Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Aug. 31, 2017 | Oct. 20, 2017 | Feb. 28, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GBX | ||
Entity Registrant Name | GREENBRIER COMPANIES INC | ||
Entity Central Index Key | 923,120 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 28,503,206 | ||
Entity Public Float | $ 1,140,715,538 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 611,466 | $ 222,679 |
Restricted cash | 8,892 | 24,279 |
Accounts receivable, net | 279,964 | 232,517 |
Inventories | 400,127 | 365,805 |
Leased railcars for syndication | 91,272 | 144,932 |
Equipment on operating leases, net | 315,941 | 306,266 |
Property, plant and equipment, net | 428,021 | 329,990 |
Investment in unconsolidated affiliates | 108,255 | 98,682 |
Intangibles and other assets, net | 85,177 | 67,359 |
Goodwill | 68,590 | 43,265 |
Total assets | 2,397,705 | 1,835,774 |
Liabilities and Equity | ||
Revolving notes | 4,324 | |
Accounts payable and accrued liabilities | 415,061 | 369,754 |
Deferred income taxes | 75,791 | 51,619 |
Deferred revenue | 129,260 | 95,721 |
Notes payable, net | 558,228 | 301,853 |
Commitments and contingencies (Notes 21 & 22) | ||
Contingently redeemable noncontrolling interest | 36,148 | |
Greenbrier | ||
Preferred stock - without par value; 25,000 shares authorized; none outstanding | ||
Common stock - without par value; 50,000 shares authorized; 28,503 and 28,205 outstanding at August 31, 2017 and 2016 | 0 | 0 |
Additional paid-in capital | 315,306 | 282,886 |
Retained earnings | 709,103 | 618,178 |
Accumulated other comprehensive loss | (6,279) | (26,753) |
Total equity - Greenbrier | 1,018,130 | 874,311 |
Noncontrolling interest | 160,763 | 142,516 |
Total equity | 1,178,893 | 1,016,827 |
Liabilities and Equity | $ 2,397,705 | $ 1,835,774 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2017 | Aug. 31, 2016 |
Preferred stock, without par value | ||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, outstanding | ||
Common stock, without par value | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares outstanding | 28,503,000 | 28,205,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | ||||
Revenue | ||||||
Revenue | [1] | $ 2,169,164 | $ 2,679,524 | $ 2,605,278 | ||
Cost of revenue | ||||||
Cost of revenue | 1,747,865 | 2,128,087 | 2,067,925 | |||
Margin | 421,299 | 551,437 | 537,353 | |||
Selling and administrative | 170,607 | 158,681 | 151,791 | |||
Net gain on disposition of equipment | (9,740) | (15,796) | (1,330) | |||
Earnings from operations | 260,432 | 408,552 | 386,892 | |||
Other costs | ||||||
Interest and foreign exchange | 24,192 | 13,502 | 11,179 | |||
Earnings before income tax and earnings (loss) from unconsolidated affiliates | 236,240 | 395,050 | 375,713 | |||
Income tax expense | (64,014) | (112,322) | (112,160) | |||
Earnings before earnings (loss) from unconsolidated affiliates | 172,226 | 282,728 | 263,553 | |||
Earnings (loss) from unconsolidated affiliates | (11,764) | 2,096 | 1,756 | |||
Net earnings | 160,462 | 284,824 | 265,309 | |||
Net earnings attributable to noncontrolling interest | (44,395) | (101,611) | (72,477) | |||
Net earnings attributable to Greenbrier | $ 116,067 | $ 183,213 | $ 192,832 | |||
Basic earnings per common share | $ 3.97 | [2] | $ 6.28 | [3] | $ 6.85 | |
Diluted earnings per common share | [4] | $ 3.65 | [2] | $ 5.73 | [3] | $ 5.93 |
Weighted average common shares: | ||||||
Basic | [5] | 29,225 | 29,156 | 28,151 | ||
Diluted | 32,562 | 32,468 | 33,328 | |||
Dividends declared per common share | $ 0.86 | $ 0.81 | $ 0.60 | |||
Manufacturing | ||||||
Revenue | ||||||
Revenue | $ 1,725,188 | $ 2,096,331 | $ 2,136,051 | |||
Cost of revenue | ||||||
Cost of revenue | 1,373,967 | 1,630,554 | 1,691,414 | |||
Earnings from operations | 295,334 | 415,094 | 396,921 | |||
Wheels & Parts | ||||||
Revenue | ||||||
Revenue | 312,679 | 322,395 | 371,237 | |||
Cost of revenue | ||||||
Cost of revenue | 288,336 | 293,751 | 334,680 | |||
Earnings from operations | 14,984 | 19,948 | 27,563 | |||
Leasing & Services | ||||||
Revenue | ||||||
Revenue | 131,297 | 260,798 | 97,990 | |||
Cost of revenue | ||||||
Cost of revenue | 85,562 | 203,782 | 41,831 | |||
Earnings from operations | $ 31,904 | $ 51,723 | $ 41,887 | |||
[1] | Revenue is presented on the basis of geographic location of customers. | |||||
[2] | Quarterly amounts may 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 and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings. | |||||
[3] | Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings. | |||||
[4] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on convertible notes Weighted average diluted common shares outstanding | |||||
[5] | Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. No restricted stock and restricted stock units were anti-dilutive for the years ended August 31, 2017, 2016 and 2015. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | ||
Net earnings | $ 160,462 | $ 284,824 | $ 265,309 | |
Other comprehensive income | ||||
Translation adjustment | 15,488 | (2,204) | (14,009) | |
Reclassification of derivative financial instruments recognized in net earnings | [1] | 3,729 | 2,544 | 737 |
Unrealized gain (loss) on derivative financial instruments | [2] | 1,944 | (5,842) | (1,330) |
Other (net of tax effect) | (665) | (84) | 173 | |
Other comprehensive income | 20,496 | (5,586) | (14,429) | |
Comprehensive income | 180,958 | 279,238 | 250,880 | |
Comprehensive income attributable to noncontrolling interest | (44,417) | (101,573) | (72,321) | |
Comprehensive income attributable to Greenbrier | $ 136,541 | $ 177,665 | $ 178,559 | |
[1] | Net of tax of effect of $1.0 million, $1.2 million and $0.6 million for the years ended August 31, 2017, 2016 and 2015, respectively. | |||
[2] | Net of tax of effect of $0.8 million, $2.1 million and $1.0 million for the years ended August 31, 2017, 2016 and 2015, respectively. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Reclassification of derivative financial instruments recognized in net earnings (loss), tax | $ 1 | $ 1.2 | $ 0.6 |
Unrealized loss on derivative financial instruments, tax | $ 0.8 | $ 2.1 | $ 1 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Contingently Redeemable Noncontrolling Interest | Common Stock Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Attributable to Greenbrier | Attributable to Noncontrolling Interest | Equity Excluding Contingently Redeemable Noncontrolling Interest [Member] | 2024 Convertible Senior NotesAdditional Paid-in Capital | 2024 Convertible Senior NotesTotal Attributable to Greenbrier | 2024 Convertible Senior NotesEquity Excluding Contingently Redeemable Noncontrolling Interest [Member] | 2024 Convertible Senior Notes Issuance CostsAdditional Paid-in Capital | 2024 Convertible Senior Notes Issuance CostsTotal Attributable to Greenbrier | 2024 Convertible Senior Notes Issuance CostsEquity Excluding Contingently Redeemable Noncontrolling Interest [Member] |
Beginning balance (in shares) at Aug. 31, 2014 | 27,364 | ||||||||||||||
Beginning balance at Aug. 31, 2014 | $ 235,763 | $ 282,559 | $ (6,932) | $ 511,390 | $ 62,331 | $ 573,721 | |||||||||
Net earnings | $ 265,309 | 192,832 | 192,832 | 72,477 | 265,309 | ||||||||||
Other comprehensive income (loss), net | (14,429) | (14,273) | (14,273) | (156) | (14,429) | ||||||||||
Noncontrolling interest adjustments | 17,215 | 17,215 | |||||||||||||
Purchase of noncontrolling interest | (80) | (80) | |||||||||||||
Joint venture partner distribution declared | (21,136) | (21,136) | |||||||||||||
Restricted stock awards (net of cancellations) (in shares) | (15) | ||||||||||||||
Restricted stock awards (net of cancellations) | 22,622 | 22,622 | 22,622 | ||||||||||||
Unamortized restricted stock | (24,477) | (24,477) | (24,477) | ||||||||||||
Restricted stock amortization | 19,459 | 19,459 | 19,459 | ||||||||||||
Excess tax benefit from restricted stock awards | 2,908 | 2,908 | 2,908 | ||||||||||||
Conversion of convertible notes, net of debt issuance costs (in shares) | 2,945 | ||||||||||||||
Conversion of convertible notes, net of debt issuance costs | 109,387 | 109,387 | 109,387 | ||||||||||||
Dividends | (16,792) | (16,792) | (16,792) | ||||||||||||
Repurchase of stock | (70,218) | (70,218) | (70,218) | ||||||||||||
Repurchase of stock, shares | (1,387) | ||||||||||||||
Ending Balance (in shares) at Aug. 31, 2015 | 28,907 | ||||||||||||||
Ending Balance at Aug. 31, 2015 | 295,444 | 458,599 | (21,205) | 732,838 | 130,651 | 863,489 | |||||||||
Ending Balance at Aug. 31, 2016 | $ (2,140) | ||||||||||||||
Net earnings | 284,824 | 183,213 | 183,213 | 101,611 | 284,824 | ||||||||||
Other comprehensive income (loss), net | $ (5,586) | (5,548) | (5,548) | (38) | (5,586) | ||||||||||
