Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2017 | Dec. 29, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GBX | |
Entity Registrant Name | GREENBRIER COMPANIES INC | |
Entity Central Index Key | 923,120 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,700,612 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 591,406 | $ 611,466 |
Restricted cash | 8,839 | 8,892 |
Accounts receivable, net | 315,393 | 279,964 |
Inventories | 411,371 | 400,127 |
Leased railcars for syndication | 130,991 | 91,272 |
Equipment on operating leases, net | 274,598 | 315,941 |
Property, plant and equipment, net | 426,961 | 428,021 |
Investment in unconsolidated affiliates | 101,529 | 108,255 |
Intangibles and other assets, net | 83,819 | 85,177 |
Goodwill | 67,783 | 68,590 |
Total assets | 2,412,690 | 2,397,705 |
Liabilities and Equity | ||
Revolving notes | 6,885 | 4,324 |
Accounts payable and accrued liabilities | 441,373 | 415,061 |
Deferred income taxes | 69,984 | 75,791 |
Deferred revenue | 120,044 | 129,260 |
Notes payable, net | 558,987 | 558,228 |
Commitments and contingencies (Note 13) | ||
Contingently redeemable noncontrolling interest | 35,209 | 36,148 |
Greenbrier | ||
Preferred stock-without par value; 25,000 shares authorized; none outstanding | ||
Common stock-without par value; 50,000 shares authorized; 28,701 and 28,503 shares outstanding at November 30, 2017 and August 31, 2017 | 0 | 0 |
Additional paid-in capital | 312,789 | 315,306 |
Retained earnings | 728,755 | 709,103 |
Accumulated other comprehensive loss | (8,987) | (6,279) |
Total equity - Greenbrier | 1,032,557 | 1,018,130 |
Noncontrolling interest | 147,651 | 160,763 |
Total equity | 1,180,208 | 1,178,893 |
Liabilities and Equity | $ 2,412,690 | $ 2,397,705 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2017 | Aug. 31, 2017 |
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 | 28,701,000 | 28,503,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Revenue | |||
Revenue | $ 559,535 | $ 552,314 | |
Cost of revenue | |||
Cost of revenue | 470,221 | 439,563 | |
Margin | 89,314 | 112,751 | |
Selling and administrative expense | 47,043 | 41,213 | |
Net gain on disposition of equipment | (19,171) | (1,122) | |
Earnings from operations | 61,442 | 72,660 | |
Other costs | |||
Interest and foreign exchange | 7,020 | 1,724 | |
Earnings before income taxes and loss from unconsolidated affiliates | 54,422 | 70,936 | |
Income tax expense | (18,135) | (20,386) | |
Earnings before loss from unconsolidated affiliates | 36,287 | 50,550 | |
Loss from unconsolidated affiliates | (2,910) | (2,584) | |
Net earnings | 33,377 | 47,966 | |
Net earnings attributable to noncontrolling interest | (7,124) | (23,004) | |
Net earnings attributable to Greenbrier | $ 26,253 | $ 24,962 | |
Basic earnings per common share: | $ 0.90 | $ 0.86 | |
Diluted earnings per common share: | [1] | $ 0.83 | $ 0.79 |
Weighted average common shares: | |||
Basic | [2] | 29,332 | 29,097 |
Diluted | 32,696 | 32,412 | |
Dividends declared per common share | $ 0.23 | $ 0.21 | |
Manufacturing | |||
Revenue | |||
Revenue | $ 451,485 | $ 454,033 | |
Cost of revenue | |||
Cost of revenue | 380,850 | 356,555 | |
Earnings from operations | 52,969 | 83,341 | |
Wheels & Parts | |||
Revenue | |||
Revenue | 78,011 | 69,635 | |
Cost of revenue | |||
Cost of revenue | 72,506 | 64,978 | |
Earnings from operations | 2,418 | 2,894 | |
Leasing & Services | |||
Revenue | |||
Revenue | 30,039 | 28,646 | |
Cost of revenue | |||
Cost of revenue | 16,865 | 18,030 | |
Earnings from operations | $ 28,190 | $ 7,390 | |
[1] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs (net of tax) on convertible notes Weighted average diluted common shares outstanding | ||
[2] | Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Net earnings | $ 33,377 | $ 47,966 | |
Other comprehensive income | |||
Translation adjustment | (3,187) | (6,720) | |
Reclassification of derivative financial instruments recognized in net earnings | [1] | (328) | 323 |
Unrealized gain (loss) on derivative financial instruments | [2] | 822 | (4,904) |
Other (net of tax effect) | (19) | (1) | |
Other comprehensive income | (2,712) | (11,302) | |
Comprehensive income | 30,665 | 36,664 | |
Comprehensive income attributable to noncontrolling interest | (7,120) | (23,004) | |
Comprehensive income attributable to Greenbrier | $ 23,545 | $ 13,660 | |
[1] | Net of tax effect of $0.02 million and $0.2 million for the three months ended November 30, 2017 and 2016. | ||
[2] | Net of tax effect of $0.3 million and $1.0 million for the three months ended November 30, 2017 and 2016. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Reclassification of derivative financial instruments recognized in net earnings (loss), tax | $ 20 | $ 200 |
Unrealized loss on derivative financial instruments, tax | $ 300 | $ 1,000 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Contingently Redeemable Noncontrolling Interest | Common Stock Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Attributable to Greenbrier | Attributable to Noncontrolling Interest |
Beginning balance (in shares) at Aug. 31, 2016 | 28,205 | |||||||
Beginning balance at Aug. 31, 2016 | $ 1,016,827 | $ 282,886 | $ 618,178 | $ (26,753) | $ 874,311 | $ 142,516 | ||
Net earnings | 47,966 | 24,962 | 24,962 | 23,004 | ||||
Other comprehensive loss, net | (11,302) | (11,302) | (11,302) | |||||
Noncontrolling interest adjustments | (3,781) | (3,781) | ||||||
Joint venture partner distribution declared | (10,702) | (10,702) | ||||||
Restricted stock awards (net of cancellations) (in shares) | 163 | |||||||
Restricted stock awards (net of cancellations) | (2,945) | (2,945) | (2,945) | |||||
Unamortized restricted stock | 125 | 125 | 125 | |||||
Restricted stock amortization | 4,152 | 4,152 | 4,152 | |||||
Tax deficiency from restricted stock awards | (2,464) | (2,464) | (2,464) | |||||
Cash dividends | (6,114) | (6,114) | (6,114) | |||||
Ending Balance (in shares) at Nov. 30, 2016 | 28,368 | |||||||
Ending Balance at Nov. 30, 2016 | $ 1,031,762 | 281,754 | 637,026 | (38,055) | 880,725 | 151,037 | ||
Beginning balance at Aug. 31, 2017 | $ 36,148 | |||||||
Ending Balance at Nov. 30, 2017 | $ 35,209 | |||||||
Beginning balance (in shares) at Aug. 31, 2017 | 28,503 | 28,503 | ||||||
Beginning balance at Aug. 31, 2017 | $ 1,178,893 | 315,306 | 709,103 | (6,279) | 1,018,130 | 160,763 | ||
Net earnings | 33,377 | 26,253 | 26,253 | 8,063 | ||||
Other comprehensive loss, net | (2,712) | (2,708) | (2,708) | (4) | ||||
Noncontrolling interest adjustments | (882) | (882) | ||||||
Joint venture partner distribution declared | (26,789) | (26,789) | ||||||
Investment by joint venture partner | 6,500 | 6,500 | ||||||
Restricted stock awards (net of cancellations) (in shares) | 198 | |||||||
Restricted stock awards (net of cancellations) | (5,061) | (5,061) | (5,061) | |||||
Restricted stock amortization | 2,544 | 2,544 | 2,544 | |||||
Cash dividends | $ (6,601) | (6,601) | (6,601) | |||||
Ending Balance (in shares) at Nov. 30, 2017 | 28,701 | 28,701 | ||||||
Ending Balance at Nov. 30, 2017 | $ 1,180,208 | $ 312,789 | $ 728,755 | $ (8,987) | $ 1,032,557 | $ 147,651 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Cash flows from operating activities | ||
Net earnings | $ 33,377 | $ 47,966 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Deferred income taxes | (5,865) | 2,756 |
Depreciation and amortization | 18,370 | 15,595 |
Net gain on disposition of equipment | (19,171) | (1,122) |
Accretion of debt discount | 1,024 | |
Stock based compensation expense | 5,939 | 5,343 |
Noncontrolling interest adjustments | (875) | (3,781) |
Other | 477 | 229 |
Decrease (increase) in assets: | ||
Accounts receivable, net | (35,510) | (5,256) |
Inventories | (16,311) | (39,108) |
Leased railcars for syndication | (35,541) | 34,295 |
Other | 6,304 | 8,893 |
Increase (decrease) in liabilities: | ||
Accounts payable and accrued liabilities | 16,676 | (22,873) |
Deferred revenue | (8,548) | (11,111) |
Net cash provided by (used in) operating activities | (39,654) | 31,826 |
Cash flows from investing activities | ||
