Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Aug. 31, 2015 | Oct. 23, 2015 | Feb. 28, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GBX | ||
Entity Registrant Name | GREENBRIER COMPANIES INC | ||
Entity Central Index Key | 923,120 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 28,464,454 | ||
Entity Public Float | $ 1,418,743,180 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 172,930 | $ 184,916 |
Restricted cash | 8,869 | 20,140 |
Accounts receivable, net | 196,029 | 199,679 |
Inventories | 445,535 | 305,656 |
Leased railcars for syndication | 212,534 | 125,850 |
Equipment on operating leases, net | 255,391 | 258,848 |
Property, plant and equipment, net | 303,135 | 243,698 |
Investment in unconsolidated affiliates | 87,270 | 69,359 |
Intangibles and other assets, net | 65,554 | 65,757 |
Goodwill | 43,265 | 43,265 |
Total assets | 1,790,512 | 1,517,168 |
Liabilities and Equity | ||
Revolving notes | 50,888 | 13,081 |
Accounts payable and accrued liabilities | 455,213 | 383,289 |
Deferred income taxes | 60,657 | 81,383 |
Deferred revenue | 33,836 | 20,603 |
Notes payable | $ 326,429 | $ 445,091 |
Commitments and contingencies (Notes 21 & 22) | ||
Greenbrier | ||
Preferred stock -without par value; 25,000 shares authorized; none outstanding | ||
Common stock -without par value; 50,000 shares authorized; 28,907 and 27,364 outstanding at August 31, 2015 and 2014 | $ 0 | $ 0 |
Additional paid-in capital | 295,444 | 235,763 |
Retained earnings | 458,599 | 282,559 |
Accumulated other comprehensive loss | (21,205) | (6,932) |
Total equity - Greenbrier | 732,838 | 511,390 |
Noncontrolling interest | 130,651 | 62,331 |
Total equity | 863,489 | 573,721 |
Liabilities and Equity | $ 1,790,512 | $ 1,517,168 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2015 | Aug. 31, 2014 |
Preferred stock, without par value | ||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, outstanding | ||
Common stock, without par value | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares outstanding | 28,907,000 | 27,364,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | ||||
Revenue | ||||||
Revenue | [1] | $ 2,605,278 | $ 2,203,962 | $ 1,756,418 | ||
Cost of revenue | ||||||
Cost of revenue | 2,067,925 | 1,881,742 | 1,550,045 | |||
Margin | 537,353 | 322,220 | 206,373 | |||
Selling and administrative | 151,791 | 125,270 | 103,175 | |||
Net gain on disposition of equipment | (1,330) | (15,039) | (18,072) | |||
Gain on contribution to joint venture | (29,006) | |||||
Goodwill impairment | 76,900 | |||||
Restructuring charges | 1,475 | 2,719 | ||||
Earnings from operations | 386,892 | 239,520 | 41,651 | |||
Other costs | ||||||
Interest and foreign exchange | 11,179 | 18,695 | 22,158 | |||
Earnings before income tax and earnings from unconsolidated affiliates | 375,713 | 220,825 | 19,493 | |||
Income tax (expense) benefit | (112,160) | (72,401) | (25,060) | |||
Earnings (loss) before earnings from unconsolidated affiliates | 263,553 | 148,424 | (5,567) | |||
Earnings from unconsolidated affiliates | 1,756 | 1,355 | 186 | |||
Net earnings (loss) | 265,309 | 149,779 | (5,381) | |||
Net earnings attributable to noncontrolling interest | (72,477) | (37,860) | (5,667) | |||
Net earnings (loss) attributable to Greenbrier | $ 192,832 | $ 111,919 | $ (11,048) | |||
Basic earnings (loss) per common share: | $ 6.85 | [2] | $ 3.97 | [2] | $ (0.41) | |
Diluted earnings (loss) per common share: | $ 5.93 | [2],[3] | $ 3.44 | [2],[3] | $ (0.41) | |
Weighted average common shares: | ||||||
Basic | [4] | 28,151 | 28,164 | 26,678 | ||
Diluted | 33,328 | 34,209 | 26,678 | |||
Dividends declared per common share | $ 0.60 | $ 0.15 | ||||
Manufacturing | ||||||
Revenue | ||||||
Revenue | $ 2,136,051 | $ 1,624,916 | $ 1,215,734 | |||
Cost of revenue | ||||||
Cost of revenue | 1,691,414 | 1,374,008 | 1,082,889 | |||
Wheels & Parts | ||||||
Revenue | ||||||
Revenue | 371,237 | 495,627 | 469,222 | |||
Cost of revenue | ||||||
Cost of revenue | 334,680 | 463,938 | 431,501 | |||
Goodwill impairment | 76,900 | |||||
Leasing & Services | ||||||
Revenue | ||||||
Revenue | 97,990 | 83,419 | 71,462 | |||
Cost of revenue | ||||||
Cost of revenue | $ 41,831 | $ 43,796 | $ 35,655 | |||
[1] | Revenue is presented on the basis of geographic location of customers. | |||||
[2] | Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings. | |||||
[3] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on convertible notes Weighted average diluted common shares outstanding | |||||
[4] | Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria through target levels of performance, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. Weighted average basic common shares outstanding exclude 0.9 million shares of unvested restricted stock and restricted stock units for the year ended August 31, 2013 as they are anti-dilutive due to a net loss. No restricted stock or restricted stock units were anti-dilutive for the years ended August 31, 2015 and 2014. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | ||
Net earnings (loss) | $ 97,956 | $ 70,325 | $ 61,046 | $ 35,982 | $ 60,133 | $ 46,096 | $ 20,553 | $ 22,997 | $ 265,309 | $ 149,779 | $ (5,381) | |
Other comprehensive income (loss) | ||||||||||||
Translation adjustment | (14,009) | 116 | 1,056 | |||||||||
Reclassification of derivative financial instruments recognized in net earnings (loss) | [1] | 737 | 471 | (561) | ||||||||
Unrealized loss on derivative financial instruments | [2] | (1,330) | (1,019) | (399) | ||||||||
Other (net of tax effect) | 173 | 10 | (203) | |||||||||
Other comprehensive income (loss) | (14,429) | (422) | (107) | |||||||||
Comprehensive income (loss) | 250,880 | 149,357 | (5,488) | |||||||||
Comprehensive income attributable to noncontrolling interest | (72,321) | (37,866) | (5,695) | |||||||||
Comprehensive income (loss) attributable to Greenbrier | $ 178,559 | $ 111,491 | $ (11,183) | |||||||||
[1] | Net of tax of effect of $0.6 million, $0.5 million and $0.3 million for the years ended August 31, 2015, 2014 and 2013. | |||||||||||
[2] | Net of tax of effect of $1.0 million, $0.7 million and $0.2 million for the years ended August 31, 2015, 2014 and 2013. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Reclassification of derivative financial instruments recognized in net earnings, tax | $ 0.6 | $ 0.5 | $ 0.3 |
Unrealized gain (loss) on derivative financial instruments, tax | $ 1 | $ 0.7 | $ 0.2 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Attributable to Greenbrier | Attributable to Noncontrolling Interest |
Beginning balance (in shares) at Aug. 31, 2012 | 27,143 | ||||||
Beginning balance at Aug. 31, 2012 | $ 453,645 | $ 252,256 | $ 185,890 | $ (6,369) | $ 431,777 | $ 21,868 | |
Net earnings (loss) | (5,381) | (11,048) | (11,048) | 5,667 | |||
Other comprehensive income (loss), net | (107) | (135) | (135) | 28 | |||
Noncontrolling interest adjustments | (2,144) | (2,144) | |||||
Investment by joint venture partner | 3,206 | 3,206 | |||||
Restricted stock awards (net of cancellations and expense) (in shares) | 27 | ||||||
Restricted stock awards (net of cancellations and expense) | 8,913 | 8,913 | 8,913 | ||||
Unamortized restricted stock | (8,921) | (8,921) | (8,921) | ||||
Restricted stock amortization | 6,716 | 6,716 | 6,716 | ||||
Excess tax benefit from restricted stock awards | 900 | 900 | 900 | ||||
Warrants exercised | 914 | ||||||
Ending Balance (in shares) at Aug. 31, 2013 | 28,084 | ||||||
Ending Balance at Aug. 31, 2013 | 456,827 | 259,864 | 174,842 | (6,504) | 428,202 | 28,625 | |
Net earnings (loss) | 149,779 | 111,919 | 111,919 | 37,860 | |||
Other comprehensive income (loss), net | (422) | (428) | (428) | 6 | |||
Noncontrolling interest adjustments | 2,774 | 2,774 | |||||
Investment by joint venture partner | 419 | 419 | |||||
Joint venture partner distribution declared | (7,353) | (7,353) | |||||
Restricted stock awards (net of cancellations and expense) (in shares) | 44 | ||||||
Restricted stock awards (net of cancellations and expense) | 11,303 | 11,303 | 11,303 | ||||
Unamortized restricted stock | (12,360) | (12,360) | (12,360) | ||||
Restricted stock amortization | 11,285 | 11,285 | 11,285 | ||||
Excess tax benefit from restricted stock awards | 109 | 109 | 109 | ||||
Cash dividends | (4,202) | (4,202) | (4,202) | ||||
Repurchase of stock | $ (34,438) | (34,438) | (34,438) | ||||
Repurchase of stock, shares | (764) | ||||||
Ending Balance (in shares) at Aug. 31, 2014 | 27,364 | 27,364 | |||||
Ending Balance at Aug. 31, 2014 | $ 573,721 | 235,763 | 282,559 | (6,932) | 511,390 | 62,331 | |
Net earnings (loss) | 265,309 | 192,832 | 192,832 | 72,477 | |||
Other comprehensive income (loss), net | (14,429) | (14,273) | (14,273) | (156) | |||
Noncontrolling interest adjustments | 17,215 | 17,215 | |||||
Purchase of noncontrolling interest | (80) | (80) | |||||
Joint venture partner distribution declared | (21,136) | (21,136) | |||||
Restricted stock awards (net of cancellations and expense) (in shares) | (15) | ||||||
Restricted stock awards (net of cancellations and expense) | 22,622 | 22,622 | 22,622 | ||||
Unamortized restricted stock | (24,477) | (24,477) | (24,477) | ||||
Restricted stock amortization | 19,459 | 19,459 | 19,459 | ||||
Excess tax benefit from restricted stock awards | 2,908 | 2,908 | 2,908 | ||||
Conversion of convertible notes, net of debt issuance costs (in shares) | 2,945 | ||||||
Conversion of convertible notes, net of debt issuance costs | 109,387 | 109,387 | 109,387 | ||||
Cash dividends | (16,792) | (16,792) | (16,792) | ||||
Repurchase of stock | $ (70,218) | (70,218) | (70,218) | ||||
Repurchase of stock, shares | (1,387) | ||||||
Ending Balance (in shares) at Aug. 31, 2015 | 28,907 | 28,907 | |||||
Ending Balance at Aug. 31, 2015 | $ 863,489 | $ 295,444 | $ 458,599 | $ (21,205) | $ 732,838 | $ 130,651 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Cash flows from operating activities: | |||
Net earnings (loss) | $ 265,309 | $ 149,779 | $ (5,381) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||
Deferred income taxes | (20,151) | (4,687) | (9,662) |
Depreciation and amortization | 45,156 | 40,422 | 41,447 |
Net gain on disposition of equipment | (1,330) | (15,039) | (18,072) |
Accretion of debt discount | 2,455 | ||
Stock based compensation expense | 19,459 | 11,285 | 6,302 |
Gain on contribution to joint venture | (29,006) | ||
Goodwill impairment | 76,900 | ||
Noncontrolling interest adjustments | 17,215 | 2,774 | (2,144) |
Other | 1,184 | 576 | 1,089 |
Decrease (increase) in assets: | |||
Accounts receivable, net | 13,652 | (23,749) | (7,323) |
Inventories | (143,849) | (9,675) | 19,045 |
Leased railcars for syndication | (90,614) | (57,779) | 22,881 |
Other | 575 | (4,069) | 969 |
Increase (decrease) in liabilities: | |||
Accounts payable and accrued liabilities | 72,419 | 63,362 | (15,429) |
Deferred revenue | 13,308 | 11,713 | (8,485) |
Net cash provided by operating activities | 192,333 | 135,907 | 104,592 |
Cash flows from investing activities: | |||
Proceeds from sales of assets | 5,295 | 54,235 | 75,338 |
Capital expenditures | (105,989) | (70,227) | (60,827) |
Decrease (increase) in restricted cash | 271 | (333) | (2,530) |
Investment in and advances to unconsolidated affiliates | (34,453) | (13,753) | (2,240) |
Other | 3,345 | (3,582) | |
Net cash provided by (used in) investing activities | (131,531) | (30,078) | 6,159 |
Cash flows from financing activities: | |||
Net changes in revolving notes with maturities of 90 days or less | 49,000 | (16,396) | |
Proceeds from revolving notes with maturities longer than 90 days | 44,451 | 37,819 | 38,177 |
Repayments of revolving notes with maturities longer than 90 days | (55,644) | (72,947) | (34,966) |
Proceeds from issuance of notes payable | 200,000 | 2,186 | |
Repayments of notes payable | (7,475) | (128,797) | (58,831) |
Debt issuance costs | (382) | ||
Decrease (increase) in restricted cash | 11,000 | (11,000) | |
Repurchase of stock | (69,950) | (33,583) | |
Dividends | (16,491) | (4,123) | |
Cash distribution to joint venture partner | (20,375) | (5,076) | |
Investment by joint venture partner | 419 | 3,206 | |
Excess tax benefit from restricted stock awards | 2,908 | 109 | 900 |
Other | (248) | (8) | |
Net cash provided by (used in) financing activities | (62,824) | (17,561) | (65,732) |
Effect of exchange rate changes | (9,964) | (787) | (1,155) |
Increase (decrease) in cash and cash equivalents | (11,986) | 87,481 | 43,864 |
Cash and cash equivalents | |||
Beginning of period | 184,916 | 97,435 | 53,571 |
End of period | 172,930 | 184,916 | 97,435 |
Cash paid during the period for: | |||
Interest | 15,535 | 14,347 | 14,964 |
Income taxes, net | 139,960 | 69,263 | 29,680 |
Non-cash activity | |||
Conversion of convertible notes, net of debt issuance costs | 109,387 | ||
Capital expenditures accrued in Accounts payable and accrued liabilities | 8,758 | 3,349 | |
Transfer of Property, plant and equipment, net to Intangibles and other assets, net | 4,045 | 1,856 | |
Transfer of Leased railcars for syndication to Equipment on operating leases | 3,313 | 6,437 | |
Repurchase of stock accrued in Accounts payable and accrued liabilities | 1,125 | ||
Dividends declared and accrued in Accounts payable and accrued liabilities | $ 301 | 79 | |
Transfer of Inventories to Accounts receivable, net | $ 20,986 | ||
Transfer of Equipment on operating leases to Inventories | $ 17,826 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Aug. 31, 2015 | |
Nature of Operations | Note 1 - Nature of Operations The Greenbrier Companies, Inc. and its subsidiaries currently operate in four reportable segments: Manufacturing; Wheels & Parts; Leasing & Services; and GBW Joint Venture. The segments are operationally integrated. The Manufacturing segment, operating from facilities in the United States, Mexico and Poland, produces double-stack intermodal railcars, tank cars, conventional railcars, automotive railcar products and marine vessels. The Wheels & Parts segment performs wheel and axle servicing in North America and production of a variety of parts for the railroad industry. The Leasing & Services segment owns approximately 9,300 railcars (6,300 railcars held as equipment on operating leases, 2,800 held as leased railcars for syndication and 200 held as finished goods inventory) and provides management services for approximately 260,000 railcars for railroads, shippers, carriers, institutional investors and other leasing and transportation companies in North America. The Company’s GBW Joint Venture provides Repair services through 33 shops throughout North America, 12 of which are currently tank car certified by the AAR. Greenbrier also produces rail castings and tank heads through unconsolidated joint ventures and has a 19.5% ownership stake in a railcar manufacturer in Brazil with an option to acquire an additional 40.5% ownership interest which can be exercised no later than December 30, 2017. The Wheels & Parts segment (previously known as Wheels, Repair & Parts through 2014) included the results of operations for the Company’s Repair operations through July 18, 2014. On July 18, 2014 the Company and Watco, its joint venture partner, contributed their respective Repair operations to GBW, an unconsolidated 50/50 joint venture. After July 18, 2014, the results of GBW were included as part of Earnings (loss) from unconsolidated affiliates as the Company accounts for its interest in GBW under the equity method of accounting. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2015 | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Principles of consolidation - 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 - Foreign currency translation - Cash and cash equivalents - Restricted cash - Accounts receivable - As of August 31, (In thousands) 2015 2014 2013 Allowance for doubtful accounts Balance at beginning of period $ 2,033 $ 3,894 $ 3,525 Additions, net of reversals 684 604 543 Usage (108 ) (2,524 ) (285 ) Currency translation effect (160 ) 59 111 Balance at end of period $ 2,449 $ 2,033 $ 3,894 Inventories - Leased railcars for syndication - Equipment on operating leases, net - Investment in unconsolidated affiliates - Property, plant and equipment - Depreciable Buildings and improvements 10 – 25 years Machinery and equipment 3 – 15 years Other 3 – 7 years Goodwill - Intangible and other assets, net - Impairment of long-lived assets - Maintenance obligations - Warranty accruals - Income taxes - Noncontrolling interest - Accumulated other comprehensive loss – (In thousands) Unrealized Foreign Other Accumulated Balance, August 31, 2014 $ (1,601 ) $ (4,813 ) $ (518 ) $ (6,932 ) 2015 activity (593 ) (13,853 ) 1 173 (14,273 ) Balance, August 31, 2015 $ (2,194 ) $ (18,666 ) $ (345 ) $ (21,205 ) 1 Primarily relates to the foreign currency translation of the Company’s Zloty functional currency operations in Poland to U.S. Dollars. The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Operations, with presentation location, were as follows: Year Ended August 31, (In thousands) 2015 2014 Financial Statement Location (Gain) loss on derivative financial instruments: Foreign exchange contracts $ (457 ) $ (741 ) Revenue Interest rate swap contracts 1,786 1,737 Interest and foreign exchange 1,329 996 Total before tax (592 ) (525 ) Tax expense $ 737 $ 471 Net of tax Revenue recognition - Railcars are generally manufactured, repaired or refurbished under firm orders from third parties. Revenue is recognized when new, used, refurbished or repaired railcars are completed, accepted by an unaffiliated customer and contractual contingencies removed. Marine revenues are either recognized on the percentage of completion method during the construction period or on the completed contract method based on the terms of the contract. Under the percentage of completion method, revenue is recognized based on the progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. Under the completed contract method, revenue is not recognized until the project has been fully completed. Cash payments received prior to meeting revenue recognition criteria are accounted for in Deferred revenue. Operating lease revenue is recognized as earned under the lease terms. Certain leases are operated under car hire arrangements whereby revenue is earned based on utilization, car hire rates and terms specified in the lease agreement. The Company sells railcars with leases attached to financial investors. Revenue associated with railcars that the Company has manufactured are recognized in Manufacturing once sold. Revenue associated with railcars which were obtained from a third party and subsequently sold are recognized in Leasing & Services. In addition the Company will often perform management or maintenance services at market rates for these railcars. The Company evaluates the terms of any remarketing agreements and any contractual provisions that represent retained risk and the level of retained risk based on those provisions. The Company applies a 10% threshold to determine whether the level of retained risk exceeds 10% of the individual fair value of the rail cars delivered. For any contracts with multiple elements (i.e. railcars, maintenance, management services, etc) the Company allocates revenue among the deliverables primarily based upon objective and reliable evidence of the fair value of each element in the arrangement. If objective and reliable evidence of fair value of any element is not available, the company will use its estimated selling price for purposes of allocating the total arrangement consideration among the elements. Interest and foreign exchange - Years ended August 31, (In thousands) 2015 2014 2013 Interest and foreign exchange: Interest and other expense $ 18,975 $ 18,306 $ 19,203 Accretion of convertible debt discount – – 2,455 Foreign exchange (gain) loss (7,796 ) 389 500 $ 11,179 $ 18,695 $ 22,158 Research and development - Forward exchange contracts - Interest rate instruments - Net earnings per share - Diluted EPS is calculated using the more dilutive of two approaches. The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2026 Convertible notes and restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 2018 Convertible notes. Under the “if converted method”, debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes. The 2026 Convertible notes would only be included in the calculation of both approaches if the average stock price is greater than the initial conversion price using the treasury stock method. Stock-based compensation - Management estimates - Prospective accounting changes In April 2015, the FASB issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs |
Gain on Contribution to Joint V
Gain on Contribution to Joint Venture | 12 Months Ended |
Aug. 31, 2015 | |
Gain on Contribution to Joint Venture | Note 3 - Gain on Contribution to Joint Venture On July 18, 2014 the Company and Watco contributed its respective Repair operations to a newly formed entity, GBW, a 50/50 unconsolidated joint venture. The Company accounts for its interest in GBW under the equity method of accounting. Upon formation of GBW, the Company recognized a pre-tax non-cash gain of $29.0 million for the year ended August 31, 2014 which was calculated as the fair value of the Company’s 50% share in GBW, less cash and intangibles contributed to GBW and an allocation of goodwill attributed to the Repair business the Company contributed to GBW. The gain was included as Gain on contribution to joint venture in the Consolidated Statements of Operations. |
Restructuring
Restructuring | 12 Months Ended |
Aug. 31, 2015 | |
Restructuring | Note 4 - Restructuring During 2013, the Company implemented a restructuring plan to sell or close certain wheels, repair and parts facilities to enhance margins and improve capital efficiency and completed the restructuring plan during 2014. Restructuring charges related to this plan totaled $1.5 million and $2.7 million for the years ended August 31, 2014 and 2013 and were included in the Consolidated Statement of Operations. All of the restructuring charges for the years ended August 31, 2014 and 2013 and the restructuring reserve related to the Company’s wheels, repair and parts operations. (In thousands) Accrual at Charged to Paid or Accrual at Employee termination costs $ 1,409 $ 1,290 $ 2,699 $ – Other costs 299 185 484 – Balance, August 31, 2014 $ 1,708 $ 1,475 $ 3,183 $ – (In thousands) Accrual at Charged to Paid or Accrual at Employee termination costs $ – $ 1,610 $ 201 $ 1,409 Contract termination costs – 50 50 – Other costs – 1,059 760 299 Balance, August 31, 2013 $ – $ 2,719 $ 1,011 $ 1,708 |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2015 | |
Inventories | Note 5 - Inventories As of August 31, (In thousands) 2015 2014 Manufacturing supplies and raw materials $ 311,880 $ 235,903 Work-in-process 75,032 48,853 Finished goods 61,302 23,766 Excess and obsolete adjustment (2,679 ) (2,866 ) $ 445,535 $ 305,656 As of August 31, (In thousands) 2015 2014 2013 Excess and obsolete adjustment Balance at beginning of period $ 2,866 $ 4,228 $ 5,132 Charge to cost of revenue 2,564 1,945 2,661 Disposition of inventory (2,434 ) (3,307 ) (3,614 ) Currency translation effect (317 ) – 49 Balance at end of period $ 2,679 $ 2,866 $ 4,228 |
Equipment on Operating Leases,
Equipment on Operating Leases, net | 12 Months Ended |
Aug. 31, 2015 | |
Equipment on Operating Leases, net | Note 6 - Equipment on Operating Leases, net Equipment on operating leases is reported net of accumulated depreciation of $96.6 million and $93.9 million as of August 31, 2015 and 2014. Depreciation expense was $9.4 million, $9.8 million and $12.0 million as of August 31, 2015, 2014 and 2013. In addition, certain railcar equipment leased-in by the Company on operating leases (see Note 21 Lease Commitments) is subleased to customers under non-cancelable operating leases. Aggregate minimum future amounts receivable under all non-cancelable operating leases and subleases are as follows: (In thousands) Year ending August 31, 2016 $ 26,074 2017 21,411 2018 13,664 2019 8,239 2020 3,508 Thereafter 1,043 $ 73,939 Certain equipment is also operated under daily, monthly or car hire utilization arrangements. Associated revenue amounted to $20.2 million, $24.8 million and $24.3 million for the years ended August 31, 2015, 2014 and 2013. |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Aug. 31, 2015 | |
Property, Plant and Equipment, net | Note 7 - Property, Plant and Equipment, net As of August 31, (In thousands) 2015 2014 Land and improvements $ 46,849 $ 38,356 Machinery and equipment 283,032 242,911 Buildings and improvements 130,577 118,795 Construction in progress 63,518 58,164 Other 41,252 38,636 565,228 496,862 Accumulated depreciation (262,093 ) (253,164 ) $ 303,135 $ 243,698 Depreciation expense was $31.4 million, $25.8 million and $25.1 million as of August 31, 2015, 2014 and 2013. |
Goodwill
Goodwill | 12 Months Ended |
Aug. 31, 2015 | |
Goodwill | Note 8 - Goodwill The Company’s goodwill balance of $43.3 million as of August 31, 2015 and 2014 related to our Wheels & Parts segment. The gross goodwill balance before accumulated goodwill impairment losses and other reductions was $195.8 million as of August 31, 2015. The total accumulated goodwill impairment losses were $128.2 million and other reductions of $24.3 million as of August 31, 2015. The Company performs a goodwill impairment test annually during the third quarter. Goodwill is also tested more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists. The provisions of ASC 350, Intangibles – Goodwill and Other, require the Company to perform a two-step impairment test on goodwill. In the first step, the Company compares the fair value of each reporting unit with its carrying value. The Company determines the fair value of the reporting unit based on a weighting of income and market approaches. Under the income approach, the Company calculates the fair value of a reporting unit based on the present value of estimated future cash flows. Under the market approach, the Company estimates the fair value based on observed market multiples for comparable businesses. In the second step, the Company compares the implied fair value of goodwill to its carrying value. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit to all of the assets and liabilities of that unit as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the price paid to acquire the reporting unit. The excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is considered the implied fair value of goodwill. An impairment loss is recorded to the extent that the carrying amount of the reporting unit goodwill exceeded the implied fair value of that goodwill. The Company completed its annual goodwill impairment test during the third quarter of 2015 and concluded that goodwill was not impaired. In July 2014, the Company and Watco formed GBW, a 50/50 joint venture. The Company contributed cash at closing and other assets to GBW. As a result, the Company reduced goodwill by $14.2 million during the year ended August 31, 2014, which relates to goodwill associated with the Company’s Repair operations contributed to GBW. The Company completed its annual goodwill impairment test during the third quarter of 2013 and a pre-tax non-cash impairment charge of $76.9 million was recorded for the year ended August 31, 2013, related to the Wheels & Parts segment, as the carrying amount exceeded the implied fair value of goodwill. |
Intangibles and Other Assets, n
Intangibles and Other Assets, net | 12 Months Ended |
Aug. 31, 2015 | |
Intangibles and Other Assets, net | Note 9 - 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 thousands) 2015 2014 Intangible assets subject to amortization: Customer relationships $ 65,023 $ 65,023 Accumulated amortization (33,828 ) (30,282 ) Other intangibles 3,422 3,699 Accumulated amortization (3,121 ) (3,156 ) 31,496 35,284 Intangible assets not subject to amortization 912 912 Prepaid and other assets 13,111 11,347 Nonqualified savings plan investments 11,815 10,223 Debt issuance costs, net 3,823 7,602 Assets held for sale 4,397 389 $ 65,554 $ 65,757 Amortization expense for the years ended August 31, 2015, 2014 and 2013 was $3.7 million, $4.5 million and $4.3 million. Amortization expense for the years ending August 31, 2016, 2017, 2018, 2019 and 2020 is expected to be $3.6 million, $3.5 million, $3.4 million, $3.4 million and $3.4 million. |
Revolving Notes
Revolving Notes | 12 Months Ended |
Aug. 31, 2015 | |