Noncontrolling interest adjustments | 526 | 526 | |||||||||||||
Purchase of noncontrolling interest | (1,195) | (1,195) | |||||||||||||
Joint venture partner distribution declared | (94,439) | (94,439) | |||||||||||||
Investment by joint venture partner | 5,400 | 5,400 | |||||||||||||
Restricted stock awards (net of cancellations) (in shares) | 353 | ||||||||||||||
Restricted stock awards (net of cancellations) | 6,055 | 6,055 | 6,055 | ||||||||||||
Unamortized restricted stock | (11,555) | (11,555) | (11,555) | ||||||||||||
Restricted stock amortization | 22,502 | 22,502 | 22,502 | ||||||||||||
Excess tax benefit from restricted stock awards | 2,813 | 2,813 | 2,813 | ||||||||||||
Dividends | (23,634) | (23,634) | (23,634) | ||||||||||||
Repurchase of stock | (32,373) | (32,373) | (32,373) | ||||||||||||
Repurchase of stock, shares | (1,055) | ||||||||||||||
Ending Balance (in shares) at Aug. 31, 2016 | 28,205 | 28,205 | |||||||||||||
Ending Balance at Aug. 31, 2016 | $ 1,016,827 | 282,886 | 618,178 | (26,753) | 874,311 | 142,516 | 1,016,827 | ||||||||
Contingently redeemable noncontrolling interest | 38,288 | ||||||||||||||
Ending Balance at Aug. 31, 2017 | $ 36,148 | ||||||||||||||
Net earnings | 160,462 | 116,067 | 116,067 | 46,535 | 162,602 | ||||||||||
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) | |||||||||||||
Acquisition of minority interest | 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) | (2,339) | |||||||||||
Dividends | (25,142) | (25,142) | (25,142) | ||||||||||||
2024 Convertible Senior Notes - equity component, net of tax | $ 20,818 | $ 20,818 | $ 20,818 | $ (671) | $ (671) | $ (671) | |||||||||
Ending Balance (in shares) at Aug. 31, 2017 | 28,503 | 28,503 | |||||||||||||
Ending Balance at Aug. 31, 2017 | $ 1,178,893 | $ 315,306 | $ 709,103 | $ (6,279) | $ 1,018,130 | $ 160,763 | $ 1,178,893 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Cash flows from operating activities | |||
Net earnings | $ 160,462 | $ 284,824 | $ 265,309 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Deferred income taxes | 4,377 | (8,935) | (20,151) |
Depreciation and amortization | 65,129 | 63,345 | 45,156 |
Net gain on disposition of equipment | (9,740) | (15,796) | (1,330) |
Stock based compensation expense | 26,427 | 24,037 | 19,459 |
Accretion of debt discount | 2,340 | ||
Noncontrolling interest adjustments | (677) | 526 | 17,215 |
Other | (845) | 560 | 1,184 |
Decrease (increase) in assets: | |||
Accounts receivable, net | (25,272) | (32,051) | 13,652 |
Inventories | (2,787) | 53,711 | (143,849) |
Leased railcars for syndication | 41,015 | 19,154 | (90,614) |
Other | 17,558 | (16,989) | 575 |
Increase (decrease) in liabilities: | |||
Accounts payable and accrued liabilities | (30,637) | (91,428) | 72,419 |
Deferred revenue | 33,039 | 50,712 | 13,308 |
Net cash provided by operating activities | 280,389 | 331,670 | 192,333 |
Cash flows from investing activities | |||
Acquisitions, net of cash acquired | (27,127) | ||
Proceeds from sales of assets | 24,149 | 103,715 | 5,295 |
Capital expenditures | (86,065) | (139,013) | (105,989) |
Decrease (increase) in restricted cash | 15,387 | (15,410) | 271 |
Investment in and advances to unconsolidated affiliates | (40,632) | (12,855) | (34,453) |
Cash distribution from joint ventures | 550 | 7,855 | 3,345 |
Net cash used in investing activities | (113,738) | (55,708) | (131,531) |
Cash flows from financing activities: | |||
Net changes in revolving notes with maturities of 90 days or less | 4,324 | (49,000) | 49,000 |
Proceeds from revolving notes with maturities longer than 90 days | 44,451 | ||
Repayments of revolving notes with maturities longer than 90 days | (1,888) | (55,644) | |
Proceeds from issuance of notes payable | 276,093 | ||
Repayments of notes payable | (8,297) | (22,299) | (7,475) |
Debt issuance costs | (9,082) | (4,161) | |
Decrease in restricted cash | 11,000 | ||
Repurchase of stock | (33,498) | (69,950) | |
Dividends | (24,890) | (23,303) | (16,491) |
Cash distribution to joint venture partner | (28,511) | (95,092) | (20,375) |
Investment by joint venture partner | 5,400 | ||
Excess tax benefit from restricted stock awards | 2,813 | 2,908 | |
Other | (887) | (248) | |
Net cash provided by (used in) financing activities | 209,637 | (221,915) | (62,824) |
Effect of exchange rate changes | 12,499 | (4,298) | (9,964) |
Increase (decrease) in cash and cash equivalents | 388,787 | 49,749 | (11,986) |
Cash and cash equivalents | |||
Beginning of period | 222,679 | 172,930 | 184,916 |
End of period | 611,466 | 222,679 | 172,930 |
Cash paid during the period for | |||
Interest | 13,962 | 12,277 | 15,535 |
Income taxes, net | 45,280 | 125,455 | 139,960 |
Non-cash activity | |||
Transfer from Leased railcars for syndication to Equipment on operating leases, net | 8,668 | 48,096 | 3,313 |
Transfer from Inventories to Equipment on operating leases, net | 25,069 | ||
Capital expenditures accrued in Accounts payable and accrued liabilities | 16,145 | 8,408 | 8,758 |
Change in Accounts payable and accrued liabilities associated with cash distributions to joint venture partner | 484 | 652 | |
Change in Accounts payable and accrued liabilities associated with repurchase of stock | 1,125 | 268 | |
Transfer of Property, plant and equipment, net to (from) Intangibles and other assets, net | (63) | 588 | 4,045 |
Change in Accounts payable and accrued liabilities associated with dividends declared | $ (252) | $ (331) | 301 |
Conversion of convertible notes, net of debt issuance costs | $ 109,387 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Aug. 31, 2017 | |
Nature of Operations | Note 1 - Nature of Operations The Greenbrier Companies, Inc. and its subsidiaries currently operate in four reportable segments: Manufacturing; Wheels & Parts; Leasing & Services; and GBW Joint Venture. The segments are operationally integrated. The Manufacturing segment which currently operates from facilities in the United States, Mexico, Poland and Romania, produces double-stack intermodal railcars, tank cars, conventional railcars, automotive railcar products and marine vessels. The Wheels & Parts segment performs wheel and axle servicing, as well as production of a variety of parts for the railroad industry in North America. The Leasing & Services segment owns approximately 8,300 railcars (7,200 railcars held as equipment on operating leases, 1,000 held as leased railcars for syndication and 100 held as finished goods inventory) and provides management services for approximately 336,000 railcars for railroads, shippers, carriers, institutional investors and other leasing and transportation companies in North America. The GBW Joint Venture segment provides repair services across North America, including facilities certified by the AAR. The results of GBW’s operations were included as part of Earnings (loss) from unconsolidated affiliates as the Company accounts for their interest in GBW under the equity method of accounting. Through other unconsolidated affiliates the Company also produces rail and industrial castings, tank heads and other components and has an ownership stake in a railcar manufacturer in Brazil. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2017 | |
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) 2017 2016 2015 Allowance for doubtful accounts Balance at beginning of period $ 2,215 $ 2,449 $ 2,033 Additions, net of reversals 370 70 684 Usage (891 ) (277 ) (108 ) Currency translation effect 74 (27 ) (160 ) Balance at end of period $ 1,768 $ 2,215 $ 2,449 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 – 25 years Machinery and equipment 3 – 15 years Other 3 – 7 years Goodwill - Intangibles – Goodwill and Other Intangible and other assets, net - Impairment of long-lived assets - Maintenance obligations - 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 3 – Acquisitions). 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 Foreign (1) Other Accumulated Balance, August 31, 2016 $ (5,492 ) $ (20,832 ) $ (429 ) $ (26,753 ) Other comprehensive loss before reclassifications 1,944 15,466 (665 ) 16,745 Amounts reclassified from accumulated other comprehensive loss 3,729 – – 3,729 Balance, August 31, 2017 $ 181 $ (5,366 ) $ (1,094 ) $ (6,279 ) 1 Primarily relates to the foreign currency translation of the Company’s Leu functional currency operations in Romania and the Zloty functional currency operations in Poland to U.S. Dollars. 