Proceeds from sales of assets | 75,060 | 9,189 |
Capital expenditures | (29,893) | (12,584) |
Decrease in restricted cash | 53 | 15,637 |
Cash distribution from unconsolidated affiliates | 550 | |
Investment in and advances to unconsolidated affiliates | (550) | |
Net cash provided by investing activities | 45,220 | 12,242 |
Cash flows from financing activities | ||
Net change in revolving notes with maturities of 90 days or less | 2,561 | |
Proceeds from issuance of notes payable | 2,138 | |
Repayments of notes payable | (2,809) | (1,750) |
Investment by joint venture partner | 6,500 | |
Cash distribution to joint venture partner | (26,900) | (11,185) |
Dividends | (319) | (6,147) |
Tax payments for net share settlement of restricted stock | (5,061) | (2,820) |
Excess tax deficiency from restricted stock awards | (2,464) | |
Net cash used in financing activities | (23,890) | (24,366) |
Effect of exchange rate changes | (1,736) | (8,591) |
Increase (decrease) in cash and cash equivalents | (20,060) | 11,111 |
Cash and cash equivalents | ||
Beginning of period | 611,466 | 222,679 |
End of period | 591,406 | 233,790 |
Cash paid during the period for | ||
Interest | 3,662 | 3,511 |
Income taxes, net | 385 | 10,433 |
Non-cash activity | ||
Transfer from Leased railcars for syndication to Equipment on operating leases, net | 6,082 | |
Capital expenditures accrued in Accounts payable and accrued liabilities | 14,840 | $ 5,447 |
Dividends declared and accrued in Accounts payable and accrued liabilities | $ 6,282 |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Nov. 30, 2017 | |
Interim Financial Statements | Note 1 – Interim Financial Statements The Condensed Consolidated Financial Statements of The Greenbrier Companies, Inc. and its subsidiaries (Greenbrier or the Company) as of November 30, 2017 and for the three months ended November 30, 2017 and 2016 have been prepared without audit and reflect all adjustments (consisting of normal recurring accruals) that, in the opinion of management, are necessary for a fair presentation of the financial position, operating results and cash flows for the periods indicated. The results of operations for the three months ended November 30, 2017 are not necessarily indicative of the results to be expected for the entire year ending August 31, 2018. Certain notes and other information have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. 10-K. Management Estimates – Initial Adoption of Accounting Policies 2016-09, Improvements to Employee Share-Based Payment Accounting 2016-09). tax-related Prospective Accounting Changes 2014-09, Revenue from Contracts with Customers 2014-09), 2014-09, 2014-09 2014-09, In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases 2016-02). 2016-02 right-of-use In December 2016, the FASB issued Accounting Standards Update 2016-18, Restricted Cash 2016-18). beginning-of-period end-of-period In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities 2017-12). non-financial Share Repurchase Program – time-to-time. The Company did not repurchase any shares during the three months ended November 30, 2017. As of November 30, 2017, the Company had cumulatively repurchased 3,206,226 shares for approximately $137.0 million since October 2013 and had $88.0 million available under the share repurchase program. |
Acquisitions
Acquisitions | 3 Months Ended |
Nov. 30, 2017 | |
Acquisitions | Note 2 – Acquisitions On June 1, 2017, Greenbrier and Astra Holding GmbH (Astra) contributed their European operations to a newly formed company, Greenbrier-Astra Rail, a Europe-based freight railcar manufacturing, engineering and repair business. As consideration for an approximate 75% controlling interest, Greenbrier agreed to pay Astra €30 million at closing and €30 million 12 months after closing and issue an approximate 25% noncontrolling interest in the new company. The total net assets acquired of $114.6 million includes $38.3 million representing the fair value of the noncontrolling interest at the acquisition date. Astra also received a put option to sell its entire noncontrolling interest to Greenbrier at an exercise price equal to the higher of fair value or a defined EBITDA multiple as measured on the exercise date. The option is exercisable 30 days prior to and up until June 1, 2022. Due to Astra’s redemption right under the put option, the noncontrolling interest has been classified as a Contingently redeemable noncontrolling interest in the mezzanine section of the Consolidated Balance Sheets. The carrying value of the noncontrolling interest cannot be less than the maximum redemption amount, which is the amount Greenbrier will settle the put option for if exercised. Adjustments to reconcile the carrying value to the maximum redemption amount are recorded to retained earnings. There were no such adjustments during the period ended November 30, 2017. For the three months ended November 30, 2017, the European operations contributed by Astra generated revenues of $43.2 million and earnings from operations of $0.4 million, which are reported in the Company’s consolidated financial statements as part of the Manufacturing segment. The impact of the acquisition was not material to the Company’s consolidated results of operations, therefore pro forma financial information has not been included. Minor adjustments were made to the purchase price allocation during the three months ended November 30, 2017. The preliminary allocation of the purchase price based on the fair value of the net assets acquired from Astra was as follows as of June 1, 2017, the acquisition date: (in thousands) Cash and cash equivalents $ 6,562 Accounts receivable 10,984 Inventories 30,454 Property, plant and equipment 75,296 Intangibles and other assets 17,300 Goodwill 24,518 Total assets acquired 165,114 Accounts payable and accrued liabilities 17,879 Deferred income taxes 7,292 Deferred revenue 964 Notes payable 24,382 Total liabilities assumed 50,517 Net assets acquired $ 114,597 |
Inventories
Inventories | 3 Months Ended |
Nov. 30, 2017 | |
Inventories | Note 3 – Inventories Inventories are valued at the lower of cost (first-in, first-out) Work-in-process (In thousands) November 30, August 31, Manufacturing supplies and raw materials $ 241,018 $ 222,080 Work-in-process 90,457 86,794 Finished goods 84,438 95,389 Excess and obsolete adjustment (4,542 ) (4,136 ) $ 411,371 $ 400,127 |
Intangibles and Other Assets, n
Intangibles and Other Assets, net | 3 Months Ended |
Nov. 30, 2017 | |
Intangibles and Other Assets, net | Note 4 – 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: (In thousands) November 30, August 31, Intangible assets subject to amortization: Customer relationships $ 64,521 $ 64,521 Accumulated amortization (41,000 ) (40,153 ) Other intangibles 16,773 20,207 Accumulated amortization (5,402 ) (4,866 ) 34,892 39,709 Intangible assets not subject to amortization 4,164 912 Prepaid and other assets 15,003 16,914 Nonqualified savings plan investments 23,694 20,974 Revolving notes issuance costs, net 2,416 2,623 Assets held for sale 3,650 4,045 Total Intangible and other assets, net $ 83,819 $ 85,177 Amortization expense for the three months ended November 30, 2017 was $1.4 million and for the three months ended November 30, 2016 was $1.7 million. Amortization expense for the years ending August 31, 2018, 2019, 2020, 2021 and 2022 is expected to be $5.8 million, $5.4 million, $5.7 million, $5.4 million and $4.0 million. |
Revolving Notes
Revolving Notes | 3 Months Ended |
Nov. 30, 2017 | |
