Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Aug. 31, 2019 | Oct. 22, 2019 | Feb. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | GREENBRIER COMPANIES INC | ||
Trading Symbol | GBX | ||
Entity Central Index Key | 0000923120 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NYSE | ||
Entity Address, State or Province | OR | ||
Entity Common Stock, Shares Outstanding | 32,487,615 | ||
Entity Public Float | $ 1,311,532,035 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 329,684 | $ 530,655 |
Restricted cash | 8,803 | 8,819 |
Accounts receivable, net | 373,383 | 348,406 |
Inventories | 664,693 | 432,314 |
Leased railcars for syndication | 182,269 | 130,926 |
Equipment on operating leases, net | 366,688 | 322,855 |
Property, plant and equipment, net | 717,973 | 457,196 |
Investment in unconsolidated affiliates | 91,818 | 61,414 |
Intangibles and other assets, net | 125,379 | 94,668 |
Goodwill | 129,947 | 78,211 |
Total assets | 2,990,637 | 2,465,464 |
Liabilities and Equity | ||
Revolving notes | 27,115 | 27,725 |
Accounts payable and accrued liabilities | 568,360 | 449,857 |
Deferred income taxes | 13,946 | 31,740 |
Deferred revenue | 85,070 | 105,954 |
Notes payable, net | 822,885 | 436,205 |
Commitments and contingencies (Notes 22 & 23) | ||
Contingently redeemable noncontrolling interest | 31,564 | 29,768 |
Greenbrier | ||
Preferred stock - without par value; 25,000 shares authorized; none outstanding | ||
Common stock - without par value; 50,000 shares authorized; 32,488 and 32,191 outstanding at August 31, 2019 and 2018 | ||
Additional paid-in capital | 453,943 | 442,569 |
Retained earnings | 867,602 | 830,898 |
Accumulated other comprehensive loss | (44,815) | (23,366) |
Total equity - Greenbrier | 1,276,730 | 1,250,101 |
Noncontrolling interest | 164,967 | 134,114 |
Total equity | 1,441,697 | 1,384,215 |
Liabilities and Equity | $ 2,990,637 | $ 2,465,464 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Preferred stock, without par value | ||
Preferred stock, shares authorized | 25,000 | 25,000 |
Preferred stock, outstanding | ||
Common stock, without par value | ||
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares outstanding | 32,488 | 32,191 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |||||
Revenue | |||||||
Revenue | $ 3,033,591 | $ 2,519,464 | $ 2,169,164 | ||||
Cost of revenue | |||||||
Cost of revenue | 2,667,105 | 2,110,409 | 1,747,865 | ||||
Margin | 366,486 | 409,055 | 421,299 | ||||
Selling and administrative | 213,308 | 200,439 | 170,607 | ||||
Net gain on disposition of equipment | (40,963) | (44,369) | (9,740) | ||||
Goodwill impairment | 10,025 | ||||||
Earnings from operations | 184,116 | 252,985 | 260,432 | ||||
Other costs | |||||||
Interest and foreign exchange | 30,912 | 29,368 | 24,192 | ||||
Earnings before income tax and loss from unconsolidated affiliates | 153,204 | 223,617 | 236,240 | ||||
Income tax expense | (41,588) | (32,893) | (64,014) | ||||
Earnings before loss from unconsolidated affiliates | 111,616 | 190,724 | 172,226 | ||||
Loss from unconsolidated affiliates | (5,805) | (18,661) | (11,764) | ||||
Net earnings | 105,811 | 172,063 | 160,462 | ||||
Net earnings attributable to noncontrolling interest | (34,735) | (20,282) | (44,395) | ||||
Net earnings attributable to Greenbrier | $ 71,076 | $ 151,781 | $ 116,067 | ||||
Basic earnings per common share | $ 2.18 | [1] | $ 4.92 | [2] | $ 3.97 | [1] | |
Diluted earnings per common share | [3] | $ 2.14 | $ 4.68 | $ 3.65 | |||
Weighted average common shares: | |||||||
Basic | [4] | 32,615 | 30,857 | 29,225 | |||
Diluted | 33,165 | 32,835 | 32,562 | ||||
Dividends declared per common share | $ 1 | $ 0.96 | $ 0.86 | ||||
Manufacturing | |||||||
Revenue | |||||||
Revenue | $ 2,431,499 | $ 2,044,586 | $ 1,725,188 | ||||
Cost of revenue | |||||||
Cost of revenue | 2,137,625 | 1,727,407 | 1,373,967 | ||||
Earnings from operations | 217,583 | 240,901 | 295,334 | ||||
Wheels, Repair & Parts | |||||||
Revenue | |||||||
Revenue | 444,502 | 347,023 | 312,679 | ||||
Cost of revenue | |||||||
Cost of revenue | 420,890 | 318,330 | 288,336 | ||||
Earnings from operations | (2,941) | 16,731 | 14,984 | ||||
Leasing & Services | |||||||
Revenue | |||||||
Revenue | 157,590 | 127,855 | 131,297 | ||||
Cost of revenue | |||||||
Cost of revenue | 108,590 | 64,672 | 85,562 | ||||
Earnings from operations | $ 64,763 | $ 88,481 | $ 31,904 | ||||
[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 2024 Convertible Notes using the treasury stock method when dilutive, restricted stock units that are not considered participating securities, restricted stock units that are subject to performance criteria for which actual levels of performance above target have been achieved and the dilutive effect of shares underlying the 2018 Convertible Notes, during the periods in which they were outstanding, using the “if converted” method in which debt issuance and interest costs, net of tax, were added back to net earnings. The 2018 Convertible notes matured on April 1, 2018. | ||||||
[2] | Quarterly amounts do not total to the year to date amount as each period is calculated discretely. 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 2.875% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 3.5% Convertible notes during the periods in which they were outstanding. 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 3.5% 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. | ||||||
[3] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on the 3.5% convertible notes Weighted average diluted common shares outstanding | ||||||
[4] | Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. No restricted stock and restricted stock units were anti-dilutive for the years ended August 31, 2019, 2018 and 2017. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | ||
Net earnings | $ 105,811 | $ 172,063 | $ 160,462 | |
Other comprehensive income (loss) | ||||
Translation adjustment | (12,725) | (16,159) | 15,488 | |
Reclassification of derivative financial instruments recognized in net earnings | [1] | 1,854 | (415) | 3,729 |
Unrealized gain (loss) on derivative financial instruments | [2] | (10,264) | (197) | 1,944 |
Other (net of tax effect) | (351) | (335) | (665) | |
Other comprehensive income | (21,486) | (17,106) | 20,496 | |
Comprehensive income | 84,325 | 154,957 | 180,958 | |
Comprehensive income attributable to noncontrolling interest | (34,698) | (20,263) | (44,417) | |
Comprehensive income attributable to Greenbrier | $ 49,627 | $ 134,694 | $ 136,541 | |
[1] | Net of tax effect of $0.5 million, $3 thousand and $1.0 million for the years ended August 31, 2019, 2018 and 2017 | |||
[2] | Net of tax effect of $2.9 million, $0.1 million and $0.8 million for the years ended August 31, 2019, 2018 and 2017 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Reclassification of derivative financial instruments recognized in net earnings (loss), tax | $ 0.5 | $ 0 | $ 1 |
Unrealized gain (loss) on derivative financial instruments, tax | $ (2.9) | $ (0.1) | $ 0.8 |
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 | Additional Paid-in Capital2024 Convertible Senior Notes | Additional Paid-in Capital2024 Convertible Senior Notes Issuance Costs | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity - Greenbrier | Total Equity - Greenbrier2024 Convertible Senior Notes | Total Equity - Greenbrier2024 Convertible Senior Notes Issuance Costs | Noncontrolling Interest | Equity Excluding Contingently Redeemable Noncontrolling Interest | Equity Excluding Contingently Redeemable Noncontrolling Interest2024 Convertible Senior Notes | Equity Excluding Contingently Redeemable Noncontrolling Interest2024 Convertible Senior Notes Issuance Costs |
Beginning balance at Aug. 31, 2016 | $ 0 | ||||||||||||||
Net earnings | (2,140) | ||||||||||||||
Ending Balance at Aug. 31, 2017 | 36,148 | ||||||||||||||
Beginning balance (in shares) at Aug. 31, 2016 | 28,205 | ||||||||||||||
Beginning balance at Aug. 31, 2016 | $ 282,886 | $ 618,178 | $ (26,753) | $ 874,311 | $ 142,516 | $ 1,016,827 | |||||||||
Net earnings | $ 160,462 | 116,067 | 116,067 | 46,535 | 162,602 | ||||||||||
Contingently redeemable noncontrolling interest | 38,288 | ||||||||||||||
Other comprehensive income (loss), net | 20,496 | 20,474 | 20,474 | 22 | 20,496 | ||||||||||
Noncontrolling interest adjustments | (677) | (677) | |||||||||||||
Joint venture partner distribution declared | (28,027) | (28,027) | |||||||||||||
Noncontrolling interest acquired | 394 | 394 | |||||||||||||
Restricted stock awards (net of cancellations) (in shares) | 298 | ||||||||||||||
Restricted stock awards (net of cancellations) | 5,520 | 5,520 | 5,520 | ||||||||||||
Unamortized restricted stock | (10,734) | (10,734) | (10,734) | ||||||||||||
Restricted stock amortization | 19,826 | 19,826 | 19,826 | ||||||||||||
Tax deficiency from restricted stock awards | (2,339) | (2,339) | (2,339) | ||||||||||||
Cash dividends | (25,142) | (25,142) | (25,142) | ||||||||||||
2024 Convertible Senior Notes - equity component, net of tax | $ 20,818 | $ (671) | $ 20,818 | $ (671) | $ 20,818 | $ (671) | |||||||||
Ending Balance (in shares) at Aug. 31, 2017 | 28,503 | ||||||||||||||
Ending Balance at Aug. 31, 2017 | 315,306 | 709,103 | (6,279) | 1,018,130 | 160,763 | 1,178,893 | |||||||||
Net earnings | (6,380) | ||||||||||||||
Ending Balance at Aug. 31, 2018 | 29,768 | ||||||||||||||
Net earnings | 172,063 | 151,781 | 151,781 | 26,662 | 178,443 | ||||||||||
Other comprehensive income (loss), net | $ (17,106) | (17,087) | (17,087) | (19) | (17,106) | ||||||||||
Noncontrolling interest adjustments | 2,864 | 2,864 | |||||||||||||
Joint venture partner distribution declared | (62,649) | (62,649) | |||||||||||||
Investment by joint venture partner | 6,500 | 6,500 | |||||||||||||
Noncontrolling interest acquired | (7) | (7) | |||||||||||||
Restricted stock awards (net of cancellations) (in shares) | 336 | ||||||||||||||
Restricted stock awards (net of cancellations) | 7,334 | 7,334 | 7,334 | ||||||||||||
Unamortized restricted stock | (15,058) | (15,058) | (15,058) | ||||||||||||
Restricted stock amortization | 16,100 | 16,100 | 16,100 | ||||||||||||
Cash dividends | (29,986) | (29,986) | (29,986) | ||||||||||||
Conversion of 3.5% 2018 Convertible Senior Notes (in shares) | 3,352 | ||||||||||||||
Conversion of 3.5% 2018 Convertible Senior Notes | 118,887 | 118,887 | 118,887 | ||||||||||||
Ending Balance (in shares) at Aug. 31, 2018 | 32,191 | 32,191 | |||||||||||||
Ending Balance at Aug. 31, 2018 | $ 1,384,215 | 442,569 | 830,898 | (23,366) | 1,250,101 | 134,114 | 1,384,215 | ||||||||
Net earnings | (4,863) | ||||||||||||||
Ending Balance at Aug. 31, 2019 | 31,564 | ||||||||||||||
Cumulative effect adjustment due to adoption of ASU 2014-09 (See Note 2) at Aug. 31, 2018 | 5,461 | 5,461 | 5,461 | ||||||||||||
Net earnings | 105,811 | 71,076 | 71,076 | 39,598 | 110,674 | ||||||||||
Other comprehensive income (loss), net | $ (21,486) | (21,449) | (21,449) | (37) | (21,486) | ||||||||||
Noncontrolling interest adjustments | $ 6,659 | (6,659) | (6,659) | 7,402 | 743 | ||||||||||
Joint venture partner distribution declared | (18,025) | (18,025) | |||||||||||||
Noncontrolling interest acquired | 1,915 | 1,915 | |||||||||||||
Restricted stock awards (net of cancellations) (in shares) | 297 | ||||||||||||||
Restricted stock awards (net of cancellations) | 12,077 | 12,077 | 12,077 | ||||||||||||
Unamortized restricted stock | (16,801) | (16,801) | (16,801) | ||||||||||||
Restricted stock amortization | 12,321 | 12,321 | 12,321 | ||||||||||||
Cash dividends | (33,174) | (33,174) | (33,174) | ||||||||||||
2024 Convertible Senior Notes - equity component, net of tax | $ 3,777 | $ 3,777 | $ 3,777 | ||||||||||||
Ending Balance (in shares) at Aug. 31, 2019 | 32,488 | 32,488 | |||||||||||||
Ending Balance at Aug. 31, 2019 | $ 1,441,697 | $ 453,943 | $ 867,602 | $ (44,815) | $ 1,276,730 | $ 164,967 | $ 1,441,697 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Cash dividend per share | $ 1 | $ 0.96 | $ 0.86 |
2018 Convertible Senior Notes | |||
Debt instrument, interest rate | 3.50% | ||
2024 Convertible Senior Notes | |||
Debt instrument, interest rate | 2.25% | 2.875% | |
2024 Convertible Senior Notes Issuance Costs | |||
Debt instrument, interest rate | 2.875% | ||
Equity Excluding Contingently Redeemable Noncontrolling Interest [Member] | |||
Cash dividend per share | $ 1 | $ 0.96 | $ 0.86 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Cash flows from operating activities: | |||
Net earnings | $ 105,811 | $ 172,063 | $ 160,462 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Deferred income taxes | (20,225) | (40,496) | 4,377 |
Depreciation and amortization | 83,731 | 74,356 | 65,129 |
Net gain on disposition of equipment | (40,963) | (44,369) | (9,740) |
Stock based compensation expense | 11,153 | 29,314 | 26,427 |
Accretion of debt discount | 4,458 | 4,171 | 2,340 |
Noncontrolling interest adjustments | 7,402 | 2,864 | (677) |
Goodwill impairment | 10,025 | ||
Other | 145 | 1,688 | (845) |
Decrease (increase) in assets: | |||
Accounts receivable, net | 13,022 | (83,551) | (25,272) |
Inventories | (143,168) | (26,592) | (2,787) |
Leased railcars for syndication | (96,110) | (54,023) | 41,015 |
Other | 6,843 | 34,115 | 17,558 |
Increase (decrease) in liabilities: | |||
Accounts payable and accrued liabilities | 55,910 | 54,032 | (25,422) |
Deferred revenue | (19,275) | (20,231) | 33,039 |
Net cash provided by (used in) operating activities | (21,241) | 103,341 | 285,604 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | (361,878) | (34,874) | (27,127) |
Proceeds from sales of assets | 125,427 | 153,224 | 24,149 |
Capital expenditures | (198,233) | (176,848) | (86,065) |
Investment in and advances to unconsolidated affiliates | (11,393) | (26,455) | (40,632) |
Cash distribution from joint ventures | 2,096 | 4,661 | 550 |
Net cash used in investing activities | (443,981) | (80,292) | (129,125) |
Cash flows from financing activities | |||
Net changes in revolving notes with maturities of 90 days or less | (105) | 23,401 | 4,324 |
Proceeds from issuance of notes payable | 525,000 | 13,771 | 276,093 |
Repayments of notes payable | (182,971) | (22,269) | (8,297) |
Debt issuance costs | (8,630) | (9,082) | |
Dividends | (33,193) | (29,914) | (24,890) |
Cash distribution to joint venture partner | (16,879) | (73,033) | (28,511) |
Investment by joint venture partner | 6,500 | ||
Tax payments for net share settlement of restricted stock | (6,321) | (7,723) | (5,215) |
Net cash provided by (used in) financing activities | 276,901 | (89,267) | 204,422 |
Effect of exchange rate changes | (12,666) | (14,666) | 12,499 |
Increase (decrease) in cash and cash equivalents and restricted cash | (200,987) | (80,884) | 373,400 |
Cash and cash equivalents and restricted cash | |||
Beginning of period | 539,474 | 620,358 | 246,958 |
End of period | 338,487 | 539,474 | 620,358 |
Balance Sheet Reconciliation: | |||
Cash and cash equivalents | 329,684 | 530,655 | 611,466 |
Restricted cash | 8,803 | 8,819 | 8,892 |
Total cash and cash equivalents and restricted cash as presented above | 338,487 | 539,474 | 620,358 |
Cash paid during the period for: | |||
Interest | 18,330 | 18,878 | 13,962 |
Income taxes, net | 62,084 | 66,423 | 45,280 |
Non-cash activity | |||
Transfer from Leased railcars for syndication and Inventories to Equipment on operating leases, net | 43,845 | 20,945 | 8,668 |
Capital expenditures accrued in Accounts payable and accrued liabilities | 19,385 | 13,534 | 16,145 |
Change in Accounts payable and accrued liabilities associated with dividends declared | 19 | (72) | (252) |
Change in Accounts payable and accrued liabilities associated with cash distributions to joint venture partner | (1,146) | 14 | $ 484 |
Conversion of 3.5% Convertible notes | $ 118,887 | ||
2.25% Convertible Notes, due 2024 | |||
Non-cash activity | |||
Issuance of 2.25% Convertible notes in connection with the acquisition of the manufacturing business of ARI | $ 50,000 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Aug. 31, 2019 |
2.25% Convertible Senior Notes | |
Debt instrument, interest rate | 2.25% |
3.5% Convertible Senior Notes | |
Debt instrument, interest rate | 3.50% |
Nature of Operations
Nature of Operations | 12 Months Ended |
Aug. 31, 2019 | |
Nature of Operations | Note 1 - Nature of Operations The Company operates in three reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services. The segments are operationally integrated. The Manufacturing segment, which currently operates from facilities in the U.S., Mexico, Poland, Romania and Turkey, produces double-stack intermodal railcars, tank cars, conventional railcars, automotive railcar products and marine vessels. The Wheels, Repair & Parts segment performs wheel and axle servicing; railcar repair, refurbishment and maintenance; as well as production of a variety of parts for the rail industry in North America. The Leasing & Services segment owns approximately 9,400 railcars and provides management services for approximately 380,000 railcars for railroads, shippers, carriers, institutional investors and other leasing and transportation companies in North America as of August 31, 2019. Through unconsolidated affiliates the Company produces rail and industrial components and has an ownership stake in a railcar manufacturer in Brazil and a lease financing warehouse. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2019 | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Principles of consolidation - Unclassified balance sheet - non-current Foreign currency translation - year-end Cash and cash equivalents - Restricted cash - Accounts receivable - As of August 31, (In thousands) 2019 2018 2017 Allowance for doubtful accounts Balance at beginning of period $ 2,701 $ 1,768 $ 2,215 Additions, net of reversals 773 938 370 Usage (1,311 ) (54 ) (891 ) Currency translation effect 13 49 74 Balance at end of period $ 2,176 $ 2,701 $ 1,768 Inventories - first-in first-out Work-in-process Leased railcars for syndication - Equipment on operating leases, net - Investment in unconsolidated affiliates - Property, plant and equipment - Depreciable Life Buildings and improvements 10 – 30 years Machinery and equipment 3 – 20 years Other 3 – 7 years Goodwill - Intangibles – Goodwill and Other Intangible and other assets, net - Impairment of long-lived assets - Warranty accruals - Income taxes - Deferred revenue Noncontrolling interest and Contingently redeemable noncontrolling interest - Greenbrier-Astra Rail was formed in 2017 between the Company’s existing European operations headquartered in Swidnica, Poland and Astra Rail, based in Arad, Romania. Greenbrier-Astra Rail is controlled by the Company with an approximate 75% interest. The Company consolidates Greenbrier-Astra Rail for financial reporting purposes and includes the noncontrolling interest in the mezzanine section of the Consolidated Balance Sheet in Contingently redeemable noncontrolling interest (see Note 4 – Acquisitions). In August 2018, Greenbrier-Astra Rail entered into an agreement to take an approximately 68% ownership stake in Rayvag, a railcar manufacturing company based in Adana, Turkey. Rayvag is controlled by the Company. The Company consolidates Rayvag for financial reporting purposes. The noncontrolling interest related to the partner’s interest is included in Noncontrolling interest in the equity section of the Company’s Consolidated Balance Sheet. The Company has a joint venture with Summit Railroad Products, Inc. to provide axle services. Each party owns a 50% interest in the joint venture. The financial results of this operation are consolidated for financial reporting purposes as the Company has the power to direct the activities which most significantly impact the economic performance of the entity. The noncontrolling interest related to the partner’s 50% interest in the joint venture is included in Noncontrolling interest in the equity section of the Company’s Consolidated Balance Sheet. Net earnings attributable to noncontrolling interest on the Company’s Consolidated Statement of Income represents the Company’s partners’ share of results from operations. Accumulated other comprehensive loss - (In thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Other Accumulated Other Comprehensive Loss Balance, August 31, 2018 $ (431 ) $ (21,506 ) $ (1,429 ) $ (23,366 ) Other comprehensive loss before reclassifications (10,264 ) (12,688 ) (351 ) $ (23,303 ) Amounts reclassified from accumulated other comprehensive loss 1,854 – – $ 1,854 Balance, August 31, 2019 $ (8,841 ) $ (34,194 ) $ (1,780 ) $ (44,815 ) The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with the financial statement caption, were as follows: Year Ended August 31, Financial Statement Caption (In thousands) 2019 2018 (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 1,794 $ (716 ) Revenue and Cost of revenue Interest rate swap contracts 545 298 Interest and foreign exchange 2,339 (418 ) Total before tax (485 ) 3 Tax benefit (expense) $ 1,854 $ (415 ) Net of tax Revenue recognition - Manufacturing Railcars are manufactured in accordance with contracts with customers. The Company recognizes revenue upon its customers’ acceptance of the completed railcars at a specified delivery point. From time to time, the Company enters into multi-year supply agreements. Each railcar delivery is considered a distinct performance obligation, such that the amounts that are recognized as revenue following railcar delivery are generally not subject to change. The Company typically recognizes marine vessel manufacturing revenue over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts the Company’s performance in completing the construction of the marine vessel for the customer and is consistent with the percentage of completion method used prior to the adoption of the new revenue standard. Wheels, Repair & Parts The Company operates a network of wheel, repair and parts shops in North America that provide complete wheelset reconditioning and railcar repair services. Wheels revenue is recognized when wheelsets are shipped to the customer or when consumed by customers in the case of consignment arrangements. Parts revenue is recognized upon shipment of the parts to the customers. Repair revenue is typically recognized over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts the Company’s performance in repairing the railcars for the customer. Repair services are typically completed in less than 90 days. Leasing & Services The Company owns a fleet of new and used cars which are leased to third-party customers. Lease revenue is recognized over the lease-term in the period in which it is earned in accordance with ASC 840 Leases Syndication transactions represent new and used railcars which have been placed on lease to a customer and which the Company intends to sell to an investor with the lease attached. At the time of such sale, revenue and cost of revenue associated with railcars that the Company has manufactured are recognized in the Manufacturing segment; while revenue and cost of revenue associated with railcars which were obtained from a third-party with the intent to resell them and subsequently sold, are recognized in 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. If retained risk exceeded 10%, the transaction would not be recognized as a sale until such time as the retained risk declined to 10% or less. The Company enters into multi-year contracts to provide management and maintenance services to customers for which revenue is generally recognized on a straight-line basis over the contract term as a stand-ready obligation. Costs to fulfill these contracts are recognized as incurred. Interest and foreign exchange - (In thousands) Years ended August 31, 2019 2018 2017 Interest and foreign exchange: Interest and other expense $ 32,260 $ 30,946 $ 23,519 Foreign exchange (gain) loss (1,348 ) (1,578 ) 673 $ 30,912 $ 29,368 $ 24,192 Forward exchange contracts - non-performance. Interest rate instruments - Research and development - 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 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance-based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 3.5% Convertible notes during the periods in which they were outstanding. 