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) 2017 2016 (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 3,644 $ 2,135 Revenue and Cost of revenue Interest rate swap contracts 1,057 1,561 Interest and foreign exchange 4,701 3,696 Total before tax (972 ) (1,152 ) Tax benefit $ 3,729 $ 2,544 Net of tax Revenue recognition - Railcars are generally manufactured, repaired or refurbished under firm orders from third parties. Revenue is recognized when new, used, refurbished or repaired railcars are completed, accepted by an unaffiliated customer and contractual contingencies removed. Marine revenue is either recognized on the percentage of completion method during the construction period or on the completed contract method based on the terms of the contract. Under the percentage of completion method, revenue is recognized based on the progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. Under the completed contract method, revenue is not recognized until the project has been fully completed. Cash payments received prior to meeting revenue recognition criteria are accounted for in Deferred revenue. Operating lease revenue is recognized as earned under the lease terms. Certain leases are operated under car hire arrangements whereby revenue is earned based on utilization, car hire rates and terms specified in the lease agreement. The Company sells railcars with leases attached to financial investors. Revenue and cost of revenue associated with railcars that the Company has manufactured are recognized in Manufacturing once sold. 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. For any contracts with multiple elements (i.e. railcars, maintenance, management services, etc.) the Company allocates revenue among the deliverables primarily based upon objective and reliable evidence of the fair value of each element in the arrangement. If objective and reliable evidence of fair value of any element is not available, the Company will use its estimated selling price for purposes of allocating the total arrangement consideration among the elements. Interest and foreign exchange - (In thousands) Years ended August 31, 2017 2016 2015 Interest and foreign exchange: Interest and other expense $ 23,519 $ 17,268 $ 18,975 Foreign exchange (gain) loss 673 (3,766 ) (7,796 ) $ 24,192 $ 13,502 $ 11,179 Research and development - Forward exchange contracts - non-performance. Interest rate instruments - Net earnings per share - Diluted EPS is calculated using the more dilutive of two approaches. The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2024 Convertible notes and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 2018 Convertible notes. Under the “if converted” method, debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes. The 2024 Convertible notes are included in the calculation of both approaches using the treasury stock method when the average stock price is greater than the applicable conversion price. Stock-based compensation - Restricted stock units and restricted stock are accounted for as equity based awards (see Note 15 – Equity). Phantom stock units are accounted for as liability based awards. 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. During the years ended August 31, 2017 and 2016, the Company awarded 151,634 and 268,161 phantom stock units, respectively, which include performance-based grants. As of August 31, 2017, there were a total of 203,768 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. Approximately 203,768 additional phantom stock units may be granted if performance-based phantom stock units vest at stretch level of performance. These additional units are associated with phantom stock unit awards granted during the years ended August 31, 2016 and 2017. The grant date fair value of phantom stock awards was $6.7 million and $7.9 million for the years ended August 31, 2017 and 2016, respectively. Our phantom stock unit grants are considered liability based awards and therefore are re-measured Management estimates Initial Adoption of Accounting Policies 2015-03, Simplifying the Presentation of Debt Issuance Costs 2015-03). 2015-03 In the first quarter of 2017, the Company adopted Accounting Standards Update 2015-15, Interest-Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements 2015-15). 2015-03 In the second quarter of 2017, the Company adopted Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment 2017-04) 2017-04 Prospective Accounting Changes 2014-09, Revenue from Contracts with Customers 2014-09), 2014-09, 2014-09 2014-09, In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases 2016-02). 2016-02 right-of-use In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting 2016-09). In December 2016, the FASB issued Accounting Standards Update 2016-18, Restricted Cash 2016-18). beginning-of-period end-of-period |
Acquisitions
Acquisitions | 12 Months Ended |
Aug. 31, 2017 | |
Acquisitions | Note 3 – Acquisitions On June 1, 2017, Greenbrier and Astra Holding GmbH (Astra) contributed their European operations to a newly formed company, Greenbrier-Astra Rail, a Europe-based freight railcar manufacturing, engineering and repair business. As consideration for an approximate 75% controlling interest, Greenbrier agreed to pay Astra €30 million at closing and €30 million 12 months after closing and issue an approximate 25% noncontrolling interest in the new company. The total net assets acquired of $114.6 million includes $38.3 million representing the fair value of the noncontrolling interest at the acquisition date. Astra also received a put option to sell its entire noncontrolling interest to Greenbrier at an exercise price equal to the higher of fair value or a defined EBITDA multiple as measured on the exercise date. The option is exercisable 30 days prior to and up until June 1, 2022. Due to Astra’s redemption right under the put option, the noncontrolling interest has been classified as a Contingently redeemable noncontrolling interest in the mezzanine section of the Consolidated Balance Sheets. The carrying value of the noncontrolling interest cannot be less than the maximum redemption amount, which is the amount Greenbrier will settle the put option for if exercised. Adjustments to reconcile the carrying value to the maximum redemption amount are recorded to retained earnings. There were no such adjustments during the period ended August 31, 2017. For the period from acquisition through August 31, 2017, the European operations contributed by Astra generated revenues of $23.9 million and losses from operations of $3.0 million, which are reported in the Company’s consolidated financial statements as part of the Manufacturing segment. The impact of the acquisition was not material to the Company’s consolidated results of operations, therefore pro forma financial information has not been included. The allocation of the purchase price among certain assets and liabilities is still in process. As a result, the allocation is preliminary and subject to further refinement upon completion of the analysis and valuation. The preliminary allocation of the purchase price based on the fair value of the net assets acquired from Astra was as follows as of June 1, 2017: (in thousands) Cash and cash equivalents $ 6,562 Accounts receivable 10,984 Inventories 30,130 Property, plant and equipment 74,332 Intangibles and other assets 17,624 Goodwill 25,325 Total assets acquired 164,957 Accounts payable and accrued liabilities 17,879 Deferred income taxes 7,137 Deferred revenue 964 Notes payable 24,382 Total liabilities assumed 50,362 Net assets acquired $ 114,595 |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2017 | |
Inventories | Note 4 - Inventories As of August 31, (In thousands) 2017 2016 Manufacturing supplies and raw materials $ 222,080 $ 240,865 Work-in-process 86,794 68,727 Finished goods 95,389 59,470 Excess and obsolete adjustment (4,136 ) (3,257 ) $ 400,127 $ 365,805 As of August 31, (In thousands) 2017 2016 2015 Excess and obsolete adjustment Balance at beginning of period $ 3,257 $ 2,679 $ 2,866 Charge to cost of revenue 2,781 2,422 2,564 Disposition of inventory (2,003 ) (1,792 ) (2,434 ) Currency translation effect 101 (52 ) (317 ) Balance at end of period $ 4,136 $ 3,257 $ 2,679 |
Equipment on Operating Leases,
Equipment on Operating Leases, net | 12 Months Ended |
Aug. 31, 2017 | |
Equipment on Operating Leases, net | Note 5 - Equipment on Operating Leases, net Equipment on operating leases is reported net of accumulated depreciation of $91.1 million and $92.6 million as of August 31, 2017 and 2016, respectively. Depreciation expense was $12.1 million, $16.6 million and $9.4 million as of August 31, 2017, 2016 and 2015, respectively. In addition, certain railcar equipment leased-in non-cancelable non-cancelable (In thousands) Year ending August 31, 2018 $ 29,168 2019 22,762 2020 16,159 2021 8,232 2022 5,377 Thereafter 5,487 $ 87,185 Certain equipment is also operated under daily, monthly or car hire utilization arrangements. Associated revenue amounted to $13.0 million, $14.7 million and $20.2 million for the years ended August 31, 2017, 2016 and 2015, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Aug. 31, 2017 | |
