Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Aug. 31, 2022 | Oct. 24, 2022 | Feb. 28, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | THE GREENBRIER COMPANIES, INC. | ||
Trading Symbol | GBX | ||
Security Exchange Name | NYSE | ||
Entity Central Index Key | 0000923120 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Title of 12(b) Security | Common Stock | ||
Entity Common Stock, Shares Outstanding | 32,782,692 | ||
Entity Public Float | $ 1,398,339,491 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 1-13146 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Incorporation, State or Country Code | OR | ||
Entity Tax Identification Number | 93-0816972 | ||
Entity Address, Address Line One | One Centerpointe Drive | ||
Entity Address, Address Line Two | Suite 200 | ||
Entity Address, City or Town | Lake Oswego | ||
Entity Address, State or Province | OR | ||
Entity Address, Postal Zip Code | 97035 | ||
City Area Code | 503 | ||
Local Phone Number | 684-7000 | ||
Documents Incorporated by Reference | Certain portions of the registrant’s definitive Proxy Statement prepared in connection with the Annual Meeting of Shareholders to be held on January 6, 2023 a re incorporated by reference into Parts II and III of this Report. | ||
Auditor Firm ID | 185 | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Portland, Oregon |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 543 | $ 646.8 |
Restricted cash | 16.1 | 24.6 |
Accounts receivable, net | 501.2 | 306.4 |
Income tax receivable | 39.8 | 112.1 |
Inventories | 815.3 | 573.6 |
Leased railcars for syndication | 111.1 | 51.6 |
Equipment on operating leases, net | 770.9 | 609.8 |
Property, plant and equipment, net | 645.2 | 670.2 |
Investment in unconsolidated affiliates | 92.5 | 79.9 |
Intangibles and other assets, net | 189.1 | 183.6 |
Goodwill | 127.3 | 132.1 |
Total assets | 3,851.5 | 3,390.7 |
Liabilities and Equity | ||
Revolving notes | 296.6 | 372.2 |
Accounts payable and accrued liabilities | 725.1 | 569.8 |
Deferred income taxes | 68.6 | 73.3 |
Deferred revenue | 35.3 | 42.8 |
Notes payable, net | 1,269.1 | 826.5 |
Commitments and contingencies (Notes 20 & 21) | ||
Contingently redeemable noncontrolling interest | 27.7 | 29.7 |
Greenbrier | ||
Preferred stock - without par value; 25,000 shares authorized; none outstanding | ||
Common stock - without par value; 50,000 shares authorized; 32,603 and 32,397 outstanding at August 31, 2022 and 2021 | ||
Additional paid-in capital | 424.8 | 469.7 |
Retained earnings | 897.7 | 881.7 |
Accumulated other comprehensive loss | (45.6) | (43.7) |
Total equity - Greenbrier | 1,276.9 | 1,307.7 |
Noncontrolling interest | 152.2 | 168.7 |
Total equity | 1,429.1 | 1,476.4 |
Liabilities and Equity | $ 3,851.5 | $ 3,390.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2022 | Aug. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, without par value | ||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, without par value | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares outstanding | 32,603,000 | 32,397,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | ||
Revenue | ||||
Revenue | $ 2,977.7 | $ 1,747.9 | $ 2,792.2 | |
Cost of revenue | ||||
Cost of revenue | 2,671.7 | 1,516.3 | 2,439.1 | |
Margin | 306 | 231.6 | 353.1 | |
Selling and administrative | 225.2 | 191.8 | 204.7 | |
Net gain on disposition of equipment | (37.2) | (1.2) | (20) | |
Earnings from operations | 118 | 41 | 168.4 | |
Other costs | ||||
Interest and foreign exchange | 57.4 | 43.3 | 43.6 | |
Net loss on extinguishment of debt | 6.3 | |||
Earnings (loss) before income tax and earnings from unconsolidated affiliates | 60.6 | (8.6) | 124.8 | |
Income tax (expense) benefit | (18.1) | 40.2 | (40.2) | |
Earnings before earnings from unconsolidated affiliates | 42.5 | 31.6 | 84.6 | |
Earnings from unconsolidated affiliates | 11.3 | 3.5 | 3 | |
Net earnings | 53.8 | 35.1 | 87.6 | |
Net earnings attributable to noncontrolling interest | (6.9) | (2.7) | (38.6) | |
Net earnings attributable to Greenbrier | $ 46.9 | $ 32.4 | $ 49 | |
Basic earnings per common share | $ 1.44 | $ 0.99 | $ 1.50 | |
Diluted earnings per common share | $ 1.40 | $ 0.96 | $ 1.46 | |
Weighted average common shares | ||||
Basic | [1] | 32,569 | 32,648 | 32,670 |
Diluted | 33,631 | 33,665 | 33,441 | |
Manufacturing | ||||
Revenue | ||||
Revenue | $ 2,476.6 | $ 1,311.1 | $ 2,309.5 | |
Cost of revenue | ||||
Cost of revenue | 2,300.9 | 1,189.2 | 2,065.2 | |
Maintenance Services | ||||
Revenue | ||||
Revenue | 347.7 | 298.3 | 324.7 | |
Cost of revenue | ||||
Cost of revenue | 322 | 280.4 | 302.2 | |
Leasing & Management Services | ||||
Revenue | ||||
Revenue | 153.4 | 138.5 | 158 | |
Cost of revenue | ||||
Cost of revenue | $ 48.8 | $ 46.7 | $ 71.7 | |
[1] Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 53.8 | $ 35.1 | $ 87.6 | |
Other comprehensive income (loss) | ||||
Translation adjustment | (21.6) | 4 | (5.6) | |
Reclassification of derivative financial instruments recognized in net earnings | [1] | 4.7 | 5 | 4.2 |
Unrealized gain (loss) on derivative financial instruments | [2] | 15.7 | (0.4) | (7.3) |
Other (net of tax effect) | (0.7) | 0.5 | 0.7 | |
Other comprehensive income | (1.9) | 9.1 | (8) | |
Comprehensive income | 51.9 | 44.2 | 79.6 | |
Comprehensive income attributable to noncontrolling interest | (6.9) | (2.6) | (38.6) | |
Comprehensive income attributable to Greenbrier | $ 45 | $ 41.6 | $ 41 | |
[1] Net of tax effect of ($ 1.7 million), ($ 1.7 million) and ($ 1.5 million) for the years ended August 31, 2022, 2021 and 2020, respectively Net of tax effect of ($ 6.2 million), $ 1.0 million and $ 2.9 million for the years ended August 31, 2022, 2021 and 2020, respectively |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Reclassification of derivative financial instruments recognized in net earnings (loss), tax | $ (1.7) | $ (1.7) | $ (1.5) |
Unrealized loss on derivative financial instruments, tax | $ (6.2) | $ 1 | $ 2.9 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock Shares | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect Adjustment Due to Adoption | Additional Paid-in Capital 2.875% Convertible senior notes, due 2028 | Additional Paid-in Capital 2.875% Convertible senior notes, due 2024 | Additional Paid-in Capital 2.25% Convertible senior notes, due 2024 | Retained Earnings | Retained Earnings Cumulative Effect Adjustment Due to Adoption | Accumulated Other Comprehensive (Loss) | Total Equity - Greenbrier | Total Equity - Greenbrier Cumulative Effect Adjustment Due to Adoption | Total Equity - Greenbrier 2.875% Convertible senior notes, due 2028 | Total Equity - Greenbrier 2.875% Convertible senior notes, due 2024 | Total Equity - Greenbrier 2.25% Convertible senior notes, due 2024 | Noncontrolling Interest | Equity Excluding Contingently Redeemable Noncontrolling Interest | Equity Excluding Contingently Redeemable Noncontrolling Interest Cumulative Effect Adjustment Due to Adoption | Equity Excluding Contingently Redeemable Noncontrolling Interest 2.875% Convertible senior notes, due 2028 | Equity Excluding Contingently Redeemable Noncontrolling Interest 2.875% Convertible senior notes, due 2024 | Equity Excluding Contingently Redeemable Noncontrolling Interest 2.25% Convertible senior notes, due 2024 | Contingently Redeemable Noncontrolling Interest |
Beginning balance at Aug. 31, 2019 | $ 453.9 | $ 867.6 | $ 4.4 | $ (44.8) | $ 1,276.7 | $ 4.4 | $ 165 | $ 1,441.7 | $ 4.4 | |||||||||||||
Beginning balance (in shares) at Aug. 31, 2019 | 32,500 | |||||||||||||||||||||
Beginning balance at Aug. 31, 2019 | $ 31.5 | |||||||||||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-02 | Accounting Standards Update 2016-02 | Accounting Standards Update 2016-02 | |||||||||||||||||||
Net earnings | $ 87.6 | $ 49 | $ 49 | 39.1 | $ 88.1 | (0.4) | ||||||||||||||||
Other comprehensive income (loss), net | (8) | (8) | (8) | (8) | ||||||||||||||||||
Noncontrolling interest adjustments | 1.4 | 1.4 | ||||||||||||||||||||
Joint venture partner distribution declared | (37.6) | (37.6) | ||||||||||||||||||||
Noncontrolling interest acquired | 12.1 | 12.1 | ||||||||||||||||||||
Restricted stock awards (net of cancellations) | 2.7 | 2.7 | 2.7 | |||||||||||||||||||
Restricted stock awards (net of cancellations) (in shares) | 200 | |||||||||||||||||||||
Unamortized restricted stock | (4.9) | (4.9) | (4.9) | |||||||||||||||||||
Restricted stock amortization | 8.7 | 8.7 | 8.7 | |||||||||||||||||||
Cash dividends | (35.5) | (35.5) | (35.5) | |||||||||||||||||||
Ending balance at Aug. 31, 2020 | 460.4 | $ 885.5 | (0.5) | (52.8) | $ 1,293.1 | (0.5) | 180 | $ 1,473.1 | (0.5) | |||||||||||||
Ending Balance (in shares) at Aug. 31, 2020 | 32,700 | |||||||||||||||||||||
Ending Balance at Aug. 31, 2020 | 31.1 | |||||||||||||||||||||
Accounting Standards Update [Extensible List] | ASU 2016-13 | ASU 2016-13 | ASU 2016-13 | |||||||||||||||||||
Net earnings | 35.1 | $ 32.4 | $ 32.4 | 4.1 | $ 36.5 | (1.4) | ||||||||||||||||
Other comprehensive income (loss), net | 9.1 | 9.1 | 9.1 | 9.1 | ||||||||||||||||||
Noncontrolling interest adjustments | 2.2 | 2.2 | ||||||||||||||||||||
Joint venture partner distribution declared | (24.6) | (24.6) | ||||||||||||||||||||
Investment by joint venture partner | 7 | 7 | ||||||||||||||||||||
Restricted stock awards (net of cancellations) | 13.5 | 13.5 | 13.5 | |||||||||||||||||||
Restricted stock awards (net of cancellations) (in shares) | 200 | |||||||||||||||||||||
Unamortized restricted stock | (16.8) | (16.8) | (16.8) | |||||||||||||||||||
Restricted stock amortization | 14.7 | 14.7 | 14.7 | |||||||||||||||||||
Repurchase of stock | (20) | (20) | (20) | (20) | ||||||||||||||||||
Repurchase of stock (in shares) | (500) | |||||||||||||||||||||
Convertible Senior Notes, equity component, net of tax | $ 56.3 | $ (7.4) | $ 56.3 | $ (7.4) | $ 56.3 | $ (7.4) | ||||||||||||||||
Convertible senior notes,due 2028 issuance costs - equitycomponent, net of tax | $ (1.8) | $ (1.8) | $ (1.8) | |||||||||||||||||||
Convertible senior notes,due 2024 - equity componentextinguishment, net of tax | $ (29.2) | $ (29.2) | $ (29.2) | |||||||||||||||||||
Cash dividends | (35.7) | (35.7) | (35.7) | |||||||||||||||||||
Ending balance at Aug. 31, 2021 | $ 1,476.4 | $ 469.7 | $ (58.9) | $ 881.7 | $ 4.9 | (43.7) | $ 1,307.7 | $ (54) | 168.7 | $ 1,476.4 | $ (54) | |||||||||||
Ending Balance (in shares) at Aug. 31, 2021 | 32,397 | 32,400 | ||||||||||||||||||||
Ending Balance at Aug. 31, 2021 | 29.7 | |||||||||||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 | Accounting Standards Update 2020-06 | Accounting Standards Update 2020-06 | Accounting Standards Update 2020-06 | ||||||||||||||||||
Net earnings | $ 53.8 | $ 46.9 | $ 46.9 | 8.9 | $ 55.8 | (2) | ||||||||||||||||
Other comprehensive income (loss), net | (1.9) | (1.9) | (1.9) | (1.9) | ||||||||||||||||||
Noncontrolling interest adjustments | $ 2.2 | 2.2 | (6.2) | (4) | ||||||||||||||||||
Joint venture partner distribution declared | (19.2) | (19.2) | ||||||||||||||||||||
Restricted stock awards (net of cancellations) | 11.3 | 11.3 | 11.3 | |||||||||||||||||||
Restricted stock awards (net of cancellations) (in shares) | 200 | |||||||||||||||||||||
Unamortized restricted stock | (15) | (15) | (15) | |||||||||||||||||||
Restricted stock amortization | 15.5 | 15.5 | 15.5 | |||||||||||||||||||
Cash dividends | (35.8) | (35.8) | (35.8) | |||||||||||||||||||
Ending balance at Aug. 31, 2022 | $ 1,429.1 | $ 424.8 | $ 897.7 | $ (45.6) | $ 1,276.9 | $ 152.2 | $ 1,429.1 | |||||||||||||||
Ending Balance (in shares) at Aug. 31, 2022 | 32,603 | 32,600 | ||||||||||||||||||||
Ending Balance at Aug. 31, 2022 | $ 27.7 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
2.875% Convertible senior notes, due 2028 | |||
Debt instrument, interest rate | 2.875% | ||
2.25% Convertible senior notes, due 2024 | |||
Debt instrument, interest rate | 2.25% | ||
2.875% Convertible senior notes, due 2024 | |||
Debt instrument, interest rate | 2.875% | ||
Equity Excluding Contingently Redeemable Noncontrolling Interest | |||
Cash dividend per share | $ 1.08 | $ 1.08 | $ 1.06 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Cash flows from operating activities | |||
Net earnings | $ 53.8 | $ 35.1 | $ 87.6 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Deferred income taxes | 12.9 | 51.1 | (9.5) |
Depreciation and amortization | 102 | 100.7 | 109.9 |
Net gain on disposition of equipment | (37.2) | (1.2) | (20) |
Stock based compensation expense | 15.5 | 14.7 | 9 |
Net loss on extinguishment of debt | 6.3 | ||
Accretion of debt discount | 7.1 | 5.5 | |
Noncontrolling interest adjustments | 1.6 | 2.3 | 1.4 |
Other | 3.8 | 2.4 | 1 |
Decrease (increase) in assets: | |||
Accounts receivable, net | (198.2) | (82.1) | 144.4 |
Income tax receivable | 72.3 | (103) | (9.1) |
Inventories | (267.9) | (166.5) | 166.6 |
Leased railcars for syndication | (40.6) | (11.9) | (12.9) |
Other assets | (28.1) | (5.8) | (65) |
Increase (decrease) in liabilities: | |||
Accounts payable and accrued liabilities | 165.3 | 109.9 | (108.8) |
Deferred revenue | (5.6) | 0.4 | (27.9) |
Net cash provided by (used in) operating activities | (150.4) | (40.5) | 272.2 |
Cash flows from investing activities | |||
Proceeds from sales of assets | 155.5 | 15.9 | 83.5 |
Capital expenditures | (380.7) | (139) | (66.9) |
Investment in and advances to unconsolidated affiliates | (2.3) | (1.8) | |
Cash distribution from unconsolidated affiliates and other | 3.5 | 5.3 | 12.7 |
Net cash provided by (used in) investing activities | (224) | (117.8) | 27.5 |
Cash flows from financing activities | |||
Net changes in revolving notes with maturities of 90 days or less | (101.3) | 197.4 | 146.5 |
Proceeds from revolving notes with maturities longer than 90 days | 35 | 112 | 176.5 |
Repayments of revolving notes with maturities longer than 90 days | (287) | ||
Proceeds from issuance of notes payable | 398.3 | 391.9 | |
Repayments of notes payable | (23.4) | (337.8) | (30.2) |
Debt issuance costs | (7.3) | (22) | |
Repurchase of stock | (20) | ||
Dividends | (35.8) | (35.6) | (35.2) |
Cash distribution to joint venture partner | (16.9) | (25.3) | (38.9) |
Investment by joint venture partner | 7 | ||
Tax payments for net share settlement of restricted stock | (3.7) | (3.3) | (2.2) |
Net cash provided by (used in) financing activities | 244.9 | (22.7) | 216.5 |
Effect of exchange rate changes | 17.2 | 10.3 | (12.6) |
Increase (decrease) in cash and cash equivalents and restricted cash | (112.3) | (170.7) | 503.6 |
Cash and cash equivalents and restricted cash | |||
Cash and cash equivalents and restricted cash, Beginning balance | 671.4 | 842.1 | 338.5 |
Cash and cash equivalents and restricted cash, Ending balance | 559.1 | 671.4 | 842.1 |
Balance Sheet Reconciliation | |||
Cash and cash equivalents | 543 | 646.8 | 833.8 |
Restricted cash | 16.1 | 24.6 | 8.3 |
Total cash and cash equivalents and restricted cash as presented above | 559.1 | 671.4 | 842.1 |
Cash (received) paid during the period for | |||
Interest | 45.1 | 28.1 | 31.7 |
Income taxes, net | (55) | 11.1 | 60 |
Non-cash activity | |||
Transfer from Leased railcars for syndication and Inventories to Equipment on operating leases, net | (11.6) | 188.5 | 55.6 |
Transfer from Property, plant and equipment, net to Intangibles and other assets, net for assets moved to Assets held for sale | 3.5 | ||
Capital expenditures accrued in Accounts payable and accrued liabilities | 10.9 | 5.2 | 4.1 |
Change in Accounts payable and accrued liabilities associated with dividends declared | (0.3) | ||
Change in Accounts payable and accrued liabilities associated with cash distributions to joint venture partner | $ 1.4 | $ 0.6 | $ 1.4 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | Note 1 — Nature of Operations The Company operates in three reportable segments: Manufacturing; Maintenance Services; and Leasing & Management Services. The segments are operationally integrated. The Manufacturing segment, which currently operates from facilities in the U.S., Mexico, Poland, Romania and Turkey, produces double-stack intermodal railcars, tank cars, conventional railcars, automotive railcar products and marine vessels. The Maintenance Services segment performs wheel and axle servicing, railcar maintenance and produces a variety of parts for the rail industry in North America. The Leasing & Management Services segment, which includes GBX Leasing, owns approximately 12,200 railcars as of August 31, 2022. The Company also provides management services for approximately 408,000 railcars for railroads, shippers, carriers, institutional investors and other leasing and transportation companies in North America as of August 31, 2022. Through unconsolidated affiliates the Company produces rail and industrial components and has an ownership stake in a railcar manufacturer in Brazil . In 2022 the Company renamed two of its reportable segments to more prominently display the nature of the customer solutions it provides and markets in which it operates. The new names of its reportable segments are Manufacturing (unchanged), Maintenance Services (previously Wheels, Repair & Parts), and Leasing & Management Services (previously Leasing & Services). The name changes have no impact on the organization’s reporting structure nor on financial information previously reported. Separately, effective September 1, 2021, the Company changed its measurement basis for allocating syndication revenue between the Manufacturing and Leasing & Management Services reportable segments. This change in measurement reflects the information currently used by management to assess the Company's operating performance in accordance with its refined leasing strategy and has no impact to the Company’s total consolidated revenue. Segment results for the prior periods have been recast to conform to the current period presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Principles of consolidation - The financial statements include the accounts of the Company and its subsidiaries in which it has a controlling interest. All intercompany transactions and balances are eliminated upon consolidation. Unclassified balance sheet - The balance sheets of the Company are presented in an unclassified format as a result of significant leasing activities for which the current or non-current distinction is not relevant. In addition, the activities of the Manufacturing; Maintenance Services; and Leasing & Management Services segments are so intertwined that in the opinion of management, any attempt to separate the respective balance sheet categories would not be meaningful and may lead to the development of misleading conclusions by the reader. Foreign currency translation - Certain operations outside the U.S. prepare financial statements in currencies other than the U.S. Dollar. Revenues and expenses are translated at monthly average exchange rates during the year, while assets and liabilities are translated at year-end exchange rates. Translation adjustments are accumulated as a separate component of equity in other comprehensive income (loss). The net foreign currency translation adjustment balances were $ 57.4 million, $ 35.8 million and $ 39.8 million as of August 31, 2022, 2021 and 2020, respectively Cash and cash equivalents - Cash may temporarily be invested primarily in money market funds. All highly-liquid investments with a maturity of three months or less at the date of acquisition are considered cash equivalents. Restricted cash - Restricted cash relates to amounts held to support a target minimum rate of return on certain agreements, terms of our credit agreement, and a pass through account for activity related to management services provided for certain third party customers. Accounts receivable - Accounts receivable consists of receivables from customers and receivables from related parties (see Note 16 - Related Party Transactions) and is stated net of allowance for doubtful accounts of $ 2.3 million and $ 2.4 million as of August 31, 2022 and 2021, respectively. As of August 31, (In millions) 2022 2021 2020 Allowance for doubtful accounts Balance at beginning of period $ 2.4 $ 2.7 $ 2.2 Additions, net of reversals 0.4 0.6 1.7 Usage ( 0.3 ) ( 0.8 ) ( 1.3 ) Currency translation effect ( 0.2 ) ( 0.1 ) 0.1 Balance at end of period $ 2.3 $ 2.4 $ 2.7 Inventories - Inventories are valued at the lower of cost or net realizable value using the first-in first-out method. Work-in-process includes material, labor and overhead. Finished goods includes completed wheels, parts and railcars in transit or not on lease. Leased railcars for syndication - Leased railcars for syndication consist of newly-built railcars manufactured at one of the Company’s facilities or railcars purchased from third parties, which have been placed on lease to a customer and which the Company intends to sell to an investor with the lease attached. These railcars are generally anticipated to be sold within six months of delivery of the last railcar in a group or six months from when the Company acquires the railcar from a third party and are typically not depreciated during that period as the Company does not believe any economic value of a railcar is lost in the first six months. In the event the railcars are not sold in the first six months, the railcars are either held in Leased railcars for syndication and are depreciated or are transferred to Equipment on operating leases and are depreciated. Equipment on operating leases, net - Equipment on operating leases is stated net of accumulated depreciation. Depreciation to estimated salvage value is provided on the straight-line method over the estimated useful lives of up to forty years . Management periodically reviews useful lives and salvage value estimates based on current scrap prices and what the Company expects to receive upon disposal. Investment in unconsolidated affiliates - Investment in unconsolidated affiliates includes the Company’s interests in certain investees which are accounted for under the equity method of accounting as the Company has determined that the investment provides the Company with the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company has an ownership interest in the voting stock of the investee of at least 20%. Several factors are considered in determining whether the equity method of accounting is appropriate including the relative ownership interests and governance rights of the joint venture partners. As of August 31, 2022, selected investments in unconsolidated affiliates include the Company’s 60 % interest in Greenbrier-Maxion, 29.5 % interest in Amsted-Maxion Cruzeiro (which owns 40 % of Greenbrier-Maxion), 40 % interest in Greenbrier Railcar Funding I LLC and 41.9 % interest in Axis, LLC. Property, plant and equipment - Property, plant and equipment is stated at cost, net of accumulated depreciation. Depreciation is provided on the straight-line method over estimated useful lives which primarily are as follows: Depreciable Life Buildings and improvements 10 - 30 years Machinery and equipment 3 - 20 years Other 3 - 7 years Intangible and other assets, net - Intangible assets are recorded when a portion of the purchase price of an acquisition is allocated to assets such as customer contracts and relationships and trade names. Intangible assets with finite lives are amortized using the straight line method over their estimated useful lives which are up to 20 years. Other assets include nonqualified savings plan investments, and revolving note fees which are capitalized and amortized as interest expense over the life of the related borrowings. Impairment of long-lived assets - When changes in circumstances indicate the carrying amount of certain long-lived asset groups may not be recoverable, the assets are evaluated for impairment. If the forecasted undiscounted future cash flows are less than the carrying amount of the assets, an impairment charge to reduce the carrying value of the assets to estimated realizable value is recognized in the current period. No impairment of long-lived assets was recorded in the years ended August 31, 2022, 2021 and 2020. Goodwill - Goodwill is recorded when the purchase price of an acquisition exceeds the fair market value of the net assets acquired. Goodwill is not amortized and is tested for impairment at least annually and more frequently if indicators of impairment arise. The Company reviews goodwill for impairment annually using either a qualitative assessment or a quantitative goodwill impairment test. If the qualitative assessment is selected and the Company determines that fair value of each reporting unit more likely than not exceeds its carrying value, no further assessment is necessary. For reporting units where the Company performs the quantitative goodwill impairment test, an impairment loss is recorded to the extent that the reporting unit’s carrying amount exceeds the reporting unit’s fair value. An impairment loss cannot exceed the total amount of goodwill allocated to the reporting unit. See Note 7 – Goodwill for additional information. Warranty accruals - Warranty costs are estimated and charged to operations to cover a defined warranty period. The estimated warranty cost is based on history of warranty claims for each particular product type. For new product types without a warranty history, preliminary estimates are based on historical information for similar product types. The warranty accruals, included in Accounts payable and accrued liabilities, are reviewed periodically and updated based on warranty trends. Income taxes - The asset and liability method is used to account for income taxes. Deferred income taxes are provided for the temporary effects of differences between assets and liabilities recognized for financial statement and income tax reporting purposes. Valuation allowances reduce deferred tax assets to an amount that will more likely than not be