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 3.5% 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. Stock-based compensation - Restricted stock units and restricted stock awards are accounted for as equity based awards (see Note 16 – Equity). Phantom stock units are accounted for as liability based awards. Phantom Stock Units The Company began granting phantom stock units during the year ended August 31, 2016. Every phantom stock unit entitles the participant to receive a cash payment equal to the value of a single share of the Company’s common stock upon vesting. The holders of unvested phantom stock units are entitled to participate in dividend equivalents. There were no phantom stock units awarded during the years ended August 31, 2019 and 2018. During the year ended August 31, 2017, the Company awarded 151,634 phantom stock units which include performance-based grants. As of August 31, 2019, there were a total of 72,144 phantom stock units associated with unvested performance-based grants. The actual number of phantom stock units that will vest associated with performance-based phantom stock units will vary depending on the Company’s performance. An additional 72,144 phantom stock units, associated with awards granted in 2017, may be granted if performance-based phantom stock units vest at stretch levels of performance. The grant date fair value of phantom stock awards was $6.7 million for the year ended August 31, 2017. Our phantom stock unit grants are considered liability based awards and therefore are re-measured re-measurement Management estimates Reclassifications Initial Adoption of Accounting Policies Revenue Recognition In the first quarter of 2019, the Company adopted Accounting Standard Update 2014-09, Revenue from Contracts with Customers 2014-09). Restricted Cash In the first quarter of 2019, the Company adopted Accounting Standard Update 2016-18, Restricted Cash 2016-18). beginning-of-period end-of-period 2016-18 Prospective Accounting Changes Lease Accounting In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases 2016-02). 2016-02 right-of-use 2016-02 2018-11, Leases The Company evaluated the transition and presentation approaches available as well as the impact of the new guidance on its consolidated financial statements and related disclosures, including the increase in the assets and liabilities on its balance sheet, and the impact on its current lease portfolio from both a lessor and lessee perspective. To facilitate this, the Company utilized a comprehensive approach to review its lease portfolio, as well as assessed system requirements and control implications. The new guidance provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients,” which allows it not to reassess under the new guidance their prior conclusions about lease identification and initial direct costs. The Company did not elect the use-of-hindsight non-lease right-of-use The most significant effects of adoption relate to the recognition of a right-of-use right-of-use Derivatives and Hedging 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 Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued Accounting Standard Update 2016-13, Financial Instruments – Credit Losses 2016-13). off-balance |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Aug. 31, 2019 | |
Revenue Recognition | Note 3 - Revenue Recognition Contract balances Contract assets primarily consist of unbilled receivables related to marine vessel construction and repair services, for which the respective contracts do not yet permit billing at the reporting date. Contract liabilities primarily consist of customer prepayments for manufacturing, maintenance, and other management-type services, for which the Company has not yet satisfied the related performance obligations. The opening and closing balances of the Company’s contract balances are as follows: (in thousands) Balance sheet classification September 1, 2018 August 31, 2019 $ change Contract assets Inventories $ 7,228 $ 10,196 $ 2,968 Contract liabilities 1 Deferred revenue $ 41,250 $ 39,203 $ (2,047 ) 1 Contract liabilities balance includes deferred revenue within the scope of the new revenue standard. For the year ended August 31, 2019, the Company recognized $11.3 million of revenue that was included in Contract liabilities as of September 1, 2018. Performance obligations As of August 31, 2019, the Company has entered into contracts with customers for which revenue has not yet been recognized. The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods. (in millions) August 31, 2019 Revenue type : Manufacturing – Railcar sales $ 2,897.9 Manufacturing – Marine $ 100.2 Services $ 153.0 Other $ 42.1 Manufacturing – Railcars intended for syndication 1 $ 317.2 1 Not a performance obligation as defined in the new revenue standard and therefore not subject to audit Based on current production and delivery schedules and existing contracts, approximately $1.9 billion of the Railcar Sales amount is expected to be recognized in 2020 while the remaining amount is expected in future periods. The table above excludes estimated revenue to be recognized at the Company’s Brazilian manufacturing operation, as they are accounted for under the equity method. Revenue amounts reflected in Railcars intended for syndication may be syndicated to third parties or held in the Company’s fleet depending on a variety of factors. Marine revenue is expected to be recognized through 2021 as vessel construction is completed. Services includes management and maintenance services of which approximately 51% are expected to be performed through 2024 and the remaining amount ratably through 2037. |
Acquisitions
Acquisitions | 12 Months Ended |
Aug. 31, 2019 | |
Acquisitions | Note 4 - Acquisitions Manufacturing business of American Railcar Industries, Inc. (ARI) On July 26, 2019, the Company completed its acquisition of the manufacturing business of ARI for a purchase price of approximately $418.3 million. In connection with the acquisition, the Company acquired two railcar manufacturing facilities in Arkansas, as well as other facilities which produce a range of railcar components and parts and create enhanced vertical integration for our manufacturing operations. The purchase price includes approximately $8.0 million for capital expenditures on railcar lining operations and other facility improvements. Included in the acquisition were equity interests in two railcar component manufacturing businesses which Greenbrier will account for under the equity method of accounting and recognize at their respective fair value as investments in unconsolidated affiliates. The purchase price was funded by, and consisted of, a combination of cash on hand, the proceeds of a $300 million secured term loan, the issuance to the seller of a $50 million senior convertible note and a payable to the seller for a working capital true-up For the year ended August 31, 2019, the operations contributed by ARI’s manufacturing business generated revenues of $43.0 million and a loss from operations of $1.6 million, which are reported in the Company’s consolidated financial statements as part of the Manufacturing segment. The preliminary purchase price of the net assets acquired from ARI was allocated as follows: (in thousands) Accounts receivable, net $ 28,257 Inventories 98,227 Property, plant and equipment, net 225,045 Investments in unconsolidated affiliates 40,314 Intangibles and other assets, net 36,785 Goodwill 56,816 Total assets acquired 485,444 Total liabilities assumed 67,174 Net assets acquired $ 418,270 The above purchase price allocation, including the residual amount allocated to goodwill, are based on preliminary information and is subject to change as additional information is obtained related to the amounts allocated to the assets acquired and liabilities assumed. As a result of the proximity of the acquisition date to August 31, 2019 and as we did not acquire 100% of ARI, the amounts of all assets acquired and liabilities assumed are preliminary. During the measurement period, which may extend up to 12 months after the date of acquisition, the Company will adjust these assets and liabilities if new information is obtained about the facts and circumstances that existed as of the acquisition date and revised amounts will be recorded as of that date. The effect of measurement period adjustments to the estimated amounts will be reflected on a prospective basis. The identified intangible assets assumed in the acquisition were recognized as follows: (In thousands) Fair value Weighted average Trademarks and patents $ 19,500 9 Customer and supplier relationships 16,071 7 Identified intangible assets subject to amortization 35,571 Other identified intangible assets not subject to amortization 860 Total identified intangible assets $ 36,431 In accordance with ASC 805, the following unaudited pro forma financial information summarizes the combined operating results of Greenbrier and ARI’s manufacturing business as if the acquisition of ARI’s manufacturing business occurred on September 1, 2017. In addition, this pro forma financial information includes acquisition-related adjustments including depreciation expense to reflect the increased fair value of property, plant and equipment, amortization expense related to identified intangible assets, interest expense on the $50 million convertible senior note and $300 million senior term debt issued, and the related income tax effects. This pro forma financial information is presented for informational purposes only and does not include adjustments relating to the Company’s expected cost-savings and other synergies, and as such, is not indicative of the results of operations that would have been achieved if the acquisition had occurred on September 1, 2017 or of results that may occur in the future. As of August 31, (In thousands, except per share amounts) 2019 2018 Revenue $ 3,462,255 $ 2,893,400 Net earnings attributable to Greenbrier $ 57,284 $ 137,399 Basic earnings per common share $ 1.76 $ 4.45 Diluted earnings per common share $ 1.73 $ 4.25 GBW On August 20, 2018, the Company entered into a dissolution agreement with Watco Companies, LLC, its previous joint venture partner, to discontinue their GBW Railcar Services railcar repair joint venture. Pursuant to the dissolution agreement, previously operated Greenbrier repair shops and associated employees returned to the Company. Additionally, the dissolution agreement provides that certain agreements entered into in connection with the original creation of GBW in 2014 were terminated as of the transaction date, including the leases of real and personal property, service agreements, and certain employment-related agreements. As the assets received and liabilities assumed from GBW meet the definition of a business, the Company has accounted for this transaction as a business combination. The total net assets acquired were approximately $57.6 million. Additionally, the Company removed the book value of its remaining equity method investment in, and note receivable due from, the joint venture. For the year ended August 31, 2019, the Repair operations generated consolidated revenues of $87.5 million and a loss from operations of $24.9 million, which are reported in the Company’s consolidated financial statements as part of the Wheels, Repair & Parts segment. This loss from operations includes $10.0 million of non-cash Greenbrier Astra Rail On June 1, 2017, Greenbrier and Astra Holding GmbH (Astra) contributed its European operations to a newly formed company, Greenbrier-Astra Rail (GAR), 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, an additional €30 million which was paid on June 1, 2018 and issue an approximate 25% noncontrolling interest in the new company. The total net assets acquired of $115.8 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. For the year ended August 31, 2019 and 2018, the European operations contributed by Astra generated revenues of $150.3 million and $136.8 million, respectively, and a loss from operations of $19.4 million and $11.5 million, respectively, which are reported in the Company’s consolidated financial statements as part of the Manufacturing segment. The purchase price of the net assets acquired from Astra was allocated as follows: (in thousands) Cash and cash equivalents $ 6,562 Accounts receivable, net 10,984 Inventories 30,454 Property, plant and equipment, net 75,296 Intangibles and other assets, net 17,300 Goodwill 25,746 Total assets acquired 166,342 Accounts payable and accrued liabilities 17,879 Deferred income taxes 7,292 Deferred revenue 964 Notes payable, net 24,382 Total liabilities assumed 50,517 Net assets acquired $ 115,825 On August 2, 2018, GAR entered in to an agreement with Rayvag Vagon Sanavi ve Ticaret A.S. (Rayvag) to take an approximately 68% ownership stake in Rayvag. Rayvag is a railcar manufacturer and provider of railcar repair and parts services based in Adana, Turkey. The amount paid to acquire the 68% ownership stake in Rayvag was not material to the Company’s consolidated financial statements. |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2019 | |
Inventories | Note 5 - Inventories As of August 31, (In thousands) 2019 2018 Manufacturing supplies and raw materials $ 387,015 $ 274,938 Work-in-process 156,614 105,021 Finished goods 130,576 57,969 Excess and obsolete adjustment (9,512 ) (5,614 ) $ 664,693 $ 432,314 As of August 31, (In thousands) 2019 2018 2017 Excess and obsolete adjustment Balance at beginning of period $ 5,614 $ 4,136 $ 3,257 Charge to cost of revenue 9,734 4,023 2,781 Disposition of inventory (5,651 ) (2,455 ) (2,003 ) Currency translation effect (185 ) (90 ) 101 Balance at end of period $ 9,512 $ 5,614 $ 4,136 |
Equipment on Operating Leases,
Equipment on Operating Leases, net | 12 Months Ended |
Aug. 31, 2019 | |
Equipment on Operating Leases, net | Note 6 - Equipment on Operating Leases, net Equipment on operating leases is reported net of accumulated depreciation of $44.2 million and $64.9 million as of August 31, 2019 and 2018, respectively. Depreciation expense was $13.3 million, $11.2 million and $12.1 million as of August 31, 2019, 2018 and 2017, respectively. In addition, certain railcar equipment leased-in by the Company on operating leases (see Note 22 – 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, 2020 $ 23,490 2021 20,076 2022 17,949 2023 13,717 2024 9,450 Thereafter 5,583 $ 90,265 Certain equipment is also operated under daily, monthly or car hire utilization arrangements. Associated revenue amounted to $14.0 million, $12.8 million and $13.0 million for the years ended August 31, 2019, 2018 and 2017, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Aug. 31, 2019 | |
Property, Plant and Equipment, net | Note 7 - Property, Plant and Equipment, net As of August 31, (In thousands) 2019 2018 Land and improvements $ 87,872 $ 84,432 Machinery and equipment 539,952 414,865 Buildings and improvements 338,639 202,973 Construction in progress 66,744 48,406 Other 90,822 68,452 1,124,029 819,128 Accumulated depreciation (406,056 ) (361,932 ) $ 717,973 $ 457,196 Depreciation expense was $62.3 million, $54.5 million and $45.5 million for the years ended August 31, 2019, 2018 and 2017, respectively. |
Investments In Unconsolidated A
Investments In Unconsolidated Affiliates | 12 Months Ended |
Aug. 31, 2019 | |
Investments In Unconsolidated Affiliates | Note 8 - Investments In Unconsolidated Affiliates GBW The Company had a 50% ownership interest in GBW which performed railcar repair, refurbishment and maintenance until August 20, 2018, on which date the Company entered into a dissolution agreement (See Note 4 – Acquisitions). The Company accounted for its interest in GBW under the equity method of accounting. The assets and liabilities shown below as of August 31, 2019 primarily represent remaining cash and a payable to its owners, while the summarized income statement for the year ended August 31, 2019 is for GBW’s full year of activity. Summarized financial data for GBW is as follows: As of August 31, (In thousands) 2019 2018 Current assets $ 1,248 $ 8,531 Total assets $ 1,248 $ 8,531 Current liabilities $ 1,248 $ 23,283 Total liabilities $ 1,248 $ 23,283 Years ended August 31, (In thousands) 2019 2018 2017 Revenue $ 879 $ 238,033 $ 253,436 Margin $ (1,126 ) $ (6,047 ) $ (4,058 ) Net loss (1) $ (4,104 ) $ (51,679 ) $ (36,947 ) (1) In 2018 and 2017, GBW recorded a pre-tax Greenbrier-Maxion The Company has a 60% ownership interest in Greenbrier-Maxion, a railcar manufacturer in Brazil. Greenbrier-Maxion also assembles bogies and offers a range of aftermarket services including railcar overhaul and refurbishment. The Company does not consolidate Greenbrier-Maxion for financial reporting purposes and accounts for its interest under the equity method of accounting as the entity’s governance provisions require that all significant decisions of Greenbrier-Maxion are subject to shared consent of its shareholders. Summarized financial data for Greenbrier-Maxion is as follows: As of August 31, (In thousands) 2019 2018 Current assets $ 39,768 $ 41,619 Total assets $ 85,167 $ 61,034 Current liabilities $ 62,541 $ 38,027 Total liabilities $ 74,261 $ 41,539 Years ended August 31, (In thousands) 2019 2018 2017 Revenue $ 99,547 $ 187,664 $ 228,510 Margin $ 2,017 $ 10,086 $ 24,372 Net income (loss) $ (9,144 ) $ (3,006 ) $ 1,378 Amsted-Maxion The Company has a 24.5% ownership interest in Amsted-Maxion, a manufacturer of castings and components for railcars and other heavy equipment. The Company retains an option to increase its ownership to 29.5% subject to certain conditions. Amsted-Maxion has a 40% ownership position in Greenbrier-Maxion. The Company accounts for its interest in Amsted-Maxion under the equity method of accounting. Summarized financial data for Amsted-Maxion is as follows: As of August 31, (In thousands) 2019 2018 Current assets $ 25,220 $ 21,463 Total assets $ 107,451 $ 111,589 Current liabilities $ 54,445 $ 27,981 Total liabilities $ 88,016 $ 83,407 Years ended August 31, (In thousands) 2019 2018 2017 Revenue $ 86,421 $ 96,490 $ 90,114 Margin $ 4,949 $ 8,001 $ 5,983 Net loss $ (9,268 ) $ (9,590 ) $ (20,114 ) Other Unconsolidated Affiliates The Company has nine other unconsolidated affiliates which are accounted for under the equity method of accounting. For the year ended August 31, 2019, the Company recognized net earnings of $3.7 million from these other unconsolidated affiliates. Summarized financial information, shown as 100% of these other unconsolidated affiliates in aggregate are as follows: As of August 31, (In thousands) 2019 2018 Current assets $ 45,287 $ 32,168 Total assets $ 255,549 $ 239,535 Current liabilities $ 9,836 $ 3,647 Total liabilities $ 49,747 $ 52,852 Years ended August 31, (In thousands) 2019 2018 2017 Revenue $ 50,423 $ 25,549 $ 39,161 Margin $ 19,877 $ 11,360 $ 8,015 Net income $ 12,751 $ 6,988 $ 5,202 |
Goodwill
Goodwill | 12 Months Ended |
Aug. 31, 2019 | |
Goodwill | Note 9 - Goodwill Changes in the carrying value of goodwill are as follows: (In thousands) Manufacturing Wheels, Repair & Parts Leasing & Services Total Balance August 31, 2018 $ 27,083 $ 51,128 $ – $ 78,211 Additions (1) 61,408 2,162 – 63,570 Translation (1,809 ) – – (1,809 ) Goodwill Impairment – (10,025 ) – (10,025 ) Balance August 31, 2019 $ 86,682 $ 43,265 $ – $ 129,947 (1) Additions to goodwill relate to purchase price adjustments for the GBW repair shop transaction (Wheels, Repair & Parts) and the Rayvag acquisition (Manufacturing) and the acquisition of ARI (Manufacturing). See Note 4 – Acquisitions. (In thousands) Goodwill Gross goodwill balance before accumulated goodwill impairment losses and other reductions $ 292,497 Accumulated goodwill impairment losses (138,234 ) Accumulated other reductions (24,316 ) Balance August 31, 2019 $ 129,947 The Company performed its annual goodwill impairment test during the third quarter. The Company utilized both the qualitative assessment and the quantitative goodwill impairment test as part of its annual goodwill impairment test. For reporting units requiring a quantitative goodwill impairment test, the Company determined the fair value of the reporting units while considering both the 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, when appropriate. Based on the results of the Company’s annual impairment test, the fair values of its reporting units exceeded their carrying values except for the repair reporting unit. The Company initially recorded the repair goodwill following the GBW repair shop transaction in 2018. As a result of near-term operational challenges and updated estimated future cash flows, a non-cash |
Intangibles and Other Assets, n
Intangibles and Other Assets, net | 12 Months Ended |
Aug. 31, 2019 | |
Intangibles and Other Assets, net | Note 10 - 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) 2019 2018 Intangible assets subject to amortization: Customer and supplier relationships $ 89,722 $ 73,601 Accumulated amortization (48,850 ) (44,656 ) Other intangibles 34,031 15,219 Accumulated amortization (6,908 ) (5,319 ) 67,995 38,845 Intangible assets not subject to amortization 5,450 5,115 Prepaid and other assets 15,749 18,935 Nonqualified savings plan investments 27,967 26,299 Debt issuance costs, net 4,568 1,824 Assets held for sale 3,650 3,650 $ 125,379 $ 94,668 Amortization expense for the years ended August 31, 2019, 2018 and 2017 was $6.3 million, $5.3 million and $4.8 million, respectively. Amortization expense for the years ending August 31, 2020, 2021, 2022, 2023 and 2024 is expected to be $10.9 million, $10.9 million, $7.6 million, $6.3 million and $6.3 million, respectively. |