Property, Plant and Equipment, net | Note 6 - Property, Plant and Equipment, net As of August 31, (In thousands) 2017 2016 Land and improvements $ 84,594 $ 50,979 Machinery and equipment 378,311 325,100 Buildings and improvements 186,960 147,160 Construction in progress 39,417 42,879 Other 60,747 46,428 750,029 612,546 Accumulated depreciation (322,008 ) (282,556 ) $ 428,021 $ 329,990 Depreciation expense was $45.5 million, $39.2 million and $31.4 million as of August 31, 2017, 2016 and 2015, respectively. |
Investments In Unconsolidated A
Investments In Unconsolidated Affiliates | 12 Months Ended |
Aug. 31, 2017 | |
Investments In Unconsolidated Affiliates | Note 7 - Investments In Unconsolidated Affiliates GBW The Company has a 50% ownership interest in GBW which performs railcar repair, refurbishment, maintenance and retrofitting services. The Company accounts for its interest in GBW under the equity method of accounting. Summarized financial data for GBW is as follows: Years ended August 31, (In thousands) 2017 2016 Current assets $ 81,860 $ 109,651 Total assets $ 206,009 $ 247,610 Current liabilities $ 33,033 $ 37,123 Total liabilities $ 111,384 $ 116,077 Years ended August 31, (In thousands) 2017 2016 2015 Revenue $ 253,436 $ 373,490 $ 349,849 Margin $ (4,058 ) $ 33,929 $ 21,752 Net income (loss) (1) $ (36,947 ) $ 4,006 $ (2,551 ) (1) In 2017, GBW recorded a pre-tax non-cash after-tax. Greenbrier-Maxion In May 2017, the Company completed a $20 million investment in Greenbrier-Maxion, a railcar manufacturer in Brazil resulting in an increase in the Company’s ownership interest from 19.5% to 60%. 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: Years ended August 31, (In thousands) 2017 2016 Current assets $ 48,012 $ 49,104 Total assets $ 71,455 $ 70,788 Current liabilities $ 38,055 $ 59,967 Total liabilities $ 42,197 $ 63,242 Years ended August 31, (In thousands) 2017 2016 2015 Revenue $ 228,510 $ 168,465 $ 71,204 Margin $ 24,372 $ 14,245 $ 6,323 Net income (loss) $ 1,378 $ (4,051 ) $ 805 Amsted-Maxion Cruzeiro In May 2017, the Company increased its ownership interest in Amsted-Maxion Cruzeiro, a manufacturer of castings and components for railcars and other heavy equipment, from 19.5% to 24.5% for $3.25 million. Proceeds from the Company’s increased ownership in Amsted-Maxion Cruzeiro, along with loans from each of the partners, were used to retire third-party debt at Amsted-Maxion Cruzeiro. The Company retains an option to increase its ownership in Amsted-Maxion Cruzeiro to 29.5% subject to certain conditions. Amsted-Maxion Cruzeiro has a 40% ownership position in Greenbrier-Maxion. The Company accounts for its interest in Amsted-Maxion Cruzeiro under the equity method of accounting. Summarized financial data for Amsted-Maxion Cruzeiro is as follows: Years ended August 31, (In thousands) 2017 2016 Current assets $ 23,777 $ 22,944 Total assets $ 142,583 $ 164,182 Current liabilities $ 28,084 $ 59,696 Total liabilities $ 94,846 $ 100,872 Years ended August 31, (In thousands) 2017 2016 2015 Revenue $ 90,114 $ 87,833 $ 36,696 Margin $ 5,983 $ 8,256 $ 4,083 Net income (loss) $ (20,114 ) $ (12,640 ) $ 48,113 Other Unconsolidated Affiliates The Company has various other unconsolidated affiliates which are accounted for under the equity method of accounting. This includes the Company’s 33% interest in Ohio Castings Company LLC, 50% interest in GGSynergy SA de C.V., 40% interest in Greenbrier Railcar Funding I LLC, 8% interest in MUL Greenbrier LLC and a 1% interest in each of Green Union I Trust, Green Union II Trust and Green Union III Trust. Summarized financial data for these other unconsolidated affiliates in aggregate are as follows: Years ended August 31, (In thousands) 2017 2016 Current assets $ 16,996 $ 19,852 Total assets $ 283,895 $ 162,073 Current liabilities $ 3,003 $ 6,586 Total liabilities $ 90,064 $ 6,951 Years ended August 31, (In thousands) 2017 2016 2015 Revenue $ 39,161 $ 75,851 $ 98,385 Margin $ 8,015 $ 11,087 $ 14,025 Net income (loss) $ 5,202 $ 6,051 $ 10,022 |
Goodwill
Goodwill | 12 Months Ended |
Aug. 31, 2017 | |
Goodwill | Note 8 - Goodwill Changes in the carrying value of goodwill are as follows: (In thousands) Manufacturing Wheels & Parts Leasing & Total Balance August 31, 2016 $ – $ 43,265 $ – $ 43,265 Addition (1) 25,325 – – 25,325 Balance August 31, 2017 $ 25,325 $ 43,265 $ – $ 68,590 (1) Addition to goodwill relates to Greenbrier-Astra Rail transaction. See Note 3 – Acquisitions. (In thousands) Goodwill Gross goodwill balance before accumulated goodwill impairment losses and other reductions $ 221,115 Accumulated goodwill impairment losses (128,209 ) Accumulated other reductions (24,316 ) Balance August 31, 2017 $ 68,590 The Company performs a goodwill impairment test annually during the third quarter. Goodwill is also tested more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists. The provisions of ASC 350, Intangibles - Goodwill and Other |
Intangibles and Other Assets, n
Intangibles and Other Assets, net | 12 Months Ended |
Aug. 31, 2017 | |
Intangibles and Other Assets, net | Note 9 - Intangibles and Other Assets, net Intangible assets that are determined to have finite lives are amortized over their useful lives. Intangible assets with indefinite useful lives are not amortized and are periodically evaluated for impairment. The following table summarizes the Company’s identifiable intangible and other assets balance: As of August 31, (In thousands) 2017 2016 Intangible assets subject to amortization: Customer relationships $ 64,521 $ 65,023 Accumulated amortization (40,153 ) (37,251 ) Other intangibles 20,207 6,298 Accumulated amortization (4,866 ) (5,967 ) 39,709 28,103 Intangible assets not subject to amortization 912 912 Prepaid and other assets 16,914 14,891 Nonqualified savings plan investments 20,974 15,864 Debt issuance costs, net 2,623 3,481 Assets held for sale 4,045 4,108 $ 85,177 $ 67,359 Amortization expense for the years ended August 31, 2017, 2016 and 2015 was $4.8 million, $6.3 million and $3.7 million, respectively. Amortization expense for the years ending August 31, 2018, 2019, 2020, 2021 and 2022 is expected to be $5.8 million, $5.4 million, $5.7 million, $5.4 million and $4.0 million, respectively. |
Revolving Notes
Revolving Notes | 12 Months Ended |
Aug. 31, 2017 | |
Revolving Notes | Note 10 - Revolving Notes Senior secured credit facilities, consisting of three components, aggregated to $625.1 million as of August 31, 2017. As of August 31, 2017, a $550.0 million revolving line of credit, maturing October 2020, secured by substantially all the Company’s assets in the U.S. not otherwise pledged as security for term loans, was available to provide working capital and interim financing of equipment, principally for the U.S. and Mexican operations. Advances under this facility bear interest at LIBOR plus 1.75% or Prime plus 0.75% depending on the type of borrowing. Available borrowings under the credit facility are generally based on defined levels of inventory, receivables, property, plant and equipment and leased equipment, as well as total debt to consolidated capitalization and fixed charges coverage ratios. As of August 31, 2017, lines of credit totaling $25.1 million secured by certain of the Company’s European assets, with variable rates that range from Warsaw Interbank Offered Rate (WIBOR) plus 1.2% to WIBOR plus 1.3% and Euro Interbank Offered Rate (EURIBOR) plus 1.9%, were available for working capital needs of the European manufacturing operation. European credit facilities are continually being renewed. Currently these European credit facilities have maturities that range from February 2018 through June 2019. As of August 31, 2017, the Company’s Mexican railcar manufacturing joint venture had two lines of credit totaling $50.0 million. The first line of credit provides up to $30.0 million and is fully guaranteed by the Company and its joint venture partner. Advances under this facility bear interest at LIBOR plus 2.0%. The Mexican railcar manufacturing joint venture will be able to draw against this facility through January 2019. The second line of credit provides up to $20.0 million, of which the Company and its joint venture partner have each guaranteed 50%. Advances under this facility bear interest at LIBOR plus 2.0%. The Mexican railcar manufacturing joint venture will be able to draw amounts available under this facility through July 2019. As of August 31, 2017, outstanding commitments under the senior secured credit facilities consisted of $77.6 million in letters of credit under the North American credit facility and $4.3 million outstanding under the European credit facilities. As of August 31, 2016, outstanding commitments under the senior secured credit facilities consisted of $81.3 million in letters of credit under the North American credit facility. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Aug. 31, 2017 | |