Revolving Notes | Note 5 – Revolving Notes Senior secured credit facilities, consisting of three components, aggregated to $626.7 million as of November 30, 2017. As of November 30, 2017, a $550.0 million revolving line of credit, maturing October 2020, 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 1.75% or Prime plus 0.75% 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. As of November 30, 2017, lines of credit totaling $26.7 million secured by certain of the Company’s European assets, with variable rates that range from Warsaw Interbank Offered Rate (WIBOR) plus 1.2% to WIBOR plus 1.3% and Euro Interbank Offered Rate (EURIBOR) plus 1.9%, 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 2018 through June 2019. As of November 30, 2017, the Company’s Mexican railcar manufacturing joint venture had two lines of credit totaling $50.0 million. The first line of credit provides up to $30.0 million and is fully guaranteed by the Company and its joint venture partner. Advances under this facility bear interest at LIBOR plus 2.0%. The Mexican railcar manufacturing joint venture will be able to draw against this facility through January 2019. The second 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 railcar manufacturing joint venture will be able to draw amounts available under this facility through July 2019. As of November 30, 2017, outstanding commitments under the senior secured credit facilities consisted of $75.4 million in letters of credit under the North American credit facility and $6.9 million outstanding under the European credit facilities. As of August 31, 2017, outstanding commitments under the senior secured credit facilities consisted of $77.6 million in letters of credit under the North American credit facility and $4.3 million outstanding under the European credit facilities. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 3 Months Ended |
Nov. 30, 2017 | |
Accounts Payable and Accrued Liabilities | Note 6 – Accounts Payable and Accrued Liabilities (In thousands) November 30, August 31, Trade payables $ 193,919 $ 180,592 Other accrued liabilities 122,919 111,316 Accrued payroll and related liabilities 76,273 84,749 Accrued warranty 21,952 20,737 Accrued maintenance 17,462 17,667 Income taxes payable 8,848 — $ 441,373 $ 415,061 |
Warranty Accruals
Warranty Accruals | 3 Months Ended |
Nov. 30, 2017 | |
Warranty Accruals | Note 7 – Warranty Accruals Warranty costs are estimated and charged to operations to cover a defined warranty period. The estimated warranty cost is based on the history of warranty claims for each particular product type. For new product types without a warranty history, preliminary estimates are based on historical information for similar product types. The warranty accruals, included in Accounts payable and accrued liabilities on the Consolidated Balance Sheets, are reviewed periodically and updated based on warranty trends and expirations of warranty periods. Warranty accrual activity: (In thousands) Three Months Ended 2017 2016 Balance at beginning of period $ 20,737 $ 12,159 Charged to cost of revenue, net 1,953 357 Payments (751 ) (637 ) Currency translation effect 13 (142 ) Balance at end of period $ 21,952 $ 11,737 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Nov. 30, 2017 | |
Accumulated Other Comprehensive Loss | Note 8 – Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of tax effect as appropriate, consisted of the following: (In thousands) Unrealized Foreign Other Accumulated Balance, August 31, 2017 $ 181 $ (5,366 ) $ (1,094 ) $ (6,279 ) Other comprehensive loss before reclassifications 822 (3,183 ) (19 ) (2,380 ) Amounts reclassified from Accumulated other comprehensive loss (328 ) — — (328 ) Balance, November 30, 2017 $ 675 $ (8,549 ) $ (1,113 ) $ (8,987 ) The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with presentation location, were as follows: Three Months Ended Financial Statement (In thousands) 2017 2016 (Gain) loss on derivative financial instruments: Foreign exchange contracts $ (511 ) $ 143 Revenue and Cost of revenue Interest rate swap contracts 167 338 Interest and foreign exchange (344 ) 481 Total before tax 16 (158 ) Tax expense $ (328 ) $ 323 Net of tax |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Nov. 30, 2017 | |
Earnings Per Share | Note 9 – Earnings Per Share The shares used in the computation of the Company’s basic and diluted earnings per common share are reconciled as follows: (In thousands ) Three Months Ended 2017 2016 Weighted average basic common shares outstanding (1) 29,332 29,097 Dilutive effect of 2018 Convertible notes (2) 3,331 3,258 Dilutive effect of 2024 Convertible notes (3) — n/a Dilutive effect of performance based restricted stock units (4) 33 57 Weighted average diluted common shares outstanding 32,696 32,412 (1) Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. (2) The dilutive effect of the 2018 Convertible notes was included as they were considered dilutive under the “if converted” method as further discussed below. (3) The 2024 Convertible notes were issued in February 2017. The dilutive effect of the 2024 Convertible notes was excluded for the three months ended November 30, 2017 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. (4) Restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. 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 2024 Convertible notes and performance based restricted stock units 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 2024 Convertible notes are included in the calculation of both approaches using the treasury stock method when the average stock price is greater than the applicable conversion price. Three Months Ended 2017 2016 Net earnings attributable to Greenbrier $ 26,253 $ 24,962 Add back: Interest and debt issuance costs on the 2018 Convertible notes, net of tax 733 733 Earnings before interest and debt issuance costs on convertible notes $ 26,986 $ 25,695 Weighted average diluted common shares outstanding 32,696 32,412 Diluted earnings per share (1) $ 0.83 $ 0.79 (1) Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs (net of tax) on convertible notes Weighted average diluted common shares outstanding |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Nov. 30, 2017 | |
Stock Based Compensation | Note 10 – Stock Based Compensation The value of stock based compensation awards is amortized as compensation expense from the date of grant through the earlier of the vesting period or the recipient’s eligible retirement date. Awards are expensed upon grant when the recipient’s eligible retirement date precedes the grant date. Stock based compensation expense was $5.9 million for the three months ended November 30, 2017 and $5.3 million for the three months ended November 30, 2016. Compensation expense is recorded in Selling and administrative expense and Cost of revenue on the Consolidated Statements of Income. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Nov. 30, 2017 | |
Derivative Instruments | Note 11 – 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 November 30, 2017 exchange rates, forward exchange contracts for the purchase of Polish Zlotys and the sale of Euros and U.S. Dollars; the purchase of Mexican Pesos and the sale of U.S. Dollars; and for the purchase of U.S. Dollars and the sale of Saudi Riyals aggregated to $243.5 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 July 2019, any such gain or loss remaining will be recognized in manufacturing revenue or cost of revenue along with the related transactions. In the event that the underlying transaction does not occur or does not occur in the period designated at the inception of the hedge, the amount classified in accumulated other comprehensive loss would be reclassified to the results of operations in Interest and foreign exchange at the time of occurrence. At November 30, 2017 exchange rates, approximately $0.6 million would be reclassified to revenue or cost of revenue in the next 12 months. At November 30, 2017, an interest rate swap agreement maturing in March 2020 had a notional amount of $87.8 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 November 30, 2017 interest rates, approximately $0.6 million would be reclassified to interest expense in the next 12 months. Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives November 30, August 31, November 30, August 31, (In thousands) Balance sheet location Fair Fair Balance sheet location Fair Fair Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 1,735 $ 2,341 Accounts payable and accrued liabilities $ 1,194 $ 1,761 Interest rate swap contracts Intangibles and other assets, net — — Accounts payable and accrued liabilities 227 1,125 $ 1,735 $ 2,341 $ 1,421 $ 2,886 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 2,018 $ 1,473 Accounts payable and accrued liabilities $ 5 $ — The Effect of Derivative Instruments on the Statements of Income Derivatives in cash flow hedging relationships Location of gain (loss) recognized in income on derivatives Gain (loss) 2017 2016 Foreign forward exchange contract Interest and foreign exchange $ 380 $ 47 Interest rate swap contracts Interest and foreign exchange (17 ) 38 $ 363 $ 85 Derivatives in cash flow hedging relationships Gain (loss) Location of gain (loss) Gain (loss) Location of gain (loss) on Gain (loss) recognized on 2017 2016 2017 2016 2017 2016 Foreign forward exchange contracts $ 730 $ (6,456 ) Revenue $ 710 $ (87 ) Revenue $ 56 $ (1,258 ) Foreign forward exchange contracts (354 ) (834 ) Cost of revenue (199 ) (56 ) Cost of revenue 82 (32 ) Interest rate swap contracts 771 1,146 Interest and foreign (167 ) (338 ) Interest and foreign — — $ 1,147 $ (6,144 ) $ 344 $ (481 ) $ 138 $ (1,290 ) |