Revolving Notes
Revolving Notes | 12 Months Ended |
Aug. 31, 2019 | |
Revolving Notes | Note 11 - Revolving Notes Senior secured credit facilities, consisting of three components, aggregated to $705.4 million as of August 31, 2019. As of August 31, 2019, a $600.0 million revolving line of credit, maturing June 2024, 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 1.50% or Prime plus 0.50% 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 August 31, 2019, lines of credit totaling $55.4 million secured by certain of the Company’s European assets, with variable rates that range from Warsaw Interbank Offered Rate (WIBOR) plus 1.1% to WIBOR plus 1.5% and Euro Interbank Offered Rate (EURIBOR) plus 1.1% to EURIBOR plus 1.5%, were available for working capital needs of the European manufacturing operations. European credit facilities are continually being renewed. Currently, these European credit facilities have maturities that range from December 2019 through November 2021. As of August 31, 2019, the Company’s Mexican railcar manufacturing joint venture has two lines of credit totaling $50.0 million. The first line of credit provides up to $30.0 million. 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 March 2024. 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 June 2021. As of August 31, 2019, outstanding commitments under the senior secured credit facilities consisted of $24.4 million in letters of credit under the North American credit facility and $27.1 million outstanding under the European credit facilities. As of August 31, 2018, outstanding commitments under the senior secured credit facilities consisted of $72.2 million in letters of credit under the North American credit facility and $27.7 million outstanding under the European credit facilities. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Aug. 31, 2019 | |
Accounts Payable and Accrued Liabilities | Note 12 - Accounts Payable and Accrued Liabilities As of August 31, (In thousands) 2019 2018 Trade payables $ 302,009 $ 226,405 Other accrued liabilities 108,939 86,175 Accrued payroll and related liabilities 106,669 105,111 Accrued warranty 46,678 27,395 Income taxes payable 4,065 4,771 $ 568,360 $ 449,857 |
Warranty Accrual
Warranty Accrual | 12 Months Ended |
Aug. 31, 2019 | |
Warranty Accrual | Note 13 - Warranty Accrual As of August 31, (In thousands) 2019 2018 2017 Balance at beginning of period $ 27,395 $ 20,737 $ 12,159 Charged to cost of revenue 5,014 12,323 6,872 Acquisition 23,895 – 3,526 Payments (8,594 ) (5,217 ) (2,649 ) Currency translation effect (1,032 ) (448 ) 829 Balance at end of period $ 46,678 $ 27,395 $ 20,737 |
Notes Payable, net
Notes Payable, net | 12 Months Ended |
Aug. 31, 2019 | |
Notes Payable, net | Note 14 - Notes Payable, net As of August 31, (In thousands) 2019 2018 Term loans $ 521,544 $ 179,923 2.875% Convertible senior notes, due 2024 275,000 275,000 2.25% Convertible senior notes, due 2024 50,000 – Other notes payable 14,001 14,798 $ 860,545 $ 469,721 Debt discount and issuance costs (37,660 ) (33,516 ) $ 822,885 $ 436,205 Term loans are primarily composed of: • $300 million of senior term debt, with a maturity date of June 2024 unless the Convertible senior notes due July 2024 are outstanding as of November 1, 2023, in which case the debt matures on that date. The debt bears a floating interest rate of LIBOR plus 1.5% with principal of $3.75 million paid quarterly in arrears and a balloon payment of $232.5 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 1.5% to a fixed rate of 3.19%. The principal balance as of August 31, 2019 was $300.0 million. • $225 million of senior term debt, with a maturity date of September 2023, which is secured by a pool of leased railcars. The debt bears a floating interest rate of LIBOR plus 1.5% with principal of $1.97 million paid quarterly in arrears and a balloon payment of $185.6 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 1.5% to a fixed rate of 4.49%. The principal balance as of August 31, 2019 was $217.1 million. • Other term loans with an aggregate balance of $4.4 million as of August 31, 2019 and maturity dates ranging from April 2020 to September 2022. Convertible senior notes, due 2024, bear interest at a fixed rate of 2.875%, paid semi-annually in arrears on February 1 st st 470-20, paid-in y 6.3 m illion shares for issuance upon conversion of these notes. Convertible senior notes, due 2024, bear interest at a fixed rate of 2.25%, paid semi-annually in arrears on February 1 st st 470-20, paid-in Other notes payable includes $14.0 million of unsecured debt with maturity dates of November 2019 and September 2020. The notes payable, along with the revolving and operating lines of credit, contain certain covenants with respect to the Company and various subsidiaries, the most restrictive of which, among other things, limit the ability to: incur additional indebtedness or guarantees; pay dividends or repurchase stock; enter into capital leases; create liens; sell assets; engage in transactions with affiliates, including joint ventures and non U.S. subsidiaries, including but not limited to loans, advances, equity investments and guarantees; enter into mergers, consolidations or sales of substantially all the Company’s assets; and enter into new lines of business. The covenants also require certain maximum ratios of debt to total capitalization and minimum levels of fixed charges (interest and rent) coverage. As of August 31, 2019 principal payments on the notes payable are expected as follows: (In thousands) Year ending August 31, 2020 $ 29,084 2021 30,921 2022 23,258 2023 22,907 2024 (1) 754,375 Thereafter – $ 860,545 (1) The repayment of the $275.0 million of Convertible senior notes due February 2024 and the $50.0 million of Convertible senior notes due July 2024 is assumed to occur at the scheduled maturity in 2024 instead of assuming an earlier conversion by the holders. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Aug. 31, 2019 | |
Derivative Instruments | Note 15 - 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, 2019 exchange rates, notional amounts of forward exchange contracts for the purchase of Polish Zlotys and the sale of Euros and Pound Sterling aggregated to $71.6 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 May 2022, any such gain or loss remaining will be recognized in manufacturing revenue along with the related transactions. In the event that the underlying transaction does not occur or does not occur in the period designated at the inception of the hedge, the amount classified in accumulated other comprehensive loss would be reclassified to the results of operations in Interest and foreign exchange at the time of occurrence. At August 31, 2019 exchange rates, approximately $0.9 million would be reclassified to revenue or cost of revenue in the next year. At August 31, 2019, an interest rate swap agreement maturing in September 2023 had a notional amount of $109.5 million and an interest rate swap agreement maturing in June 2024 had a notional amount of $150.0 million. The fair value of the contracts are included on the Consolidated Balance Sheets in Accounts payable and accrued liabilities when there is a loss, or in Accounts receivable, net when there is a gain. 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, 2019 interest rates, approximately $0.2 million would be reclassified to interest expense in the next year. Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives August 31, August 31, 2019 2018 2019 2018 (In thousands) Balance sheet caption Fair Value Fair Value Balance sheet caption Fair Value Fair Value Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 64 $ 700 Accounts payable and accrued liabilities $ 437 $ 1,211 Interest rate swap contracts Intangibles and other assets, net – 781 Accounts payable and accrued liabilities 10,255 1 $ 64 $ 1,481 $ 10,692 $ 1,212 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ – $ 76 Accounts payable and accrued liabilities $ 587 $ 354 The Effect of Derivative Instruments on the Consolidated Statements of Income Derivatives in cash flow hedging relationships Financial statement caption of gain recognized in income on derivative Gain (loss) recognized in income on derivatives August 31, 2019 2018 Foreign forward exchange contract Interest and foreign exchange $ 213 $ 1,052 Interest rate swap contracts Interest and foreign exchange – (1 ) $ 213 $ 1,051 Derivatives in cash flow hedging relationships Gain (loss) recognized in OCI on derivatives (effective portion) Years ended August 31, Financial statement caption of gain (loss) reclassified from accumulated OCI into income Gain (loss) reclassified from accumulated OCI income (effective Years ended August 31, Financial statement caption of gain (loss) in income on derivative (ineffective portion and amount excluded from effectiveness testing) Gain (loss) recognized on derivative portion and amount excluded from effectiveness Years ended August 31, 2019 2018 2019 2018 2019 2018 Foreign forward exchange contracts $ (1,261 ) $ (658 ) Revenue $ (764 ) $ 1,145 Revenue $ 1,346 $ 854 Foreign forward exchange contracts (421 ) (1,093 ) Cost of revenue (1,030 ) (429 ) Cost of revenue 935 306 Interest rate swap contracts (11,582 ) 1,632 Interest and foreign exchange (545 ) (298 ) Interest and foreign exchange (587 ) – $ (13,264 ) $ (119 ) $ (2,339 ) $ 418 $ 1,694 $ 1,160 |
Equity
Equity | 12 Months Ended |
Aug. 31, 2019 | |
Equity | Note 16 - Equity Stock Incentive Plan The 2014 Amended and Restated Stock Incentive Plan was amended and restated as the 2017 Amended and Restated Stock Incentive Plan on October 24, 2017 and approved by stockholders on January 5, 2018. The stockholders also approved an increase in the total number of shares reserved for issuance by 1,100,000 shares. As a result, the maximum aggregate number of the Company’s common shares authorized for issuance is 5,425,000. The 2017 Amended and Restated Stock Incentive Plan provides for the grant of incentive stock options, non-statutory On August 31, 2019 there were 849,522 shares available for grant compared to 1,050,675 and 233,271 shares available for grant as of the years ended August 31, 2018 and 2017, respectively. There are no stock options or stock appreciation rights outstanding as of August 31, 2019. 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. 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. During the years ended August 31, 2019, 2018 and 2017, the Company awarded restricted share and restricted stock unit grants totaling 313,540, 317,036, and 269,705 shares, respectively, which include performance-based grants. As of August 31, 2019, there were a total of 397,260 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 397,260 additional shares may be granted if performance-based restricted stock unit awards vest at stretch levels of performance. These additional shares are associated with restricted stock unit awards granted during the years ended August 31, 2019, 2018 and 2017. The fair value of awards granted was $17.4 million, $15.2 million, and $11.3 million for the years ended August 31, 2019, 2018 and 2017, respectively. 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, 2019, 2018 and 2017 was $12.4 million, $17.2 million, and $20.2 million, respectively, and was recorded in Selling and administrative and Cost of revenue on the Consolidated Statements of Income. Unamortized compensation cost related to restricted stock grants was $15.0 million as of August 31, 2019. Total unvested restricted share and restricted stock unit grants were 697,949 and 788,744 as of August 31, 2019 and 2018. The following table summarizes restricted share and restricted stock unit grant transactions for shares, both vested and unvested, under the 2017 Amended and Restated Stock Incentive Plan: Shares Balance at August 31, 2016 (1) 3,848,230 Granted 269,705 Forfeited (26,206 ) Balance at August 31, 2017 (1) 4,091,729 Granted 317,036 Forfeited (34,440 ) Balance at August 31, 2018 (1) 4,374,325 Granted 313,540 Forfeited (112,387 ) Balance at August 31, 2019 (1) 4,575,478 (1) Balance represents cumulative grants net of forfeitures. Share Repurchase Program The Board of Directors has authorized the Company to repurchase shares of the Company’s common stock. The share repurchase program has an expiration date of March 31, 2021 and the amount remaining for repurchase is $100 million. Under the share repurchase program, shares of common stock may be purchased on the open market or through privately negotiated transactions from time to time. The timing and amount of purchases will be based upon market conditions, securities law limitations and other factors. The program may be modified, suspended or discontinued at any time without prior notice. The share repurchase program does not obligate the Company to acquire any specific number of shares in any period. There were no shares repurchased during the years ended August 31, 2019 and 2018. As of August 31, 2019 the Company had cumulatively repurchased 3,206,226 shares for approximately $137.0 million. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share | Note 17 - Earnings Per Share The shares used in the computation of the Company’s basic and diluted earnings per common share are reconciled as follows: Years ended August 31, (In thousands) 2019 2018 2017 Weighted average basic common shares outstanding (1) 32,615 30,857 29,225 Dilutive effect of 3.5% Convertible notes (2) n/a 1,821 3,295 Dilutive effect of 2.875% Convertible notes (3) – – – Dilutive effect of 2.25% Convertible notes (4) – n/a n/a Dilutive effect of restricted stock units (5) 550 157 42 Weighted average diluted common shares outstanding 33,165 32,835 32,562 (1) Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. No restricted stock and restricted stock units were anti-dilutive for the years ended August 31, 2019, 2018 and 2017. (2) The dilutive effect of the 3.5% Convertible notes was included as they were considered dilutive under the “if converted” method as further discussed below for the years ended August 31, 2018 and 2017. The 3.5% (3) The 2.875% Convertible notes were issued in February 2017. The dilutive effect of the 2.875% (4) The 2.25% Convertible notes were issued in July 2019. The dilutive effect of the 2.25% Convertible notes was excluded for the year ended August 31, 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. (5) Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. 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 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 3.5% Convertible notes during the periods in which they were outstanding. 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 3.5% Convertible notes were included in the calculation of both approaches using the treasury stock method when the average stock price is greater than the applicable conversion price. Years ended August 31, 2019 2018 2017 Net earnings attributable to Greenbrier $ 71,076 $ 151,781 $ 116,067 Add back: Interest and debt issuance costs on the 3.5% Convertible notes, net of tax n/a 2,031 2,932 Earnings before interest and debt issuance costs on the 3.5% Convertible notes $ 71,076 $ 153,812 $ 118,999 Weighted average diluted common shares outstanding 33,165 32,835 32,562 Diluted earnings per share (1) $ 2.14 $ 4.68 $ 3.65 (1) Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on the 3.5% Convertible notes Weighted average diluted common shares outstanding |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2019 | |
Related Party Transactions | Note 18 - Related Party Transactions In June 2017, the Company purchased a 40% interest in the common equity 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 August 31, 2019, the carrying amount of the investment was $5.8 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. The Company recognized $18 million, $16 million and $130 million in revenue associated with railcars sold into the leasing warehouse during the years ended August 31, 2019, 2018 and 2017, respectively. An additional $6 million and $48 million in revenue was recognized associated with railcars sold out of the leasing warehouse during the years ended August 31, 2019 and 2018, respectively. The Company also provides administrative and remarketing services to this entity and earns management fees for these services which were immaterial for the year ended August 31, 2019, 2018 and 2017. As of August 31, 2019, the Company had a $10.0 million note receivable from Amsted-Maxion, its unconsolidated Brazilian castings and components manufacturer and an $18.4 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. The Company has a 41.9% interest in Axis, LLC (Axis), a joint venture that manufactures and sells axles to its joint venture partners for use and distribution both domestically and internationally in traditional freight railcar markets and other railcar markets. The Company obtained its ownership interest in Axis as part of the acquisition of the manufacturing business of ARI on July 26, 2019. For the year ended August 31, 2019, the Company purchased $1.6 million of railcar components from Axis. 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 $1.5 million, $0.5 million and $0.5 million for each of the years ended August 31, 2019, 2018 and 2017, respectively. In July 2014, the Company and Watco Companies LLC completed the formation of GBW, an unconsolidated 50/50 joint venture. The Company accounted for its interest in GBW under the equity method of accounting. On August 20, 2018 we entered into an agreement with our joint venture partner to discontinue the GBW railcar repair joint venture. The Company leased real and personal property to GBW with lease revenue totaling approximately $5 million for the years ended August 31, 2018 and 2017. The Company sold wheel sets and components to GBW which totaled $16.5 million and $18.3 million for the years ended August 31, 2018 and 2017, respectively. GBW provided services to the Company which totaled $0.4 million and $1.0 million for the years ended August 31, 2018 and 2017, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2019 | |
Income Taxes | Note 19 - Income Taxes Components of income tax expense were as follows: Years ended August 31, (In thousands) 2019 2018 2017 Current Federal $ 18,894 $ 28,357 $ 22,710 State 4,775 3,244 305 Foreign 37,391 38,628 35,893 61,060 70,229 58,908 Deferred Federal (8,559 ) (33,459 ) 9,418 State (2,542 ) (344 ) (1,467 ) Foreign (8,433 ) (3,690 ) (2,732 ) (19,534 ) (37,493 ) 5,219 Change in valuation allowance 62 157 (113 ) Income tax expense $ 41,588 $ 32,893 $ 64,014 Income tax expense was computed using different statutory rates for the years presented. Due to the 2017 Tax Cuts and Jobs Act (Tax Act) enacted on December 22, 2017, the federal statutory rate was reduced from 35% to 21% effective January 1, 2018. The U.S. federal corporate statutory rates presented are 21%, 25.7% and 35% for fiscal years 2019, 2018 and 2017, respectively. The Company recognized the income tax effects of the Tax Act in its financial statements in accordance with Staff Accounting Bulletin No. 118 (SAB 118), which provided guidance for the application of ASC 740 Income Taxes one-time For the year ended August 31, 2019, the Company has estimated the impacts of the Tax Act which became effective on January 1, 2018. The most significant item, impacting the Company in the current year, is the global intangible low-taxed The reconciliation between effective and statutory tax rates on operations is as follows: Years ended August 31, 2019 2018 2017 Federal statutory rate 21.0 % 25.7 % 35.0 % State income taxes, net of federal benefit 1.3 0.8 0.1 Foreign operations, excluding transition tax 5.8 1.8 (3.4 ) Transition tax on foreign earnings 0.5 3.1 – Remeasurement of domestic deferred taxes – (15.0 ) – Change in valuation allowance – 0.1 – Noncontrolling interest in flow-through entity (5.7 ) (2.4 ) (6.0 ) Permanent differences and other 4.2 0.6 1.4 Effective tax rate 27.1 % 14.7 % 27.1 % Earnings before income tax and earnings from unconsolidated affiliates for the years ended August 31, 2019, 2018 and 2017 were $75.0 million, $110.8 million and $123.2 million, respectively, for our domestic U.S. operations and $78.2 million, $112.8 million and $113.0 million, respectively, for our foreign operations. 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) 2019 2018 Deferred tax assets: Accrued payroll and related liabilities $ 21,978 $ 18,461 Deferred revenue 8,296 10,642 Inventories and other 15,392 10,518 Maintenance and warranty accruals 3,596 7,201 Net operating losses 3,182 2,002 Investment and asset tax credits 1,560 1,439 54,004 50,263 Deferred tax liabilities: Fixed assets 56,760 70,942 Original issue discount 6,253 6,099 Intangibles 2,813 2,474 Other 1,432 1,831 67,258 81,346 Valuation allowance 692 657 Net deferred tax liability $ 13,946 $ 31,740 As of August 31, 2019, the Company had $1.4 million of state credit carryforwards that will begin to expire in 2021 and $19.6 million of foreign NOL carryforwards that will begin to expire in 2020. The Company has placed valuation allowances against any deferred tax assets for which no benefit is anticipated, including those for loss and credit carryforwards not likely to be used before their expiration dates. The net increase in the total valuation allowance on deferred taxes for which no benefit is anticipated was less than $0.1 million for the year ended August 31, 2019. Prior to 2018 no provision had been made for U.S. income taxes on the Company’s cumulative undistributed earnings from foreign subsidiaries. During fiscal 2018 these earnings were subject to the one-time The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Years ended August 31, (In thousands) 2019 2018 2017 Unrecognized Tax Benefit – Opening Balance $ 1,608 $ 1,820 $ 942 Gross increases – tax positions in prior period – 237 1,368 Gross decreases – tax positions in prior period (3 ) (449 ) (53 ) Settlements – – – Lapse of statute of limitations – – (437 ) Unrecognized Tax Benefit – Ending Balance $ 1,605 $ 1,608 $ 1,820 The Company is subject to taxation in the U.S. and in various states and foreign jurisdictions. The Company is effectively no longer subject to U.S. Federal examination for fiscal years ending before 2016, to state and local examinations before 2015, or to foreign examinations before 2014. Unrecognized tax benefits, excluding interest, at August 31, 2019 were $1.6 million, all of which would affect the effective tax rate if recognized. The unrecognized tax benefits at August 31, 2018 were $1.6 million. Accrued interest on unrecognized tax benefits as of August 31, 2019 was $0.6 million and as of August 31, 2018 was $0.2 million. The Company recorded annual interest expense of approximately $0.4 million for changes in the reserves during each of the years ended August 31, 2019 and 2018. The Company has 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 change in the reserves for uncertain tax positions during the next twelve months. |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2019 | |
