)
Earnings before income taxes	$	5,676		$	7,636		$	10,468		$	8,971		$	6,883		$	11,255

Capital expenditures:
Irrigation	$	2,362		$	1,796		$	4,035		$	2,746
Infrastructure		268			664			464			1,104
Corporate		94			344			216			344
	$	2,724		$	2,804		$	4,715		$	4,194
Depreciation and amortization:
Irrigation	$	2,994		$	2,880		$	6,073		$	5,703
Infrastructure		1,144			1,110			2,282			2,219
Corporate		126			95			244			198
	$	4,264		$	4,085		$	8,599		$	8,120

($ in thousands)	February 28, 2018		February 28, 2017		August 31, 2017		November 30, 2020		November 30, 2019		August 31, 2020
Total assets:
Irrigation	$	348,298	$	343,067	$	337,446	$	331,045	$	305,928	$	307,537
Infrastructure		79,342		73,280		80,187		88,995		84,813		113,111
Corporate		94,714		74,269		88,399		155,162		136,070		149,878
	$	522,354	$	490,616	$	506,032	$	575,202	$	526,811	$	570,526

ITEM 2 ‑ Management's Discussion and Analysis ofof Financial Condition and Results of Operations

This Quarterly Report on Form 10-Q contains not only historical information, but also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical are forward-looking and reflect information concerning possible or assumed future results of operations and planned financing of the Company. In addition, forward-looking statements may be made orally or in press releases, conferences, reports, on the Company's web site, or otherwise, in the future by or on behalf of the Company. When used by or on behalf of the Company, the words “expect,” “anticipate,” “estimate,” “believe,” “intend,” “will,” “plan,” “predict,” “project,” “outlook,” “could,” “may,” “should” or similar expressions generally identify forward-looking statements. The entire section entitled “Executive Overview and Outlook” should be considered forward-looking statements. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve a number of risks and uncertainties, including but not limited to those discussed in the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, ~~2017.~~2020. Readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results or conditions, which may not occur as anticipated. Actual results or conditions could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described herein and in the Company’s other public filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, ~~2017,~~2020, as well as other risks and uncertainties not now anticipated. The risks and uncertainties described herein and in the Company’s other public filings are not exclusive and further information concerning the Company and its businesses, including factors that potentially could materially affect the Company's financial results, may emerge from time to time. Except as required by law, the Company assumes no obligation to update forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

In March 2020, the World Health Organization declared the 2019 coronavirus disease (COVID-19) a global pandemic. This outbreak, which has continued to spread worldwide, has adversely affected workforces, customers, economies, and financial markets globally, leading to economic uncertainty. Shelter-in-place or stay-at-home orders have been implemented from time to time in many of the jurisdictions in which the Company operates. However, because the Company supports critical industries, the Company’s facilities worldwide have generally been considered “business essential” and have remained open throughout the outbreak with limited exceptions. Accordingly, COVID-19 has had a limited impact on the Company’s manufacturing operations to date. While the Company has implemented new procedures to protect the health and well-being of employees and customers, costs associated with these procedures have not been material. In addition, the pandemic has not had a significant effect on demand for the Company’s irrigation or infrastructure products.

The ultimate impact of COVID-19 on the Company’s business, results of operations, or cash flows remains uncertain and depends on numerous evolving factors that the Company may not be able to accurately predict or effectively respond to, including, without limitation: the duration and scope of the outbreak; mutations of COVID-19; actions taken by governments, businesses, and individuals in response to the outbreak; the effect on economic activity and actions taken in response; the effect on customers and their demand for the Company’s products and services; and the Company’s ability to manufacture, sell, distribute and service its products, including without limitation as a result of supply chain challenges, facility closures, social distancing, restrictions on travel, fear or anxiety by the populace, and shelter-in-place orders. As such, the full financial impact of COVID-19 on the Company’s business is difficult to estimate.

In preparing the Company’s condensed consolidated financial statements in conformity with U.S. GAAP, management must make a variety of decisions which impact the reported amounts and the related disclosures. These decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. In making these decisions, management applies its judgment based on its understanding and analysis of the relevant circumstances and the Company’s historical experience.

The Company’s accounting policies that are most important to the presentation of its results of operations and financial condition, and which require the greatest use of judgments and estimates by management, are designated as its critical accounting policies. See discussion of the Company’s critical accounting policies under Item 7 in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, ~~2017.~~2020. Management periodically re-evaluates and

adjusts its critical accounting policies as circumstances change. There were no significant changes in the Company’s critical accounting policies during the three ~~and six~~ months ended ~~February 28, 2018.~~November 30, 2020.