Segment Information
Segment Information | 3 Months Ended |
Nov. 30, 2017 | |
Segment Information | Note 12 – Segment Information Greenbrier operates in four reportable segments: Manufacturing; Wheels & Parts; Leasing & Services; and GBW Joint Venture. The results of GBW Joint Venture are included as part of Earnings (loss) from unconsolidated affiliates as the Company accounts for its interest in GBW Railcar Services LLC (GBW) under the equity method of accounting. The accounting policies of the segments are described in the summary of significant accounting policies in the Consolidated Financial Statements contained in the Company’s 2017 Annual Report on Form 10-K. The information in the following table is derived directly from the segments’ internal financial reports used for corporate management purposes. The results of operations for the GBW Joint Venture are not reflected in the tables below as the investment is accounted for under the equity method of accounting. For the three months ended November 30, 2017: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 451,485 $ 16,804 $ 468,289 $ 52,969 $ 4,186 $ 57,155 Wheels & Parts 78,011 7,732 85,743 2,418 748 3,166 Leasing & Services 30,039 1,605 31,644 28,190 1,372 29,562 Eliminations — (26,141 ) (26,141 ) — (6,306 ) (6,306 ) Corporate — — — (22,135 ) — (22,135 ) $ 559,535 $ — $ 559,535 $ 61,442 $ — $ 61,442 For the three months ended November 30, 2016: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 454,033 $ — $ 454,033 $ 83,341 $ — $ 83,341 Wheels & Parts 69,635 7,201 76,836 2,894 612 3,506 Leasing & Services 28,646 5,334 33,980 7,390 5,250 12,640 Eliminations — (12,535 ) (12,535 ) — (5,862 ) (5,862 ) Corporate — — — (20,965 ) — (20,965 ) $ 552,314 $ — $ 552,314 $ 72,660 $ — $ 72,660 Total assets (In thousands) November 30, August 31, Manufacturing $ 915,918 $ 914,450 Wheels & Parts 262,349 236,315 Leasing & Services 535,847 535,323 Unallocated 698,576 711,617 $ 2,412,690 $ 2,397,705 Reconciliation of Earnings from operations to Earnings before income tax and earnings (loss) from unconsolidated affiliates: Three Months Ended (In thousands) 2017 2016 Earnings from operations $ 61,442 $ 72,660 Interest and foreign exchange 7,020 1,724 Earnings before income tax and earnings (loss) from unconsolidated affiliates $ 54,422 $ 70,936 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 as of November 30, 2017 and August 31, 2017 and for the three months ended November 30, 2017 and 2016 are included in the tables below. Three Months Ended (In thousands) 2017 2016 Revenue $ 58,000 $ 70,253 Loss from operations $ (5,744 ) $ (4,561 ) Total Assets November 30, August 31, GBW (1) $ 204,288 $ 206,009 (1) Includes goodwill and intangible assets of $78.1 million and $78.8 million as of November 30, 2017 and August 31, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2017 | |
Commitments and Contingencies | Note 13 – Commitments and Contingencies The Company’s Portland, Oregon manufacturing facility is located adjacent to the Willamette River. In December 2000, the U.S. Environmental Protection Agency (EPA) classified portions of the Willamette River bed known as the Portland Harbor, including the portion fronting the Company’s manufacturing facility, as a federal “National Priority List” or “Superfund” site due to sediment contamination (the Portland Harbor Site). The Company and more than 140 other parties have received a “General Notice” of potential liability from the EPA relating to the Portland Harbor Site. The letter advised the Company that it may be liable for the costs of investigation and remediation (which liability may be joint and several with other potentially responsible parties) as well as for natural resource damages resulting from releases of hazardous substances to the site. Ten private and public entities, including the Company (the Lower Willamette Group or LWG), signed an Administrative Order on Consent (AOC) to perform a remedial investigation/feasibility study (RI/FS) of the Portland Harbor Site under EPA oversight, and several additional entities have not signed such consent, but nevertheless contributed money to the effort. The EPA-mandated 17-year 17-year Separate from the process described above which focused on the type of remediation to be performed at the Portland Harbor Site and the schedule for such remediation, 83 parties, including the State of Oregon and the federal government, entered into a non-judicial Arkema Inc. et al v. A & C Foundry Products, Inc. et al #3:09-cv-453-PK. The EPA’s January 6, 2017 ROD identifies a clean-up -30% 2-year costs by Sediment Decision Unit. The EPA’s ROD concluded that more data was needed to better define clean-up clean-up On January 30, 2017 the Confederated Tribes and Bands of Yakama Nation sued 33 parties including the Company as well as the United States and the State of Oregon for costs it incurred in assessing alleged natural resource damages to the Columbia River from contaminants deposited in Portland Harbor. Confederated Tribes and Bands of the Yakama Nation v. Air Liquide America Corp., et al., 3i17-CV-00164-SB. The ROD does not address responsibility for the costs of clean-up, pre-remedial 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. The Company has also signed an Order on Consent with the DEQ to finalize the investigation of potential onsite sources of contamination that may have a release pathway to the Willamette River. Interim precautionary measures are also required in the order and the Company is discussing with the DEQ potential remedial actions which may be required. The Company’s aggregate expenditure has not been material, however 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 outcomes of which cannot be predicted with certainty. In the quarter ended November 30, 2016, the Company received an adverse judgment of approximately $15 million on one matter related to commercial litigation in a foreign jurisdiction. The judgment was reversed on appeal and the case was remanded to the trial court. In June 2017 the court issued a new judgment against the Company of approximately $10 million. The judgment was affirmed on appeal. The Company has reached an agreement in principle, subject to final documentation and court approval, to settle such litigation and certain related matters. While the ultimate outcome of such legal proceedings cannot be determined at this time, the Company believes that the resolution of pending litigation will not have a material adverse effect on the Company’s Consolidated Financial Statements. As of November 30, 2017, the Company had outstanding letters of credit aggregating $75.4 million associated with performance guarantees, facility leases and workers compensation insurance. As of November 30, 2017, the Company had a $36.5 million note receivable balance from GBW which is included on the Consolidated Balance Sheet in Accounts receivable, net. The Company is likely to make additional capital contributions or loans to GBW, an unconsolidated 50/50 joint venture, in the future. As of November 30, 2017, the Company had a $10.0 million note receivable from Amsted-Maxion Cruzeiro, its unconsolidated Brazilian castings and components manufacturer and a $9.2 million note receivable balance from Greenbrier-Maxion, its unconsolidated Brazilian railcar manufacturer. These note receivables are included on the Consolidated Balance Sheet in Accounts receivable, net. In the future, the Company may make loans to or provide guarantees for Amsted-Maxion Cruzeiro or Greenbrier-Maxion. |