Segment Information | Note 20 - Segment Information The Company operates in three reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services. Prior to August 20, 2018, the Company operated in four reportable segments: Manufacturing; Wheels & Parts; Leasing & Services; and GBW Joint Venture. On August 20, 2018 the Company entered into an agreement with its joint venture partner to discontinue the GBW railcar repair joint venture, which resulted in 12 repair shops returned to the Company. Beginning on August 20, 2018, the GBW Joint Venture was no longer considered a reportable 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 model. 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 are 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. The results of operations for the GBW Joint Venture are not reflected in the tables below as the investment was accounted for under the equity method of accounting. For the year ended August 31, 2019: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 2,431,499 $ 97,086 $ 2,528,585 $ 217,583 $ 6,370 $ 223,953 Wheels, Repair & Parts 444,502 48,266 492,768 (2,941 ) 902 (2,039 ) Leasing & Services 157,590 28,240 185,830 64,763 25,527 90,290 Eliminations – (173,592 ) (173,592 ) – (32,799 ) (32,799 ) Corporate – – – (95,289 ) – (95,289 ) $ 3,033,591 $ – $ 3,033,591 $ 184,116 $ – $ 184,116 For the year ended August 31, 2018: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 2,044,586 $ 118,157 $ 2,162,743 $ 240,901 $ 17,721 $ 258,622 Wheels, Repair & Parts 347,023 41,494 388,517 16,731 2,748 19,479 Leasing & Services 127,855 11,847 139,702 88,481 10,296 98,777 Eliminations – (171,498 ) (171,498 ) – (30,765 ) (30,765 ) Corporate – – – (93,128 ) – (93,128 ) $ 2,519,464 $ – $ 2,519,464 $ 252,985 $ – $ 252,985 For the year ended August 31, 2017: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 1,725,188 $ 19,291 $ 1,744,479 $ 295,334 $ 1,022 $ 296,356 Wheels, Repair & Parts 312,679 30,861 343,540 14,984 2,303 17,287 Leasing & Services 131,297 11,812 143,109 31,904 11,099 43,003 Eliminations – (61,964 ) (61,964 ) – (14,424 ) (14,424 ) Corporate – – – (81,790 ) – (81,790 ) $ 2,169,164 $ – $ 2,169,164 $ 260,432 $ – $ 260,432 Years ended August 31, (In thousands) 2019 2018 2017 Assets: Manufacturing $ 1,606,571 $ 1,020,757 $ 914,450 Wheels, Repair & Parts 306,725 306,756 236,315 Leasing & Services 708,799 578,818 535,323 Unallocated 368,542 559,133 711,617 $ 2,990,637 $ 2,465,464 $ 2,397,705 Depreciation and amortization: Manufacturing $ 49,240 $ 44,225 $ 33,807 Wheels, Repair & Parts 13,024 10,771 11,143 Leasing & Services 21,467 19,360 20,179 $ 83,731 $ 74,356 $ 65,129 Capital expenditures: Manufacturing $ 85,155 $ 59,707 $ 54,973 Wheels, Repair & Parts 13,291 5,204 3,129 Leasing & Services 99,787 111,937 27,963 $ 198,233 $ 176,848 $ 86,065 The following table summarizes selected geographic information. Years ended August 31, (In thousands) 2019 2018 2017 Revenue (1) U.S. $ 2,115,934 $ 1,840,877 $ 1,674,517 Foreign 917,657 678,587 494,647 $ 3,033,591 $ 2,519,464 $ 2,169,164 Assets: U.S. $ 2,110,864 $ 1,677,144 $ 1,307,239 Mexico 628,511 517,543 791,974 Europe 251,262 270,777 298,492 $ 2,990,637 $ 2,465,464 $ 2,397,705 (1) Revenue is presented on the basis of geographic location of customers. Reconciliation of Earnings from operations to Earnings before income tax and loss from unconsolidated affiliates: Years ended August 31, (In thousands) 2019 2018 2017 Earnings from operations $ 184,116 $ 252,985 $ 260,432 Interest and foreign exchange 30,912 29,368 24,192 Earnings before income tax and loss from unconsolidated affiliates $ 153,204 $ 223,617 $ 236,240 |
Customer Concentration
Customer Concentration | 12 Months Ended |
Aug. 31, 2019 | |
Customer Concentration | Note 21 - Customer Concentration Customer concentration is defined as a single customer that accounts for more than 10% of total revenues or accounts receivable. In 2019, revenue from one customer represented 26% of total revenue. In 2018, revenue from two customers represented 20% and 11% of total revenue. In 2017, revenue from one customer represented 20% of total revenue. No other customers accounted for more than 10% of total revenues for the years ended August 31, 2019, 2018, or 2017. One customer had a balance that individually equaled or exceeded 10% of accounts receivable and represented 14% of the consolidated accounts receivable balance at August 31, 2019. One customer had a balance that individually equaled or exceeded 10% of accounts receivable and represented 19% of the consolidated accounts receivable balance at August 31, 2018. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Aug. 31, 2019 | |
Lease Commitments | Note 22 - Lease Commitments Lease expense for railcar equipment leased-in non-cancelable non-cancelable (In thousands) Year ending August 31, 2020 $ 6,200 2021 2,965 2022 1,762 2023 1,762 2024 1,413 Thereafter 376 $ 14,478 Operating leases for domestic railcar repair facilities, land, office space and certain manufacturing and office equipment expire at various dates through September 2098. Rental expense for these leases were $12.2 million, $8.7 million and $9.4 million non-cancelable (In thousands) Year ending August 31, 2020 $ 8,099 2021 5,781 2022 3,965 2023 3,395 2024 2,109 Thereafter 9,821 $ 33,170 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies | Note 23 - Commitments and Contingencies Portland Harbor Superfund Site 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 did not sign 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 clean-up clean-up The ROD does not address responsibility for the costs of 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. Oregon Department of Environmental Quality (DEQ) Regulation of Portland Manufacturing Operations The Company has entered into a Voluntary Cleanup Agreement with the 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. Other Litigation, Commitments and Contingencies In connection with the acquisition of the manufacturing business of ARI, the Company agreed to assume potential legacy liabilities (known and unknown) related to railcars manufactured by ARI. Among these potential liabilities are certain retrofit and repair obligations arising from regulatory actions by the Federal Railroad Administration and the Association of American Railroads. In some cases, ARI shares with the Company the costs of these retrofit and repair obligations. The Company currently is not able to determine if any of these liabilities will have a material adverse impact on the Company’s results of operations. From time to time, Greenbrier is involved as a defendant in litigation in the ordinary course of business, the outcomes of which cannot be predicted with certainty. While the ultimate outcome of such legal proceedings cannot be determined at this time, the Company believes that the resolution of pending litigation will not have a material adverse effect on the Company’s Consolidated Financial Statements. As of August 31, 2019, the Company had outstanding letters of credit aggregating to $24.4 million associated with performance guarantees, facility leases and workers compensation insurance. As of August 31, 2019, the Company had a $10.0 million note receivable from Amsted-Maxion, its unconsolidated Brazilian castings and components manufacturer and an $18.4 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 or Greenbrier-Maxion. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Aug. 31, 2019 | |
Fair Value of Financial Instruments | Note 24 - 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 1 Estimated Fair Value (Level 2) Notes payable as of August 31, 2019 $ 860,545 $ 838,728 Notes payable as of August 31, 2018 $ 469,721 $ 517,925 1 Carrying amount disclosed in this table excludes debt discount and debt issuance costs. The carrying amount of cash and cash equivalents, accounts and notes receivable, revolving notes, 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, 2019 | |
Fair Value Measures | Note 25 - 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, 2019 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 64 $ – $ 64 $ – Nonqualified savings plan investments 27,967 27,967 – – Cash equivalents 68,100 68,100 – – $ 96,131 $ 96,067 $ 64 $ – Liabilities: Derivative financial instruments $ 11,279 $ – $ 11,279 $ – (1) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 15—Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2018 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 1,557 $ – $ 1,557 $ – Nonqualified savings plan investments 26,299 26,299 – – Cash equivalents 126,430 126,430 – – $ 154,286 $ 152,729 $ 1,557 $ – Liabilities: Derivative financial instruments $ 1,566 $ – $ 1,566 $ – |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Aug. 31, 2019 | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2019 Revenue Manufacturing $ 471,789 $ 476,019 $ 681,588 $ 802,103 $ 2,431,499 Wheels, Repair & Parts 108,543 125,278 124,980 85,701 444,502 Leasing & Services 24,191 57,374 49,584 26,441 157,590 604,523 658,671 856,152 914,245 3,033,591 Cost of revenue Manufacturing 417,805 442,996 590,788 686,036 2,137,625 Wheels, Repair & Parts 100,978 118,455 119,821 81,636 420,890 Leasing & Services 13,207 43,376 38,971 13,036 108,590 531,990 604,827 749,580 780,708 2,667,105 Margin 72,533 53,844 106,572 133,537 366,486 Selling and administrative 50,432 47,892 54,377 60,607 213,308 Net gain on disposition of equipment (14,353 ) (12,102 ) (11,019 ) (3,489 ) (40,963 ) Goodwill impairment – – 10,025 – 10,025 Earnings from operations 36,454 18,054 53,189 76,419 184,116 Other costs Interest and foreign exchange 4,404 9,237 9,770 7,501 30,912 Earnings before income tax and earnings (loss) from unconsolidated affiliates 32,050 8,817 43,419 68,918 153,204 Income tax expense (9,135 ) (2,248 ) (13,008 ) (17,197 ) (41,588 ) Earnings (loss) from unconsolidated affiliates 467 (786 ) (4,564 ) (922 ) (5,805 ) Net earnings 23,382 5,783 25,847 50,799 105,811 Net earnings attributable to noncontrolling interest (5,426 ) (3,018 ) (10,599 ) (15,692 ) (34,735 ) Net earnings attributable to Greenbrier $ 17,956 $ 2,765 $ 15,248 $ 35,107 $ 71,076 Basic earnings per common share: (1) $ 0.55 $ 0.08 $ 0.47 $ 1.08 $ 2.18 Diluted earnings per common share: (1) $ 0.54 $ 0.08 $ 0.46 $ 1.06 $ 2.14 (1) Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2018 Revenue Manufacturing $ 451,485 $ 511,827 $ 510,099 $ 571,175 $ 2,044,586 Wheels, Repair & Parts 78,011 88,710 94,515 85,787 347,023 Leasing & Services 30,039 28,799 36,773 32,244 127,855 559,535 629,336 641,387 689,206 2,519,464 Cost of revenue Manufacturing 380,850 429,165 427,875 489,517 1,727,407 Wheels, Repair & Parts 72,506 80,708 85,850 79,266 318,330 Leasing & Services 16,865 14,116 19,155 14,536 64,672 470,221 523,989 532,880 583,319 2,110,409 Margin 89,314 105,347 108,507 105,887 409,055 Selling and administrative 47,043 50,294 51,793 51,309 200,439 Net gain on disposition of equipment (19,171 ) (5,817 ) (14,825 ) (4,556 ) (44,369 ) Earnings from operations 61,442 60,870 71,539 59,134 252,985 Other costs Interest and foreign exchange 7,020 7,029 6,533 8,786 29,368 Earnings before income tax and earnings (loss) from unconsolidated affiliates 54,422 53,841 65,006 50,348 223,617 Income tax benefit (expense) (18,135 ) 11,301 (15,944 ) (10,115 ) (32,893 ) Earnings (loss) from unconsolidated affiliates (2,910 ) 147 (12,823 ) (3,075 ) (18,661 ) Net earnings 33,377 65,289 36,239 37,158 172,063 Net earnings attributable to noncontrolling interest (7,124 ) (3,647 ) (3,288 ) (6,223 ) (20,282 ) Net earnings attributable to Greenbrier $ 26,253 $ 61,642 $ 32,951 $ 30,935 $ 151,781 Basic earnings per common share: (1) $ 0.90 $ 2.10 $ 1.03 $ 0.95 $ 4.92 Diluted earnings per common share: (1) $ 0.83 $ 1.91 $ 1.01 $ 0.94 $ 4.68 (1) Quarterly amounts do not total to the year to date amount as each period is calculated discretely. 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 2.875% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 3.5% Convertible notes during the periods in which they were outstanding. 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 3.5% 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2019 | |
Principles of consolidation | Principles of consolidation - |
Unclassified balance sheet | Unclassified balance sheet - non-current |
Foreign currency translation | Foreign currency translation - year-end |
Cash and cash equivalents | Cash and cash equivalents - |
Restricted cash | Restricted cash - |
Accounts receivable | Accounts receivable - As of August 31, (In thousands) 2019 2018 2017 Allowance for doubtful accounts Balance at beginning of period $ 2,701 $ 1,768 $ 2,215 Additions, net of reversals 773 938 370 Usage (1,311 ) (54 ) (891 ) Currency translation effect 13 49 74 Balance at end of period $ 2,176 $ 2,701 $ 1,768 |
Inventories | Inventories - first-in first-out Work-in-process |
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 Life Buildings and improvements 10 – 30 years Machinery and equipment 3 – 20 years Other 3 – 7 years |
Goodwill | Goodwill - Intangibles – Goodwill and Other |
Intangible and other assets, net | Intangible and other assets, net - |
Impairment of long-lived assets | Impairment of long-lived assets - |
Warranty accruals | Warranty accruals - |
Income taxes | Income taxes - |
Deferred revenue | Deferred revenue |
Noncontrolling interest and Contingently redeemable noncontrolling interest | Noncontrolling interest and Contingently redeemable noncontrolling interest - Greenbrier-Astra Rail was formed in 2017 between the Company’s existing European operations headquartered in Swidnica, Poland and Astra Rail, based in Arad, Romania. Greenbrier-Astra Rail is controlled by the Company with an approximate 75% interest. The Company consolidates Greenbrier-Astra Rail for financial reporting purposes and includes the noncontrolling interest in the mezzanine section of the Consolidated Balance Sheet in Contingently redeemable noncontrolling interest (see Note 4 – Acquisitions). In August 2018, Greenbrier-Astra Rail entered into an agreement to take an approximately 68% ownership stake in Rayvag, a railcar manufacturing company based in Adana, Turkey. Rayvag is controlled by the Company. The Company consolidates Rayvag for financial reporting purposes. The noncontrolling interest related to the partner’s interest is included in Noncontrolling interest in the equity section of the Company’s Consolidated Balance Sheet. The Company has a joint venture with Summit Railroad Products, Inc. to provide axle services. Each party owns a 50% interest in the joint venture. The financial results of this operation are consolidated for financial reporting purposes as the Company has the power to direct the activities which most significantly impact the economic performance of the entity. The noncontrolling interest related to the partner’s 50% interest in the joint venture is included in Noncontrolling interest in the equity section of the Company’s Consolidated Balance Sheet. Net earnings attributable to noncontrolling interest on the Company’s Consolidated Statement of Income represents the Company’s partners’ share of results from operations. |
Accumulated other comprehensive loss | Accumulated other comprehensive loss - (In thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Other Accumulated Other Comprehensive Loss Balance, August 31, 2018 $ (431 ) $ (21,506 ) $ (1,429 ) $ (23,366 ) Other comprehensive loss before reclassifications (10,264 ) (12,688 ) (351 ) $ (23,303 ) Amounts reclassified from accumulated other comprehensive loss 1,854 – – $ 1,854 Balance, August 31, 2019 $ (8,841 ) $ (34,194 ) $ (1,780 ) $ (44,815 ) The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with the financial statement caption, were as follows: Year Ended August 31, Financial Statement Caption (In thousands) 2019 2018 (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 1,794 $ (716 ) Revenue and Cost of revenue Interest rate swap contracts 545 298 Interest and foreign exchange 2,339 (418 ) Total before tax (485 ) 3 Tax benefit (expense) $ 1,854 $ (415 ) Net of tax |
Revenue recognition | Revenue recognition - Manufacturing Railcars are manufactured in accordance with contracts with customers. The Company recognizes revenue upon its customers’ acceptance of the completed railcars at a specified delivery point. From time to time, the Company enters into multi-year supply agreements. Each railcar delivery is considered a distinct performance obligation, such that the amounts that are recognized as revenue following railcar delivery are generally not subject to change. The Company typically recognizes marine vessel manufacturing revenue over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts the Company’s performance in completing the construction of the marine vessel for the customer and is consistent with the percentage of completion method used prior to the adoption of the new revenue standard. Wheels, Repair & Parts The Company operates a network of wheel, repair and parts shops in North America that provide complete wheelset reconditioning and railcar repair services. Wheels revenue is recognized when wheelsets are shipped to the customer or when consumed by customers in the case of consignment arrangements. Parts revenue is recognized upon shipment of the parts to the customers. Repair revenue is typically recognized over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts the Company’s performance in repairing the railcars for the customer. Repair services are typically completed in less than 90 days. Leasing & Services The Company owns a fleet of new and used cars which are leased to third-party customers. Lease revenue is recognized over the lease-term in the period in which it is earned in accordance with ASC 840 Leases Syndication transactions represent new and used railcars which have been placed on lease to a customer and which the Company intends to sell to an investor with the lease attached. At the time of such sale, revenue and cost of revenue associated with railcars that the Company has manufactured are recognized in the Manufacturing segment; while revenue and cost of revenue associated with railcars which were obtained from a third-party with the intent to resell them and subsequently sold, are recognized in 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. If retained risk exceeded 10%, the transaction would not be recognized as a sale until such time as the retained risk declined to 10% or less. The Company enters into multi-year contracts to provide management and maintenance services to customers for which revenue is generally recognized on a straight-line basis over the contract term as a stand-ready obligation. Costs to fulfill these contracts are recognized as incurred. |
Interest and foreign exchange | Interest and foreign exchange - (In thousands) Years ended August 31, 2019 2018 2017 Interest and foreign exchange: Interest and other expense $ 32,260 $ 30,946 $ 23,519 Foreign exchange (gain) loss (1,348 ) (1,578 ) 673 $ 30,912 $ 29,368 $ 24,192 |
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 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance-based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 3.5% Convertible notes during the periods in which they were outstanding. 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 3.5% 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. |
Stock-based compensation | Stock-based compensation - Restricted stock units and restricted stock awards are accounted for as equity based awards (see Note 16 – Equity). Phantom stock units are accounted for as liability based awards. Phantom Stock Units The Company began granting phantom stock units during the year ended August 31, 2016. Every phantom stock unit entitles the participant to receive a cash payment equal to the value of a single share of the Company’s common stock upon vesting. The holders of unvested phantom stock units are entitled to participate in dividend equivalents. There were no phantom stock units awarded during the years ended August 31, 2019 and 2018. During the year ended August 31, 2017, the Company awarded 151,634 phantom stock units which include performance-based grants. As of August 31, 2019, there were a total of 72,144 phantom stock units associated with unvested performance-based grants. The actual number of phantom stock units that will vest associated with performance-based phantom stock units will vary depending on the Company’s performance. An additional 72,144 phantom stock units, associated with awards granted in 2017, may be granted if performance-based phantom stock units vest at stretch levels of performance. The grant date fair value of phantom stock awards was $6.7 million for the year ended August 31, 2017. Our phantom stock unit grants are considered liability based awards and therefore are re-measured re-measurement |
Management estimates | Management estimates |
Reclassifications | Reclassifications |
Initial Adoption of Accounting Policies | Initial Adoption of Accounting Policies Revenue Recognition In the first quarter of 2019, the Company adopted Accounting Standard Update 2014-09, Revenue from Contracts with Customers 2014-09). Restricted Cash In the first quarter of 2019, the Company adopted Accounting Standard Update 2016-18, Restricted Cash 2016-18). beginning-of-period end-of-period 2016-18 |
Prospective accounting changes | Prospective Accounting Changes Lease Accounting In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases 2016-02). 2016-02 right-of-use 2016-02 2018-11, Leases The Company evaluated the transition and presentation approaches available as well as the impact of the new guidance on its consolidated financial statements and related disclosures, including the increase in the assets and liabilities on its balance sheet, and the impact on its current lease portfolio from both a lessor and lessee perspective. To facilitate this, the Company utilized a comprehensive approach to review its lease portfolio, as well as assessed system requirements and control implications. The new guidance provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients,” which allows it not to reassess under the new guidance their prior conclusions about lease identification and initial direct costs. The Company did not elect the use-of-hindsight non-lease right-of-use The most significant effects of adoption relate to the recognition of a right-of-use right-of-use Derivatives and Hedging 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 Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued Accounting Standard Update 2016-13, Financial Instruments – Credit Losses 2016-13). off-balance |