realized. The Company recognizes liabilities for uncertain tax positions based on whether evidence indicates that it is more likely than not that the position will be sustained on audit. The Company reevaluates these uncertain tax positions on a quarterly basis. Changes in tax law or court interpretations may result in the recognition of a tax benefit or an additional charge to the tax provision. Deferred revenue - Cash payments received prior to meeting revenue recognition criteria are recorded in Deferred revenue. Amounts are reclassified out of Deferred revenue once the revenue recognition criteria have been met. Noncontrolling interest and Contingently redeemable noncontrolling interest - The Company has a joint venture with Grupo Industrial Monclova, S.A. (GIMSA) that manufactures new railroad freight cars for the North American marketplace at GIMSA’s existing manufacturing facility located in Frontera, Mexico. Each party owns a 50 % interest in the joint venture. The financial results of this operation are consolidated for financial reporting purposes as the Company maintains a controlling interest as evidenced by the right to appoint the majority of the Board of Directors, control over accounting, financing, marketing and engineering and approval and design of products. The noncontrolling interest related to the partner’s 50 % interest in the joint venture is included in Noncontrolling interest in the equity section of the Company’s Consolidated Balance Sheet. Greenbrier-Astra Rail was formed in 2017 between the Company’s existing European operations headquartered in Swidnica, Poland and Astra Rail, based in Arad, Romania. Greenbrier-Astra Rail is controlled by the Company with an approximate 75 % interest. Astra Rail also received a put option to sell its entire noncontrolling interest to Greenbrier at an exercise price equal to the higher of fair value or a defined EBITDA multiple as measured on the exercise date. During 2022, the option was extended to be exercisable 30 business days prior to and up until June 1, 2026. The Company consolidates Greenbrier-Astra Rail for financial reporting purposes and includes the noncontrolling interest in the mezzanine section of the Consolidated Balance Sheet in Contingently redeemable noncontrolling interest. The carrying value of the noncontrolling interest cannot be less than the maximum redemption amount, which is the amount Greenbrier will settle the put option for if exercised. Adjustments to reconcile the carrying value to the maximum redemption amount are recorded to retained earnings. In August 2018, Greenbrier-Astra Rail entered into an agreement to take an approximately 68 % ownership stake in Rayvag, a railcar manufacturing company based in Adana, Turkey. Rayvag is controlled by the Company. The Company consolidates Rayvag for financial reporting purposes. The noncontrolling interest related to the partner’s interest is included in Noncontrolling interest in the equity section of the Company’s Consolidated Balance Sheet. Net earnings attributable to noncontrolling interest on the Company’s Consolidated Statement of Income represents the Company’s partners’ share of results from operations. Accumulated other comprehensive loss – Accumulated other comprehensive loss, net of tax as appropriate, consisted of the following: (In millions) Unrealized Foreign Other Accumulated Balance, August 31, 2021 $ ( 7.4 ) $ ( 35.8 ) $ ( 0.5 ) $ ( 43.7 ) Other comprehensive income (loss) before reclassifications 15.7 ( 21.6 ) ( 0.7 ) $ ( 6.6 ) Amounts reclassified from accumulated other 4.7 — — $ 4.7 Balance, August 31, 2022 $ 13.0 $ ( 57.4 ) $ ( 1.2 ) $ ( 45.6 ) The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with the financial statement caption, were as follows: Year Ended August 31, (In millions) 2022 2021 Financial Statement Caption (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 1.2 $ 1.4 Revenue and Cost of revenue Interest rate swap contracts 4.9 5.3 Interest and foreign exchange 6.1 6.7 Total before tax ( 1.4 ) ( 1.7 ) Tax expense $ 4.7 $ 5.0 Net of tax Revenue recognition – The Company measures revenue at the amounts that reflect the consideration to which it expects to be entitled in exchange for transferring control of goods and services to customers. The Company recognizes revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. Payment terms vary by segment and product type and are generally due within normal commercial terms. The Company’s contracts with customers may include multiple performance obligations (e.g. railcars, maintenance, management services, etc.). For such arrangements, the Company allocates revenues to each performance obligation based on its relative standalone selling price. The Company has disaggregated revenue from contracts with customers into categories which describe the principal activities from which it generates revenues. Manufacturing Railcars are manufactured in accordance with contracts with customers. The Company recognizes revenue upon its customers’ acceptance of the completed railcars at a specified delivery point. From time to time, the Company enters into multi-year supply agreements. Each railcar delivery is considered a distinct performance obligation, such that the amounts that are recognized as revenue following railcar delivery are generally not subject to change. The Company typically recognizes marine vessel manufacturing revenue over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts the Company’s performance in completing the construction of the marine vessel for the customer. When estimates of total costs to be incurred on a contract exceed total revenue, the expected loss is recorded in the period in which the loss is determined. Maintenance Services The Company operates a network of facilities in North America that provide complete wheelset reconditioning and maintenance services. Wheels revenue is recognized when wheelsets are shipped to the customer or when consumed by customers in the case of consignment arrangements. Parts revenue is recognized upon shipment of the parts to the customers. Maintenance revenue is typically recognized over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts the Company’s performance in servicing the railcars for the customer. Maintenance services are typically completed in less than 90 days. Leasing & Management Services The Company owns a fleet of new and used railcars which are leased to third-party customers. Lease revenue is recognized over the lease-term in the period in which it is earned. Syndication transactions represent new and used railcars which have been placed on lease to a customer and which the Company sells to an investor with the lease attached. At the time of such sale, revenue and cost of revenue is allocated between the Manufacturing segment and Leasing & Management Services segment based on the relative standalone selling price of the product and services provided. Revenue and cost of revenue associated with railcars which were obtained from a third-party with the intent to resell them and subsequently sold, are recognized in the Leasing & Management Services segment. The Company enters into multi-year contracts to provide management and maintenance services to customers for which revenue is generally recognized on a straight-line basis over the contract term as a stand-ready obligation. Costs to fulfill these contracts are recognized as incurred. Interest and foreign exchange - Interest and foreign exchange includes foreign exchange transaction gains and losses, amortization of debt issuance costs, and external interest expense. Year Ended August 31, (In millions) 2022 2021 2020 Interest and foreign exchange: Interest and other expense $ 55.7 $ 44.7 $ 42.4 Foreign exchange (gain) loss 1.7 ( 1.4 ) 1.2 $ 57.4 $ 43.3 $ 43.6 Forward exchange contracts - Foreign operations give rise to risks from fluctuations in foreign currency exchange rates. Forward exchange contracts with established financial institutions are used to hedge a portion of such risk. Realized and unrealized gains and losses on effective hedges are deferred in other comprehensive income (loss) and recognized in earnings concurrent with the hedged transaction or when the occurrence of the hedged transaction is no longer considered probable. Ineffectiveness is measured and any gain or loss is recognized in foreign exchange (gain) loss. Even though forward exchange contracts are entered into to mitigate the impact of currency fluctuations, certain exposure remains, which may affect operating results. In addition, there is risk for counterparty non-performance. Interest rate instruments - Interest rate swap agreements are used to reduce the impact of changes in interest rates on certain debt. The net cash amounts paid or received under the agreements are recognized as an adjustment to interest expense. Research and development - Research and development costs are expensed as incurred. Research and development costs incurred for new product development during the years ended August 31, 2022, 2021 and 2020 were $ 5.4 million, $ 6.3 million and $ 5.8 million, respectively, included in Selling and administrative expenses. Net earnings per share - Basic earnings per common share (EPS) is calculated using weighted average basic common shares outstanding, which include restricted stock grants and restricted stock units that are considered participating securities when the Company is in a net earnings position. Diluted EPS is calculated using the if-converted method, associated with shares underlying the 2024 and 2028 2.875 % Convertible notes, and the treasury stock method associated with restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria. Stock-based compensation – The value of stock-based compensation awards is amortized as compensation expense from the date of grant through the earlier of the vesting period or in some instances the recipient’s eligible retirement date. Stock based compensation expense consists of restricted stock units and restricted stock awards. The fair value of awards is measured using the number of shares granted multiplied by the closing share price on the grant date. Stock based compensation expense for the years ended August 31, 2022, 2021 and 2020 was $ 15.5 million, $ 14.7 million and $ 9.0 million, respectively and was recorded in Selling and administrative and Cost of revenue on the Consolidated Statements of Income. Restricted stock units and restricted stock awards are accounted for as equity based awards (see Note 14 - Equity). Management estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires judgment on the part of management to arrive at estimates and assumptions on matters that are inherently uncertain. These estimates may affect the amount of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes and disclosure of contingent assets and liabilities within the financial statements. Estimates and assumptions are periodically evaluated and may be adjusted in future periods. Actual results could differ from those estimates. Reclassifications - Certain immaterial reclassifications have been made to the accompanying prior year Consolidated Financial Statements to conform to the current year presentation. Initial Adoption of Accounting Policies Lease accounting On September 1, 2019 , the Company adopted Accounting Standards Update 2016-02, Leases and related amendments (Topic 842). Upon adoption, the Company recorded a cumulative-effect adjustment of $ 4.4 million as an increase to retained earnings. Under the short term lease recognition exemption, the Company does not recognize ROU assets or lease liabilities for qualifying leases with terms of less than twelve months. The Company does not separate lease and non-lease components. The Company utilizes both Topic 842 and Accounting Standards Codification 606, Revenue from Contracts with Customers (Topic 606) when evaluating retained risk of services and other performance obligations in conjunction with selling railcars with a lease attached as part of the syndication model. Derivatives and Hedging In August 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). The Company adopted this guidance effective September 1, 2019 and it did not have a material impact on its consolidated financial statements. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued Accounting Standard Update 2016-13, Financial Instruments – Credit Losses (ASU 2016-13). The Company adopted this guidance using a modified retrospective approach through a cumulative effect adjustment, which decreased opening retained earnings by $ 0.5 million on September 1, 2020. Convertible Instruments and Contracts in an Entity’s Own Equity In August 2020, the FASB issued Accounting Standard Update 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for certain convertible instruments, amends guidance on derivative scope exceptions for contracts in an entity’s own equity and modifies the guidance on diluted EPS calculations as a result of these changes. The Company adopted this guidance effective September 1, 2021 on a modified retrospective basis and recorded a cumulative effect adjustment to increase Retained earnings by $ 5 million. The impact of adoption also resulted in a reduction to Additional paid in capital of approximately $ 59 million related to amounts attributable to conversion options that had previously been recorded in equity and the associated derecognition of related deferred tax liabilities of $ 17 million. Additionally, the Company recorded an increase to its convertible notes balance by an aggregate amount of approximately $ 71 million as a result of derecognizing the debt discount. The adoption of this guidance also decreased the amount of non-cash interest expense to be recognized in future periods as a result of eliminating the discount associated with the equity component. The Company did not incur any impact to liquidity or cash flows. Beginning September 1, 2021, when calculating net earnings attributable to Greenbrier per share of common stock, the Company uses the if-converted method as required under ASU 2020-06 to determine the dilutive effect of its convertible notes. Simplification of Accounting for Income Taxes In December 2019, the FASB issued Accounting Standard Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 for: recognizing deferred taxes for investments, performing intra-period allocations and calculating taxes in interim periods. The ASU also improves consistent application of GAAP for other areas of Topic 740 by clarifying and amending existing guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The Company adopted this guidance September 1, 2021 with no impact to the Company's consolidated financial statements. The ongoing application of ASU 2019-12 is not expected to materially impact the Company's consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting , which provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The elective amendments provide expedients to contract modification, affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by this guidance apply only to contracts, hedging relationships, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. This guidance is not applicable to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The guidance can be applied immediately through December 31, 2022. During the fourth quarter of fiscal year 2022 , the Company adopted the optional relief guidance provided under this ASU after modifying certain debt to update the reference rate from LIBOR to SOFR. This caused a temporary mismatch in our interest rate swap and debt for a period of time. The application of this expedient preserves the presentation of the derivatives consistent with past presentation. The Company will continue to assess the impact of the guidance and may apply other elections as applicable going forward. |
Asset Backed Securities
Asset Backed Securities | 12 Months Ended |
Aug. 31, 2022 | |
Asset Backed Securities [Abstract] | |
Asset Backed Securities | Note 3 – Asset Backed Securities GBX Leasing 2022-1 LLC (GBXL I) was formed as a wholly owned special purpose entity (SPE) of GBX Leasing to securitize the leasing assets of GBX Leasing. On February 9, 2022, GBXL I (Issuer) issued $ 323.3 million of term notes secured by a portfolio of railcars and associated operating leases and other assets, acquired and owned by GBXL I. Greenbrier Management Services, LLC (GMS) entered into certain agreements relating to the management and servicing of the Issuer’s assets. The Company used the net proceeds received from the issuance of the term notes to pay down the GBX Leasing warehouse credit facility. The Company evaluated the accounting for the transaction and concluded that, based on its equity investment in the Issuer combined with GMS’s capacity as servicer, the Company is the primary beneficiary of the SPE and will consolidate the SPE for financial reporting purposes. Issued debt includes $ 302.6 million of GBXL I Series 2022-1 Class A Secured Railcar Equipment Notes (Class A Notes) and $ 20.7 million of GBXL I Series 2022-1 Class B Secured Railcar Equipment Notes (Class B Notes), collectively the GBXL Series 2022-1 Notes (the GBXL Notes). The GBXL Notes bear interest at fixed rates of 2.87 % and 3.45 % for the Class A Notes and Class B Notes, respectively. The GBXL Notes are payable monthly and have a legal maturity date of February 20, 2052 . The Company incurred $ 5.0 million in debt issuance costs, which will be amortized to interest expense through the expected repayment period. Both Class A and Class B Notes have an anticipated repayment date of January 20, 2029 and a legal maturity date. While the legal maturity date is in 2052 , the cash flows generated from the railcar assets will pay down the GBXL Notes in line with the agreement, which based on expected cash flow payments, would result in repayment in advance of the legal maturity date. If the principal amount of the GBXL Notes has not been repaid in full by the anticipated repayment date, then the Issuer will also be required to pay additional interest to the holders at a rate equal to 4.00 % per annum. The GBXL Notes are obligations of the Issuer only and are nonrecourse to Greenbrier. The GBXL Notes are subject to a Master Indenture between the Issuer and U.S. Bank Trust Company, National Association, as trustee, as supplemented by a Series 2022-1 Supplement dated February 9, 2022. The GBXL Notes may be subject to acceleration upon the occurrence of certain events of default. The following table summarizes the Issuer's net carrying amount of the assets transferred and the related debt. As of August 31, (In millions) 2022 Assets Restricted cash $ 6.9 Equipment on operating leases, net 401.8 Liabilities Notes payable, net $ 312.8 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Aug. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 4 – Revenue Recognition Contract balances Contract assets primarily consist of unbilled receivables related to marine vessel construction and railcar maintenance services, for which the respective contracts do not yet permit billing at the reporting date. Contract liabilities primarily consist of customer prepayments for manufacturing, maintenance, and other management-type services, for which the Company has not yet satisfied the related performance obligations. The opening and closing balances of the Company’s contract balances are as follows: (In millions) Balance sheet August 31, 2022 August 31, 2021 $ change Contract assets Accounts receivable, net $ 13.0 $ 5.9 $ 7.1 Contract assets Inventories $ 6.0 $ 6.7 $ ( 0.7 ) Contract liabilities 1 Deferred revenue $ 30.5 $ 36.4 $ ( 5.9 ) 1 Contract liabilities balance includes deferred revenue within the scope of Topic 606. For the years ended August 31, 2022 and 2021 the Company recognized $ 16.4 million and $ 7.4 million of revenue, respectively, that was included in Contract liabilities as of August 31, 2021 and 2020. Performance obligations As of August 31, 2022, the Company has entered into contracts with customers for which revenue has not yet been recognized. The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods. (In millions) August 31, 2022 Revenue type: Manufacturing – Railcar sales $ 2,634.0 Manufacturing – Marine $ 30.9 Manufacturing – Conversions $ 183.6 Services $ 123.8 Other $ 12.3 Manufacturing – Railcars intended for syndication 1 $ 623.7 1 Not a performance obligation as defined in Topic 606 Based on current production and delivery schedules and existing contracts, approximately $ 2.1 billion of the Railcar sales amount is expected to be recognized in the next 12 months while the remaining amount is expected to be recognized through 2024. The table above excludes estimated revenue to be recognized at the Company’s Brazilian manufacturing operations, as they are accounted for under the equity method. Revenue amounts reflected in Railcars intended for syndication may be syndicated to third parties or held in the Company’s fleet depending on a variety of factors. Marine revenue is expected to be recognized through 2023 as vessel construction is completed. Services includes management and maintenance services of which approximately 54 % are expected to be performed through 2027 and the remaining amount through 2037. |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 — Inventories As of August 31, (In millions) 2022 2021 Manufacturing supplies and raw materials $ 570.2 $ 352.8 Work-in-process 183.3 167.3 Finished goods 75.9 73.4 Excess and obsolete adjustment ( 14.1 ) ( 19.9 ) $ 815.3 $ 573.6 As of August 31, (In millions) 2022 2021 2020 Excess and obsolete adjustment Balance at beginning of period $ 19.9 $ 24.2 $ 9.5 Charge to cost of revenue 1.5 0.8 18.0 Disposition of inventory ( 6.9 ) ( 5.0 ) ( 3.6 ) Currency translation effect ( 0.4 ) ( 0.1 ) 0.3 Balance at end of period $ 14.1 $ 19.9 $ 24.2 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Aug. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Note 6 — Property, Plant and Equipment, net As of August 31, (In millions) 2022 2021 Land and improvements $ 88.4 $ 94.6 Machinery and equipment 623.7 609.8 Buildings and improvements 367.1 379.1 Construction in progress 55.3 50.0 Other 107.4 92.8 1,241.9 1,226.3 Accumulated depreciation ( 596.7 ) ( 556.1 ) $ 645.2 $ 670.2 Depreciation expense was $ 70.7 million, $ 75.3 million and $ 86.6 million for the years ended August 31, 2022, 2021 and 2020, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Aug. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 7 — Goodwill Changes in the carrying value of goodwill are as follows: (In millions) Manufacturing Maintenance Services Leasing & Management Services Total Balance August 31, 2021 $ 88.8 $ 43.3 $ — $ 132.1 Translation and other adjustments ( 4.5 ) ( 0.3 ) — ( 4.8 ) Balance August 31, 2022 $ 84.3 $ 43.0 $ — $ 127.3 (In millions) Goodwill Gross goodwill balance before accumulated goodwill impairment losses and other $ 290.1 Accumulated goodwill impairment losses ( 138.2 ) Accumulated other reductions ( 24.6 ) Balance August 31, 2022 $ 127.3 The Company performed its annual goodwill impairment test during the third quarter. For the annual impairment test during the third quarter of 2022, the Company utilized the qualitative assessment allowable under ASC 350 Intangibles – Goodwill and Other to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. This qualitative assessment may include, but is not limited to, reviewing factors such as macroeconomic considerations and industry indicators, financial performance and cost estimates associated with a particular reporting unit. If based on a review of qualitative factors, it is more likely than not that the fair value of a reporting unit is less than its carrying value, a quantitative impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. Based on our review of the qualitative factors, the Company determined for all three of our reporting unit goodwill balances that a quantitative impairment analysis was not necessary, primarily as a result of positive market indicators and entity-specific financial performance during the assessment period. As of August 31, 2022, our Manufacturing segment includes the North America Manufacturing reporting unit with a goodwill balance of $ 56.6 million and the Europe Manufacturing reporting unit with a goodwill balance of $ 27.7 million. The Maintenance Services segment had a goodwill balance of $ 43.0 million related to the Wheels & Parts reporting unit. Based on the results of the Company’s annual impairment test, the Company concluded that goodwill was not impaired. |
Intangibles and Other Assets, n
Intangibles and Other Assets, net | 12 Months Ended |
Aug. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles and Other Assets, net | Note 8 — Intangibles and Other Assets, net Intangible assets that are determined to have finite lives are amortized over their useful lives. Intangible assets with indefinite useful lives are not amortized and are periodically evaluated for impairment. The following table summarizes the Company’s identifiable intangible and other assets balance: As of August 31, (In millions) 2022 2021 Intangible assets subject to amortization: Customer and supplier relationships $ 87.5 $ 89.8 Accumulated amortization ( 66.1 ) ( 64.1 ) Other intangible assets 42.4 40.3 Accumulated amortization ( 16.5 ) ( 13.0 ) 47.3 53.0 Intangible assets not subject to amortization 2.4 2.4 Prepaid and other assets 32.4 26.7 Operating lease ROU assets 54.2 39.8 Nonqualified savings plan investments 40.3 47.7 Debt issuance costs, net 8.7 8.6 Assets held for sale 3.8 5.4 $ 189.1 $ 183.6 Amortization expense for the years ended August 31, 2022, 2021 and 2020 was $ 9.3 million, $ 11.6 million and $ 11.0 million, respectively. As of August 31, 2022, amortizable intangible assets had a weighted-average remaining useful life of 8 years. Amortization expense for the years ending August 31, 2023, 2024, 2025, 2026 and 2027 is expected to be $ 8.5 million, $ 7.6 million, $ 7.2 million, $ 6.0 million and $ 5.3 million, respectively. |