Accounts Payable and Accrued Liabilities | Note 11 - Accounts Payable and Accrued Liabilities As of August 31, (In thousands) 2017 2016 Trade payables $ 180,592 $ 182,334 Other accrued liabilities 107,002 71,260 Accrued payroll and related liabilities 84,749 76,058 Accrued warranty 20,737 12,159 Accrued maintenance 17,667 18,646 Income taxes payable – 3,991 Other 4,314 5,306 $ 415,061 $ 369,754 |
Maintenance and Warranty Accrua
Maintenance and Warranty Accruals | 12 Months Ended |
Aug. 31, 2017 | |
Maintenance and Warranty Accruals | Note 12 - Maintenance and Warranty Accruals As of August 31, (In thousands) 2017 2016 2015 Accrued maintenance Balance at beginning of period $ 18,646 $ 18,642 $ 14,329 Charged to cost of revenue 10,609 12,926 13,622 Payments (11,588 ) (12,922 ) (9,309 ) Balance at end of period $ 17,667 $ 18,646 $ 18,642 Accrued warranty Balance at beginning of period $ 12,159 $ 11,512 $ 9,340 Charged to cost of revenue 6,872 6,069 7,206 Acquisition 3,526 – – Payments (2,649 ) (5,299 ) (4,703 ) Currency translation effect 829 (123 ) (331 ) Balance at end of period $ 20,737 $ 12,159 $ 11,512 |
Notes Payable, net
Notes Payable, net | 12 Months Ended |
Aug. 31, 2017 | |
Notes Payable, net | Note 13 - Notes Payable, net As of August 31, (In thousands) 2017 2016 Convertible senior notes, due 2018 $ 119,063 $ 119,063 Convertible senior notes, due 2024 275,000 – Term loans 184,001 184,906 Other notes payable 19,540 – $ 597,604 $ 303,969 Debt discount and issuance costs (39,376 ) (2,116 ) $ 558,228 $ 301,853 Convertible senior notes, due 2018, bear interest at a fixed rate of 3.5%, paid semi-annually in arrears on April 1 st st 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 Term loans are primarily composed of: • $200 million of senior term debt, with a maturity date of March 2020, which is secured by a pool of leased railcars. The debt bears a floating interest rate of LIBOR plus 1.75% with principal of $1.75 million paid quarterly in arrears and a balloon payment of $159.8 million due at maturity. An interest rate swap agreement was entered into on 50% of the initial balance to swap the floating interest rate of LIBOR plus 1.75% to a fixed rate of 3.7375%. The principal balance as of August 31, 2017 was $177.3 million. • Other term loans with an aggregate balance of $11.2 million as of August 31, 2017 and maturity dates ranging from February 2018 to April 2020. • $15.1 million of unsecured related party debt (see Note 17 - Related Party Transactions). 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. Principal payments on the notes payable are expected as follows: (In thousands) Year ending August 31, 2018 (1) $ 130,263 2019 26,040 2020 166,301 2021 – 2022 – Thereafter (2) 275,000 $ 597,604 (1) The repayment of the $119.1 million of Convertible senior notes due 2018 is assumed to occur in stock at the scheduled maturity in 2018 instead of assuming an earlier conversion by the holders. (2) The repayment of the $275.0 million of Convertible senior notes due 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, 2017 | |
Derivative Instruments | Note 14 - Derivative Instruments Foreign operations give rise to market risks from changes in foreign currency exchange rates. Foreign currency forward exchange contracts with established financial institutions are utilized to hedge a portion of that risk. Interest rate swap agreements are used to reduce the impact of changes in interest rates on certain debt. The Company’s foreign currency forward exchange contracts and interest rate swap agreements are designated as cash flow hedges, and therefore the effective portion of unrealized gains and losses is recorded in accumulated other comprehensive income or loss. At August 31, 2017 exchange rates, forward exchange contracts for the purchase of Polish Zlotys and the sale of Euros and U.S. Dollars; the purchase of Mexican Pesos and the sale of U.S. Dollars; and for the purchase of U.S. Dollars and the sale of Saudi Riyals aggregated to $287.3 million. The fair value of the contracts is included on the Consolidated Balance Sheets as Accounts payable and accrued liabilities when there is a loss, or as Accounts receivable, net when there is a gain. As the contracts mature at various dates through July 2019, any such gain or loss remaining will be recognized in manufacturing revenue or cost of revenue along with the related transactions. In the event that the underlying transaction does not occur or does not occur in the period designated at the inception of the hedge, the amount classified in accumulated other comprehensive loss would be reclassified to the results of operations in Interest and foreign exchange at the time of occurrence. At August 31, 2017 exchange rates, approximately $0.8 million would be reclassified to revenue or cost of revenue in the next 12 months. At August 31, 2017, an interest rate swap agreement maturing in March 2020 had a notional amount of $88.6 million. The fair value of the contract is included in Accounts payable and accrued liabilities on the Consolidated Balance Sheets. As interest expense on the underlying debt is recognized, amounts corresponding to the interest rate swap are reclassified from Accumulated other comprehensive loss and charged or credited to interest expense. At August 31, 2017 interest rates, approximately $0.7 million would be reclassified to interest expense in the next 12 months. Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives August 31, August 31, 2017 2016 2017 2016 (In thousands) Balance sheet caption Fair Fair Value Balance sheet caption Fair Value Fair Value Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 2,341 $ 1,570 Accounts payable and accrued liabilities $ 1,761 $ 4,287 Interest rate swap contracts Intangibles and other assets, net – – Accounts payable and accrued liabilities 1,125 3,157 $ 2,341 $ 1,570 $ 2,886 $ 7,444 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 1,473 $ 25 Accounts payable and accrued liabilities $ – $ 22 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 recognized in Years ended 2017 2016 Foreign forward exchange contract Interest and foreign exchange $ 3,207 $ 336 Interest rate swap contracts Interest and foreign exchange 23 90 $ 3,230 $ 426 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) from accumulated OCI into income Gain (loss) reclassified from accumulated OCI into income (effective portion) 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 (ineffective portion and amount excluded from effectiveness testing) Years ended August 31, 2017 2016 2017 2016 2017 2016 Foreign forward exchange contracts $ 1,746 $ (4,698 ) Revenue $ (3,980 ) $ (1,224 ) Revenue $ (2,843 ) $ 138 Foreign forward exchange contracts 385 (944 ) Cost of revenue 336 (911 ) Cost of revenue 248 121 Interest rate swap contracts 1,042 (2,354 ) Interest and foreign exchange (1,057 ) (1,561 ) Interest and foreign exchange – – $ 3,173 $ (7,996 ) $ (4,701 ) $ (3,696 ) $ (2,595 ) $ 259 |
Equity
Equity | 12 Months Ended |
Aug. 31, 2017 | |
Equity | Note 15 - Equity Stock Incentive Plan The 2014 Amended and Restated Stock Incentive Plan provides for the grant of incentive stock options, non-statutory During the years ended August 31, 2017, 2016 and 2015, the Company awarded restricted share and restricted stock unit grants totaling 269,705, 447,895 and 402,196 shares, respectively, which include performance-based grants. As of August 31, 2017, there were a total of 492,886 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 492,886 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, 2017, 2016 and 2015. The fair value of awards granted was $11.3 million, $12.5 million and $24.6 million for the years ended August 31, 2017, 2016 and 2015, 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, 2017, 2016 and 2015 was $20.2 million, $22.5 million and $19.5 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 $14.1 million as of August 31, 2017. Total unvested restricted share and restricted stock unit grants were 837,654 and 902,068 as of August 31, 2017 and 2016. The following table summarizes restricted share and restricted stock unit grant transactions for shares, both vested and unvested, under the 2014 Amended and Restated Stock Incentive Plan: Shares Balance at August 31, 2014 (1) 3,180,857 Granted 402,196 Forfeited (163,192 ) Balance at August 31, 2015 (1) 3,419,861 Granted 447,895 Forfeited (19,526 ) Balance at August 31, 2016 (1) 3,848,230 Granted 269,705 Forfeited (26,206 ) Balance at August 31, 2017 (1) 4,091,729 (1) Balance represents cumulative grants net of forfeitures. Share Repurchase Program The Board of Directors has authorized the Company to repurchase in aggregate up to $225 million of the Company’s common stock. The program may be modified, suspended or discontinued at any time without prior notice. 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. There were no shares repurchased during the year ended August 31, 2017. During August 31, 2016, the Company repurchased a total of 1,054,687 shares for approximately $32.4 million under these share repurchase programs. As of August 31, 2017 the Company had cumulatively repurchased 3,206,226 shares for approximately $137.0 million and had $88.0 million available under the share repurchase program. In October 2017, the expiration date of this share repurchase program was extended from January 1, 2018 to March 31, 2019. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Aug. 31, 2017 | |