Foreign Exchange Contracts | |
Derivatives | Forward exchange contracts - non-performance. |
Interest rate swap contracts | |
Derivatives | Interest rate instruments - |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Allowance for Doubtful Accounts | Accounts receivable - As of August 31, (In thousands) 2019 2018 2017 Allowance for doubtful accounts Balance at beginning of period $ 2,701 $ 1,768 $ 2,215 Additions, net of reversals 773 938 370 Usage (1,311 ) (54 ) (891 ) Currency translation effect 13 49 74 Balance at end of period $ 2,176 $ 2,701 $ 1,768 |
Estimated Useful Lives | Depreciation is provided on the straight-line method over estimated useful lives which primarily are as follows: Depreciable Life Buildings and improvements 10 – 30 years Machinery and equipment 3 – 20 years Other 3 – 7 years |
Components of Accumulated Other Comprehensive Loss, Net of Tax | Accumulated other comprehensive loss - (In thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Other Accumulated Other Comprehensive Loss Balance, August 31, 2018 $ (431 ) $ (21,506 ) $ (1,429 ) $ (23,366 ) Other comprehensive loss before reclassifications (10,264 ) (12,688 ) (351 ) $ (23,303 ) Amounts reclassified from accumulated other comprehensive loss 1,854 – – $ 1,854 Balance, August 31, 2019 $ (8,841 ) $ (34,194 ) $ (1,780 ) $ (44,815 ) |
Amounts Reclassified out of Accumulated Other Comprehensive Loss | The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with the financial statement caption, were as follows: Year Ended August 31, Financial Statement Caption (In thousands) 2019 2018 (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 1,794 $ (716 ) Revenue and Cost of revenue Interest rate swap contracts 545 298 Interest and foreign exchange 2,339 (418 ) Total before tax (485 ) 3 Tax benefit (expense) $ 1,854 $ (415 ) Net of tax |
Interest and Foreign Exchange | Interest and foreign exchange - (In thousands) Years ended August 31, 2019 2018 2017 Interest and foreign exchange: Interest and other expense $ 32,260 $ 30,946 $ 23,519 Foreign exchange (gain) loss (1,348 ) (1,578 ) 673 $ 30,912 $ 29,368 $ 24,192 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Summary of Contract Balances | The opening and closing balances of the Company’s contract balances are as follows: (in thousands) Balance sheet classification September 1, 2018 August 31, 2019 $ change Contract assets Inventories $ 7,228 $ 10,196 $ 2,968 Contract liabilities 1 Deferred revenue $ 41,250 $ 39,203 $ (2,047 ) 1 Contract liabilities balance includes deferred revenue within the scope of the new revenue standard. |
Summary of Estimated Revenue Related to Performance Obligations Wholly or Partially Unsatisfied | The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods. (in millions) August 31, 2019 Revenue type : Manufacturing – Railcar sales $ 2,897.9 Manufacturing – Marine $ 100.2 Services $ 153.0 Other $ 42.1 Manufacturing – Railcars intended for syndication 1 $ 317.2 1 Not a performance obligation as defined in the new revenue standard and therefore not subject to audit |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
American Rail car Industries | |
Preliminary Allocation of Purchase Price Based on Fair Value of Net Assets Acquired | The preliminary purchase price of the net assets acquired from ARI was allocated as follows: (in thousands) Accounts receivable, net $ 28,257 Inventories 98,227 Property, plant and equipment, net 225,045 Investments in unconsolidated affiliates 40,314 Intangibles and other assets, net 36,785 Goodwill 56,816 Total assets acquired 485,444 Total liabilities assumed 67,174 Net assets acquired $ 418,270 |
Schedule of Identified Intangible Assets Assumed In the Acquisition | The identified intangible assets assumed in the acquisition were recognized as follows: (In thousands) Fair value Weighted average Trademarks and patents $ 19,500 9 Customer and supplier relationships 16,071 7 Identified intangible assets subject to amortization 35,571 Other identified intangible assets not subject to amortization 860 Total identified intangible assets $ 36,431 |
Schedule of Unaudited Pro Forma Financial Information | As of August 31, (In thousands, except per share amounts) 2019 2018 Revenue $ 3,462,255 $ 2,893,400 Net earnings attributable to Greenbrier $ 57,284 $ 137,399 Basic earnings per common share $ 1.76 $ 4.45 Diluted earnings per common share $ 1.73 $ 4.25 |
Greenbrier-Astra Rail | |
Preliminary Allocation of Purchase Price Based on Fair Value of Net Assets Acquired | The purchase price of the net assets acquired from Astra was allocated as follows: (in thousands) Cash and cash equivalents $ 6,562 Accounts receivable, net 10,984 Inventories 30,454 Property, plant and equipment, net 75,296 Intangibles and other assets, net 17,300 Goodwill 25,746 Total assets acquired 166,342 Accounts payable and accrued liabilities 17,879 Deferred income taxes 7,292 Deferred revenue 964 Notes payable, net 24,382 Total liabilities assumed 50,517 Net assets acquired $ 115,825 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Components of Inventories | As of August 31, (In thousands) 2019 2018 Manufacturing supplies and raw materials $ 387,015 $ 274,938 Work-in-process 156,614 105,021 Finished goods 130,576 57,969 Excess and obsolete adjustment (9,512 ) (5,614 ) $ 664,693 $ 432,314 |
Inventory Valuation | As of August 31, (In thousands) 2019 2018 2017 Excess and obsolete adjustment Balance at beginning of period $ 5,614 $ 4,136 $ 3,257 Charge to cost of revenue 9,734 4,023 2,781 Disposition of inventory (5,651 ) (2,455 ) (2,003 ) Currency translation effect (185 ) (90 ) 101 Balance at end of period $ 9,512 $ 5,614 $ 4,136 |
Equipment on Operating Leases_2
Equipment on Operating Leases, net (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Operating leases of lessor | Aggregate minimum future amounts receivable under all non-cancelable operating leases and subleases are as follows: (In thousands) Year ending August 31, 2020 $ 23,490 2021 20,076 2022 17,949 2023 13,717 2024 9,450 Thereafter 5,583 $ 90,265 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Property, Plant and Equipment, Net | As of August 31, (In thousands) 2019 2018 Land and improvements $ 87,872 $ 84,432 Machinery and equipment 539,952 414,865 Buildings and improvements 338,639 202,973 Construction in progress 66,744 48,406 Other 90,822 68,452 1,124,029 819,128 Accumulated depreciation (406,056 ) (361,932 ) $ 717,973 $ 457,196 |
Investments In Unconsolidated_2
Investments In Unconsolidated Affiliates (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
GBW Railcar Services LLC | |
Schedule of Summarized Financial Data | Summarized financial data for GBW is as follows: As of August 31, (In thousands) 2019 2018 Current assets $ 1,248 $ 8,531 Total assets $ 1,248 $ 8,531 Current liabilities $ 1,248 $ 23,283 Total liabilities $ 1,248 $ 23,283 Years ended August 31, (In thousands) 2019 2018 2017 Revenue $ 879 $ 238,033 $ 253,436 Margin $ (1,126 ) $ (6,047 ) $ (4,058 ) Net loss (1) $ (4,104 ) $ (51,679 ) $ (36,947 ) (1) In 2018 and 2017, GBW recorded a pre-tax |
Greenbrier-Maxion | |
Schedule of Summarized Financial Data | Summarized financial data for Greenbrier-Maxion is as follows: As of August 31, (In thousands) 2019 2018 Current assets $ 39,768 $ 41,619 Total assets $ 85,167 $ 61,034 Current liabilities $ 62,541 $ 38,027 Total liabilities $ 74,261 $ 41,539 Years ended August 31, (In thousands) 2019 2018 2017 Revenue $ 99,547 $ 187,664 $ 228,510 Margin $ 2,017 $ 10,086 $ 24,372 Net income (loss) $ (9,144 ) $ (3,006 ) $ 1,378 |
Amsted-Maxion | |
Schedule of Summarized Financial Data | Summarized financial data for Amsted-Maxion is as follows: As of August 31, (In thousands) 2019 2018 Current assets $ 25,220 $ 21,463 Total assets $ 107,451 $ 111,589 Current liabilities $ 54,445 $ 27,981 Total liabilities $ 88,016 $ 83,407 Years ended August 31, (In thousands) 2019 2018 2017 Revenue $ 86,421 $ 96,490 $ 90,114 Margin $ 4,949 $ 8,001 $ 5,983 Net loss $ (9,268 ) $ (9,590 ) $ (20,114 ) |
Other Unconsolidated Affiliates | |
Schedule of Summarized Financial Data | Summarized financial information, shown as 100% of these other unconsolidated affiliates in aggregate are as follows: As of August 31, (In thousands) 2019 2018 Current assets $ 45,287 $ 32,168 Total assets $ 255,549 $ 239,535 Current liabilities $ 9,836 $ 3,647 Total liabilities $ 49,747 $ 52,852 Years ended August 31, (In thousands) 2019 2018 2017 Revenue $ 50,423 $ 25,549 $ 39,161 Margin $ 19,877 $ 11,360 $ 8,015 Net income $ 12,751 $ 6,988 $ 5,202 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Schedule of Changes in Carrying Value of Goodwill | Changes in the carrying value of goodwill are as follows: (In thousands) Manufacturing Wheels, Repair & Parts Leasing & Services Total Balance August 31, 2018 $ 27,083 $ 51,128 $ – $ 78,211 Additions (1) 61,408 2,162 – 63,570 Translation (1,809 ) – – (1,809 ) Goodwill Impairment – (10,025 ) – (10,025 ) Balance August 31, 2019 $ 86,682 $ 43,265 $ – $ 129,947 (1) Additions to goodwill relate to purchase price adjustments for the GBW repair shop transaction (Wheels, Repair & Parts) and the Rayvag acquisition (Manufacturing) and the acquisition of ARI (Manufacturing). See Note 4 – Acquisitions. (In thousands) Goodwill Gross goodwill balance before accumulated goodwill impairment losses and other reductions $ 292,497 Accumulated goodwill impairment losses (138,234 ) Accumulated other reductions (24,316 ) Balance August 31, 2019 $ 129,947 |
Intangibles and Other Assets,_2
Intangibles and Other Assets, net (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Identifiable Intangible and Other Assets | The following table summarizes the Company’s identifiable intangible and other assets balance: As of August 31, (In thousands) 2019 2018 Intangible assets subject to amortization: Customer and supplier relationships $ 89,722 $ 73,601 Accumulated amortization (48,850 ) (44,656 ) Other intangibles 34,031 15,219 Accumulated amortization (6,908 ) (5,319 ) 67,995 38,845 Intangible assets not subject to amortization 5,450 5,115 Prepaid and other assets 15,749 18,935 Nonqualified savings plan investments 27,967 26,299 Debt issuance costs, net 4,568 1,824 Assets held for sale 3,650 3,650 $ 125,379 $ 94,668 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Accounts Payable and Accrued Liabilities | As of August 31, (In thousands) 2019 2018 Trade payables $ 302,009 $ 226,405 Other accrued liabilities 108,939 86,175 Accrued payroll and related liabilities 106,669 105,111 Accrued warranty 46,678 27,395 Income taxes payable 4,065 4,771 $ 568,360 $ 449,857 |
Warranty Accrual (Tables)
Warranty Accrual (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Warranty Accrual | As of August 31, (In thousands) 2019 2018 2017 Balance at beginning of period $ 27,395 $ 20,737 $ 12,159 Charged to cost of revenue 5,014 12,323 6,872 Acquisition 23,895 – 3,526 Payments (8,594 ) (5,217 ) (2,649 ) Currency translation effect (1,032 ) (448 ) 829 Balance at end of period $ 46,678 $ 27,395 $ 20,737 |
Notes Payable, net (Tables)
Notes Payable, net (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Notes Payable, Net | As of August 31, (In thousands) 2019 2018 Term loans $ 521,544 $ 179,923 2.875% Convertible senior notes, due 2024 275,000 275,000 2.25% Convertible senior notes, due 2024 50,000 – Other notes payable 14,001 14,798 $ 860,545 $ 469,721 Debt discount and issuance costs (37,660 ) (33,516 ) $ 822,885 $ 436,205 |
Principal Payments on the Notes Payable | As of August 31, 2019 principal payments on the notes payable are expected as follows: (In thousands) Year ending August 31, 2020 $ 29,084 2021 30,921 2022 23,258 2023 22,907 2024 (1) 754,375 Thereafter – $ 860,545 (1) The repayment of the $275.0 million of Convertible senior notes due February 2024 and the $50.0 million of Convertible senior notes due July 2024 is assumed to occur at the scheduled maturity in 2024 instead of assuming an earlier conversion by the holders. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Fair Values of Derivative Instruments | Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives August 31, August 31, 2019 2018 2019 2018 (In thousands) Balance sheet caption Fair Value Fair Value Balance sheet caption Fair Value Fair Value Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 64 $ 700 Accounts payable and accrued liabilities $ 437 $ 1,211 Interest rate swap contracts Intangibles and other assets, net – 781 Accounts payable and accrued liabilities 10,255 1 $ 64 $ 1,481 $ 10,692 $ 1,212 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ – $ 76 Accounts payable and accrued liabilities $ 587 $ 354 |
Effect of Derivative Instruments on Consolidated Statements of Income | The Effect of Derivative Instruments on the Consolidated Statements of Income Derivatives in cash flow hedging relationships Financial statement caption of gain recognized in income on derivative Gain (loss) recognized in income on derivatives August 31, 2019 2018 Foreign forward exchange contract Interest and foreign exchange $ 213 $ 1,052 Interest rate swap contracts Interest and foreign exchange – (1 ) $ 213 $ 1,051 Derivatives in cash flow hedging relationships Gain (loss) recognized in OCI on derivatives (effective portion) Years ended August 31, Financial statement caption of gain (loss) reclassified from accumulated OCI into income Gain (loss) reclassified from accumulated OCI income (effective Years ended August 31, Financial statement caption of gain (loss) in income on derivative (ineffective portion and amount excluded from effectiveness testing) Gain (loss) recognized on derivative portion and amount excluded from effectiveness Years ended August 31, 2019 2018 2019 2018 2019 2018 Foreign forward exchange contracts $ (1,261 ) $ (658 ) Revenue $ (764 ) $ 1,145 Revenue $ 1,346 $ 854 Foreign forward exchange contracts (421 ) (1,093 ) Cost of revenue (1,030 ) (429 ) Cost of revenue 935 306 Interest rate swap contracts (11,582 ) 1,632 Interest and foreign exchange (545 ) (298 ) Interest and foreign exchange (587 ) – $ (13,264 ) $ (119 ) $ (2,339 ) $ 418 $ 1,694 $ 1,160 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
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 2017 Amended and Restated Stock Incentive Plan: Shares Balance at August 31, 2016 (1) 3,848,230 Granted 269,705 Forfeited (26,206 ) Balance at August 31, 2017 (1) 4,091,729 Granted 317,036 Forfeited (34,440 ) Balance at August 31, 2018 (1) 4,374,325 Granted 313,540 Forfeited (112,387 ) Balance at August 31, 2019 (1) 4,575,478 (1) Balance represents cumulative grants net of forfeitures. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
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: Years ended August 31, (In thousands) 2019 2018 2017 Weighted average basic common shares outstanding (1) 32,615 30,857 29,225 Dilutive effect of 3.5% Convertible notes (2) n/a 1,821 3,295 Dilutive effect of 2.875% Convertible notes (3) – – – Dilutive effect of 2.25% Convertible notes (4) – n/a n/a Dilutive effect of restricted stock units (5) 550 157 42 Weighted average diluted common shares outstanding 33,165 32,835 32,562 (1) Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. No restricted stock and restricted stock units were anti-dilutive for the years ended August 31, 2019, 2018 and 2017. (2) The dilutive effect of the 3.5% Convertible notes was included as they were considered dilutive under the “if converted” method as further discussed below for the years ended August 31, 2018 and 2017. The 3.5% (3) The 2.875% Convertible notes were issued in February 2017. The dilutive effect of the 2.875% (4) The 2.25% Convertible notes were issued in July 2019. The dilutive effect of the 2.25% Convertible notes was excluded for the year ended August 31, 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. (5) Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. |
Approach to Calculate Diluted Earning per Share | Years ended August 31, 2019 2018 2017 Net earnings attributable to Greenbrier $ 71,076 $ 151,781 $ 116,067 Add back: Interest and debt issuance costs on the 3.5% Convertible notes, net of tax n/a 2,031 2,932 Earnings before interest and debt issuance costs on the 3.5% Convertible notes $ 71,076 $ 153,812 $ 118,999 Weighted average diluted common shares outstanding 33,165 32,835 32,562 Diluted earnings per share (1) $ 2.14 $ 4.68 $ 3.65 (1) Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on the 3.5% Convertible notes Weighted average diluted common shares outstanding |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Components of Income Tax Expense of Continuing Operations | Components of income tax expense were as follows: Years ended August 31, (In thousands) 2019 2018 2017 Current Federal $ 18,894 $ 28,357 $ 22,710 State 4,775 3,244 305 Foreign 37,391 38,628 35,893 61,060 70,229 58,908 Deferred Federal (8,559 ) (33,459 ) 9,418 State (2,542 ) (344 ) (1,467 ) Foreign (8,433 ) (3,690 ) (2,732 ) (19,534 ) (37,493 ) 5,219 Change in valuation allowance 62 157 (113 ) Income tax expense $ 41,588 $ 32,893 $ 64,014 |
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, 2019 2018 2017 Federal statutory rate 21.0 % 25.7 % 35.0 % State income taxes, net of federal benefit 1.3 0.8 0.1 Foreign operations, excluding transition tax 5.8 1.8 (3.4 ) Transition tax on foreign earnings 0.5 3.1 – Remeasurement of domestic deferred taxes – (15.0 ) – Change in valuation allowance – 0.1 – Noncontrolling interest in flow-through entity (5.7 ) (2.4 ) (6.0 ) Permanent differences and other 4.2 0.6 1.4 Effective tax rate 27.1 % 14.7 % 27.1 % |
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) 2019 2018 Deferred tax assets: Accrued payroll and related liabilities $ 21,978 $ 18,461 Deferred revenue 8,296 10,642 Inventories and other 15,392 10,518 Maintenance and warranty accruals 3,596 7,201 Net operating losses 3,182 2,002 Investment and asset tax credits 1,560 1,439 54,004 50,263 Deferred tax liabilities: Fixed assets 56,760 70,942 Original issue discount 6,253 6,099 Intangibles 2,813 2,474 Other 1,432 1,831 67,258 81,346 Valuation allowance 692 657 Net deferred tax liability $ 13,946 $ 31,740 |
Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Years ended August 31, (In thousands) 2019 2018 2017 Unrecognized Tax Benefit – Opening Balance $ 1,608 $ 1,820 $ 942 Gross increases – tax positions in prior period – 237 1,368 Gross decreases – tax positions in prior period (3 ) (449 ) (53 ) Settlements – – – Lapse of statute of limitations – – (437 ) Unrecognized Tax Benefit – Ending Balance $ 1,605 $ 1,608 $ 1,820 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Results of Operations | For the year ended August 31, 2019: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 2,431,499 $ 97,086 $ 2,528,585 $ 217,583 $ 6,370 $ 223,953 Wheels, Repair & Parts 444,502 48,266 492,768 (2,941 ) 902 (2,039 ) Leasing & Services 157,590 28,240 185,830 64,763 25,527 90,290 Eliminations – (173,592 ) (173,592 ) – (32,799 ) (32,799 ) Corporate – – – (95,289 ) – (95,289 ) $ 3,033,591 $ – $ 3,033,591 $ 184,116 $ – $ 184,116 For the year ended August 31, 2018: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 2,044,586 $ 118,157 $ 2,162,743 $ 240,901 $ 17,721 $ 258,622 Wheels, Repair & Parts 347,023 41,494 388,517 16,731 2,748 19,479 Leasing & Services 127,855 11,847 139,702 88,481 10,296 98,777 Eliminations – (171,498 ) (171,498 ) – (30,765 ) (30,765 ) Corporate – – – (93,128 ) – (93,128 ) $ 2,519,464 $ – $ 2,519,464 $ 252,985 $ – $ 252,985 For the year ended August 31, 2017: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 1,725,188 $ 19,291 $ 1,744,479 $ 295,334 $ 1,022 $ 296,356 Wheels, Repair & Parts 312,679 30,861 343,540 14,984 2,303 17,287 Leasing & Services 131,297 11,812 143,109 31,904 11,099 43,003 Eliminations – (61,964 ) (61,964 ) – (14,424 ) (14,424 ) Corporate – – – (81,790 ) – (81,790 ) $ 2,169,164 $ – $ 2,169,164 $ 260,432 $ – $ 260,432 Years ended August 31, (In thousands) 2019 2018 2017 Assets: Manufacturing $ 1,606,571 $ 1,020,757 $ 914,450 Wheels, Repair & Parts 306,725 306,756 236,315 Leasing & Services 708,799 578,818 535,323 Unallocated 368,542 559,133 711,617 $ 2,990,637 $ 2,465,464 $ 2,397,705 Depreciation and amortization: Manufacturing $ 49,240 $ 44,225 $ 33,807 Wheels, Repair & Parts 13,024 10,771 11,143 Leasing & Services 21,467 19,360 20,179 $ 83,731 $ 74,356 $ 65,129 Capital expenditures: Manufacturing $ 85,155 $ 59,707 $ 54,973 Wheels, Repair & Parts 13,291 5,204 3,129 Leasing & Services 99,787 111,937 27,963 $ 198,233 $ 176,848 $ 86,065 |
Summary of Selected Geographic Information | The following table summarizes selected geographic information. Years ended August 31, (In thousands) 2019 2018 2017 Revenue (1) U.S. $ 2,115,934 $ 1,840,877 $ 1,674,517 Foreign 917,657 678,587 494,647 $ 3,033,591 $ 2,519,464 $ 2,169,164 Assets: U.S. $ 2,110,864 $ 1,677,144 $ 1,307,239 Mexico 628,511 517,543 791,974 Europe 251,262 270,777 298,492 $ 2,990,637 $ 2,465,464 $ 2,397,705 (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 loss from unconsolidated affiliates: Years ended August 31, (In thousands) 2019 2018 2017 Earnings from operations $ 184,116 $ 252,985 $ 260,432 Interest and foreign exchange 30,912 29,368 24,192 Earnings before income tax and loss from unconsolidated affiliates $ 153,204 $ 223,617 $ 236,240 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Railcar Equipment | |
Aggregate Minimum Future Amounts Payable Under Non-Cancelable Operating Leases | Aggregate minimum future amounts payable under these non-cancelable (In thousands) Year ending August 31, 2020 $ 6,200 2021 2,965 2022 1,762 2023 1,762 2024 1,413 Thereafter 376 $ 14,478 |
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 (In thousands) Year ending August 31, 2020 $ 8,099 2021 5,781 2022 3,965 2023 3,395 2024 2,109 Thereafter 9,821 $ 33,170 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
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 1 Estimated Fair Value (Level 2) Notes payable as of August 31, 2019 $ 860,545 $ 838,728 Notes payable as of August 31, 2018 $ 469,721 $ 517,925 1 Carrying amount disclosed in this table excludes debt discount and debt issuance costs. |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