Revolving Notes | Note 10 - Revolving Notes Senior secured credit facilities, consisting of three components, aggregated to $366.1 million as of August 31, 2015. As of August 31, 2015, a $290.0 million revolving line of credit, maturing June 2016, secured by substantially all the Company’s assets in the U.S. not otherwise pledged as security for term loans, was available to provide working capital and interim financing of equipment, principally for the U.S. and Mexican operations. Advances under this facility bear interest at LIBOR plus 2.25% or Prime plus 1.25% depending on the type of borrowing. Available borrowings under the credit facility are generally based on defined levels of inventory, receivables, property, plant and equipment and leased equipment, as well as total debt to consolidated capitalization and fixed charges coverage ratios. In October 2015, this revolving line of credit was renewed on terms similar to the existing facility and increased to $550.0 million with a new maturity date of October 2020. In addition, advances under this renewed facility bear interest at LIBOR plus 1.75% or Prime plus 0.75% depending on the type of borrowing. As of August 31, 2015, lines of credit totaling $16.1 million secured by certain of the Company’s European assets, with various variable rates that range from Warsaw Interbank Offered Rate (WIBOR) plus 1.2% to WIBOR plus 1.3%, were available for working capital needs of the European manufacturing operation. European credit facilities are continually being renewed. Currently these European credit facilities have maturities that range from February 2016 through June 2017. As of August 31, 2015, the Company’s Mexican joint venture has three lines of credit totaling $60.0 million. The first line of credit provides up to $10.0 million and is secured by certain of the joint venture’s accounts receivable and inventory. Advances under this facility bear interest at LIBOR plus 2.5%. The Mexican joint venture will be able to draw amounts available under this facility through June 2016. The second line of credit provides up to $30.0 million and is fully guaranteed by each of the joint venture partners, including the Company. Advances under this facility bear interest at LIBOR plus 2.0%. The Mexican joint venture will be able to draw against this facility through January 2019. The third line of credit provides up to $20.0 million, of which the Company and its joint venture partner have each guaranteed 50%. Advances under this facility bear interest at LIBOR plus 2.0%. The Mexican joint venture will be able to draw amounts available under this facility through August 2017. As of August 31, 2015, outstanding commitments under the senior secured credit facilities consisted of $47.2 million in letters of credit and $49.0 million in revolving notes under the North American credit facility and $1.9 million outstanding in revolving notes under the Mexican joint venture credit facilities. As of August 31, 2014, outstanding borrowings under the senior secured credit facilities consisted of $9.6 million in letters of credit under the North American credit facility and $13.1 million outstanding in revolving notes under the Mexican joint venture credit facilities. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Aug. 31, 2015 | |
Accounts Payable and Accrued Liabilities | Note 11 - Accounts Payable and Accrued Liabilities As of August 31, (In thousands) 2015 2014 Trade payables $ 263,665 $ 204,744 Accrued payroll and related liabilities 70,836 64,959 Other accrued liabilities 64,584 66,421 Income taxes payable 22,465 19,709 Accrued maintenance 18,642 14,329 Accrued warranty 11,512 9,340 Other 3,509 3,787 $ 455,213 $ 383,289 |
Maintenance and Warranty Accrua
Maintenance and Warranty Accruals | 12 Months Ended |
Aug. 31, 2015 | |
Maintenance and Warranty Accruals | Note 12 - Maintenance and Warranty Accruals As of August 31, (In thousands) 2015 2014 2013 Accrued maintenance Balance at beginning of period $ 14,329 $ 11,420 $ 11,475 Charged to cost of revenue 13,622 11,423 9,003 Payments (9,309 ) (8,514 ) (9,058 ) Balance at end of period $ 18,642 $ 14,329 $ 11,420 Accrued warranty Balance at beginning of period $ 9,340 $ 12,128 $ 9,221 Charged to cost of revenue 7,206 2,205 6,157 Payments (4,703 ) (5,122 ) (3,315 ) Currency translation effect (331 ) 129 65 Balance at end of period $ 11,512 $ 9,340 $ 12,128 |
Notes Payable
Notes Payable | 12 Months Ended |
Aug. 31, 2015 | |
Notes Payable | Note 13 - Notes Payable As of August 31, (In thousands) 2015 2014 Convertible senior notes, due 2018 $ 119,063 $ 230,000 Convertible senior notes, due 2026 14,851 14,856 Term loans 192,515 199,985 Other notes payable – 250 $ 326,429 $ 445,091 Convertible senior notes, due 2018, bear interest at a fixed rate of 3.5%, paid semi-annually in arrears on April 1 st and October 1 st . The convertible notes will mature on April 1, 2018, unless earlier repurchased by the Company or converted in accordance with their terms. 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 26.2838 shares per $1,000 principal amount of the notes (which is equal to an initial conversion price of $38.05 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. There were $7.9 million in original debt issuance costs, included in Intangibles and other assets on the Consolidated Balance Sheets, which are being amortized using the effective interest method. The amortization expense is being included in Interest and foreign exchange on the Consolidated Statements of Operations. During 2015, $110.9 million in principal of the original $230.0 million was converted into 2.9 million shares of the Company’s common stock which resulted in a principal balance of $119.1 million as of August 31, 2015. Associated debt issuance costs of $1.5 million were removed from Intangibles and other assets, net and charged against additional paid in capital. Convertible senior notes, due 2026, bear interest at a fixed rate of 2.375%, paid semi-annually in arrears on May 15 th and November 15 th . In May 2013, the Company retired $52.9 million of its outstanding notes pursuant to a scheduled put option. The Company may be required to also pay contingent interest of 0.375% on the notes in certain circumstances. Greenbrier may redeem all or a portion of the notes at a redemption price equal to 100% of the principal amount of the notes plus accrued and unpaid interest. On May 15, 2016 and May 15, 2021 or in the event of certain circumstances or fundamental changes, holders can require the Company to repurchase all or a portion of their notes at a price equal to 100% of the principal amount of the notes plus accrued and unpaid interest. Payment on the convertible notes is guaranteed by substantially all of the Company’s material domestic subsidiaries. The convertible senior notes are convertible upon the occurrence of specified events into cash and shares, if any, of Greenbrier’s common stock at an initial conversion rate of 20.8125 shares per $1,000 principal amount of the notes (which is equal to an initial conversion price of $48.05 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. The value of the equity component was $14.9 million as of August 31, 2015 and 2014. The debt discount associated with the convertible senior notes was fully accreted using the effective interest rate method through May 2013 and the accretion expense was included in Interest and foreign exchange on the Consolidated Statements of Operations. The pre-tax accretion of the debt discount was $2.5 million for the years ended August 31, 2013. Term loans are primarily composed of: • In March 2014, the Company refinanced approximately $125 million of existing senior term debt, due in March 2014 and May 2015, secured by a pool of leased railcars with new 6-year $200 million senior term debt also secured by a pool of leased railcars and cash. The new debt bears a floating interest rate of LIBOR plus 1.75% with principal of $1.75 million paid quarterly in arrears and a balloon payment of $159.8 million due at maturity. An interest rate swap agreement was entered into on 50% of the initial balance to swap the floating interest rate of LIBOR plus 1.75% to a fixed rate of 3.7375%. The principal balance as of August 31, 2015 was $191.3 million. • Other term loans with an aggregate balance of $1.3 million as of August 31, 2015 and maturity dates ranging from November 2015 to February 2018. 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 sale leaseback transactions; 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. Principal payments on the notes payable are expected as follows: (In thousands) Year ending August 31, 2016 (1) $ 22,460 2017 7,437 2018 (2) 126,282 2019 7,000 2020 163,250 Thereafter – $ 326,429 (1) The repayment of the $14.9 million of Convertible senior notes due 2026 is assumed to occur in 2016, which is the next date holders can require the Company to repurchase all or a portion of the notes. (2) The repayment of the $119.1 million of Convertible senior notes due 2018 is assumed to occur at the scheduled maturity in 2018 instead of assuming an earlier conversion by the holders. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Aug. 31, 2015 | |
Derivative Instruments | Note 14 - 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, 2015 exchange rates, forward exchange contracts for the purchase of Polish Zloty and the sale of Euro and for the purchase of US Dollars and the sale of Saudi Riyal aggregated $386.2 million. The fair value of the contracts is included on the Consolidated Balance Sheets as Accounts payable and accrued liabilities when there is a loss, or as Accounts receivable, net when there is a gain. As the contracts mature at various dates through September 2018, any such gain or loss remaining will be recognized in manufacturing revenue along with the related transactions. In the event that the underlying sales 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 current year’s results of operations in Interest and foreign exchange. At August 31, 2015, an interest rate swap agreement maturing in March 2020 had a notional amount of $95.6 million. The fair value of the contract is included in Accounts payable and accrued liabilities on the Consolidated Balance Sheets. 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, 2015 interest rates, approximately $1.7 million would be reclassified to interest expense in the next 12 months. Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives August 31, August 31, 2015 2014 2015 2014 (In thousands) Balance sheet location Fair Fair Value Balance sheet location Fair Value Fair Value Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable $ 1,820 $ 129 Accounts payable and accrued liabilities $ 737 $ 704 Interest rate swap contracts Other assets – – Accounts payable and accrued liabilities 2,393 1,286 $ 1,820 $ 129 $ 3,130 $ 1,990 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable $ 93 $ 71 Accounts payable and accrued liabilities $ 76 $ 5 The Effect of Derivative Instruments on the Statement of Operations Derivatives in cash flow hedging relationships Location of gain (loss) recognized in income on derivative Gain (loss) recognized in Years ended 2015 2014 Foreign forward exchange contract Interest and foreign exchange $ (366 ) $ 87 Interest rate swap contracts Interest and foreign exchange 60 17 $ (306 ) $ 104 Derivatives in cash flow hedging relationships Gain (loss) Years ended August 31, Location of gain (loss) Gain (loss) Years ended August 31, Location of Gain Years 2015 2014 2015 2014 2015 2014 Foreign forward exchange contracts $ 457 $ 108 Revenue $ 457 $ 741 Revenue $ 2,843 $ 1,029 Interest rate swap contracts (2,936 ) (1,790 ) Interest and foreign exchange (1,786 ) (1,737 ) Interest and foreign exchange – – $ (2,479 ) $ (1,682 ) $ (1,329 ) $ (996 ) $ 2,843 $ 1,029 |
Equity
Equity | 12 Months Ended |
Aug. 31, 2015 | |
Equity | Note 15 – Equity In January 2011, the stockholders approved the 2010 Amended and Restated Stock Incentive Plan (formerly known as the 2005 Stock Incentive Plan as amended). This plan provides for the grant of incentive stock options, non-statutory stock options, restricted shares, restricted stock units and stock appreciation rights. There are no stock options or stock appreciation rights outstanding as of August 31, 2015. The Company currently grants restricted shares and restricted stock units. Restricted share grants are considered outstanding shares of common stock at the time they are issued. The holders of unvested restricted shares are entitled to voting rights and participation in dividends. The dividends are not forfeitable if the awards are later forfeited prior to vesting. The Company began granting restricted stock units during the year ended August 31, 2013. Shares associated with restricted stock unit awards are not considered legally outstanding shares of common stock until vested. Restricted stock unit awards, including performance-based awards, 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. In January 2013, the stockholders approved an amendment to the 2010 Amended and Restated Stock Incentive Plan to increase the total number of shares reserved for issuance by 1,500,000 shares. As a result, the maximum aggregate number of the Company’s common shares authorized for issuance is 4,325,000. On August 31, 2015 there were 905,139 shares available for grant compared to 1,144,143 and 1,384,997 shares available for grant as of the years ended August 31, 2014 and 2013. During the years ended August 31, 2015, 2014 and 2013, the Company awarded restricted share and restricted stock unit grants totaling 402,196, 269,665 and 387,986 shares which include performance-based grants. As of August 31, 2015, there were a total of 472,142 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 472,142 additional shares may be granted if performance-based restricted share and restricted stock unit awards vest at stretch levels of performance. These additional shares are associated with restricted share and restricted stock unit awards granted during the years ended August 31, 2015, 2014 and 2013. The fair value of awards granted was $24.6 million, $13.1 million and $9.2 million for the years ended August 31, 2015, 2014 and 2013. 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, 2015, 2014 and 2013 was $19.5 million, $11.3 million and $6.3 million and was recorded in Selling and administrative on the Consolidated Statements of Operations. Unamortized compensation cost related to restricted stock grants was $18.6 million as of August 31, 2015. The unvested restricted share and restricted stock unit grants were 815,496 and 816,090 as of August 31, 2015 and 2014. The following table summarizes restricted share and restricted stock unit grant transactions for shares, both vested and unvested, under the 2010 Amended and Restated Stock Incentive Plan: Shares Balance at August 31, 2012 (1) 2,565,350 Granted 387,986 Forfeited (13,333 ) Balance at August 31, 2013 (1) 2,940,003 Granted 269,665 Forfeited (28,811 ) Balance at August 31, 2014 (1) 3,180,857 Granted 402,196 Forfeited (163,192 ) Balance at August 31, 2015 (1) 3,419,861 (1) Balance represents cumulative grants net of forfeitures. Share Repurchase Program In October 2013, the Board of Directors authorized the Company to repurchase up to $50 million of the Company’s common stock. The Company completed this share repurchase program in October 2014. In October 2014, the Board of Directors authorized a new share repurchase program for the Company to repurchase up to an additional $50 million of the Company’s common stock. In January 2015, the Board of Directors authorized a $25 million increase to the October 2014 share repurchase program and in October 2015, the Board of Directors authorized an additional $100 million increase to the October 2014 repurchase program, bringing the total to $175 million. The share repurchase program expiration was extended from June 30, 2016 to January 1, 2018, but may be modified, suspended or discontinued at any time without prior notice. Under the share repurchase programs, 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 share repurchase programs do not obligate the Company to acquire any specific number of shares in any period. During the year ended August 31, 2015 and August 31, 2014, the Company repurchased a total of 1,386,993 shares for approximately $70.2 million and 764,546 shares for approximately $34.4 million, respectively, under these share repurchase programs. As of August 31, 2015 the Company had $20.4 million available under the $75 million share repurchase program. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 12 Months Ended |
Aug. 31, 2015 | |
Earnings (Loss) per Share | Note 16 - Earnings (Loss) per Share The shares used in the computation of the Company’s basic and diluted earnings (loss) per common share are reconciled as follows: Years ended August 31, (In thousands) 2015 2014 2013 Weighted average basic common shares outstanding (1) 28,151 28,164 26,678 Dilutive effect of 2018 Convertible notes (2) 5,130 6,045 – Dilutive effect of 2026 Convertible notes (3) 2 – – Dilutive effect of performance based restricted stock units (4) 45 – – Weighted average diluted common shares outstanding 33,328 34,209 26,678 (1) Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria through target levels of performance, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. Weighted average basic common shares outstanding exclude 0.9 million shares of unvested restricted stock and restricted stock units for the year ended August 31, 2013 as they are anti-dilutive due to a net loss. No restricted stock or restricted stock units were anti-dilutive for the years ended August 31, 2015 and 2014. (2) The dilutive effect of the 2018 Convertible notes was included for the years ended August, 2015 and 2014 as they were considered dilutive under the “if converted” method as further discussed below. The dilutive effect of the 2018 Convertible notes was excluded for the year ended August 31, 2013 due to a net loss. (3) The dilutive effect of the 2026 Convertible notes was included for the year ended August 31, 2015 as the average stock price was greater than $48.05, as further described below. The effect of the 2026 Convertible notes was excluded for the years ended August 31, 2014 and 2013 as the average stock price was less than $48.05 and therefore was considered anti-dilutive. (4) Restricted stock units that are 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. Dilutive EPS for the years ended August 31, 2015 and 2014 was calculated using the more dilutive of two approaches. The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2026 Convertible notes and performance based restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 2018 Convertible notes issued in March 2011. Under the “if converted” method, debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes. The 2026 Convertible notes are included in the calculation of both approaches using the treasury stock method when the average stock price is greater than the conversion price of $48.05. Years ended August 31, 2015 2014 Net earnings attributable to Greenbrier $ 192,832 $ 111,919 Add back: Interest and debt issuance costs on the 2018 Convertible notes, net of tax 4,818 5,664 Earnings before interest and debt issuance costs on convertible notes $ 197,650 $ 117,583 Weighted average diluted common shares outstanding 33,328 34,209 Diluted earnings per share (1) $ 5.93 $ 3.44 (1) Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on convertible notes Weighted average diluted common shares outstanding |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2015 | |
Related Party Transactions | Note 17 - Related Party Transactions In July 2014, the Company and Watco completed the formation of GBW, an unconsolidated 50/50 joint venture. The Company accounts for its interest in GBW under the equity method of accounting. The Company leases real and personal property to GBW with lease revenue totaling $4.9 million and $0.6 million for the years ended August 31, 2015 and 2014, respectively. The Company sold wheel sets and components to GBW which totaled $25.4 million and $1.3 million for the years ended August 31, 2015 and 2014, respectively. GBW provided Repair services to the Company which totaled $2.4 million and $0.1 million for the years ended August 31, 2015 and 2014, respectively. As of August 31, 2015, the Company had a $31.5 million note receivable balance from GBW, which included a $21.0 million account receivable which was converted into a note receivable during the fourth quarter of 2015. The original account receivable from GBW was for the initial sale of inventory to GBW. In April 2010, WLR–Greenbrier Rail Inc. (WLR-GBX) was formed and acquired a lease fleet of nearly 4,000 railcars valued at approximately $256.0 million. WLR-GBX is wholly owned by affiliates of WL Ross & Co, LLC (WL Ross) and a member of the Company’s board of directors, Wendy Teramoto, is also an affiliate of WL Ross. The Company performed certain management and advisory services until September 2015 and in exchange received management and other fee income tied to the performance of WLR-GBX. The Company also paid certain incidental fees and agreed to indemnify WLR-GBX and its affiliates against certain liabilities in connection with such advisory services. Under the management agreement the Company received $0.9 million in fees for each of the years ended August 31, 2015, 2014 and 2013. The Company also leased approximately 400 railcars from the WLR-GBX lease fleet. The Company paid $2.9 million, $3.3 million and $3.2 million in lease expense for the years ended August 31, 2015, 2014 and 2013, respectively. In September 2015, the Company purchased the entire remaining WLR-GBX lease fleet of 3,885 railcars for fair value and such transaction was approved by the Company’s disinterested, independent directors. The Company intends to sell the railcars and underlying attached leases to third parties in the short-term and therefore has classified these railcars as Leased railcars for syndication on the Company’s Consolidated Balance Sheet. The Company and WL Ross have agreed that the Company will receive a preferred return on the proceeds of the sale of the portfolio, after which it will share a portion of the profits with WL Ross up to certain defined levels. William Furman, Chairman of the Board, President and Chief Executive Officer of the Company, also serves as director of Schnitzer Steel Industries, Inc. (Schnitzer). In the normal course of business, the Company sells scrap metal to Schnitzer. During the years ended August 31, 2015, 2014 and 2013, the Company sold scrap metal to Schnitzer totaling $3.5 million, $3.0 million and $8.0 million, respectively. 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 aggregating $0.5 million, $0.5 million and $0.2 million for each of the years ended August 31, 2015, 2014 and 2013, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2015 | |
Income Taxes | Note 18 - Income Taxes Components of income tax expense of continuing operations were as follows: Years ended August 31, (In thousands) 2015 2014 2013 Current Federal $ 92,525 $ 49,795 $ 20,162 State 6,349 3,791 2,491 Foreign 32,748 23,229 11,465 131,622 76,815 34,118 Deferred Federal (13,565 ) (79 ) (6,597 ) State (1,112 ) (1,142 ) (2,357 ) Foreign (4,423 ) (3,148 ) (134 ) (19,100 ) (4,369 ) (9,088 ) Change in valuation allowance (362 ) (45 ) 30 Income Tax Expense $ 112,160 $ 72,401 $ 25,060 Income tax expense is computed at rates different from statutory rates. The reconciliation between effective and statutory tax rates on operations is as follows: Years ended August 31, 2015 2014 2013 Federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 1.0 1.3 (1.2 ) Impact of foreign operations (0.5 ) (0.8 ) (19.1 ) Change in valuation allowance related to deferred tax asset (0.1 ) – 1.3 Change in income tax reserve for uncertain tax positions – – (7.1 ) Noncontrolling interest in flow-through entity (5.7 ) (5.3 ) (1.2 ) Permanent differences and other 0.2 0.7 1.9 Non-deductible goodwill – 1.9 119.0 Effective Tax Rate 29.9 % 32.8 % 128.6 % 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 thousands) 2015 2014 Deferred tax assets: Contract placement $ 1,828 $ 1,938 Maintenance and warranty accruals 11,037 8,254 Accrued payroll and related liabilities 21,083 12,737 Deferred revenue 7,575 4,496 Inventories and other 9,612 10,709 Derivative instruments and translation adjustment 858 413 Investment and asset tax credits 776 1,388 Net operating losses 689 1,695 53,458 41,630 Deferred tax liabilities: Fixed assets 87,031 94,424 Investment in GBW Joint Venture 16,356 16,497 Original issue discount 4,036 3,481 Intangibles 3,030 2,719 Deferred gain on redemption of debt 2,611 3,511 Other 357 1,056 113,421 121,688 Valuation allowance 694 1,325 Net deferred tax liability $ 60,657 $ 81,383 As of August 31, 2015 the Company had $2.5 million of state net operating loss (NOL) carryforwards that will begin to expire in 2020, $0.7 million of state credit carryforwards that will begin to expire in 2021, and $4.1 million of foreign NOL carryforwards that will begin to expire in 2016. The Company has placed valuation allowances against any deferred tax assets for which no benefit is anticipated, including those for loss and credit carryforwards likely to expire before their expiration dates. The net decrease in the total valuation allowance was approximately $0.6 million for the year ended August 31, 2015. The Company uses tax law ordering for purposes of determining when excess tax benefits have been realized. During the current year the Company also realized excess tax benefits of $2.9 million from the vesting of restricted stock awards. No provision has been made for U.S. income taxes on approximately $115.9 million of cumulative undistributed earnings of certain foreign subsidiaries because the Company plans to reinvest these earnings indefinitely in operations outside the U.S. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability related to investments in foreign subsidiaries. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: (In thousands) 2015 2014 2013 Unrecognized Tax Benefit – Opening Balance $ 1,268 $ 1,289 $ 3,720 Gross increases – tax positions in prior period 18 18 511 Gross decreases – tax positions in prior period – – (2,942 ) Settlements – – – Lapse of statute of limitations (11 ) (39 ) – Unrecognized Tax Benefit – Ending Balance $ 1,275 $ 1,268 $ 1,289 The Company is subject to taxation in the U.S., various states and foreign jurisdictions. The Company is no longer subject to U.S. Federal examination for fiscal years ending before 2012, to state and local examinations before 2011, or to foreign examinations before 2009. Unrecognized tax benefits, excluding interest, at August 31, 2015 were $1.0 million of which $0.7 million, if recognized, would affect the effective tax rate. The unrecognized tax benefits at August 31, 2014 were $1.0 million. Accrued interest on reserves for uncertain tax positions as of August 31, 2015 and 2014 were $0.3 million and $0.2 million, respectively. The Company recorded annual interest benefits of less than $0.1 million for changes in the reserves during each of the years ended August 31, 2015 and 2014. The Company had not accrued any penalties on the reserves. Interest and penalties related to income taxes are not 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. The Company does not anticipate a significant decrease in the reserves for uncertain tax positions during the next twelve months. |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2015 | |