See Note 21 – ~~New Accounting Pronouncements~~Basis of Presentation and the disclosure therein of recently adopted accounting guidance to the condensed consolidated financial statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Operating revenues for the three months ended ~~February 28, 2018~~November 30, 2020 were ~~$130.3~~$108.5 million, ~~an increase~~a decrease of ~~five~~1 percent compared to ~~$124.1~~$109.4 million for the three months ended ~~February 28, 2017.~~November 30, 2019. Irrigation segment revenues increased ~~five~~5 percent to ~~$111.9~~$87.4 million and infrastructure segment revenues ~~increased three~~decreased 19 percent to ~~$18.5~~$21.1 million. Net earnings for the three months ended ~~February 28, 2018~~November 30, 2020 were ~~$1.7~~$7.1 million, or ~~$0.16~~$0.65 per diluted share, compared to net earnings of ~~$5.0~~$8.3 million, or ~~$0.47~~$0.77 per diluted share, for the three months ended February 28, 2017. Net earnings for the three months ended February 28, 2018 were reduced by tax expense of $2.6 million due to the enactment of the U.S. Tax Cuts and Jobs Act (“U.S. Tax Reform”) and by after-tax costs of $1.7 million comprised of severance costs and professional consulting fees related to the Company’s “Foundation for Growth” initiative.

Foundation for Growth is a focused performance improvement initiative that includes setting strategic direction, defining priorities, and improving overall operating performance. A key financial objective is to achieve operating margin performance of 11 percent to 12 percent in fiscal 2020 without assuming improvement in the market environment.

~~Additional costs anticipated in connection with this initiative, over each of the next several quarters, are expected to be recovered through improved operating income in fiscal 2020.~~November 30, 2019.

The Company’s irrigation revenues are highly dependent upon the need for irrigated agricultural crop production, which, in turn, depends upon many factors, including the following primary drivers:

~~After a four year cyclical downturn in our U.S.~~International irrigation business, indications are that the market has reached a level of stabilization which, along with general economic optimism, has contributed to improved grower sentiment towards investment in irrigation equipment. However, notable growth in demand for irrigation equipment is expected to remain constrained until there is more significant and sustained improvement in commodity prices and net farm income. International markets remain active with opportunities for further development and expansion, however regional political and economic factors, currency conditions and other factors can create a challenging environment. Additionally, international results are heavily dependent upon project sales which tend to fluctuate and can be difficult to forecast accurately.

The infrastructure business ~~has continued~~is dependent to ~~generate growth and profitability improvement in an environment of constrained~~some extent on government ~~spending.~~spending for road construction. In December 2015, the U.S. government enacted a five-year, $305 billion highway-funding bill (the “FAST Act”) to fund highway and bridge ~~projects,~~projects. The FAST Act was scheduled to expire in September 2020, however Congress reauthorized a one year extension. This extension includes an additional $13.6 billion added to the ~~first long-term national transportation~~Highway Trust Fund, which finances most government spending ~~bill in a decade.~~for highways and mass transit. In addition, the Federal Highway Administration has changed highway safety product certification requirements. The change has required additional research and development spending and could have an impact on the competitive positioning of the Company’s highway safety products. In spite of government spending uncertainty, opportunities exist for market expansion in each of the infrastructure product lines. Demand for the Company’s transportation safety products continues to be driven by population growth and the need for improved road safety.

The backlog of unshipped orders at ~~February 28, 2018~~November 30, 2020 was ~~$90.2~~$89.2 million compared with ~~$62.3~~$69.2 million at ~~February 28, 2017, with~~November 30, 2019. Included in these backlogs are amounts of $5.4 million and $5.2 million, respectively, for orders that are not expected to be fulfilled within the subsequent twelve months. The increase in backlog is primarily attributable to higher ~~backlogs~~order activity in ~~both the irrigation and infrastructure segments.~~North America irrigation. The Company’s backlog can fluctuate from period to period due to the seasonality, cyclicality, timing and execution of contracts. Backlog typically represents long-term projects as well as short lead-time orders, and therefore is generally not a good indication of the next fiscal quarter’s revenues.

The global drivers for the Company’s markets of population growth, expanded food production, efficient water use and infrastructure expansion support the Company’s long-term growth goals. The most significant opportunities for growth over the next several years are in international markets, where irrigation use is less developed and demand is driven primarily by food security, water scarcity and population growth.