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, 2019 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 64 $ – $ 64 $ – Nonqualified savings plan investments 27,967 27,967 – – Cash equivalents 68,100 68,100 – – $ 96,131 $ 96,067 $ 64 $ – Liabilities: Derivative financial instruments $ 11,279 $ – $ 11,279 $ – (1) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 15—Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2018 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 1,557 $ – $ 1,557 $ – Nonqualified savings plan investments 26,299 26,299 – – Cash equivalents 126,430 126,430 – – $ 154,286 $ 152,729 $ 1,557 $ – Liabilities: Derivative financial instruments $ 1,566 $ – $ 1,566 $ – |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Quarterly Financial Data | Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2019 Revenue Manufacturing $ 471,789 $ 476,019 $ 681,588 $ 802,103 $ 2,431,499 Wheels, Repair & Parts 108,543 125,278 124,980 85,701 444,502 Leasing & Services 24,191 57,374 49,584 26,441 157,590 604,523 658,671 856,152 914,245 3,033,591 Cost of revenue Manufacturing 417,805 442,996 590,788 686,036 2,137,625 Wheels, Repair & Parts 100,978 118,455 119,821 81,636 420,890 Leasing & Services 13,207 43,376 38,971 13,036 108,590 531,990 604,827 749,580 780,708 2,667,105 Margin 72,533 53,844 106,572 133,537 366,486 Selling and administrative 50,432 47,892 54,377 60,607 213,308 Net gain on disposition of equipment (14,353 ) (12,102 ) (11,019 ) (3,489 ) (40,963 ) Goodwill impairment – – 10,025 – 10,025 Earnings from operations 36,454 18,054 53,189 76,419 184,116 Other costs Interest and foreign exchange 4,404 9,237 9,770 7,501 30,912 Earnings before income tax and earnings (loss) from unconsolidated affiliates 32,050 8,817 43,419 68,918 153,204 Income tax expense (9,135 ) (2,248 ) (13,008 ) (17,197 ) (41,588 ) Earnings (loss) from unconsolidated affiliates 467 (786 ) (4,564 ) (922 ) (5,805 ) Net earnings 23,382 5,783 25,847 50,799 105,811 Net earnings attributable to noncontrolling interest (5,426 ) (3,018 ) (10,599 ) (15,692 ) (34,735 ) Net earnings attributable to Greenbrier $ 17,956 $ 2,765 $ 15,248 $ 35,107 $ 71,076 Basic earnings per common share: (1) $ 0.55 $ 0.08 $ 0.47 $ 1.08 $ 2.18 Diluted earnings per common share: (1) $ 0.54 $ 0.08 $ 0.46 $ 1.06 $ 2.14 (1) Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2018 Revenue Manufacturing $ 451,485 $ 511,827 $ 510,099 $ 571,175 $ 2,044,586 Wheels, Repair & Parts 78,011 88,710 94,515 85,787 347,023 Leasing & Services 30,039 28,799 36,773 32,244 127,855 559,535 629,336 641,387 689,206 2,519,464 Cost of revenue Manufacturing 380,850 429,165 427,875 489,517 1,727,407 Wheels, Repair & Parts 72,506 80,708 85,850 79,266 318,330 Leasing & Services 16,865 14,116 19,155 14,536 64,672 470,221 523,989 532,880 583,319 2,110,409 Margin 89,314 105,347 108,507 105,887 409,055 Selling and administrative 47,043 50,294 51,793 51,309 200,439 Net gain on disposition of equipment (19,171 ) (5,817 ) (14,825 ) (4,556 ) (44,369 ) Earnings from operations 61,442 60,870 71,539 59,134 252,985 Other costs Interest and foreign exchange 7,020 7,029 6,533 8,786 29,368 Earnings before income tax and earnings (loss) from unconsolidated affiliates 54,422 53,841 65,006 50,348 223,617 Income tax benefit (expense) (18,135 ) 11,301 (15,944 ) (10,115 ) (32,893 ) Earnings (loss) from unconsolidated affiliates (2,910 ) 147 (12,823 ) (3,075 ) (18,661 ) Net earnings 33,377 65,289 36,239 37,158 172,063 Net earnings attributable to noncontrolling interest (7,124 ) (3,647 ) (3,288 ) (6,223 ) (20,282 ) Net earnings attributable to Greenbrier $ 26,253 $ 61,642 $ 32,951 $ 30,935 $ 151,781 Basic earnings per common share: (1) $ 0.90 $ 2.10 $ 1.03 $ 0.95 $ 4.92 Diluted earnings per common share: (1) $ 0.83 $ 1.91 $ 1.01 $ 0.94 $ 4.68 (1) Quarterly amounts do not total to the year to date amount as each period is calculated discretely. 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 2.875% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 3.5% Convertible notes during the periods in which they were outstanding. 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 3.5% 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. |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) | Aug. 20, 2018Segment | Aug. 19, 2018Segment | Aug. 31, 2019SegmentVehicle |
Number of reportable segments | Segment | 3 | 4 | 3 |
Leasing & Services | |||
Number of railcars owned | 9,400 | ||
Number of railcars that get services | 380,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 01, 2019 | Sep. 01, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 02, 2018 | Jun. 30, 2017 | Jun. 01, 2017 | Aug. 31, 2016 |
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Net foreign currency translation adjustment | $ 34,200 | $ 21,500 | $ 5,400 | ||||||
Allowance for doubtful accounts | 2,176 | 2,701 | 1,768 | $ 2,215 | |||||
Leased railcars for syndication | $ 182,269 | 130,926 | |||||||
Property, Plant and Equipment useful life | 35 years | ||||||||
Percentage of revenue and gross margin | 40.00% | ||||||||
Retained risk threshold percentage | 90.00% | ||||||||
Research and development | $ 5,400 | 6,000 | 4,200 | ||||||
Stock based compensation expense | $ 11,153 | $ 29,314 | $ 26,427 | ||||||
Performance based share based compensation | 313,540 | 317,036 | 269,705 | ||||||
Share based compensation, non vested shares | 397,260 | ||||||||
Unamortized share based compensation | $ 15,000 | ||||||||
Leasing & Services | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Threshold limit of retained earnings | 10.00% | ||||||||
Description of retained risk | 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. If retained risk exceeded 10%, the transaction would not be recognized as a sale until such time as the retained risk declined to 10% or less. | ||||||||
2.875% Convertible Senior Notes | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Debt instrument, interest rate | 2.875% | ||||||||
2.25% Convertible Senior Notes | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Debt instrument, interest rate | 2.25% | ||||||||
3.5% Convertible Senior Notes | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Debt instrument, interest rate | 3.50% | ||||||||
Subsequent Event [Member] | Deferred Gains Recognised as Earnings | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
New accounting pronouncement or change in accounting principle cumulative effect of change in equity or net assets | $ 5,000 | ||||||||
Subsequent Event [Member] | Leased Railcars | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Liabilities to be derecognised | 9,000 | ||||||||
Subsequent Event [Member] | Deferred Revenue | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Liabilities to be derecognised | 13,000 | ||||||||
GIMSA | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Interest in joint venture | 50.00% | ||||||||
Rayvag | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Interest in joint venture | 68.00% | 68.00% | |||||||
Summit Railroad Products, Inc | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Interest in joint venture | 50.00% | ||||||||
Greenbrier-Astra Rail | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Interest in joint venture | 50.00% | 25.00% | |||||||
Ownership percentage by parent | 75.00% | 75.00% | |||||||
Accounting Standards Update 2014-09 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Increase to retained earnings | $ 5,500 | ||||||||
Accounting Standards Update 2016-02 | Minimum | Subsequent Event [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Operating lease right of use asset | 40,000 | ||||||||
Operating lease liability | 40,000 | ||||||||
Accounting Standards Update 2016-02 | Maximum | Subsequent Event [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Operating lease right of use asset | 45,000 | ||||||||
Operating lease liability | $ 45,000 | ||||||||
Phantom Stock Units (PSUs) | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Performance based share based compensation | 151,634 | ||||||||
Share based compensation, non vested shares | 72,144 | ||||||||
Additional shares available for grant if performance-based phantom stock units vest at stretch level of performance | 72,144 | ||||||||
Share based compensation, fair value of phantom stock | $ 6,700 | ||||||||
Stock compensation expenses | $ (1,200) | $ 12,100 | 6,200 | ||||||
Unamortized share based compensation | $ 300 | $ 5,900 | $ 10,900 | ||||||
Greenbrier | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of ownership in entity | 40.00% | 40.00% | |||||||
Upfront Fee [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Unrecognized deferred revenue | $ 40,000 | ||||||||
Customer Relationships | Maximum | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Allowance for doubtful accounts | |||
Balance at beginning of period | $ 2,701 | $ 1,768 | $ 2,215 |
Additions, net of reversals | 773 | 938 | 370 |
Usage | (1,311) | (54) | (891) |
Currency translation effect | 13 | 49 | 74 |
Balance at end of period | $ 2,176 | $ 2,701 | $ 1,768 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated Useful Lives (Detail) | 12 Months Ended |
Aug. 31, 2019 | |
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 | 30 years |
Machinery and Equipment | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 3 years |
Machinery and Equipment | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 20 years |
Other | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 3 years |
Other | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 7 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) $ in Thousands | 12 Months Ended |
Aug. 31, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ 1,250,101 |
Other comprehensive loss before reclassifications | (23,303) |
Amounts reclassified from accumulated other comprehensive loss | 1,854 |
Ending balance | 1,276,730 |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (23,366) |
Ending balance | (44,815) |
Unrealized (Gain) Loss on Derivative Financial Instruments | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (431) |
Other comprehensive loss before reclassifications | (10,264) |
Amounts reclassified from accumulated other comprehensive loss | 1,854 |
Ending balance | (8,841) |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (21,506) |
Other comprehensive loss before reclassifications | (12,688) |
Ending balance | (34,194) |
Other | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (1,429) |
Other comprehensive loss before reclassifications | (351) |
Ending balance | $ (1,780) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Amounts Reclassified out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Interest and foreign exchange | $ 7,501 | $ 9,770 | $ 9,237 | $ 4,404 | $ 8,786 | $ 6,533 | $ 7,029 | $ 7,020 | $ 30,912 | $ 29,368 | $ 24,192 |
Total before tax | (68,918) | (43,419) | (8,817) | (32,050) | (50,348) | (65,006) | (53,841) | (54,422) | (153,204) | (223,617) | (236,240) |
Tax benefit (expense) | $ 17,197 | $ 13,008 | $ 2,248 | $ 9,135 | $ 10,115 | $ 15,944 | $ (11,301) | $ 18,135 | 41,588 | 32,893 | $ 64,014 |
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 | 2,339 | (418) | |||||||||
Tax benefit (expense) | (485) | 3 | |||||||||
Net of tax | 1,854 | (415) | |||||||||
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss | Foreign Exchange Contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Revenue And Cost Of Revenue | 1,794 | (716) | |||||||||
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 | $ 545 | $ 298 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Interest and Foreign Exchange (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Interest Expense [Line Items] | |||||||||||
Interest and other expense | $ 32,260 | $ 30,946 | $ 23,519 | ||||||||
Foreign exchange (gain) loss | (1,348) | (1,578) | 673 | ||||||||
Interest and foreign exchange | $ 7,501 | $ 9,770 | $ 9,237 | $ 4,404 | $ 8,786 | $ 6,533 | $ 7,029 | $ 7,020 | $ 30,912 | $ 29,368 | $ 24,192 |
Revenue Recognition - Additiona
Revenue Recognition - Additional information (Detail) $ in Millions | 12 Months Ended |
Aug. 31, 2019USD ($) | |
Revenue From Contract With Customers [Line Items] | |
Revenue recognized from contract with customers liability | $ 11.3 |
Railcar sales | |
Revenue From Contract With Customers [Line Items] | |
Expected revenue recognized in the reminder of fiscal year | 1,900 |
Services | |
Revenue From Contract With Customers [Line Items] | |
Expected revenue recognized in the reminder of fiscal year | $ 153 |
Expected performance percentage | 51.00% |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Sep. 01, 2018 | ||
Contract with Customer Asset and Liability [Line Items] | |||
Change in contract assets | $ 2,968 | ||
Change in contract liabilities | [1] | (2,047) | |
Contract assets | 10,196 | $ 7,228 | |
Contract liabilities | [1] | $ 39,203 | $ 41,250 |
[1] | Contract liabilities balance includes deferred revenue within the scope of the new revenue standard. |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Estimated Revenue Related to Performance Obligations (Detail) $ in Millions | Aug. 31, 2019USD ($) | |
Railcar sales | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue type | $ 1,900 | |
Services | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue type | 153 | |
Other | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue type | 42.1 | |
Manufacturing | Railcar sales | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue type | 2,897.9 | |
Manufacturing | Marine | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue type | 100.2 | |
Manufacturing | Railcars intended for syndication | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue type | $ 317.2 | [1] |
[1] | Not a performance obligation as defined in the new revenue standard and therefore not subject to audit |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands, € in Millions | Jul. 26, 2019USD ($) | Jun. 01, 2018EUR (€) | Jun. 01, 2017EUR (€) | Aug. 31, 2019USD ($) | May 31, 2019USD ($) | Feb. 28, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) | May 31, 2018USD ($) | Feb. 28, 2018USD ($) | Nov. 30, 2017USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Aug. 20, 2018USD ($) | Aug. 02, 2018 | Jun. 01, 2017USD ($) |
Business Acquisition [Line Items] | |||||||||||||||||
Revenue | $ 914,245 | $ 856,152 | $ 658,671 | $ 604,523 | $ 689,206 | $ 641,387 | $ 629,336 | $ 559,535 | $ 3,033,591 | $ 2,519,464 | $ 2,169,164 | ||||||
Earnings (loss) from operations | 76,419 | 53,189 | 18,054 | 36,454 | 59,134 | 71,539 | 60,870 | 61,442 | 184,116 | 252,985 | 260,432 | ||||||
Net assets acquired | $ 57,600 | ||||||||||||||||
Goodwill impairment | 10,025 | ||||||||||||||||
2024 Convertible Senior Notes | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Senior term debt | 300,000 | 300,000 | |||||||||||||||
2.25% Convertible senior notes, due 2024 | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Convertible senior notes | 50,000 | 50,000 | |||||||||||||||
Wheels, Repair & Parts | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Revenue | 85,701 | 124,980 | 125,278 | 108,543 | 85,787 | 94,515 | 88,710 | 78,011 | 444,502 | 347,023 | 312,679 | ||||||
Earnings (loss) from operations | (2,941) | 16,731 | 14,984 | ||||||||||||||
Goodwill impairment | 10,025 | ||||||||||||||||
Manufacturing | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Revenue | 802,103 | $ 681,588 | $ 476,019 | $ 471,789 | $ 571,175 | $ 510,099 | $ 511,827 | $ 451,485 | 2,431,499 | 2,044,586 | 1,725,188 | ||||||
Earnings (loss) from operations | 217,583 | 240,901 | $ 295,334 | ||||||||||||||
Repair Operations | Wheels, Repair & Parts | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Revenue | 87,500 | ||||||||||||||||
Earnings (loss) from operations | (24,900) | ||||||||||||||||
Goodwill impairment | 10,000 | ||||||||||||||||
American Railcar Industries | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business combination estimated gross purchase price | $ 418,300 | ||||||||||||||||
Business combination consideration transferred for capital expenditures | $ 8,000 | ||||||||||||||||
Business combination description of voting rights acquired | we did not acquire 100% of ARI | ||||||||||||||||
American Railcar Industries | 2024 Convertible Senior Notes | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Proceeds from the issuance of the notes | 300,000 | ||||||||||||||||
Senior term debt | 300,000 | 300,000 | |||||||||||||||
American Railcar Industries | 2.25% Convertible senior notes, due 2024 | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Proceeds from the issuance of the notes | 50,000 | ||||||||||||||||
Convertible senior notes | $ 50,000 | 50,000 | |||||||||||||||
American Railcar Industries | Manufacturing | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Revenue | 43,000 | ||||||||||||||||
Earnings (loss) from operations | $ (1,600) | ||||||||||||||||
Rayvag | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Ownership interest in entity | 68.00% | 68.00% | 68.00% | ||||||||||||||
Greenbrier-Astra Rail | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Revenue | $ 150,300 | 136,800 | |||||||||||||||
Earnings (loss) from operations | $ (19,400) | $ (11,500) | |||||||||||||||
Net assets acquired | $ 115,800 | ||||||||||||||||
Ownership interest in entity | 50.00% | 50.00% | 25.00% | ||||||||||||||
Amount of consideration paid | € | € | € 30 | € 30 | |||||||||||||||
Noncontrolling interest, fair value of acquisition | $ 38,300 | ||||||||||||||||
Ownership percentage by parent | 75.00% | 75.00% | 75.00% |
Acquisitions - Preliminary Purc
Acquisitions - Preliminary Purchase Price Of Net Asset (Detail) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 20, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 129,947 | $ 78,211 | |
Net assets acquired | $ 57,600 | ||
American Rail car Industries | |||
Business Acquisition [Line Items] | |||
Accounts receivable, net | 28,257 | ||
Inventories | 98,227 | ||
Property, plant and equipment, net | 225,045 | ||
Investments in unconsolidated affiliates | 40,314 | ||
Intangibles and other assets, net | 36,785 | ||
Goodwill | 56,816 | ||
Total assets acquired | 485,444 | ||
Total liabilities assumed | 67,174 | ||
Net assets acquired | $ 418,270 |
Acquisitions - Identified Inta
Acquisitions - Identified Intangible Assets (Detail) - American Railcar Industries $ in Thousands | 12 Months Ended |
Aug. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Identified intangible assets subject to amortization | $ 35,571 |
Other identified intangible assets not subject to amortization | 860 |
Total identified intangible assets | 36,431 |
Trademarks and patents | |
Business Acquisition [Line Items] | |
Identified intangible assets subject to amortization | $ 19,500 |
Identified intangible assets subject to amortization,Useful Life | 9 years |
Customer and supplier relationships | |
Business Acquisition [Line Items] | |
Identified intangible assets subject to amortization | $ 16,071 |
Identified intangible assets subject to amortization,Useful Life | 7 years |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Financial Information (Detail) - American Railcar Industries [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Business Acquisition [Line Items] | ||
Revenue | $ 3,462,255 | $ 2,893,400 |
Net earnings attributable to Greenbrier | $ 57,284 | $ 137,399 |
Basic earnings per common share | $ 1.76 | $ 4.45 |
Diluted earnings per common share | $ 1.73 | $ 4.25 |
Acquisitions - Purchase Price o
Acquisitions - Purchase Price of Net Assets Acquired (Detail) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 20, 2018 | Jun. 01, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 129,947 | $ 78,211 | ||
Net assets acquired | $ 57,600 | |||
Greenbrier-Astra Rail | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 6,562 | |||
Accounts receivable, net | 10,984 | |||
Inventories | 30,454 | |||
Property, plant and equipment, net | 75,296 | |||
Intangibles and other assets, net | 17,300 | |||
Goodwill | 25,746 | |||
Total assets acquired | 166,342 | |||
Accounts payable and accrued liabilities | 17,879 | |||
Deferred income taxes | 7,292 | |||
Deferred revenue | 964 | |||
Notes payable, net | 24,382 | |||
Total liabilities assumed | 50,517 | |||
Net assets acquired | $ 115,825 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Inventory [Line Items] | ||
Manufacturing supplies and raw materials | $ 387,015 | $ 274,938 |
Work-in-process | 156,614 | 105,021 |
Finished goods | 130,576 | 57,969 |
Excess and obsolete adjustment | (9,512) | (5,614) |
Inventories | $ 664,693 | $ 432,314 |
Inventories - Inventory Valuati
Inventories - Inventory Valuation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 5,614 | ||
Balance at end of period | 9,512 | $ 5,614 | |
Inventory Valuation Reserve | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 5,614 | 4,136 | $ 3,257 |
Charge to cost of revenue | 9,734 | 4,023 | 2,781 |
Disposition of inventory | (5,651) | (2,455) | (2,003) |
Currency translation effect | (185) | (90) | 101 |
Balance at end of period | $ 9,512 | $ 5,614 | $ 4,136 |
Equipment on Operating Leases_3
Equipment on Operating Leases, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | $ 406,056 | $ 361,932 | |
Depreciation expense | 62,300 | 54,500 | $ 45,500 |
Revenue associated with equipment hiring arrangements | 14,000 | 12,800 | 13,000 |
Property Subject to Operating Lease | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | 44,200 | 64,900 | |
Depreciation expense | $ 13,300 | $ 11,200 | $ 12,100 |
Equipment on Operating Leases_4
Equipment on Operating Leases, Net - Aggregate Minimum Future Amounts Receivable Under All Non-Cancelable Operating Leases and Subleases (Detail) $ in Thousands | Aug. 31, 2019USD ($) |
Future Minimum Payments Receivable [Line Items] | |
2020 | $ 23,490 |
2021 | 20,076 |
2022 | 17,949 |
2023 | 13,717 |
2024 | 9,450 |
Thereafter | 5,583 |
Operating Leases, Future Minimum Payments Receivable, Total | $ 90,265 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 1,124,029 | $ 819,128 |
Accumulated depreciation | (406,056) | (361,932) |
Property, plant and equipment, net | 717,973 | 457,196 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 87,872 | 84,432 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 539,952 | 414,865 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 338,639 | 202,973 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 66,744 | 48,406 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 90,822 | $ 68,452 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 62.3 | $ 54.5 | $ 45.5 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2019USD ($) | May 31, 2019USD ($) | Feb. 28, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) | May 31, 2018USD ($) | Feb. 28, 2018USD ($) | Nov. 30, 2017USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Aug. 20, 2018 | |