Revolving Notes
Revolving Notes | 12 Months Ended |
Aug. 31, 2022 | |
Debt Disclosure [Abstract] | |
Revolving Notes | Note 9 — Revolving Notes Senior secured credit facilities, consisting of four components, aggregated to $ 1.14 billion as of August 31, 2022. As of August 31, 2022, a $ 600.0 million revolving line of credit, maturing August 2026 , secured by substantially all the Company’s U.S. assets not otherwise pledged as security for term loans, the warehouse credit facility or the railcar asset-backed securities, existed to provide working capital and interim financing of equipment, principally for the Company’s U.S. and Mexican operations. Advances under this North American credit facility bear interest at SOFR plus 1.50 % plus 0.10 % as a SOFR adjustment or Prime plus 0.50 % depending on the type of borrowing. Available borrowings under the credit facility are generally based on defined levels of eligible inventory, receivables, property, plant and equipment and leased equipment, as well as total debt to consolidated capitalization and fixed charges coverage ratios. As of August 31, 2022, a $ 350.0 million non-recourse warehouse credit facility existed to support the operations of GBX Leasing, a joint venture in which the Company owns approximately 95 %. Advances under this facility bear interest at SOFR plus 1.85 % plus 0.11 % as a SOFR adjustment. The warehouse credit facility converts to a term loan in August 2025 which matures in August 2027 . As of August 31, 2022, lines of credit totaling $ 67.2 million secured by certain of the Company’s European assets, with variable rates that range from Warsaw Interbank Offered Rate (WIBOR) plus 1.2 % to WIBOR plus 1.6 % and Euro Interbank Offered Rate (EURIBOR) plus 1.5 %, were available for working capital needs of the Company’s European manufacturing operations. The European lines of credit include $ 40.8 million which are guaranteed by the Company. European credit facilities are regularly renewed. Currently, these European credit facilities have maturities that range from February 2023 through October 2023 . As of August 31, 2022, the Company’s Mexican railcar manufacturing operations had four lines of credit totaling $ 120.0 million. The first line of credit provides up to $ 30.0 million, of which the Company and its joint venture partner have each guaranteed 50 %. Advances under this facility bear interest at LIBOR plus 3.75 % to 4.25 %. The Mexican railcar manufacturing joint venture will be able to draw amounts available under this facility through June 2024 . The second line of credit provides up to $ 35.0 million, of which the Company and its joint venture partner have each guaranteed 50 %. Advances under this facility bear interest at LIBOR plus 3.75 %. The Mexican railcar manufacturing joint venture will be able to draw amounts available under this facility through June 2023 . The third line of credit provides up to $ 50.0 million and matures in October 2024 . Advances under this facility bear interest at LIBOR plus 4.25 %. The fourth line of credit provided up to $ 5.0 million and matured September 2022 . The interest rate under this facility was LIBOR plus 2.95 %. As of August 31, (In millions) 2022 2021 Credit facility balances: North America $ 160.0 $ 160.0 GBX Leasing — 147.0 Europe 51.6 50.2 Mexico 85.0 15.0 Total Revolving notes $ 296.6 $ 372.2 In addition, outstanding commitments under the North American credit facility included letters of credit which totaled $ 6.9 million and $ 8.4 million as of August 31, 2022 and 2021, respectively. As of August 31, 2022, the Company had an aggregate of $ 147.9 million available to draw down under committed credit facilities. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Aug. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 10 — Accounts Payable and Accrued Liabilities As of August 31, (In millions) 2022 2021 Trade payables $ 401.5 $ 265.1 Other accrued liabilities 102.8 109.1 Operating lease liabilities 56.4 42.6 Accrued payroll and related liabilities 140.4 125.1 Accrued warranty 24.0 27.9 $ 725.1 $ 569.8 |
Warranty Accrual
Warranty Accrual | 12 Months Ended |
Aug. 31, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Warranty Accrual | Note 11 — Warranty Accrual As of August 31, (In millions) 2022 2021 2020 Balance at beginning of period $ 27.9 $ 45.2 $ 46.7 Charged to cost of revenue 5.0 ( 8.0 ) 4.0 Payments ( 7.9 ) ( 9.2 ) ( 6.2 ) Currency translation effect ( 1.0 ) ( 0.1 ) 0.7 Balance at end of period $ 24.0 $ 27.9 $ 45.2 |
Notes Payable, net
Notes Payable, net | 12 Months Ended |
Aug. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable, net | Note 12 — Notes Payable, net As of August 31, (In millions) 2022 2021 Term loans $ 867.5 $ 492.3 2.875 % Convertible senior notes, due 2028 373.8 373.8 2.875 % Convertible senior notes, due 2024 47.7 47.7 Other notes payable 1.2 1.7 $ 1,290.2 $ 915.5 Debt discount and issuance costs (1) ( 21.1 ) ( 89.0 ) $ 1,269.1 $ 826.5 (1) As described in Note 2 – Summary of Significant Accounting Policies, effective September 1, 2021 , the debt discount associated with convertible senior notes was derecognized upon adoption of ASU 2020-06 using the modified retrospective approach. Financial results for 2021 were not adjusted. See discussion below for additional information. Term loans are primarily composed of: • $ 291.9 million of senior term debt, with a maturity date of August 2026 . The debt bears a floating interest rate of SOFR plus 1.5 % plus 0.10 % as a SOFR adjustment with principal of $ 3.65 million paid quarterly in arrears and a balloon payment of $ 222.6 million due at maturity. Interest rate swap agreements cover 75 % of the principal balance to swap the floating interest rate to a fixed rate. The principal balance as of August 31, 2022 was $ 280.9 million . • $ 275.0 million of senior term debt, with a maturity date of August 2027 , which is secured by a pool of leased railcars. The original $ 200 million term debt agreement was amended on July 29, 2022 to provide for an incremental $ 75 million term loan and an additional $ 75 million available as a delayed draw until January 2023 , subject to satisfaction of certain conditions. The debt bears a floating interest rate of SOFR plus 1.375 % plus 0.10 % as a SOFR adjustment, with principal of $ 2.4 million paid quarterly in arrears and a balloon payment of $ 219.9 million due at maturity. Interest rate swap agreements cover 100 % of the principal balance to swap the floating interest rate to a fixed rate. The principal balance as of August 31, 2022 was $ 268.0 million . • $ 323.3 million of senior term debt, which is secured by a portfolio of railcars and associated operating leases and other assets, acquired, and owned by GBXL I. See Note 3 – Asset Backed Securities for additional information . The principal balance as of August 31, 2022 was $ 318.6 million. Convertible senior notes, due 2028 (2028 Convertible Notes), bear interest at a fixed rate of 2.875 %, paid semiannually in arrears on April 15 th and October 15 th . Issuance costs are amortized using the effective interest rate method through 2028 and the amortization expense is included in Interest and Foreign exchange on the Company's Consolidated Statement of Income. As of August 31, 2022, the effective interest rate was 5.75 %. The convertible notes mature on April 15, 2028 , unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date. The convertible notes are senior unsecured obligations and rank equally with other senior unsecured debt. The notes are convertible into shares of the Company’s common stock, at an initial conversion rate of 18.0317 shares of common stock per $ 1,000 principal amount which is equivalent to an initial conversion price of approximately $ 55.46 per share. The conversion rate and the resulting conversion price are subject to adjustment in certain events, such as distributions, dividends or stock splits. Conversion of the par value of the note will be settled in cash, with any premium convertible in cash or shares at the Company’s option. Upon a conversion of the notes, the Company may elect to pay or deliver, as the case may be, cash and, if applicable, shares of the Company’s common stock, as provided in the 2028 Notes Indenture (as defined below). As of August 31, 2022, the Company has reserved approximately 8.8 million shares for issuance upon conversion of these notes. The 2028 Convertible Notes are subject to an indenture entered into on April 20, 2021 by the Company and Wells Fargo Bank, National Association, as trustee, as amended and restated by the first supplemental indenture dated June 1, 2021 (2028 Notes Indenture). The 2028 Convertible Notes are convertible at the option of the holders prior to January 15, 2028 , under certain circumstances as described in the 2028 Notes Indenture. Additionally, the Company may elect to call the notes on or after April 15, 2025 and on or before the 40 th trading day prior to April 15, 2028 , at a cash redemption price described in the 2028 Notes Indenture if the stock price exceeds 130 % of the conversion price during certain trading days as defined in the 2028 Notes Indenture. Calling any Convertible Note for redemption will constitute a make-whole fundamental change with respect to that Convertible Note, in which case the conversion rate applicable to the conversion of that Convertible Note will be increased in certain circumstances if it is converted after it is called for redemption. Convertible senior notes, due 2024 (2024 Convertible Notes), bear interest at a fixed rate of 2.875 %, paid semi-annually in arrears on February 1 st and August 1 st . Issuance costs are amortized using the effective interest rate method through 2024 and the amortization expense is included in Interest and Foreign exchange on the Company's Consolidated Statement of Income. As of August 31, 2022, the effective interest rate was 4.99 %. The convertible notes mature on February 1, 2024 , unless earlier repurchased by the Company or converted in accordance with their terms. Upon the satisfaction of certain conditions, holders may convert at their option at any time prior to the business day immediately preceding the stated maturity date. The convertible notes are senior unsecured obligations and rank equally with other senior unsecured debt. The convertible notes are convertible into shares of the Company’s common stock, at an initial conversion rate of 16.6234 shares per $ 1,000 principal amount of the notes (which is equal to an initial conversion price of $ 60.16 per share). The initial conversion rate and conversion price are subject to adjustment upon the occurrence of certain events, such as distributions, dividends or stock splits. As of August 31, 2022 the Company has reserved approximately 1.1 million shares for issuance upon conversion of these notes. As described in Note 2 – Summary of Significant Accounting Policies, effective September 1, 2021 , the Company adopted ASU 2020-06 using the modified retrospective approach under which financial results reported in prior periods were not adjusted. Prior to the adoption of the standard, the convertible notes were separated into liability and equity components with an associated debt discount. The debt discount was amortized using the effective interest rate method over the term of the convertible notes until September 1, 2021, when the debt discount associated with these convertible notes was derecognized. Other notes payable includes $ 1.2 million of unsecured debt with maturity dates ranging from February 2023 to February 2027. The notes payable, along with the revolving and operating lines of credit, contain certain covenants with respect to the Company and various subsidiaries, the most restrictive of which, among other things, limit the ability to: incur additional indebtedness or guarantees; pay dividends or repurchase stock; enter into capital leases; create liens; sell assets; engage in transactions with affiliates, including joint ventures and non U.S. subsidiaries, including but not limited to loans, advances, equity investments and guarantees; enter into mergers, consolidations or sales of substantially all the Company’s assets; and enter into new lines of business. The covenants also require certain maximum ratios of debt to total capitalization and minimum levels of fixed charges (interest and rent) coverage. As of August 31, 2022, principal payments on the notes payable are expected as follows: (In millions) Year ending August 31, 2023 $ 35.3 2024 (1) 83.8 2025 36.4 2026 259.1 2027 241.9 Thereafter (1) 633.7 $ 1,290.2 (1) The repayment of the $ 47.7 million of 2024 Convertible Notes due February 2024 and the $ 373.8 million of 2028 Convertible Notes due April 2028 is assumed to occur at the scheduled maturity instead of assuming an earlier conversion by the holders. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Aug. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 13 — Derivative Instruments Foreign operations give rise to market risks from changes in foreign currency exchange rates. Foreign currency forward exchange contracts with established financial institutions are utilized to hedge a portion of that risk. Interest rate swap agreements are used to reduce the impact of changes in interest rates on certain debt. The Company’s foreign currency forward exchange contracts and interest rate swap agreements are designated as cash flow hedges, and therefore the effective portion of unrealized gains and losses is recorded in accumulated other comprehensive income or loss. At August 31, 2022 exchange rates, notional amounts of forward exchange contracts for the purchase of Polish Zlotys and the sale of Euros; and the purchase of Mexican Pesos and the sale of U.S. Dollars aggregated to $ 73.6 million. The fair value of the contracts is included on the Consolidated Balance Sheets as Accounts payable and accrued liabilities when in a loss position, or as Accounts receivable, net when in a gain position. As the contracts mature at various dates through October 2023, any such gain or loss remaining will be recognized in manufacturing revenue or cost of revenue along with the related transactions. In the event that the underlying transaction does not occur or does not occur in the period designated at the inception of the hedge, the amount classified in accumulated other comprehensive loss would be reclassified to the results of operations in Interest and foreign exchange at the time of occurrence. At August 31, 2022 exchange rates, approximately $ 3.5 million loss would be reclassified to revenue or cost of revenue in the next year. At August 31, 2022, interest rate swap agreements maturing from September 2023 through January 2032 had notional amounts that aggregated to $ 478.7 million. The fair value of the contracts are included on the Consolidated Balance Sheets in Accounts payable and accrued liabilities when in a loss position, or in Accounts receivable, net when in a gain position. As interest expense on the underlying debt is recognized, amounts corresponding to the interest rate swap are reclassified from Accumulated other comprehensive loss and charged or credited to interest expense. At August 31, 2022 interest rates, approximately $ 6.4 million would be credited to interest expense in the next year. Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives August 31, August 31, 2022 2021 2022 2021 (In millions) Balance sheet Fair Fair Balance sheet Fair Fair Derivatives designated as hedging instruments Foreign forward Accounts $ 0.6 $ 0.1 Accounts payable $ 2.9 $ 0.3 Interest rate swap Accounts 20.8 — Accounts payable — 10.0 $ 21.4 $ 0.1 $ 2.9 $ 10.3 Derivatives not designated as hedging instruments Foreign forward Accounts $ — $ — Accounts payable $ 0.1 $ 0.1 The Effect of Derivative Instruments on the Consolidated Statements of Income Derivatives in cash flow Location of gain (loss) Gain (loss) recognized in income on 2022 2021 Foreign forward exchange contract Interest and foreign exchange $ ( 0.3 ) $ ( 0.1 ) Derivatives in Gain (loss) Location of Gain (loss) Location of gain Gain (loss) 2022 2021 2022 2021 2022 2021 Foreign forward $ ( 4.7 ) $ ( 2.0 ) Revenue $ ( 1.5 ) $ ( 1.3 ) Revenue $ 0.9 $ 0.6 Foreign forward 0.5 — Cost of revenue 0.3 ( 0.1 ) Cost of revenue 0.7 0.1 Interest rate swap 26.1 0.6 Interest and ( 4.9 ) ( 5.3 ) Interest and — — $ 21.9 $ ( 1.4 ) $ ( 6.1 ) $ ( 6.7 ) $ 1.6 $ 0.7 The following table presents the amounts in the Consolidated Statements of Income in which the effects of the cash flow hedges are recorded and the effects of the cash flow hedge activity on these line items for the years ended August 31, 2022, 2021 and 2020: For the Year Ended August 31, 2022 2021 2020 (In millions) Total Amount of gain Total Amount of gain Total Amount of gain Revenue $ 2,977.7 $ ( 1.5 ) $ 1,747.9 $ ( 1.3 ) $ 2,792.2 $ ( 0.7 ) Cost of revenue 2,671.7 0.3 1,516.3 ( 0.1 ) 2,439.1 ( 2.2 ) Interest and foreign exchange 57.4 ( 4.9 ) 43.3 ( 5.3 ) 43.6 ( 2.7 ) |
Equity
Equity | 12 Months Ended |
Aug. 31, 2022 | |
Equity [Abstract] | |
Equity | Note 14 — Equity Stock Incentive Plan The 2021 Stock Incentive Plan was approved by shareholders on January 6, 2021. The new plan replaced the 2014 Amended and Restated Stock Incentive Plan, which was amended and restated as the 2017 Amended and Restated Stock Incentive Plan on October 24, 2017 and approved by shareholders on January 5, 2018. The 2021 Stock Incentive Plan provides for the grant of incentive stock options, non-statutory stock options, restricted shares, restricted stock units and stock appreciation rights. In addition to the 1,500 thousand shares reserved for issuance under the 2021 Stock Incentive Plan, up to 466 thousand shares previously reserved for issuance, but not issued or subject to outstanding awards, are available for issuance under the 2021 Stock Incentive Plan, and up to 884 thousand shares that were subject to outstanding awards under the 2017 Amended and Restated Stock Incentive Plan as of the effective date of the 2021 Stock Incentive Plan will also become available for issuance under the 2021 Stock Incentive Plan to the extent such shares are not issued and cease to be subject to such awards following the effective date of the 2021 Stock Incentive Plan. On August 31, 2022, there were 1,394 thousand shares available for grant compared to 1,618 thousand and 466 thousand shares available for grant as of the years ended August 31, 2021 and 2020, respectively. There are no stock options or stock appreciation rights outstanding as of August 31, 2022. The Company currently grants restricted stock units. Shares associated with restricted stock unit awards are not considered legally outstanding shares of common stock until they are issued following vesting. Restricted stock unit awards, including performance-based awards, some of which are entitled to participate in dividends and these awards are considered participating securities and are considered outstanding for earnings per share purposes when the effect is dilutive. During the years ended August 31, 2022, 2021 and 2020, the Company awarded restricted share and restricted stock unit grants totaling 391 thousand, 538 thousand, and 470 thousand shares, respectively, which include performance-based grants and dividend equivalent rights. As of August 31, 2022, there were a total of 653 thousand shares associated with unvested performance-based grants. The actual number of shares that will vest associated with performance-based grants will vary depending on the Company’s performance. Approximately 653 thousand additional shares may be granted if performance-based restricted stock unit awards vest at maximum levels of performance. These additional shares are associated with restricted stock unit awards granted during the years ended August 31, 2022, 2021 and 2020. The fair value of awards granted was $ 18.7 million, $ 18.0 million, and $ 14.5 million for the years ended August 31, 2022, 2021 and 2020, respectively. The fair value of awards granted is determined based on the market closing price of the underlying shares on the date of grant. The value, at the date of grant, of stock awarded under restricted share grants and restricted stock unit grants is amortized as compensation expense over the lesser of the vesting period of one to three years or to the recipients eligible retirement date. Compensation expense recognized related to restricted share grants and restricted stock unit grants for the years ended August 31, 2022, 2021 and 2020 was $ 15.5 million, $ 14.7 million, and $ 8.7 million, respectively, and was recorded in Selling and administrative and Cost of revenue on the Consolidated Statements of Income. Unamortized compensation cost related to restricted stock unit grants was $ 12.8 million as of August 31, 2022. Total unvested restricted share and restricted stock unit grants were 1,042 thousand and 1,024 thousand as of August 31, 2022 and 2021, respectively. During the year ended August 31, 2022, a total of 290 thousand restricted stock units vested, including shares that were withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. The following table summarizes restricted share and restricted stock unit grant transactions for shares, both vested and unvested, under the 2021 Stock Incentive Plan and the 2017 Amended and Restated Stock Incentive Plan: (In thousands) Shares Balance at August 31, 2019 (1) 4,575 Granted 470 Forfeited ( 86 ) Balance at August 31, 2020 (1) 4,959 Granted 538 Forfeited ( 190 ) Balance at August 31, 2021 (1) 5,307 Granted 391 Forfeited ( 167 ) Balance at August 31, 2022 (1) 5,531 (1) Balance represents cumulative grants net of forfeitures. Share Repurchase Program The Board of Directors has authorized the Company to repurchase shares of the Company’s common stock. The share repurchase program has an expiration date of January 31, 2023 and the amount remaining for repurchase is $ 100.0 million. Under the share repurchase program, shares of common stock may be purchased on the open market or through privately negotiated transactions from time to time. The timing and amount of purchases will be based upon market conditions, securities law limitations and other factors. The program may be modified, suspended or discontinued at any time without prior notice. The share repurchase program does not obligate the Company to acquire any specific number of shares in any period. There were no shares repurchased under this program during the years ended August 31, 2022, 2021 and 2020. Other Share Repurchases The Company repurchased $ 20.0 million of its common stock during 2021. These shares were repurchased, in privately negotiated transactions, as part of the Company’s debt refinancing in April 2021 and were not associated with the Company’s publicly announced share repurchase program. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Aug. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15 — Earnings Per Share The shares used in the computation of the Company’s basic and diluted earnings per common share are reconciled as follows: Year Ended August 31, (In thousands) 2022 2021 2020 Weighted average basic common shares outstanding (1) 32,569 32,648 32,670 Dilutive effect of 2.875 % Convertible notes, due 2024 (2)(3) — — — Dilutive effect of 2.875 % Convertible notes, due 2028 (4) — — N/A Dilutive effect of 2.25 % Convertible notes, due 2024 (5) N/A — — Dilutive effect of restricted stock units (6) 1,062 1,017 771 Weighted average diluted common shares outstanding 33,631 33,665 33,441 (1) Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. (2) The dilutive effect of the 2.875 % Convertible notes, due 2024 was excluded for the years ended August 31, 2021 and 2020 as the average stock price was less than the applicable conversion price and therefore was anti-dilutive under previous applicable guidance. See further discussion below. (3) The dilutive effect of the 2.875 % Convertible notes due 2024 was excluded for the year ended August 31, 2022 as they were considered anti-dilutive under the “if converted” method as further discussed below. (4) The dilutive effect of the 2.875 % Convertible notes, due 2028 was excluded for the years ended August 31, 2022 and 2021 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. As these notes require cash settlement for the principal, only a premium is potentially dilutive. These convertible notes were issued in April 2021. (5) The dilutive effect of the 2.25 % Convertible notes, due 2024 was excluded for the years ended August 31, 2021 and 2020 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive under previous applicable guidance. These convertible notes were retired in April 2021. (6) Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. Basic earnings per common share (EPS) is computed by dividing Net earnings attributable to Greenbrier by weighted average basic common shares outstanding, which includes restricted stock grants and restricted stock units that are considered participating securities when the Company is in a net earnings position. The Company's approach for calculating diluted EPS was modified beginning September 1, 2021 upon the adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . See Note 2 - Summary of Significant Accounting Policies for additional information. For the year ended August 31, 2022, diluted EPS was calculated using the more dilutive of two methods. The first method includes the dilutive effect, using the treasury stock method, associated with restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second method supplements the first by also including the “if converted” effect of the 2.875 % Convertible notes due 2024 and shares underlying the 2.875 % Convertible notes due 2028, when there is a conversion premium. Under the “if converted” method, debt issuance and interest costs, both net of tax, associated with the convertible notes due 2024 are added back to net earnings and the share count is increased by the shares underlying the convertible notes. For the years ended August 31, 2021 and 2020, diluted EPS was calculated using the treasury stock method associated with shares underlying the 2.875 % Convertible notes due 2024, 2.25 % convertible notes due 2024 , restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. (In millions, except number of shares which are reflected in Year Ended August 31, thousands and per share amounts) 2022 2021 2020 Net earnings attributable to Greenbrier $ 46.9 $ 32.4 $ 49.0 Weighted average basic common shares outstanding 32,569 32,648 32,670 Basic earnings per share $ 1.44 $ 0.99 $ 1.50 Net earnings attributable to Greenbrier $ 46.9 $ 32.4 $ 49.0 Add back: Interest and debt issuance costs on the 2.875 % n/a n/a n/a Earnings before interest and debt issuance costs n/a n/a n/a Weighted average diluted common shares outstanding 33,631 33,665 33,441 Diluted earnings per share $ 1.40 $ 0.96 $ 1.46 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 16 — Related Party Transactions The Company has a 41.9 % interest in Axis, a joint venture. The Company purchased $ 11.5 million, $ 13.5 million and $ 12.7 million of railcar components from Axis during the years ended August 31, 2022, 2021 and 2020, respectively. The Company has a 40 % interest in the common equity of an entity that buys and sells railcar assets that are leased to third parties. As of August 31, 2022 and 2021 the carrying amount of the investment was $ 0.7 million and $ 3.2 million, respectively, which is classified in Investment in unconsolidated affiliates in the Consolidated Balance Sheets. Upon sale of railcars to this entity from Greenbrier, 60 % of the related revenue and margin is recognized and 40 % is deferred until the railcars are ultimately sold by the entity. The Company recognized $ 4.7 million in revenue associated with railcars sold into the leasing warehouse during the year ended August 31, 2020. The Company had no material revenue with railcars sold into the leasing warehouse during the years ended August 31, 2022 and 2021. The Company recognized $ 9.3 million with railcars sold out of the leasing warehouse during the year ended August 31, 2022. The Company had no material revenue with railcars sold out of the leasing warehouse during the years ended August 31, 2021 and 2020. The Company also provides administrative and remarketing services to this entity and earns management fees for these services which were immaterial for each of the years ended August 31, 2022, 2021 and 2020. Mr. Furman is the owner of a private aircraft managed by a private independent management company. From time to time, the Company’s business requires charter use of privately-owned aircraft. In such instances, it is possible that charters may be placed on Mr. Furman’s aircraft. The Company placed charters on Mr. Furman’s aircraft which aggregated to $ 0.9 million, $ 0.2 million and $ 0.3 million for each of the years ended August 31, 2022, 2021 and 2020, respectively. In May 2020, the Company and its manufacturing partner GIMSA amended its joint venture agreement for its joint ventures in Monclova, Mexico. In addition to certain temporary changes to the existing fee arrangements, the joint ventures also paid dividends of $ 22.5 million to each of the joint venture partners during the year ended August 31, 2020. As of August 31, 2020, the Company had a $ 4.5 million note receivable due from Amsted-Maxion Cruzeiro, its unconsolidated Brazilian castings and components manufacturer and a $ 3.8 million note receivable from Greenbrier-Maxion, its unconsolidated Brazilian railcar manufacturer. These note receivables were included on the Consolidated Balance Sheets in Accounts receivable, net as of August 31, 2020 and were repaid in 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 17 — Income Taxes Components of income tax expense (benefit) were as follows: Year Ended August 31, (In millions) 2022 2021 2020 Current Federal $ ( 6.7 ) $ ( 95.9 ) $ 21.0 State 0.9 1.9 0.8 Foreign 19.2 4.3 25.4 13.4 ( 89.7 ) 47.2 Deferred Federal 2.2 54.1 ( 8.3 ) State 1.4 ( 2.3 ) 0.7 Foreign 1.6 ( 3.4 ) 0.5 5.2 48.4 ( 7.1 ) Change in valuation allowance ( 0.5 ) 1.1 0.1 Income tax expense (benefit) $ 18.1 $ ( 40.2 ) $ 40.2 Earnings (loss) before income tax and earnings from unconsolidated affiliates for the years ended August 31, 2022, 2021 and 2020 were $ 12.4 million, ($ 30.7 million) and $ 71.2 million, respectively, for our domestic U.S. operations and $ 48.2 million, $ 22.1 million and $ 53.6 million, respectively for our foreign operations. In response to the COVID 19 pandemic, the CARES Act was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”). Corporate taxpayers may carryback net operating losses (“NOLs”) originating in 2018 through 2020 for up to five years, which was not previously allowed under the 2017 Tax Act. The CARES Act also eliminates the existing limitation on taxable income of 80% by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019, or 2020, and allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act. In addition, the CARES Act makes qualified improvement property generally eligible for 15-year cost-recovery and 100% bonus depreciation. Due to the enactment of the CARES Act, the Company filed a Federal claim to carryback fiscal year 2021 tax losses to the fiscal years 2016 through 2018, allowing the recovery of Federal income taxes previously paid at Federal rates of 35.0 % or 25.7 %, rather than the current Federal rate of 21.0 % in effect beginning with the fiscal year 2019. The aggregate impact of the CARES Act resulted in a Federal tax benefit of $ 38.5 million. On August 16, 2022, the Inflation Reduction Act (the “IRA”) was signed into law. In general, the provisions of the IRA will be effective beginning with fiscal year 2023, with certain exceptions. The IRA includes a new 15% corporate minimum tax as well as a 1% excise tax on corporate stock repurchases applicable to repurchases after December 31, 2022. The Company is in the process of evaluating the potential impacts of the IRA and does not currently expect the IRA to have a material impact on our effective tax rate. However, the analysis is ongoing and incomplete, and it is possible that the IRA could have an adverse effect on the Company’s tax liability. The reconciliation between effective and statutory tax rates on operations is as follows: Year Ended August 31, 2022 2021 2020 Federal statutory rate 21.0 % ( 21.0 )% 21.0 % State income taxes, net of federal benefit 3.4 ( 15.0 ) 2.0 Foreign operations 9.0 25.5 4.5 Carryback rate benefit ( 3.2 ) ( 379.1 ) — Permanent differences 7.2 ( 45.6 ) 8.9 Change in valuation allowance ( 0.8 ) 12.6 0.1 Uncertain tax positions ( 1.8 ) ( 44.0 ) 3.1 Noncontrolling interest in flow-through entity ( 3.0 ) ( 2.9 ) ( 6.1 ) Other ( 1.9 ) 0.7 ( 1.3 ) Effective tax rate 29.9 % ( 468.8 )% 32.2 % The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities were as follows: As of August 31, (In millions) 2022 2021 Deferred tax assets: Accrued payroll and related liabilities $ 27.6 $ 23.7 Deferred revenue 6.7 7.4 Inventories and other 9.8 16.8 Maintenance and warranty accruals 3.2 2.5 Lease liability 12.4 8.5 Net operating losses 19.6 15.9 Investment, asset tax credits and other 1.5 1.4 80.8 76.2 Valuation allowance ( 9.9 ) ( 10.4 ) Deferred tax liabilities: Fixed assets ( 110.6 ) ( 106.1 ) Original issue discount ( 0.1 ) ( 17.1 ) Intangibles ( 5.3 ) ( 3.0 ) Right-of-use asset ( 11.9 ) ( 8.9 ) Other ( 11.7 ) ( 4.0 ) ( 139.5 ) ( 139.1 ) Net deferred tax liability $ ( 68.6 ) $ ( 73.3 ) As of August 31, 2022, the Company had $ 104.8 million of state net operating loss carryforwards that will begin to expire in fiscal 2026 , $ 1.2 million of state credit carryforwards that began to expire in 2022 , $ 33.5 million of foreign net operating loss carryforwards that began to expire in fiscal 2022 and $ 26.1 million of foreign net operating loss carryforwards that do not expire. The Company has placed a valuation allowance of $ 9.9 million against the deferred tax assets for which no benefit is anticipated, including those for loss and credit carryforwards not likely to be used before their expiration dates or where the possibility of utilization is remote. The net decrease in the total valuation allowance was approximately $ 0.5 million for the year ended August 31, 2022. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Year Ended August 31, (In millions) 2022 2021 2020 Unrecognized Tax Benefit – Opening Balance $ 1.6 $ 5.5 $ 1.6 Gross increases – tax positions in prior period — — 4.0 Gross decreases – tax positions in prior period ( 0.9 ) ( 3.6 ) — Settlements — — — Lapse of statute of limitations ( 0.3 ) ( 0.3 ) ( 0.1 ) Unrecognized Tax Benefit – Ending Balance $ 0.4 $ 1.6 $ 5.5 The Company is subject to taxation in the U.S. and in various states and foreign jurisdictions. The Company is effectively no longer subject to U.S. Federal examination for fiscal years ending before 2015, to state and local examinations before 2015, or to foreign examinations before 2017. Unrecognized tax benefits, excluding interest, at August 31, 2022 and 2021 were $ 0.4 million and $ 1.6 million, respectively which if recognized, would affect the effective tax rate. Accrued interest on unrecognized tax benefits as of August 31, 2022 and August 31, 2021 was $ 0.1 million and $ 0.4 million, respectively, and included a reduction of $ 0.3 million and $ 0.6 million during the period for changes in unrecognized tax benefits. The Company has no t accrued any penalties on the unrecognized tax benefits, and does not anticipate a significant decrease in unrecognized tax benefits or accrued interest during the next twelve months. Interest and penalties related to income taxes are classified as a component of income tax expense. Benefits from the realization of unrecognized tax benefits for deductible differences attributable to ordinary operations will be recognized as a reduction of income tax expense. |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 18 — Segment Information The Company operates in three reportable segments: Manufacturing; Maintenance Services; and Leasing & Management Services. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Performance is evaluated based on Earnings from operations. Corporate includes selling and administrative costs not directly related to goods and services and certain costs that are intertwined among segments due to our integrated business model. The Company does not allocate Interest and foreign exchange or Income tax benefit (expense) for either external or internal reporting purposes. Intersegment sales and transfers are valued as if the sales or transfers were to third parties. Related revenue and margin are eliminated in consolidation and therefore are not included in consolidated results in the Company’s Consolidated Financial Statements. In the first quarter of 2022 the Company renamed two of its reportable segments to more prominently display the nature of the customer solutions it provides and markets in which it operates. The new names of its reportable segments are Manufacturing (unchanged), Maintenance Services (previously Wheels, Repair & Parts), and Leasing & Management Services (previously Leasing & Services). The name changes have no impact on the organization’s reporting structure nor on financial information previously reported. Separately, effective September 1, 2021, the Company changed its measurement basis for allocating syndication revenue between the Manufacturing and Leasing & Management Services reportable segments. This change in measurement reflects the information currently used by management to assess the Company's operating performance in accordance with its refined leasing strategy and has no impact to the Company’s total consolidated revenue. Segment results for the prior periods have been recast to conform to the current period presentation. The information in the following table is derived directly from the segments’ internal financial reports used for corporate management purposes. For the year ended August 31, 2022: Revenue Earnings (loss) from operations (In millions) External Intersegment Total External Intersegment Total Manufacturing $ 2,476.6 $ 191.6 $ 2,668.2 $ 97.2 $ 11.9 $ 109.1 Maintenance Services 347.7 26.4 374.1 21.7 — 21.7 Leasing & Management Services 153.4 1.9 155.3 108.3 0.1 108.4 Eliminations — ( 219.9 ) ( 219.9 ) — ( 12.0 ) ( 12.0 ) Corporate — — — ( 109.2 ) — ( 109.2 ) $ 2,977.7 $ — $ 2,977.7 $ 118.0 $ — $ 118.0 For the year ended August 31, 2021: Revenue Earnings (loss) from operations (In millions) External Intersegment Total External Intersegment Total Manufacturing $ 1,311.1 $ 92.4 $ 1,403.5 $ 48.3 $ 6.9 $ 55.2 Maintenance Services 298.3 9.1 307.4 6.5 0.1 6.6 Leasing & Management Services 138.5 1.1 139.6 68.9 0.2 69.1 Eliminations — ( 102.6 ) ( 102.6 ) — ( 7.2 ) ( 7.2 ) Corporate — — — ( 82.7 ) — ( 82.7 ) $ 1,747.9 $ — $ 1,747.9 $ 41.0 $ — $ 41.0 For the year ended August 31, 2020: Revenue Earnings (loss) from operations (In millions) External Intersegment Total External Intersegment Total Manufacturing $ 2,309.5 $ 3.0 $ 2,312.5 $ 157.0 $ 0.1 $ 157.1 Maintenance Services 324.7 12.6 337.3 9.0 ( 0.9 ) 8.1 Leasing & Management Services 158.0 2.3 160.3 81.4 0.2 81.6 Eliminations — ( 17.9 ) ( 17.9 ) — 0.6 0.6 Corporate — — — ( 79.0 ) — ( 79.0 ) $ 2,792.2 $ — $ 2,792.2 $ 168.4 $ — $ 168.4 Year Ended August 31, (In millions) 2022 2021 2020 Assets: Manufacturing $ 1,853.9 $ 1,493.5 $ 1,301.7 Maintenance Services 284.8 260.9 271.9 Leasing & Management Services 1,152.2 949.4 739.0 Unallocated, including cash 560.6 686.9 861.2 $ 3,851.5 $ 3,390.7 $ 3,173.8 Depreciation and amortization: Manufacturing $ 61.7 $ 67.8 $ 78.0 Maintenance Services 10.7 12.0 12.6 Leasing & Management Services 29.6 20.9 19.3 $ 102.0 $ 100.7 $ 109.9 Capital expenditures: Manufacturing $ 48.3 $ 26.6 $ 48.2 Maintenance Services 9.2 8.6 11.7 Leasing & Management Services 323.2 103.8 7.0 $ 380.7 $ 139.0 $ 66.9 The following table summarizes selected geographic information. Year Ended August 31, (In millions) 2022 2021 2020 Revenue (1) : U.S. $ 2,452.1 $ 1,221.4 $ 2,018.7 Foreign 525.6 526.5 773.5 $ 2,977.7 $ 1,747.9 $ 2,792.2 Assets: U.S. $ 2,689.6 $ 2,506.1 $ 2,359.3 Mexico 948.4 656.6 590.8 Europe 213.5 228.0 223.7 $ 3,851.5 $ 3,390.7 $ 3,173.8 (1) Revenue is presented on the basis of geographic location of customers. Reconciliation of Earnings from operations to Earnings (loss) before income tax and earnings from unconsolidated affiliates: Year Ended August 31, (In millions) 2022 2021 2020 Earnings from operations $ 118.0 $ 41.0 $ 168.4 Interest and foreign exchange 57.4 43.3 43.6 Net loss on extinguishment of debt — 6.3 — Earnings (loss) before income tax and earnings $ 60.6 $ ( 8.6 ) $ 124.8 |
Customer Concentration
Customer Concentration | 12 Months Ended |
Aug. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | Note 19 — Customer Concentration Customer concentration is defined as a single customer that accounts for more than 10% of total revenues or accounts receivable. In 2022, revenue from three customers represented 16 %, 12 % and 11 % of total revenue. In 2021, revenue from two customers each represented 13 % of total revenue. In 2020, revenue from two customers represented 15 % and 11 % of total revenue. No other customers accounted for more than 10% of total revenues for the years ended August 31, 2022, 2021, or 2020. One customer had a balance that represented 12 % of the consolidated accounts receivable balance at August 31, 2022. No customer had a balance that individually equaled or exceeded 10% of accounts receivable at August 31, 2021. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Aug. 31, 2022 | |
Leases [Abstract] | |
Lease Commitments | Note 20 — Lease Commitments Lessor Equipment on operating leases is reported net of accumulated depreciation of $ 48.6 million, $ 34.4 million, and $ 33.4 million as of August 31, 2022, 2021, and 2020, respectively. Depreciation expense was $ 22.0 million, $ 13.8 million and $ 11.6 million as of August 31, 2022, 2021, and 2020 respectively. In addition, certain railcar equipment leased-in by the Company on operating leases is subleased to customers under non-cancelable operating leases with lease terms ranging from one to fourteen years . Operating lease rental revenues included in the Company’s Consolidated Statements of Income as of August 31, 2022, 2021, and 2020 was $ 66.8 million, $ 69.4 million and $ 38.7 million respectively, which included $ 18.1 million, $ 17.1 million, and $ 11.2 million respectively, of revenue as a result of daily, monthly or car hire utilization arrangements. Aggregate minimum future amounts receivable under all non-cancelable operating leases and subleases at August 31, 2022, will mature as follows: (In millions) 2023 $ 46.4 2024 37.7 2025 30.3 2026 26.6 2027 22.8 Thereafter 51.2 $ 215.0 Lessee The Company leases railcars, real estate, and certain equipment under operating and, to a lesser extent, finance lease arrangements. As of and for the twelve months ended August 31, 2022, 2021, and 2020, finance leases were not a material component of the Company's lease portfolio. The Company’s real estate and equipment leases have remaining lease terms ranging from less than one year to 76 years , with some including options to extend up to 15 years . The Company recognizes a lease liability and corresponding right-of-use (ROU) asset based on the present value of lease payments. To determine the present value of lease payments, as most of its leases do not provide a readily determinable implicit rate, the Company’s incremental borrowing rate is used to discount the lease payments based on information available at lease commencement date. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when estimating its incremental borrowing rate. The components of operating lease costs were as follows: Twelve Months Ended August 31, (In millions) 2022 2021 2020 Operating lease expense $ 10.7 $ 13.2 $ 15.3 Short-term lease expense 6.0 5.3 8.3 Total $ 16.7 $ 18.5 $ 23.6 Aggregate minimum future amounts payable under operating leases having initial or remaining non-cancelable terms at August 31, 2022 will mature as follows: (In millions) 2023 $ 12.9 2024 11.1 2025 8.4 2026 7.3 2027 4.6 Thereafter 17.4 Total lease payments $ 61.7 Less: Imputed interest ( 5.3 ) Total lease obligations $ 56.4 The table below presents additional information related to the Company’s leases: Weighted average remaining lease term Operating leases 11.4 years Weighted average discount rate Operating leases 2.3 % Supplemental cash flow information related to leases were as follows: (In millions) Twelve months ended August 31, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 11.4 ROU assets obtained in exchange for new operating lease liabilities $ 24.7 ROU assets disposed of for lease terminations $ — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 21 — Commitments and Contingencies Portland Harbor Superfund Site The Company’s Portland, Oregon manufacturing facility (the Portland Property) is located adjacent to the Willamette River. In December 2000, the U.S. Environmental Protection Agency (EPA) classified portions of the Willamette River bed known as the Portland Harbor, including the portion fronting the Company’s manufacturing facility, as a federal "National Priority List" or "Superfund" site due to sediment contamination (the Portland Harbor Site). The Company and more than 140 other parties have received a "General Notice" of potential liability from the EPA relating to the Portland Harbor Site. The letter advised the Company that it may be liable for the costs of investigation and remediation (which liability may be joint and several with other potentially responsible parties) as well as for natural resource damages resulting from releases of hazardous substances to the site. Ten private and public entities, including the Company (the Lower Willamette Group or LWG), signed an Administrative Order on Consent (AOC) to perform a remedial investigation/feasibility study (RI/FS) of the Portland Harbor Site under EPA oversight, and several additional entities did not sign such consent, but nevertheless contributed financially to the effort. The EPA-mandated RI/FS was produced by the LWG and cost over $ 110 million during a 17-year period. The Company bore a percentage of the total costs incurred by the LWG in connection with the investigation. The Company’s aggregate expenditure during the 17-year period was not material. Some or all of any such outlay may be recoverable from other responsible parties. The EPA issued its Record of Decision (ROD) for the Portland Harbor Site on January 6, 2017 and accordingly on October 26, 2017, the AOC was terminated. Separate from the process described above, which focused on the type of remediation to be performed at the Portland Harbor Site and the schedule for such remediation, 83 parties, including the State of Oregon and the federal government, entered into a non-judicial mediation process to try to allocate costs associated with remediation of the Portland Harbor Site. Approximately 110 additional parties signed tolling agreements related to such allocations. On April 23, 2009, the Company and the other AOC signatories filed suit against 69 other parties due to a possible limitations period for some such claims; Arkema Inc. et al v. A & C Foundry Products, Inc. et al , U.S. District Court, District of Oregon, Case #3:09-cv-453-PK. All but 12 of these parties elected to sign tolling agreements and be dismissed without prejudice, and the case has been stayed by the court until January 14, 2025. The EPA's January 6, 2017 ROD identifies a clean-up remedy that the EPA estimates will take 13 years of active remediation, followed by 30 years of monitoring with an estimated undiscounted cost of $ 1.7 billion. The EPA typically expects its cost estimates to be accurate within a range of - 30 % to + 50 %, but this ROD states that changes in costs are likely to occur. The EPA has identified 15 Sediment Decision Units within the ROD cleanup area. One of the units, RM9W, includes the nearshore area of the river sediments offshore of the Portland Property as well as downstream of the facility. It also includes a portion of the Company’s riverbank. The ROD does not break down total remediation costs by Sediment Decision Unit. The EPA requested that potentially responsible parties enter AOCs during 2019 agreeing to conduct remedial design studies. Some parties have signed AOCs, including one party with respect to RM9W which includes the area offshore of the Portland Property. The Company has not signed an AOC in connection with remedial design, but will assist in conducting or funding a portion of the RM9W remedial design. The ROD does not address responsibility for the costs of clean-up, nor does it allocate such costs among the potentially responsible parties. Responsibility for funding and implementing the EPA's selected cleanup remedy will be determined at an unspecified later date. Based on the investigation to date, the Company believes that it did not contribute in any material way to contaminants of concern in the river sediments or the damage of natural resources in the Portland Harbor Site and that the damage in the area of the Portland Harbor Site adjacent to its property precedes the Company’s ownership of the Portland Property. Because these environmental investigations are still underway, sufficient information is currently not available to determine the Company’s liability, if any, for the cost of any required remediation or restoration of the Portland Harbor Site or to estimate a range of potential loss. Based on the results of the pending investigations and future assessments of natural resource damages, the Company may be required to incur costs associated with additional phases of investigation or remedial action, and may be liable for damages to natural resources. In addition, the Company may be required to perform periodic maintenance dredging in order to continue to launch vessels from its launch ways in Portland, Oregon, on the Willamette River, and the river's classification as a Superfund site could result in some limitations on future dredging and launch activities. Any of these matters could adversely affect the Company’s business and Consolidated Financial Statements, or the value of the Portland Property. On January 30, 2017 the Confederated Tribes and Bands of Yakama Nation sued 33 parties including the Company as well as the U.S. and the State of Oregon for costs it incurred in assessing alleged natural resource damages to the Columbia River from contaminants deposited in Portland Harbor. Confederated Tribes and Bands of the Yakama Nation v. Air Liquide America Corp., et al., U.S. Court for the District of Oregon Case No. 3i17-CV-00164-SB. The complaint does not specify the amount of damages the plaintiff will seek. The case has been stayed until January 14, 2025. Oregon Department of Environmental Quality (DEQ) Regulation of Portland Manufacturing Operations The Company entered into a Voluntary Cleanup Agreement with the Oregon Department of Environmental Quality (DEQ) in which the Company agreed to conduct an investigation of whether, and to what extent, past or present operations at the Portland Property may have released hazardous substances into the environment. The Company has also signed an Order on Consent with the DEQ to finalize the investigation of potential onsite sources of contamination that may have a release pathway to the Willamette River. Interim precautionary measures are also required in the order and the Company is discussing with the DEQ potential remedial actions which may be required. The Company’s aggregate expenditure has not been material, however it could incur significant expenses for remediation. Some or all of any such outlay may be recoverable from other responsible parties. Other Litigation, Commitments and Contingencies Following conclusion of an investigation, the Company reached a preliminary agreement in principle (“Proposed Settlement”) with the Securities and Exchange Commission (“SEC”) staff pursuant to which the Company would consent, without admitting or denying the SEC’s allegations, to the entry of an administrative order to cease-and-desist from violating certain federal securities laws and would pay a civil penalty of $ 1 million. The Proposed Settlement relates to disclosures of executive compensation perquisites and related party transactions in the Company’s proxy statements filed with the SEC in connection with annual meetings of shareholders. None of the violations included in the Proposed Settlement include an allegation of intentional wrongdoing by the Company. The Proposed Settlement with the SEC staff is subject to approval by the Commissioners of the SEC. There can be no assurance that the Proposed Settlement will be approved by the Commissioners of the SEC upon the terms as currently proposed or at all. In consultation with outside advisors, the Company has determined that no amendment to the Company’s previously filed periodic reports, and no restatement of the previously issued financial statements of the Company for the applicable periods, would be required in connection with the matters described above. The Company believes the Proposed Settlement is in the best interest of the Company and its shareholders. From time to time, Greenbrier is involved as a defendant in litigation in the ordinary course of business, the outcomes of which cannot be predicted with certainty. While the ultimate outcome of such legal proceedings cannot be determined at this time, the Company believes that the resolution of pending litigation will not have a material adverse effect on the Company's Consolidated Financial Statements. As of August 31, 2022, the Company had outstanding letters of credit aggregating to $ 6.9 million associated with performance guarantees, facility leases and workers compensation insurance. |