For the Three Months ended ~~February 28, 2018~~November 30, 2020 compared to the Three Months ended ~~February 28, 2017~~November 30, 2019

The following section presents an analysis of the Company’s operating results displayed in the condensed consolidated statements of earnings for the three months ended ~~February 28, 2018~~November 30, 2020 and ~~February 28, 2017.~~ 2019.It should be read together with the industry segment information in Note 1413 to the condensed consolidated financial statements:

	Three months ended						Percent	Three months ended						Percent
($ in thousands)	February 28, 2018			February 28, 2017			Increase (Decrease)	November 30, 2020			November 30, 2019			Increase (Decrease)
Consolidated
Operating revenues	$	130,339		$	124,125		5%	$	108,485		$	109,393		-1%
Gross profit	$	35,316		$	32,941		7%	$	31,408		$	34,074		-8%
Gross margin		27.1	%		26.5	%			29.0	%		31.1	%

Operating expenses⁽¹⁾	$	28,250		$	24,419		16%	$	23,873		$	21,798		10%
Operating income	$	7,066		$	8,522		-17%	$	7,535		$	12,276		-39%
Operating margin		5.4	%		6.9	%			6.9	%		11.2	%

Other (expense), net	$	(1,390	)	$	(886	)	57%
Other expense, net								$	(652	)	$	(1,021	)	-36%
Income tax expense	$	3,941		$	2,624		50%	$	(212	)	$	2,910		-107%
Overall income tax rate		69.4	%		34.4	%			-3.1	%		25.9	%
Net earnings	$	1,735		$	5,012		-65%	$	7,095		$	8,345		-15%

Irrigation Equipment Segment
Irrigation Segment
Segment operating revenues	$	111,865		$	106,209		5%	$	87,356		$	83,327		5%
Segment operating income	$	11,933		$	11,304		6%	$	10,633		$	9,784		9%
Segment operating margin		10.7	%		10.6	%			12.2	%		11.7	%

Infrastructure Products Segment
Infrastructure Segment
Segment operating revenues	$	18,474		$	17,916		3%	$	21,129		$	26,066		-19%
Segment operating income	$	2,519		$	1,595		58%	$	4,256		$	8,741		-51%
Segment operating margin		13.6	%		8.9	%			20.1	%		33.5	%

Operating revenues for the three months ended ~~February 28, 2018 increased five~~November 30, 2020 decreased 1 percent to ~~$130.3~~$108.5 million from ~~$124.1~~$109.4 million for the three months ended ~~February 28, 2017,~~November 30, 2019, as irrigation revenues increased ~~$5.7~~$4.1 million and infrastructure revenues ~~increased $0.6~~decreased $5.0 million. The irrigation segment provided 8681 percent of the Company’s revenue during the three months ended ~~February 28, 2018 and February 28, 2017.~~November 30, 2020 as compared to 76 percent for the three months ended November 30, 2019.

North America irrigation revenues for the three months ended ~~February 28, 2018~~November 30, 2020 of ~~$78.9~~$52.8 million ~~increased $14.8~~decreased $0.8 million, or 232 percent, from ~~$64.1~~$53.6 million for the three months ended ~~February 28, 2017.~~ November 30, 2019. The ~~increase~~decrease resulted primarily from lower engineering services revenue related to a project in ~~North American irrigation revenues is due primarily to an increase in~~ the prior year that did not repeat that was partially offset by higher irrigation equipment unit ~~volume compared to the prior year period.~~volume.

International irrigation revenues for the three months ended ~~February 28, 2018~~November 30, 2020 of ~~$33.0~~$34.6 million ~~decreased $9.1~~increased $4.8 million, or 2216 percent, from ~~$42.1~~$29.7 million for the three months ended ~~February 28, 2017.~~November 30, 2019. The ~~second quarter of~~increase resulted from higher unit sales volumes in several regions which were partially offset by the ~~prior year included revenues from projects in developing markets that did not repeat in the current period, while demand in core markets remained stable. The impact~~unfavorable effects of foreign currency translation ~~rates~~of approximately $2.4 million compared to the ~~same~~ prior year ~~period was insignificant.~~first quarter.

Infrastructure segment revenues for the three months ended ~~February 28, 2018~~November 30, 2020 of ~~$18.5~~$21.1 million ~~increased $0.6~~decreased $5.0 million, or ~~three~~19 percent, from ~~$17.9~~$26.1 million for the three months ended ~~February 28, 2017.~~November 30, 2019. The ~~increase~~decrease resulted primarily from ~~higher Road Zipper System® sales~~a large order delivered in the prior year that ~~were partially offset by a decline~~did not repeat and from lower road construction activity in ~~sales volume from North America road safety products.~~the current year.

Gross profit for the three months ended ~~February 28, 2018~~November 30, 2020 of ~~$35.3~~$31.4 million ~~increased seven~~decreased 8 percent from ~~$32.9~~$34.1 million for the three months ended ~~February 28, 2017. The increase in gross profit resulted from higher revenues and an increase in gross~~November 30, 2019. Gross margin ~~to 27.1~~of 29.0 percent of sales for the three months ended ~~February 28, 2018 from 26.5~~November 30, 2020 decreased compared with 31.1 percent of sales for the three months ended ~~February 28, 2017. Improved gross~~November 30, 2019. Gross margin decreased primarily from a decrease in ~~the~~higher margin infrastructure segment was partially offset by slightly lower gross margin in the irrigation segment. Infrastructure margin improved due to a higher proportion of revenue from Road Zipper System® sales which resulted in an improved margin mix. In irrigation, improved volume leverage from higher North America irrigation system sales was partially offset by lower project sales and margins in international markets.revenues.