Investment [Line Items] | ||||||||||||
Payment for investment | $ 11,393 | $ 26,455 | $ 40,632 | |||||||||
Earnings (loss) from other unconsolidated affiliates | $ (922) | $ (4,564) | $ (786) | $ 467 | $ (3,075) | $ (12,823) | $ 147 | $ (2,910) | $ (5,805) | $ (18,661) | $ (11,764) | |
Number of other unconsolidated affiliates | 9 | |||||||||||
Amsted-Maxion | ||||||||||||
Investment [Line Items] | ||||||||||||
Ownership stake in a railcar manufacturer | 40.00% | 40.00% | ||||||||||
Greenbrier-Maxion | ||||||||||||
Investment [Line Items] | ||||||||||||
Equity method investment, percentage of ownership interest | 60.00% | 60.00% | ||||||||||
Payment for investment | $ 20,000 | |||||||||||
Amsted-Maxion | ||||||||||||
Investment [Line Items] | ||||||||||||
Equity method investment, percentage of ownership interest | 24.50% | 24.50% | ||||||||||
Payment for investment | $ 3,250 | |||||||||||
Other Unconsolidated Affiliates | ||||||||||||
Investment [Line Items] | ||||||||||||
Earnings (loss) from other unconsolidated affiliates | $ 3,700 | |||||||||||
GBW Railcar Services LLC | ||||||||||||
Investment [Line Items] | ||||||||||||
Equity method investment, percentage of ownership interest | 50.00% | 50.00% | 50.00% |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliates - Schedule of Summarized Financial Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | ||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Total assets | $ 2,990,637 | $ 2,465,464 | $ 2,990,637 | $ 2,465,464 | $ 2,397,705 | |||||||
Revenue | 914,245 | $ 856,152 | $ 658,671 | $ 604,523 | 689,206 | $ 641,387 | $ 629,336 | $ 559,535 | 3,033,591 | 2,519,464 | 2,169,164 | |
Margin | 133,537 | 106,572 | 53,844 | 72,533 | 105,887 | 108,507 | 105,347 | 89,314 | 366,486 | 409,055 | 421,299 | |
Net income (loss) | 35,107 | $ 15,248 | $ 2,765 | $ 17,956 | 30,935 | $ 32,951 | $ 61,642 | $ 26,253 | 71,076 | 151,781 | 116,067 | |
GBW Railcar Services LLC | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Current assets | 1,248 | 8,531 | 1,248 | 8,531 | ||||||||
Total assets | 1,248 | 8,531 | 1,248 | 8,531 | ||||||||
Current liabilities | 1,248 | 23,283 | 1,248 | 23,283 | ||||||||
Total liabilities | 1,248 | 23,283 | 1,248 | 23,283 | ||||||||
Revenue | 879 | 238,033 | 253,436 | |||||||||
Margin | (1,126) | (6,047) | (4,058) | |||||||||
Net income (loss) | [1] | (4,104) | (51,679) | (36,947) | ||||||||
Greenbrier-Maxion | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Current assets | 39,768 | 41,619 | 39,768 | 41,619 | ||||||||
Total assets | 85,167 | 61,034 | 85,167 | 61,034 | ||||||||
Current liabilities | 62,541 | 38,027 | 62,541 | 38,027 | ||||||||
Total liabilities | 74,261 | 41,539 | 74,261 | 41,539 | ||||||||
Revenue | 99,547 | 187,664 | 228,510 | |||||||||
Margin | 2,017 | 10,086 | 24,372 | |||||||||
Net income (loss) | (9,144) | (3,006) | 1,378 | |||||||||
Amsted-Maxion | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Current assets | 25,220 | 21,463 | 25,220 | 21,463 | ||||||||
Total assets | 107,451 | 111,589 | 107,451 | 111,589 | ||||||||
Current liabilities | 54,445 | 27,981 | 54,445 | 27,981 | ||||||||
Total liabilities | 88,016 | 83,407 | 88,016 | 83,407 | ||||||||
Revenue | 86,421 | 96,490 | 90,114 | |||||||||
Margin | 4,949 | 8,001 | 5,983 | |||||||||
Net income (loss) | (9,268) | (9,590) | (20,114) | |||||||||
Other Unconsolidated Affiliates | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Current assets | 45,287 | 32,168 | 45,287 | 32,168 | ||||||||
Total assets | 255,549 | 239,535 | 255,549 | 239,535 | ||||||||
Current liabilities | 9,836 | 3,647 | 9,836 | 3,647 | ||||||||
Total liabilities | $ 49,747 | $ 52,852 | 49,747 | 52,852 | ||||||||
Revenue | 50,423 | 25,549 | 39,161 | |||||||||
Margin | 19,877 | 11,360 | 8,015 | |||||||||
Net income (loss) | $ 12,751 | $ 6,988 | $ 5,202 | |||||||||
[1] | In 2018 and 2017, GBW recorded a pre-tax goodwill impairment loss of $26.4 million and $11.2 million, respectively. |
Investments in Unconsolidated_5
Investments in Unconsolidated Affiliates - Schedule of Summarized Financial Data (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Pre-tax goodwill impairment loss | $ 10,025 | ||
GBW Railcar Services LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Pre-tax goodwill impairment loss | $ 26,400 | $ 11,200 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Value of Goodwill (Detail) $ in Thousands | 12 Months Ended | |
Aug. 31, 2019USD ($) | ||
Goodwill [Line Items] | ||
Beginning balance | $ 78,211 | |
Addition | 63,570 | [1] |
Translation | (1,809) | |
Goodwill impairment | (10,025) | |
Ending balance | 129,947 | |
Gross goodwill balance before accumulated goodwill impairment losses and other reductions | 292,497 | |
Accumulated goodwill impairment losses | (138,234) | |
Accumulated other reductions | (24,316) | |
Manufacturing | ||
Goodwill [Line Items] | ||
Beginning balance | 27,083 | |
Addition | 61,408 | [1] |
Translation | (1,809) | |
Ending balance | 86,682 | |
Wheels, Repair & Parts | ||
Goodwill [Line Items] | ||
Beginning balance | 51,128 | |
Addition | 2,162 | [1] |
Goodwill impairment | (10,025) | |
Ending balance | $ 43,265 | |
[1] | Additions to goodwill relate to purchase price adjustments for the GBW repair shop transaction (Wheels, Repair & Parts) and the Rayvag acquisition (Manufacturing) and the acquisition of ARI (Manufacturing). See Note 4 – Acquisitions. |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Aug. 31, 2019USD ($) | |
Goodwill impairment | $ 10,025 |
Intangibles and Other Assets,_3
Intangibles and Other Assets, Net - Identifiable Intangible and Other Assets (Detail) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Net, Total | $ 67,995 | $ 38,845 |
Intangible assets not subject to amortization | 5,450 | 5,115 |
Prepaid and other assets | 15,749 | 18,935 |
Nonqualified savings plan investments | 27,967 | 26,299 |
Debt issuance costs, net | 4,568 | 1,824 |
Assets held for sale | 3,650 | 3,650 |
Total Intangible and other assets, net | 125,379 | 94,668 |
Customer and supplier relationships | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 89,722 | 73,601 |
Accumulated amortization | (48,850) | (44,656) |
Other Intangible Assets | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 34,031 | 15,219 |
Accumulated amortization | $ (6,908) | $ (5,319) |
Intangibles and Other Assets,_4
Intangibles and Other Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Schedule of Intangible Assets Disclosure [Line Items] | |||
Amortization expense | $ 6.3 | $ 5.3 | $ 4.8 |
Future amortization expense, 2020 | 10.9 | ||
Future amortization expense, 2021 | 10.9 | ||
Future amortization expense, 2022 | 7.6 | ||
Future amortization expense, 2023 | 6.3 | ||
Future amortization expense, 2024 | $ 6.3 |
Revolving Notes - Additional In
Revolving Notes - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Aug. 31, 2019USD ($)FacilityCreditFacility | Aug. 31, 2018USD ($) | |
Senior Secured Credit Facilities, Consisting of 3 Components | ||
Line of Credit Facility [Line Items] | ||
Number of senior secured credit facilities | Facility | 3 | |
Line of credit facility maximum capacity | $ 705.4 | |
Letter of credit facility outstanding amount | 24.4 | $ 72.2 |
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 600 | |
Line of credit maturity date | 2024-06 | |
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 | 1.50% | |
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 0.50% | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 55.4 | |
Letter of credit facility outstanding amount | $ 27.1 | $ 27.7 |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Minimum | ||
Line of Credit Facility [Line Items] | ||
Line of credit maturity date | 2019-12 | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Maximum | ||
Line of Credit Facility [Line Items] | ||
Line of credit maturity date | 2021-11 | |
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 | 1.10% | |
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 | 1.50% | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | EURIBOR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.10% | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | EURIBOR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.50% | |
Mexican Railcar Manufacturing Joint Venture Line of Credit, 3rd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 50 | |
Number of lines of credits | CreditFacility | 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 | |
Line of credit facility borrowings outstanding due period | 2024-03 | |
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 | |
Line of credit facility borrowings outstanding due period | 2021-06 | |
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 _3
Accounts Payable and Accrued Liabilities - Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 |
Accounts Payable and Accrued Liabilities [Line Items] | ||||
Trade payables | $ 302,009 | $ 226,405 | ||
Other accrued liabilities | 108,939 | 86,175 | ||
Accrued payroll and related liabilities | 106,669 | 105,111 | ||
Accrued warranty | 46,678 | 27,395 | $ 20,737 | $ 12,159 |
Income taxes payable | 4,065 | 4,771 | ||
Accounts payable and accrued liabilities | $ 568,360 | $ 449,857 |
Warranty Accrual - Warranty Acc
Warranty Accrual - Warranty Accrual Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Product Liability Contingency [Line Items] | |||
Balance at beginning of period | $ 27,395 | $ 20,737 | $ 12,159 |
Charged to cost of revenue | 5,014 | 12,323 | 6,872 |
Acquisition | 23,895 | 3,526 | |
Payments | (8,594) | (5,217) | (2,649) |
Currency translation effect | (1,032) | (448) | 829 |
Balance at end of period | $ 46,678 | $ 27,395 | $ 20,737 |
Notes Payable, Net - Notes Paya
Notes Payable, Net - Notes Payable, Net (Detail) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Debt Instrument [Line Items] | ||
Term loans | $ 521,544 | $ 179,923 |
Other notes payable | 14,001 | 14,798 |
Notes payable, gross | 860,545 | 469,721 |
Debt discount and issuance costs | (37,660) | (33,516) |
Notes payable, net | 822,885 | 436,205 |
2.875% Convertible senior notes, due 2024 | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | 275,000 | $ 275,000 |
2.25% Convertible senior notes, due 2024 | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | $ 50,000 |
Notes Payable, Net - Additional
Notes Payable, Net - Additional Information (Detail) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | |
Aug. 31, 2019USD ($)$ / sharesshares | Aug. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||
Debt instrument amount outstanding | $ 860,545 | $ 469,721 |
Debt issuance costs | 4,568 | 1,824 |
2024 Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior term debt | $ 300,000 | |
Debt instrument, maturity date | Jun. 30, 2024 | |
Periodic Principal Payment | $ 3,750 | |
Balloon payment | $ 232,500 | |
Swap agreement interest rate | 50.00% | |
Fixed interest rate | 3.19% | |
Debt instrument amount outstanding | $ 300,000 | |
2023 Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior term debt | $ 225,000 | |
Debt instrument, maturity date | Sep. 30, 2023 | |
Periodic Principal Payment | $ 1,970 | |
Balloon payment | $ 185,600 | |
Swap agreement interest rate | 50.00% | |
Fixed interest rate | 4.49% | |
Debt instrument amount outstanding | $ 217,100 | |
2.875% Convertible senior notes, due 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 2.875% | |
Description of long term debt | Convertible senior notes, due 2024, bear interest at a fixed rate of 2.875%, paid semi-annually in arrears on February 1st and August 1st. | |
Frequency of payments | Semi-annually | |
Debt instrument, maturity date | Feb. 1, 2024 | |
Convertible notes initial conversion rate, shares per $1,000 principal amount | 16.6234 | |
Convertible notes conversion rate, per share | $ / shares | $ 60.16 | |
Initial debt discount | $ 33,100 | |
Debt issuance costs | $ 8,000 | |
Number of shares reserved for future issuance | shares | 6.3 | |
2.875% Convertible senior notes, due 2024 | ASC 470-20 | ||
Debt Instrument [Line Items] | ||
Convertible notes, fair value | $ 241,900 | |
Proceeds from the issuance of the notes | 275,000 | |
Convertible notes, equity component | 33,100 | 33,100 |
2.875% Convertible senior notes, due 2024 | ASC 470-20 | Additional Paid-in Capital | ||
Debt Instrument [Line Items] | ||
Convertible senior notes - equity component, net of tax | $ 12,300 | $ 12,300 |
2.875% Convertible senior notes, due 2024 | Measurement Input, Risk Free Interest Rate [Member] | ASC 470-20 | ||
Debt Instrument [Line Items] | ||
Fair value assumed, interest rate | 0.05 | |
2.25% Convertible senior notes, due 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 2.25% | |
Description of long term debt | Convertible senior notes, due 2024, bear interest at a fixed rate of 2.25%, paid semi-annually in arrears on February 1st and August 1st. | |
Frequency of payments | Semi-annually | |
Debt instrument, maturity date | Jul. 26, 2024 | |
Convertible notes initial conversion rate, shares per $1,000 principal amount | 22.1910 | |
Convertible notes conversion rate, per share | $ / shares | $ 45.06 | |
Initial debt discount | $ 4,900 | |
Number of shares reserved for future issuance | shares | 1.5 | |
2.25% Convertible senior notes, due 2024 | ASC 470-20 | ||
Debt Instrument [Line Items] | ||
Convertible notes, fair value | $ 45,100 | |
Proceeds from the issuance of the notes | 50,000 | |
Convertible notes, equity component | 4,900 | |
2.25% Convertible senior notes, due 2024 | ASC 470-20 | Additional Paid-in Capital | ||
Debt Instrument [Line Items] | ||
Convertible senior notes - equity component, net of tax | $ 1,200 | |
2.25% Convertible senior notes, due 2024 | Measurement Input, Risk Free Interest Rate [Member] | ASC 470-20 | ||
Debt Instrument [Line Items] | ||
Fair value assumed, interest rate | 0.05 | |
Other Term Loan Due April 2020 to September 2022 | ||
Debt Instrument [Line Items] | ||
Senior term debt | $ 4,400 | |
Other Term Loan Due November 2019 and September 2020 | ||
Debt Instrument [Line Items] | ||
Unsecured debt | $ 14,000 | |
LIBOR | 2024 Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.50% | |
LIBOR | 2023 Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.50% |
Notes Payable, Net - Principal
Notes Payable, Net - Principal Payments on Notes Payable (Detail) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 | |
Debt Instrument [Line Items] | |||
2020 | $ 29,084 | ||
2021 | 30,921 | ||
2022 | 23,258 | ||
2023 | 22,907 | ||
2024 | [1] | 754,375 | |
Thereafter | 0 | ||
Notes payable, gross | $ 860,545 | $ 469,721 | |
[1] | The repayment of the $275.0 million of Convertible senior notes due February 2024 and the $50.0 million of Convertible senior notes due July 2024 is assumed to occur at the scheduled maturity in 2024 instead of assuming an earlier conversion by the holders. |
Notes Payable, Net - Principa_2
Notes Payable, Net - Principal Payments on Notes Payable (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Aug. 31, 2019USD ($) | |
February 2024 Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Convertible senior notes | $ 275 |
July 2024 Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Convertible senior notes | $ 50 |
2024 Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument, redemption, description | The repayment of the $275.0 million of Convertible senior notes due February 2024 and the $50.0 million of Convertible senior notes due July 2024 is assumed to occur at the scheduled maturity in 2024 instead of assuming an earlier conversion by the holders. |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 12 Months Ended |
Aug. 31, 2019USD ($) | |
Foreign Exchange Contracts | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 71,600,000 |
Amount reclassified to revenue or cost of revenue in the next year | 900,000 |
Interest rate swap contracts | |
Derivative [Line Items] | |
Unrealized pre-tax gain (loss) that would be reclassified to interest expense in the next year | 200,000 |
Interest rate swap contracts | Derivatives maturing on september 2023 | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 109,500,000 |
Maturity date | 2023-09 |
Interest rate swap contracts | Derivatives maturing on june 2024 | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 150,000,000 |
Maturity date | 2024-06 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 64 | $ 1,557 |
Liability Derivatives | 11,279 | 1,566 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 64 | 1,481 |
Liability Derivatives | 10,692 | 1,212 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 64 | 700 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 437 | 1,211 |
Designated as Hedging Instrument | Interest rate swap contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 10,255 | 1 |
Designated as Hedging Instrument | Interest rate swap contracts | Intangible and Other Assets, Net | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 781 | |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 76 | |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 587 | $ 354 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on Statements of Income (Detail) - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income on derivatives | $ 213 | $ 1,051 |
Gain (loss) recognized in OCI on derivatives (effective portion) | (13,264) | (119) |
Gain (loss) reclassified accumulated OCI income (effective portion) | (2,339) | 418 |
Gain (loss) recognized on derivative (ineffective portion and amount excluded from effectiveness testing) | 1,694 | 1,160 |
Foreign Exchange Forward | Interest and Foreign Exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income on derivatives | 213 | 1,052 |
Foreign Exchange Forward | Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives (effective portion) | (1,261) | (658) |
Gain (loss) reclassified accumulated OCI income (effective portion) | (764) | 1,145 |
Gain (loss) recognized on derivative (ineffective portion and amount excluded from effectiveness testing) | 1,346 | 854 |
Foreign Exchange Forward | Cost Of Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives (effective portion) | (421) | (1,093) |
Gain (loss) reclassified accumulated OCI income (effective portion) | (1,030) | (429) |
Gain (loss) recognized on derivative (ineffective portion and amount excluded from effectiveness testing) | 935 | 306 |
Interest rate swap contracts | Interest and Foreign Exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income on derivatives | (1) | |
Gain (loss) recognized in OCI on derivatives (effective portion) | (11,582) | 1,632 |
Gain (loss) reclassified accumulated OCI income (effective portion) | (545) | $ (298) |
Gain (loss) recognized on derivative (ineffective portion and amount excluded from effectiveness testing) | $ (587) |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | 72 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2019 | Jan. 05, 2018 | |
Stockholders Equity Note [Line Items] | |||||
Shares available for grant | 849,522 | 1,050,675 | 233,271 | 849,522 | |
Performance based share based compensation | 313,540 | 317,036 | 269,705 | ||
Share based compensation, non vested shares | 397,260 | 397,260 | |||
Additional shares available for grant | 397,260 | ||||
Unamortized compensation cost of restricted stock grants | $ 15,000,000 | $ 15,000,000 | |||
2017 Amended and Restated Stock Incentive Plan | |||||
Stockholders Equity Note [Line Items] | |||||
Number of shares reserved for future issuance | 1,100,000 | ||||
Maximum aggregate number of common shares authorized for issuance | 5,425,000 | ||||
Selling, Administrative and Cost of Revenue | |||||
Stockholders Equity Note [Line Items] | |||||
Restricted stock compensation expense | $ 12,400,000 | $ 17,200,000 | $ 20,200,000 | ||
Share Repurchase Program - 2014 | |||||
Stockholders Equity Note [Line Items] | |||||
Repurchase of common stock, shares | 0 | 0 | 3,206,226 | ||
Stock repurchase program total cost of repurchased shares | $ 137,000,000 | ||||
Remaining authorized repurchase amount | $ 100,000,000 | $ 100,000,000 | |||
Repurchase program expiration date | Mar. 31, 2021 | ||||
Unvested Restricted Stock Grants | |||||
Stockholders Equity Note [Line Items] | |||||
Share based compensation, non vested shares | 697,949 | 788,744 | 697,949 | ||
Fair value of awards granted | $ 17,400,000 | $ 15,200,000 | $ 11,300,000 | ||
Restricted Stock | Minimum | |||||
Stockholders Equity Note [Line Items] | |||||
Vesting period of compensation expense | 1 year | ||||
Restricted Stock | Maximum | |||||
Stockholders Equity Note [Line Items] | |||||
Vesting period of compensation expense | 3 years |
Equity - Summary of Restricted
Equity - Summary of Restricted Stock Share and Restricted Stock Unit Grant Transactions for Shares, both Vested and Unvested (Detail) - shares | 12 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | ||
Reconciliation of Restricted Stock Activity [Line Items] | ||||
Beginning Balance | [1] | 4,374,325 | 4,091,729 | 3,848,230 |
Granted | 313,540 | 317,036 | 269,705 | |
Forfeited | (112,387) | (34,440) | (26,206) | |
Ending Balance | [1] | 4,575,478 | 4,374,325 | 4,091,729 |
[1] | Balance represents cumulative grants net of forfeitures. |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share (Detail) - shares shares in Thousands | 12 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | ||
Earnings Per Share Disclosure [Line Items] | ||||
Weighted average basic common shares outstanding | [1] | 32,615 | 30,857 | 29,225 |
Dilutive effect of restricted stock units | [2] | 550 | 157 | 42 |
Weighted average diluted common shares outstanding | 33,165 | 32,835 | 32,562 | |
3.5% Convertible Senior Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Dilutive effect of convertible notes | [3] | 1,821 | 3,295 | |
2.875% Convertible Senior Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Dilutive effect of convertible notes | [4] | |||
2.25% Convertible Senior Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Dilutive effect of convertible notes | [5] | |||
[1] | Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. No restricted stock and restricted stock units were anti-dilutive for the years ended August 31, 2019, 2018 and 2017. | |||
[2] | Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. | |||
[3] | The dilutive effect of the 3.5% Convertible notes was included as they were considered dilutive under the “if converted” method as further discussed below for the years ended August 31, 2018 and 2017. The 3.5% Convertible notes matured on April 1, 2018. | |||
[4] | The 2.875% Convertible notes were issued in February 2017. The dilutive effect of the 2.875% Convertible notes was excluded for the years ended August 31, 2019, 2018 and 2017 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. | |||