Fair Value Measures
Fair Value Measures | 12 Months Ended |
Aug. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures | Note 22 – Fair Value Measures Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value, for this disclosure, is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy which prioritizes the inputs used in measuring a fair value as follows: Level 1 - observable inputs such as unadjusted quoted prices in active markets for identical instruments; Level 2 - inputs, other than the quoted market prices in active markets for similar instruments, which are observable, either directly or indirectly; and Level 3 - unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2022 are: (In millions) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 21.4 $ — $ 21.4 $ — Nonqualified savings plan investments 40.3 40.3 — — Cash equivalents 119.4 119.4 — — $ 181.1 $ 159.7 $ 21.4 $ — Liabilities: Derivative financial instruments $ 3.0 $ — $ 3.0 $ — Assets and liabilities measured at fair value on a recurring basis as of August 31, 2021 are: (In millions) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 0.1 $ — $ 0.1 $ — Nonqualified savings plan investments 47.7 47.7 — — Cash equivalents 228.9 228.9 — — $ 276.7 $ 276.6 $ 0 $ — Liabilities: Derivative financial instruments $ 10.4 $ — $ 10.4 $ — (1) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 13 - Derivative Instruments for further discussion. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Aug. 31, 2022 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 23 – Fair Value of Financial Instruments The estimated fair values of financial instruments and the methods and assumptions used to estimate such fair values are as follows: (In millions) Carrying 1 Estimated Notes payable as of August 31, 2022 $ 1,289.0 $ 1,231.2 Notes payable as of August 31, 2021 $ 913.8 $ 935.9 1 Carrying amount disclosed in this table excludes debt discount and debt issuance costs. The carrying amount of cash and cash equivalents, accounts and notes receivable, revolving notes and accounts payable and accrued liabilities is a reasonable estimate of fair value of these financial instruments. Estimated rates currently available to the Company for debt with similar terms and remaining maturities and current market data are used to estimate the fair value of notes payable. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2022 | |
Principles of consolidation | Principles of consolidation - The financial statements include the accounts of the Company and its subsidiaries in which it has a controlling interest. All intercompany transactions and balances are eliminated upon consolidation. |
Unclassified balance sheet | Unclassified balance sheet - The balance sheets of the Company are presented in an unclassified format as a result of significant leasing activities for which the current or non-current distinction is not relevant. In addition, the activities of the Manufacturing; Maintenance Services; and Leasing & Management Services segments are so intertwined that in the opinion of management, any attempt to separate the respective balance sheet categories would not be meaningful and may lead to the development of misleading conclusions by the reader. |
Foreign currency translation | Foreign currency translation - Certain operations outside the U.S. prepare financial statements in currencies other than the U.S. Dollar. Revenues and expenses are translated at monthly average exchange rates during the year, while assets and liabilities are translated at year-end exchange rates. Translation adjustments are accumulated as a separate component of equity in other comprehensive income (loss). The net foreign currency translation adjustment balances were $ 57.4 million, $ 35.8 million and $ 39.8 million as of August 31, 2022, 2021 and 2020, respectively |
Cash and cash equivalents | Cash and cash equivalents - Cash may temporarily be invested primarily in money market funds. All highly-liquid investments with a maturity of three months or less at the date of acquisition are considered cash equivalents. |
Restricted cash | Restricted cash - Restricted cash relates to amounts held to support a target minimum rate of return on certain agreements, terms of our credit agreement, and a pass through account for activity related to management services provided for certain third party customers. |
Accounts receivable | Accounts receivable - Accounts receivable consists of receivables from customers and receivables from related parties (see Note 16 - Related Party Transactions) and is stated net of allowance for doubtful accounts of $ 2.3 million and $ 2.4 million as of August 31, 2022 and 2021, respectively. As of August 31, (In millions) 2022 2021 2020 Allowance for doubtful accounts Balance at beginning of period $ 2.4 $ 2.7 $ 2.2 Additions, net of reversals 0.4 0.6 1.7 Usage ( 0.3 ) ( 0.8 ) ( 1.3 ) Currency translation effect ( 0.2 ) ( 0.1 ) 0.1 Balance at end of period $ 2.3 $ 2.4 $ 2.7 |
Inventories | Inventories - Inventories are valued at the lower of cost or net realizable value using the first-in first-out method. Work-in-process includes material, labor and overhead. Finished goods includes completed wheels, parts and railcars in transit or not on lease. |
Leased railcars for syndication | Leased railcars for syndication - Leased railcars for syndication consist of newly-built railcars manufactured at one of the Company’s facilities or railcars purchased from third parties, which have been placed on lease to a customer and which the Company intends to sell to an investor with the lease attached. These railcars are generally anticipated to be sold within six months of delivery of the last railcar in a group or six months from when the Company acquires the railcar from a third party and are typically not depreciated during that period as the Company does not believe any economic value of a railcar is lost in the first six months. In the event the railcars are not sold in the first six months, the railcars are either held in Leased railcars for syndication and are depreciated or are transferred to Equipment on operating leases and are depreciated. |
Equipment on operating leases, net | Equipment on operating leases, net - Equipment on operating leases is stated net of accumulated depreciation. Depreciation to estimated salvage value is provided on the straight-line method over the estimated useful lives of up to forty years . Management periodically reviews useful lives and salvage value estimates based on current scrap prices and what the Company expects to receive upon disposal. |
Investment in unconsolidated affiliates | Investment in unconsolidated affiliates - Investment in unconsolidated affiliates includes the Company’s interests in certain investees which are accounted for under the equity method of accounting as the Company has determined that the investment provides the Company with the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company has an ownership interest in the voting stock of the investee of at least 20%. Several factors are considered in determining whether the equity method of accounting is appropriate including the relative ownership interests and governance rights of the joint venture partners. As of August 31, 2022, selected investments in unconsolidated affiliates include the Company’s 60 % interest in Greenbrier-Maxion, 29.5 % interest in Amsted-Maxion Cruzeiro (which owns 40 % of Greenbrier-Maxion), 40 % interest in Greenbrier Railcar Funding I LLC and 41.9 % interest in Axis, LLC. |
Property, plant and equipment | Property, plant and equipment - Property, plant and equipment is stated at cost, net of accumulated depreciation. Depreciation is provided on the straight-line method over estimated useful lives which primarily are as follows: Depreciable Life Buildings and improvements 10 - 30 years Machinery and equipment 3 - 20 years Other 3 - 7 years |
Intangible and other assets, net | Intangible and other assets, net - Intangible assets are recorded when a portion of the purchase price of an acquisition is allocated to assets such as customer contracts and relationships and trade names. Intangible assets with finite lives are amortized using the straight line method over their estimated useful lives which are up to 20 years. Other assets include nonqualified savings plan investments, and revolving note fees which are capitalized and amortized as interest expense over the life of the related borrowings. |
Impairment of long-lived assets | Impairment of long-lived assets - When changes in circumstances indicate the carrying amount of certain long-lived asset groups may not be recoverable, the assets are evaluated for impairment. If the forecasted undiscounted future cash flows are less than the carrying amount of the assets, an impairment charge to reduce the carrying value of the assets to estimated realizable value is recognized in the current period. No impairment of long-lived assets was recorded in the years ended August 31, 2022, 2021 and 2020. |
Goodwill | Goodwill - Goodwill is recorded when the purchase price of an acquisition exceeds the fair market value of the net assets acquired. Goodwill is not amortized and is tested for impairment at least annually and more frequently if indicators of impairment arise. The Company reviews goodwill for impairment annually using either a qualitative assessment or a quantitative goodwill impairment test. If the qualitative assessment is selected and the Company determines that fair value of each reporting unit more likely than not exceeds its carrying value, no further assessment is necessary. For reporting units where the Company performs the quantitative goodwill impairment test, an impairment loss is recorded to the extent that the reporting unit’s carrying amount exceeds the reporting unit’s fair value. An impairment loss cannot exceed the total amount of goodwill allocated to the reporting unit. See Note 7 – Goodwill for additional information. |
Warranty accruals | Warranty accruals - Warranty costs are estimated and charged to operations to cover a defined warranty period. The estimated warranty cost is based on history of warranty claims for each particular product type. For new product types without a warranty history, preliminary estimates are based on historical information for similar product types. The warranty accruals, included in Accounts payable and accrued liabilities, are reviewed periodically and updated based on warranty trends. |
Income taxes | Income taxes - The asset and liability method is used to account for income taxes. Deferred income taxes are provided for the temporary effects of differences between assets and liabilities recognized for financial statement and income tax reporting purposes. Valuation allowances reduce deferred tax assets to an amount that will more likely than not be realized. The Company recognizes liabilities for uncertain tax positions based on whether evidence indicates that it is more likely than not that the position will be sustained on audit. The Company reevaluates these uncertain tax positions on a quarterly basis. Changes in tax law or court interpretations may result in the recognition of a tax benefit or an additional charge to the tax provision. |
Deferred revenue | Deferred revenue - Cash payments received prior to meeting revenue recognition criteria are recorded in Deferred revenue. Amounts are reclassified out of Deferred revenue once the revenue recognition criteria have been met. |
Noncontrolling interest and Contingently redeemable noncontrolling interest | Noncontrolling interest and Contingently redeemable noncontrolling interest - The Company has a joint venture with Grupo Industrial Monclova, S.A. (GIMSA) that manufactures new railroad freight cars for the North American marketplace at GIMSA’s existing manufacturing facility located in Frontera, Mexico. Each party owns a 50 % interest in the joint venture. The financial results of this operation are consolidated for financial reporting purposes as the Company maintains a controlling interest as evidenced by the right to appoint the majority of the Board of Directors, control over accounting, financing, marketing and engineering and approval and design of products. The noncontrolling interest related to the partner’s 50 % interest in the joint venture is included in Noncontrolling interest in the equity section of the Company’s Consolidated Balance Sheet. Greenbrier-Astra Rail was formed in 2017 between the Company’s existing European operations headquartered in Swidnica, Poland and Astra Rail, based in Arad, Romania. Greenbrier-Astra Rail is controlled by the Company with an approximate 75 % interest. Astra Rail also received a put option to sell its entire noncontrolling interest to Greenbrier at an exercise price equal to the higher of fair value or a defined EBITDA multiple as measured on the exercise date. During 2022, the option was extended to be exercisable 30 business days prior to and up until June 1, 2026. The Company consolidates Greenbrier-Astra Rail for financial reporting purposes and includes the noncontrolling interest in the mezzanine section of the Consolidated Balance Sheet in Contingently redeemable noncontrolling interest. The carrying value of the noncontrolling interest cannot be less than the maximum redemption amount, which is the amount Greenbrier will settle the put option for if exercised. Adjustments to reconcile the carrying value to the maximum redemption amount are recorded to retained earnings. In August 2018, Greenbrier-Astra Rail entered into an agreement to take an approximately 68 % ownership stake in Rayvag, a railcar manufacturing company based in Adana, Turkey. Rayvag is controlled by the Company. The Company consolidates Rayvag for financial reporting purposes. The noncontrolling interest related to the partner’s interest is included in Noncontrolling interest in the equity section of the Company’s Consolidated Balance Sheet. Net earnings attributable to noncontrolling interest on the Company’s Consolidated Statement of Income represents the Company’s partners’ share of results from operations. |
Accumulated other comprehensive loss | Accumulated other comprehensive loss – Accumulated other comprehensive loss, net of tax as appropriate, consisted of the following: (In millions) Unrealized Foreign Other Accumulated Balance, August 31, 2021 $ ( 7.4 ) $ ( 35.8 ) $ ( 0.5 ) $ ( 43.7 ) Other comprehensive income (loss) before reclassifications 15.7 ( 21.6 ) ( 0.7 ) $ ( 6.6 ) Amounts reclassified from accumulated other 4.7 — — $ 4.7 Balance, August 31, 2022 $ 13.0 $ ( 57.4 ) $ ( 1.2 ) $ ( 45.6 ) The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with the financial statement caption, were as follows: Year Ended August 31, (In millions) 2022 2021 Financial Statement Caption (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 1.2 $ 1.4 Revenue and Cost of revenue Interest rate swap contracts 4.9 5.3 Interest and foreign exchange 6.1 6.7 Total before tax ( 1.4 ) ( 1.7 ) Tax expense $ 4.7 $ 5.0 Net of tax |
Revenue recognition | Revenue recognition – The Company measures revenue at the amounts that reflect the consideration to which it expects to be entitled in exchange for transferring control of goods and services to customers. The Company recognizes revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. Payment terms vary by segment and product type and are generally due within normal commercial terms. The Company’s contracts with customers may include multiple performance obligations (e.g. railcars, maintenance, management services, etc.). For such arrangements, the Company allocates revenues to each performance obligation based on its relative standalone selling price. The Company has disaggregated revenue from contracts with customers into categories which describe the principal activities from which it generates revenues. Manufacturing Railcars are manufactured in accordance with contracts with customers. The Company recognizes revenue upon its customers’ acceptance of the completed railcars at a specified delivery point. From time to time, the Company enters into multi-year supply agreements. Each railcar delivery is considered a distinct performance obligation, such that the amounts that are recognized as revenue following railcar delivery are generally not subject to change. The Company typically recognizes marine vessel manufacturing revenue over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts the Company’s performance in completing the construction of the marine vessel for the customer. When estimates of total costs to be incurred on a contract exceed total revenue, the expected loss is recorded in the period in which the loss is determined. Maintenance Services The Company operates a network of facilities in North America that provide complete wheelset reconditioning and maintenance services. Wheels revenue is recognized when wheelsets are shipped to the customer or when consumed by customers in the case of consignment arrangements. Parts revenue is recognized upon shipment of the parts to the customers. Maintenance revenue is typically recognized over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts the Company’s performance in servicing the railcars for the customer. Maintenance services are typically completed in less than 90 days. Leasing & Management Services The Company owns a fleet of new and used railcars which are leased to third-party customers. Lease revenue is recognized over the lease-term in the period in which it is earned. Syndication transactions represent new and used railcars which have been placed on lease to a customer and which the Company sells to an investor with the lease attached. At the time of such sale, revenue and cost of revenue is allocated between the Manufacturing segment and Leasing & Management Services segment based on the relative standalone selling price of the product and services provided. Revenue and cost of revenue associated with railcars which were obtained from a third-party with the intent to resell them and subsequently sold, are recognized in the Leasing & Management Services segment. The Company enters into multi-year contracts to provide management and maintenance services to customers for which revenue is generally recognized on a straight-line basis over the contract term as a stand-ready obligation. Costs to fulfill these contracts are recognized as incurred. |
Interest and foreign exchange | Interest and foreign exchange - Interest and foreign exchange includes foreign exchange transaction gains and losses, amortization of debt issuance costs, and external interest expense. Year Ended August 31, (In millions) 2022 2021 2020 Interest and foreign exchange: Interest and other expense $ 55.7 $ 44.7 $ 42.4 Foreign exchange (gain) loss 1.7 ( 1.4 ) 1.2 $ 57.4 $ 43.3 $ 43.6 |
Research and development | Research and development - Research and development costs are expensed as incurred. Research and development costs incurred for new product development during the years ended August 31, 2022, 2021 and 2020 were $ 5.4 million, $ 6.3 million and $ 5.8 million, respectively, included in Selling and administrative expenses. |
Net earnings per share | Net earnings per share - Basic earnings per common share (EPS) is calculated using weighted average basic common shares outstanding, which include restricted stock grants and restricted stock units that are considered participating securities when the Company is in a net earnings position. Diluted EPS is calculated using the if-converted method, associated with shares underlying the 2024 and 2028 2.875 % Convertible notes, and the treasury stock method associated with restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria. |
Stock-based compensation | Stock-based compensation – The value of stock-based compensation awards is amortized as compensation expense from the date of grant through the earlier of the vesting period or in some instances the recipient’s eligible retirement date. Stock based compensation expense consists of restricted stock units and restricted stock awards. The fair value of awards is measured using the number of shares granted multiplied by the closing share price on the grant date. Stock based compensation expense for the years ended August 31, 2022, 2021 and 2020 was $ 15.5 million, $ 14.7 million and $ 9.0 million, respectively and was recorded in Selling and administrative and Cost of revenue on the Consolidated Statements of Income. Restricted stock units and restricted stock awards are accounted for as equity based awards (see Note 14 - Equity). |
Management estimates | Management estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires judgment on the part of management to arrive at estimates and assumptions on matters that are inherently uncertain. These estimates may affect the amount of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes and disclosure of contingent assets and liabilities within the financial statements. Estimates and assumptions are periodically evaluated and may be adjusted in future periods. Actual results could differ from those estimates. |
Reclassifications | Reclassifications - Certain immaterial reclassifications have been made to the accompanying prior year Consolidated Financial Statements to conform to the current year presentation. |