Operating expenses of ~~$28.3~~$23.9 million for the three months ended ~~February 28, 2018~~November 30, 2020 increased ~~by $3.8~~$2.0 million, ~~over operating expenses in the three months ended February 28, 2017. The increase included $2.3~~or 10 percent, compared with $21.8 million of severance costs and professional consulting fees associated with the Company’s Foundation for Growth performance improvement initiative. The remainder of the increase is due primarily to higher professional fees and healthcare costs compared to the prior year. Operating expenses were 22 percent of sales for the three months ended ~~February 28, 2018 compared~~November 30, 2019. The increase resulted from higher sales and marketing expense related to ~~20 percent of sales~~new product launches, increased incentive compensation expense and higher health and medical costs.

Other expense for the three months ended ~~February 28, 2017.~~November 30, 2020 decreased $0.3 million compared to the three months ended November 30, 2019. The change resulted primarily from lower foreign currency transaction losses.

The Company recorded an income tax ~~expense~~benefit of ~~$3.9 million and $2.6~~$0.2 million for the three months ended ~~February 28, 2018~~November 30, 2020 and ~~February 28, 2017, respectively.~~income tax expense of $2.9 million for the three months ended November 30, 2019. The ~~overall~~effective income tax rate was ~~69.4~~(3.1) percent and ~~34.4~~25.9 percent for the three months ended ~~February 28, 2018~~November 30, 2020 and ~~February 28, 2017,~~2019, respectively. ~~Tax expense for the three months ended February 28, 2018~~The current period includes ~~$2.6~~a benefit of $1.7 million ~~of incremental expense resulting from the enactment of U.S. Tax Reform, as more fully explained in Note 4~~related to the ~~condensed consolidated financial statements.~~

~~For the Six Months ended February 28, 2018 compared~~a valuation allowance primarily related to ~~the Six Months ended February 28, 2017~~

~~The following section presents an analysis of the Company’s~~net operating ~~results displayed~~loss carryforwards in ~~the condensed consolidated statements of earnings for the six months ended February 28, 2018 and February 28, 2017. It should~~a foreign jurisdiction that are now expected be ~~read together with the industry segment information in Note 14 to the condensed consolidated financial statements:~~

Six months ended

Percent

($ in thousands)

February 28,
2018

February 28,
2017

Increase
(Decrease)

Consolidated

Operating revenues

$
254,865

$
234,515

9%

Gross profit

$
67,713

$
61,315

10%

Gross margin

26.6
%

26.1
%

Operating expenses⁽¹⁾

$
54,446

$
50,058

9%

Operating income

$
13,267

$
11,257

18%

Operating margin

5.2
%

4.8
%

Other (expense), net

$
(2,799
)

$
(2,286
)

22%

Income tax expense

$
5,548

$
3,086

80%

Overall income tax rate

53.0
%

34.4
%

Net earnings

$
4,920

$
5,885

-16%

Irrigation Equipment Segment

Segment operating revenues

$
215,218

$
196,061

10%

Segment operating income

$
19,784

$
16,453

20%

Segment operating margin

9.2
%

8.4
%

Infrastructure Products Segment

Segment operating revenues

$
39,647

$
38,454

3%

Segment operating income

$
5,810

$
4,571

27%

Segment operating margin

14.7
%

11.9
%

Operating revenues for the six months ended February 28, 2018 increased nine percent to $254.9 million from $234.5 million for the six months ended February 28, 2017, as irrigation revenues increased $19.2 million and infrastructure revenues increased by $1.2 million. The irrigation segment provided 84 percent of the Company’s revenue during the six months ended February 28, 2018 and February 28, 2017.

~~North America irrigation revenues for the six months ended February 28, 2018 of $146.6 million increased $29.7 million or 25 percent from $116.9 million for the six months ended February 28, 2017.~~ ~~The increase in North American irrigation revenues is due primarily to an increase in irrigation equipment unit volume compared to the prior year period.~~

International irrigation revenues for the six months ended February 28, 2018 of $68.6 million decreased $10.6 million or 13 percent from $79.2 million for the six months ended February 28, 2017. The six month period of the prior year included revenues from projects in developing markets that did not repeat in the current period, while demand in core markets remained stable. ~~The impact of foreign currency translation~~ ~~rates compared to the same prior year period was insignificant~~.