[5] | The 2.25% Convertible notes were issued in July 2019. The dilutive effect of the 2.25% Convertible notes was excluded for the year ended August 31, 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. |
Earnings Per Share - Reconcil_2
Earnings Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share (Parenthetical) (Detail) - shares | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
3.5% Convertible Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 3.50% | ||
Debt instrument, maturity date | Apr. 1, 2018 | ||
2.875% Convertible Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.875% | ||
Debt instrument, maturity date | Feb. 1, 2024 | ||
2.25% Convertible Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.25% | ||
Debt instrument, maturity date | Jul. 26, 2024 | ||
Restricted Stock | |||
Earnings Per Share Disclosure [Line Items] | |||
Anti-dilutive shares excluded from calculation | 0 | 0 | 0 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) | Aug. 31, 2019 |
2.875% Convertible Senior Notes | |
Debt instrument, interest rate | 2.875% |
2.25% Convertible Senior Notes | |
Debt instrument, interest rate | 2.25% |
3.5% Convertible Senior Notes | |
Debt instrument, interest rate | 3.50% |
Earnings Per Share - Approach t
Earnings Per Share - 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, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | ||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||||||
Net earnings attributable to Greenbrier | $ 35,107 | $ 15,248 | $ 2,765 | $ 17,956 | $ 30,935 | $ 32,951 | $ 61,642 | $ 26,253 | $ 71,076 | $ 151,781 | $ 116,067 | |||||||||||
Weighted average diluted common shares outstanding | 33,165 | 32,835 | 32,562 | |||||||||||||||||||
Diluted earnings per share | $ 1.06 | [1] | $ 0.46 | [1] | $ 0.08 | [1] | $ 0.54 | [1] | $ 0.94 | [2] | $ 1.01 | [2] | $ 1.91 | [2] | $ 0.83 | [2] | $ 2.14 | [3] | $ 4.68 | [3] | $ 3.65 | [3] |
3.5% Convertible Senior Notes | ||||||||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||||||
Interest and debt issuance costs on the 3.5% Convertible notes, net of tax | $ 2,031 | $ 2,932 | ||||||||||||||||||||
Earnings before interest and debt issuance costs on the 3.5% Convertible notes | $ 71,076 | $ 153,812 | $ 118,999 | |||||||||||||||||||
[1] | Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. | |||||||||||||||||||||
[2] | Quarterly amounts do not total to the year to date amount as each period is calculated discretely. 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 2.875% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 3.5% Convertible notes during the periods in which they were outstanding. 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 3.5% 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. | |||||||||||||||||||||
[3] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on the 3.5% convertible notes Weighted average diluted common shares outstanding |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 20, 2018 | Jun. 30, 2017 | Jul. 31, 2014 | |
Related Party Transaction [Line Items] | ||||||
Carrying amount of investment in unconsolidated affiliates | $ 5.8 | |||||
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 | $ 18 | $ 16 | $ 130 | |||
Related party expenses | 1.5 | 0.5 | 0.5 | |||
Leasing Warehouse | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue recognize from railcars sold | $ 6 | 48 | ||||
Greenbrier | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership in entity | 40.00% | 40.00% | ||||
Axis LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership in entity | 41.90% | |||||
Axis LLC | Railcar Components | ||||||
Related Party Transaction [Line Items] | ||||||
Purchases of goods from related party | $ 1.6 | |||||
GBW Railcar Services LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership in entity | 50.00% | 50.00% | ||||
Related party transaction other revenue | 5 | 5 | ||||
Sale of wheel sets and components | 16.5 | 18.3 | ||||
Related party expenses | $ 0.4 | $ 1 | ||||
GBW Railcar Services LLC | Watco Companies LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership in entity | 50.00% | |||||
Amsted-Maxion | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership in entity | 24.50% | |||||
Note receivable | $ 10 | |||||
Greenbrier-Maxion | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership in entity | 60.00% | |||||
Note receivable | $ 18.4 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense of Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Current | |||||||||||
Federal | $ 18,894 | $ 28,357 | $ 22,710 | ||||||||
State | 4,775 | 3,244 | 305 | ||||||||
Foreign | 37,391 | 38,628 | 35,893 | ||||||||
Current Income Tax Expense (Benefit), Total | 61,060 | 70,229 | 58,908 | ||||||||
Deferred | |||||||||||
Federal | (8,559) | (33,459) | 9,418 | ||||||||
State | (2,542) | (344) | (1,467) | ||||||||
Foreign | (8,433) | (3,690) | (2,732) | ||||||||
Total Deferred Income Tax Expense (Benefit) | (19,534) | (37,493) | 5,219 | ||||||||
Change in valuation allowance | 62 | 157 | (113) | ||||||||
Income tax expense | $ 17,197 | $ 13,008 | $ 2,248 | $ 9,135 | $ 10,115 | $ 15,944 | $ (11,301) | $ 18,135 | $ 41,588 | $ 32,893 | $ 64,014 |
Income Taxes - Additional infor
Income Taxes - Additional information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Statutory federal corporate tax rate | 21.00% | 25.70% | 35.00% |
Tax benefit due to remeasurement of deferred tax assets and liabilities | $ 33.6 | ||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | $ 8.9 | 6.9 | |
Income tax and earnings from unconsolidated affiliates,Domestic u.s. operations | 75 | 110.8 | $ 123.2 |
Income tax and earnings from unconsolidated affiliates,Foreign operations | 78.2 | 112.8 | $ 113 |
Net increase (Decrease) in the valuation allowance | 0.1 | ||
Unrecognized tax benefits, excluding interest | 1.6 | 1.6 | |
Accrued interest related to uncertain tax provisions | 0.6 | 0.2 | |
Interest benefit relating to reserves for uncertain tax provisions | 0.4 | $ 0.4 | |
State | |||
Operating Loss Carryforwards [Line Items] | |||
Credit carryforwards | $ 1.4 | ||
Credit carryforwards expiration Year | 2021 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 19.6 | ||
Operating loss carryforwards expiration dates | 2020 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Effective and Statutory Tax Rates on Continuing Operations (Detail) | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Income Tax [Line Items] | |||
Federal statutory rate | 21.00% | 25.70% | 35.00% |
State income taxes, net of federal benefit | 1.30% | 0.80% | 0.10% |
Foreign operations, excluding transition tax | 5.80% | 1.80% | (3.40%) |
Transition tax on foreign earnings | 0.50% | 3.10% | |
Remeasurement of domestic deferred taxes | (15.00%) | ||
Change in valuation allowance | 0.10% | ||
Noncontrolling interest in flow-through entity | (5.70%) | (2.40%) | (6.00%) |
Permanent differences and other | 4.20% | 0.60% | 1.40% |
Effective tax rate | 27.10% | 14.70% | 27.10% |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences that give rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Deferred tax assets: | ||
Accrued payroll and related liabilities | $ 21,978 | $ 18,461 |
Deferred revenue | 8,296 | 10,642 |
Inventories and other | 15,392 | 10,518 |
Maintenance and warranty accruals | 3,596 | 7,201 |
Net operating losses | 3,182 | 2,002 |
Investment and asset tax credits | 1,560 | 1,439 |
Deferred Tax Assets, Gross, Total | 54,004 | 50,263 |
Deferred tax liabilities: | ||
Fixed assets | 56,760 | 70,942 |
Original issue discount | 6,253 | 6,099 |
Intangibles | 2,813 | 2,474 |
Other | 1,432 | 1,831 |
Deferred Tax Liabilities, Gross, Total | 67,258 | 81,346 |
Valuation allowance | 692 | 657 |
Net deferred tax liability | $ 13,946 | $ 31,740 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Income Tax [Line Items] | |||
Unrecognized Tax Benefit - Opening Balance | $ 1,608 | $ 1,820 | $ 942 |
Gross increases - tax positions in prior period | 237 | 1,368 | |
Gross decreases - tax positions in prior period | (3) | (449) | (53) |
Settlements | |||
Lapse of statute of limitations | (437) | ||
Unrecognized Tax Benefit - Ending Balance | $ 1,605 | $ 1,608 | $ 1,820 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | Aug. 20, 2018FacilitySegment | Aug. 19, 2018Segment | Aug. 31, 2019Segment |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 3 | 4 | 3 |
Number of railcars repair shops returned to business | Facility | 12 |
Segment Information - Segments
Segment Information - Segments Internal Financial Reports (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 914,245 | $ 856,152 | $ 658,671 | $ 604,523 | $ 689,206 | $ 641,387 | $ 629,336 | $ 559,535 | $ 3,033,591 | $ 2,519,464 | $ 2,169,164 |
Earnings (loss) from operations | 76,419 | 53,189 | 18,054 | 36,454 | 59,134 | 71,539 | 60,870 | 61,442 | 184,116 | 252,985 | 260,432 |
Assets | 2,990,637 | 2,465,464 | 2,990,637 | 2,465,464 | 2,397,705 | ||||||
Depreciation and amortization | 83,731 | 74,356 | 65,129 | ||||||||
Capital expenditures | 198,233 | 176,848 | 86,065 | ||||||||
Manufacturing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 802,103 | 681,588 | 476,019 | 471,789 | 571,175 | 510,099 | 511,827 | 451,485 | 2,431,499 | 2,044,586 | 1,725,188 |
Earnings (loss) from operations | 217,583 | 240,901 | 295,334 | ||||||||
Wheels, Repair & Parts | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 85,701 | 124,980 | 125,278 | 108,543 | 85,787 | 94,515 | 88,710 | 78,011 | 444,502 | 347,023 | 312,679 |
Earnings (loss) from operations | (2,941) | 16,731 | 14,984 | ||||||||
Leasing & Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 26,441 | $ 49,584 | $ 57,374 | $ 24,191 | 32,244 | $ 36,773 | $ 28,799 | $ 30,039 | 157,590 | 127,855 | 131,297 |
Earnings (loss) from operations | 64,763 | 88,481 | 31,904 | ||||||||
Operating Segments | Manufacturing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,528,585 | 2,162,743 | 1,744,479 | ||||||||
Earnings (loss) from operations | 223,953 | 258,622 | 296,356 | ||||||||
Assets | 1,606,571 | 1,020,757 | 1,606,571 | 1,020,757 | 914,450 | ||||||
Depreciation and amortization | 49,240 | 44,225 | 33,807 | ||||||||
Capital expenditures | 85,155 | 59,707 | 54,973 | ||||||||
Operating Segments | Wheels, Repair & Parts | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 492,768 | 388,517 | 343,540 | ||||||||
Earnings (loss) from operations | (2,039) | 19,479 | 17,287 | ||||||||
Assets | 306,725 | 306,756 | 306,725 | 306,756 | 236,315 | ||||||
Depreciation and amortization | 13,024 | 10,771 | 11,143 | ||||||||
Capital expenditures | 13,291 | 5,204 | 3,129 | ||||||||
Operating Segments | Leasing & Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 185,830 | 139,702 | 143,109 | ||||||||
Earnings (loss) from operations | 90,290 | 98,777 | 43,003 | ||||||||
Assets | 708,799 | 578,818 | 708,799 | 578,818 | 535,323 | ||||||
Depreciation and amortization | 21,467 | 19,360 | 20,179 | ||||||||
Capital expenditures | 99,787 | 111,937 | 27,963 | ||||||||
Operating Segments | Unallocated Amount to Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 368,542 | $ 559,133 | 368,542 | 559,133 | 711,617 | ||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (173,592) | (171,498) | (61,964) | ||||||||
Earnings (loss) from operations | (32,799) | (30,765) | (14,424) | ||||||||
Intersegment Eliminations | Manufacturing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 97,086 | 118,157 | 19,291 | ||||||||
Earnings (loss) from operations | 6,370 | 17,721 | 1,022 | ||||||||
Intersegment Eliminations | Wheels, Repair & Parts | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 48,266 | 41,494 | 30,861 | ||||||||
Earnings (loss) from operations | 902 | 2,748 | 2,303 | ||||||||
Intersegment Eliminations | Leasing & Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 28,240 | 11,847 | 11,812 | ||||||||
Earnings (loss) from operations | 25,527 | 10,296 | 11,099 | ||||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings (loss) from operations | $ (95,289) | $ (93,128) | $ (81,790) |
Segment Information - Summary o
Segment Information - Summary of Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Revenue | $ 914,245 | $ 856,152 | $ 658,671 | $ 604,523 | $ 689,206 | $ 641,387 | $ 629,336 | $ 559,535 | $ 3,033,591 | $ 2,519,464 | $ 2,169,164 | |
Assets | 2,990,637 | 2,465,464 | 2,990,637 | 2,465,464 | 2,397,705 | |||||||
UNITED STATES | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Revenue | [1] | 2,115,934 | 1,840,877 | 1,674,517 | ||||||||
Assets | 2,110,864 | 1,677,144 | 2,110,864 | 1,677,144 | 1,307,239 | |||||||
Foreign | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Revenue | [1] | 917,657 | 678,587 | 494,647 | ||||||||
Mexico | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Assets | 628,511 | 517,543 | 628,511 | 517,543 | 791,974 | |||||||
Europe | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Assets | $ 251,262 | $ 270,777 | $ 251,262 | $ 270,777 | $ 298,492 | |||||||
[1] | Revenue is presented on the basis of geographic location of customers. |
Segment Information - Reconcili
Segment Information - Reconciliation of Earnings from Operations to Earnings Before Income Tax and Loss from Unconsolidated Affiliates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||||||||
Earnings from operations | $ 76,419 | $ 53,189 | $ 18,054 | $ 36,454 | $ 59,134 | $ 71,539 | $ 60,870 | $ 61,442 | $ 184,116 | $ 252,985 | $ 260,432 |
Interest and foreign exchange | 7,501 | 9,770 | 9,237 | 4,404 | 8,786 | 6,533 | 7,029 | 7,020 | 30,912 | 29,368 | 24,192 |
Earnings before income tax and loss from unconsolidated affiliates | $ 68,918 | $ 43,419 | $ 8,817 | $ 32,050 | $ 50,348 | $ 65,006 | $ 53,841 | $ 54,422 | $ 153,204 | $ 223,617 | $ 236,240 |
Customer Concentration - Additi
Customer Concentration - Additional Information (Detail) - Customer Concentration Risk | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Sales Revenue, Net | Customer One Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 26.00% | 20.00% | 20.00% |
Sales Revenue, Net | Customer Two Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Accounts Receivable | Customer One Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | 19.00% |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Railcar Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease expense | $ 7.7 | $ 7.5 | $ 7.6 |
Domestic railcar repair facilities, office space and certain manufacturing and office equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease expense | $ 12.2 | $ 8.7 | $ 9.4 |
Lease Commitments - Aggregate M
Lease Commitments - Aggregate Minimum Future Amounts Payable Under Non-Cancelable Railcar Equipment Leases (Detail) - Railcar Equipment $ in Thousands | Aug. 31, 2019USD ($) |
Operating Leased Assets [Line Items] | |
2020 | $ 6,200 |
2021 | 2,965 |
2022 | 1,762 |
2023 | 1,762 |
2024 | 1,413 |
Thereafter | 376 |
Operating Leases, Future Minimum Payments Due, Total | $ 14,478 |
Lease Commitments - Aggregate_2
Lease Commitments - 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, 2019USD ($) |
Operating Leased Assets [Line Items] | |
2020 | $ 8,099 |
2021 | 5,781 |
2022 | 3,965 |
2023 | 3,395 |
2024 | 2,109 |
Thereafter | 9,821 |
Operating Leases, Future Minimum Payments Due, Total | $ 33,170 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jan. 06, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Aug. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |||
Remedial investigation and feasibility study | $ 110,000,000 | ||
Performance Guarantee | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Letter of credit facility outstanding amount | $ 24,400,000 | ||
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% | ||
Amsted-Maxion | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Note receivable | 10,000,000 | ||
Greenbrier-Maxion | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Note receivable | $ 18,400,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 | |
Carrying (Reported) Amount, Fair Value Disclosure | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | [1] | $ 860,545 | $ 469,721 |
Estimate of Fair Value, Fair Value Disclosure | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | $ 838,728 | $ 517,925 | |
[1] | Carrying amount disclosed in this table excludes debt discount and debt issuance costs. |
Fair Value Measures - Assets an
Fair Value Measures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 | |
Assets: | |||
Derivative financial instruments | $ 64 | $ 1,557 | |
Nonqualified savings plan investments | 27,967 | 26,299 | |
Cash equivalents | 68,100 | 126,430 | |
Assets, Fair Value Disclosure, Total | 96,131 | 154,286 | |
Liabilities: | |||
Derivative financial instruments | 11,279 | 1,566 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Nonqualified savings plan investments | 27,967 | 26,299 | |
Cash equivalents | 68,100 | 126,430 | |
Assets, Fair Value Disclosure, Total | 96,067 | 152,729 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | [1] | 64 | 1,557 |
Assets, Fair Value Disclosure, Total | [1] | 64 | 1,557 |
Liabilities: | |||
Derivative financial instruments | [1] | $ 11,279 | $ 1,566 |
[1] | Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 14 - Derivative Instruments for further discussion. |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | ||||||||||||
Revenue | ||||||||||||||||||||||
Revenue | $ 914,245 | $ 856,152 | $ 658,671 | $ 604,523 | $ 689,206 | $ 641,387 | $ 629,336 | $ 559,535 | $ 3,033,591 | $ 2,519,464 | $ 2,169,164 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | 780,708 | 749,580 | 604,827 | 531,990 | 583,319 | 532,880 | 523,989 | 470,221 | 2,667,105 | 2,110,409 | 1,747,865 | |||||||||||
Margin | 133,537 | 106,572 | 53,844 | 72,533 | 105,887 | 108,507 | 105,347 | 89,314 | 366,486 | 409,055 | 421,299 | |||||||||||
Selling and administrative | 60,607 | 54,377 | 47,892 | 50,432 | 51,309 | 51,793 | 50,294 | 47,043 | 213,308 | 200,439 | 170,607 | |||||||||||
Net gain on disposition of equipment | (3,489) | (11,019) | (12,102) | (14,353) | (4,556) | (14,825) | (5,817) | (19,171) | (40,963) | (44,369) | (9,740) | |||||||||||
Goodwill impairment | 10,025 | 10,025 | ||||||||||||||||||||
Earnings from operations | 76,419 | 53,189 | 18,054 | 36,454 | 59,134 | 71,539 | 60,870 | 61,442 | 184,116 | 252,985 | 260,432 | |||||||||||
Other costs | ||||||||||||||||||||||
Interest and foreign exchange | 7,501 | 9,770 | 9,237 | 4,404 | 8,786 | 6,533 | 7,029 | 7,020 | 30,912 | 29,368 | 24,192 | |||||||||||
Earnings before income tax and earnings (loss) from unconsolidated affiliates | 68,918 | 43,419 | 8,817 | 32,050 | 50,348 | 65,006 | 53,841 | 54,422 | 153,204 | 223,617 | 236,240 | |||||||||||
Income tax benefit (expense) | (17,197) | (13,008) | (2,248) | (9,135) | (10,115) | (15,944) | 11,301 | (18,135) | (41,588) | (32,893) | (64,014) | |||||||||||
Earnings (loss) from unconsolidated affiliates | (922) | (4,564) | (786) | 467 | (3,075) | (12,823) | 147 | (2,910) | (5,805) | (18,661) | (11,764) | |||||||||||
Net earnings | 50,799 | 25,847 | 5,783 | 23,382 | 37,158 | 36,239 | 65,289 | 33,377 | 105,811 | 172,063 | 160,462 | |||||||||||
Net earnings attributable to noncontrolling interest | (15,692) | (10,599) | (3,018) | (5,426) | (6,223) | (3,288) | (3,647) | (7,124) | (34,735) | (20,282) | (44,395) | |||||||||||
Net earnings attributable to Greenbrier | $ 35,107 | $ 15,248 | $ 2,765 | $ 17,956 | $ 30,935 | $ 32,951 | $ 61,642 | $ 26,253 | $ 71,076 | $ 151,781 | $ 116,067 | |||||||||||
Basic earnings per common share | $ 1.08 | [1] | $ 0.47 | [1] | $ 0.08 | [1] | $ 0.55 | [1] | $ 0.95 | [2] | $ 1.03 | [2] | $ 2.10 | [2] | $ 0.90 | [2] | $ 2.18 | [3] | $ 4.92 | [2] | $ 3.97 | [3] |
Diluted earnings per common share | $ 1.06 | [1] | $ 0.46 | [1] | $ 0.08 | [1] | $ 0.54 | [1] | $ 0.94 | [2] | $ 1.01 | [2] | $ 1.91 | [2] | $ 0.83 | [2] | $ 2.14 | [4] | $ 4.68 | [4] | $ 3.65 | [4] |
Manufacturing | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
Revenue | $ 802,103 | $ 681,588 | $ 476,019 | $ 471,789 | $ 571,175 | $ 510,099 | $ 511,827 | $ 451,485 | $ 2,431,499 | $ 2,044,586 | $ 1,725,188 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | 686,036 | 590,788 | 442,996 | 417,805 | 489,517 | 427,875 | 429,165 | 380,850 | 2,137,625 | 1,727,407 | 1,373,967 | |||||||||||
Earnings from operations | 217,583 | 240,901 | 295,334 | |||||||||||||||||||
Wheels, Repair & Parts | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
Revenue | 85,701 | 124,980 | 125,278 | 108,543 | 85,787 | 94,515 | 88,710 | 78,011 | 444,502 | 347,023 | 312,679 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | 81,636 | 119,821 | 118,455 | 100,978 | 79,266 | 85,850 | 80,708 | 72,506 | 420,890 | 318,330 | 288,336 | |||||||||||
Earnings from operations | (2,941) | 16,731 | 14,984 | |||||||||||||||||||
Leasing & Services | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
Revenue | 26,441 | 49,584 | 57,374 | 24,191 | 32,244 | 36,773 | 28,799 | 30,039 | 157,590 | 127,855 | 131,297 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | $ 13,036 | $ 38,971 | $ 43,376 | $ 13,207 | $ 14,536 | $ 19,155 | $ 14,116 | $ 16,865 | 108,590 | 64,672 | 85,562 | |||||||||||
Earnings from operations | $ 64,763 | $ 88,481 | $ 31,904 | |||||||||||||||||||
[1] | Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. | |||||||||||||||||||||
[2] | Quarterly amounts do not total to the year to date amount as each period is calculated discretely. 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 2.875% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 3.5% Convertible notes during the periods in which they were outstanding. 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 3.5% 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. | |||||||||||||||||||||
[3] | 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 2024 Convertible Notes using the treasury stock method when dilutive, restricted stock units that are not considered participating securities, restricted stock units that are subject to performance criteria for which actual levels of performance above target have been achieved and the dilutive effect of shares underlying the 2018 Convertible Notes, during the periods in which they were outstanding, using the “if converted” method in which debt issuance and interest costs, net of tax, were added back to net earnings. The 2018 Convertible notes matured on April 1, 2018. | |||||||||||||||||||||
[4] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on the 3.5% convertible notes Weighted average diluted common shares outstanding |
Quarterly Results of Operatio_4
Quarterly Results of Operations (Unaudited) - Quarterly Results of Operations (Parenthetical) (Detail) | Aug. 31, 2019 |
2.875% Convertible Senior Notes | |
Debt Instrument Interest Rate | 2.875% |
2.25% Convertible Senior Notes | |
Debt Instrument Interest Rate | 2.25% |
3.5% Convertible Senior Notes | |
Debt Instrument Interest Rate | 3.50% |