Initial Adoption of Accounting Policies | Initial Adoption of Accounting Policies Lease accounting On September 1, 2019 , the Company adopted Accounting Standards Update 2016-02, Leases and related amendments (Topic 842). Upon adoption, the Company recorded a cumulative-effect adjustment of $ 4.4 million as an increase to retained earnings. Under the short term lease recognition exemption, the Company does not recognize ROU assets or lease liabilities for qualifying leases with terms of less than twelve months. The Company does not separate lease and non-lease components. The Company utilizes both Topic 842 and Accounting Standards Codification 606, Revenue from Contracts with Customers (Topic 606) when evaluating retained risk of services and other performance obligations in conjunction with selling railcars with a lease attached as part of the syndication model. Derivatives and Hedging In August 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). The Company adopted this guidance effective September 1, 2019 and it did not have a material impact on its consolidated financial statements. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued Accounting Standard Update 2016-13, Financial Instruments – Credit Losses (ASU 2016-13). The Company adopted this guidance using a modified retrospective approach through a cumulative effect adjustment, which decreased opening retained earnings by $ 0.5 million on September 1, 2020. Convertible Instruments and Contracts in an Entity’s Own Equity In August 2020, the FASB issued Accounting Standard Update 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for certain convertible instruments, amends guidance on derivative scope exceptions for contracts in an entity’s own equity and modifies the guidance on diluted EPS calculations as a result of these changes. The Company adopted this guidance effective September 1, 2021 on a modified retrospective basis and recorded a cumulative effect adjustment to increase Retained earnings by $ 5 million. The impact of adoption also resulted in a reduction to Additional paid in capital of approximately $ 59 million related to amounts attributable to conversion options that had previously been recorded in equity and the associated derecognition of related deferred tax liabilities of $ 17 million. Additionally, the Company recorded an increase to its convertible notes balance by an aggregate amount of approximately $ 71 million as a result of derecognizing the debt discount. The adoption of this guidance also decreased the amount of non-cash interest expense to be recognized in future periods as a result of eliminating the discount associated with the equity component. The Company did not incur any impact to liquidity or cash flows. Beginning September 1, 2021, when calculating net earnings attributable to Greenbrier per share of common stock, the Company uses the if-converted method as required under ASU 2020-06 to determine the dilutive effect of its convertible notes. Simplification of Accounting for Income Taxes In December 2019, the FASB issued Accounting Standard Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 for: recognizing deferred taxes for investments, performing intra-period allocations and calculating taxes in interim periods. The ASU also improves consistent application of GAAP for other areas of Topic 740 by clarifying and amending existing guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The Company adopted this guidance September 1, 2021 with no impact to the Company's consolidated financial statements. The ongoing application of ASU 2019-12 is not expected to materially impact the Company's consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting , which provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The elective amendments provide expedients to contract modification, affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by this guidance apply only to contracts, hedging relationships, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. This guidance is not applicable to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The guidance can be applied immediately through December 31, 2022. During the fourth quarter of fiscal year 2022 , the Company adopted the optional relief guidance provided under this ASU after modifying certain debt to update the reference rate from LIBOR to SOFR. This caused a temporary mismatch in our interest rate swap and debt for a period of time. The application of this expedient preserves the presentation of the derivatives consistent with past presentation. The Company will continue to assess the impact of the guidance and may apply other elections as applicable going forward. |
Foreign Exchange Contracts | |
Derivatives | Forward exchange contracts - Foreign operations give rise to risks from fluctuations in foreign currency exchange rates. Forward exchange contracts with established financial institutions are used to hedge a portion of such risk. Realized and unrealized gains and losses on effective hedges are deferred in other comprehensive income (loss) and recognized in earnings concurrent with the hedged transaction or when the occurrence of the hedged transaction is no longer considered probable. Ineffectiveness is measured and any gain or loss is recognized in foreign exchange (gain) loss. Even though forward exchange contracts are entered into to mitigate the impact of currency fluctuations, certain exposure remains, which may affect operating results. In addition, there is risk for counterparty non-performance. |
Interest rate swap contracts | |
Derivatives | Interest rate instruments - Interest rate swap agreements are used to reduce the impact of changes in interest rates on certain debt. The net cash amounts paid or received under the agreements are recognized as an adjustment to interest expense. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Allowance for Doubtful Accounts | Accounts receivable - Accounts receivable consists of receivables from customers and receivables from related parties (see Note 16 - Related Party Transactions) and is stated net of allowance for doubtful accounts of $ 2.3 million and $ 2.4 million as of August 31, 2022 and 2021, respectively. As of August 31, (In millions) 2022 2021 2020 Allowance for doubtful accounts Balance at beginning of period $ 2.4 $ 2.7 $ 2.2 Additions, net of reversals 0.4 0.6 1.7 Usage ( 0.3 ) ( 0.8 ) ( 1.3 ) Currency translation effect ( 0.2 ) ( 0.1 ) 0.1 Balance at end of period $ 2.3 $ 2.4 $ 2.7 |
Estimated Useful Lives | Depreciation is provided on the straight-line method over estimated useful lives which primarily are as follows: Depreciable Life Buildings and improvements 10 - 30 years Machinery and equipment 3 - 20 years Other 3 - 7 years |
Components of Accumulated Other Comprehensive Loss, Net of Tax | Accumulated other comprehensive loss – Accumulated other comprehensive loss, net of tax as appropriate, consisted of the following: (In millions) Unrealized Foreign Other Accumulated Balance, August 31, 2021 $ ( 7.4 ) $ ( 35.8 ) $ ( 0.5 ) $ ( 43.7 ) Other comprehensive income (loss) before reclassifications 15.7 ( 21.6 ) ( 0.7 ) $ ( 6.6 ) Amounts reclassified from accumulated other 4.7 — — $ 4.7 Balance, August 31, 2022 $ 13.0 $ ( 57.4 ) $ ( 1.2 ) $ ( 45.6 ) |
Amounts Reclassified out of Accumulated Other Comprehensive Loss | The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with the financial statement caption, were as follows: Year Ended August 31, (In millions) 2022 2021 Financial Statement Caption (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 1.2 $ 1.4 Revenue and Cost of revenue Interest rate swap contracts 4.9 5.3 Interest and foreign exchange 6.1 6.7 Total before tax ( 1.4 ) ( 1.7 ) Tax expense $ 4.7 $ 5.0 Net of tax |
Interest and Foreign Exchange | Interest and foreign exchange - Interest and foreign exchange includes foreign exchange transaction gains and losses, amortization of debt issuance costs, and external interest expense. Year Ended August 31, (In millions) 2022 2021 2020 Interest and foreign exchange: Interest and other expense $ 55.7 $ 44.7 $ 42.4 Foreign exchange (gain) loss 1.7 ( 1.4 ) 1.2 $ 57.4 $ 43.3 $ 43.6 |
Asset Backed Securities (Tables
Asset Backed Securities (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Asset Backed Securities [Abstract] | |
Summary of Net Carrying Amount of Assets Transferred and Related Debt | The following table summarizes the Issuer's net carrying amount of the assets transferred and the related debt. As of August 31, (In millions) 2022 Assets Restricted cash $ 6.9 Equipment on operating leases, net 401.8 Liabilities Notes payable, net $ 312.8 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract Balances | The opening and closing balances of the Company’s contract balances are as follows: (In millions) Balance sheet August 31, 2022 August 31, 2021 $ change Contract assets Accounts receivable, net $ 13.0 $ 5.9 $ 7.1 Contract assets Inventories $ 6.0 $ 6.7 $ ( 0.7 ) Contract liabilities 1 Deferred revenue $ 30.5 $ 36.4 $ ( 5.9 ) 1 Contract liabilities balance includes deferred revenue within the scope of Topic 606. |
Summary of Estimated Revenue Related to Performance Obligations Wholly or Partially Unsatisfied | The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods. (In millions) August 31, 2022 Revenue type: Manufacturing – Railcar sales $ 2,634.0 Manufacturing – Marine $ 30.9 Manufacturing – Conversions $ 183.6 Services $ 123.8 Other $ 12.3 Manufacturing – Railcars intended for syndication 1 $ 623.7 1 Not a performance obligation as defined in Topic 606 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | As of August 31, (In millions) 2022 2021 Manufacturing supplies and raw materials $ 570.2 $ 352.8 Work-in-process 183.3 167.3 Finished goods 75.9 73.4 Excess and obsolete adjustment ( 14.1 ) ( 19.9 ) $ 815.3 $ 573.6 |
Inventory Valuation | As of August 31, (In millions) 2022 2021 2020 Excess and obsolete adjustment Balance at beginning of period $ 19.9 $ 24.2 $ 9.5 Charge to cost of revenue 1.5 0.8 18.0 Disposition of inventory ( 6.9 ) ( 5.0 ) ( 3.6 ) Currency translation effect ( 0.4 ) ( 0.1 ) 0.3 Balance at end of period $ 14.1 $ 19.9 $ 24.2 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | As of August 31, (In millions) 2022 2021 Land and improvements $ 88.4 $ 94.6 Machinery and equipment 623.7 609.8 Buildings and improvements 367.1 379.1 Construction in progress 55.3 50.0 Other 107.4 92.8 1,241.9 1,226.3 Accumulated depreciation ( 596.7 ) ( 556.1 ) $ 645.2 $ 670.2 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Value of Goodwill | Changes in the carrying value of goodwill are as follows: (In millions) Manufacturing Maintenance Services Leasing & Management Services Total Balance August 31, 2021 $ 88.8 $ 43.3 $ — $ 132.1 Translation and other adjustments ( 4.5 ) ( 0.3 ) — ( 4.8 ) Balance August 31, 2022 $ 84.3 $ 43.0 $ — $ 127.3 (In millions) Goodwill Gross goodwill balance before accumulated goodwill impairment losses and other $ 290.1 Accumulated goodwill impairment losses ( 138.2 ) Accumulated other reductions ( 24.6 ) Balance August 31, 2022 $ 127.3 |
Intangibles and Other Assets,_2
Intangibles and Other Assets, net (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identifiable Intangible and Other Assets | The following table summarizes the Company’s identifiable intangible and other assets balance: As of August 31, (In millions) 2022 2021 Intangible assets subject to amortization: Customer and supplier relationships $ 87.5 $ 89.8 Accumulated amortization ( 66.1 ) ( 64.1 ) Other intangible assets 42.4 40.3 Accumulated amortization ( 16.5 ) ( 13.0 ) 47.3 53.0 Intangible assets not subject to amortization 2.4 2.4 Prepaid and other assets 32.4 26.7 Operating lease ROU assets 54.2 39.8 Nonqualified savings plan investments 40.3 47.7 Debt issuance costs, net 8.7 8.6 Assets held for sale 3.8 5.4 $ 189.1 $ 183.6 |
Revolving Notes (Tables)
Revolving Notes (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Credit Facility Balances | As of August 31, (In millions) 2022 2021 Credit facility balances: North America $ 160.0 $ 160.0 GBX Leasing — 147.0 Europe 51.6 50.2 Mexico 85.0 15.0 Total Revolving notes $ 296.6 $ 372.2 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | As of August 31, (In millions) 2022 2021 Trade payables $ 401.5 $ 265.1 Other accrued liabilities 102.8 109.1 Operating lease liabilities 56.4 42.6 Accrued payroll and related liabilities 140.4 125.1 Accrued warranty 24.0 27.9 $ 725.1 $ 569.8 |
Warranty Accrual (Tables)
Warranty Accrual (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Warranty Accrual Activity | As of August 31, (In millions) 2022 2021 2020 Balance at beginning of period $ 27.9 $ 45.2 $ 46.7 Charged to cost of revenue 5.0 ( 8.0 ) 4.0 Payments ( 7.9 ) ( 9.2 ) ( 6.2 ) Currency translation effect ( 1.0 ) ( 0.1 ) 0.7 Balance at end of period $ 24.0 $ 27.9 $ 45.2 |
Notes Payable, net (Tables)
Notes Payable, net (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable, Net | As of August 31, (In millions) 2022 2021 Term loans $ 867.5 $ 492.3 2.875 % Convertible senior notes, due 2028 373.8 373.8 2.875 % Convertible senior notes, due 2024 47.7 47.7 Other notes payable 1.2 1.7 $ 1,290.2 $ 915.5 Debt discount and issuance costs (1) ( 21.1 ) ( 89.0 ) $ 1,269.1 $ 826.5 (1) As described in Note 2 – Summary of Significant Accounting Policies, effective September 1, 2021 , the debt discount associated with convertible senior notes was derecognized upon adoption of ASU 2020-06 using the modified retrospective approach. Financial results for 2021 were not adjusted. See discussion below for additional information. |
Principal Payments on the Notes Payable | As of August 31, 2022, principal payments on the notes payable are expected as follows: (In millions) Year ending August 31, 2023 $ 35.3 2024 (1) 83.8 2025 36.4 2026 259.1 2027 241.9 Thereafter (1) 633.7 $ 1,290.2 (1) The repayment of the $ 47.7 million of 2024 Convertible Notes due February 2024 and the $ 373.8 million of 2028 Convertible Notes due April 2028 is assumed to occur at the scheduled maturity instead of assuming an earlier conversion by the holders. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments | Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives August 31, August 31, 2022 2021 2022 2021 (In millions) Balance sheet Fair Fair Balance sheet Fair Fair Derivatives designated as hedging instruments Foreign forward Accounts $ 0.6 $ 0.1 Accounts payable $ 2.9 $ 0.3 Interest rate swap Accounts 20.8 — Accounts payable — 10.0 $ 21.4 $ 0.1 $ 2.9 $ 10.3 Derivatives not designated as hedging instruments Foreign forward Accounts $ — $ — Accounts payable $ 0.1 $ 0.1 |
Effect of Derivative Instruments on the Statements of Income | The Effect of Derivative Instruments on the Consolidated Statements of Income Derivatives in cash flow Location of gain (loss) Gain (loss) recognized in income on 2022 2021 Foreign forward exchange contract Interest and foreign exchange $ ( 0.3 ) $ ( 0.1 ) Derivatives in Gain (loss) Location of Gain (loss) Location of gain Gain (loss) 2022 2021 2022 2021 2022 2021 Foreign forward $ ( 4.7 ) $ ( 2.0 ) Revenue $ ( 1.5 ) $ ( 1.3 ) Revenue $ 0.9 $ 0.6 Foreign forward 0.5 — Cost of revenue 0.3 ( 0.1 ) Cost of revenue 0.7 0.1 Interest rate swap 26.1 0.6 Interest and ( 4.9 ) ( 5.3 ) Interest and — — $ 21.9 $ ( 1.4 ) $ ( 6.1 ) $ ( 6.7 ) $ 1.6 $ 0.7 |
Effects of Cash Flow Hedges Included in Statements of Income | The following table presents the amounts in the Consolidated Statements of Income in which the effects of the cash flow hedges are recorded and the effects of the cash flow hedge activity on these line items for the years ended August 31, 2022, 2021 and 2020: For the Year Ended August 31, 2022 2021 2020 (In millions) Total Amount of gain Total Amount of gain Total Amount of gain Revenue $ 2,977.7 $ ( 1.5 ) $ 1,747.9 $ ( 1.3 ) $ 2,792.2 $ ( 0.7 ) Cost of revenue 2,671.7 0.3 1,516.3 ( 0.1 ) 2,439.1 ( 2.2 ) Interest and foreign exchange 57.4 ( 4.9 ) 43.3 ( 5.3 ) 43.6 ( 2.7 ) |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Summary of Restricted Stock Share and Restricted Stock Unit Grant Transactions for Shares, both Vested and Unvested | The following table summarizes restricted share and restricted stock unit grant transactions for shares, both vested and unvested, under the 2021 Stock Incentive Plan and the 2017 Amended and Restated Stock Incentive Plan: (In thousands) Shares Balance at August 31, 2019 (1) 4,575 Granted 470 Forfeited ( 86 ) Balance at August 31, 2020 (1) 4,959 Granted 538 Forfeited ( 190 ) Balance at August 31, 2021 (1) 5,307 Granted 391 Forfeited ( 167 ) Balance at August 31, 2022 (1) 5,531 (1) Balance represents cumulative grants net of forfeitures. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share | The shares used in the computation of the Company’s basic and diluted earnings per common share are reconciled as follows: Year Ended August 31, (In thousands) 2022 2021 2020 Weighted average basic common shares outstanding (1) 32,569 32,648 32,670 Dilutive effect of 2.875 % Convertible notes, due 2024 (2)(3) — — — Dilutive effect of 2.875 % Convertible notes, due 2028 (4) — — N/A Dilutive effect of 2.25 % Convertible notes, due 2024 (5) N/A — — Dilutive effect of restricted stock units (6) 1,062 1,017 771 Weighted average diluted common shares outstanding 33,631 33,665 33,441 (1) Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. (2) The dilutive effect of the 2.875 % Convertible notes, due 2024 was excluded for the years ended August 31, 2021 and 2020 as the average stock price was less than the applicable conversion price and therefore was anti-dilutive under previous applicable guidance. See further discussion below. (3) The dilutive effect of the 2.875 % Convertible notes due 2024 was excluded for the year ended August 31, 2022 as they were considered anti-dilutive under the “if converted” method as further discussed below. (4) The dilutive effect of the 2.875 % Convertible notes, due 2028 was excluded for the years ended August 31, 2022 and 2021 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. As these notes require cash settlement for the principal, only a premium is potentially dilutive. These convertible notes were issued in April 2021. (5) The dilutive effect of the 2.25 % Convertible notes, due 2024 was excluded for the years ended August 31, 2021 and 2020 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive under previous applicable guidance. These convertible notes were retired in April 2021. (6) Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. |
Approach to Calculate Diluted Earning per Share | (In millions, except number of shares which are reflected in Year Ended August 31, thousands and per share amounts) 2022 2021 2020 Net earnings attributable to Greenbrier $ 46.9 $ 32.4 $ 49.0 Weighted average basic common shares outstanding 32,569 32,648 32,670 Basic earnings per share $ 1.44 $ 0.99 $ 1.50 Net earnings attributable to Greenbrier $ 46.9 $ 32.4 $ 49.0 Add back: Interest and debt issuance costs on the 2.875 % n/a n/a n/a Earnings before interest and debt issuance costs n/a n/a n/a Weighted average diluted common shares outstanding 33,631 33,665 33,441 Diluted earnings per share $ 1.40 $ 0.96 $ 1.46 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) of Continuing Operations | Components of income tax expense (benefit) were as follows: Year Ended August 31, (In millions) 2022 2021 2020 Current Federal $ ( 6.7 ) $ ( 95.9 ) $ 21.0 State 0.9 1.9 0.8 Foreign 19.2 4.3 25.4 13.4 ( 89.7 ) 47.2 Deferred Federal 2.2 54.1 ( 8.3 ) State 1.4 ( 2.3 ) 0.7 Foreign 1.6 ( 3.4 ) 0.5 5.2 48.4 ( 7.1 ) Change in valuation allowance ( 0.5 ) 1.1 0.1 Income tax expense (benefit) $ 18.1 $ ( 40.2 ) $ 40.2 |
Reconciliation Between Effective and Statutory Tax Rates on Operations | The reconciliation between effective and statutory tax rates on operations is as follows: Year Ended August 31, 2022 2021 2020 Federal statutory rate 21.0 % ( 21.0 )% 21.0 % State income taxes, net of federal benefit 3.4 ( 15.0 ) 2.0 Foreign operations 9.0 25.5 4.5 Carryback rate benefit ( 3.2 ) ( 379.1 ) — Permanent differences 7.2 ( 45.6 ) 8.9 Change in valuation allowance ( 0.8 ) 12.6 0.1 Uncertain tax positions ( 1.8 ) ( 44.0 ) 3.1 Noncontrolling interest in flow-through entity ( 3.0 ) ( 2.9 ) ( 6.1 ) Other ( 1.9 ) 0.7 ( 1.3 ) Effective tax rate 29.9 % ( 468.8 )% 32.2 % |
Tax Effects of Temporary Differences that give rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities were as follows: As of August 31, (In millions) 2022 2021 Deferred tax assets: Accrued payroll and related liabilities $ 27.6 $ 23.7 Deferred revenue 6.7 7.4 Inventories and other 9.8 16.8 Maintenance and warranty accruals 3.2 2.5 Lease liability 12.4 8.5 Net operating losses 19.6 15.9 Investment, asset tax credits and other 1.5 1.4 80.8 76.2 Valuation allowance ( 9.9 ) ( 10.4 ) Deferred tax liabilities: Fixed assets ( 110.6 ) ( 106.1 ) Original issue discount ( 0.1 ) ( 17.1 ) Intangibles ( 5.3 ) ( 3.0 ) Right-of-use asset ( 11.9 ) ( 8.9 ) Other ( 11.7 ) ( 4.0 ) ( 139.5 ) ( 139.1 ) Net deferred tax liability $ ( 68.6 ) $ ( 73.3 ) |
Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Year Ended August 31, (In millions) 2022 2021 2020 Unrecognized Tax Benefit – Opening Balance $ 1.6 $ 5.5 $ 1.6 Gross increases – tax positions in prior period — — 4.0 Gross decreases – tax positions in prior period ( 0.9 ) ( 3.6 ) — Settlements — — — Lapse of statute of limitations ( 0.3 ) ( 0.3 ) ( 0.1 ) Unrecognized Tax Benefit – Ending Balance $ 0.4 $ 1.6 $ 5.5 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments Internal Financial Reports | The information in the following table is derived directly from the segments’ internal financial reports used for corporate management purposes. For the year ended August 31, 2022: Revenue Earnings (loss) from operations (In millions) External Intersegment Total External Intersegment Total Manufacturing $ 2,476.6 $ 191.6 $ 2,668.2 $ 97.2 $ 11.9 $ 109.1 Maintenance Services 347.7 26.4 374.1 21.7 — 21.7 Leasing & Management Services 153.4 1.9 155.3 108.3 0.1 108.4 Eliminations — ( 219.9 ) ( 219.9 ) — ( 12.0 ) ( 12.0 ) Corporate — — — ( 109.2 ) — ( 109.2 ) $ 2,977.7 $ — $ 2,977.7 $ 118.0 $ — $ 118.0 For the year ended August 31, 2021: Revenue Earnings (loss) from operations (In millions) External Intersegment Total External Intersegment Total Manufacturing $ 1,311.1 $ 92.4 $ 1,403.5 $ 48.3 $ 6.9 $ 55.2 Maintenance Services 298.3 9.1 307.4 6.5 0.1 6.6 Leasing & Management Services 138.5 1.1 139.6 68.9 0.2 69.1 Eliminations — ( 102.6 ) ( 102.6 ) — ( 7.2 ) ( 7.2 ) Corporate — — — ( 82.7 ) — ( 82.7 ) $ 1,747.9 $ — $ 1,747.9 $ 41.0 $ — $ 41.0 For the year ended August 31, 2020: Revenue Earnings (loss) from operations (In millions) External Intersegment Total External Intersegment Total Manufacturing $ 2,309.5 $ 3.0 $ 2,312.5 $ 157.0 $ 0.1 $ 157.1 Maintenance Services 324.7 12.6 337.3 9.0 ( 0.9 ) 8.1 Leasing & Management Services 158.0 2.3 160.3 81.4 0.2 81.6 Eliminations — ( 17.9 ) ( 17.9 ) — 0.6 0.6 Corporate — — — ( 79.0 ) — ( 79.0 ) $ 2,792.2 $ — $ 2,792.2 $ 168.4 $ — $ 168.4 Year Ended August 31, (In millions) 2022 2021 2020 Assets: Manufacturing $ 1,853.9 $ 1,493.5 $ 1,301.7 Maintenance Services 284.8 260.9 271.9 Leasing & Management Services 1,152.2 949.4 739.0 Unallocated, including cash 560.6 686.9 861.2 $ 3,851.5 $ 3,390.7 $ 3,173.8 Depreciation and amortization: Manufacturing $ 61.7 $ 67.8 $ 78.0 Maintenance Services 10.7 12.0 12.6 Leasing & Management Services 29.6 20.9 19.3 $ 102.0 $ 100.7 $ 109.9 Capital expenditures: Manufacturing $ 48.3 $ 26.6 $ 48.2 Maintenance Services 9.2 8.6 11.7 Leasing & Management Services 323.2 103.8 7.0 $ 380.7 $ 139.0 $ 66.9 |
Summary of Selected Geographic Information | The following table summarizes selected geographic information. Year Ended August 31, (In millions) 2022 2021 2020 Revenue (1) : U.S. $ 2,452.1 $ 1,221.4 $ 2,018.7 Foreign 525.6 526.5 773.5 $ 2,977.7 $ 1,747.9 $ 2,792.2 Assets: U.S. $ 2,689.6 $ 2,506.1 $ 2,359.3 Mexico 948.4 656.6 590.8 Europe 213.5 228.0 223.7 $ 3,851.5 $ 3,390.7 $ 3,173.8 (1) Revenue is presented on the basis of geographic location of customers. |
Reconciliation of Earnings from Operations to Earnings (Loss) Before Income Tax and Earnings from Unconsolidated Affiliates | Reconciliation of Earnings from operations to Earnings (loss) before income tax and earnings from unconsolidated affiliates: Year Ended August 31, (In millions) 2022 2021 2020 Earnings from operations $ 118.0 $ 41.0 $ 168.4 Interest and foreign exchange 57.4 43.3 43.6 Net loss on extinguishment of debt — 6.3 — Earnings (loss) before income tax and earnings $ 60.6 $ ( 8.6 ) $ 124.8 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Leases [Abstract] | |
Aggregate Minimum Future Amounts Receivable Under All Non-Cancelable Operating Leases and Subleases | Aggregate minimum future amounts receivable under all non-cancelable operating leases and subleases at August 31, 2022, will mature as follows: (In millions) 2023 $ 46.4 2024 37.7 2025 30.3 2026 26.6 2027 22.8 Thereafter 51.2 $ 215.0 |
Components of Operating Lease Costs | The components of operating lease costs were as follows: Twelve Months Ended August 31, (In millions) 2022 2021 2020 Operating lease expense $ 10.7 $ 13.2 $ 15.3 Short-term lease expense 6.0 5.3 8.3 Total $ 16.7 $ 18.5 $ 23.6 |
Aggregate Minimum Future Amounts Payable Under Operating Leases | Aggregate minimum future amounts payable under operating leases having initial or remaining non-cancelable terms at August 31, 2022 will mature as follows: (In millions) 2023 $ 12.9 2024 11.1 2025 8.4 2026 7.3 2027 4.6 Thereafter 17.4 Total lease payments $ 61.7 Less: Imputed interest ( 5.3 ) Total lease obligations $ 56.4 |
Additional Information Related to Company's Leases | The table below presents additional information related to the Company’s leases: Weighted average remaining lease term Operating leases 11.4 years Weighted average discount rate Operating leases 2.3 % |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases were as follows: (In millions) Twelve months ended August 31, 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 11.4 ROU assets obtained in exchange for new operating lease liabilities $ 24.7 ROU assets disposed of for lease terminations $ — |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of August 31, 2022 are: (In millions) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 21.4 $ — $ 21.4 $ — Nonqualified savings plan investments 40.3 40.3 — — Cash equivalents 119.4 119.4 — — $ 181.1 $ 159.7 $ 21.4 $ — Liabilities: Derivative financial instruments $ 3.0 $ — $ 3.0 $ — Assets and liabilities measured at fair value on a recurring basis as of August 31, 2021 are: (In millions) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 0.1 $ — $ 0.1 $ — Nonqualified savings plan investments 47.7 47.7 — — Cash equivalents 228.9 228.9 — — $ 276.7 $ 276.6 $ 0 $ — Liabilities: Derivative financial instruments $ 10.4 $ — $ 10.4 $ — (1) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 13 - Derivative Instruments for further discussion. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Fair Value Of Financial Instruments [Abstract] | |
Estimated Fair Values of Financial Instruments and Methods and Assumptions Used | The estimated fair values of financial instruments and the methods and assumptions used to estimate such fair values are as follows: (In millions) Carrying 1 Estimated Notes payable as of August 31, 2022 $ 1,289.0 $ 1,231.2 Notes payable as of August 31, 2021 $ 913.8 $ 935.9 1 Carrying amount disclosed in this table excludes debt discount and debt issuance costs. |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) | 12 Months Ended |
Aug. 31, 2022 Vehicle Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 3 |
Leasing & Management Services | |
Segment Reporting Information [Line Items] | |
Number of railcars owned | 12,200 |
Number of railcars that get services | 408,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||||||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Sep. 01, 2021 | Sep. 01, 2020 | Sep. 01, 2019 | Aug. 31, 2019 | Aug. 02, 2018 | Jun. 01, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Net foreign currency translation adjustment | $ 57,400,000 | $ 35,800,000 | $ 39,800,000 | ||||||