Earnings Per Share | Note 16 - 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) 2017 2016 2015 Weighted average basic common shares outstanding (1) 29,225 29,156 28,151 Dilutive effect of 2018 Convertible notes (2) 3,295 3,214 5,130 Dilutive effect of 2024 Convertible notes (3) – n/a n/a Dilutive effect of 2026 Convertible notes (4) n/a – 2 Dilutive effect of performance based restricted stock units (5) 42 98 45 Weighted average diluted common shares outstanding 32,562 32,468 33,328 (1) Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. No restricted stock and restricted stock units were anti-dilutive for the years ended August 31, 2017, 2016 and 2015. (2) The dilutive effect of the 2018 Convertible notes was included as they were considered dilutive under the “if converted” method as further discussed below. (3) The 2024 Convertible notes were issued in February 2017. The dilutive effect of the 2024 Convertible notes was excluded for the year ended August 31, 2017 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. (4) The 2026 Convertible notes were retired in August 2016. The effect of the 2026 Convertible notes was excluded for the year ended August 31, 2016 as the average stock price was less than the applicable conversion price and therefore the notes were considered anti-dilutive. The dilutive effect of the 2026 Convertible notes was included for the year ended August 31, 2015 as the average stock price was greater than the applicable conversion price, as further described below. (5) Restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. Diluted EPS is calculated using the more dilutive of two approaches. The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2024 Convertible notes and 2026 Convertible notes and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 2018 Convertible notes. Under the “if converted” method, debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes. The 2024 Convertible notes and 2026 Convertible notes are included in the calculation of both approaches using the treasury stock method when the average stock price is greater than the applicable conversion price. Years ended August 31, 2017 2016 2015 Net earnings attributable to Greenbrier $ 116,067 $ 183,213 $ 192,832 Add back: Interest and debt issuance costs on the 2018 Convertible notes, net of tax 2,932 2,695 4,818 Earnings before interest and debt issuance costs on convertible notes $ 118,999 $ 185,908 $ 197,650 Weighted average diluted common shares outstanding 32,562 32,468 33,328 Diluted earnings per share (1) $ 3.65 $ 5.73 $ 5.93 (1) Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on convertible notes Weighted average diluted common shares outstanding |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2017 | |
Related Party Transactions | Note 17 - Related Party Transactions In June 2017, the Company purchased a 40% interest in an entity that buys and sells railcar assets that are leased to third parties and which is 60% owned by a third party. The Company accounts for this investment under the equity method of accounting. As of August 31, 2017, the carrying amount of the investment was $7.0 million which is classified in Investment in unconsolidated affiliates in the Consolidated Balance Sheet. During the year ended August 31, 2017, the Company sold approximately $130 million in railcars to this entity from Leased railcars for syndication, of which 60% of the related revenue and margin was recognized and 40% was deferred until the railcars are ultimately sold by the entity. The Company also provides administrative and remarketing services to this entity and earns management fees for these services. The Company has a 24.5% ownership interest in Amsted-Maxion Cruzeiro, a manufacturer of various castings and components for railcars and other heavy industrial equipment in Brazil, which it accounts for under the equity method of accounting. As of August 31, 2017, the Company had a $10.0 million note receivable from Amsted-Maxion Cruzeiro, which is included on the Consolidated Balance Sheet in Accounts receivable, net. In July 2014, the Company and Watco Companies LLC completed the formation of GBW, an unconsolidated 50/50 joint venture. The Company accounts for its interest in GBW under the equity method of accounting. The Company leases real and personal property to GBW with lease revenue totaling $4.9 million for the years ended August 31, 2017, 2016 and 2015. The Company sold wheel sets and components to GBW which totaled $18.3 million, $28.5 million and $25.4 million for the years ended August 31, 2017, 2016 and 2015, respectively. GBW provided services to the Company which totaled $1.0 million, $1.3 million and $2.4 million for the years ended August 31, 2017, 2016 and 2015, respectively. As of August 31, 2017, the Company had a $36.5 million note receivable balance from GBW. In April 2010, WLR–Greenbrier Rail Inc. (WLR-GBX) WLR-GBX WLR-GBX Mr. Furman is the owner of a private aircraft managed by a private independent management company. From time to time, the Company’s business requires charter use of privately-owned aircraft. In such instances, it is possible that charters may be placed on Mr. Furman’s aircraft. The Company placed charters on Mr. Furman’s aircraft aggregating $0.5 million, $0.8 million and $0.5 million for each of the years ended August 31, 2017, 2016 and 2015, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2017 | |
Income Taxes | Note 18 - Income Taxes Components of income tax expense were as follows: Years ended August 31, (In thousands) 2017 2016 2015 Current Federal $ 22,710 $ 66,455 $ 92,525 State 305 4,595 6,349 Foreign 35,893 50,299 32,748 58,908 121,349 131,622 Deferred Federal 9,418 (6,199 ) (13,565 ) State (1,467 ) (1,174 ) (1,112 ) Foreign (2,732 ) (1,644 ) (4,423 ) 5,219 (9,017 ) (19,100 ) Change in valuation allowance (113 ) (10 ) (362 ) Income tax expense $ 64,014 $ 112,322 $ 112,160 Income tax expense is computed at rates different from statutory rates. The reconciliation between effective and statutory tax rates on operations is as follows: Years ended August 31, 2017 2016 2015 Federal statutory rate 35.0% 35.0% 35.0% State income taxes, net of federal benefit 0.1 0.7 1.0 Impact of foreign operations (3.4 ) 0.1 (0.5 ) Change in valuation allowance – – (0.1 ) Noncontrolling interest in flow-through entity (6.0 ) (7.4 ) (5.7 ) Permanent differences and other 1.4 – 0.2 Effective tax rate 27.1% 28.4% 29.9% Earnings before income tax and earnings from unconsolidated affiliates for the years ended August 31, 2017, 2016 and 2015 were $123.2 million, $264.8 million and $292.6 million, respectively, for our domestic U.S. operations and $113.0 million, $130.3 million and $83.1 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) 2017 2016 Deferred tax assets: Accrued payroll and related liabilities $ 28,761 $ 26,384 Deferred revenue 7,547 18,533 Maintenance and warranty accruals 10,988 10,604 Inventories and other 13,641 7,599 Derivative instruments and translation adjustment 371 1,153 Investment and asset tax credits 1,840 511 Net operating losses 320 429 63,468 65,213 Deferred tax liabilities: Fixed assets 110,429 97,490 Investment in GBW Joint Venture 14,066 16,144 Original issue discount 11,086 – Intangibles 3,605 3,212 Deferred gain on redemption of debt 859 1,718 Other (1,319 ) (2,344 ) 138,726 116,220 Valuation allowance 533 612 Net deferred tax liability $ 75,791 $ 51,619 As of August 31, 2017 the Company had $1.0 million of state net operating loss (NOL) carryforwards that will begin to expire in 2020, $2.0 million of state credit carryforwards that will begin to expire in 2021, and $3.9 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 likely to expire before their expiration dates. The Company uses tax law ordering for purposes of determining when excess tax benefits have been realized. During the current year the tax deduction realized in connection with the vesting of restricted stock awards was less than the cumulative stock compensation recorded in the financial statements. The stock price at the date of grant was higher than the stock price at the vesting date. As a result, the Company realized a $2.4 million short-fall (debit) to Additional paid in capital for the tax-effected The net decrease in the total valuation allowance on deferred taxes for which no benefit is anticipated was approximately $0.1 million for the year ended August 31, 2017. No provision has been made for U.S. income taxes on approximately $199.8 million of cumulative undistributed earnings of certain foreign subsidiaries because the Company plans to reinvest these earnings indefinitely in operations outside the U.S. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability related to investments in foreign subsidiaries. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Years ended August 31, (In thousands) 2017 2016 2015 Unrecognized Tax Benefit – Opening Balance $ 942 $ 1,019 $ 1,030 Gross increases – tax positions in prior period 1,368 – – Gross decreases – tax positions in prior period (53 ) – – Settlements – – – Lapse of statute of limitations (437 ) (77 ) (11 ) Unrecognized Tax Benefit – Ending Balance $ 1,820 $ 942 $ 1,019 The Company is subject to taxation in the U.S. and in various states and foreign jurisdictions. The Company is no longer subject to U.S. Federal examination for fiscal years ending before 2014, to state and local examinations before 2013, or to foreign examinations before 2012. Unrecognized tax benefits, excluding interest, at August 31, 2017 were $1.8 million, of which $0.9 million, if recognized, would affect the effective tax rate. The unrecognized tax benefits at August 31, 2016 were $0.9 million. Accrued interest on unrecognized tax benefits as of August 31, 2017 was minimal and as of August 31, 2016 was $0.2 million. The Company recorded annual interest benefits of less than $0.1 million for changes in the reserves during each of the years ended August 31, 2017 and 2016. 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 decrease in the reserves for uncertain tax positions during the next twelve months. |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2017 | |
Segment Information | Note 19 - Segment Information Greenbrier operates in four reportable segments: Manufacturing; Wheels & Parts; Leasing & Services; and GBW Joint Venture. The results of GBW Joint Venture are included as part of Earnings (loss) from unconsolidated affiliates as the Company accounts for its interest in GBW under the equity method of accounting. 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 is accounted for under the equity method of accounting. 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 & 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 For the year ended August 31, 2016: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 2,096,331 $ 89,158 $ 2,185,489 $ 415,094 $ 24,299 $ 439,393 Wheels & Parts 322,395 32,436 354,831 19,948 2,602 22,550 Leasing & Services 260,798 13,101 273,899 51,723 13,101 64,824 Eliminations – (134,695 ) (134,695 ) – (40,002 ) (40,002 ) Corporate – – – (78,213 ) – (78,213 ) $ 2,679,524 $ – $ 2,679,524 $ 408,552 $ – $ 408,552 For the year ended August 31, 2015: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 2,136,051 $ 7,534 $ 2,143,585 $ 396,921 $ 795 $ 397,716 Wheels & Parts 371,237 27,257 398,494 27,563 2,629 30,192 Leasing & Services 97,990 62,600 160,590 41,887 62,600 104,487 Eliminations – (97,391 ) (97,391 ) – (66,024 ) (66,024 ) Corporate – – – (79,479 ) – (79,479 ) $ 2,605,278 $ – $ 2,605,278 $ 386,892 $ – $ 386,892 Years ended August 31, (In thousands) 2017 2016 2015 Assets: Manufacturing $ 914,450 $ 701,296 $ 675,409 Wheels & Parts 236,315 275,599 291,798 Leasing & Services 535,323 516,147 546,013 Unallocated 711,617 342,732 274,232 $ 2,397,705 $ 1,835,774 $ 1,787,452 Depreciation and amortization: Manufacturing $ 33,807 $ 27,137 $ 20,668 Wheels & Parts 11,143 11,971 11,748 Leasing & Services 20,179 24,237 12,740 $ 65,129 $ 63,345 $ 45,156 Capital expenditures: Manufacturing $ 54,973 $ 51,294 $ 84,354 Wheels & Parts 3,129 10,190 9,381 Leasing & Services 27,963 77,529 12,254 $ 86,065 $ 139,013 $ 105,989 The following table summarizes selected geographic information. Years ended August 31, (In thousands) 2017 2016 2015 Revenue (1) U.S. $ 1,674,517 $ 2,297,501 $ 2,404,266 Foreign 494,647 382,023 201,012 $ 2,169,164 $ 2,679,524 $ 2,605,278 Assets: U.S. $ 1,307,239 $ 955,674 $ 1,181,751 Mexico 791,974 788,878 524,724 Europe 298,492 91,222 80,977 $ 2,397,705 $ 1,835,774 $ 1,787,452 (1) Revenue is presented on the basis of geographic location of customers. Reconciliation of Earnings from operations to Earnings before income tax and earnings from unconsolidated affiliates: Years ended August 31, (In thousands) 2017 2016 2015 Earnings from operations $ 260,432 $ 408,552 $ 386,892 Interest and foreign exchange 24,192 13,502 11,179 Earnings before income tax and earnings from unconsolidated affiliates $ 236,240 $ 395,050 $ 375,713 The results of operations for the GBW Joint Venture are accounted for under the equity method of accounting. The GBW Joint Venture is the Company’s fourth reportable segment and information for 2017, 2016 and 2015 are included in the tables below. Years ended August 31, (In thousands) 2017 2016 2015 GBW Joint Venture: Revenue $ 253,436 $ 373,490 $ 349,849 Earnings (loss) from operations $ (32,454 ) $ 8,558 $ (1,160 ) Assets (1) $ 206,009 $ 247,610 $ 239,871 Depreciation and amortization $ 9,023 $ 7,676 $ 4,590 Capital expenditures $ 8,030 $ 16,110 $ 26,396 (1) Includes goodwill and intangible assets of $78.8 million, $93.4 million and $96.9 million as of August 31, 2017, 2016 and 2015, respectively. In 2017, GBW recorded a pre-tax |
Customer Concentration
Customer Concentration | 12 Months Ended |
Aug. 31, 2017 | |
Customer Concentration | Note 20 - Customer Concentration Customer concentration is defined as a single customer that accounts for more than 10% of total revenues or accounts receivable. In 2017, revenue from one customer represented 20% of total revenue. In 2016, revenue from two customers represented 17% and 14% of total revenue. In 2015, revenue from one customer represented 17% of total revenue. No other customers accounted for more than 10% of total revenues for the years ended August 31, 2017, 2016, or 2015. Three customers had balances that individually equaled or exceeded 10% of accounts receivable and represented 13%, 13% and 10% of the consolidated accounts receivable balance at August 31, 2017. Two customers had balances that individually equaled or exceeded 10% of accounts receivable and represented 23% and 11% of the consolidated accounts receivable balance at August 31, 2016. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Aug. 31, 2017 | |
Lease Commitments | Note 21 - Lease Commitments Lease expense for railcar equipment leased-in non-cancelable non-cancelable (In thousands) Year ending August 31, 2018 $ 7,363 2019 6,177 2020 4,832 2021 1,792 2022 1,792 Thereafter 3,602 $ 25,558 Operating leases for domestic railcar repair facilities, office space and certain manufacturing and office equipment expire at various dates through August 2023. Rental expense for facilities, office space and equipment was $9.4 million, $9.3 million and $9.3 million for the years ended August 31, 2017, 2016 and 2015, respectively. Aggregate minimum future amounts payable under these non-cancelable (In thousands) Year ending August 31, 2018 $ 5,006 2019 3,585 2020 3,304 2021 2,217 2022 705 Thereafter 341 $ 15,158 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2017 | |