Segment Information | Note 19 - Segment Information Through July 18, 2014, Greenbrier operated in three reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services. On July 18, 2014, the Company completed the formation of GBW, an unconsolidated 50/50 joint venture with Watco which became the Company’s fourth reportable segment (GBW Joint Venture) upon formation. The Wheels & Parts segment (previously known as Wheels, Repair & Parts through 2014) included the results of operations for its Repair operations through July 18, 2014. After July 18, 2014, the results of GBW were included as part of Earnings from unconsolidated affiliates as the Company accounts for its interest in GBW under the equity method of accounting. Certain assets including real property, personal property, accounts receivable and accounts payable were not contributed or sold to GBW and remained as part of the Wheels & Parts segment. 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. The Company does not allocate Interest and foreign exchange or Income tax 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 is eliminated in consolidation and therefore are not included in consolidated results in the Company’s Consolidated Financial Statements. 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, 2015: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 2,136,051 $ 7,534 $ 2,143,585 $ 396,921 $ 795 $ 397,716 Wheels & Parts 371,237 27,257 398,494 27,563 2,629 30,192 Leasing & Services 97,990 62,600 160,590 41,887 62,600 104,487 Eliminations – (97,391 ) (97,391 ) – (66,024 ) (66,024 ) Corporate – – – (79,479 ) – (79,479 ) $ 2,605,278 $ – $ 2,605,278 $ 386,892 $ – $ 386,892 For the year ended August 31, 2014: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 1,624,916 $ 790 $ 1,625,706 $ 202,555 $ 61 $ 202,616 Wheels & Parts 495,627 11,833 507,460 40,597 442 41,039 Leasing & Services 83,419 25,973 109,392 41,055 25,973 67,028 Eliminations – (38,596 ) (38,596 ) – (26,476 ) (26,476 ) Corporate – – – (44,687 ) – (44,687 ) $ 2,203,962 $ – $ 2,203,962 $ 239,520 $ – $ 239,520 For the year ended August 31, 2013: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 1,215,734 $ 7,244 $ 1,222,978 $ 88,822 $ (30 ) $ 88,792 Wheels & Parts 469,222 14,958 484,180 (60,966 ) (291 ) (61,257 ) Leasing & Services 71,462 18,740 90,202 42,411 18,737 61,148 Eliminations – (40,942 ) (40,942 ) – (18,416 ) (18,416 ) Corporate – – – (28,616 ) – (28,616 ) $ 1,756,418 $ – $ 1,756,418 $ 41,651 $ – $ 41,651 Years ended August 31, (In thousands) 2015 2014 2013 Assets: Manufacturing $ 675,409 $ 521,711 $ 401,630 Wheels & Parts 291,798 298,009 318,483 Leasing & Services 549,073 436,075 463,381 Unallocated 274,232 261,373 106,247 $ 1,790,512 $ 1,517,168 $ 1,289,741 Depreciation and amortization: Manufacturing $ 20,668 $ 15,341 $ 13,469 Wheels & Parts 11,748 12,582 12,843 Leasing & Services 12,740 12,499 15,135 $ 45,156 $ 40,422 $ 41,447 Capital expenditures: Manufacturing $ 84,354 $ 55,979 $ 37,017 Wheels & Parts 9,381 8,774 7,492 Leasing & Services 12,254 5,474 16,318 $ 105,989 $ 70,227 $ 60,827 The following table summarizes selected geographic information. Years ended August 31, (In thousands) 2015 2014 2013 Revenue (1) U.S. $ 2,404,266 $ 1,998,579 $ 1,544,775 Foreign 201,012 205,383 211,643 $ 2,605,278 $ 2,203,962 $ 1,756,418 Identifiable assets: U.S. $ 1,184,811 $ 1,115,473 $ 865,294 Canada – – 756 Mexico 524,724 321,391 348,144 Europe 80,977 80,304 75,547 $ 1,790,512 $ 1,517,168 $ 1,289,741 (1) Revenue is presented on the basis of geographic location of customers. Reconciliation of earnings from operations to earnings before income tax and earnings (loss) from unconsolidated affiliates: Years ended August 31, (In thousands) 2015 2014 2013 Earnings from operations $ 386,892 $ 239,520 $ 41,651 Interest and foreign exchange 11,179 18,695 22,158 Earnings before income tax and earnings from unconsolidated affiliates $ 375,713 $ 220,825 $ 19,493 The results of operations for the GBW Joint Venture are accounted for under the equity method of accounting. The GBW Joint Venture is the Company’s fourth reportable segment and information for 2014 and 2015 are included in the tables below. Information for the year ended August 31, 2014 below includes activity for GBW from July 18, 2014 to August 31, 2014. Years ended August 31, (In thousands) 2015 2014 GBW Joint Venture: Revenue $ 349,849 $ 38,549 Earnings (loss) from operations $ (1,160 ) $ 702 Assets (1) $ 239,871 $ 210,631 Depreciation and amortization $ 4,590 $ 470 Capital expenditures $ 26,396 $ 1,255 (1) Includes goodwill and intangible assets of $96.9 million and $100.2 million as of August 31, 2015 and 2014. |
Customer Concentration
Customer Concentration | 12 Months Ended |
Aug. 31, 2015 | |
Customer Concentration | Note 20 - Customer Concentration Customer concentration is defined as a single customer that accounts for more than 10% of total revenues or accounts receivable. In 2015, revenue from one customer represented 17% of total revenue. In 2014, revenue from two customers represented 24% and 17% of total revenue, respectively. In 2013, revenue from two customers represented 17% and 10% of total revenue, respectively. No other customers accounted for more than 10% of total revenues for the years ended August 31, 2015, 2014, or 2013. Two customers had balances that individually equaled or exceeded 10% of accounts receivable and represented 28% and 12% of the consolidated accounts receivable balance at August 31, 2015. Two customers had balances that individually equaled or exceeded 10% of accounts receivable and represented 19% and 12% of the consolidated accounts receivable balance at August 31, 2014. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Aug. 31, 2015 | |
Lease Commitments | Note 21 - Lease Commitments Lease expense for railcar equipment leased-in under non-cancelable leases was $6.3 million, $6.8 million and $6.7 million for the years ended August 31, 2015, 2014 and 2013. Aggregate minimum future amounts payable under these non-cancelable railcar equipment leases are as follows: (In thousands) Year ending August 31, 2016 $ 2,464 2017 1,563 2018 1,046 2019 – 2020 – Thereafter – $ 5,073 Operating leases for domestic railcar repair facilities, office space and certain manufacturing and office equipment expire at various dates through May 2022. Rental expense for facilities, office space and equipment was $9.3 million, $12.3 million and $13.1 million for the years ended August 31, 2015, 2014 and 2013. Aggregate minimum future amounts payable under these non-cancelable operating leases are as follows: (In thousands) Year ending August 31, 2016 $ 3,798 2017 2,956 2018 2,432 2019 2,163 2020 1,997 Thereafter 1,556 $ 14,902 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2015 | |
Commitments and Contingencies | Note 22 - Commitments and Contingencies The Company’s Portland, Oregon manufacturing facility is located adjacent to the Willamette River. The Company has 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. 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. At this time, ten private and public entities, including the Company (the Lower Willamette Group or LWG), have 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 have not signed such consent, but are nevertheless contributing money to the effort. The EPA-mandated RI/FS is being conducted by the LWG and has cost over $110 million during a 14-year period. The Company has agreed to initially bear a percentage of the total costs incurred by the LWG in connection with the investigation. The Company’s aggregate expenditure has not been material during the 14-year period. Some or all of any such outlay may be recoverable from other responsible parties. The EPA expects the investigation to continue until 2017. Eighty-three parties, including the State of Oregon and the federal government, have entered into a non-judicial mediation process to try to allocate costs associated with the Portland Harbor site. Approximately 110 additional parties have 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 A draft of the remedial investigation study was submitted to the EPA on October 27, 2009. The draft feasibility study was submitted to the EPA on March 30, 2012. That draft feasibility study evaluates several alternative cleanup approaches. The approaches submitted would take from 2 to 28 years with costs ranging from $169 million to $1.8 billion for cleanup of the entire Portland Harbor Site, depending primarily on the selected remedial action levels. The draft feasibility study suggests costs ranging from $9 million to $163 million for cleanup of the area of the Willamette River adjacent to the Company’s Portland, Oregon manufacturing facility, depending primarily on the selected remedial action level. In August 2015, the EPA released its own draft feasibility study that suggests a significantly higher range of site-wide costs (from $790 million to $2.4 billion) and clean-up durations ranging from 4 to 18 years. The EPA study does not break those costs down by sub-area. Neither draft feasibility study addresses responsibility for the costs of clean-up or allocates such costs among the potentially responsible parties, or defines precise boundaries for the cleanup. Responsibility for funding and implementing the EPA’s selected cleanup will be determined after the issuance of the Record of Decision, currently scheduled by the EPA for 2017. Based on the investigation to date, the Company believes that it did not contribute in any material way to contamination 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 its ownership of the Portland, Oregon manufacturing facility. 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 its Portland property. 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 currently discussing with the DEQ potential remedial actions which may be required. Our aggregate expenditure has not been material, however the Company could incur significant expenses for remediation. Some or all of any such outlay may be recoverable from other responsible parties. From time to time, Greenbrier is involved as a defendant in litigation in the ordinary course of business, the outcome of which cannot be predicted with certainty. While the ultimate outcome of such legal proceedings cannot be determined at this time, management believes that the resolution of these actions will not have a material adverse effect on the Company’s Consolidated Financial Statements. In accordance with customary business practices in Europe, the Company has $3.7 million in third party warranty guarantee facilities. To date no amounts have been drawn under these guarantee facilities. As of August 31, 2015, the Mexican joint venture had $3.0 million of third party debt outstanding, for which the Company and its joint venture partner had each guaranteed approximately $1.5 million. As of August 31, 2015, the Company had outstanding letters of credit aggregating $47.2 million associated with performance guarantees, facility leases and workers compensation insurance. On July 18, 2014, the Company and Watco contributed their respective Repair operations to GBW, an unconsolidated 50/50 joint venture. The Company made $12.5 million in cash contributions during the year ended August 31, 2014 and $3.8 million in cash contributions and $31.5 million in loans during the year ended August 31, 2015. The Company expects to loan additional amounts, approximately $5.0 million, during 2016. The Company is likely to make additional capital contributions or loans to GBW in the future. As of August 31, 2015, the Company had a $31.5 million note receivable balance from GBW, which included a $21.0 million account receivable which was converted into a note receivable during the fourth quarter of 2015. The original account receivable from GBW was for the initial sale of inventory to GBW. The Company receives $4.9 million annually from GBW in lease payments for the Company’s owned and leased facilities and equipment leased to GBW as well as quarterly distributions of a portion of GBW’s earnings. During the year ended August 31, 2015, the Company received $1.3 million in quarterly distributions from GBW. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Aug. 31, 2015 | |
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 thousands) Carrying Amount Estimated Fair Value Notes payable as of August 31, 2015 $ 326,429 $ 345,350 Notes payable as of August 31, 2014 $ 445,091 $ 654,458 The carrying amount of cash and cash equivalents, accounts and notes receivable, revolving notes, accounts payable and accrued liabilities, foreign currency forward contracts and interest rate swaps 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. |
Fair Value Measures
Fair Value Measures | 12 Months Ended |
Aug. 31, 2015 | |
Fair Value Measures | Note 24 - 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, 2015 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 1,913 $ – $ 1,913 $ – Nonqualified savings plan investments 11,815 11,815 – – Cash equivalents 5,071 5,071 – – $ 18,799 $ 16,886 $ 1,913 $ – Liabilities: Derivative financial instruments $ 3,206 $ – $ 3,206 $ – (1) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 14 Derivative Instruments for further discussion. Assets or liabilities measured at fair value on a nonrecurring basis as of August 31, 2015 are: (In thousands) Total Level 1 Level 2 Level 3 Assets: Goodwill $ 43,265 $ – $ – $ 43,265 Assets and liabilities measured at fair value on a recurring basis as of August 31, 2014 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 200 $ – $ 200 $ – Nonqualified savings plan investments 10,223 10,223 – – Cash equivalents 35,036 35,036 – – $ 45,459 $ 45,259 $ 200 $ – Liabilities: Derivative financial instruments $ 1,995 $ – $ 1,995 $ – (2) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 14 Derivative Instruments for further discussion. Assets or liabilities measured at fair value on a nonrecurring basis as of August 31, 2014 are: (In thousands) Total Level 1 Level 2 Level 3 Assets: Goodwill $ 43,265 $ – $ – $ 43,265 |
Guarantor_Non Guarantor
Guarantor/Non Guarantor | 12 Months Ended |
Aug. 31, 2015 | |
Guarantor/Non Guarantor | Note 25 - Guarantor/Non Guarantor The convertible senior notes due 2026 (the “Notes”) issued on May 22, 2006 are fully and unconditionally and jointly and severally guaranteed by substantially all of Greenbrier’s material 100% owned U.S. subsidiaries: Autostack Company LLC; Greenbrier-Concarril, LLC; Greenbrier Leasing Company LLC; Greenbrier Leasing Limited Partner, LLC; Greenbrier Management Services, LLC; Greenbrier Leasing, L.P.; Greenbrier Railcar LLC; Gunderson LLC; Gunderson Marine LLC; Gunderson Rail Services LLC; Meridian Rail Holding Corp.; Meridian Rail Acquisition Corp.; Meridian Rail Mexico City Corp.; Brandon Railroad LLC; Gunderson Specialty Products, LLC; Greenbrier Railcar Leasing, Inc. and Greenbrier Rail Services Holdings, LLC. No other subsidiaries guarantee the Notes including Greenbrier Union Holdings I LLC; Greenbrier MUL Holdings I LLC; Greenbrier Leasing Limited; Greenbrier Europe B.V.; Greenbrier Europe Holdings B.V.; Greenbrier International Holdings II, LLC; Greenbrier Germany GmbH; WagonySwidnica S.A.; Zaklad Naprawczy Taboru Kolejowego Olawa sp. z o.o.; Zaklad Transportu Kolejowego SIARKOPOL sp. z o.o.; Gunderson-Concarril, S.A. de C.V.; Mexico Meridianrail Services, S.A. de C.V.; Greenbrier Railcar Services – Tierra Blanca S.A. de C.V.; YSD Doors, S.A. de C.V.; Greenbrier do Brasil Participações Ltda; Greenbrier Tank Components, LLC; Gunderson-GIMSA S.A. de C.V.; Greenbrier; S.A. de C.V.; Greenbrier Industries, S.A. de C.V. and Greenbrier-GIMSA, LLC. The following represents the supplemental consolidating condensed financial information of Greenbrier and its guarantor and non guarantor subsidiaries, as of August 31, 2015 and 2014 and for the years ended August 31, 2015, 2014 and 2013. The information is presented on the basis of Greenbrier accounting for its ownership of its wholly owned subsidiaries using the equity method of accounting. The equity method investment for each subsidiary is recorded by the parent in intangibles and other assets. Intercompany transactions of goods and services between the guarantor and non guarantor subsidiaries are presented as if the sales or transfers were at fair value to third parties and eliminated in consolidation. The Greenbrier Companies, Inc. Condensed Consolidating Balance Sheet As of August 31, 2015 Parent Combined Combined Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 53,535 $ 119 $ 119,276 $ – $ 172,930 Restricted cash – 1,966 6,903 – 8,869 Accounts receivable, net 49,471 535,916 24,415 (413,773 ) 196,029 Inventories – 191,625 257,619 (3,709 ) 445,535 Leased railcars for syndication – 228,646 – (16,112 ) 212,534 Equipment on operating leases, net – 255,130 2,901 (2,640 ) 255,391 Property, plant and equipment, net 8,402 102,738 191,995 – 303,135 Investment in unconsolidated affiliates 1,209,698 169,659 21,369 (1,313,456 ) 87,270 Intangibles and other assets, net 15,895 46,387 14,235 (10,963 ) 65,554 Goodwill – 43,265 – – 43,265 $ 1,337,001 $ 1,575,451 $ 638,713 $ (1,760,653 ) $ 1,790,512 Liabilities and Equity Revolving notes $ 49,000 $ – $ 1,888 $ – $ 50,888 Accounts payable and accrued liabilities 421,249 282,662 208,538 (457,236 ) 455,213 Deferred income taxes – 72,326 – (11,669 ) 60,657 Deferred revenue – 33,792 – 44 33,836 Notes payable 133,914 191,422 1,093 – 326,429 Total equity – Greenbrier 732,838 995,249 296,852 (1,292,101 ) 732,838 Noncontrolling interest – – 130,342 309 130,651 Total equity 732,838 995,249 427,194 (1,291,792 ) 863,489 $ 1,337,001 $ 1,575,451 $ 638,713 $ (1,760,653 ) $ 1,790,512 The Greenbrier Companies, Inc. Condensed Consolidating Statement of Operations For the year ended August 31, 2015 Parent Combined Combined Non-Guarantor Eliminations Consolidated Revenue Manufacturing $ 1,641 $ 1,199,771 $ 1,810,001 $ (875,362 ) $ 2,136,051 Wheels & Parts – 376,135 – (4,898 ) 371,237 Leasing & Services (717 ) 98,292 1 414 97,990 924 1,674,198 1,810,002 (879,846 ) 2,605,278 Cost of revenue Manufacturing – 995,332 1,535,309 (839,227 ) 1,691,414 Wheels & Parts – 339,657 – (4,977 ) 334,680 Leasing & Services – 41,926 – (95 ) 41,831 – 1,376,915 1,535,309 (844,299 ) 2,067,925 Margin 924 297,283 274,693 (35,547 ) 537,353 Selling and administrative 72,686 37,379 42,624 (898 ) 151,791 Net gain on disposition of equipment – (1,043 ) (283 ) (4 ) (1,330 ) Earnings (loss) from operations (71,762 ) 260,947 232,352 (34,645 ) 386,892 Other costs Interest and foreign exchange 11,786 6,826 (7,433 ) – 11,179 Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates (83,548 ) 254,121 239,785 (34,645 ) 375,713 Income tax (expense) benefit (4,697 ) (86,757 ) (31,299 ) 10,593 (112,160 ) Earnings (loss) before earnings (loss) from unconsolidated affiliates (88,245 ) 167,364 208,486 (24,052 ) 263,553 Earnings (loss) from unconsolidated affiliates 281,077 27,013 59 (306,393 ) 1,756 Net earnings (loss) 192,832 194,377 208,545 (330,445 ) 265,309 Net (earnings) loss attributable to noncontrolling interest – – (89,692 ) 17,215 (72,477 ) Net earnings (loss) attributable to Greenbrier $ 192,832 $ 194,377 $ 118,853 $ (313,230 ) $ 192,832 The Greenbrier Companies, Inc. Consolidating Statement of Comprehensive Income (Loss) For the year ended August 31, 2015 (In thousands) Parent Combined Combined Non-Guarantor Eliminations Consolidated Net earnings (loss) $ 192,832 $ 194,377 $ 208,545 $ (330,445 ) $ 265,309 Other comprehensive income (loss) Translation adjustment (1,527 ) – (12,482 ) – (14,009 ) Reclassification of derivative financial instruments recognized in net earnings (loss) – 1,107 (370 ) – 737 Unrealized gain (loss) on derivative financial instruments 6 (1,825 ) 489 – (1,330 ) Other (net of tax effect) – – 173 – 173 (1,521 ) (718 ) (12,190 ) – (14,429 ) Comprehensive income (loss) 191,311 193,659 196,355 (330,445 ) 250,880 Comprehensive (income) loss attributable to noncontrolling interest – – (89,536 ) 17,215 (72,321 ) Comprehensive income (loss) attributable to Greenbrier $ 191,311 $ 193,659 $ 106,819 $ (313,230 ) $ 178,559 The Greenbrier Companies, Inc. Condensed Consolidating Statement of Cash Flows For the year ended August 31, 2015 (In thousands) Parent Combined Combined Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net earnings (loss) $ 192,832 $ 194,377 $ 208,545 $ (330,445 ) $ 265,309 Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Deferred income taxes (12,694 ) (8,163 ) 706 – (20,151 ) Depreciation and amortization 2,098 26,771 16,382 (95 ) 45,156 Net gain on disposition of equipment – (1,043 ) (283 ) (4 ) (1,330 ) Stock based compensation expense 19,459 – – – 19,459 Noncontrolling interest adjustments – – – 17,215 17,215 Other 43 196 945 – 1,184 Decrease (increase) in assets: Accounts receivable, net (48,847 ) 24,283 24,026 14,190 13,652 Inventories – (78,507 ) (68,956 ) 3,614 (143,849 ) Leased railcars for syndication – (103,772 ) – 13,158 (90,614 ) Other 22,478 (691 ) (19,430 ) (1,782 ) 575 Increase (decrease) in liabilities: Accounts payable and accrued liabilities 41,138 60,761 25,399 (54,879 ) 72,419 Deferred revenue (122 ) 13,842 (412 ) – 13,308 Net cash provided by (used in) operating activities 216,385 128,054 186,922 (339,028 ) 192,333 Cash flows from investing activities: Proceeds from sales of assets – 4,959 336 – 5,295 Capital expenditures (4,323 ) (24,836 ) (77,228 ) 398 (105,989 ) Increase in restricted cash – 272 (1 ) – 271 Investment in and net advances to unconsolidated affiliates (346,168 ) (25,388 ) – 337,103 (34,453 ) Other 1,345 2,000 – – 3,345 Net cash provided by (used in) investing activities (349,146 ) (42,993 ) (76,893 ) 337,501 (131,531 ) Cash flows from financing activities: Net changes in revolving notes with maturities of 90 days or less 49,000 – – – 49,000 Proceeds from revolving notes with maturities longer than 90 days – – 44,451 – 44,451 Repayment of revolving notes with maturities longer than 90 days – – (55,644 ) – (55,644 ) Repayments of notes payable (5 ) (7,033 ) (437 ) – (7,475 ) Decrease in restricted cash – 11,000 – – 11,000 Intercompany advances 72,857 (85,925 ) 13,068 – – Repurchase of stock (69,950 ) – – – (69,950 ) Dividends (16,491 ) – – – (16,491 ) Cash distribution to joint venture partner – – (20,375 ) (20,375 ) Excess tax benefit from restricted stock awards 2,908 – – – 2,908 Other (248 ) – – (248 ) Net cash provided by (used in) financing activities 38,071 (81,958 ) (18,937 ) – (62,824 ) Effect of exchange rate changes (1,522 ) (3,096 ) (6,873 ) 1,527 (9,964 ) Increase (decrease) in cash and cash equivalents (96,212 ) 7 84,219 – (11,986 ) Cash and cash equivalents Beginning of period 149,747 112 35,057 – 184,916 End of period $ 53,535 $ 119 $ 119,276 $ – $ 172,930 The Greenbrier Companies, Inc. Condensed Consolidating Balance Sheet As of August 31, 2014 Parent Combined Combined Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 149,747 $ 112 $ 35,057 $ – $ 184,916 Restricted cash – 13,238 6,902 – 20,140 Accounts receivable, net 626 474,409 62,421 (337,777 ) 199,679 Inventories – 113,117 192,634 (95 ) 305,656 Leased railcars for syndication – 128,965 – (3,115 ) 125,850 Equipment on operating leases, net – 257,415 3,613 (2,180 ) 258,848 Property, plant and equipment, net 6,220 102,972 134,506 – 243,698 Investment in unconsolidated affiliates 910,732 143,768 3,961 (989,102 ) 69,359 Intangibles and other assets, net 17,031 45,013 14,221 (10,508 ) 65,757 Goodwill – 43,265 – – 43,265 $ 1,084,356 $ 1,322,274 $ 453,315 $ (1,342,777 ) $ 1,517,168 Liabilities and Equity Revolving notes $ – $ – $ 13,081 $ – $ 13,081 Accounts payable and accrued liabilities 315,879 221,863 185,335 (339,788 ) 383,289 Deferred income taxes 12,109 80,489 – (11,215 ) 81,383 Deferred revenue 122 19,950 487 44 20,603 Notes payable 244,856 198,705 1,530 – 445,091 Total equity – Greenbrier 511,390 801,267 190,861 (992,128 ) 511,390 Noncontrolling interest – – 62,021 310 62,331 Total equity 511,390 801,267 252,882 (991,818 ) 573,721 $ 1,084,356 $ 1,322,274 $ 453,315 $ (1,342,777 ) $ 1,517,168 The Greenbrier Companies, Inc. Condensed Consolidating Statement of Operations For the year ended August 31, 2014 Parent Combined Combined Non-Guarantor Eliminations Consolidated Revenue Manufacturing $ – $ 887,252 $ 1,419,143 $ (681,479 ) $ 1,624,916 Wheels & Parts – 502,210 – (6,583 ) 495,627 Leasing & Services 1,256 81,546 2 615 83,419 1,256 1,471,008 1,419,145 (687,447 ) 2,203,962 Cost of revenue Manufacturing – 792,267 1,257,953 (676,212 ) 1,374,008 Wheels & Parts – 470,521 – (6,583 ) 463,938 Leasing & Services – 43,878 – (82 ) 43,796 – 1,306,666 1,257,953 (682,877 ) 1,881,742 Margin 1,256 164,342 161,192 (4,570 ) 322,220 Selling and administrative 45,621 41,001 38,063 585 125,270 Net gain on disposition of equipment – (13,905 ) (820 ) (314 ) (15,039 ) Gain on contribution to joint venture – (29,006 ) – – (29,006 ) Restructuring charges – 1,475 – – 1,475 Earnings (loss) from operations (44,365 ) 164,777 123,949 (4,841 ) 239,520 Other costs Interest and foreign exchange 11,654 4,774 2,267 – 18,695 Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates (56,019 ) 160,003 121,682 (4,841 ) 220,825 Income tax (expense) benefit 7,563 (55,382 ) (26,170 ) 1,588 (72,401 ) Earnings (loss) before earnings (loss) from unconsolidated affiliates (48,456 ) 104,621 95,512 (3,253 ) 148,424 Earnings (loss) from unconsolidated affiliates 160,375 18,739 166 (177,925 ) 1,355 Net earnings (loss) 111,919 123,360 95,678 (181,178 ) 149,779 Net (earnings) loss attributable to noncontrolling interest – – (40,634 ) 2,774 (37,860 ) Net earnings (loss) attributable to Greenbrier $ 111,919 $ 123,360 $ 55,044 $ (178,404 ) $ 111,919 The Greenbrier Companies, Inc. Consolidating Statement of Comprehensive Income (Loss) For the year ended August 31, 2014 (In thousands) Parent Combined Combined Non-Guarantor Eliminations Consolidated Net earnings (loss) $ 111,919 $ 123,360 $ 95,678 $ (181,178 ) $ 149,779 Other comprehensive income (loss) Translation adjustment – – 116 – 116 Reclassification of derivative financial instruments recognized in net earnings (loss) – 1,071 (600 ) – 471 Unrealized gain (loss) on derivative financial instruments – (1,105 ) 86 – (1,019 ) Other (net of tax effect) – – 10 – 10 – (34 ) (388 ) – (422 ) Comprehensive income (loss) 111,919 123,326 95,290 (181,178 ) 149,357 Comprehensive (income) loss attributable to noncontrolling interest – – (40,640 ) 2,774 (37,866 ) Comprehensive income (loss) attributable to Greenbrier $ 111,919 $ 123,326 $ 54,650 $ (178,404 ) $ 111,491 The Greenbrier Companies, Inc. Condensed Consolidating Statement of Cash Flows For the year ended August 31, 2014 (In thousands) Parent Combined Combined Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net earnings (loss) $ 111,919 $ 123,360 $ 95,678 $ (181,178 ) $ 149,779 Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Deferred income taxes 4,016 (6,121 ) (2,582 ) – (4,687 ) Depreciation and amortization 1,875 27,259 11,370 (82 ) 40,422 Net gain on disposition of equipment – (13,905 ) (820 ) (314 ) (15,039 ) Stock based compensation expense 11,285 – – – 11,285 Gain on contribution to joint venture – (29,006 ) – – (29,006 ) Noncontrolling interest adjustments – – – 2,774 2,774 Other – 388 189 (1 ) 576 Decrease (increase) in assets: Accounts receivable, net 36,996 (11,493 ) (11,679 ) (37,573 ) (23,749 ) Inventories – 16,920 (26,595 ) – (9,675 ) Leased railcars for syndication – (60,547 ) – 2,768 (57,779 ) Other (935 ) 53,889 (4,424 ) (52,599 ) (4,069 ) Increase (decrease) in liabilities: Accounts payable and accrued liabilities (44,631 ) 45,953 26,483 35,557 63,362 Deferred revenue (33 ) 11,355 389 2 11,713 Net cash provided by (used in) operating activities 120,492 158,052 88,009 (230,646 ) 135,907 Cash flows from investing activities: Proceeds from sales of assets – 53,229 1,006 – 54,235 Capital expenditures (4,125 ) (16,636 ) (49,470 ) 4 (70,227 ) Increase in restricted cash – (331 ) (2 ) – (333 ) Investment in and net advances to unconsolidated affiliates (169,584 ) (73,558 ) (1,253 ) 230,642 (13,753 ) Net cash provided by (used in) investing activities (173,709 ) (37,296 ) (49,719 ) 230,646 (30,078 ) Cash flows from financing activities: Proceeds from revolving notes with maturities longer than 90 days – – 37,819 – 37,819 Repayment of revolving notes with maturities longer than 90 days – – (72,947 ) – (72,947 ) Proceeds from issuance of notes payable – 200,000 – – 200,000 Repayments of notes payable – (128,157 ) (640 ) – (128,797 ) Debt issuance costs – (382 ) – – (382 ) Increase in restricted cash – (11,000 ) – – (11,000 ) Intercompany advances 177,395 (181,161 ) 3,766 – – Repurchase of stock (33,583 ) – – – (33,583 ) Dividends (4,123 ) – – – (4,123 ) Cash distribution to joint venture partner – – (5,076 ) (5,076 ) Investment by joint venture partner 419 419 Excess tax benefit from restricted stock awards 109 – – – 109 Net cash provided by (used in) financing activities 139,798 (120,700 ) (36,659 ) – (17,561 ) Effect of exchange rate changes (7 ) 31 (811 ) – (787 ) Increase in cash and cash equivalents 86,574 87 820 – 87,481 Cash and cash equivalents Beginning of period 63,173 25 34,237 – 97,435 End of period $ 149,747 $ 112 $ 35,057 $ – $ 184,916 The Greenbrier Companies, Inc. Condensed Consolidating Statement of Operations For the year ended August 31, 2013 Parent Combined Combined Non-Guarantor Eliminations Consolidated Revenue Manufacturing $ – $ 666,171 $ 1,001,017 $ (451,454 ) $ 1,215,734 Wheels & Parts – 480,849 – (11,627 ) 469,222 Leasing & Services 806 70,672 1 (17 ) 71,462 806 1,217,692 1,001,018 (463,098 ) 1,756,418 Cost of revenue Manufacturing – 610,379 928,461 (455,951 ) 1,082,889 Wheels & Parts – 443,337 – (11,836 ) 431,501 Leasing & Services – 35,754 – (99 ) 35,655 – 1,089,470 928,461 (467,886 ) 1,550,045 Margin 806 128,222 72,557 4,788 206,373 Selling and administrative 38,636 30,937 33,602 – 103,175 Net gain on disposition of equipment – (16,238 ) (1,276 ) (558 ) (18,072 ) Goodwill impairment – 76,900 – – 76,900 Restructuring charges – 2,719 – – 2,719 Earnings (loss) from operations (37,830 ) 33,904 40,231 5,346 41,651 Other costs Interest and foreign exchange 15,358 3,901 3,100 (201 ) 22,158 Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates (53,188 ) 30,003 37,131 5,547 19,493 Income tax (expense) benefit 21,367 (36,202 ) (9,067 ) (1,158 ) (25,060 ) Earnings (loss) before earnings (loss) from unconsolidated affiliates (31,821 ) (6,199 ) 28,064 4,389 (5,567 ) Earnings (loss) from unconsolidated affiliates 20,773 11,532 45 (32,164 ) 186 Net earnings (loss) (11,048 ) 5,333 28,109 (27,775 ) (5,381 ) Net (earnings) loss attributable to noncontrolling interest – – (3,946 ) (1,721 ) (5,667 ) Net earnings (loss) attributable to Greenbrier $ (11,048 ) $ 5,333 $ 24,163 $ (29,496 ) $ (11,048 ) The Greenbrier Companies, Inc. Consolidating Statement of Comprehensive Income (Loss) For the year ended August 31, 2013 (In thousands) Parent Combined Combined Non-Guarantor Eliminations Consolidated Net earnings (loss) $ (11,048 ) $ 5,333 $ 28,109 $ (27,775 ) $ (5,381 ) Other comprehensive income (loss) Translation adjustment – (34 ) 1,090 – 1,056 Reclassification of derivative financial instruments recognized in net earnings (loss) – 1,197 (1,758 ) – (561 ) Unrealized loss on derivative financial instruments – (202 ) (197 ) – (399 ) Other (net of tax effect) – – (203 ) – (203 ) – 961 (1,068 ) – (107 ) Comprehensive income (loss) (11,048 ) 6,294 27,041 (27,775 ) (5,488 ) Comprehensive (income) loss attributable to noncontrolling interest – – (3,974 ) (1,721 ) (5,695 ) Comprehensive income (loss) attributable to Greenbrier $ (11,048 ) $ 6,294 $ 23,067 $ (29,496 ) $ (11,183 ) The Greenbrier Companies, Inc. Condensed Consolidating Statement of Cash Flows For the year ended August 31, 2013 (In thousands) Parent Combined Combined Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net earnings (loss) $ (11,048 ) $ 5,333 $ 28,109 $ (27,775 ) $ (5,381 ) Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Deferred income taxes (1,005 ) (9,983 ) (611 ) 1,937 (9,662 ) Depreciation and amortization 2,124 29,688 9,734 (99 ) 41,447 Net gain on disposition of equipment – (16,238 ) (1,276 ) (558 ) (18,072 ) Accretion of debt discount 2,455 – – – 2,455 Stock based compensation expense 6,196 106 – – 6,302 Goodwill impairment – 76,900 – – 76,900 Noncontrolling interest adjustments – – – (2,144 ) (2,144 ) Other – 1,160 (70 ) (1 ) 1,089 Decrease (increase) in assets: Accounts receivable, net 15,704 (360 ) (6,140 ) (16,527 ) (7,323 ) Inventories – 4,975 14,280 (210 ) 19,045 Leased railcars for syndication – 25,325 – (2,444 ) 22,881 Other 272 416 28,400 (28,119 ) 969 Increase (decrease) in liabilities: Accounts payable and accrued liabilities (626 ) (27,742 ) (3,200 ) 16,139 (15,429 ) Deferred revenue (154 ) (7,505 ) (836 ) 10 (8,485 ) Net cash provided by (used in) operating activities 13,918 82,075 68,390 (59,791 ) 104,592 Cash flows from investing activities: Proceeds from sales of assets – 74,545 793 – 75,338 Capital expenditures (515 ) (28,586 ) (32,017 ) 291 (60,827 ) Decrease (increase) in restricted cash – 139 (2,669 ) – (2,530 ) Investment in and advances to unconsolidated affiliates (28,175 ) (31,325 ) (2,240 ) 59,500 (2,240 ) Other – – (3,582 ) – (3,582 ) Net cash provided by (used in) investing activities (28,690 ) 14,773 (39,715 ) 59,791 6,159 Cash flows from financing activities: Net changes in revolving notes with maturities of 90 days or less – – (16,396 ) – (16,396 ) Proceeds from revolving notes with maturities longer than 90 days – – 38,177 – 38,177 Repayment of revolving notes with maturities longer than 90 days – – (34,966 ) – (34,966 ) Intercompany advances 95,598 (93,991 ) (1,607 ) – – Proceeds from issuance of notes payable – – 2,186 – 2,186 Repayments of notes payable (52,868 ) (4,090 ) (1,873 ) – (58,831 ) Investment by joint venture partner – – 3,206 – 3,206 Excess tax benefit from restricted stock awards 900 – – – 900 Other (8 ) – – – (8 ) Net cash provided by (used in) financing activities 43,622 (98,081 ) (11,273 ) – (65,732 ) Effect of exchange rate changes – 964 (2,119 ) – (1,155 ) Increase (decrease) in cash and cash equivalents 28,850 (269 ) 15,283 – 43,864 Cash and cash equivalents Beginning of period 34,323 294 18,954 – 53,571 End of period $ 63,173 $ 25 $ 34,237 $ – $ 97,435 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Aug. 31, 2015 | |