Allowance for doubtful accounts | $ 2,300,000 | 2,400,000 | 2,700,000 | $ 2,200,000 | |||||
Property, Plant and Equipment useful life | 40 years | ||||||||
Impairment of long-lived assets | $ 0 | 0 | 0 | ||||||
Research and development | 5,400,000 | 6,300,000 | 5,800,000 | ||||||
Stock based compensation expense | 15,500,000 | 14,700,000 | $ 9,000,000 | ||||||
Increase in retained earnings | 897,700,000 | 881,700,000 | |||||||
Reduction to additional paid in capital | $ 424,800,000 | $ 469,700,000 | |||||||
Accounting Standards Update 2016-02 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Sep. 01, 2019 | ||||||||
Accounting Standards Update 2017-12 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Sep. 01, 2019 | ||||||||
ASU 2020-06 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Sep. 01, 2021 | ||||||||
ASU 2019-12 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Sep. 01, 2021 | ||||||||
ASU 2020-04 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Aug. 31, 2022 | ||||||||
Cumulative Effect Adjustment Due to Adoption | Accounting Standards Update 2016-02 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Increase in retained earnings | $ 4,400,000 | ||||||||
Cumulative Effect Adjustment Due to Adoption | ASU 2016-13 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Increase in retained earnings | $ (500,000) | ||||||||
Cumulative Effect Adjustment Due to Adoption | ASU 2020-06 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Increase in retained earnings | $ 5,000,000 | ||||||||
Reduction to additional paid in capital | (59,000,000) | ||||||||
Derecognition of deferred tax liabilities | 17,000,000 | ||||||||
Increase in convertible note due to derecognition of debt discount | $ 71,000,000 | ||||||||
2.875% Convertible senior notes, due 2024 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% | ||||||
2.875% Convertible senior notes, due 2028 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Debt instrument, interest rate | 2.875% | 2.875% | |||||||
Customer Relationships | Maximum | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 20 years | ||||||||
GIMSA | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Interest in joint venture | 50% | ||||||||
Greenbrier-Astra Rail | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Ownership percentage by parent | 75% | ||||||||
Rayvag | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Interest in joint venture | 68% | ||||||||
Greenbrier-Maxion | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of ownership in entity | 60% | ||||||||
Amsted-Maxion Cruzeiro | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of ownership in entity | 29.50% | ||||||||
Amsted-Maxion Cruzeiro | Greenbrier-Maxion | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of ownership in entity | 40% | ||||||||
Greenbrier Railcar Funding I LLC | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of ownership in entity | 40% | ||||||||
Axis LLC | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of ownership in entity | 41.90% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Allowance for doubtful accounts | |||
Balance at beginning of period | $ 2.4 | $ 2.7 | $ 2.2 |
Additions, net of reversals | 0.4 | 0.6 | 1.7 |
Usage | (0.3) | (0.8) | (1.3) |
Currency translation effect | (0.2) | (0.1) | 0.1 |
Balance at end of period | $ 2.3 | $ 2.4 | $ 2.7 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated Useful Lives (Detail) | 12 Months Ended |
Aug. 31, 2022 | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 40 years |
Building and improvements | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 10 years |
Building and improvements | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 30 years |
Machinery and Equipment | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 3 years |
Machinery and Equipment | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 20 years |
Other | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 3 years |
Other | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 7 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) $ in Millions | 12 Months Ended |
Aug. 31, 2022 USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ 1,307.7 |
Ending balance | 1,276.9 |
Unrealized Gain (Loss) on Derivative Financial Instruments | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (7.4) |
Other comprehensive income (loss) before reclassifications | 15.7 |
Amounts reclassified from accumulated other comprehensive loss | 4.7 |
Ending balance | 13 |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (35.8) |
Other comprehensive income (loss) before reclassifications | (21.6) |
Ending balance | (57.4) |
Other | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (0.5) |
Other comprehensive income (loss) before reclassifications | (0.7) |
Ending balance | (1.2) |
Accumulated Other Comprehensive (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (43.7) |
Other comprehensive income (loss) before reclassifications | (6.6) |
Amounts reclassified from accumulated other comprehensive loss | 4.7 |
Ending balance | $ (45.6) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Amounts Reclassified out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest and foreign exchange | $ 57.4 | $ 43.3 | $ 43.6 |
Total before tax | (60.6) | 8.6 | (124.8) |
Tax expense | 18.1 | (40.2) | $ 40.2 |
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Total before tax | 6.1 | 6.7 | |
Tax expense | (1.4) | (1.7) | |
Net of tax | 4.7 | 5 | |
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss | Foreign Exchange Contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Revenue and Cost of revenue | 1.2 | 1.4 | |
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss | Interest rate swap contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest and foreign exchange | $ 4.9 | $ 5.3 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Interest and Foreign Exchange (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Accounting Policies [Abstract] | |||
Interest and other expense | $ 55.7 | $ 44.7 | $ 42.4 |
Foreign exchange (gain) loss | 1.7 | (1.4) | 1.2 |
Interest and foreign exchange | $ 57.4 | $ 43.3 | $ 43.6 |
Asset Backed Securities - Addit
Asset Backed Securities - Additional Information (Detail) - USD ($) $ in Millions | Feb. 09, 2022 | Aug. 31, 2022 | Aug. 31, 2021 |
Debt Instrument [Line Items] | |||
Debt issuance costs, net | $ 8.7 | $ 8.6 | |
GBX Leasing | |||
Debt Instrument [Line Items] | |||
Debt, Principal amount | $ 323.3 | $ 323.3 | |
Debt issuance costs, net | $ 5 | ||
Debt instrument, maturity year | 2052 | ||
Debt instruments additional interest rate per annum | 4% | ||
GBX Leasing | GBXL I Series 2022-1 Class A Secured Railcar Equipment Notes | |||
Debt Instrument [Line Items] | |||
Debt, Principal amount | $ 302.6 | ||
Debt instrument, interest rate | 2.87% | ||
Debt instrument, maturity date | Feb. 20, 2052 | ||
GBX Leasing | GBXL I Series 2022-1 Class B Secured Railcar Equipment Notes | |||
Debt Instrument [Line Items] | |||
Debt, Principal amount | $ 20.7 | ||
Debt instrument, interest rate | 3.45% | ||
Debt instrument, maturity date | Feb. 20, 2052 |
Asset Backed Securities - Summa
Asset Backed Securities - Summary of Net Carrying Amount of Assets Transferred and Related Debt (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 |
Assets | |||
Restricted cash | $ 16.1 | $ 24.6 | $ 8.3 |
Equipment on operating leases, net | 770.9 | 609.8 | |
Liabilities | |||
Notes payable, net | 1,269.1 | $ 826.5 | |
GBX Leasing | |||
Assets | |||
Restricted cash | 6.9 | ||
Equipment on operating leases, net | 401.8 | ||
Liabilities | |||
Notes payable, net | $ 312.8 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Balances (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | ||
Contract With Customer Asset And Liability [Line Items] | |||
Contract liabilities | [1] | $ 30.5 | $ 36.4 |
Change in contract liabilities | [1] | (5.9) | |
Accounts Receivable, Net | |||
Contract With Customer Asset And Liability [Line Items] | |||
Contract assets | 13 | 5.9 | |
Change in contract assets | 7.1 | ||
Inventories | |||
Contract With Customer Asset And Liability [Line Items] | |||
Contract assets | 6 | $ 6.7 | |
Change in contract assets | $ (0.7) | ||
[1] Contract liabilities balance includes deferred revenue within the scope of Topic 606. |
Revenue Recognition - Additiona
Revenue Recognition - Additional information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Revenue From Contract With Customers [Line Items] | ||
Revenue recognized from contract with customers liability | $ 16.4 | $ 7.4 |
Railcar sales | ||
Revenue From Contract With Customers [Line Items] | ||
Expected revenue recognized in the reminder of fiscal year | 2,100 | |
Services | ||
Revenue From Contract With Customers [Line Items] | ||
Expected revenue recognized in the reminder of fiscal year | $ 123.8 | |
Expected performance percentage | 54% |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Estimated Revenue Related to Performance Obligations (Detail) $ in Millions | Aug. 31, 2022 USD ($) | |
Railcar sales | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | $ 2,100 | |
Services | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 123.8 | |
Other | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 12.3 | |
Manufacturing | Railcar sales | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 2,634 | |
Manufacturing | Marine | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 30.9 | |
Manufacturing | Conversions | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 183.6 | |
Manufacturing | Railcars intended for syndication | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | $ 623.7 | [1] |
[1] Not a performance obligation as defined in Topic 606 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Manufacturing supplies and raw materials | $ 570.2 | $ 352.8 |
Work-in-process | 183.3 | 167.3 |
Finished goods | 75.9 | 73.4 |
Excess and obsolete adjustment | (14.1) | (19.9) |
Inventories | $ 815.3 | $ 573.6 |
Inventories - Inventory Valuati
Inventories - Inventory Valuation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 19.9 | ||
Balance at end of period | 14.1 | $ 19.9 | |
Inventory Valuation Reserve | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 19.9 | 24.2 | $ 9.5 |
Charge to cost of revenue | 1.5 | 0.8 | 18 |
Disposition of inventory | (6.9) | (5) | (3.6) |
Currency translation effect | (0.4) | (0.1) | 0.3 |
Balance at end of period | $ 14.1 | $ 19.9 | $ 24.2 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 1,241.9 | $ 1,226.3 |
Accumulated depreciation | (596.7) | (556.1) |
Property, plant and equipment, net | 645.2 | 670.2 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 88.4 | 94.6 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 623.7 | 609.8 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 367.1 | 379.1 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 55.3 | 50 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 107.4 | $ 92.8 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 70.7 | $ 75.3 | $ 86.6 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Value of Goodwill (Detail) $ in Millions | 12 Months Ended |
Aug. 31, 2022 USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 132.1 |
Translation and other adjustments | (4.8) |
Ending balance | 127.3 |
Gross goodwill balance before accumulated goodwill impairment losses and other reductions | 290.1 |
Accumulated goodwill impairment losses | (138.2) |
Accumulated other reductions | (24.6) |
Manufacturing | |
Goodwill [Line Items] | |
Beginning balance | 88.8 |
Translation and other adjustments | (4.5) |
Ending balance | 84.3 |
Maintenance Services | |
Goodwill [Line Items] | |
Beginning balance | 43.3 |
Translation and other adjustments | (0.3) |
Ending balance | $ 43 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Goodwill [Line Items] | ||
Goodwill | $ 127.3 | $ 132.1 |
Manufacturing | ||
Goodwill [Line Items] | ||
Goodwill | 84.3 | 88.8 |
Manufacturing | North America | ||
Goodwill [Line Items] | ||
Goodwill | 56.6 | |
Manufacturing | Europe | ||
Goodwill [Line Items] | ||
Goodwill | 27.7 | |
Maintenance Services | ||
Goodwill [Line Items] | ||
Goodwill | $ 43 | $ 43.3 |
Intangibles and Other Assets,_3
Intangibles and Other Assets, Net - Identifiable Intangible and Other Assets (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Net, Total | $ 47.3 | $ 53 |
Intangible assets not subject to amortization | 2.4 | 2.4 |
Prepaid and other assets | 32.4 | 26.7 |
Operating lease right of use asset | $ 54.2 | $ 39.8 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total Intangible and other assets, net | Total Intangible and other assets, net |
Nonqualified savings plan investments | $ 40.3 | $ 47.7 |
Debt issuance costs, net | 8.7 | 8.6 |
Assets held for sale | 3.8 | 5.4 |
Total Intangible and other assets, net | 189.1 | 183.6 |
Customer and supplier relationships | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 87.5 | 89.8 |
Accumulated amortization | (66.1) | (64.1) |
Other Intangible Assets | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 42.4 | 40.3 |
Accumulated amortization | $ (16.5) | $ (13) |
Intangibles and Other Assets,_4
Intangibles and Other Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 9.3 | $ 11.6 | $ 11 |
Future amortization expense, 2023 | 8.5 | ||
Future amortization expense, 2024 | 7.6 | ||
Future amortization expense, 2025 | 7.2 | ||
Future amortization expense, 2026 | 6 | ||
Future amortization expense, 2027 | $ 5.3 | ||
Amortizable intangible assets, weighted-average remaining useful life | 8 years |
Revolving Notes - Additional In
Revolving Notes - Additional Information (Detail) | 12 Months Ended | |
Aug. 31, 2022 USD ($) Facility | Aug. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 147,900,000 | |
Long-term Line of Credit | $ 296,600,000 | $ 372,200,000 |
Senior Secured Credit Facilities, Consisting of 4 Components | ||
Line of Credit Facility [Line Items] | ||
Number of senior secured credit facilities | Facility | 4 | |
Line of credit facility maximum capacity | $ 1,140,000,000 | |
Letter of credit facility outstanding amount | 6,900,000 | 8,400,000 |
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 600,000,000 | |
Line of credit maturity date | 2026-08 | |
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 0.50% | |
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | SOFR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.50% | |
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | SOFR Adjustment | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 0.10% | |
GBX Leasing Warehouse Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 350,000,000 | |
Line of credit maturity date | 2027-08 | |
Percentage of ownership in join venture | 95% | |
Long-term Line of Credit | $ 147,000,000 | |
GBX Leasing Warehouse Facility | SOFR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.85% | |
GBX Leasing Warehouse Facility | SOFR Adjustment | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 0.11% | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 67,200,000 | |
Long-term Line of Credit | $ 40,800,000 | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Minimum | ||
Line of Credit Facility [Line Items] | ||
Line of credit maturity date | 2023-02 | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Maximum | ||
Line of Credit Facility [Line Items] | ||
Line of credit maturity date | 2023-10 | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | WIBOR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.20% | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | WIBOR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.60% | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | EURIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.50% | |
Mexican Railcar Manufacturing Joint Venture Line of Credit, 3rd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 120,000,000 | |
Mexican Railcar Manufacturing Operations Line of Credit 1, 3rd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 30,000,000 | |
Line of credit facility borrowings outstanding due period | 2024-06 | |
Joint venture partner each guaranteed percentage | 50% | |
Mexican Railcar Manufacturing Operations Line of Credit 1, 3rd Component of Senior Secured Credit Facilities | LIBOR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 3.75% | |
Mexican Railcar Manufacturing Operations Line of Credit 1, 3rd Component of Senior Secured Credit Facilities | LIBOR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 4.25% | |
Mexican Railcar Manufacturing Operations Line of Credit 2, 3rd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 35,000,000 | |
Line of credit facility borrowings outstanding due period | 2023-06 | |
Joint venture partner each guaranteed percentage | 50% | |
Mexican Railcar Manufacturing Operations Line of Credit 2, 3rd Component of Senior Secured Credit Facilities | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 3.75% | |
Mexican Railcar Manufacturing Operations Line of Credit 3, 3rd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 50,000,000 | |
Line of credit facility borrowings outstanding due period | 2024-10 | |
Mexican Railcar Manufacturing Operations Line of Credit 3, 3rd Component of Senior Secured Credit Facilities | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 4.25% | |
Mexican Railcar Manufacturing Operations Line of Credit 4, 3rd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 5,000,000 | |
Line of credit facility borrowings outstanding due period | 2022-09 | |
Mexican Railcar Manufacturing Operations Line of Credit 4, 3rd Component of Senior Secured Credit Facilities | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 2.95% |
Revolving Notes - Schedule of C
Revolving Notes - Schedule of Credit Facility Balances (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Revolving notes | $ 296.6 | $ 372.2 |
Revolving Notes | North America | ||
Line of Credit Facility [Line Items] | ||
Revolving notes | 160 | 160 |
Revolving Notes | Europe | ||
Line of Credit Facility [Line Items] | ||
Revolving notes | 51.6 | 50.2 |
Revolving Notes | Mexico | ||
Line of Credit Facility [Line Items] | ||
Revolving notes | $ 85 | 15 |
GBX Leasing | ||
Line of Credit Facility [Line Items] | ||
Revolving notes | $ 147 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 |
Payables and Accruals [Abstract] | ||||
Trade payables | $ 401.5 | $ 265.1 | ||
Other accrued liabilities | 102.8 | 109.1 | ||
Operating lease liabilities | $ 56.4 | $ 42.6 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | ||
Accrued payroll and related liabilities | $ 140.4 | $ 125.1 | ||
Accrued warranty | 24 | 27.9 | $ 45.2 | $ 46.7 |
Accounts payable and accrued liabilities | $ 725.1 | $ 569.8 |
Warranty Accrual - Warranty Acc
Warranty Accrual - Warranty Accrual Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Guarantees and Product Warranties [Abstract] | |||
Balance at beginning of period | $ 27.9 | $ 45.2 | $ 46.7 |
Charged to cost of revenue | 5 | (8) | 4 |
Payments | (7.9) | (9.2) | (6.2) |
Currency translation effect | (1) | (0.1) | 0.7 |
Balance at end of period | $ 24 | $ 27.9 | $ 45.2 |
Notes Payable, Net - Notes Paya
Notes Payable, Net - Notes Payable, Net (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 | |
Debt Instrument [Line Items] | |||
Term loans | $ 867.5 | $ 492.3 | |
Other notes payable | 1.2 | 1.7 | |
Notes payable, gross | 1,290.2 | 915.5 | |
Debt discount and issuance costs | [1] | (21.1) | (89) |
Notes payable, net | 1,269.1 | 826.5 | |
2.875% Convertible senior notes, due 2028 | |||
Debt Instrument [Line Items] | |||
Convertible senior notes | 373.8 | 373.8 | |
2.875% Convertible senior notes, due 2024 | |||
Debt Instrument [Line Items] | |||
Convertible senior notes | $ 47.7 | $ 47.7 | |
[1] As described in Note 2 – Summary of Significant Accounting Policies, effective September 1, 2021 , the debt discount associated with convertible senior notes was derecognized upon adoption of ASU 2020-06 using the modified retrospective approach. Financial results for 2021 were not adjusted. See discussion below for additional information. |
Notes Payable, Net - Notes Pa_2
Notes Payable, Net - Notes Payable, Net (Parenthetical) (Details) | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 |
ASU 2020-06 | |||
Debt Instrument [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Sep. 01, 2021 | ||
2.875% Convertible senior notes, due 2028 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.875% | 2.875% | |
2.875% Convertible senior notes, due 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% |
Notes Payable, Net - Additional
Notes Payable, Net - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||||
Jul. 29, 2022 | Aug. 31, 2022 | Feb. 09, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Debt instrument amount outstanding | $ 1,290,200,000 | $ 915,500,000 | |||
ASU 2020-06 | |||||
Debt Instrument [Line Items] | |||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Sep. 01, 2021 | ||||
Other Term Loan Due February 2023 to February 2027 | |||||
Debt Instrument [Line Items] | |||||
Unsecured debt | $ 1,200,000 | ||||
2026 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Senior term debt | $ 291,900,000 | ||||
Debt instrument, maturity month and year | 2026-08 | ||||
Periodic Principal Payment | $ 3,650,000 | ||||
Balloon payment | $ 222,600,000 | ||||
Swap agreement interest rate | 75% | ||||
Debt instrument amount outstanding | $ 280,900,000 | ||||
2026 Term Loan | SOFR | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, percentage points added to the reference rate | 1.50% | ||||
2026 Term Loan | SOFR Adjustment | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, percentage points added to the reference rate | 0.10% | ||||
2027 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Senior term debt | $ 200,000,000 | $ 275,000,000 | |||
Debt instrument, maturity month and year | 2023-01 | 2027-08 | |||
Additional term loan | $ 75,000,000 | ||||
Additional debt available as a delayed draw | $ 75,000,000 | ||||
Periodic Principal Payment | $ 2,400,000 | ||||
Balloon payment | $ 219,900,000 | ||||
Swap agreement interest rate | 100% | ||||
Debt instrument amount outstanding | $ 268,000,000 | ||||
2027 Term Loan | SOFR | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, percentage points added to the reference rate | 1.375% | ||||
2027 Term Loan | SOFR Adjustment | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, percentage points added to the reference rate | 0.10% | ||||
2.875% Convertible senior notes, due 2028 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, effective interest rate | 5.75% | ||||
Debt instrument, interest rate | 2.875% | 2.875% | |||
Description of long term debt | Convertible senior notes, due 2028 (2028 Convertible Notes), bear interest at a fixed rate of 2.875%, paid semiannually in arrears on April 15th and October 15th. | ||||
Frequency of payments | semiannually | ||||
Debt instrument, maturity date | Apr. 15, 2028 | ||||
Convertible notes initial conversion rate, shares per $1,000 principal amount | 0.180317 | ||||
Debt instrument, convertible, principal amount | $ 1,000 | ||||
Convertible notes conversion rate, per share | $ 55.46 | ||||
Number of shares reserved for future issuance | 8.8 | ||||
2.875% Convertible senior notes, due 2028 | Redemption on or After April 15, 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, convertible, latest date | Jan. 15, 2028 | ||||
Debt instrument redemption start date | Apr. 15, 2025 | ||||
Debt instrument redemption end date | Apr. 15, 2028 | ||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130% | ||||
Debt instrument redemption description | Additionally, the Company may elect to call the notes on or after April 15, 2025 and on or before the 40th trading day prior to April 15, 2028, at a cash redemption price described in the 2028 Notes Indenture if the stock price exceeds 130% of the conversion price during certain trading days as defined in the 2028 Notes Indenture. | ||||
2.875% Convertible senior notes, due 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, effective interest rate | 4.99% | ||||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% | ||
Description of long term debt | Convertible senior notes, due 2024 (2024 Convertible Notes), bear interest at a fixed rate of 2.875%, paid semi-annually in arrears on February 1st and August 1st. | ||||
Frequency of payments | semi-annually | ||||
Debt instrument, maturity date | Feb. 01, 2024 | ||||
Convertible notes initial conversion rate, shares per $1,000 principal amount | 0.166234 | ||||
Debt instrument, convertible, principal amount | $ 1,000 | ||||
Convertible notes conversion rate, per share | $ 60.16 | ||||
Number of shares reserved for future issuance | 1.1 | ||||
GBX Leasing Warehouse Facility | |||||
Debt Instrument [Line Items] | |||||
Senior term debt | $ 323,300,000 | $ 323,300,000 | |||
Debt instrument amount outstanding | $ 318,600,000 | ||||
GBX Leasing Warehouse Facility | SOFR Adjustment | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, percentage points added to the reference rate | 0.11% |
Notes Payable, Net - Principal
Notes Payable, Net - Principal Payments on Notes Payable (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 | |
Debt Disclosure [Abstract] | |||
2023 | $ 35.3 | ||
2024 | [1] | 83.8 | |
2025 | 36.4 | ||
2026 | 259.1 | ||
2027 | 241.9 | ||
Thereafter | [1] | 633.7 | |
Notes payable, gross | $ 1,290.2 | $ 915.5 | |
[1] The repayment of the $ 47.7 million of 2024 Convertible Notes due February 2024 and the $ 373.8 million of 2028 Convertible Notes due April 2028 is assumed to occur at the scheduled maturity instead of assuming an earlier conversion by the holders. |
Notes Payable, Net - Principa_2
Notes Payable, Net - Principal Payments on Notes Payable (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Aug. 31, 2022 USD ($) | |