Infrastructure segment revenues for the six months ended February 28, 2018 of $39.6 million increased $1.2 million or three percent from $38.5 million for the six months ended February 28, 2017. The increase resulted from higher Road Zipper System® sales as well as overall increased demand for road safety products compared with the prior year.

Gross profit for the six months ended February 28, 2018 of $67.7 million increased 10 percent from $61.3 million for the six months ended February 28, 2017. The increase in gross profit resulted from higher revenues and an increase in gross margin to 26.6 percent for the six months ended February 28, 2018 from 26.1 percent for the six months ended February 28, 2017. Improved gross margin in the infrastructure segment was partially offset by slightly lower gross margin in the irrigation segment. Infrastructure margin improved due to a higher proportion of revenue from Road Zipper System® sales which resulted in an improved margin mix. In the irrigation segment, improved volume leverage from higher irrigation system sales in North America was offset by lower international irrigation sales and changes in the regional mix of sales.

The Company’s operating expenses of $54.4 million for the six months ended February 28, 2018 increased by $4.4 million over operating expenses for the six months ended February 28, 2017. The increase included $2.3 million of severance costs and professional consulting fees associated with the Company’s Foundation for Growth performance improvement initiative. The remainder of the increase is due primarily to higher professional fees and healthcare costs compared to the prior year. ~~Operating expenses were 21 percent of sales for each of the six months ended~~ ~~February 28, 2018~~ ~~and~~ ~~February 28, 2017~~.

The Company recorded income tax expense of $5.5 million and $3.1 million for the six months ended February 28, 2018 and February 28, 2017, respectively. The overall income tax rate was 53.0 percent and 34.4 percent for the six months ended February 28, 2018 and February 28, 2017, respectively. Tax expense for the six months ended February 28, 2018 includes $2.6 million of incremental expense resulting from the enactment of U.S. Tax Reform, as more fully explained in Note 4 to the condensed consolidated financial statements.realizable.

The Company's cash, ~~and~~ cash equivalents, and marketable securities totaled ~~$102.2~~$146.4 million at ~~February 28, 2018~~November 30, 2020 compared with ~~$102.8~~$120.9 million at ~~February 28, 2017~~November 30, 2019 and ~~$121.6~~$140.9 million at August 31, ~~2017.~~2020. The Company requires cash for financing its receivables and inventories, paying operating expenses and capital expenditures, and for dividends and share repurchases. The Company meets its liquidity needs and finances its capital expenditures from its available cash and funds provided by operations along with borrowings under its credit arrangements described below. The Company’s investments in marketable securities are primarily comprised of United States government securities and investment grade corporate bonds. The Company believes its current cash resources, investments in marketable securities, projected operating cash flow, and remaining capacity under its continuing bank lines of credit are sufficient to cover all of its expected working capital needs, planned capital expenditures and dividends. The Company may require additional borrowings to fund potential acquisitions in the future.

The Company’s total cash and cash equivalents held by foreign subsidiaries were approximately ~~$25.4~~$41.3 million, ~~$32.1~~$43.5 million, and ~~$23.5~~$37.2 million as of ~~February 28, 2018, February 28, 2017,~~November 30, 2020, November 30, 2019, and August 31, ~~2017,~~2020, respectively. The Company considers earnings in foreign subsidiaries to be ~~permanently~~indefinitely reinvested and would need to accrue and pay incremental state, local, and foreign taxes if such earnings were repatriated to the United States. These incremental taxes would be in addition to the one-time mandatory deemed repatriation transition tax of $1.8 million as more fully explained in Note 4 to the condensed consolidated financial statements. The Company does not intend to repatriate the funds and does not expect these funds to have a significant impact on the Company’s overall liquidity.

Net working capital was ~~$208.8~~$254.1 million at ~~February 28, 2018,~~November 30, 2020, as compared with ~~$194.9~~$231.8 million at ~~February 28, 2017~~November 30, 2019 and ~~$200.9~~$245.5 million at August 31, ~~2017.~~2020. Cash ~~used in operations~~provided by operating activities totaled ~~$8.9~~$15.4 million during the ~~six~~three months ended ~~February 28, 2018, a decrease of $19.6 million~~November 30, 2020, compared to cash provided by ~~operations~~operating activities of ~~$10.7~~$1.5 million during the ~~six~~three months ended ~~February 28, 2017.~~November 30, 2019. This ~~decrease~~change was primarily due to ~~increased~~more cash generated from changes in working capital, primarily receivables and accounts payable, compared to ~~support higher sales.~~the same prior year period.