Fair Value Measures
Fair Value Measures | 3 Months Ended |
Nov. 30, 2017 | |
Fair Value Measures | Note 14 – 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 that prioritizes the inputs used in measuring 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 November 30, 2017 were: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 3,753 $ — $ 3,753 $ — Nonqualified savings plan investments 23,694 23,694 — — Cash equivalents 105,563 105,563 — — $ 133,010 $ 129,257 $ 3,753 $ — Liabilities: Derivative financial instruments $ 1,426 $ — $ 1,426 $ — (1) Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 11 Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2017 were: (In thousands) Total Level 1 Level 2 Level 3 Assets: Derivative financial instruments $ 3,814 $ — $ 3,814 $ — Nonqualified savings plan investments 20,974 20,974 — — Cash equivalents 105,337 105,337 — — $ 130,125 $ 126,311 $ 3,814 $ — Liabilities: Derivative financial instruments $ 2,886 $ — $ 2,886 $ — |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Nov. 30, 2017 | |
Related Party Transactions | Note 15 – Related Party Transactions In June 2017, the Company purchased a 40% interest in the common stock of an entity that buys and sells railcar assets that are leased to third parties. The railcars sold to this leasing warehouse are principally built by Greenbrier. The Company accounts for this leasing warehouse investment under the equity method of accounting. As of November 30, 2017, the carrying amount of the investment was $7.2 million which is classified in Investment in unconsolidated affiliates in the Consolidated Balance Sheet. Upon sale of railcars to this entity from Greenbrier, 60% of the related revenue and margin is recognized and 40% is deferred until the railcars are ultimately sold by the entity. During the three months ended November 30, 2017, the Company recognized $16 million in revenue associated with railcars sold into the leasing warehouse and an additional $8 million associated with railcars sold out of the leasing warehouse. The Company also provides administrative and remarketing services to this entity and earns management fees for these services which were minor for the three months ended November 30, 2017. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Nov. 30, 2017 | |
Subsequent Event | Note 16 – Subsequent Event On December 22, 2017 the Tax Cuts and Jobs Act of 2017 was signed into law. The provisions of the law include a reduction of the corporate tax rate and the taxation of a multi-national corporation’s permanently reinvested foreign earnings. The Company is currently evaluating the impact to its financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Preliminary Fair Value of Net Assets Acquired | The preliminary allocation of the purchase price based on the fair value of the net assets acquired from Astra was as follows as of June 1, 2017, the acquisition date: (in thousands) Cash and cash equivalents $ 6,562 Accounts receivable 10,984 Inventories 30,454 Property, plant and equipment 75,296 Intangibles and other assets 17,300 Goodwill 24,518 Total assets acquired 165,114 Accounts payable and accrued liabilities 17,879 Deferred income taxes 7,292 Deferred revenue 964 Notes payable 24,382 Total liabilities assumed 50,517 Net assets acquired $ 114,597 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Components of Inventories | (In thousands) November 30, August 31, Manufacturing supplies and raw materials $ 241,018 $ 222,080 Work-in-process 90,457 86,794 Finished goods 84,438 95,389 Excess and obsolete adjustment (4,542 ) (4,136 ) $ 411,371 $ 400,127 |
Intangibles and Other Assets,27
Intangibles and Other Assets, net (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Identifiable Intangible and Other Assets | The following table summarizes the Company’s identifiable intangible and other assets balance: (In thousands) November 30, August 31, Intangible assets subject to amortization: Customer relationships $ 64,521 $ 64,521 Accumulated amortization (41,000 ) (40,153 ) Other intangibles 16,773 20,207 Accumulated amortization (5,402 ) (4,866 ) 34,892 39,709 Intangible assets not subject to amortization 4,164 912 Prepaid and other assets 15,003 16,914 Nonqualified savings plan investments 23,694 20,974 Revolving notes issuance costs, net 2,416 2,623 Assets held for sale 3,650 4,045 Total Intangible and other assets, net $ 83,819 $ 85,177 |
Accounts Payable and Accrued 28
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Accounts Payable and Accrued Liabilities | (In thousands) November 30, August 31, Trade payables $ 193,919 $ 180,592 Other accrued liabilities 122,919 111,316 Accrued payroll and related liabilities 76,273 84,749 Accrued warranty 21,952 20,737 Accrued maintenance 17,462 17,667 Income taxes payable 8,848 — $ 441,373 $ 415,061 |
Warranty Accruals (Tables)
Warranty Accruals (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Warranty Accrual Activity | Warranty accrual activity: (In thousands) Three Months Ended 2017 2016 Balance at beginning of period $ 20,737 $ 12,159 Charged to cost of revenue, net 1,953 357 Payments (751 ) (637 ) Currency translation effect 13 (142 ) Balance at end of period $ 21,952 $ 11,737 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Components of Accumulated Other Comprehensive Loss, Net of Tax | Accumulated other comprehensive loss, net of tax effect as appropriate, consisted of the following: (In thousands) Unrealized Foreign Other Accumulated Balance, August 31, 2017 $ 181 $ (5,366 ) $ (1,094 ) $ (6,279 ) Other comprehensive loss before reclassifications 822 (3,183 ) (19 ) (2,380 ) Amounts reclassified from Accumulated other comprehensive loss (328 ) — — (328 ) Balance, November 30, 2017 $ 675 $ (8,549 ) $ (1,113 ) $ (8,987 ) |
Amounts Reclassified out of Accumulated Other Comprehensive Loss | The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with presentation location, were as follows: Three Months Ended Financial Statement (In thousands) 2017 2016 (Gain) loss on derivative financial instruments: Foreign exchange contracts $ (511 ) $ 143 Revenue and Cost of revenue Interest rate swap contracts 167 338 Interest and foreign exchange (344 ) 481 Total before tax 16 (158 ) Tax expense $ (328 ) $ 323 Net of tax |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share | The shares used in the computation of the Company’s basic and diluted earnings per common share are reconciled as follows: (In thousands ) Three Months Ended 2017 2016 Weighted average basic common shares outstanding (1) 29,332 29,097 Dilutive effect of 2018 Convertible notes (2) 3,331 3,258 Dilutive effect of 2024 Convertible notes (3) — n/a Dilutive effect of performance based restricted stock units (4) 33 57 Weighted average diluted common shares outstanding 32,696 32,412 (1) Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. (2) The dilutive effect of the 2018 Convertible notes was included as they were considered dilutive under the “if converted” method as further discussed below. (3) The 2024 Convertible notes were issued in February 2017. The dilutive effect of the 2024 Convertible notes was excluded for the three months ended November 30, 2017 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. (4) Restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. |