Subsequent Events | Note 26 - Subsequent Events In April 2010, WLR – Greenbrier Rail Inc. (WLR-GBX) was formed and acquired a lease fleet of nearly 4,000 railcars valued at approximately $256.0 million. WLR-GBX is wholly owned by affiliates of WL Ross & Co, LLC (WL Ross), and a member of the Company’s board of directors, Wendy Teramoto, is also an affiliate of WL Ross. The Company performed certain management and advisory services until September 2015, and in exchange received management and other fee income tied to the performance of WLR-GBX. In September 2015, the Company purchased the entire remaining WLR-GBX lease fleet of 3,885 railcars for fair value and such transaction was approved by the Company’s disinterested, independent directors. The Company intends to sell the railcars and underlying attached leases to third parties in the short-term and therefore has classified these railcars as Leased railcars for syndication on the Company’s Consolidated Balance Sheet. The Company and WL Ross have agreed that the Company will receive a preferred return on the proceeds of the sale of the portfolio, after which it will share a portion of the profits with WL Ross up to certain defined levels. As of August 31, 2015, a $290.0 million revolving line of credit, maturing June 2016, secured by substantially all the Company’s assets in the U.S. not otherwise pledged as security for term loans, was available to provide working capital and interim financing of equipment, principally for the U.S. and Mexican operations. Advances under this facility bear interest at LIBOR plus 2.25% or Prime plus 1.25% depending on the type of borrowing. Available borrowings under the credit facility are generally based on defined levels of inventory, receivables, property, plant and equipment and leased equipment, as well as total debt to consolidated capitalization and fixed charges coverage ratios. In October 2015, this revolving line of credit was renewed on terms similar to the existing facility and increased to $550.0 million with a new maturity date of October 2020. In addition, advances under this renewed facility bear interest at LIBOR plus 1.75% or Prime plus 0.75% depending on the type of borrowing. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Aug. 31, 2015 | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2015 Revenue Manufacturing $ 379,949 $ 505,241 $ 593,376 $ 657,485 $ 2,136,051 Wheels & Parts 86,624 102,640 97,407 84,566 371,237 Leasing & Services 28,485 22,268 23,823 23,414 97,990 495,058 630,149 714,606 765,465 2,605,278 Cost of revenue Manufacturing 316,037 403,227 465,658 506,492 1,691,414 Wheels & Parts 76,872 92,768 89,645 75,395 334,680 Leasing & Services 14,081 8,844 10,017 8,889 41,831 406,990 504,839 565,320 590,776 2,067,925 Margin 88,068 125,310 149,286 174,689 537,353 Selling and administrative 33,729 32,899 45,595 39,568 151,791 Net gain on disposition of equipment (83 ) (121 ) (720 ) (406 ) (1,330 ) Earnings from operations 54,422 92,532 104,411 135,527 386,892 Other costs Interest and foreign exchange 3,141 1,929 4,285 1,824 11,179 Earnings before income tax and earnings (loss) from unconsolidated affiliates 51,281 90,603 100,126 133,703 375,713 Income tax expense (16,054 ) (29,372 ) (30,783 ) (35,951 ) (112,160 ) Earnings (loss) from unconsolidated affiliates 755 (185 ) 982 204 1,756 Net earnings 35,982 61,046 70,325 97,956 265,309 Net earnings attributable to noncontrolling interest (3,196 ) (10,695 ) (27,514 ) (31,072 ) (72,477 ) Net earnings attributable to Greenbrier $ 32,786 $ 50,351 $ 42,811 $ 66,884 $ 192,832 Basic earnings per common share: (1) $ 1.19 $ 1.86 $ 1.54 $ 2.23 $ 6.85 Diluted earnings per common share: (1) $ 1.01 $ 1.57 $ 1.33 $ 2.02 $ 5.93 (1) Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the “if converted” method in which debt issuance and interest costs, net of tax, were added back to net earnings. Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2014 Revenue Manufacturing $ 359,473 $ 347,755 $ 425,583 $ 492,105 $ 1,624,916 Wheels & Parts 113,401 136,540 140,663 105,023 495,627 Leasing & Services 17,481 17,921 27,039 20,978 83,419 490,355 502,216 593,285 618,106 2,203,962 Cost of revenue Manufacturing 311,440 306,572 351,829 404,167 1,374,008 Wheels & Parts 107,975 127,940 129,825 98,198 463,938 Leasing & Services 9,381 9,853 14,856 9,706 43,796 428,796 444,365 496,510 512,071 1,881,742 Margin 61,559 57,851 96,775 106,035 322,220 Selling and administrative 26,109 28,125 34,800 36,236 125,270 Net gain on disposition of equipment (3,651 ) (5,416 ) (5,619 ) (353 ) (15,039 ) Gain on contribution to joint venture – – – (29,006 ) (29,006 ) Restructuring charges 879 540 56 – 1,475 Earnings from operations 38,222 34,602 67,538 99,158 239,520 Other costs Interest and foreign exchange 4,744 4,099 5,437 4,415 18,695 Earnings before income tax and earnings (loss) from unconsolidated affiliates 33,478 30,503 62,101 94,743 220,825 Income tax expense (10,522 ) (9,883 ) (16,303 ) (35,693 ) (72,401 ) Earnings (loss) from unconsolidated affiliates 41 (67 ) 298 1,083 1,355 Net earnings 22,997 20,553 46,096 60,133 149,779 Net earnings attributable to noncontrolling interest (7,609 ) (4,966 ) (12,508 ) (12,777 ) (37,860 ) Net earnings attributable to Greenbrier $ 15,388 $ 15,587 $ 33,588 $ 47,356 $ 111,919 Basic earnings per common share: (1) $ 0.54 $ 0.55 $ 1.20 $ 1.69 $ 3.97 Diluted earnings per common share: (1) $ 0.49 $ 0.50 $ 1.03 $ 1.43 $ 3.44 (1) Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the “if converted” method in which debt issuance and interest costs, net of tax, were added back to net earnings. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2015 | |
Principles of consolidation | Principles of consolidation - |
Unclassified balance sheet | Unclassified balance sheet - |
Foreign currency translation | Foreign currency translation - |
Cash and cash equivalents | Cash and cash equivalents - |
Restricted cash | Restricted cash - |
Accounts receivable | Accounts receivable - As of August 31, (In thousands) 2015 2014 2013 Allowance for doubtful accounts Balance at beginning of period $ 2,033 $ 3,894 $ 3,525 Additions, net of reversals 684 604 543 Usage (108 ) (2,524 ) (285 ) Currency translation effect (160 ) 59 111 Balance at end of period $ 2,449 $ 2,033 $ 3,894 |
Inventories | Inventories - |
Leased railcars for syndication | Leased railcars for syndication - |
Equipment on operating leases, net | Equipment on operating leases, net - |
Investment in unconsolidated affiliates | Investment in unconsolidated affiliates - |
Property, plant and equipment | Property, plant and equipment - Depreciable Buildings and improvements 10 – 25 years Machinery and equipment 3 – 15 years Other 3 – 7 years |
Goodwill | Goodwill - |
Intangible and other assets, net | Intangible and other assets, net - |
Impairment of long-lived assets | Impairment of long-lived assets - |
Maintenance obligations | Maintenance obligations - |
Warranty accruals | Warranty accruals - |
Income taxes | Income taxes - |
Noncontrolling interest | Noncontrolling interest - |
Accumulated other comprehensive loss | Accumulated other comprehensive loss – (In thousands) Unrealized Foreign Other Accumulated Balance, August 31, 2014 $ (1,601 ) $ (4,813 ) $ (518 ) $ (6,932 ) 2015 activity (593 ) (13,853 ) 1 173 (14,273 ) Balance, August 31, 2015 $ (2,194 ) $ (18,666 ) $ (345 ) $ (21,205 ) 1 Primarily relates to the foreign currency translation of the Company’s Zloty functional currency operations in Poland to U.S. Dollars. The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Operations, with presentation location, were as follows: Year Ended August 31, (In thousands) 2015 2014 Financial Statement Location (Gain) loss on derivative financial instruments: Foreign exchange contracts $ (457 ) $ (741 ) Revenue Interest rate swap contracts 1,786 1,737 Interest and foreign exchange 1,329 996 Total before tax (592 ) (525 ) Tax expense $ 737 $ 471 Net of tax |
Revenue recognition | Revenue recognition - Railcars are generally manufactured, repaired or refurbished under firm orders from third parties. Revenue is recognized when new, used, refurbished or repaired railcars are completed, accepted by an unaffiliated customer and contractual contingencies removed. Marine revenues are either recognized on the percentage of completion method during the construction period or on the completed contract method based on the terms of the contract. Under the percentage of completion method, revenue is recognized based on the progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. Under the completed contract method, revenue is not recognized until the project has been fully completed. Cash payments received prior to meeting revenue recognition criteria are accounted for in Deferred revenue. Operating lease revenue is recognized as earned under the lease terms. Certain leases are operated under car hire arrangements whereby revenue is earned based on utilization, car hire rates and terms specified in the lease agreement. The Company sells railcars with leases attached to financial investors. Revenue associated with railcars that the Company has manufactured are recognized in Manufacturing once sold. Revenue associated with railcars which were obtained from a third party and subsequently sold are recognized in Leasing & Services. In addition the Company will often perform management or maintenance services at market rates for these railcars. The Company evaluates the terms of any remarketing agreements and any contractual provisions that represent retained risk and the level of retained risk based on those provisions. The Company applies a 10% threshold to determine whether the level of retained risk exceeds 10% of the individual fair value of the rail cars delivered. For any contracts with multiple elements (i.e. railcars, maintenance, management services, etc) the Company allocates revenue among the deliverables primarily based upon objective and reliable evidence of the fair value of each element in the arrangement. If objective and reliable evidence of fair value of any element is not available, the company will use its estimated selling price for purposes of allocating the total arrangement consideration among the elements. |
Interest and foreign exchange | Interest and foreign exchange - Years ended August 31, (In thousands) 2015 2014 2013 Interest and foreign exchange: Interest and other expense $ 18,975 $ 18,306 $ 19,203 Accretion of convertible debt discount – – 2,455 Foreign exchange (gain) loss (7,796 ) 389 500 $ 11,179 $ 18,695 $ 22,158 |
Research and development | Research and development - |
Net earnings per share | Net earnings per share - Diluted EPS is calculated using the more dilutive of two approaches. The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2026 Convertible notes and restricted stock units that are subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 2018 Convertible notes. Under the “if converted method”, debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes. The 2026 Convertible notes would only be included in the calculation of both approaches if the average stock price is greater than the initial conversion price using the treasury stock method. |
Stock-based compensation | Stock-based compensation - |
Management estimates | Management estimates - |
Prospective accounting changes | Prospective accounting changes In April 2015, the FASB issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs |
Foreign Exchange Contracts | |
Derivatives | Forward exchange contracts - |
Interest rate swap contracts | |
Derivatives | Interest rate instruments - |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Allowance for Doubtful Accounts | Accounts receivable includes receivables from related parties (see Note 17 – Related Party Transactions) and is stated net of allowance for doubtful accounts of $2.4 million and $2.0 million as of August 31, 2015 and 2014. As of August 31, (In thousands) 2015 2014 2013 Allowance for doubtful accounts Balance at beginning of period $ 2,033 $ 3,894 $ 3,525 Additions, net of reversals 684 604 543 Usage (108 ) (2,524 ) (285 ) Currency translation effect (160 ) 59 111 Balance at end of period $ 2,449 $ 2,033 $ 3,894 |
Estimated Useful Lives | Depreciation is provided on the straight-line method over estimated useful lives which are as follows: Depreciable Buildings and improvements 10 – 25 years Machinery and equipment 3 – 15 years Other 3 – 7 years |
Components of Accumulated Other Comprehensive Loss, Net of Tax | Accumulated other comprehensive loss, net of tax as appropriate, consisted of the following: (In thousands) Unrealized Foreign Other Accumulated Balance, August 31, 2014 $ (1,601 ) $ (4,813 ) $ (518 ) $ (6,932 ) 2015 activity (593 ) (13,853 ) 1 173 (14,273 ) Balance, August 31, 2015 $ (2,194 ) $ (18,666 ) $ (345 ) $ (21,205 ) 1 Primarily relates to the foreign currency translation of the Company’s Zloty functional currency operations in Poland to U.S. Dollars. |
Amounts Reclassified out of Accumulated Other Comprehensive Loss | The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Operations, with presentation location, were as follows: Year Ended August 31, (In thousands) 2015 2014 Financial Statement Location (Gain) loss on derivative financial instruments: Foreign exchange contracts $ (457 ) $ (741 ) Revenue Interest rate swap contracts 1,786 1,737 Interest and foreign exchange 1,329 996 Total before tax (592 ) (525 ) Tax expense $ 737 $ 471 Net of tax |
Interest and Foreign Exchange | Interest and foreign exchange - Years ended August 31, (In thousands) 2015 2014 2013 Interest and foreign exchange: Interest and other expense $ 18,975 $ 18,306 $ 19,203 Accretion of convertible debt discount – – 2,455 Foreign exchange (gain) loss (7,796 ) 389 500 $ 11,179 $ 18,695 $ 22,158 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Restructuring Reserve by Type of Cost | (In thousands) Accrual at Charged to Paid or Accrual at Employee termination costs $ 1,409 $ 1,290 $ 2,699 $ – Other costs 299 185 484 – Balance, August 31, 2014 $ 1,708 $ 1,475 $ 3,183 $ – (In thousands) Accrual at Charged to Paid or Accrual at Employee termination costs $ – $ 1,610 $ 201 $ 1,409 Contract termination costs – 50 50 – Other costs – 1,059 760 299 Balance, August 31, 2013 $ – $ 2,719 $ 1,011 $ 1,708 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Components of Inventories | As of August 31, (In thousands) 2015 2014 Manufacturing supplies and raw materials $ 311,880 $ 235,903 Work-in-process 75,032 48,853 Finished goods 61,302 23,766 Excess and obsolete adjustment (2,679 ) (2,866 ) $ 445,535 $ 305,656 |
Inventory Valuation | As of August 31, (In thousands) 2015 2014 2013 Excess and obsolete adjustment Balance at beginning of period $ 2,866 $ 4,228 $ 5,132 Charge to cost of revenue 2,564 1,945 2,661 Disposition of inventory (2,434 ) (3,307 ) (3,614 ) Currency translation effect (317 ) – 49 Balance at end of period $ 2,679 $ 2,866 $ 4,228 |
Equipment on Operating Leases40
Equipment on Operating Leases, net (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
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 are as follows: (In thousands) Year ending August 31, 2016 $ 26,074 2017 21,411 2018 13,664 2019 8,239 2020 3,508 Thereafter 1,043 $ 73,939 |
Property, Plant and Equipment41
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Property, Plant and Equipment, Net | As of August 31, (In thousands) 2015 2014 Land and improvements $ 46,849 $ 38,356 Machinery and equipment 283,032 242,911 Buildings and improvements 130,577 118,795 Construction in progress 63,518 58,164 Other 41,252 38,636 565,228 496,862 Accumulated depreciation (262,093 ) (253,164 ) $ 303,135 $ 243,698 |
Intangibles and Other Assets,42
Intangibles and Other Assets, net (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Identifiable Intangible and Other Assets | The following table summarizes the Company’s identifiable intangible and other assets balance: As of August 31, (In thousands) 2015 2014 Intangible assets subject to amortization: Customer relationships $ 65,023 $ 65,023 Accumulated amortization (33,828 ) (30,282 ) Other intangibles 3,422 3,699 Accumulated amortization (3,121 ) (3,156 ) 31,496 35,284 Intangible assets not subject to amortization 912 912 Prepaid and other assets 13,111 11,347 Nonqualified savings plan investments 11,815 10,223 Debt issuance costs, net 3,823 7,602 Assets held for sale 4,397 389 $ 65,554 $ 65,757 |
Accounts Payable and Accrued 43
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Accounts Payable and Accrued Liabilities | As of August 31, (In thousands) 2015 2014 Trade payables $ 263,665 $ 204,744 Accrued payroll and related liabilities 70,836 64,959 Other accrued liabilities 64,584 66,421 Income taxes payable 22,465 19,709 Accrued maintenance 18,642 14,329 Accrued warranty 11,512 9,340 Other 3,509 3,787 $ 455,213 $ 383,289 |
Maintenance and Warranty Accr44
Maintenance and Warranty Accruals (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Maintenance and Warranty Accruals | As of August 31, (In thousands) 2015 2014 2013 Accrued maintenance Balance at beginning of period $ 14,329 $ 11,420 $ 11,475 Charged to cost of revenue 13,622 11,423 9,003 Payments (9,309 ) (8,514 ) (9,058 ) Balance at end of period $ 18,642 $ 14,329 $ 11,420 Accrued warranty Balance at beginning of period $ 9,340 $ 12,128 $ 9,221 Charged to cost of revenue 7,206 2,205 6,157 Payments (4,703 ) (5,122 ) (3,315 ) Currency translation effect (331 ) 129 65 Balance at end of period $ 11,512 $ 9,340 $ 12,128 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Notes Payable | As of August 31, (In thousands) 2015 2014 Convertible senior notes, due 2018 $ 119,063 $ 230,000 Convertible senior notes, due 2026 14,851 14,856 Term loans 192,515 199,985 Other notes payable – 250 $ 326,429 $ 445,091 |
Principal Payments on the Notes Payable | Principal payments on the notes payable are expected as follows: (In thousands) Year ending August 31, 2016 (1) $ 22,460 2017 7,437 2018 (2) 126,282 2019 7,000 2020 163,250 Thereafter – $ 326,429 (1) The repayment of the $14.9 million of Convertible senior notes due 2026 is assumed to occur in 2016, which is the next date holders can require the Company to repurchase all or a portion of the notes. (2) The repayment of the $119.1 million of Convertible senior notes due 2018 is assumed to occur at the scheduled maturity in 2018 instead of assuming an earlier conversion by the holders. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Fair Values of Derivative Instruments | Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives August 31, August 31, 2015 2014 2015 2014 (In thousands) Balance sheet location Fair Fair Value Balance sheet location Fair Value Fair Value Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable $ 1,820 $ 129 Accounts payable and accrued liabilities $ 737 $ 704 Interest rate swap contracts Other assets – – Accounts payable and accrued liabilities 2,393 1,286 $ 1,820 $ 129 $ 3,130 $ 1,990 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable $ 93 $ 71 Accounts payable and accrued liabilities $ 76 $ 5 |
Effect of Derivative Instruments on Statement of Operations | The Effect of Derivative Instruments on the Statement of Operations Derivatives in cash flow hedging relationships Location of gain (loss) recognized in income on derivative Gain (loss) recognized in Years ended 2015 2014 Foreign forward exchange contract Interest and foreign exchange $ (366 ) $ 87 Interest rate swap contracts Interest and foreign exchange 60 17 $ (306 ) $ 104 Derivatives in cash flow hedging relationships Gain (loss) Years ended August 31, Location of gain (loss) Gain (loss) Years ended August 31, Location of Gain Years 2015 2014 2015 2014 2015 2014 Foreign forward exchange contracts $ 457 $ 108 Revenue $ 457 $ 741 Revenue $ 2,843 $ 1,029 Interest rate swap contracts (2,936 ) (1,790 ) Interest and foreign exchange (1,786 ) (1,737 ) Interest and foreign exchange – – $ (2,479 ) $ (1,682 ) $ (1,329 ) $ (996 ) $ 2,843 $ 1,029 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
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 2010 Amended and Restated Stock Incentive Plan: Shares Balance at August 31, 2012 (1) 2,565,350 Granted 387,986 Forfeited (13,333 ) Balance at August 31, 2013 (1) 2,940,003 Granted 269,665 Forfeited (28,811 ) Balance at August 31, 2014 (1) 3,180,857 Granted 402,196 Forfeited (163,192 ) Balance at August 31, 2015 (1) 3,419,861 (1) Balance represents cumulative grants net of forfeitures. |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Reconciliation of Shares Used in Computation of Basic and Diluted Earnings (Loss) Per Common Share | The shares used in the computation of the Company’s basic and diluted earnings (loss) per common share are reconciled as follows: Years ended August 31, (In thousands) 2015 2014 2013 Weighted average basic common shares outstanding (1) 28,151 28,164 26,678 Dilutive effect of 2018 Convertible notes (2) 5,130 6,045 – Dilutive effect of 2026 Convertible notes (3) 2 – – Dilutive effect of performance based restricted stock units (4) 45 – – Weighted average diluted common shares outstanding 33,328 34,209 26,678 (1) Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria through target levels of performance, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. Weighted average basic common shares outstanding exclude 0.9 million shares of unvested restricted stock and restricted stock units for the year ended August 31, 2013 as they are anti-dilutive due to a net loss. No restricted stock or restricted stock units were anti-dilutive for the years ended August 31, 2015 and 2014. (2) The dilutive effect of the 2018 Convertible notes was included for the years ended August, 2015 and 2014 as they were considered dilutive under the “if converted” method as further discussed below. The dilutive effect of the 2018 Convertible notes was excluded for the year ended August 31, 2013 due to a net loss. (3) The dilutive effect of the 2026 Convertible notes was included for the year ended August 31, 2015 as the average stock price was greater than $48.05, as further described below. The effect of the 2026 Convertible notes was excluded for the years ended August 31, 2014 and 2013 as the average stock price was less than $48.05 and therefore was considered anti-dilutive. (4) Restricted stock units that are 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 | Years ended August 31, 2015 2014 Net earnings attributable to Greenbrier $ 192,832 $ 111,919 Add back: Interest and debt issuance costs on the 2018 Convertible notes, net of tax 4,818 5,664 Earnings before interest and debt issuance costs on convertible notes $ 197,650 $ 117,583 Weighted average diluted common shares outstanding 33,328 34,209 Diluted earnings per share (1) $ 5.93 $ 3.44 (1) Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on convertible notes Weighted average diluted common shares outstanding |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Components of Income Tax Expense of Continuing Operations | Components of income tax expense of continuing operations were as follows: Years ended August 31, (In thousands) 2015 2014 2013 Current Federal $ 92,525 $ 49,795 $ 20,162 State 6,349 3,791 2,491 Foreign 32,748 23,229 11,465 131,622 76,815 34,118 Deferred Federal (13,565 ) (79 ) (6,597 ) State (1,112 ) (1,142 ) (2,357 ) Foreign (4,423 ) (3,148 ) (134 ) (19,100 ) (4,369 ) (9,088 ) Change in valuation allowance (362 ) (45 ) 30 Income Tax Expense $ 112,160 $ 72,401 $ 25,060 |
Reconciliation Between Effective and Statutory Tax Rates on Operations | The reconciliation between effective and statutory tax rates on operations is as follows: Years ended August 31, 2015 2014 2013 Federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 1.0 1.3 (1.2 ) Impact of foreign operations (0.5 ) (0.8 ) (19.1 ) Change in valuation allowance related to deferred tax asset (0.1 ) – 1.3 Change in income tax reserve for uncertain tax positions – – (7.1 ) Noncontrolling interest in flow-through entity (5.7 ) (5.3 ) (1.2 ) Permanent differences and other 0.2 0.7 1.9 Non-deductible goodwill – 1.9 119.0 Effective Tax Rate 29.9 % 32.8 % 128.6 % |
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 thousands) 2015 2014 Deferred tax assets: Contract placement $ 1,828 $ 1,938 Maintenance and warranty accruals 11,037 8,254 Accrued payroll and related liabilities 21,083 12,737 Deferred revenue 7,575 4,496 Inventories and other 9,612 10,709 Derivative instruments and translation adjustment 858 413 Investment and asset tax credits 776 1,388 Net operating losses 689 1,695 53,458 41,630 Deferred tax liabilities: Fixed assets 87,031 94,424 Investment in GBW Joint Venture 16,356 16,497 Original issue discount 4,036 3,481 Intangibles 3,030 2,719 Deferred gain on redemption of debt 2,611 3,511 Other 357 1,056 113,421 121,688 Valuation allowance 694 1,325 Net deferred tax liability $ 60,657 $ 81,383 |
Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: (In thousands) 2015 2014 2013 Unrecognized Tax Benefit – Opening Balance $ 1,268 $ 1,289 $ 3,720 Gross increases – tax positions in prior period 18 18 511 Gross decreases – tax positions in prior period – – (2,942 ) Settlements – – – Lapse of statute of limitations (11 ) (39 ) – Unrecognized Tax Benefit – Ending Balance $ 1,275 $ 1,268 $ 1,289 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
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, 2015: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 2,136,051 $ 7,534 $ 2,143,585 $ 396,921 $ 795 $ 397,716 Wheels & Parts 371,237 27,257 398,494 27,563 2,629 30,192 Leasing & Services 97,990 62,600 160,590 41,887 62,600 104,487 Eliminations – (97,391 ) (97,391 ) – (66,024 ) (66,024 ) Corporate – – – (79,479 ) – (79,479 ) $ 2,605,278 $ – $ 2,605,278 $ 386,892 $ – $ 386,892 For the year ended August 31, 2014: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 1,624,916 $ 790 $ 1,625,706 $ 202,555 $ 61 $ 202,616 Wheels & Parts 495,627 11,833 507,460 40,597 442 41,039 Leasing & Services 83,419 25,973 109,392 41,055 25,973 67,028 Eliminations – (38,596 ) (38,596 ) – (26,476 ) (26,476 ) Corporate – – – (44,687 ) – (44,687 ) $ 2,203,962 $ – $ 2,203,962 $ 239,520 $ – $ 239,520 For the year ended August 31, 2013: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 1,215,734 $ 7,244 $ 1,222,978 $ 88,822 $ (30 ) $ 88,792 Wheels & Parts 469,222 14,958 484,180 (60,966 ) (291 ) (61,257 ) Leasing & Services 71,462 18,740 90,202 42,411 18,737 61,148 Eliminations – (40,942 ) (40,942 ) – (18,416 ) (18,416 ) Corporate – – – (28,616 ) – (28,616 ) $ 1,756,418 $ – $ 1,756,418 $ 41,651 $ – $ 41,651 Years ended August 31, (In thousands) 2015 2014 2013 Assets: Manufacturing $ 675,409 $ 521,711 $ 401,630 Wheels & Parts 291,798 298,009 318,483 Leasing & Services 549,073 436,075 463,381 Unallocated 274,232 261,373 106,247 $ 1,790,512 $ 1,517,168 $ 1,289,741 Depreciation and amortization: Manufacturing $ 20,668 $ 15,341 $ 13,469 Wheels & Parts 11,748 12,582 12,843 Leasing & Services 12,740 12,499 15,135 $ 45,156 $ 40,422 $ 41,447 Capital expenditures: Manufacturing $ 84,354 $ 55,979 $ 37,017 Wheels & Parts 9,381 8,774 7,492 Leasing & Services 12,254 5,474 16,318 $ 105,989 $ 70,227 $ 60,827 |
Summary of Selected Geographic Information | The following table summarizes selected geographic information. Years ended August 31, (In thousands) 2015 2014 2013 Revenue (1) U.S. $ 2,404,266 $ 1,998,579 $ 1,544,775 Foreign 201,012 205,383 211,643 $ 2,605,278 $ 2,203,962 $ 1,756,418 Identifiable assets: U.S. $ 1,184,811 $ 1,115,473 $ 865,294 Canada – – 756 Mexico 524,724 321,391 348,144 Europe 80,977 80,304 75,547 $ 1,790,512 $ 1,517,168 $ 1,289,741 (1) Revenue is presented on the basis of geographic location of customers. |
Reconciliation of Earnings from Operations to Earnings Before Income Tax and Earnings (Loss) from Unconsolidated Affiliates | Reconciliation of earnings from operations to earnings before income tax and earnings (loss) from unconsolidated affiliates: Years ended August 31, (In thousands) 2015 2014 2013 Earnings from operations $ 386,892 $ 239,520 $ 41,651 Interest and foreign exchange 11,179 18,695 22,158 Earnings before income tax and earnings from unconsolidated affiliates $ 375,713 $ 220,825 $ 19,493 |
GBW Railcar Services Holdings, LLC | |
Segments' Internal Financial Reports | Information for the year ended August 31, 2014 below includes activity for GBW from July 18, 2014 to August 31, 2014. Years ended August 31, (In thousands) 2015 2014 GBW Joint Venture: Revenue $ 349,849 $ 38,549 Earnings (loss) from operations $ (1,160 ) $ 702 Assets (1) $ 239,871 $ 210,631 Depreciation and amortization $ 4,590 $ 470 Capital expenditures $ 26,396 $ 1,255 (1) Includes goodwill and intangible assets of $96.9 million and $100.2 million as of August 31, 2015 and 2014. |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Railcar Equipment | |
Aggregate Minimum Future Amounts Payable Under Non-Cancelable Operating Leases | Aggregate minimum future amounts payable under these non-cancelable railcar equipment leases are as follows: (In thousands) Year ending August 31, 2016 $ 2,464 2017 1,563 2018 1,046 2019 – 2020 – Thereafter – $ 5,073 |
Domestic railcar repair facilities, office space and certain manufacturing and office equipment | |
Aggregate Minimum Future Amounts Payable Under Non-Cancelable Operating Leases | Aggregate minimum future amounts payable under these non-cancelable operating leases are as follows: (In thousands) Year ending August 31, 2016 $ 3,798 2017 2,956 2018 2,432 2019 2,163 2020 1,997 Thereafter 1,556 $ 14,902 |
Fair Value of Financial Instr52
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
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 thousands) Carrying Amount Estimated Fair Value Notes payable as of August 31, 2015 $ 326,429 $ 345,350 Notes payable as of August 31, 2014 $ 445,091 $ 654,458 |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
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, 2015 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 1,913 $ – $ 1,913 $ – Nonqualified savings plan investments 11,815 11,815 – – Cash equivalents 5,071 5,071 – – $ 18,799 $ 16,886 $ 1,913 $ – Liabilities: Derivative financial instruments $ 3,206 $ – $ 3,206 $ – (1) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 14 Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2014 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 200 $ – $ 200 $ – Nonqualified savings plan investments 10,223 10,223 – – Cash equivalents 35,036 35,036 – – $ 45,459 $ 45,259 $ 200 $ – Liabilities: Derivative financial instruments $ 1,995 $ – $ 1,995 $ – (2) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 14 Derivative Instruments for further discussion. |
Assets or Liabilities Measured at Fair Value on Nonrecurring Basis | Assets or liabilities measured at fair value on a nonrecurring basis as of August 31, 2015 are: (In thousands) Total Level 1 Level 2 Level 3 Assets: Goodwill $ 43,265 $ – $ – $ 43,265 Assets or liabilities measured at fair value on a nonrecurring basis as of August 31, 2014 are: (In thousands) Total Level 1 Level 2 Level 3 Assets: Goodwill $ 43,265 $ – $ – $ 43,265 |
Guarantor_Non Guarantor (Tables
Guarantor/Non Guarantor (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Condensed Consolidating Balance Sheet | The Greenbrier Companies, Inc. Condensed Consolidating Balance Sheet As of August 31, 2015 Parent Combined Combined Eliminations Consolidated Assets Cash and cash equivalents $ 53,535 $ 119 $ 119,276 $ — $ 172,930 Restricted cash — 1,966 6,903 — 8,869 Accounts receivable, net 49,471 535,916 24,415 (413,773 ) 196,029 Inventories — 191,625 257,619 (3,709 ) 445,535 Leased railcars for syndication — 228,646 — (16,112 ) 212,534 Equipment on operating leases, net — 255,130 2,901 (2,640 ) 255,391 Property, plant and equipment, net 8,402 102,738 191,995 — 303,135 Investment in unconsolidated affiliates 1,209,698 169,659 21,369 (1,313,456 ) 87,270 Intangibles and other assets, net 15,895 46,387 14,235 (10,963 ) 65,554 Goodwill — 43,265 — — 43,265 $ 1,337,001 $ 1,575,451 $ 638,713 $ (1,760,653 ) $ 1,790,512 Liabilities and Equity Revolving notes $ 49,000 $ — $ 1,888 $ — $ 50,888 Accounts payable and accrued liabilities 421,249 282,662 208,538 (457,236 ) 455,213 Deferred income taxes — 72,326 — (11,669 ) 60,657 Deferred revenue — 33,792 — 44 33,836 Notes payable 133,914 191,422 1,093 — 326,429 Total equity Greenbrier 732,838 995,249 296,852 (1,292,101 ) 732,838 Noncontrolling interest — — 130,342 309 130,651 Total equity 732,838 995,249 427,194 (1,291,792 ) 863,489 $ 1,337,001 $ 1,575,451 $ 638,713 $ (1,760,653 ) $ 1,790,512 The Greenbrier Companies, Inc. Condensed Consolidating Balance Sheet As of August 31, 2014 Parent Combined Combined Eliminations Consolidated Assets Cash and cash equivalents $ 149,747 $ 112 $ 35,057 $ — $ 184,916 Restricted cash — 13,238 6,902 — 20,140 Accounts receivable, net 626 474,409 62,421 (337,777 ) 199,679 Inventories — 113,117 192,634 (95 ) 305,656 Leased railcars for syndication — 128,965 — (3,115 ) 125,850 Equipment on operating leases, net — 257,415 3,613 (2,180 ) 258,848 Property, plant and equipment, net 6,220 102,972 134,506 — 243,698 Investment in unconsolidated affiliates 910,732 143,768 3,961 (989,102 ) 69,359 Intangibles and other assets, net 17,031 45,013 14,221 (10,508 ) 65,757 Goodwill — 43,265 — — 43,265 $ 1,084,356 $ 1,322,274 $ 453,315 $ (1,342,777 ) $ 1,517,168 Liabilities and Equity Revolving notes $ — $ — $ 13,081 $ — $ 13,081 Accounts payable and accrued liabilities 315,879 221,863 185,335 (339,788 ) 383,289 Deferred income taxes 12,109 80,489 — (11,215 ) 81,383 Deferred revenue 122 19,950 487 44 20,603 Notes payable 244,856 198,705 1,530 — 445,091 Total equity Greenbrier 511,390 801,267 190,861 (992,128 ) 511,390 Noncontrolling interest — — 62,021 310 62,331 Total equity 511,390 801,267 252,882 (991,818 ) 573,721 $ 1,084,356 $ 1,322,274 $ 453,315 $ (1,342,777 ) $ 1,517,168 |
Condensed Consolidating Statement of Operations | The Greenbrier Companies, Inc. Condensed Consolidating Statement of Operations For the year ended August 31, 2015 Parent Combined Combined Non-Guarantor Eliminations Consolidated Revenue Manufacturing $ 1,641 $ 1,199,771 $ 1,810,001 $ (875,362 ) $ 2,136,051 Wheels & Parts – 376,135 – (4,898 ) 371,237 Leasing & Services (717 ) 98,292 1 414 97,990 924 1,674,198 1,810,002 (879,846 ) 2,605,278 Cost of revenue Manufacturing – 995,332 1,535,309 (839,227 ) 1,691,414 Wheels & Parts – 339,657 – (4,977 ) 334,680 Leasing & Services – 41,926 – (95 ) 41,831 – 1,376,915 1,535,309 (844,299 ) 2,067,925 Margin 924 297,283 274,693 (35,547 ) 537,353 Selling and administrative 72,686 37,379 42,624 (898 ) 151,791 Net gain on disposition of equipment – (1,043 ) (283 ) (4 ) (1,330 ) Earnings (loss) from operations (71,762 ) 260,947 232,352 (34,645 ) 386,892 Other costs Interest and foreign exchange 11,786 6,826 (7,433 ) – 11,179 Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates (83,548 ) 254,121 239,785 (34,645 ) 375,713 Income tax (expense) benefit (4,697 ) (86,757 ) (31,299 ) 10,593 (112,160 ) Earnings (loss) before earnings (loss) from unconsolidated affiliates (88,245 ) 167,364 208,486 (24,052 ) 263,553 Earnings (loss) from unconsolidated affiliates 281,077 27,013 59 (306,393 ) 1,756 Net earnings (loss) 192,832 194,377 208,545 (330,445 ) 265,309 Net (earnings) loss attributable to noncontrolling interest – – (89,692 ) 17,215 (72,477 ) Net earnings (loss) attributable to Greenbrier $ 192,832 $ 194,377 $ 118,853 $ (313,230 ) $ 192,832 The Greenbrier Companies, Inc. Condensed Consolidating Statement of Operations For the year ended August 31, 2014 Parent Combined Combined Non-Guarantor Eliminations Consolidated Revenue Manufacturing $ – $ 887,252 $ 1,419,143 $ (681,479 ) $ 1,624,916 Wheels & Parts – 502,210 – (6,583 ) 495,627 Leasing & Services 1,256 81,546 2 615 83,419 1,256 1,471,008 1,419,145 (687,447 ) 2,203,962 Cost of revenue Manufacturing – 792,267 1,257,953 (676,212 ) 1,374,008 Wheels & Parts – 470,521 – (6,583 ) 463,938 Leasing & Services – 43,878 – (82 ) 43,796 – 1,306,666 1,257,953 (682,877 ) 1,881,742 Margin 1,256 164,342 161,192 (4,570 ) 322,220 Selling and administrative 45,621 41,001 38,063 585 125,270 Net gain on disposition of equipment – (13,905 ) (820 ) (314 ) (15,039 ) Gain on contribution to joint venture – (29,006 ) – – (29,006 ) Restructuring charges – 1,475 – – 1,475 Earnings (loss) from operations (44,365 ) 164,777 123,949 (4,841 ) 239,520 Other costs Interest and foreign exchange 11,654 4,774 2,267 – 18,695 Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates (56,019 ) 160,003 121,682 (4,841 ) 220,825 Income tax (expense) benefit 7,563 (55,382 ) (26,170 ) 1,588 (72,401 ) Earnings (loss) before earnings (loss) from unconsolidated affiliates (48,456 ) 104,621 95,512 (3,253 ) 148,424 Earnings (loss) from unconsolidated affiliates 160,375 18,739 166 (177,925 ) 1,355 Net earnings (loss) 111,919 123,360 95,678 (181,178 ) 149,779 Net (earnings) loss attributable to noncontrolling interest – – (40,634 ) 2,774 (37,860 ) Net earnings (loss) attributable to Greenbrier $ 111,919 $ 123,360 $ 55,044 $ (178,404 ) $ 111,919 The Greenbrier Companies, Inc. Condensed Consolidating Statement of Operations For the year ended August 31, 2013 Parent Combined Combined Non-Guarantor Eliminations Consolidated Revenue Manufacturing $ – $ 666,171 $ 1,001,017 $ (451,454 ) $ 1,215,734 Wheels & Parts – 480,849 – (11,627 ) 469,222 Leasing & Services 806 70,672 1 (17 ) 71,462 806 1,217,692 1,001,018 (463,098 ) 1,756,418 Cost of revenue Manufacturing – 610,379 928,461 (455,951 ) 1,082,889 Wheels & Parts – 443,337 – (11,836 ) 431,501 Leasing & Services – 35,754 – (99 ) 35,655 – 1,089,470 928,461 (467,886 ) 1,550,045 Margin 806 128,222 72,557 4,788 206,373 Selling and administrative 38,636 30,937 33,602 – 103,175 Net gain on disposition of equipment – (16,238 ) (1,276 ) (558 ) (18,072 ) Goodwill impairment – 76,900 – – 76,900 Restructuring charges – 2,719 – – 2,719 Earnings (loss) from operations (37,830 ) 33,904 40,231 5,346 41,651 Other costs Interest and foreign exchange 15,358 3,901 3,100 (201 ) 22,158 Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates (53,188 ) 30,003 37,131 5,547 19,493 Income tax (expense) benefit 21,367 (36,202 ) (9,067 ) (1,158 ) (25,060 ) Earnings (loss) before earnings (loss) from unconsolidated affiliates (31,821 ) (6,199 ) 28,064 4,389 (5,567 ) Earnings (loss) from unconsolidated affiliates 20,773 11,532 45 (32,164 ) 186 Net earnings (loss) (11,048 ) 5,333 28,109 (27,775 ) (5,381 ) Net (earnings) loss attributable to noncontrolling interest – – (3,946 ) (1,721 ) (5,667 ) Net earnings (loss) attributable to Greenbrier $ (11,048 ) $ 5,333 $ 24,163 $ (29,496 ) $ (11,048 ) |
Consolidating Statement of Comprehensive Income (Loss) | The Greenbrier Companies, Inc. Consolidating Statement of Comprehensive Income (Loss) For the year ended August 31, 2015 (In thousands) Parent Combined Combined Non-Guarantor Eliminations Consolidated Net earnings (loss) $ 192,832 $ 194,377 $ 208,545 $ (330,445 ) $ 265,309 Other comprehensive income (loss) Translation adjustment (1,527 ) – (12,482 ) – (14,009 ) Reclassification of derivative financial instruments recognized in net earnings (loss) – 1,107 (370 ) – 737 Unrealized gain (loss) on derivative financial instruments 6 (1,825 ) 489 – (1,330 ) Other (net of tax effect) – – 173 – 173 (1,521 ) (718 ) (12,190 ) – (14,429 ) Comprehensive income (loss) 191,311 193,659 196,355 (330,445 ) 250,880 Comprehensive (income) loss attributable to noncontrolling interest – – (89,536 ) 17,215 (72,321 ) Comprehensive income (loss) attributable to Greenbrier $ 191,311 $ 193,659 $ 106,819 $ (313,230 ) $ 178,559 The Greenbrier Companies, Inc. Consolidating Statement of Comprehensive Income (Loss) For the year ended August 31, 2014 (In thousands) Parent Combined Combined Non-Guarantor Eliminations Consolidated Net earnings (loss) $ 111,919 $ 123,360 $ 95,678 $ (181,178 ) $ 149,779 Other comprehensive income (loss) Translation adjustment – – 116 – 116 Reclassification of derivative financial instruments recognized in net earnings (loss) – 1,071 (600 ) – 471 Unrealized gain (loss) on derivative financial instruments – (1,105 ) 86 – (1,019 ) Other (net of tax effect) – – 10 – 10 – (34 ) (388 ) – (422 ) Comprehensive income (loss) 111,919 123,326 95,290 (181,178 ) 149,357 Comprehensive (income) loss attributable to noncontrolling interest – – (40,640 ) 2,774 (37,866 ) Comprehensive income (loss) attributable to Greenbrier $ 111,919 $ 123,326 $ 54,650 $ (178,404 ) $ 111,491 The Greenbrier Companies, Inc. Consolidating Statement of Comprehensive Income (Loss) For the year ended August 31, 2013 (In thousands) Parent Combined Combined Non-Guarantor Eliminations Consolidated Net earnings (loss) $ (11,048 ) $ 5,333 $ 28,109 $ (27,775 ) $ (5,381 ) Other comprehensive income (loss) Translation adjustment – (34 ) 1,090 – 1,056 Reclassification of derivative financial instruments recognized in net earnings (loss) – 1,197 (1,758 ) – (561 ) Unrealized loss on derivative financial instruments – (202 ) (197 ) – (399 ) Other (net of tax effect) – – (203 ) – (203 ) – 961 (1,068 ) – (107 ) Comprehensive income (loss) (11,048 ) 6,294 27,041 (27,775 ) (5,488 ) Comprehensive (income) loss attributable to noncontrolling interest – – (3,974 ) (1,721 ) (5,695 ) Comprehensive income (loss) attributable to Greenbrier $ (11,048 ) $ 6,294 $ 23,067 $ (29,496 ) $ (11,183 ) |
Condensed Consolidating Statement of Cash Flows | The Greenbrier Companies, Inc. Condensed Consolidating Statement of Cash Flows For the year ended August 31, 2015 (In thousands) Parent Combined Combined Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net earnings (loss) $ 192,832 $ 194,377 $ 208,545 $ (330,445 ) $ 265,309 Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Deferred income taxes (12,694 ) (8,163 ) 706 – (20,151 ) Depreciation and amortization 2,098 26,771 16,382 (95 ) 45,156 Net gain on disposition of equipment – (1,043 ) (283 ) (4 ) (1,330 ) Stock based compensation expense 19,459 – – – 19,459 Noncontrolling interest adjustments – – – 17,215 17,215 Other 43 196 945 – 1,184 Decrease (increase) in assets: Accounts receivable, net (48,847 ) 24,283 24,026 14,190 13,652 Inventories – (78,507 ) (68,956 ) 3,614 (143,849 ) Leased railcars for syndication – (103,772 ) – 13,158 (90,614 ) Other 22,478 (691 ) (19,430 ) (1,782 ) 575 Increase (decrease) in liabilities: Accounts payable and accrued liabilities 41,138 60,761 25,399 (54,879 ) 72,419 Deferred revenue (122 ) 13,842 (412 ) – 13,308 Net cash provided by (used in) operating activities 216,385 128,054 186,922 (339,028 ) 192,333 Cash flows from investing activities: Proceeds from sales of assets – 4,959 336 – 5,295 Capital expenditures (4,323 ) (24,836 ) (77,228 ) 398 (105,989 ) Increase in restricted cash – 272 (1 ) – 271 Investment in and net advances to unconsolidated affiliates (346,168 ) (25,388 ) – 337,103 (34,453 ) Other 1,345 2,000 – – 3,345 Net cash provided by (used in) investing activities (349,146 ) (42,993 ) (76,893 ) 337,501 (131,531 ) Cash flows from financing activities: Net changes in revolving notes with maturities of 90 days or less 49,000 – – – 49,000 Proceeds from revolving notes with maturities longer than 90 days – – 44,451 – 44,451 Repayment of revolving notes with maturities longer than 90 days – – (55,644 ) – (55,644 ) Repayments of notes payable (5 ) (7,033 ) (437 ) – (7,475 ) Decrease in restricted cash – 11,000 – – 11,000 Intercompany advances 72,857 (85,925 ) 13,068 – – Repurchase of stock (69,950 ) – – – (69,950 ) Dividends (16,491 ) – – – (16,491 ) Cash distribution to joint venture partner – – (20,375 ) (20,375 ) Excess tax benefit from restricted stock awards 2,908 – – – 2,908 Other (248 ) – – (248 ) Net cash provided by (used in) financing activities 38,071 (81,958 ) (18,937 ) – (62,824 ) Effect of exchange rate changes (1,522 ) (3,096 ) (6,873 ) 1,527 (9,964 ) Increase (decrease) in cash and cash equivalents (96,212 ) 7 84,219 – (11,986 ) Cash and cash equivalents Beginning of period 149,747 112 35,057 – 184,916 End of period $ 53,535 $ 119 $ 119,276 $ – $ 172,930 The Greenbrier Companies, Inc. Condensed Consolidating Statement of Cash Flows For the year ended August 31, 2014 (In thousands) Parent Combined Combined Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net earnings (loss) $ 111,919 $ 123,360 $ 95,678 $ (181,178 ) $ 149,779 Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Deferred income taxes 4,016 (6,121 ) (2,582 ) – (4,687 ) Depreciation and amortization 1,875 27,259 11,370 (82 ) 40,422 Net gain on disposition of equipment – (13,905 ) (820 ) (314 ) (15,039 ) Stock based compensation expense 11,285 – – – 11,285 Gain on contribution to joint venture – (29,006 ) – – (29,006 ) Noncontrolling interest adjustments – – – 2,774 2,774 Other – 388 189 (1 ) 576 Decrease (increase) in assets: Accounts receivable, net 36,996 (11,493 ) (11,679 ) (37,573 ) (23,749 ) Inventories – 16,920 (26,595 ) – (9,675 ) Leased railcars for syndication – (60,547 ) – 2,768 (57,779 ) Other (935 ) 53,889 (4,424 ) (52,599 ) (4,069 ) Increase (decrease) in liabilities: Accounts payable and accrued liabilities (44,631 ) 45,953 26,483 35,557 63,362 Deferred revenue (33 ) 11,355 389 2 11,713 Net cash provided by (used in) operating activities 120,492 158,052 88,009 (230,646 ) 135,907 Cash flows from investing activities: Proceeds from sales of assets – 53,229 1,006 – 54,235 Capital expenditures (4,125 ) (16,636 ) (49,470 ) 4 (70,227 ) Increase in restricted cash – (331 ) (2 ) – (333 ) Investment in and net advances to unconsolidated affiliates (169,584 ) (73,558 ) (1,253 ) 230,642 (13,753 ) Net cash provided by (used in) investing activities (173,709 ) (37,296 ) (49,719 ) 230,646 (30,078 ) Cash flows from financing activities: Proceeds from revolving notes with maturities longer than 90 days – – 37,819 – 37,819 Repayment of revolving notes with maturities longer than 90 days – – (72,947 ) – (72,947 ) Proceeds from issuance of notes payable – 200,000 – – 200,000 Repayments of notes payable – (128,157 ) (640 ) – (128,797 ) Debt issuance costs – (382 ) – – (382 ) Increase in restricted cash – (11,000 ) – – (11,000 ) Intercompany advances 177,395 (181,161 ) 3,766 – – Repurchase of stock (33,583 ) – – – (33,583 ) Dividends (4,123 ) – – – (4,123 ) Cash distribution to joint venture partner – – (5,076 ) (5,076 ) Investment by joint venture partner 419 419 Excess tax benefit from restricted stock awards 109 – – – 109 Net cash provided by (used in) financing activities 139,798 (120,700 ) (36,659 ) – (17,561 ) Effect of exchange rate changes (7 ) 31 (811 ) – (787 ) Increase in cash and cash equivalents 86,574 87 820 – 87,481 Cash and cash equivalents Beginning of period 63,173 25 34,237 – 97,435 End of period $ 149,747 $ 112 $ 35,057 $ – $ 184,916 The Greenbrier Companies, Inc. Condensed Consolidating Statement of Cash Flows For the year ended August 31, 2013 (In thousands) Parent Combined Combined Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net earnings (loss) $ (11,048 ) $ 5,333 $ 28,109 $ (27,775 ) $ (5,381 ) Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Deferred income taxes (1,005 ) (9,983 ) (611 ) 1,937 (9,662 ) Depreciation and amortization 2,124 29,688 9,734 (99 ) 41,447 Net gain on disposition of equipment – (16,238 ) (1,276 ) (558 ) (18,072 ) Accretion of debt discount 2,455 – – – 2,455 Stock based compensation expense 6,196 106 – – 6,302 Goodwill impairment – 76,900 – – 76,900 Noncontrolling interest adjustments – – – (2,144 ) (2,144 ) Other – 1,160 (70 ) (1 ) 1,089 Decrease (increase) in assets: Accounts receivable, net 15,704 (360 ) (6,140 ) (16,527 ) (7,323 ) Inventories – 4,975 14,280 (210 ) 19,045 Leased railcars for syndication – 25,325 – (2,444 ) 22,881 Other 272 416 28,400 (28,119 ) 969 Increase (decrease) in liabilities: Accounts payable and accrued liabilities (626 ) (27,742 ) (3,200 ) 16,139 (15,429 ) Deferred revenue (154 ) (7,505 ) (836 ) 10 (8,485 ) Net cash provided by (used in) operating activities 13,918 82,075 68,390 (59,791 ) 104,592 Cash flows from investing activities: Proceeds from sales of assets – 74,545 793 – 75,338 Capital expenditures (515 ) (28,586 ) (32,017 ) 291 (60,827 ) Decrease (increase) in restricted cash – 139 (2,669 ) – (2,530 ) Investment in and advances to unconsolidated affiliates (28,175 ) (31,325 ) (2,240 ) 59,500 (2,240 ) Other – – (3,582 ) – (3,582 ) Net cash provided by (used in) investing activities (28,690 ) 14,773 (39,715 ) 59,791 6,159 Cash flows from financing activities: Net changes in revolving notes with maturities of 90 days or less – – (16,396 ) – (16,396 ) Proceeds from revolving notes with maturities longer than 90 days – – 38,177 – 38,177 Repayment of revolving notes with maturities longer than 90 days – – (34,966 ) – (34,966 ) Intercompany advances 95,598 (93,991 ) (1,607 ) – – Proceeds from issuance of notes payable – – 2,186 – 2,186 Repayments of notes payable (52,868 ) (4,090 ) (1,873 ) – (58,831 ) Investment by joint venture partner – – 3,206 – 3,206 Excess tax benefit from restricted stock awards 900 – – – 900 Other (8 ) – – – (8 ) Net cash provided by (used in) financing activities 43,622 (98,081 ) (11,273 ) – (65,732 ) Effect of exchange rate changes – 964 (2,119 ) – (1,155 ) Increase (decrease) in cash and cash equivalents 28,850 (269 ) 15,283 – 43,864 Cash and cash equivalents Beginning of period 34,323 294 18,954 – 53,571 End of period $ 63,173 $ 25 $ 34,237 $ – $ 97,435 |
Quarterly Results of Operatio55
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Aug. 31, 2015 | |
Quarterly Financial Data | (In thousands, except per share amount) First Second Third Fourth Total 2015 Revenue Manufacturing $ 379,949 $ 505,241 $ 593,376 $ 657,485 $ 2,136,051 Wheels & Parts 86,624 102,640 97,407 84,566 371,237 Leasing & Services 28,485 22,268 23,823 23,414 97,990 495,058 630,149 714,606 765,465 2,605,278 Cost of revenue Manufacturing 316,037 403,227 465,658 506,492 1,691,414 Wheels & Parts 76,872 92,768 89,645 75,395 334,680 Leasing & Services 14,081 8,844 10,017 8,889 41,831 406,990 504,839 565,320 590,776 2,067,925 Margin 88,068 125,310 149,286 174,689 537,353 Selling and administrative 33,729 32,899 45,595 39,568 151,791 Net gain on disposition of equipment (83 ) (121 ) (720 ) (406 ) (1,330 ) Earnings from operations 54,422 92,532 104,411 135,527 386,892 Other costs Interest and foreign exchange 3,141 1,929 4,285 1,824 11,179 Earnings before income tax and earnings (loss) from unconsolidated affiliates 51,281 90,603 100,126 133,703 375,713 Income tax expense (16,054 ) (29,372 ) (30,783 ) (35,951 ) (112,160 ) Earnings (loss) from unconsolidated affiliates 755 (185 ) 982 204 1,756 Net earnings 35,982 61,046 70,325 97,956 265,309 Net earnings attributable to noncontrolling interest (3,196 ) (10,695 ) (27,514 ) (31,072 ) (72,477 ) Net earnings attributable to Greenbrier $ 32,786 $ 50,351 $ 42,811 $ 66,884 $ 192,832 Basic earnings per common share: (1) $ 1.19 $ 1.86 $ 1.54 $ 2.23 $ 6.85 Diluted earnings per common share: (1) $ 1.01 $ 1.57 $ 1.33 $ 2.02 $ 5.93 (1) Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the “if converted” method in which debt issuance and interest costs, net of tax, were added back to net earnings. Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2014 Revenue Manufacturing $ 359,473 $ 347,755 $ 425,583 $ 492,105 $ 1,624,916 Wheels & Parts 113,401 136,540 140,663 105,023 495,627 Leasing & Services 17,481 17,921 27,039 20,978 83,419 490,355 502,216 593,285 618,106 2,203,962 Cost of revenue Manufacturing 311,440 306,572 351,829 404,167 1,374,008 Wheels & Parts 107,975 127,940 129,825 98,198 463,938 Leasing & Services 9,381 9,853 14,856 9,706 43,796 428,796 444,365 496,510 512,071 1,881,742 Margin 61,559 57,851 96,775 106,035 322,220 Selling and administrative 26,109 28,125 34,800 36,236 125,270 Net gain on disposition of equipment (3,651 ) (5,416 ) (5,619 ) (353 ) (15,039 ) Gain on contribution to joint venture – – – (29,006 ) (29,006 ) Restructuring charges 879 540 56 – 1,475 Earnings from operations 38,222 34,602 67,538 99,158 239,520 Other costs Interest and foreign exchange 4,744 4,099 5,437 4,415 18,695 Earnings before income tax and earnings (loss) from unconsolidated affiliates 33,478 30,503 62,101 94,743 220,825 Income tax expense (10,522 ) (9,883 ) (16,303 ) (35,693 ) (72,401 ) Earnings (loss) from unconsolidated affiliates 41 (67 ) 298 1,083 1,355 Net earnings 22,997 20,553 46,096 60,133 149,779 Net earnings attributable to noncontrolling interest (7,609 ) (4,966 ) (12,508 ) (12,777 ) (37,860 ) Net earnings attributable to Greenbrier $ 15,388 $ 15,587 $ 33,588 $ 47,356 $ 111,919 Basic earnings per common share: (1) $ 0.54 $ 0.55 $ 1.20 $ 1.69 $ 3.97 Diluted earnings per common share: (1) $ 0.49 $ 0.50 $ 1.03 $ 1.43 $ 3.44 (1) Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the “if converted” method in which debt issuance and interest costs, net of tax, were added back to net earnings. |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) | Jul. 18, 2014Segment | Aug. 31, 2015VehicleStoreSegment |
Organization and Nature of Operations [Line Items] | ||
Number of reportable segments | Segment | 3 | 4 |
BRAZIL | ||
Organization and Nature of Operations [Line Items] | ||
Ownership stake in a railcar manufacturer | 19.50% | |
Option to acquire an additional ownership interest | 40.50% | |
Option to acquire an additional ownership interest expiration period | Dec. 30, 2017 | |
Leasing & Services | ||
Organization and Nature of Operations [Line Items] | ||
Number of railcars owned | 9,300 | |
Number of railcars that get services | 260,000 | |
Leasing & Services | Equipment on operating leases, net | ||