Cash flows used in investing activities totaled ~~$6.4~~$5.8 million during the ~~six~~three months ended ~~February 28, 2018~~November 30, 2020 compared to ~~$2.5~~$3.2 million ~~used in investing activities~~ during the ~~six~~three months ended ~~February 28, 2017.~~November 30, 2019. The ~~increase is primarily attributable to an increase in capital spending and changes in hedging activity. Capital spending was $4.7~~current year period includes $5.6 million in ~~the first six months~~purchases of ~~fiscal 2018~~property, plant, and equipment compared to ~~capital spending of $4.2~~$4.3 million in the same prior year period. The prior year period also included $1.1 million of cash received for the ~~prior fiscal year.~~settlement of net investment hedges which did not repeat in the current year period.

Cash flows used in financing activities totaled ~~$4.6~~$4.7 million during the ~~six~~three months ended ~~February 28, 2018~~November 30, 2020 compared to cash flows used in financing activities of ~~$6.3~~$4.5 million during the ~~six~~three months ended ~~February 28, 2017.~~November 30, 2019. The ~~decrease in cash used in financing activities~~ increase

was primarily ~~due to~~the result of higher dividends and increased proceeds from the exercise of stock options ~~in fiscal 2018~~ compared to the same prior ~~fiscal year.~~

The Company’s capital allocation plan is to continue investing in revenue and earnings growth, combined with a defined process for enhancing returns to stockholders. Under the Company’s capital allocation plan, the priorities for uses of cash include:

Capital expenditures for fiscal ~~2018~~2021 are expected to be between ~~$10.0~~$15.0 million and ~~$12.0~~$20.0 million, including equipment replacement, productivity improvements and ~~productivity improvements.~~new product development. The Company’s management does maintain flexibility to modify the amount and timing of some of the planned expenditures in response to economic conditions.

In the ~~second~~first quarter of fiscal ~~2018,~~2021, the Company paid a quarterly cash dividend to stockholders of ~~$0.30~~$0.32 per common share, or ~~$3.2~~$3.5 million, ~~to stockholders as~~ compared to ~~$0.29~~a quarterly cash dividend of $0.31 per common share, or ~~$3.1~~$3.4 million, in the ~~second~~first quarter of fiscal ~~2017.~~ 2020.

The Company’s Board of Directors authorized a share repurchase program of up to $250.0 million of common stock with no expiration date. Under the program, shares may be repurchased in privately negotiated and/or open market transactions as well as under formalized trading plans in accordance with the guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. There were no shares repurchased during the three ~~and six~~ months ended ~~February 28, 2018 and February 28, 2017, respectively.~~ November 30, 2020 or 2019. The remaining amount available under the repurchase program was $63.7 million as of ~~February 28, 2018.~~ November 30, 2020.

Senior ~~Notes.On February 19, 2015, the~~Notes. The Company ~~issued~~has outstanding $115.0 million in aggregate principal amount of Senior Notes, Series A (the “Senior Notes”). The entire principal of the Senior Notes is due and payable on February 19, 2030. Interest on the Senior Notes is payable semi-annually at a fixed annual rate of 3.82 ~~percent and borrowings~~percent. Borrowings under the Senior Notes are unsecured. The Company ~~intends to use~~used the proceeds of the sale of the Senior Notes for general corporate purposes, including acquisitions and dividends.

Revolving Credit Facility. ~~On February 18, 2015, the~~The Company ~~entered into~~has outstanding a $50.0 million unsecured Amended and Restated Revolving Credit Facility (the “Revolving Credit Facility”) with Wells Fargo Bank, National Association (“Wells Fargo”). On February 28, 2017, the Company and Wells Fargo entered into an amendment to the Revolving Credit Facility which, among other things, extended the termination date of the agreement from February 18, 2018 to February 28, 2020. expiring May 31, 2022. The Company intends to use borrowings under the Revolving Credit Facility for working capital purposes and to fund acquisitions. At ~~February 28, 2018~~November 30, 2020 and ~~February 28, 2017~~,November 30, 2019, the Company had no outstanding borrowings under the Revolving Credit Facility. The amount of borrowings available at any time under the Revolving Credit Facility is reduced by the amount of standby letters of credit issued by Wells Fargo then outstanding. At ~~February 28, 2018,~~November 30, 2020, the Company had the ability to borrow up to ~~$44.6~~$50.0 million under the Revolving Credit ~~Facility, after consideration of outstanding standby letters of credit of $5.4 million.~~Facility. Borrowings under the Revolving Credit Facility bear interest at a variable rate equal to LIBOR plus 90 basis points ~~(2.56~~(1.13 percent at ~~February 28, 2018)~~November 30, 2020), subject to adjustment as set forth in the loan documents for the Revolving Credit Facility. Interest is paid on a monthly to quarterly basis depending on loan type. The Company ~~also~~currently pays an annual commitment fee of ~~0.25~~0.15 percent on the unused portion of the Revolving Credit Facility.