Approach to Calculate Diluted Earning per Share | Three Months Ended 2017 2016 Net earnings attributable to Greenbrier $ 26,253 $ 24,962 Add back: Interest and debt issuance costs on the 2018 Convertible notes, net of tax 733 733 Earnings before interest and debt issuance costs on convertible notes $ 26,986 $ 25,695 Weighted average diluted common shares outstanding 32,696 32,412 Diluted earnings per share (1) $ 0.83 $ 0.79 (1) Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs (net of tax) on convertible notes Weighted average diluted common shares outstanding |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Fair Values of Derivative Instruments | Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives November 30, August 31, November 30, August 31, (In thousands) Balance sheet location Fair Fair Balance sheet location Fair Fair Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 1,735 $ 2,341 Accounts payable and accrued liabilities $ 1,194 $ 1,761 Interest rate swap contracts Intangibles and other assets, net — — Accounts payable and accrued liabilities 227 1,125 $ 1,735 $ 2,341 $ 1,421 $ 2,886 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 2,018 $ 1,473 Accounts payable and accrued liabilities $ 5 $ — |
Effect of Derivative Instruments on Statements of Income | The Effect of Derivative Instruments on the Statements of Income Derivatives in cash flow hedging relationships Location of gain (loss) recognized in income on derivatives Gain (loss) 2017 2016 Foreign forward exchange contract Interest and foreign exchange $ 380 $ 47 Interest rate swap contracts Interest and foreign exchange (17 ) 38 $ 363 $ 85 Derivatives in cash flow hedging relationships Gain (loss) Location of gain (loss) Gain (loss) Location of gain (loss) on Gain (loss) recognized on 2017 2016 2017 2016 2017 2016 Foreign forward exchange contracts $ 730 $ (6,456 ) Revenue $ 710 $ (87 ) Revenue $ 56 $ (1,258 ) Foreign forward exchange contracts (354 ) (834 ) Cost of revenue (199 ) (56 ) Cost of revenue 82 (32 ) Interest rate swap contracts 771 1,146 Interest and foreign (167 ) (338 ) Interest and foreign — — $ 1,147 $ (6,144 ) $ 344 $ (481 ) $ 138 $ (1,290 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Segments' Internal Financial Reports | The information in the following table is derived directly from the segments’ internal financial reports used for corporate management purposes. The results of operations for the GBW Joint Venture are not reflected in the tables below as the investment is accounted for under the equity method of accounting. For the three months ended November 30, 2017: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 451,485 $ 16,804 $ 468,289 $ 52,969 $ 4,186 $ 57,155 Wheels & Parts 78,011 7,732 85,743 2,418 748 3,166 Leasing & Services 30,039 1,605 31,644 28,190 1,372 29,562 Eliminations — (26,141 ) (26,141 ) — (6,306 ) (6,306 ) Corporate — — — (22,135 ) — (22,135 ) $ 559,535 $ — $ 559,535 $ 61,442 $ — $ 61,442 For the three months ended November 30, 2016: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 454,033 $ — $ 454,033 $ 83,341 $ — $ 83,341 Wheels & Parts 69,635 7,201 76,836 2,894 612 3,506 Leasing & Services 28,646 5,334 33,980 7,390 5,250 12,640 Eliminations — (12,535 ) (12,535 ) — (5,862 ) (5,862 ) Corporate — — — (20,965 ) — (20,965 ) $ 552,314 $ — $ 552,314 $ 72,660 $ — $ 72,660 Total assets (In thousands) November 30, August 31, Manufacturing $ 915,918 $ 914,450 Wheels & Parts 262,349 236,315 Leasing & Services 535,847 535,323 Unallocated 698,576 711,617 $ 2,412,690 $ 2,397,705 |
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: Three Months Ended (In thousands) 2017 2016 Earnings from operations $ 61,442 $ 72,660 Interest and foreign exchange 7,020 1,724 Earnings before income tax and earnings (loss) from unconsolidated affiliates $ 54,422 $ 70,936 |
GBW Railcar Services LLC | |
Segments' Internal Financial Reports | 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 as of November 30, 2017 and August 31, 2017 and for the three months ended November 30, 2017 and 2016 are included in the tables below. Three Months Ended (In thousands) 2017 2016 Revenue $ 58,000 $ 70,253 Loss from operations $ (5,744 ) $ (4,561 ) Total Assets November 30, August 31, GBW (1) $ 204,288 $ 206,009 (1) Includes goodwill and intangible assets of $78.1 million and $78.8 million as of November 30, 2017 and August 31, 2017. |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of November 30, 2017 were: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 3,753 $ — $ 3,753 $ — Nonqualified savings plan investments 23,694 23,694 — — Cash equivalents 105,563 105,563 — — $ 133,010 $ 129,257 $ 3,753 $ — Liabilities: Derivative financial instruments $ 1,426 $ — $ 1,426 $ — (1) Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 11 Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2017 were: (In thousands) Total Level 1 Level 2 Level 3 Assets: Derivative financial instruments $ 3,814 $ — $ 3,814 $ — Nonqualified savings plan investments 20,974 20,974 — — Cash equivalents 105,337 105,337 — — $ 130,125 $ 126,311 $ 3,814 $ — Liabilities: Derivative financial instruments $ 2,886 $ — $ 2,886 $ — |
Interim Financial Statements -
Interim Financial Statements - Additional Information (Detail) | 3 Months Ended |
Nov. 30, 2017USD ($)shares | |
Share Repurchase Program - 2014 | |
Equity, Class of Treasury Stock [Line Items] | |
Stock repurchased during period, shares | shares | 0 |
Stock repurchase program total cost of repurchased shares | $ 137,000,000 |
Repurchase of common stock, shares | shares | 3,206,226 |
Remaining authorized repurchase amount | $ 88,000,000 |
Maximum | Share Repurchase Program - 2013 | |
Equity, Class of Treasury Stock [Line Items] | |
Amount authorized for repurchase | $ 225,000,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) € in Millions | Jun. 01, 2017EUR (€) | Nov. 30, 2017USD ($) | Nov. 30, 2016USD ($) | Aug. 31, 2017USD ($) | Jun. 01, 2017USD ($) |
Business Acquisition [Line Items] | |||||
Revenue | $ 559,535,000 | $ 552,314,000 | |||
Earnings (loss) from operations | 61,442,000 | $ 72,660,000 | |||
Greenbrier-Astra Rail | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage by parent | 75.00% | ||||
Amount to be paid at closing | € | € 30 | ||||
Amount to be paid 12 months after closing by providing a guarantee | € | € 30 | ||||
Percentage of noncontrolling interest | 25.00% | ||||
Net assets acquired | $ 114,597,000 | ||||
Noncontrolling interest, fair value of acquisition | $ 38,300,000 | ||||
Adjustments to reconcile carrying value of redemption amount to recorded retained earnings | $ 0 | ||||
Revenue | 43,200,000 | ||||
Earnings (loss) from operations | $ 400,000 |
Preliminary Fair Value of Net A
Preliminary Fair Value of Net Assets Acquired (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 | Jun. 01, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 67,783 | $ 68,590 | |
Greenbrier-Astra Rail | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 6,562 | ||
Accounts receivable | 10,984 | ||
Inventories | 30,454 | ||
Property, plant and equipment | 75,296 | ||
Intangibles and other assets | 17,300 | ||
Goodwill | 24,518 | ||
Total assets acquired | 165,114 | ||
Accounts payable and accrued liabilities | 17,879 | ||
Deferred income taxes | 7,292 | ||
Deferred revenue | 964 | ||
Notes payable | 24,382 | ||
Total liabilities assumed | 50,517 | ||
Net assets acquired | $ 114,597 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 |
Inventory [Line Items] | ||
Manufacturing supplies and raw materials | $ 241,018 | $ 222,080 |
Work-in-process | 90,457 | 86,794 |
Finished goods | 84,438 | 95,389 |
Excess and obsolete adjustment | (4,542) | (4,136) |
Inventories | $ 411,371 | $ 400,127 |
Identifiable Intangible and Oth
Identifiable Intangible and Other Assets (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 |
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Net, Total | $ 34,892 | $ 39,709 |
Intangible assets not subject to amortization | 4,164 | 912 |
Prepaid and other assets | 15,003 | 16,914 |
Nonqualified savings plan investments | 23,694 | 20,974 |
Revolving notes issuance costs, net | 2,416 | 2,623 |
Assets held for sale | 3,650 | 4,045 |
Total Intangible and other assets, net | 83,819 | 85,177 |
Customer Relationships | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 64,521 | 64,521 |
Accumulated amortization | (41,000) | (40,153) |
Other Intangible Assets | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 16,773 | 20,207 |