Organization and Nature of Operations [Line Items] | ||
Number of railcars owned | 6,300 | |
Leasing & Services | Leased railcars for syndication | ||
Organization and Nature of Operations [Line Items] | ||
Number of railcars owned | 2,800 | |
Leasing & Services | Inventory Finished Goods | ||
Organization and Nature of Operations [Line Items] | ||
Number of railcars owned | 200 | |
GBW Railcar Services Holdings, LLC | ||
Organization and Nature of Operations [Line Items] | ||
Equity method investment, percentage of ownership interest | 50.00% | 50.00% |
GBW Railcar Services Holdings, LLC | North America | ||
Organization and Nature of Operations [Line Items] | ||
Number of railcar repair shops | Store | 33 | |
GBW Railcar Services Holdings, LLC | Association of American Railroads | ||
Organization and Nature of Operations [Line Items] | ||
Number of railcar repair shops | Store | 12 | |
GBW Railcar Services Holdings, LLC | Watco Companies LLC | ||
Organization and Nature of Operations [Line Items] | ||
Equity method investment, percentage of ownership interest | 50.00% |
Summary of Significant Accoun57
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | Jul. 18, 2014 | Aug. 31, 2012 | Oct. 31, 2006 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Foreign currency translation adjustment | $ 18,700 | $ 4,800 | $ 4,900 | |||
Allowance for doubtful accounts | 2,449 | 2,033 | 3,894 | $ 3,525 | ||
Leased railcars for syndication | $ 212,534 | 125,850 | ||||
Property, Plant and Equipment useful life | 35 years | |||||
Research and development | $ 2,500 | 3,600 | 2,000 | |||
Selling and Administrative | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Restricted stock compensation expense | $ 19,500 | $ 11,300 | $ 6,300 | |||
GIMSA | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Interest in joint venture | 50.00% | |||||
Minimum | Restricted Stock | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Vesting period of compensation expense | 1 year | |||||
Maximum | Restricted Stock | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Vesting period of compensation expense | 3 years | |||||
GBW Railcar Services Holdings, LLC | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Equity method investment, percentage of ownership interest | 50.00% | 50.00% | ||||
Ohio Castings LLC | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Equity method investment, percentage of ownership interest | 33.00% | |||||
Amsted-Maxion Hortolandia | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Equity method investment, percentage of ownership interest | 19.50% | |||||
GGSynergy SA de C.V. | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Equity method investment, percentage of ownership interest | 50.00% | |||||
MUL Greenbrier LLC | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Equity method investment, percentage of ownership interest | 8.00% | |||||
Green Union One Trust | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Equity method investment, percentage of ownership interest | 1.00% | |||||
Green Union Two Trust | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Equity method investment, percentage of ownership interest | 1.00% | |||||
Green Union Three Trust | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Equity method investment, percentage of ownership interest | 1.00% | |||||
Customer Relationships | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 5 years | |||||
Customer Relationships | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 20 years |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Allowance for doubtful accounts | |||
Balance at beginning of period | $ 2,033 | $ 3,894 | $ 3,525 |
Additions, net of reversals | 684 | 604 | 543 |
Usage | (108) | (2,524) | (285) |
Currency translation effect | (160) | 59 | 111 |
Balance at end of period | $ 2,449 | $ 2,033 | $ 3,894 |
Estimated Useful Lives (Detail)
Estimated Useful Lives (Detail) | 12 Months Ended |
Aug. 31, 2015 | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 35 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 | 25 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 | 15 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 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) $ in Thousands | 12 Months Ended | |
Aug. 31, 2015USD ($) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (6,932) | |
2015 activity | (14,273) | |
Ending balance | (21,205) | |
Unrealized (Gain) Loss on Derivative Financial Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (1,601) | |
2015 activity | (593) | |
Ending balance | (2,194) | |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (4,813) | |
2015 activity | (13,853) | [1] |
Ending balance | (18,666) | |
Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (518) | |
2015 activity | 173 | |
Ending balance | $ (345) | |
[1] | Primarily relates to the foreign currency translation of the Company's Zloty functional currency operations in Poland to U.S. Dollars. |
Amounts Reclassified out of Acc
Amounts Reclassified out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||||||||
Revenue | $ 765,465 | $ 714,606 | $ 630,149 | $ 495,058 | $ 618,106 | $ 593,285 | $ 502,216 | $ 490,355 | $ 2,605,278 | [1] | $ 2,203,962 | [1] | $ 1,756,418 | [1] |
Interest and foreign exchange | 1,824 | 4,285 | 1,929 | 3,141 | 4,415 | 5,437 | 4,099 | 4,744 | 11,179 | 18,695 | 22,158 | |||
Earnings before income tax and earnings from unconsolidated affiliates | 133,703 | 100,126 | 90,603 | 51,281 | 94,743 | 62,101 | 30,503 | 33,478 | 375,713 | 220,825 | 19,493 | |||
Tax expense | $ (35,951) | $ (30,783) | $ (29,372) | $ (16,054) | $ (35,693) | $ (16,303) | $ (9,883) | $ (10,522) | (112,160) | (72,401) | (25,060) | |||
Net of tax | 263,553 | 148,424 | $ (5,567) | |||||||||||
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] | ||||||||||||||
Earnings before income tax and earnings from unconsolidated affiliates | 1,329 | 996 | ||||||||||||
Tax expense | (592) | (525) | ||||||||||||
Net of tax | 737 | 471 | ||||||||||||
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 | (457) | (741) | ||||||||||||
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 | $ 1,786 | $ 1,737 | ||||||||||||
[1] | Revenue is presented on the basis of geographic location of customers. |
Interest and Foreign Exchange (
Interest and Foreign Exchange (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Interest Expense [Line Items] | |||||||||||
Interest and other expense | $ 18,975 | $ 18,306 | $ 19,203 | ||||||||
Accretion of convertible debt discount | 2,455 | ||||||||||
Foreign exchange (gain) loss | (7,796) | 389 | 500 | ||||||||
Interest and foreign exchange | $ 1,824 | $ 4,285 | $ 1,929 | $ 3,141 | $ 4,415 | $ 5,437 | $ 4,099 | $ 4,744 | $ 11,179 | $ 18,695 | $ 22,158 |
Gain on Contribution to Joint63
Gain on Contribution to Joint Venture - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2015 | Jul. 18, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Pre-tax non-cash gain from investment in unconsolidated affiliates | $ 29,006 | $ 29,006 | ||
GBW Railcar Services Holdings, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, percentage of ownership interest | 50.00% | 50.00% | ||
Pre-tax non-cash gain from investment in unconsolidated affiliates | $ 29,000 | |||
GBW Railcar Services Holdings, LLC | Watco Companies LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, percentage of ownership interest | 50.00% |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 56 | $ 540 | $ 879 | $ 1,475 | $ 2,719 |
Restructuring Reserve by Type o
Restructuring Reserve by Type of Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||||
Accrual at Beginning of Period | $ 1,708 | $ 1,708 | |||
Charged to Expense | $ 56 | $ 540 | 879 | 1,475 | $ 2,719 |
Paid or Settled | 3,183 | 1,011 | |||
Accrual at end of Period | 1,708 | ||||
Employee termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrual at Beginning of Period | 1,409 | 1,409 | |||
Charged to Expense | 1,290 | 1,610 | |||
Paid or Settled | 2,699 | 201 | |||
Accrual at end of Period | 1,409 | ||||
Contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charged to Expense | 50 | ||||
Paid or Settled | 50 | ||||
Other costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accrual at Beginning of Period | $ 299 | 299 | |||
Charged to Expense | 185 | 1,059 | |||
Paid or Settled | $ 484 | 760 | |||
Accrual at end of Period | $ 299 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 |
Inventory [Line Items] | ||
Manufacturing supplies and raw materials | $ 311,880 | $ 235,903 |
Work-in-process | 75,032 | 48,853 |
Finished goods | 61,302 | 23,766 |
Excess and obsolete adjustment | (2,679) | (2,866) |
Inventories | $ 445,535 | $ 305,656 |
Inventory Valuation (Detail)
Inventory Valuation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 2,866 | ||
Balance at end of period | 2,679 | $ 2,866 | |
Inventory Valuation Reserve | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 2,866 | 4,228 | $ 5,132 |
Charge to cost of revenue | 2,564 | 1,945 | 2,661 |
Disposition of inventory | (2,434) | (3,307) | (3,614) |
Currency translation effect | (317) | 49 | |
Balance at end of period | $ 2,679 | $ 2,866 | $ 4,228 |
Equipment on Operating Leases68
Equipment on Operating Leases, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | $ 262,093 | $ 253,164 | |
Depreciation expense | 31,400 | 25,800 | $ 25,100 |
Revenue associated with equipment hiring arrangements | 20,200 | 24,800 | 24,300 |
Property Subject to Operating Lease | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | 96,600 | 93,900 | |
Depreciation expense | $ 9,400 | $ 9,800 | $ 12,000 |
Aggregate Minimum Future Amount
Aggregate Minimum Future Amounts Receivable Under All Non-Cancelable Operating Leases and Subleases (Detail) $ in Thousands | Aug. 31, 2015USD ($) |
Future Minimum Payments Receivable [Line Items] | |
2,016 | $ 26,074 |
2,017 | 21,411 |
2,018 | 13,664 |
2,019 | 8,239 |
2,020 | 3,508 |
Thereafter | 1,043 |
Operating Leases, Future Minimum Payments Receivable, Total | $ 73,939 |
Property, Plant and Equipment70
Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 565,228 | $ 496,862 |
Accumulated depreciation | (262,093) | (253,164) |
Property, plant and equipment, net | 303,135 | 243,698 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 46,849 | 38,356 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 283,032 | 242,911 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 130,577 | 118,795 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 63,518 | 58,164 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 41,252 | $ 38,636 |
Property, Plant and Equipment71
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 31.4 | $ 25.8 | $ 25.1 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Goodwill [Line Items] | |||
Gross goodwill | $ 195,800 | ||
Accumulated goodwill impairment losses | 128,200 | ||
Goodwill other reductions | 24,300 | ||
Goodwill | 43,265 | $ 43,265 | |
Reductions, goodwill | (14,200) | ||
Goodwill impairment | $ 76,900 | ||
Wheels & Parts | |||
Goodwill [Line Items] | |||
Goodwill | $ 43,300 | $ 43,300 | |
Goodwill impairment | $ 76,900 |
Identifiable Intangible and Oth
Identifiable Intangible and Other Assets (Detail) - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 |
Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Net, Total | $ 31,496 | $ 35,284 |
Intangible assets not subject to amortization | 912 | 912 |
Prepaid and other assets | 13,111 | 11,347 |
Nonqualified savings plan investments | 11,815 | 10,223 |
Debt issuance costs, net | 3,823 | 7,602 |
Assets held for sale | 4,397 | 389 |
Total Intangible and other assets, net | 65,554 | 65,757 |
Customer Relationships | ||
Intangible Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 65,023 | 65,023 |
Accumulated amortization | (33,828) | (30,282) |
Other Intangible Assets | ||
Intangible Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 3,422 | 3,699 |
Accumulated amortization | $ (3,121) | $ (3,156) |
Intangibles and Other Assets,74
Intangibles and Other Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Schedule of Intangible Assets Disclosure [Line Items] | |||
Amortization expense | $ 3.7 | $ 4.5 | $ 4.3 |
Future amortization expense, 2016 | 3.6 | ||
Future amortization expense, 2017 | 3.5 | ||
Future amortization expense, 2018 | 3.4 | ||
Future amortization expense, 2019 | 3.4 | ||
Future amortization expense, 2020 | $ 3.4 |
Revolving Notes - Additional In
Revolving Notes - Additional Information (Detail) | Oct. 30, 2015USD ($) | Mar. 31, 2014 | Aug. 31, 2015USD ($)CreditFacilityFacility | Aug. 31, 2014USD ($) |
Line of Credit Facility [Line Items] | ||||
Revolving notes | $ 50,888,000 | $ 13,081,000 | ||
LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, percentage points added to the reference rate | 1.75% | |||
Senior Secured Credit Facilities, Consisting of 3 Components | ||||
Line of Credit Facility [Line Items] | ||||
Number of senior secured credit facilities | CreditFacility | 3 | |||
Line of credit facility maximum capacity | $ 366,100,000 | |||
Letter of credit facility outstanding amount | 47,200,000 | 9,600,000 | ||
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility maximum capacity | $ 290,000,000 | |||
Line of credit maturity date | 2016-06 | |||
Revolving notes | $ 49,000,000 | |||
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, percentage points added to the reference rate | 2.25% | |||
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 | 1.25% | |||
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility maximum capacity | $ 550,000,000 | |||
Line of credit maturity date | 2020-10 | |||
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | Subsequent Event | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, percentage points added to the reference rate | 1.75% | |||
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | Subsequent Event | Prime Rate | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, percentage points added to the reference rate | 0.75% | |||
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility maximum capacity | $ 16,100,000 | |||
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit maturity date | 2016-02 | |||
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit maturity date | 2017-06 | |||
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 | 1.30% | |||
Mexican Joint Venture Line of Credit, 3rd Component of Senior Secured Credit Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility maximum capacity | $ 60,000,000 | |||
Number of lines of credits | Facility | 3 | |||
Revolving notes | $ 1,900,000 | $ 13,100,000 | ||
Mexican Joint Venture Line of Credit 1, 3rd Component of Senior Secured Credit Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility maximum capacity | $ 10,000,000 | |||
Line of credit facility borrowings outstanding due period | 2016-06 | |||
Mexican Joint Venture Line of Credit 1, 3rd Component of Senior Secured Credit Facilities | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, percentage points added to the reference rate | 2.50% | |||
Mexican Joint Venture Line of Credit 2, 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 | 2019-01 | |||
Mexican Joint Venture 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 | 2.00% | |||
Mexican Joint Venture Line of Credit 3, 3rd Component of Senior Secured Credit Facilities | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility maximum capacity | $ 20,000,000 | |||
Line of credit facility borrowings outstanding due period | 2017-08 | |||
Joint venture partner each guaranteed percentage | 50.00% | |||
Mexican Joint Venture 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 | 2.00% |
Accounts Payable and Accrued 76
Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Accounts Payable and Accrued Liabilities [Line Items] | ||||
Trade payables | $ 263,665 | $ 204,744 | ||
Accrued payroll and related liabilities | 70,836 | 64,959 | ||
Other accrued liabilities | 64,584 | 66,421 | ||
Income taxes payable | 22,465 | 19,709 | ||
Accrued maintenance | 18,642 | 14,329 | $ 11,420 | $ 11,475 |
Accrued warranty | 11,512 | 9,340 | $ 12,128 | $ 9,221 |
Other | 3,509 | 3,787 | ||
Accounts payable and accrued liabilities | $ 455,213 | $ 383,289 |
Maintenance and Warranty Accr77
Maintenance and Warranty Accruals (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Accrued maintenance | |||
Balance at beginning of period | $ 14,329 | $ 11,420 | $ 11,475 |
Charged to cost of revenue | 13,622 | 11,423 | 9,003 |
Payments | (9,309) | (8,514) | (9,058) |
Balance at end of period | 18,642 | 14,329 | 11,420 |
Accrued warranty | |||
Balance at beginning of period | 9,340 | 12,128 | 9,221 |
Charged to cost of revenue | 7,206 | 2,205 | 6,157 |
Payments | (4,703) | (5,122) | (3,315) |
Currency translation effect | (331) | 129 | 65 |
Balance at end of period | $ 11,512 | $ 9,340 | $ 12,128 |
Notes Payable (Detail)
Notes Payable (Detail) - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 |
Debt Instrument [Line Items] | ||
Term loans | $ 192,515 | $ 199,985 |
Other notes payable | 250 | |
Notes payable | 326,429 | 445,091 |
2018 Senior Notes | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | 119,063 | 230,000 |
2026 Senior Notes | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | $ 14,851 | $ 14,856 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2014USD ($) | May. 31, 2013USD ($) | Aug. 31, 2015USD ($)$ / sharesshares | Aug. 31, 2014USD ($)$ / shares | Aug. 31, 2013USD ($)$ / shares | |
Debt Instrument [Line Items] | |||||
Senior term debt | $ 125,000 | ||||
Payment of aggregate principal amount of notes | $ 7,475 | $ 128,797 | $ 58,831 | ||
Periodic Principal Payment | 1,750 | ||||
Balloon payment | $ 159,800 | ||||
Swap agreement interest rate | 50.00% | ||||
Fixed interest rate | 3.7375% | ||||
Debt instrument amount outstanding | 191,300 | ||||
LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, percentage points added to the reference rate | 1.75% | ||||
6-Year Senior Term Debt | |||||
Debt Instrument [Line Items] | |||||
Senior term debt | $ 200,000 | ||||
Senior term debt, maturity term | 6 years | ||||
Other Term Loan Due November 2015 to February 2018 | |||||
Debt Instrument [Line Items] | |||||
Senior term debt | $ 1,300 | ||||
2018 Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 3.50% | ||||
Description of long term debt | Convertible senior notes, due 2018, bear interest at a fixed rate of 3.5%, paid semi-annually in arrears on April 1st and October 1st. | ||||
Debt instrument, maturity date | Apr. 1, 2018 | ||||
Convertible notes initial conversion rate, shares per $1,000 principal amount | 26.2838 | ||||
Convertible notes conversion rate, per share | $ / shares | $ 38.05 | ||||
Debt issuance costs | $ 7,900 | ||||
Senior term debt | 230,000 | ||||
Original debt Conversion, Amount | $ 110,900 | ||||
Conversion of debt in to common stock, shares | shares | 2.9 | ||||
Debt instrument, carrying value of the principal balance | $ 119,100 | ||||
Debt issuance costs removed from Intangibles and other assets, net and charged against additional paid in capital | $ 1,500 | ||||
2026 Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Description of long term debt | Convertible senior notes, due 2026, bear interest at a fixed rate of 2.375%, paid semi-annually in arrears on May 15th and November 15th. | ||||
Convertible notes initial conversion rate, shares per $1,000 principal amount | 20.8125 | ||||
Convertible notes conversion rate, per share | $ / shares | $ 48.05 | $ 48.05 | $ 48.05 | ||
Convertible senior notes, fixed interest rate | 2.375% | ||||
Payment of aggregate principal amount of notes | $ 52,900 | ||||
Contingent interest rate | 0.375% | ||||
Repurchase of notes description | On May 15, 2016 and May 15, 2021 or in the event of certain circumstances or fundamental changes, holders can require the Company to repurchase all or a portion of their notes at a price equal to 100% of the principal amount of the notes plus accrued and unpaid interest. | ||||
Repurchase percentage price of principal of notes amount | 100.00% | ||||
Equity component of debt | $ 14,900 | $ 14,900 | |||
Accretion of debt discount, before tax | $ 2,500 |
Principal Payments on Notes Pay
Principal Payments on Notes Payable (Detail) - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 | |
Debt Instrument [Line Items] | |||
2,016 | [1] | $ 22,460 | |
2,017 | 7,437 | ||
2,018 | [2] | 126,282 | |
2,019 | 7,000 | ||
2,020 | 163,250 | ||
Thereafter | 0 | ||
Notes payable | $ 326,429 | $ 445,091 | |
[1] | The repayment of the $14.9 million of Convertible senior notes due 2026 is assumed to occur in 2016, which is the next date holders can require the Company to repurchase all or a portion of the notes. | ||
[2] | The repayment of the $119.1 million of Convertible senior notes due 2018 is assumed to occur at the scheduled maturity in 2018 instead of assuming an earlier conversion by the holders. |
Principal Payments on Notes P81
Principal Payments on Notes Payable (Parenthetical) (Detail) - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 |
Debt Instrument [Line Items] | ||
Notes payable | $ 326,429 | $ 445,091 |
Convertible senior notes due 2026 is assumed to occur in 2016, which is the next date holders can require the Company to repurchase all or a portion of the notes. | 2026 Senior Notes | ||
Debt Instrument [Line Items] | ||
Notes payable | 14,900 | |
Convertible senior notes due 2018 is assumed to occur at the scheduled maturity in 2018 instead of assuming an earlier conversion by the holders. | 2018 Senior Notes | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 119,100 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 12 Months Ended |
Aug. 31, 2015USD ($) | |
Foreign Exchange Contracts | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 386,200,000 |
Interest rate swap contracts | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 95,600,000 |
Maturity date | 2020-03 |
Unrealized Pre-tax gain (loss) that would be reclassified to interest expense in the next 12 months | $ 1,700,000 |
Fair Values of Derivative Instr
Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 1,820 | $ 129 |
Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 3,130 | 1,990 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 1,820 | 129 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 737 | 704 |
Designated as Hedging Instrument | Interest rate swap contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 2,393 | 1,286 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 93 | 71 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 76 | $ 5 |
Effect of Derivative Instrument
Effect of Derivative Instruments on Statement of Operations (Detail) - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2015 | Aug. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income on derivative | $ (306) | $ 104 |
Gain (loss) recognized in OCI on derivatives (effective portion) | (2,479) | (1,682) |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (1,329) | (996) |
Gain (loss) Recognized on Derivative (Ineffective portion and Amount Excluded from Effectiveness Testing) | 2,843 | 1,029 |
Foreign Exchange Forward | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives (effective portion) | 457 | 108 |
Foreign Exchange Forward | Interest and Foreign Exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income on derivative | (366) | 87 |
Foreign Exchange Forward | Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 457 | 741 |
Gain (loss) Recognized on Derivative (Ineffective portion and Amount Excluded from Effectiveness Testing) | 2,843 | 1,029 |
Interest rate swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives (effective portion) | (2,936) | (1,790) |
Interest rate swap contracts | Interest and Foreign Exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income on derivative | 60 | 17 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ (1,786) | $ (1,737) |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Oct. 30, 2015 | Jan. 31, 2015 | Jan. 31, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | |
Stockholders Equity Note [Line Items] | ||||||||
Total number of additional shares reserved for issuance | 1,500,000 | |||||||
Maximum aggregate number of common shares authorized for issuance | 4,325,000 | |||||||
Shares available for grant | 905,139 | 1,144,143 | 1,384,997 | |||||
Restricted stock grants | 402,196 | 269,665 | 387,986 | |||||
Unvested restricted stock grants | 472,142 | |||||||
Additional shares available for grant | 472,142 | |||||||
Unamortized compensation cost of restricted stock grants | $ 18,600,000 | |||||||
Stock repurchase program total cost of repurchased shares | 70,218,000 | $ 34,438,000 | ||||||
Selling and Administrative | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Restricted stock compensation expense | 19,500,000 | 11,300,000 | $ 6,300,000 | |||||
Share Repurchase Program - 2014 | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Amount increased in share repurchase program | $ 25,000,000 | |||||||
Expiration date of share repurchase program | Jun. 30, 2016 | |||||||
Stock repurchase program total cost of repurchased shares | $ 70,200,000 | $ 34,400,000 | ||||||
Repurchase of common stock, shares | 1,386,993 | 764,546 | ||||||
Remaining authorized repurchase amount | $ 20,400,000 | |||||||
Subsequent Event | Share Repurchase Program - 2014 | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Amount authorized for repurchase | $ 175,000,000 | |||||||
Amount increased in share repurchase program | $ 100,000,000 | |||||||
Expiration date of share repurchase program | Jan. 1, 2018 | |||||||
Maximum | Share Repurchase Program - 2013 | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Amount authorized for repurchase | $ 50,000,000 | |||||||
Maximum | Share Repurchase Program - 2014 | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Amount authorized for repurchase | $ 50,000,000 | |||||||
Unvested Restricted Stock Grants | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Unvested restricted stock grants | 815,496 | 816,090 | ||||||
Fair value of awards granted | $ 24,600,000 | $ 13,100,000 | $ 9,200,000 | |||||
Restricted Stock | Maximum | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Vesting period of compensation expense | 3 years | |||||||
Restricted Stock | Minimum | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Vesting period of compensation expense | 1 year |
Summary of Restricted Stock Sha
Summary of Restricted Stock Share and Restricted Stock Unit Grant Transactions for Shares, both Vested and Unvested (Detail) - shares | 12 Months Ended | |||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | ||
Reconciliation of Restricted Stock Activity [Line Items] | ||||
Beginning Balance | [1] | 3,180,857 | 2,940,003 | 2,565,350 |
Granted | 402,196 | 269,665 | 387,986 | |
Forfeited | (163,192) | (28,811) | (13,333) | |
Ending Balance | [1] | 3,419,861 | 3,180,857 | 2,940,003 |
[1] | Balance represents cumulative grants net of forfeitures. |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Earnings (Loss) Per Common Share (Detail) - shares shares in Thousands | 12 Months Ended | |||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | ||
Earnings Per Share Disclosure [Line Items] | ||||
Weighted average basic common shares outstanding | [1] | 28,151 | 28,164 | 26,678 |
Dilutive effect of performance based restricted stock units | [2] | 45 | ||
Weighted average diluted common shares outstanding | 33,328 | 34,209 | 26,678 | |
2018 Senior Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Dilutive effect of convertible notes | [3] | 5,130 | 6,045 | |
2026 Senior Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Dilutive effect of convertible notes | [4] | 2 | ||
[1] | Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria through target levels of performance, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. Weighted average basic common shares outstanding exclude 0.9 million shares of unvested restricted stock and restricted stock units for the year ended August 31, 2013 as they are anti-dilutive due to a net loss. No restricted stock or restricted stock units were anti-dilutive for the years ended August 31, 2015 and 2014. | |||
[2] | Restricted stock units that are 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. | |||
[3] | The dilutive effect of the 2018 Convertible notes was included for the years ended August, 2015 and 2014 as they were considered dilutive under the "if converted" method as further discussed below. The dilutive effect of the 2018 Convertible notes was excluded for the year ended August 31, 2013 due to a net loss. | |||
[4] | The dilutive effect of the 2026 Convertible notes was included for the year ended August 31, 2015 as the average stock price was greater than $48.05, as further described below. The effect of the 2026 Convertible notes was excluded for the years ended August 31, 2014 and 2013 as the average stock price was less than $48.05 and therefore was considered anti-dilutive. |