Borrowings under the Revolving Credit Facility have equal priority with borrowings under the Company’s Senior Notes. Each of the credit arrangements described above include certain covenants relating primarily to the Company’s financial condition. These financial covenants include a funded debt to EBITDA leverage ratio and an interest coverage ratio. In the event that the loan documents for the Revolving Credit Facility were to require the Company to comply with any financial covenant that is not already included or is more restrictive than what is already included in the arrangement governing the Senior Notes, then such covenant shall be deemed incorporated by reference for the benefit of holders of the Senior Notes. Upon the occurrence of any event of default of these covenants, including a change in control of the Company, all amounts outstanding thereunder may be declared to be immediately due and payable. At ~~February 28, 2018,~~ ~~February 28, 2017~~,November 30, 2020 and ~~August 31, 2017,~~2019, the Company was in compliance with all financial loan covenants contained in its credit arrangements in place as of each of those dates.

~~Elecsys~~ Series 2006A Bonds. Elecsys International ~~Corporation,~~LLC, a wholly owned subsidiary of the Company, has outstanding ~~$1.9~~$1.6 million in principal amount of industrial revenue bonds that were issued in 2006 (the “Series 2006A Bonds”). Principal and interest on the Series 2006A Bonds are payable monthly through maturity on September 1, 2026. The interest rate is adjustable every five years based on the yield of the 5-year United States Treasury Notes, plus 0.45 percent ~~(1.92~~(0.81 percent as of ~~February 28, 2018)~~November 30, 2020). This rate was adjusted on September 1, 2016 in accordance with the terms of the bonds, and the adjusted rate will be in force until September 1, 2021. The obligations under the Series 2006A Bonds are secured by a first priority security interest in certain real estate.

There have been no material changes in the Company’s contractual obligations and commercial commitments as described in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, ~~2017.~~2020.

There have been no material changes from the Company’s quantitative and qualitative disclosures about market risk previously disclosed in the Company’s most recent Annual Report on Form 10-K. See discussion of the Company’s quantitative and qualitative disclosures about market risk under Part II, Item 7A in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, ~~2017.~~2020.

The Company carried out an evaluation under the supervision and the participation of the Company’s management, including the Company’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of ~~February 28, 2018.~~November 30, 2020.

The CEO and CFO determined that there has not been any significant change to the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

See the disclosure in Note 98 – Commitments and Contingencies to the condensed consolidated financial statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q, which disclosure is hereby incorporated herein by reference.

There have been no material changes from risk factors previously disclosed in the Company’s most recent Annual Report on Form 10-K. See the ~~discussion~~discussions of the Company’s risk factors under Part I, Item 1A in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, ~~2017.~~2020.

† M~~anagement~~Management contract or compensatory plan or arrangement required to be filed as an exhibit hereto pursuant to Item 6 of Part II of Form 10-Q.

** Certain confidential portions of this exhibit were omitted by means of marking such portions with brackets and asterisks because the identified confidential portions (i) are not material and (ii) would be competitively harmful if publicly disclosed.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 29^th7th day of ~~March 2018.~~January 2021.

Delaware		~~47‑0554096~~47-0554096
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

~~2222 N. 111th~~18135 Burke Street, Suite 100, Omaha, Nebraska		~~68164~~68022
(Address of principal executive offices)		(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 par value	LNN	New York Stock Exchange, Inc.

Large accelerated filer	☒		Accelerated filer	☐
Non‑accelerated filer	☐	~~(Do not check if smaller reporting company)~~	Smaller reporting company	☐
Emerging growth company	☐

		Page

Part I – FINANCIAL INFORMATION

	~~ITEM 1 –~~ ~~Financial Statements~~

	~~Condensed Consolidated Statements of Earnings for the three and six months ended February 28, 2018 and February 28, 2017~~	3

	ITEM 1 – Financial Statements	3

	Condensed Consolidated Statements of Earnings for the three months ended November 30, 2020 and November 30, 2019	3

	Condensed Consolidated Statements of Comprehensive Income for the three ~~and six~~ months ended ~~February 28, 2018~~November 30, 2020 and ~~February 28, 2017~~November 30, 2019	4

	Condensed Consolidated Balance Sheets as of ~~February 28, 2018, February 28, 2017,~~November 30, 2020, November 30, 2019, and August 31, ~~2017~~2020	5

	Condensed Consolidated Statements of ~~Cash Flows~~Shareholders’ Equity for the ~~six~~three months ended ~~February 28, 2018~~November 30, 2020 and ~~February 28, 2017~~November 30, 2019	6

	~~Notes to the~~ Condensed Consolidated ~~Financial~~ Statements of Cash Flows for the three months ended November 30, 2020 and November 30, 2019	7

	Notes to the Condensed Consolidated Financial Statements	8

	ITEM 2 – Management’s Discussion and Analysis of Financial Conditionand Results of Operations	16