Accumulated amortization | $ (5,402) | $ (4,866) |
Intangibles and Other Assets,40
Intangibles and Other Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Schedule of Intangible Assets Disclosure [Line Items] | ||
Amortization expense | $ 1.4 | $ 1.7 |
Future amortization expense, 2018 | 5.8 | |
Future amortization expense, 2019 | 5.4 | |
Future amortization expense, 2020 | 5.7 | |
Future amortization expense, 2021 | 5.4 | |
Future amortization expense, 2022 | $ 4 |
Revolving Notes - Additional In
Revolving Notes - Additional Information (Detail) | 3 Months Ended | |
Nov. 30, 2017USD ($)CreditFacilityFacility | Aug. 31, 2017USD ($) | |
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 | $ 626,700,000 | |
Letter of credit facility outstanding amount | 75,400,000 | $ 77,600,000 |
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 550,000,000 | |
Line of credit maturity date | 2020-10 | |
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 | 1.75% | |
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 0.75% | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 26,700,000 | |
Letter of credit facility outstanding amount | $ 6,900,000 | $ 4,300,000 |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Minimum | ||
Line of Credit Facility [Line Items] | ||
Line of credit maturity date | 2018-02 | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Maximum | ||
Line of Credit Facility [Line Items] | ||
Line of credit maturity date | 2019-06 | |
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% | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | EURIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.90% | |
Mexican Railcar Manufacturing Joint Venture Line of Credit, 3rd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 50,000,000 | |
Number of lines of credits | Facility | 2 | |
Mexican Railcar Manufacturing 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 | $ 30,000,000 | |
Line of credit facility borrowings outstanding due period | 2019-01 | |
Mexican Railcar Manufacturing 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 | 2.00% | |
Mexican Railcar Manufacturing 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 | $ 20,000,000 | |
Line of credit facility borrowings outstanding due period | 2019-07 | |
Joint venture partner each guaranteed percentage | 50.00% | |
Mexican Railcar Manufacturing 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% |
Accounts Payable and Accrued 42
Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 | Nov. 30, 2016 | Aug. 31, 2016 |
Accounts Payable and Accrued Liabilities [Line Items] | ||||
Trade payables | $ 193,919 | $ 180,592 | ||
Other accrued liabilities | 122,919 | 111,316 | ||
Accrued payroll and related liabilities | 76,273 | 84,749 | ||
Accrued warranty | 21,952 | 20,737 | $ 11,737 | $ 12,159 |
Accrued maintenance | 17,462 | 17,667 | ||
Income taxes payable | 8,848 | |||
Accounts payable and accrued liabilities | $ 441,373 | $ 415,061 |
Warranty Accruals Activity (Det
Warranty Accruals Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Product Liability Contingency [Line Items] | ||
Balance at beginning of period | $ 20,737 | $ 12,159 |
Charged to cost of revenue, net | 1,953 | 357 |
Payments | (751) | (637) |
Currency translation effect | 13 | (142) |
Balance at end of period | $ 21,952 | $ 11,737 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) $ in Thousands | 3 Months Ended |
Nov. 30, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ 1,018,130 |
Other comprehensive loss before reclassifications | (2,380) |
Amounts reclassified from Accumulated other comprehensive loss | (328) |
Ending balance | 1,032,557 |
Unrealized (Gain) Loss on Derivative Financial Instruments | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | 181 |
Other comprehensive loss before reclassifications | 822 |
Amounts reclassified from Accumulated other comprehensive loss | (328) |
Ending balance | 675 |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (5,366) |
Other comprehensive loss before reclassifications | (3,183) |
Ending balance | (8,549) |
Other | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (1,094) |
Other comprehensive loss before reclassifications | (19) |
Ending balance | (1,113) |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (6,279) |
Ending balance | $ (8,987) |
Amounts Reclassified out of Acc
Amounts Reclassified out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Interest and foreign exchange | $ 7,020 | $ 1,724 |
Total before tax | (54,422) | (70,936) |
Tax expense | (18,135) | (20,386) |
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Total before tax | (344) | 481 |
Tax expense | 16 | (158) |
Net of tax | (328) | 323 |
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss | Foreign Exchange Contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue and Cost of revenue | (511) | 143 |
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 | $ 167 | $ 338 |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Earnings Per Common Share (Detail) - shares shares in Thousands | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Earnings Per Share Disclosure [Line Items] | |||
Weighted average basic common shares outstanding | [1] | 29,332 | 29,097 |
Dilutive effect of performance based restricted stock units | [2] | 33 | 57 |
Weighted average diluted common shares outstanding | 32,696 | 32,412 | |
2018 Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Dilutive effect of convertible notes | [3] | 3,331 | 3,258 |
[1] | Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. | ||
[2] | Restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. | ||
[3] | The dilutive effect of the 2018 Convertible notes was included as they were considered dilutive under the "if converted" method as further discussed below. |
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 | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net earnings attributable to Greenbrier | $ 26,253 | $ 24,962 | |
Earnings before interest and debt issuance costs on convertible notes | $ 26,986 | $ 25,695 | |
Weighted average diluted common shares outstanding | 32,696 | 32,412 | |
Diluted earnings per share | [1] | $ 0.83 | $ 0.79 |
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 | $ 733 | $ 733 | |
[1] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs (net of tax) on convertible notes Weighted average diluted common shares outstanding |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $ 5,939 | $ 5,343 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 3 Months Ended |
Nov. 30, 2017USD ($) | |
Foreign Exchange Contracts | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 243,500,000 |
Amount reclassified to revenue or cost of revenue in the next 12 months | 600,000 |
Interest rate swap contracts | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 87,800,000 |
Maturity date | 2020-03 |
Unrealized pre-tax gain (loss) that would be reclassified to interest expense in the next 12 months | $ 600,000 |
Fair Values of Derivative Instr
Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 1,735 | $ 2,341 |
Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1,421 | 2,886 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 1,735 | 2,341 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1,194 | 1,761 |
Designated as Hedging Instrument | Interest rate swap contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 227 | 1,125 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 2,018 | $ 1,473 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 5 |
Effect of Derivative Instrument
Effect of Derivative Instruments on Statements of Income (Detail) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) recognized in income on derivatives | $ 363 | $ 85 |
Gain (loss) recognized in OCI on derivatives (effective portion) | 1,147 | (6,144) |
Gain (loss) reclassified accumulated OCI income (effective portion) | 344 | (481) |
Gain (loss) recognized on derivative (ineffective portion and amount excluded from effectiveness testing) | 138 | (1,290) |
Foreign Exchange Forward | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives (effective portion) | 730 | (6,456) |