Reconciliation of Basic and D88
Reconciliation of Basic and Diluted Earnings (Loss) Per Common Share (Parenthetical) (Detail) - $ / shares | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
2026 Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Convertible notes conversion rate, per share | $ 48.05 | $ 48.05 | $ 48.05 |
Restricted Stock | |||
Earnings Per Share Disclosure [Line Items] | |||
Anti-dilutive shares excluded from calculation | 0 | 0 | 900,000 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - $ / shares | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 |
2026 Senior Notes | |||
Computation of Earnings Per Share [Line Items] | |||
Convertible notes conversion rate, per share | $ 48.05 | $ 48.05 | $ 48.05 |
Approach to Calculate Diluted E
Approach to Calculate Diluted Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||||||
Net earnings attributable to Greenbrier | $ 66,884 | $ 42,811 | $ 50,351 | $ 32,786 | $ 47,356 | $ 33,588 | $ 15,587 | $ 15,388 | $ 192,832 | $ 111,919 | $ (11,048) | ||||||||||
Earnings before interest and debt issuance costs on convertible notes | $ 197,650 | $ 117,583 | |||||||||||||||||||
Weighted average diluted common shares outstanding | 33,328 | 34,209 | 26,678 | ||||||||||||||||||
Diluted earnings per share | $ 2.02 | [1] | $ 1.33 | [1] | $ 1.57 | [1] | $ 1.01 | [1] | $ 1.43 | [1] | $ 1.03 | [1] | $ 0.50 | [1] | $ 0.49 | [1] | $ 5.93 | [1],[2] | $ 3.44 | [1],[2] | $ (0.41) |
2018 Senior Notes | |||||||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||||||
Interest and debt issuance costs on the 2018 Convertible notes, net of tax | $ 4,818 | $ 5,664 | |||||||||||||||||||
[1] | Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings. | ||||||||||||||||||||
[2] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on convertible notes Weighted average diluted common shares outstanding |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | 12 Months Ended | |||||
Aug. 31, 2015USD ($)Vehicle | Aug. 31, 2014USD ($) | Aug. 31, 2013USD ($) | Sep. 30, 2015Vehicle | Jul. 18, 2014 | Apr. 30, 2010USD ($)Vehicle | |
Related Party Transaction [Line Items] | ||||||
Related party expenses for aircraft usage | $ 0.5 | $ 0.5 | $ 0.2 | |||
GBW Railcar Services Holdings, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Equity method investment, percentage of ownership interest | 50.00% | 50.00% | ||||
Related party transaction other revenue | $ 4.9 | 0.6 | ||||
Sale of wheel sets and components | 25.4 | 1.3 | ||||
Related party expenses for aircraft usage | 2.4 | 0.1 | ||||
Note receivable | 31.5 | |||||
Account receivable | 21 | |||||
GBW Railcar Services Holdings, LLC | Watco Companies LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Equity method investment, percentage of ownership interest | 50.00% | |||||
Schnitzer | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction other revenue | 3.5 | 3 | 8 | |||
WL Ross & Co., LLC (WL Ross) | ||||||
Related Party Transaction [Line Items] | ||||||
Number of railcars owned | Vehicle | 4,000 | |||||
Value of railcars | $ 256 | |||||
Contract placement fee | $ 0.9 | 0.9 | 0.9 | |||
Number of railcars leased | Vehicle | 400 | |||||
Lease expense | $ 2.9 | $ 3.3 | $ 3.2 | |||
WL Ross & Co., LLC (WL Ross) | Subsequent Event | ||||||
Related Party Transaction [Line Items] | ||||||
Number of railcars owned | Vehicle | 3,885 |
Components of Income Tax Expens
Components of Income Tax Expense of Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Current | |||||||||||
Federal | $ 92,525 | $ 49,795 | $ 20,162 | ||||||||
State | 6,349 | 3,791 | 2,491 | ||||||||
Foreign | 32,748 | 23,229 | 11,465 | ||||||||
Current Income Tax Expense (Benefit), Total | 131,622 | 76,815 | 34,118 | ||||||||
Deferred | |||||||||||
Federal | (13,565) | (79) | (6,597) | ||||||||
State | (1,112) | (1,142) | (2,357) | ||||||||
Foreign | (4,423) | (3,148) | (134) | ||||||||
Total Deferred Income Tax Expense (Benefit) | (19,100) | (4,369) | (9,088) | ||||||||
Change in valuation allowance | (362) | (45) | 30 | ||||||||
Income Tax Expense | $ 35,951 | $ 30,783 | $ 29,372 | $ 16,054 | $ 35,693 | $ 16,303 | $ 9,883 | $ 10,522 | $ 112,160 | $ 72,401 | $ 25,060 |
Reconciliation Between Effectiv
Reconciliation Between Effective and Statutory Tax Rates on Continuing Operations (Detail) | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Income Taxes [Line Items] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.00% | 1.30% | (1.20%) |
Impact of foreign operations | (0.50%) | (0.80%) | (19.10%) |
Change in valuation allowance related to deferred tax asset | (0.10%) | 1.30% | |
Change in income tax reserve for uncertain tax positions | (7.10%) | ||
Noncontrolling interest in flow-through entity | (5.70%) | (5.30%) | (1.20%) |
Permanent differences and other | 0.20% | 0.70% | 1.90% |
Non-deductible goodwill | 1.90% | 119.00% | |
Effective Tax Rate | 29.90% | 32.80% | 128.60% |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences that give rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 |
Deferred tax assets: | ||
Contract placement | $ 1,828 | $ 1,938 |
Maintenance and warranty accruals | 11,037 | 8,254 |
Accrued payroll and related liabilities | 21,083 | 12,737 |
Deferred revenue | 7,575 | 4,496 |
Inventories and other | 9,612 | 10,709 |
Derivative instruments and translation adjustment | 858 | 413 |
Investment and asset tax credits | 776 | 1,388 |
Net operating losses | 689 | 1,695 |
Deferred Tax Assets, Gross, Total | 53,458 | 41,630 |
Deferred tax liabilities: | ||
Fixed assets | 87,031 | 94,424 |
Investment in GBW Joint Venture | 16,356 | 16,497 |
Original issue discount | 4,036 | 3,481 |
Intangibles | 3,030 | 2,719 |
Deferred gain on redemption of debt | 2,611 | 3,511 |
Other | 357 | 1,056 |
Deferred Tax Liabilities, Gross, Total | 113,421 | 121,688 |
Valuation allowance | 694 | 1,325 |
Net deferred tax liability | $ 60,657 | $ 81,383 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Excess tax benefits from vesting of restricted stock awards | $ 2,908 | $ 109 | $ 900 |
Net increase (Decrease) in the valuation allowance | 600 | ||
Cumulative undistributed earnings of foreign subsidiaries | 115,900 | ||
Unrecognized tax benefits, excluding interest | 1,000 | 1,000 | |
Unrecognized tax benefits if recognized would affect effective tax rate | 700 | ||
Accrued interest related to uncertain tax provisions | 300 | 200 | |
Interest benefit relating to reserves for uncertain tax provisions | 100 | $ 100 | |
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 2,500 | ||
Operating loss carryforwards expiration dates | 2,020 | ||
Credit carryforwards | $ 700 | ||
Credit carryforwards expiration Year | 2,021 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 4,100 | ||
Operating loss carryforwards expiration dates | 2,016 |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Income Taxes [Line Items] | |||
Unrecognized Tax Benefit - Opening Balance | $ 1,268 | $ 1,289 | $ 3,720 |
Gross increases - tax positions in prior period | 18 | 18 | 511 |
Gross decreases - tax positions in prior period | (2,942) | ||
Settlements | 0 | 0 | 0 |
Lapse of statute of limitations | (11) | (39) | |
Unrecognized Tax Benefit - Ending Balance | $ 1,275 | $ 1,268 | $ 1,289 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | Jul. 18, 2014 | Aug. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 3 | 4 |
GBW Railcar Services Holdings, LLC | ||
Segment Reporting Information [Line Items] | ||
Equity method investment, percentage of ownership interest | 50.00% | 50.00% |
GBW Railcar Services Holdings, LLC | Watco Companies LLC | ||
Segment Reporting Information [Line Items] | ||
Equity method investment, percentage of ownership interest | 50.00% |
Segments Internal Financial Rep
Segments Internal Financial Reports (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | $ 765,465 | $ 714,606 | $ 630,149 | $ 495,058 | $ 618,106 | $ 593,285 | $ 502,216 | $ 490,355 | $ 2,605,278 | [1] | $ 2,203,962 | [1] | $ 1,756,418 | [1] |
Earnings (loss) from operations | 135,527 | 104,411 | 92,532 | 54,422 | 99,158 | 67,538 | 34,602 | 38,222 | 386,892 | 239,520 | 41,651 | |||
Assets | 1,790,512 | 1,517,168 | 1,790,512 | 1,517,168 | 1,289,741 | |||||||||
Depreciation and amortization | 45,156 | 40,422 | 41,447 | |||||||||||
Capital expenditures | 105,989 | 70,227 | 60,827 | |||||||||||
Manufacturing | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 657,485 | 593,376 | 505,241 | 379,949 | 492,105 | 425,583 | 347,755 | 359,473 | 2,136,051 | 1,624,916 | 1,215,734 | |||
Wheels & Parts | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 84,566 | 97,407 | 102,640 | 86,624 | 105,023 | 140,663 | 136,540 | 113,401 | 371,237 | 495,627 | 469,222 | |||
Leasing & Services | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 23,414 | $ 23,823 | $ 22,268 | $ 28,485 | 20,978 | $ 27,039 | $ 17,921 | $ 17,481 | 97,990 | 83,419 | 71,462 | |||
External Customers | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 2,605,278 | 2,203,962 | 1,756,418 | |||||||||||
Earnings (loss) from operations | 386,892 | 239,520 | 41,651 | |||||||||||
Operating Segments | Manufacturing | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 2,143,585 | 1,625,706 | 1,222,978 | |||||||||||
Earnings (loss) from operations | 397,716 | 202,616 | 88,792 | |||||||||||
Assets | 675,409 | 521,711 | 675,409 | 521,711 | 401,630 | |||||||||
Depreciation and amortization | 20,668 | 15,341 | 13,469 | |||||||||||
Capital expenditures | 84,354 | 55,979 | 37,017 | |||||||||||
Operating Segments | Wheels & Parts | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 398,494 | 507,460 | 484,180 | |||||||||||
Earnings (loss) from operations | 30,192 | 41,039 | (61,257) | |||||||||||
Assets | 291,798 | 298,009 | 291,798 | 298,009 | 318,483 | |||||||||
Depreciation and amortization | 11,748 | 12,582 | 12,843 | |||||||||||
Capital expenditures | 9,381 | 8,774 | 7,492 | |||||||||||
Operating Segments | Leasing & Services | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 160,590 | 109,392 | 90,202 | |||||||||||
Earnings (loss) from operations | 104,487 | 67,028 | 61,148 | |||||||||||
Assets | 549,073 | 436,075 | 549,073 | 436,075 | 463,381 | |||||||||
Depreciation and amortization | 12,740 | 12,499 | 15,135 | |||||||||||
Capital expenditures | 12,254 | 5,474 | 16,318 | |||||||||||
Operating Segments | Unallocated Amount to Segment | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Assets | $ 274,232 | $ 261,373 | 274,232 | 261,373 | 106,247 | |||||||||
Operating Segments | External Customers | Manufacturing | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 2,136,051 | 1,624,916 | 1,215,734 | |||||||||||
Earnings (loss) from operations | 396,921 | 202,555 | 88,822 | |||||||||||
Operating Segments | External Customers | Wheels & Parts | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 371,237 | 495,627 | 469,222 | |||||||||||
Earnings (loss) from operations | 27,563 | 40,597 | (60,966) | |||||||||||
Operating Segments | External Customers | Leasing & Services | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 97,990 | 83,419 | 71,462 | |||||||||||
Earnings (loss) from operations | 41,887 | 41,055 | 42,411 | |||||||||||
Operating Segments | Inter Segment | Manufacturing | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 7,534 | 790 | 7,244 | |||||||||||
Earnings (loss) from operations | 795 | 61 | (30) | |||||||||||
Operating Segments | Inter Segment | Wheels & Parts | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 27,257 | 11,833 | 14,958 | |||||||||||
Earnings (loss) from operations | 2,629 | 442 | (291) | |||||||||||
Operating Segments | Inter Segment | Leasing & Services | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 62,600 | 25,973 | 18,740 | |||||||||||
Earnings (loss) from operations | 62,600 | 25,973 | 18,737 | |||||||||||
Intersegment Eliminations | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | (97,391) | (38,596) | (40,942) | |||||||||||
Earnings (loss) from operations | (66,024) | (26,476) | (18,416) | |||||||||||
Intersegment Eliminations | Inter Segment | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | (97,391) | (38,596) | (40,942) | |||||||||||
Earnings (loss) from operations | (66,024) | (26,476) | (18,416) | |||||||||||
Corporate, Non-Segment | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Earnings (loss) from operations | (79,479) | (44,687) | (28,616) | |||||||||||
Corporate, Non-Segment | External Customers | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Earnings (loss) from operations | $ (79,479) | $ (44,687) | $ (28,616) | |||||||||||
[1] | Revenue is presented on the basis of geographic location of customers. |
Summary of Geographic Informati
Summary of Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Revenue | $ 765,465 | $ 714,606 | $ 630,149 | $ 495,058 | $ 618,106 | $ 593,285 | $ 502,216 | $ 490,355 | $ 2,605,278 | [1] | $ 2,203,962 | [1] | $ 1,756,418 | [1] | |
Assets | 1,790,512 | 1,517,168 | 1,790,512 | 1,517,168 | 1,289,741 | ||||||||||
UNITED STATES | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Revenue | [1] | 2,404,266 | 1,998,579 | 1,544,775 | |||||||||||
Assets | 1,184,811 | 1,115,473 | 1,184,811 | 1,115,473 | 865,294 | ||||||||||
Foreign | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Revenue | [1] | 201,012 | 205,383 | 211,643 | |||||||||||
CANADA | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Assets | 756 | ||||||||||||||
Mexico | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Assets | 524,724 | 321,391 | 524,724 | 321,391 | 348,144 | ||||||||||
Europe | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Assets | $ 80,977 | $ 80,304 | $ 80,977 | $ 80,304 | $ 75,547 | ||||||||||
[1] | Revenue is presented on the basis of geographic location of customers. |
Reconciliation of Segment Margi
Reconciliation of Segment Margin to Earnings Before Income Tax and Earnings (Loss) from Unconsolidated Affiliates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||||||||
Earnings from operations | $ 135,527 | $ 104,411 | $ 92,532 | $ 54,422 | $ 99,158 | $ 67,538 | $ 34,602 | $ 38,222 | $ 386,892 | $ 239,520 | $ 41,651 |
Interest and foreign exchange | 1,824 | 4,285 | 1,929 | 3,141 | 4,415 | 5,437 | 4,099 | 4,744 | 11,179 | 18,695 | 22,158 |
Earnings before income tax and earnings from unconsolidated affiliates | $ 133,703 | $ 100,126 | $ 90,603 | $ 51,281 | $ 94,743 | $ 62,101 | $ 30,503 | $ 33,478 | $ 375,713 | $ 220,825 | $ 19,493 |
Results of Operations for GBW J
Results of Operations for GBW Joint Venture (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Aug. 31, 2014 | Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | $ 765,465 | $ 714,606 | $ 630,149 | $ 495,058 | $ 618,106 | $ 593,285 | $ 502,216 | $ 490,355 | $ 2,605,278 | [1] | $ 2,203,962 | [1] | $ 1,756,418 | [1] | ||
Earnings (loss) from operations | 135,527 | $ 104,411 | $ 92,532 | $ 54,422 | 99,158 | $ 67,538 | $ 34,602 | $ 38,222 | 386,892 | 239,520 | 41,651 | |||||
Assets | $ 1,517,168 | 1,790,512 | 1,517,168 | 1,790,512 | 1,517,168 | 1,289,741 | ||||||||||
Capital expenditures | 105,989 | 70,227 | $ 60,827 | |||||||||||||
GBW Railcar Services Holdings, LLC | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 38,549 | 349,849 | ||||||||||||||
Earnings (loss) from operations | 702 | (1,160) | ||||||||||||||
Assets | [2] | 210,631 | $ 239,871 | $ 210,631 | 239,871 | $ 210,631 | ||||||||||
Depreciation and amortization | 470 | 4,590 | ||||||||||||||
Capital expenditures | $ 1,255 | $ 26,396 | ||||||||||||||
[1] | Revenue is presented on the basis of geographic location of customers. | |||||||||||||||
[2] | Includes goodwill and intangible assets of $96.9 million and $100.2 million as of August 31, 2015 and 2014. |
Results of Operations for GB102
Results of Operations for GBW Joint Venture (Parenthetical) (Detail) - USD ($) $ in Millions | Aug. 31, 2015 | Aug. 31, 2014 |
GBW Railcar Services Holdings, LLC | ||
Segment Reporting Information [Line Items] | ||
Goodwill and intangible assets | $ 96.9 | $ 100.2 |
Customer Concentration - Additi
Customer Concentration - Additional Information (Detail) | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Customer Concentration Risk | Sales Revenue, Net | Customer One Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 17.00% | 24.00% | 17.00% |
Customer Concentration Risk | Sales Revenue, Net | Customer Two Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 17.00% | 10.00% | |
Credit Concentration Risk | Accounts Receivable | Customer One Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 28.00% | 19.00% | |
Credit Concentration Risk | Accounts Receivable | Customer Two Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | 12.00% |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Railcar Equipment | |||
Leases Disclosure [Line Items] | |||
Lease expense | $ 6.3 | $ 6.8 | $ 6.7 |
Domestic railcar repair facilities, office space and certain manufacturing and office equipment | |||
Leases Disclosure [Line Items] | |||
Lease expense | $ 9.3 | $ 12.3 | $ 13.1 |
Aggregate Minimum Future Amo105
Aggregate Minimum Future Amounts Payable under Non-Cancelable Railcar Equipment Leases (Detail) - Railcar Equipment $ in Thousands | Aug. 31, 2015USD ($) |
Operating Leased Assets [Line Items] | |
2,016 | $ 2,464 |
2,017 | 1,563 |
2,018 | 1,046 |
2,019 | 0 |
2,020 | 0 |
Thereafter | 0 |
Operating Leases, Future Minimum Payments Due | $ 5,073 |
Aggregate Minimum Future Amo106
Aggregate Minimum Future Amounts Payable Under Non-Cancelable Operating Leases (Detail) - Domestic railcar repair facilities, office space and certain manufacturing and office equipment $ in Thousands | Aug. 31, 2015USD ($) |
Operating Leased Assets [Line Items] | |
2,016 | $ 3,798 |
2,017 | 2,956 |
2,018 | 2,432 |
2,019 | 2,163 |
2,020 | 1,997 |
Thereafter | 1,556 |
Operating Leases, Future Minimum Payments Due, Total | $ 14,902 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | 168 Months Ended | ||
Aug. 31, 2015 | Aug. 31, 2015 | Aug. 31, 2014 | Dec. 31, 2014 | Jul. 18, 2014 | |
Commitments and Contingencies Disclosure [Line Items] | |||||
Remedial investigation and feasibility study | $ 110,000,000 | ||||
Remedial investigation and feasibility study, expiration year | 2,017 | ||||
Bank and third party warranty and performance guarantee facilities | $ 3,700,000 | $ 3,700,000 | |||
GBW Railcar Services Holdings, LLC | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Equity method investment, percentage of ownership interest | 50.00% | 50.00% | 50.00% | ||
Payment to acquire equity method investments | $ 3,800,000 | $ 12,500,000 | |||
Expected loan to unconsolidated joint venture | $ 5,000,000 | 5,000,000 | |||
Account receivable | 21,000,000 | 21,000,000 | |||
Note receivable | 31,500,000 | 31,500,000 | |||
Proceeds from lease receivables | 4,900,000 | ||||
Quarterly distributions received | 1,300,000 | ||||
GBW Railcar Services Holdings, LLC | Watco Companies LLC | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Equity method investment, percentage of ownership interest | 50.00% | ||||
Performance Guarantee | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Outstanding letters of credit | 47,200,000 | 47,200,000 | |||
Mexican Joint Venture Credit Facility | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Debt outstanding | 3,000,000 | 3,000,000 | |||
Guarantee obligations | $ 1,500,000 | $ 1,500,000 | |||
Minimum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Period for remedial action | 4 years | 2 years | |||
Cleanup expenses | $ 790,000,000 | ||||
Maximum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Period for remedial action | 18 years | 28 years | |||
Cleanup expenses | $ 2,400,000,000 | ||||
Portland Harbor Site | Minimum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Cleanup expenses | $ 169,000,000 | ||||
Portland Harbor Site | Maximum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Cleanup expenses | 1,800,000,000 | ||||
Area Of Willamette River Adjacent to the Company's Portland, Oregon Manufacturing Facility | Minimum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Cleanup expenses | 9,000,000 | ||||
Area Of Willamette River Adjacent to the Company's Portland, Oregon Manufacturing Facility | Maximum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Cleanup expenses | $ 163,000,000 |
Fair Value of Financial Inst108
Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | $ 326,429 | $ 445,091 |
Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | $ 345,350 | $ 654,458 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 | |
Assets: | |||
Nonqualified savings plan investments | $ 11,815 | $ 10,223 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | 1,913 | 200 | |
Nonqualified savings plan investments | 11,815 | 10,223 | |
Cash equivalents | 5,071 | 35,036 | |
Assets, Fair Value Disclosure, Total | 18,799 | 45,459 | |
Liabilities: | |||
Derivative financial instruments | 3,206 | 1,995 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Nonqualified savings plan investments | 11,815 | 10,223 | |
Cash equivalents | 5,071 | 35,036 | |
Assets, Fair Value Disclosure, Total | 16,886 | 45,259 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | [1] | 1,913 | 200 |
Assets, Fair Value Disclosure, Total | [1] | 1,913 | 200 |
Liabilities: | |||
Derivative financial instruments | [1] | $ 3,206 | $ 1,995 |
[1] | Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 14 Derivative Instruments for further discussion. |
Assets or Liabilities Measured
Assets or Liabilities Measured at Fair Value on Nonrecurring Basis (Detail) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 |
Assets: | ||
Goodwill | $ 43,265 | $ 43,265 |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Goodwill | $ 43,265 | $ 43,265 |
Guarantor_Non Guarantor - Addit
Guarantor/Non Guarantor - Additional Information (Detail) | 12 Months Ended |
Aug. 31, 2015 | |
Guarantor Obligations [Line Items] | |
Percentage of ownership in subsidiaries | 100.00% |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2012 |
Assets | ||||
Cash and cash equivalents | $ 172,930 | $ 184,916 | $ 97,435 | $ 53,571 |
Restricted cash | 8,869 | 20,140 | ||
Accounts receivable, net | 196,029 | 199,679 | ||
Inventories | 445,535 | 305,656 | ||
Leased railcars for syndication | 212,534 | 125,850 | ||
Equipment on operating leases, net | 255,391 | 258,848 | ||
Property, plant and equipment, net | 303,135 | 243,698 | ||
Investment in unconsolidated affiliates | 87,270 | 69,359 | ||
Intangibles and other assets, net | 65,554 | 65,757 | ||
Goodwill | 43,265 | 43,265 | ||
Total assets | 1,790,512 | 1,517,168 | 1,289,741 | |
Liabilities and Equity | ||||
Revolving notes | 50,888 | 13,081 | ||
Accounts payable and accrued liabilities | 455,213 | 383,289 | ||
Deferred income taxes | 60,657 | 81,383 | ||
Deferred revenue | 33,836 | 20,603 | ||
Notes payable | 326,429 | 445,091 | ||
Total equity - Greenbrier | 732,838 | 511,390 | ||
Noncontrolling interest | 130,651 | 62,331 | ||
Total equity | 863,489 | 573,721 | 456,827 | 453,645 |
Liabilities and Equity | 1,790,512 | 1,517,168 | ||
Parent | ||||
Assets | ||||
Cash and cash equivalents | 53,535 | 149,747 | 63,173 | 34,323 |
Accounts receivable, net | 49,471 | 626 | ||
Property, plant and equipment, net | 8,402 | 6,220 | ||
Investment in unconsolidated affiliates | 1,209,698 | 910,732 | ||
Intangibles and other assets, net | 15,895 | 17,031 | ||
Total assets | 1,337,001 | 1,084,356 | ||
Liabilities and Equity | ||||
Revolving notes | 49,000 | |||
Accounts payable and accrued liabilities | 421,249 | 315,879 | ||
Deferred income taxes | 12,109 | |||
Deferred revenue | 122 | |||
Notes payable | 133,914 | 244,856 | ||
Total equity - Greenbrier | 732,838 | 511,390 | ||
Total equity | 732,838 | 511,390 | ||
Liabilities and Equity | 1,337,001 | 1,084,356 | ||
Combined Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 119 | 112 | 25 | 294 |
Restricted cash | 1,966 | 13,238 | ||
Accounts receivable, net | 535,916 | 474,409 | ||
Inventories | 191,625 | 113,117 | ||
Leased railcars for syndication | 228,646 | 128,965 | ||
Equipment on operating leases, net | 255,130 | 257,415 | ||
Property, plant and equipment, net | 102,738 | 102,972 | ||
Investment in unconsolidated affiliates | 169,659 | 143,768 | ||
Intangibles and other assets, net | 46,387 | 45,013 | ||
Goodwill | 43,265 | 43,265 | ||
Total assets | 1,575,451 | 1,322,274 | ||
Liabilities and Equity | ||||
Accounts payable and accrued liabilities | 282,662 | 221,863 | ||
Deferred income taxes | 72,326 | 80,489 | ||
Deferred revenue | 33,792 | 19,950 | ||
Notes payable | 191,422 | 198,705 | ||
Total equity - Greenbrier | 995,249 | 801,267 | ||
Total equity | 995,249 | 801,267 | ||
Liabilities and Equity | 1,575,451 | 1,322,274 | ||
Combined Non-Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 119,276 | 35,057 | $ 34,237 | $ 18,954 |
Restricted cash | 6,903 | 6,902 | ||
Accounts receivable, net | 24,415 | 62,421 | ||
Inventories | 257,619 | 192,634 | ||
Equipment on operating leases, net | 2,901 | 3,613 | ||
Property, plant and equipment, net | 191,995 | 134,506 | ||
Investment in unconsolidated affiliates | 21,369 | 3,961 | ||
Intangibles and other assets, net | 14,235 | 14,221 | ||
Total assets | 638,713 | 453,315 | ||
Liabilities and Equity | ||||
Revolving notes | 1,888 | 13,081 | ||
Accounts payable and accrued liabilities | 208,538 | 185,335 | ||
Deferred revenue | 487 | |||
Notes payable | 1,093 | 1,530 | ||
Total equity - Greenbrier | 296,852 | 190,861 | ||
Noncontrolling interest | 130,342 | 62,021 | ||
Total equity | 427,194 | 252,882 | ||
Liabilities and Equity | 638,713 | 453,315 | ||
Eliminations | ||||
Assets | ||||
Accounts receivable, net | (413,773) | (337,777) | ||
Inventories | (3,709) | (95) | ||
Leased railcars for syndication | (16,112) | (3,115) | ||
Equipment on operating leases, net | (2,640) | (2,180) | ||
Investment in unconsolidated affiliates | (1,313,456) | (989,102) | ||
Intangibles and other assets, net | (10,963) | (10,508) | ||
Total assets | (1,760,653) | (1,342,777) | ||
Liabilities and Equity | ||||
Accounts payable and accrued liabilities | (457,236) | (339,788) | ||
Deferred income taxes | (11,669) | (11,215) | ||
Deferred revenue | 44 | 44 | ||
Total equity - Greenbrier | (1,292,101) | (992,128) | ||
Noncontrolling interest | 309 | 310 | ||
Total equity | (1,291,792) | (991,818) | ||
Liabilities and Equity | $ (1,760,653) | $ (1,342,777) |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | ||||
Revenue | ||||||||||||||
Revenue | $ 765,465 | $ 714,606 | $ 630,149 | $ 495,058 | $ 618,106 | $ 593,285 | $ 502,216 | $ 490,355 | $ 2,605,278 | [1] | $ 2,203,962 | [1] | $ 1,756,418 | [1] |
Cost of revenue | ||||||||||||||
Cost of revenue | 590,776 | 565,320 | 504,839 | 406,990 | 512,071 | 496,510 | 444,365 | 428,796 | 2,067,925 | 1,881,742 | 1,550,045 | |||
Margin | 174,689 | 149,286 | 125,310 | 88,068 | 106,035 | 96,775 | 57,851 | 61,559 | 537,353 | 322,220 | 206,373 | |||
Selling and administrative | 39,568 | 45,595 | 32,899 | 33,729 | 36,236 | 34,800 | 28,125 | 26,109 | 151,791 | 125,270 | 103,175 | |||
Net gain on disposition of equipment | (406) | (720) | (121) | (83) | (353) | (5,619) | (5,416) | (3,651) | (1,330) | (15,039) | (18,072) | |||
Gain on contribution to joint venture | (29,006) | (29,006) | ||||||||||||
Goodwill impairment | 76,900 | |||||||||||||
Restructuring charges | 56 | 540 | 879 | 1,475 | 2,719 | |||||||||
Earnings (loss) from operations | 135,527 | 104,411 | 92,532 | 54,422 | 99,158 | 67,538 | 34,602 | 38,222 | 386,892 | 239,520 | 41,651 | |||
Other costs | ||||||||||||||
Interest and foreign exchange | 1,824 | 4,285 | 1,929 | 3,141 | 4,415 | 5,437 | 4,099 | 4,744 | 11,179 | 18,695 | 22,158 | |||
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates | 133,703 | 100,126 | 90,603 | 51,281 | 94,743 | 62,101 | 30,503 | 33,478 | 375,713 | 220,825 | 19,493 | |||
Income tax (expense) benefit | (35,951) | (30,783) | (29,372) | (16,054) | (35,693) | (16,303) | (9,883) | (10,522) | (112,160) | (72,401) | (25,060) | |||
Earnings (loss) before earnings (loss) from unconsolidated affiliates | 263,553 | 148,424 | (5,567) | |||||||||||
Earnings (loss) from unconsolidated affiliates | 204 | 982 | (185) | 755 | 1,083 | 298 | (67) | 41 | 1,756 | 1,355 | 186 | |||
Net earnings (loss) | 97,956 | 70,325 | 61,046 | 35,982 | 60,133 | 46,096 | 20,553 | 22,997 | 265,309 | 149,779 | (5,381) | |||
Net (earnings) loss attributable to noncontrolling interest | (31,072) | (27,514) | (10,695) | (3,196) | (12,777) | (12,508) | (4,966) | (7,609) | (72,477) | (37,860) | (5,667) | |||
Net earnings (loss) attributable to Greenbrier | 66,884 | 42,811 | 50,351 | 32,786 | 47,356 | 33,588 | 15,587 | 15,388 | 192,832 | 111,919 | (11,048) | |||