	ITEM 3 – Quantitative and Qualitative Disclosures about Market Risk	22

	ITEM 4 – Controls and Procedures	22

Part II – OTHER INFORMATION		23

	ITEM 41 –~~Controls and Procedures~~ Legal Proceedings	23

	~~Part II~~ITEM 1A – ~~OTHER INFORMATION~~Risk Factors	23

	ITEM 12 – ~~Legal Proceedings~~Unregistered Sales of Equity Securities and Use of Proceeds	23

	ITEM 3 – Defaults Upon Senior Securities	23

	ITEM 4 – Mine Safety Disclosures	23

	ITEM 5 – Other Information	23

	ITEM 6 – Exhibits	24

		~~ITEM 1A –~~ ~~Risk Factors~~	24

	~~ITEM 2 –~~ ~~Unregistered Sales of Equity Securities and Use of Proceeds~~	24

	~~ITEM 3 –~~ ~~Defaults Upon Senior Securities~~	24

	~~ITEM 4 –~~ ~~Mine Safety Disclosures~~	24

	~~ITEM 5 –~~ ~~Other Information~~	24

	~~ITEM 6 –~~ ~~Exhibits~~SIGNATURES	25

~~SIGNATURES~~		26

	Three months ended
	November 30, 2020
($ in thousands)	Irrigation		Infrastructure		Total
Point in time	$	80,060	$	15,452	$	95,512
Over time		7,296		1,639		8,935
Revenue from the contracts with customers		87,356		17,091		104,447

Lease revenue		0		4,038		4,038
Total operating revenues	$	87,356	$	21,129	$	108,485


	Three months ended
	November 30, 2019
($ in thousands)	Irrigation		Infrastructure		Total
Point in time	$	73,818	$	21,162	$	94,980
Over time		9,509		2,125		11,634
Revenue from the contracts with customers		83,327		23,287		106,614

Lease revenue		0		2,779		2,779
Total operating revenues	$	83,327	$	26,066	$	109,393

($ in thousands)	Balance sheet location	February 28, 2018			February 28, 2017			August 31, 2017
Derivatives designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	—		$	—		$	—
Foreign currency forward contracts	Other current liabilities		(965	)		(619	)		(1,633	)
Total derivatives designated as hedging instruments		$	(965	)	$	(619	)	$	(1,633	)

Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	19		$	—		$	9
Foreign currency forward contracts	Other current liabilities		(45	)		(249	)		(114	)
Total derivatives not designated as hedging instruments		$	(26	)	$	(249	)	$	(105	)

	~~Grant Year~~
	~~2018~~
~~Weighted-average dividend yield~~		~~1.3~~	%
~~Weighted-average volatility~~		~~33.1~~	%
~~Risk-free interest rate~~		~~2.6~~	%
~~Weighted-average expected lives~~	~~7 years~~

	Three months ended November 30,
	2020			2019
Weighted-average dividend yield		1.2	%		1.3	%
Weighted-average volatility		32.8	%		28.4	%
Risk-free interest rate		0.5	%		1.6	%
Weighted-average expected life	6 years			6 years

Exhibit
No.		Description

3.1		Restated Certificate of Incorporation of the Company, incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on December 14, 2006.

3.2		Amended and Restated By‑By‑Laws of the Company, effective ~~May 2, 2014,~~October 17, 2018, incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on ~~May 5, 2014.~~October 19, 2018.

4.1		Specimen Form of Common Stock Certificate, incorporated by reference to Exhibit 4(a) of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2006.

10.1*		~~Separation Agreement and General Release, dated January 10, 2018, by and between the Company and David B. Downing.~~Lindsay Corporation Management Incentive Plan (MIP) 2021 Plan Year. † **

31.1*10.2		Employment Agreement, dated August 17, 2020, between the Company and Randy A. Wood, incorporated by reference to Exhibit 10.13 of the Company’s Annual Report on Form 10-K filed on October 22, 2020. †
10.3		Amendment to Employment Agreement, dated November 9, 2020, between the Company and Randy A. Wood, incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on November 10, 2020. †
10.4		Employment Agreement, dated August 17, 2020, between the Company and Gustavo E. Oberto, incorporated by reference to Exhibit 10.17 of the Company’s Annual Report on Form 10-K filed on October 22, 2020. †
10.5		Consulting Agreement, dated November 9, 2020, between the Company and Timothy L. Hassinger, incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on November 10, 2020. †
31.1*		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.

31.2*		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.

32.1*		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.
101*		Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline Extensible Business Reporting Language ("Inline XBRL").
104*		Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

101*		~~Interactive Data Files.~~

			LINDSAY CORPORATION

	By:		/s/ BRIAN L. KETCHAM
	Name:		Brian L. Ketcham
	Title:		Senior Vice President and Chief Financial Officer
			(on behalf of the registrant and as principal financial officer)