2024 Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument redemption description | The repayment of the $47.7 million of 2024 Convertible Notes due February 2024 and the $373.8 million of 2028 Convertible Notes due April 2028 is assumed to occur at the scheduled maturity instead of assuming an earlier conversion by the holders. |
February 2024 Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Convertible senior notes | $ 47.7 |
April 2028 Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Convertible senior notes | $ 373.8 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 12 Months Ended |
Aug. 31, 2022 USD ($) | |
Foreign Exchange Contracts | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 73,600,000 |
Amount reclassified to revenue or cost of revenue in the next year | (3,500,000) |
Interest rate swap contracts | |
Derivative [Line Items] | |
Unrealized pre-tax gain (loss) that would be credited to interest expense in the next year | 6,400,000 |
Interest rate swap contracts | Derivatives maturing from September 2023 through January 2032 | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 478,700,000 |
Interest rate swap contracts | Derivatives maturing from September 2023 through January 2032 | Minimum | |
Derivative [Line Items] | |
Maturity date | 2023-09 |
Interest rate swap contracts | Derivatives maturing from September 2023 through January 2032 | Maximum | |
Derivative [Line Items] | |
Maturity date | 2032-01 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | $ 21.4 | $ 0.1 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Accounts Receivable, after Allowance for Credit Loss | Accounts Receivable, after Allowance for Credit Loss |
Liability Derivatives | $ 2.9 | $ 10.3 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Designated as Hedging Instrument | Foreign Exchange Contracts | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | $ 0.6 | $ 0.1 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Accounts Receivable, after Allowance for Credit Loss | Accounts Receivable, after Allowance for Credit Loss |
Liability Derivatives | $ 2.9 | $ 0.3 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Designated as Hedging Instrument | Interest rate swap contracts | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | $ 20.8 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Accounts Receivable, after Allowance for Credit Loss | |
Liability Derivatives | $ 10 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities | |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | $ 0.1 | $ 0.1 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on Statements of Income (Detail) - Cash Flow Hedging - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives | $ 21.9 | $ (1.4) |
Gain (loss) reclassified from accumulated OCI into income | (6.1) | (6.7) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | 1.6 | 0.7 |
Foreign Exchange Forward | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income on derivatives | $ (0.3) | $ (0.1) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest And Foreign Exchange Net | Interest And Foreign Exchange Net |
Foreign Exchange Forward | Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives | $ (4.7) | $ (2) |
Gain (loss) reclassified from accumulated OCI into income | (1.5) | (1.3) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | $ 0.9 | $ 0.6 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax |
Foreign Exchange Forward | Cost Of Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives | $ 0.5 | |
Gain (loss) reclassified from accumulated OCI into income | 0.3 | $ (0.1) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | $ 0.7 | $ 0.1 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Revenue | Cost of Revenue |
Interest rate swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives | $ 26.1 | $ 0.6 |
Gain (loss) reclassified from accumulated OCI into income | $ (4.9) | $ (5.3) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest And Foreign Exchange Net | Interest And Foreign Exchange Net |
Derivative Instruments - Effe_2
Derivative Instruments - Effects of Cash Flow Hedges Included in Statements of Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Derivative [Line Items] | |||
Revenue | $ 2,977.7 | $ 1,747.9 | $ 2,792.2 |
Cost of revenue | 2,671.7 | 1,516.3 | 2,439.1 |
Interest and foreign exchange | 57.4 | 43.3 | 43.6 |
Sales | |||
Derivative [Line Items] | |||
Amount of gain (loss) on cash flow hedge activity | (1.5) | (1.3) | (0.7) |
Cost of Sales | |||
Derivative [Line Items] | |||
Amount of gain (loss) on cash flow hedge activity | 0.3 | (0.1) | (2.2) |
Interest and Foreign Exchange | |||
Derivative [Line Items] | |||
Amount of gain (loss) on cash flow hedge activity | $ (4.9) | $ (5.3) | $ (2.7) |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Jan. 06, 2021 | |
Stockholders Equity Note [Line Items] | ||||
Shares repurchased | $ 20,000,000 | |||
Shares available for grant | 1,394,000 | 1,618,000 | 466,000 | |
Performance based share based compensation and dividend equivalent rights | 391,000 | 538,000 | 470,000 | |
Share based compensation, non vested shares | 653,000 | |||
Additional shares available for grant | 653,000 | |||
Unamortized compensation cost of restricted stock unit grants | $ 12,800,000 | |||
Share Repurchase Program - 2014 | ||||
Stockholders Equity Note [Line Items] | ||||
Remaining authorized repurchase amount | $ 100,000,000 | |||
Repurchase program expiration date | Jan. 31, 2023 | |||
Repurchase of common stock, shares | 0 | 0 | 0 | |
Selling, Administrative and Cost of Revenue | ||||
Stockholders Equity Note [Line Items] | ||||
Restricted stock compensation expense | $ 15,500,000 | $ 14,700,000 | $ 8,700,000 | |
Restricted Stock | ||||
Stockholders Equity Note [Line Items] | ||||
Restricted stock shares issued net of shares for tax withholdings | 290,000 | |||
Restricted Stock | Minimum | ||||
Stockholders Equity Note [Line Items] | ||||
Vesting period of compensation expense | 1 year | |||
Restricted Stock | Maximum | ||||
Stockholders Equity Note [Line Items] | ||||
Vesting period of compensation expense | 3 years | |||
Unvested Restricted Stock Grants | ||||
Stockholders Equity Note [Line Items] | ||||
Share based compensation, non vested shares | 1,042,000 | 1,024,000 | ||
Fair value of awards granted | $ 18,700,000 | $ 18,000,000 | $ 14,500,000 | |
2021 Stock Incentive Plan and 2017 Amended and Restated Stock Incentive Plan | ||||
Stockholders Equity Note [Line Items] | ||||
Number of shares reserved for future issuance | 1,500,000 | |||
2021 Stock Incentive Plan and 2017 Amended and Restated Stock Incentive Plan | Maximum | ||||
Stockholders Equity Note [Line Items] | ||||
Shares available for grant | 466,000 | |||
Number of common shares outstanding | 884,000 |
Equity - Summary of Restricted
Equity - Summary of Restricted Stock Share and Restricted Stock Unit Grant Transactions for Shares, both Vested and Unvested (Detail) - shares | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | ||
Equity [Abstract] | ||||
Beginning Balance | [1] | 5,307,000 | 4,959,000 | 4,575,000 |
Granted | 391,000 | 538,000 | 470,000 | |
Forfeited | (167,000) | (190,000) | (86,000) | |
Ending Balance | [1] | 5,531,000 | 5,307,000 | 4,959,000 |
[1] Balance represents cumulative grants net of forfeitures. |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share (Detail) - shares shares in Thousands | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | ||
Earnings Per Share Disclosure [Line Items] | ||||
Weighted average basic common shares outstanding | [1] | 32,569 | 32,648 | 32,670 |
Dilutive effect of restricted stock units | [2] | 1,062 | 1,017 | 771 |
Weighted average diluted common shares outstanding | 33,631 | 33,665 | 33,441 | |
[1] Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. |
Earnings Per Share - Reconcil_2
Earnings Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share (Parenthetical) (Detail) | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 |
2.875% Convertible senior notes, due 2024 | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% |
2.875% Convertible senior notes, due 2028 | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.875% | 2.875% | |
2.25% Convertible senior notes, due 2024 | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.25% | 2.25% | 2.25% |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 |
2.875% Convertible senior notes, due 2024 | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% |
2.875% Convertible senior notes, due 2028 | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.875% | 2.875% | |
2.25% Convertible senior notes, due 2024 | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.25% | 2.25% | 2.25% |
Earnings Per Share - Approach t
Earnings Per Share - Approach to Calculate Diluted Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | ||
Earnings Per Share [Abstract] | ||||
Net earnings attributable to Greenbrier | $ 46.9 | $ 32.4 | $ 49 | |
Weighted average basic common shares outstanding | [1] | 32,569 | 32,648 | 32,670 |
Basic earnings per share | $ 1.44 | $ 0.99 | $ 1.50 | |
Net earnings attributable to Greenbrier | $ 46.9 | $ 32.4 | $ 49 | |
Weighted average diluted common shares outstanding | 33,631 | 33,665 | 33,441 | |
Diluted earnings per share | $ 1.40 | $ 0.96 | $ 1.46 | |
[1] Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. |
Earnings Per Share - Approach_2
Earnings Per Share - Approach to Calculate Diluted Earnings Per Share (Parenthetical) (Details) | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 |
2.875% Convertible senior notes, due 2024 | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Carrying amount of investment in unconsolidated affiliates | $ 0.7 | $ 3.2 | |
Percentage of recognized revenue and margin from sale | 60% | ||
Percentage of deferred revenue and margin from sale | 40% | ||
Revenue recognized associated with railcars sold | $ 4.7 | ||
Related party expenses | $ 0.9 | 0.2 | 0.3 |
Dividends paid to joint venture partner | $ 16.9 | 25.3 | 38.9 |
Axis LLC | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership in entity | 41.90% | ||
Greenbrier | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership in entity | 40% | ||
Amsted-Maxion Cruzeiro | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership in entity | 29.50% | ||
Note receivable | 4.5 | ||
Greenbrier-Maxion | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership in entity | 60% | ||
Note receivable | 3.8 | ||
Leasing Warehouse | |||
Related Party Transaction [Line Items] | |||
Revenue recognized associated with railcars sold | $ 9.3 | ||
Railcar Components | Axis LLC | |||
Related Party Transaction [Line Items] | |||
Purchases of goods from related party | $ 11.5 | $ 13.5 | 12.7 |
Joint Venture Agreement | |||
Related Party Transaction [Line Items] | |||
Dividends paid to joint venture partner | $ 22.5 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) of Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Current | |||
Federal | $ (6.7) | $ (95.9) | $ 21 |
State | 0.9 | 1.9 | 0.8 |
Foreign | 19.2 | 4.3 | 25.4 |
Current Income Tax Expense (Benefit), Total | 13.4 | (89.7) | 47.2 |
Deferred | |||
Federal | 2.2 | 54.1 | (8.3) |
State | 1.4 | (2.3) | 0.7 |
Foreign | 1.6 | (3.4) | 0.5 |
Total Deferred Income Tax Expense (Benefit) | 5.2 | 48.4 | (7.1) |
Change in valuation allowance | (0.5) | 1.1 | 0.1 |
Income tax expense (benefit) | $ 18.1 | $ (40.2) | $ 40.2 |
Income Taxes - Additional infor
Income Taxes - Additional information (Detail) - USD ($) | 12 Months Ended | |||||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||||
Income tax and earnings from unconsolidated affiliates,Domestic u.s. operations | $ 12,400,000 | $ (30,700,000) | $ 71,200,000 | |||
Income tax and earnings from unconsolidated affiliates,Foreign operations | $ 48,200,000 | $ 22,100,000 | $ 53,600,000 | |||
Statutory federal corporate tax rate | 21% | 21% | 21% | 21% | 25.70% | 35% |
Federal income tax expense (benefit), CARES Act | $ 38,500,000 | |||||
Inflation reduction act terms | On August 16, 2022, the Inflation Reduction Act (the “IRA”) was signed into law. In general, the provisions of the IRA will be effective beginning with fiscal year 2023, with certain exceptions. The IRA includes a new 15% corporate minimum tax as well as a 1% excise tax on corporate stock repurchases applicable to repurchases after December 31, 2022. The Company is in the process of evaluating the potential impacts of the IRA and does not currently expect the IRA to have a material impact on our effective tax rate. However, the analysis is ongoing and incomplete, and it is possible that the IRA could have an adverse effect on the Company’s tax liability. | |||||
Deferred tax assets, valuation allowance | $ 9,900,000 | $ 10,400,000 | ||||
Net increase (decrease) in the valuation allowance | 500,000 | |||||
Unrecognized tax benefits, excluding interest | 400,000 | 1,600,000 | ||||
Accrued interest related to uncertain tax provisions | 100,000 | 400,000 | ||||
Increase (reduction) in interest expense relating to reserves for uncertain tax provisions | 300,000 | $ 600,000 | ||||
Accrued penalties related to uncertain tax reserves | 0 | |||||
State | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carryforwards | $ 104,800,000 | |||||
Operating loss carryforwards expiration year | 2026 | |||||
Credit carryforwards | $ 1,200,000 | |||||
Credit carryforwards expiration year | 2022 | |||||
Foreign | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carryforwards | $ 33,500,000 | |||||
Operating loss carryforwards expiration year | 2022 | |||||
Operating loss carryforwards that do not expire | $ 26,100,000 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Effective and Statutory Tax Rates on Continuing Operations (Detail) | 12 Months Ended | |||||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||||
Federal statutory rate | 21% | 21% | 21% | 21% | 25.70% | 35% |
State income taxes, net of federal benefit | 3.40% | 15% | 2% | |||
Foreign operations | 9% | (25.50%) | 4.50% | |||
Carryback rate benefit | (3.20%) | 379.10% | ||||
Permanent differences | 7.20% | 45.60% | 8.90% | |||
Change in valuation allowance | (0.80%) | (12.60%) | 0.10% | |||
Uncertain tax positions | (1.80%) | 44% | 3.10% | |||
Noncontrolling interest in flow-through entity | (3.00%) | 2.90% | (6.10%) | |||
Other | (1.90%) | (0.70%) | (1.30%) | |||
Effective tax rate | 29.90% | 468.80% | 32.20% |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences that give rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Deferred tax assets: | ||
Accrued payroll and related liabilities | $ 27.6 | $ 23.7 |
Deferred revenue | 6.7 | 7.4 |
Inventories and other | 9.8 | 16.8 |
Maintenance and warranty accruals | 3.2 | 2.5 |
Lease liability | 12.4 | 8.5 |
Net operating losses | 19.6 | 15.9 |
Investment, asset tax credits and other | 1.5 | 1.4 |
Deferred Tax Assets, Gross, Total | 80.8 | 76.2 |
Valuation allowance | (9.9) | (10.4) |
Deferred tax liabilities: | ||
Fixed assets | (110.6) | (106.1) |
Original issue discount | (0.1) | (17.1) |
Intangibles | (5.3) | (3) |
Right-of-use asset | (11.9) | (8.9) |
Other | (11.7) | (4) |
Deferred Tax Liabilities, Gross, Total | (139.5) | (139.1) |
Net deferred tax liability | $ (68.6) | $ (73.3) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefit – Opening Balance | $ 1.6 | $ 5.5 | $ 1.6 |
Gross increases – tax positions in prior period | 4 | ||
Gross decreases – tax positions in prior period | (0.9) | (3.6) | |
Lapse of statute of limitations | (0.3) | (0.3) | (0.1) |
Unrecognized Tax Benefit – Ending Balance | $ 0.4 | $ 1.6 | $ 5.5 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Aug. 31, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Segments
Segment Information - Segments Internal Financial Reports (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 2,977.7 | $ 1,747.9 | $ 2,792.2 |
Earnings (loss) from operations | 118 | 41 | 168.4 |
Assets | 3,851.5 | 3,390.7 | 3,173.8 |
Depreciation and amortization | 102 | 100.7 | 109.9 |
Capital expenditures | 380.7 | 139 | 66.9 |
Manufacturing | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,476.6 | 1,311.1 | 2,309.5 |
Maintenance Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | 347.7 | 298.3 | 324.7 |
Leasing & Management Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | 153.4 | 138.5 | 158 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Earnings (loss) from operations | (109.2) | (82.7) | (79) |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue | (219.9) | (102.6) | (17.9) |
Earnings (loss) from operations | (12) | (7.2) | 0.6 |
Intersegment Eliminations | Manufacturing | |||
Segment Reporting Information [Line Items] | |||
Revenue | 191.6 | 92.4 | 3 |
Earnings (loss) from operations | 11.9 | 6.9 | 0.1 |
Intersegment Eliminations | Maintenance Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | 26.4 | 9.1 | 12.6 |
Earnings (loss) from operations | 0.1 | (0.9) | |
Intersegment Eliminations | Leasing & Management Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1.9 | 1.1 | 2.3 |
Earnings (loss) from operations | 0.1 | 0.2 | 0.2 |
Operating Segments | Manufacturing | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,668.2 | 1,403.5 | 2,312.5 |
Earnings (loss) from operations | 109.1 | 55.2 | 157.1 |
Assets | 1,853.9 | 1,493.5 | 1,301.7 |
Depreciation and amortization | 61.7 | 67.8 | 78 |
Capital expenditures | 48.3 | 26.6 | 48.2 |
Operating Segments | Maintenance Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | 374.1 | 307.4 | 337.3 |
Earnings (loss) from operations | 21.7 | 6.6 | 8.1 |
Assets | 284.8 | 260.9 | 271.9 |
Depreciation and amortization | 10.7 | 12 | 12.6 |
Capital expenditures | 9.2 | 8.6 | 11.7 |
Operating Segments | Leasing & Management Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | 155.3 | 139.6 | 160.3 |
Earnings (loss) from operations | 108.4 | 69.1 | 81.6 |
Assets | 1,152.2 | 949.4 | 739 |
Depreciation and amortization | 29.6 | 20.9 | 19.3 |
Capital expenditures | 323.2 | 103.8 | 7 |
Operating Segments | Unallocated, including cash | |||
Segment Reporting Information [Line Items] | |||
Assets | 560.6 | 686.9 | 861.2 |
Reconciling Items | Manufacturing | |||
Segment Reporting Information [Line Items] | |||
Earnings (loss) from operations | 97.2 | 48.3 | 157 |
Reconciling Items | Maintenance Services | |||
Segment Reporting Information [Line Items] | |||
Earnings (loss) from operations | 21.7 | 6.5 | 9 |
Reconciling Items | Leasing & Management Services | |||
Segment Reporting Information [Line Items] | |||
Earnings (loss) from operations | $ 108.3 | $ 68.9 | $ 81.4 |
Segment Information - Summary o
Segment Information - Summary of Geographic Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | $ 2,977.7 | $ 1,747.9 | $ 2,792.2 | |
Assets | 3,851.5 | 3,390.7 | 3,173.8 | |
UNITED STATES | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | [1] | 2,452.1 | 1,221.4 | 2,018.7 |
Assets | 2,689.6 | 2,506.1 | 2,359.3 | |
Foreign | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | [1] | 525.6 | 526.5 | 773.5 |
Mexico | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Assets | 948.4 | 656.6 | 590.8 | |
Europe | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Assets | $ 213.5 | $ 228 | $ 223.7 | |
[1] Revenue is presented on the basis of geographic location of customers. |
Segment Information - Reconcili
Segment Information - Reconciliation of Earnings from Operations to Earnings (Loss) Before Income Tax and Earnings from Unconsolidated Affiliates (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Segment Reporting [Abstract] | |||
Earnings (loss) from operations | $ 118 | $ 41 | $ 168.4 |
Interest and foreign exchange | 57.4 | 43.3 | 43.6 |
Net loss on extinguishment of debt | 6.3 | ||
Earnings (loss) before income tax and earnings from unconsolidated affiliates | $ 60.6 | $ (8.6) | $ 124.8 |
Customer Concentration - Additi
Customer Concentration - Additional Information (Detail) - Customer | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Concentration Risk [Line Items] | |||
Number of customer accounted for more than 10% of revenue | 3 | 2 | 2 |
Number of customer accounted for more than 10% of accounts receivable | 1 | 0 | |
Sales Revenue, Net | Customer Concentration Risk | Customer One Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 16% | 13% | 15% |
Sales Revenue, Net | Customer Concentration Risk | Customer Two Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12% | 13% | 11% |
Sales Revenue, Net | Customer Concentration Risk | Customer Three Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11% | ||
Accounts Receivable | Customer Concentration Risk | Customer One Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12% |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Lessor and Lessee, Lease, Description [Line Items] | |||
Accumulated depreciation | $ 596.7 | $ 556.1 | |
Depreciation expense | $ 70.7 | 75.3 | $ 86.6 |
Finance lease option to extend | options to extend up to 15 years | ||
Leasing & Management Services | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Operating lease rental revenues | $ 66.8 | $ 69.4 | $ 38.7 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax |
Car Hire Utilization Arrangements | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Operating lease rental revenues | $ 18.1 | $ 17.1 | $ 11.2 |
Minimum | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Sublease period | 1 year | ||
Financing lease remaining lease term | 1 year | ||
Maximum | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Sublease period | 14 years | ||
Financing lease remaining lease term | 76 years | ||
Equipment on Operating Lease | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Accumulated depreciation | $ 48.6 | 34.4 | 33.4 |
Depreciation expense | $ 22 | $ 13.8 | $ 11.6 |
Lease Commitments - Aggregate M
Lease Commitments - Aggregate Minimum Future Amounts Receivable Under All Non-Cancelable Operating Leases and Subleases (Detail) $ in Millions | Aug. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 46.4 |
2024 | 37.7 |
2025 | 30.3 |
2026 | 26.6 |
2027 | 22.8 |
Thereafter | 51.2 |
Operating Leases, Future Minimum Payments Receivable, Total | $ 215 |
Lease Commitments - Components
Lease Commitments - Components of Operating Lease Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Leases [Abstract] | |||
Operating lease expense | $ 10.7 | $ 13.2 | $ 15.3 |
Short-term lease expense | 6 | 5.3 | 8.3 |
Total | $ 16.7 | $ 18.5 | $ 23.6 |
Lease Commitments - Aggregate_2
Lease Commitments - Aggregate Minimum Future Amounts Payable Under Operating Leases (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 12.9 | |
2024 | 11.1 | |
2025 | 8.4 | |
2026 | 7.3 | |
2027 | 4.6 | |
Thereafter | 17.4 | |
Total lease payments | 61.7 | |
Less: Imputed interest | (5.3) | |
Operating Lease, Liability | $ 56.4 | $ 42.6 |
Operating Lease Liability Statement Of Financial Position [Extensible List] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities |
Lease Commitments - Additiona_2
Lease Commitments - Additional Information Related to Company's Leases (Detail) | Aug. 31, 2022 |
Leases [Abstract] | |
Weighted average remaining lease term | 11 years 4 months 24 days |
Weighted average discount rate | 2.30% |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Cash Flow Information Related to Leases (Detail) $ in Millions | 12 Months Ended |
Aug. 31, 2022 USD ($) | |
Cash Flow, Operating Activities, Lessee [Abstract] | |
Operating cash flows from operating leases | $ 11.4 |
ROU assets obtained in exchange for new operating lease liabilities | $ 24.7 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 204 Months Ended | ||
Jan. 06, 2017 USD ($) Segment | Dec. 31, 2016 USD ($) | Aug. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | |||
Remedial investigation and feasibility study | $ 110,000,000 | ||
Civil penalty | $ 1,000,000 | ||
Performance Guarantee | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Letter of credit facility outstanding amount | $ 6,900,000 | ||
Portland Harbor Superfund Site | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of sediment decision units | Segment | 15 | ||
Estimated undiscounted cost | $ 1,700,000,000 | ||
Period for remedial action | 13 years | ||
Period for monitoring | 30 years | ||
Portland Harbor Superfund Site | Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Accuracy of cost estimate | (30.00%) | ||
Portland Harbor Superfund Site | Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Accuracy of cost estimate | 50% |
Fair Value Measures - Assets an
Fair Value Measures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 | |
Assets: | |||
Nonqualified savings plan investments | $ 40.3 | $ 47.7 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | 21.4 | 0.1 | |
Nonqualified savings plan investments | 40.3 | 47.7 | |
Cash equivalents | 119.4 | 228.9 | |
Assets, Fair Value Disclosure, Total | 181.1 | 276.7 | |
Liabilities: | |||
Derivative financial instruments | 3 | 10.4 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Nonqualified savings plan investments | 40.3 | 47.7 | |
Cash equivalents | 119.4 | 228.9 | |
Assets, Fair Value Disclosure, Total | 159.7 | 276.6 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | [1] | 21.4 | 0.1 |
Assets, Fair Value Disclosure, Total | [1] | 21.4 | 0 |
Liabilities: | |||
Derivative financial instruments | [1] | $ 3 | $ 10.4 |
[1] Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 13 - Derivative Instruments for further discussion. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2021 | |
Carrying (Reported) Amount, Fair Value Disclosure | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | [1] | $ 1,289 | $ 913.8 |
Estimate of Fair Value, Fair Value Disclosure | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | $ 1,231.2 | $ 935.9 | |
[1] Carrying amount disclosed in this table excludes debt discount and debt issuance costs. |