Manufacturing | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 657,485 | 593,376 | 505,241 | 379,949 | 492,105 | 425,583 | 347,755 | 359,473 | 2,136,051 | 1,624,916 | 1,215,734 | |||
Cost of revenue | ||||||||||||||
Cost of revenue | 506,492 | 465,658 | 403,227 | 316,037 | 404,167 | 351,829 | 306,572 | 311,440 | 1,691,414 | 1,374,008 | 1,082,889 | |||
Leasing & Services | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 23,414 | 23,823 | 22,268 | 28,485 | 20,978 | 27,039 | 17,921 | 17,481 | 97,990 | 83,419 | 71,462 | |||
Cost of revenue | ||||||||||||||
Cost of revenue | 8,889 | 10,017 | 8,844 | 14,081 | 9,706 | 14,856 | 9,853 | 9,381 | 41,831 | 43,796 | 35,655 | |||
Wheels & Parts | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 84,566 | 97,407 | 102,640 | 86,624 | 105,023 | 140,663 | 136,540 | 113,401 | 371,237 | 495,627 | 469,222 | |||
Cost of revenue | ||||||||||||||
Cost of revenue | $ 75,395 | $ 89,645 | $ 92,768 | $ 76,872 | $ 98,198 | $ 129,825 | $ 127,940 | $ 107,975 | 334,680 | 463,938 | 431,501 | |||
Goodwill impairment | 76,900 | |||||||||||||
Parent | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 924 | 1,256 | 806 | |||||||||||
Cost of revenue | ||||||||||||||
Margin | 924 | 1,256 | 806 | |||||||||||
Selling and administrative | 72,686 | 45,621 | 38,636 | |||||||||||
Earnings (loss) from operations | (71,762) | (44,365) | (37,830) | |||||||||||
Other costs | ||||||||||||||
Interest and foreign exchange | 11,786 | 11,654 | 15,358 | |||||||||||
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates | (83,548) | (56,019) | (53,188) | |||||||||||
Income tax (expense) benefit | (4,697) | 7,563 | 21,367 | |||||||||||
Earnings (loss) before earnings (loss) from unconsolidated affiliates | (88,245) | (48,456) | (31,821) | |||||||||||
Earnings (loss) from unconsolidated affiliates | 281,077 | 160,375 | 20,773 | |||||||||||
Net earnings (loss) | 192,832 | 111,919 | (11,048) | |||||||||||
Net earnings (loss) attributable to Greenbrier | 192,832 | 111,919 | (11,048) | |||||||||||
Parent | Manufacturing | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 1,641 | |||||||||||||
Parent | Leasing & Services | ||||||||||||||
Revenue | ||||||||||||||
Revenue | (717) | 1,256 | 806 | |||||||||||
Combined Guarantor Subsidiaries | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 1,674,198 | 1,471,008 | 1,217,692 | |||||||||||
Cost of revenue | ||||||||||||||
Cost of revenue | 1,376,915 | 1,306,666 | 1,089,470 | |||||||||||
Margin | 297,283 | 164,342 | 128,222 | |||||||||||
Selling and administrative | 37,379 | 41,001 | 30,937 | |||||||||||
Net gain on disposition of equipment | (1,043) | (13,905) | (16,238) | |||||||||||
Gain on contribution to joint venture | (29,006) | |||||||||||||
Goodwill impairment | 76,900 | |||||||||||||
Restructuring charges | 1,475 | 2,719 | ||||||||||||
Earnings (loss) from operations | 260,947 | 164,777 | 33,904 | |||||||||||
Other costs | ||||||||||||||
Interest and foreign exchange | 6,826 | 4,774 | 3,901 | |||||||||||
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates | 254,121 | 160,003 | 30,003 | |||||||||||
Income tax (expense) benefit | (86,757) | (55,382) | (36,202) | |||||||||||
Earnings (loss) before earnings (loss) from unconsolidated affiliates | 167,364 | 104,621 | (6,199) | |||||||||||
Earnings (loss) from unconsolidated affiliates | 27,013 | 18,739 | 11,532 | |||||||||||
Net earnings (loss) | 194,377 | 123,360 | 5,333 | |||||||||||
Net earnings (loss) attributable to Greenbrier | 194,377 | 123,360 | 5,333 | |||||||||||
Combined Guarantor Subsidiaries | Manufacturing | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 1,199,771 | 887,252 | 666,171 | |||||||||||
Cost of revenue | ||||||||||||||
Cost of revenue | 995,332 | 792,267 | 610,379 | |||||||||||
Combined Guarantor Subsidiaries | Leasing & Services | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 98,292 | 81,546 | 70,672 | |||||||||||
Cost of revenue | ||||||||||||||
Cost of revenue | 41,926 | 43,878 | 35,754 | |||||||||||
Combined Guarantor Subsidiaries | Wheels & Parts | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 376,135 | 502,210 | 480,849 | |||||||||||
Cost of revenue | ||||||||||||||
Cost of revenue | 339,657 | 470,521 | 443,337 | |||||||||||
Combined Non-Guarantor Subsidiaries | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 1,810,002 | 1,419,145 | 1,001,018 | |||||||||||
Cost of revenue | ||||||||||||||
Cost of revenue | 1,535,309 | 1,257,953 | 928,461 | |||||||||||
Margin | 274,693 | 161,192 | 72,557 | |||||||||||
Selling and administrative | 42,624 | 38,063 | 33,602 | |||||||||||
Net gain on disposition of equipment | (283) | (820) | (1,276) | |||||||||||
Earnings (loss) from operations | 232,352 | 123,949 | 40,231 | |||||||||||
Other costs | ||||||||||||||
Interest and foreign exchange | (7,433) | 2,267 | 3,100 | |||||||||||
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates | 239,785 | 121,682 | 37,131 | |||||||||||
Income tax (expense) benefit | (31,299) | (26,170) | (9,067) | |||||||||||
Earnings (loss) before earnings (loss) from unconsolidated affiliates | 208,486 | 95,512 | 28,064 | |||||||||||
Earnings (loss) from unconsolidated affiliates | 59 | 166 | 45 | |||||||||||
Net earnings (loss) | 208,545 | 95,678 | 28,109 | |||||||||||
Net (earnings) loss attributable to noncontrolling interest | (89,692) | (40,634) | (3,946) | |||||||||||
Net earnings (loss) attributable to Greenbrier | 118,853 | 55,044 | 24,163 | |||||||||||
Combined Non-Guarantor Subsidiaries | Manufacturing | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 1,810,001 | 1,419,143 | 1,001,017 | |||||||||||
Cost of revenue | ||||||||||||||
Cost of revenue | 1,535,309 | 1,257,953 | 928,461 | |||||||||||
Combined Non-Guarantor Subsidiaries | Leasing & Services | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 1 | 2 | 1 | |||||||||||
Eliminations | ||||||||||||||
Revenue | ||||||||||||||
Revenue | (879,846) | (687,447) | (463,098) | |||||||||||
Cost of revenue | ||||||||||||||
Cost of revenue | (844,299) | (682,877) | (467,886) | |||||||||||
Margin | (35,547) | (4,570) | 4,788 | |||||||||||
Selling and administrative | (898) | 585 | ||||||||||||
Net gain on disposition of equipment | (4) | (314) | (558) | |||||||||||
Earnings (loss) from operations | (34,645) | (4,841) | 5,346 | |||||||||||
Other costs | ||||||||||||||
Interest and foreign exchange | (201) | |||||||||||||
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates | (34,645) | (4,841) | 5,547 | |||||||||||
Income tax (expense) benefit | 10,593 | 1,588 | (1,158) | |||||||||||
Earnings (loss) before earnings (loss) from unconsolidated affiliates | (24,052) | (3,253) | 4,389 | |||||||||||
Earnings (loss) from unconsolidated affiliates | (306,393) | (177,925) | (32,164) | |||||||||||
Net earnings (loss) | (330,445) | (181,178) | (27,775) | |||||||||||
Net (earnings) loss attributable to noncontrolling interest | 17,215 | 2,774 | (1,721) | |||||||||||
Net earnings (loss) attributable to Greenbrier | (313,230) | (178,404) | (29,496) | |||||||||||
Eliminations | Manufacturing | ||||||||||||||
Revenue | ||||||||||||||
Revenue | (875,362) | (681,479) | (451,454) | |||||||||||
Cost of revenue | ||||||||||||||
Cost of revenue | (839,227) | (676,212) | (455,951) | |||||||||||
Eliminations | Leasing & Services | ||||||||||||||
Revenue | ||||||||||||||
Revenue | 414 | 615 | (17) | |||||||||||
Cost of revenue | ||||||||||||||
Cost of revenue | (95) | (82) | (99) | |||||||||||
Eliminations | Wheels & Parts | ||||||||||||||
Revenue | ||||||||||||||
Revenue | (4,898) | (6,583) | (11,627) | |||||||||||
Cost of revenue | ||||||||||||||
Cost of revenue | $ (4,977) | $ (6,583) | $ (11,836) | |||||||||||
[1] | Revenue is presented on the basis of geographic location of customers. |
Consolidating Statement of Comp
Consolidating Statement of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | ||
Condensed Statement of Income Captions [Line Items] | ||||||||||||
Net earnings (loss) | $ 97,956 | $ 70,325 | $ 61,046 | $ 35,982 | $ 60,133 | $ 46,096 | $ 20,553 | $ 22,997 | $ 265,309 | $ 149,779 | $ (5,381) | |
Other comprehensive income (loss) | ||||||||||||
Translation adjustment | (14,009) | 116 | 1,056 | |||||||||
Reclassification of derivative financial instruments recognized in net earnings (loss) | [1] | 737 | 471 | (561) | ||||||||
Unrealized gain (loss) on derivative financial instruments | [2] | (1,330) | (1,019) | (399) | ||||||||
Other (net of tax effect) | 173 | 10 | (203) | |||||||||
Other comprehensive income (loss) | (14,429) | (422) | (107) | |||||||||
Comprehensive income (loss) | 250,880 | 149,357 | (5,488) | |||||||||
Comprehensive (income) loss attributable to noncontrolling interest | (72,321) | (37,866) | (5,695) | |||||||||
Comprehensive income (loss) attributable to Greenbrier | 178,559 | 111,491 | (11,183) | |||||||||
Parent | ||||||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||||||
Net earnings (loss) | 192,832 | 111,919 | (11,048) | |||||||||
Other comprehensive income (loss) | ||||||||||||
Translation adjustment | (1,527) | |||||||||||
Unrealized gain (loss) on derivative financial instruments | 6 | |||||||||||
Other comprehensive income (loss) | (1,521) | |||||||||||
Comprehensive income (loss) | 191,311 | 111,919 | (11,048) | |||||||||
Comprehensive income (loss) attributable to Greenbrier | 191,311 | 111,919 | (11,048) | |||||||||
Combined Guarantor Subsidiaries | ||||||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||||||
Net earnings (loss) | 194,377 | 123,360 | 5,333 | |||||||||
Other comprehensive income (loss) | ||||||||||||
Translation adjustment | (34) | |||||||||||
Reclassification of derivative financial instruments recognized in net earnings (loss) | 1,107 | 1,071 | 1,197 | |||||||||
Unrealized gain (loss) on derivative financial instruments | (1,825) | (1,105) | (202) | |||||||||
Other comprehensive income (loss) | (718) | (34) | 961 | |||||||||
Comprehensive income (loss) | 193,659 | 123,326 | 6,294 | |||||||||
Comprehensive income (loss) attributable to Greenbrier | 193,659 | 123,326 | 6,294 | |||||||||
Combined Non-Guarantor Subsidiaries | ||||||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||||||
Net earnings (loss) | 208,545 | 95,678 | 28,109 | |||||||||
Other comprehensive income (loss) | ||||||||||||
Translation adjustment | (12,482) | 116 | 1,090 | |||||||||
Reclassification of derivative financial instruments recognized in net earnings (loss) | (370) | (600) | (1,758) | |||||||||
Unrealized gain (loss) on derivative financial instruments | 489 | 86 | (197) | |||||||||
Other (net of tax effect) | 173 | 10 | (203) | |||||||||
Other comprehensive income (loss) | (12,190) | (388) | (1,068) | |||||||||
Comprehensive income (loss) | 196,355 | 95,290 | 27,041 | |||||||||
Comprehensive (income) loss attributable to noncontrolling interest | (89,536) | (40,640) | (3,974) | |||||||||
Comprehensive income (loss) attributable to Greenbrier | 106,819 | 54,650 | 23,067 | |||||||||
Eliminations | ||||||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||||||
Net earnings (loss) | (330,445) | (181,178) | (27,775) | |||||||||
Other comprehensive income (loss) | ||||||||||||
Comprehensive income (loss) | (330,445) | (181,178) | (27,775) | |||||||||
Comprehensive (income) loss attributable to noncontrolling interest | 17,215 | 2,774 | (1,721) | |||||||||
Comprehensive income (loss) attributable to Greenbrier | $ (313,230) | $ (178,404) | $ (29,496) | |||||||||
[1] | Net of tax of effect of $0.6 million, $0.5 million and $0.3 million for the years ended August 31, 2015, 2014 and 2013. | |||||||||||
[2] | Net of tax of effect of $1.0 million, $0.7 million and $0.2 million for the years ended August 31, 2015, 2014 and 2013. |
Condensed Consolidating Stat115
Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Cash flows from operating activities: | |||||||||||
Net earnings (loss) | $ 97,956 | $ 70,325 | $ 61,046 | $ 35,982 | $ 60,133 | $ 46,096 | $ 20,553 | $ 22,997 | $ 265,309 | $ 149,779 | $ (5,381) |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | |||||||||||
Deferred income taxes | (20,151) | (4,687) | (9,662) | ||||||||
Depreciation and amortization | 45,156 | 40,422 | 41,447 | ||||||||
Net gain on disposition of equipment | (406) | $ (720) | $ (121) | (83) | (353) | $ (5,619) | $ (5,416) | (3,651) | (1,330) | (15,039) | (18,072) |
Accretion of debt discount | 2,455 | ||||||||||
Stock based compensation expense | 19,459 | 11,285 | 6,302 | ||||||||
Gain on contribution to joint venture | (29,006) | (29,006) | |||||||||
Goodwill impairment | 76,900 | ||||||||||
Noncontrolling interest adjustments | 17,215 | 2,774 | (2,144) | ||||||||
Other | 1,184 | 576 | 1,089 | ||||||||
Decrease (increase) in assets: | |||||||||||
Accounts receivable, net | 13,652 | (23,749) | (7,323) | ||||||||
Inventories | (143,849) | (9,675) | 19,045 | ||||||||
Leased railcars for syndication | (90,614) | (57,779) | 22,881 | ||||||||
Other | 575 | (4,069) | 969 | ||||||||
Increase (decrease) in liabilities: | |||||||||||
Accounts payable and accrued liabilities | 72,419 | 63,362 | (15,429) | ||||||||
Deferred revenue | 13,308 | 11,713 | (8,485) | ||||||||
Net cash provided by (used in) operating activities | 192,333 | 135,907 | 104,592 | ||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sales of assets | 5,295 | 54,235 | 75,338 | ||||||||
Capital expenditures | (105,989) | (70,227) | (60,827) | ||||||||
Decrease (increase) in restricted cash | 271 | (333) | (2,530) | ||||||||
Investment in and advances to unconsolidated affiliates | (34,453) | (13,753) | (2,240) | ||||||||
Other | 3,345 | (3,582) | |||||||||
Net cash provided by (used in) investing activities | (131,531) | (30,078) | 6,159 | ||||||||
Cash flows from financing activities: | |||||||||||
Net changes in revolving notes with maturities of 90 days or less | 49,000 | (16,396) | |||||||||
Proceeds from revolving notes with maturities longer than 90 days | 44,451 | 37,819 | 38,177 | ||||||||
Repayment of revolving notes with maturities longer than 90 days | (55,644) | (72,947) | (34,966) | ||||||||
Proceeds from issuance of notes payable | 200,000 | 2,186 | |||||||||
Repayments of notes payable | (7,475) | (128,797) | (58,831) | ||||||||
Debt issuance costs | (382) | ||||||||||
Decrease (increase) in restricted cash | 11,000 | (11,000) | |||||||||
Repurchase of stock | (69,950) | (33,583) | |||||||||
Dividends | (16,491) | (4,123) | |||||||||
Cash distribution to joint venture partner | (20,375) | (5,076) | |||||||||
Investment by joint venture partner | 419 | 3,206 | |||||||||
Excess tax benefit from restricted stock awards | 2,908 | 109 | 900 | ||||||||
Other | (248) | (8) | |||||||||
Net cash provided by (used in) financing activities | (62,824) | (17,561) | (65,732) | ||||||||
Effect of exchange rate changes | (9,964) | (787) | (1,155) | ||||||||
Increase (decrease) in cash and cash equivalents | (11,986) | 87,481 | 43,864 | ||||||||
Beginning of period | 184,916 | 97,435 | 184,916 | 97,435 | 53,571 | ||||||
End of period | 172,930 | 184,916 | 172,930 | 184,916 | 97,435 | ||||||
Parent | |||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings (loss) | 192,832 | 111,919 | (11,048) | ||||||||
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | |||||||||||
Deferred income taxes | (12,694) | 4,016 | (1,005) | ||||||||
Depreciation and amortization | 2,098 | 1,875 | 2,124 | ||||||||
Accretion of debt discount | 2,455 | ||||||||||
Stock based compensation expense | 19,459 | 11,285 | 6,196 | ||||||||
Other | 43 | ||||||||||
Decrease (increase) in assets: | |||||||||||
Accounts receivable, net | (48,847) | 36,996 | 15,704 | ||||||||
Other | 22,478 | (935) | 272 | ||||||||
Increase (decrease) in liabilities: | |||||||||||
Accounts payable and accrued liabilities | 41,138 | (44,631) | (626) | ||||||||
Deferred revenue | (122) | (33) | (154) | ||||||||
Net cash provided by (used in) operating activities | 216,385 | 120,492 | 13,918 | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (4,323) | (4,125) | (515) | ||||||||
Investment in and advances to unconsolidated affiliates | (346,168) | (169,584) | (28,175) | ||||||||
Other | 1,345 | ||||||||||
Net cash provided by (used in) investing activities | (349,146) | (173,709) | (28,690) | ||||||||
Cash flows from financing activities: | |||||||||||
Net changes in revolving notes with maturities of 90 days or less | 49,000 | ||||||||||
Repayments of notes payable | (5) | (52,868) | |||||||||
Intercompany advances | 72,857 | 177,395 | 95,598 | ||||||||
Repurchase of stock | (69,950) | (33,583) | |||||||||
Dividends | (16,491) | (4,123) | |||||||||
Excess tax benefit from restricted stock awards | 2,908 | 109 | 900 | ||||||||
Other | (248) | (8) | |||||||||
Net cash provided by (used in) financing activities | 38,071 | 139,798 | 43,622 | ||||||||
Effect of exchange rate changes | (1,522) | (7) | |||||||||
Increase (decrease) in cash and cash equivalents | (96,212) | 86,574 | 28,850 | ||||||||
Beginning of period | 149,747 | 63,173 | 149,747 | 63,173 | 34,323 | ||||||
End of period | 53,535 | 149,747 | 53,535 | 149,747 | 63,173 | ||||||
Combined Guarantor Subsidiaries | |||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings (loss) | 194,377 | 123,360 | 5,333 | ||||||||
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | |||||||||||
Deferred income taxes | (8,163) | (6,121) | (9,983) | ||||||||
Depreciation and amortization | 26,771 | 27,259 | 29,688 | ||||||||
Net gain on disposition of equipment | (1,043) | (13,905) | (16,238) | ||||||||
Stock based compensation expense | 106 | ||||||||||
Gain on contribution to joint venture | (29,006) | ||||||||||
Goodwill impairment | 76,900 | ||||||||||
Other | 196 | 388 | 1,160 | ||||||||
Decrease (increase) in assets: | |||||||||||
Accounts receivable, net | 24,283 | (11,493) | (360) | ||||||||
Inventories | (78,507) | 16,920 | 4,975 | ||||||||
Leased railcars for syndication | (103,772) | (60,547) | 25,325 | ||||||||
Other | (691) | 53,889 | 416 | ||||||||
Increase (decrease) in liabilities: | |||||||||||
Accounts payable and accrued liabilities | 60,761 | 45,953 | (27,742) | ||||||||
Deferred revenue | 13,842 | 11,355 | (7,505) | ||||||||
Net cash provided by (used in) operating activities | 128,054 | 158,052 | 82,075 | ||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sales of assets | 4,959 | 53,229 | 74,545 | ||||||||
Capital expenditures | (24,836) | (16,636) | (28,586) | ||||||||
Decrease (increase) in restricted cash | 272 | (331) | 139 | ||||||||
Investment in and advances to unconsolidated affiliates | (25,388) | (73,558) | (31,325) | ||||||||
Other | 2,000 | ||||||||||
Net cash provided by (used in) investing activities | (42,993) | (37,296) | 14,773 | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of notes payable | 200,000 | ||||||||||
Repayments of notes payable | (7,033) | (128,157) | (4,090) | ||||||||
Debt issuance costs | (382) | ||||||||||
Decrease (increase) in restricted cash | 11,000 | (11,000) | |||||||||
Intercompany advances | (85,925) | (181,161) | (93,991) | ||||||||
Net cash provided by (used in) financing activities | (81,958) | (120,700) | (98,081) | ||||||||
Effect of exchange rate changes | (3,096) | 31 | 964 | ||||||||
Increase (decrease) in cash and cash equivalents | 7 | 87 | (269) | ||||||||
Beginning of period | 112 | 25 | 112 | 25 | 294 | ||||||
End of period | 119 | 112 | 119 | 112 | 25 | ||||||
Combined Non-Guarantor Subsidiaries | |||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings (loss) | 208,545 | 95,678 | 28,109 | ||||||||
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | |||||||||||
Deferred income taxes | 706 | (2,582) | (611) | ||||||||
Depreciation and amortization | 16,382 | 11,370 | 9,734 | ||||||||
Net gain on disposition of equipment | (283) | (820) | (1,276) | ||||||||
Other | 945 | 189 | (70) | ||||||||
Decrease (increase) in assets: | |||||||||||
Accounts receivable, net | 24,026 | (11,679) | (6,140) | ||||||||
Inventories | (68,956) | (26,595) | 14,280 | ||||||||
Other | (19,430) | (4,424) | 28,400 | ||||||||
Increase (decrease) in liabilities: | |||||||||||
Accounts payable and accrued liabilities | 25,399 | 26,483 | (3,200) | ||||||||
Deferred revenue | (412) | 389 | (836) | ||||||||
Net cash provided by (used in) operating activities | 186,922 | 88,009 | 68,390 | ||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sales of assets | 336 | 1,006 | 793 | ||||||||
Capital expenditures | (77,228) | (49,470) | (32,017) | ||||||||
Decrease (increase) in restricted cash | (1) | (2) | (2,669) | ||||||||
Investment in and advances to unconsolidated affiliates | (1,253) | (2,240) | |||||||||
Other | (3,582) | ||||||||||
Net cash provided by (used in) investing activities | (76,893) | (49,719) | (39,715) | ||||||||
Cash flows from financing activities: | |||||||||||
Net changes in revolving notes with maturities of 90 days or less | (16,396) | ||||||||||
Proceeds from revolving notes with maturities longer than 90 days | 44,451 | 37,819 | 38,177 | ||||||||
Repayment of revolving notes with maturities longer than 90 days | (55,644) | (72,947) | (34,966) | ||||||||
Proceeds from issuance of notes payable | 2,186 | ||||||||||
Repayments of notes payable | (437) | (640) | (1,873) | ||||||||
Intercompany advances | 13,068 | 3,766 | (1,607) | ||||||||
Cash distribution to joint venture partner | (20,375) | (5,076) | |||||||||
Investment by joint venture partner | 419 | 3,206 | |||||||||
Net cash provided by (used in) financing activities | (18,937) | (36,659) | (11,273) | ||||||||
Effect of exchange rate changes | (6,873) | (811) | (2,119) | ||||||||
Increase (decrease) in cash and cash equivalents | 84,219 | 820 | 15,283 | ||||||||
Beginning of period | $ 35,057 | $ 34,237 | 35,057 | 34,237 | 18,954 | ||||||
End of period | $ 119,276 | $ 35,057 | 119,276 | 35,057 | 34,237 | ||||||
Eliminations | |||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings (loss) | (330,445) | (181,178) | (27,775) | ||||||||
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | |||||||||||
Deferred income taxes | 1,937 | ||||||||||
Depreciation and amortization | (95) | (82) | (99) | ||||||||
Net gain on disposition of equipment | (4) | (314) | (558) | ||||||||
Noncontrolling interest adjustments | 17,215 | 2,774 | (2,144) | ||||||||
Other | (1) | (1) | |||||||||
Decrease (increase) in assets: | |||||||||||
Accounts receivable, net | 14,190 | (37,573) | (16,527) | ||||||||
Inventories | 3,614 | (210) | |||||||||
Leased railcars for syndication | 13,158 | 2,768 | (2,444) | ||||||||
Other | (1,782) | (52,599) | (28,119) | ||||||||
Increase (decrease) in liabilities: | |||||||||||
Accounts payable and accrued liabilities | (54,879) | 35,557 | 16,139 | ||||||||
Deferred revenue | 2 | 10 | |||||||||
Net cash provided by (used in) operating activities | (339,028) | (230,646) | (59,791) | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | 398 | 4 | 291 | ||||||||
Investment in and advances to unconsolidated affiliates | 337,103 | 230,642 | 59,500 | ||||||||
Net cash provided by (used in) investing activities | 337,501 | $ 230,646 | $ 59,791 | ||||||||
Cash flows from financing activities: | |||||||||||
Effect of exchange rate changes | $ 1,527 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Oct. 30, 2015USD ($) | Mar. 31, 2014 | Aug. 31, 2015USD ($) | Sep. 30, 2015Vehicle | Apr. 30, 2010USD ($)Vehicle |
LIBOR | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, percentage points added to the reference rate | 1.75% | ||||
WL Ross & Co., LLC (WL Ross) | |||||
Subsequent Event [Line Items] | |||||
Number of railcars owned | Vehicle | 4,000 | ||||
Value of railcars | $ 256,000,000 | ||||
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility maximum capacity | $ 290,000,000 | ||||
Line of credit maturity date | 2016-06 | ||||
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | LIBOR | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, percentage points added to the reference rate | 2.25% | ||||
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | Prime Rate | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, percentage points added to the reference rate | 1.25% | ||||
Subsequent Event | WL Ross & Co., LLC (WL Ross) | |||||
Subsequent Event [Line Items] | |||||
Number of railcars owned | Vehicle | 3,885 | ||||
Subsequent Event | Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility maximum capacity | $ 550,000,000 | ||||
Line of credit maturity date | 2020-10 | ||||
Subsequent Event | Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | LIBOR | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, percentage points added to the reference rate | 1.75% | ||||
Subsequent Event | Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | Prime Rate | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, percentage points added to the reference rate | 0.75% |
Quarterly Results of Operati117
Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | ||||||||||||
Revenue | ||||||||||||||||||||||
Revenues | $ 765,465 | $ 714,606 | $ 630,149 | $ 495,058 | $ 618,106 | $ 593,285 | $ 502,216 | $ 490,355 | $ 2,605,278 | [1] | $ 2,203,962 | [1] | $ 1,756,418 | [1] | ||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | 590,776 | 565,320 | 504,839 | 406,990 | 512,071 | 496,510 | 444,365 | 428,796 | 2,067,925 | 1,881,742 | 1,550,045 | |||||||||||
Margin | 174,689 | 149,286 | 125,310 | 88,068 | 106,035 | 96,775 | 57,851 | 61,559 | 537,353 | 322,220 | 206,373 | |||||||||||
Selling and administrative | 39,568 | 45,595 | 32,899 | 33,729 | 36,236 | 34,800 | 28,125 | 26,109 | 151,791 | 125,270 | 103,175 | |||||||||||
Net gain on disposition of equipment | (406) | (720) | (121) | (83) | (353) | (5,619) | (5,416) | (3,651) | (1,330) | (15,039) | (18,072) | |||||||||||
Gain on contribution to joint venture | (29,006) | (29,006) | ||||||||||||||||||||
Restructuring charges | 56 | 540 | 879 | 1,475 | 2,719 | |||||||||||||||||
Earnings from operations | 135,527 | 104,411 | 92,532 | 54,422 | 99,158 | 67,538 | 34,602 | 38,222 | 386,892 | 239,520 | 41,651 | |||||||||||
Other costs | ||||||||||||||||||||||
Interest and foreign exchange | 1,824 | 4,285 | 1,929 | 3,141 | 4,415 | 5,437 | 4,099 | 4,744 | 11,179 | 18,695 | 22,158 | |||||||||||
Earnings before income tax and earnings (loss) from unconsolidated affiliates | 133,703 | 100,126 | 90,603 | 51,281 | 94,743 | 62,101 | 30,503 | 33,478 | 375,713 | 220,825 | 19,493 | |||||||||||
Income tax (expense) benefit | (35,951) | (30,783) | (29,372) | (16,054) | (35,693) | (16,303) | (9,883) | (10,522) | (112,160) | (72,401) | (25,060) | |||||||||||
Earnings (loss) from unconsolidated affiliates | 204 | 982 | (185) | 755 | 1,083 | 298 | (67) | 41 | 1,756 | 1,355 | 186 | |||||||||||
Net earnings (loss) | 97,956 | 70,325 | 61,046 | 35,982 | 60,133 | 46,096 | 20,553 | 22,997 | 265,309 | 149,779 | (5,381) | |||||||||||
Net earnings attributable to noncontrolling interest | (31,072) | (27,514) | (10,695) | (3,196) | (12,777) | (12,508) | (4,966) | (7,609) | (72,477) | (37,860) | (5,667) | |||||||||||
Net earnings attributable to Greenbrier | $ 66,884 | $ 42,811 | $ 50,351 | $ 32,786 | $ 47,356 | $ 33,588 | $ 15,587 | $ 15,388 | $ 192,832 | $ 111,919 | $ (11,048) | |||||||||||
Basic earnings per common share | $ 2.23 | [2] | $ 1.54 | [2] | $ 1.86 | [2] | $ 1.19 | [2] | $ 1.69 | [2] | $ 1.20 | [2] | $ 0.55 | [2] | $ 0.54 | [2] | $ 6.85 | [2] | $ 3.97 | [2] | $ (0.41) | |
Diluted earnings per common share | $ 2.02 | [2] | $ 1.33 | [2] | $ 1.57 | [2] | $ 1.01 | [2] | $ 1.43 | [2] | $ 1.03 | [2] | $ 0.50 | [2] | $ 0.49 | [2] | $ 5.93 | [2],[3] | $ 3.44 | [2],[3] | $ (0.41) | |
Manufacturing | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
Revenues | $ 657,485 | $ 593,376 | $ 505,241 | $ 379,949 | $ 492,105 | $ 425,583 | $ 347,755 | $ 359,473 | $ 2,136,051 | $ 1,624,916 | $ 1,215,734 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | 506,492 | 465,658 | 403,227 | 316,037 | 404,167 | 351,829 | 306,572 | 311,440 | 1,691,414 | 1,374,008 | 1,082,889 | |||||||||||
Wheels & Parts | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
Revenues | 84,566 | 97,407 | 102,640 | 86,624 | 105,023 | 140,663 | 136,540 | 113,401 | 371,237 | 495,627 | 469,222 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | 75,395 | 89,645 | 92,768 | 76,872 | 98,198 | 129,825 | 127,940 | 107,975 | 334,680 | 463,938 | 431,501 | |||||||||||
Leasing & Services | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
Revenues | 23,414 | 23,823 | 22,268 | 28,485 | 20,978 | 27,039 | 17,921 | 17,481 | 97,990 | 83,419 | 71,462 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | $ 8,889 | $ 10,017 | $ 8,844 | $ 14,081 | $ 9,706 | $ 14,856 | $ 9,853 | $ 9,381 | $ 41,831 | $ 43,796 | $ 35,655 | |||||||||||
[1] | Revenue is presented on the basis of geographic location of customers. | |||||||||||||||||||||
[2] | Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings. | |||||||||||||||||||||
[3] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on convertible notes Weighted average diluted common shares outstanding |