Foreign Exchange Forward | Interest and Foreign Exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) recognized in income on derivatives | 380 | 47 |
Foreign Exchange Forward | Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) reclassified accumulated OCI income (effective portion) | 710 | (87) |
Gain (loss) recognized on derivative (ineffective portion and amount excluded from effectiveness testing) | 56 | (1,258) |
Foreign Exchange Forward | Cost Of Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives (effective portion) | (354) | (834) |
Gain (loss) reclassified accumulated OCI income (effective portion) | (199) | (56) |
Gain (loss) recognized on derivative (ineffective portion and amount excluded from effectiveness testing) | 82 | (32) |
Interest rate swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives (effective portion) | 771 | 1,146 |
Interest rate swap contracts | Interest and Foreign Exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) recognized in income on derivatives | (17) | 38 |
Gain (loss) reclassified accumulated OCI income (effective portion) | $ (167) | $ (338) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Nov. 30, 2017Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
Segments Internal Financial Rep
Segments Internal Financial Reports (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Aug. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 559,535 | $ 552,314 | |
Earnings (loss) from operations | 61,442 | 72,660 | |
Assets | 2,412,690 | $ 2,397,705 | |
Manufacturing | |||
Segment Reporting Information [Line Items] | |||
Revenues | 451,485 | 454,033 | |
Earnings (loss) from operations | 52,969 | 83,341 | |
Wheels & Parts | |||
Segment Reporting Information [Line Items] | |||
Revenues | 78,011 | 69,635 | |
Earnings (loss) from operations | 2,418 | 2,894 | |
Leasing & Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 30,039 | 28,646 | |
Earnings (loss) from operations | 28,190 | 7,390 | |
Operating Segments | Manufacturing | |||
Segment Reporting Information [Line Items] | |||
Revenues | 468,289 | 454,033 | |
Earnings (loss) from operations | 57,155 | 83,341 | |
Assets | 915,918 | 914,450 | |
Operating Segments | Wheels & Parts | |||
Segment Reporting Information [Line Items] | |||
Revenues | 85,743 | 76,836 | |
Earnings (loss) from operations | 3,166 | 3,506 | |
Assets | 262,349 | 236,315 | |
Operating Segments | Leasing & Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 31,644 | 33,980 | |
Earnings (loss) from operations | 29,562 | 12,640 | |
Assets | 535,847 | 535,323 | |
Operating Segments | Unallocated Amount to Segment | |||
Segment Reporting Information [Line Items] | |||
Assets | 698,576 | $ 711,617 | |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Earnings (loss) from operations | (22,135) | (20,965) | |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (26,141) | (12,535) | |
Earnings (loss) from operations | (6,306) | (5,862) | |
Intersegment Eliminations | Manufacturing | |||
Segment Reporting Information [Line Items] | |||
Revenues | (16,804) | ||
Earnings (loss) from operations | (4,186) | ||
Intersegment Eliminations | Wheels & Parts | |||
Segment Reporting Information [Line Items] | |||
Revenues | (7,732) | (7,201) | |
Earnings (loss) from operations | (748) | (612) | |
Intersegment Eliminations | Leasing & Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | (1,605) | (5,334) | |
Earnings (loss) from operations | $ (1,372) | $ (5,250) |
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 | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Earnings from operations | $ 61,442 | $ 72,660 |
Interest and foreign exchange | 7,020 | 1,724 |
Earnings before income tax and earnings (loss) from unconsolidated affiliates | $ 54,422 | $ 70,936 |
Results of Operations for GBW J
Results of Operations for GBW Joint Venture (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Nov. 30, 2017 | Nov. 30, 2016 | Aug. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 559,535 | $ 552,314 | ||
Loss from operations | 61,442 | 72,660 | ||
Assets | 2,412,690 | $ 2,397,705 | ||
GBW Railcar Services LLC | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 58,000 | 70,253 | ||
Loss from operations | (5,744) | $ (4,561) | ||
Assets | [1] | $ 204,288 | $ 206,009 | |
[1] | Includes goodwill and intangible assets of $78.1 million and $78.8 million as of November 30, 2017 and August 31, 2017. |
Results of Operations for GBW56
Results of Operations for GBW Joint Venture (Parenthetical) (Detail) - USD ($) $ in Millions | Nov. 30, 2017 | Aug. 31, 2017 |
GBW Railcar Services LLC | ||
Segment Reporting Information [Line Items] | ||
Goodwill and intangible assets | $ 78.1 | $ 78.8 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jun. 30, 2017USD ($) | Jan. 06, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Nov. 30, 2017USD ($) | Nov. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |||||
Remedial investigation and feasibility study | $ 110,000,000 | ||||
Equity method investment, percentage of ownership interest | 50.00% | ||||
Note receivable | $ 36,500,000 | ||||
Performance Guarantee | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Letter of credit facility outstanding amount | $ 75,400,000 | ||||
Portland Harbor Site | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of sediment decision units | Segment | 13 | ||||
Estimated undiscounted cost | $ 1,700,000,000 | ||||
Period for remedial action | 13 years | ||||
Period for monitoring | 30 years | ||||
New data collection period to reflect actual cost prior to final remedy design | 2 years | ||||
Portland Harbor Site | Minimum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Accuracy of cost estimate | (30.00%) | ||||
Portland Harbor Site | Maximum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Accuracy of cost estimate | 50.00% | ||||
GBW Railcar Services LLC | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Equity method investment, percentage of ownership interest | 50.00% | ||||
Amsted-Maxion Cruzeiro | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Note receivable | $ 10,000,000 | ||||
Greenbrier-Maxion | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Note receivable | $ 9,200,000 | ||||
Pending Litigation | Commercial Litigation in a Foreign Jurisdictions | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Adverse judgment | $ 15,000,000 | ||||
Adverse judgment | $ 10,000,000 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 | |
Assets: | |||
Nonqualified savings plan investments | $ 23,694 | $ 20,974 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | 3,753 | 3,814 | |
Nonqualified savings plan investments | 23,694 | 20,974 | |
Cash equivalents | 105,563 | 105,337 | |
Assets, Fair Value Disclosure, Total | 133,010 | 130,125 | |
Liabilities: | |||
Derivative financial instruments | 1,426 | 2,886 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Nonqualified savings plan investments | 23,694 | 20,974 | |
Cash equivalents | 105,563 | 105,337 | |
Assets, Fair Value Disclosure, Total | 129,257 | 126,311 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | 3,753 | [1] | 3,814 |
Assets, Fair Value Disclosure, Total | 3,753 | [1] | 3,814 |
Liabilities: | |||
Derivative financial instruments | $ 1,426 | [1] | $ 2,886 |
[1] | Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 11 Derivative Instruments for further discussion. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2017 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||
Equity method investment, percentage of ownership interest | 50.00% | |
Carrying amount of investment in unconsolidated affiliates | $ 7.2 | |
Percentage of recognized revenue and margin from sale | 60.00% | |
Percentage of deferred revenue and margin from sale | 40.00% | |
Revenue recognize from railcars sold | $ 8 | |
Leasing Warehouse [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue recognize from railcars sold | $ 16 | |
Greenbrier | ||
Related Party Transaction [Line Items] | ||
Equity method investment, percentage of ownership interest | 40.00% |