Commitments and Contingencies | Note 22 - Commitments and Contingencies The Company’s Portland, Oregon manufacturing facility is located adjacent to the Willamette River. In December 2000, the U.S. Environmental Protection Agency (EPA) classified portions of the Willamette River bed known as the Portland Harbor, including the portion fronting the Company’s manufacturing facility, as a federal “National Priority List” or “Superfund” site due to sediment contamination (the Portland Harbor Site). The Company and more than 140 other parties have received a “General Notice” of potential liability from the EPA relating to the Portland Harbor Site. The letter advised the Company that it may be liable for the costs of investigation and remediation (which liability may be joint and several with other potentially responsible parties) as well as for natural resource damages resulting from releases of hazardous substances to the site. Ten private and public entities, including the Company (the Lower Willamette Group or LWG), signed an Administrative Order on Consent (AOC) to perform a remedial investigation/feasibility study (RI/FS) of the Portland Harbor Site under EPA oversight, and several additional entities have not signed such consent, but nevertheless contributed money to the effort. The EPA-mandated 17-year 17-year Separate from the process described above which focused on the type of remediation to be performed at the Portland Harbor Site and the schedule for such remediation, 83 parties, including the State of Oregon and the federal government, entered into a non-judicial Arkema Inc. et al v. A & C Foundry Products, Inc. et al #3:09-cv-453-PK. The EPA’s January 6, 2017 ROD identifies a clean-up -30% 2-year On January 30, 2017 the Confederated Tribes and Bands of Yakama Nation sued 33 parties including the Company as well as the United States and the State of Oregon for costs it incurred in assessing alleged natural resource damages to the Columbia River from contaminants deposited in Portland Harbor. Confederated Tribes and Bands of the Yakama Nation v. Air Liquide America Corp., et al., 3i17-CV-00164-SB. The ROD does not address responsibility for the costs of clean-up, pre-remedial The Company has entered into a Voluntary Cleanup Agreement with the Oregon Department of Environmental Quality (DEQ) in which the Company agreed to conduct an investigation of whether, and to what extent, past or present operations at the Portland property may have released hazardous substances into the environment. The Company has also signed an Order on Consent with the DEQ to finalize the investigation of potential onsite sources of contamination that may have a release pathway to the Willamette River. Interim precautionary measures are also required in the order and the Company is discussing with the DEQ potential remedial actions which may be required. The Company’s aggregate expenditure has not been material, however the Company could incur significant expenses for remediation. Some or all of any such outlay may be recoverable from other responsible parties. From time to time, Greenbrier is involved as a defendant in litigation in the ordinary course of business, the outcomes of which cannot be predicted with certainty. In the quarter ended November 30, 2016, the Company received an adverse judgment of approximately $15 million on one matter related to commercial litigation in a foreign jurisdiction. The judgment was reversed on appeal and the case was remanded to the trial court. In June 2017 the court issued a new judgment against the Company of approximately $10 million. The judgment has been affirmed on appeal. The Company is evaluating its options with respect to such litigation and related matters. While the ultimate outcome of such legal proceedings cannot be determined at this time, the Company believes that the resolution of pending litigation will not have a material adverse effect on the Company’s Consolidated Financial Statements. As of August 31, 2017, the Company had outstanding letters of credit aggregating $77.6 million associated with performance guarantees, facility leases and workers compensation insurance. The Company made $0.6 million in cash contributions to GBW, an unconsolidated 50/50 joint venture, for the year ended August 31, 2017 which represented a reinvestment of a distribution received from GBW during the year. The Company is likely to make additional capital contributions or loans to GBW in the future. As of August 31, 2017, the Company had a $36.5 million note receivable balance from GBW which is included on the Consolidated Balance Sheet in Accounts receivable, net. As of August 31, 2017, the Company had a $10.0 million note receivable from Amsted-Maxion Cruzeiro, an unconsolidated Brazilian castings and components manufacturer, which is included on the Consolidated Balance Sheet in Accounts receivable, net. In the future, the Company may make loans to or provide guarantees for Amsted-Maxion Cruzeiro or Greenbrier-Maxion, an unconsolidated Brazilian railcar manufacturer. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Aug. 31, 2017 | |
Fair Value of Financial Instruments | Note 23 - Fair Value of Financial Instruments The estimated fair values of financial instruments and the methods and assumptions used to estimate such fair values are as follows: (In thousands) Carrying Amount 1 Estimated Fair Value (Level 2) Notes payable as of August 31, 2017 $ 597,604 $ 644,708 Notes payable as of August 31, 2016 $ 303,969 $ 314,687 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, 2017 | |
Fair Value Measures | Note 24 - Fair Value Measures Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value, for this disclosure, is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy which prioritizes the inputs used in measuring a fair value as follows: Level 1 - observable inputs such as unadjusted quoted prices in active markets for identical instruments; Level 2 - inputs, other than the quoted market prices in active markets for similar instruments, which are observable, either directly or indirectly; and Level 3 - unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2017 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 3,814 $ – $ 3,814 $ – Nonqualified savings plan investments 20,974 20,974 – – Cash equivalents 105,337 105,337 – – $ 130,125 $ 126,311 $ 3,814 $ – Liabilities: Derivative financial instruments $ 2,886 $ – $ 2,886 $ – (1) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 14 Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2016 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 1,595 $ – $ 1,595 $ – Nonqualified savings plan investments 15,864 15,864 – – Cash equivalents 5,077 5,077 – – $ 22,536 $ 20,941 $ 1,595 $ – Liabilities: Derivative financial instruments $ 7,466 $ – $ 7,466 $ – (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 Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Aug. 31, 2017 | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2017 Revenue Manufacturing $ 454,033 $ 445,504 $ 317,104 $ 508,547 $ 1,725,188 Wheels & Parts 69,635 82,714 85,231 75,099 312,679 Leasing & Services 28,646 38,064 36,826 27,761 131,297 552,314 566,282 439,161 611,407 2,169,164 Cost of revenue Manufacturing 356,555 346,653 245,228 425,531 1,373,967 Wheels & Parts 64,978 75,497 77,985 69,876 288,336 Leasing & Services 18,030 25,207 26,247 16,078 85,562 439,563 447,357 349,460 511,485 1,747,865 Margin 112,751 118,925 89,701 99,922 421,299 Selling and administrative 41,213 39,495 42,810 47,089 170,607 Net gain on disposition of equipment (1,122 ) (2,090 ) (1,581 ) (4,947 ) (9,740 ) Earnings from operations 72,660 81,520 48,472 57,780 260,432 Other costs Interest and foreign exchange 1,724 5,673 7,894 8,901 24,192 Earnings before income tax and earnings (loss) from unconsolidated affiliates 70,936 75,847 40,578 48,879 236,240 Income tax expense (20,386 ) (24,858 ) (8,656 ) (10,114 ) (64,014 ) Earnings (loss) from unconsolidated affiliates (2,584 ) (1,988 ) (681 ) (6,511 ) (11,764 ) Net earnings 47,966 49,001 31,241 32,254 160,462 Net earnings attributable to noncontrolling interest (23,004 ) (14,465 ) 1,582 (8,508 ) (44,395 ) Net earnings attributable to Greenbrier $ 24,962 $ 34,536 $ 32,823 $ 23,746 $ 116,067 Basic earnings per common share: (1) $ 0.86 $ 1.19 $ 1.12 $ 0.81 $ 3.97 Diluted earnings per common share: (1) $ 0.79 $ 1.09 $ 1.03 $ 0.75 $ 3.65 (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 and the dilutive effect of shares underlying the 2018 Convertible Notes using the “if converted” method in which debt issuance and interest costs, net of tax, were added back to net earnings. Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2016 Revenue Manufacturing $ 698,661 $ 454,531 $ 458,494 $ 484,645 $ 2,096,331 Wheels & Parts 78,729 90,458 78,417 74,791 322,395 Leasing & Services 24,999 124,090 75,955 35,754 260,798 802,389 669,079 612,866 595,190 2,679,524 Cost of revenue Manufacturing 533,033 361,827 352,775 382,919 1,630,554 Wheels & Parts 73,002 81,388 69,818 69,543 293,751 Leasing & Services 11,589 105,973 63,175 23,045 203,782 617,624 549,188 485,768 475,507 2,128,087 Margin 184,765 119,891 127,098 119,683 551,437 Selling and administrative 36,549 38,244 43,280 40,608 158,681 Net gain on disposition of equipment (269 ) (10,746 ) (311 ) (4,470 ) (15,796 ) Earnings from operations 148,485 92,393 84,129 83,545 408,552 Other costs Interest and foreign exchange 5,436 1,417 3,712 2,937 13,502 Earnings before income tax and earnings (loss) from unconsolidated affiliates 143,049 90,976 80,417 80,608 395,050 Income tax expense (44,719 ) (25,734 ) (22,449 ) (19,420 ) (112,322 ) Earnings (loss) from unconsolidated affiliates 383 974 1,564 (825 ) 2,096 Net earnings 98,713 66,216 59,532 60,363 284,824 Net earnings attributable to noncontrolling interest (29,280 ) (21,348 ) (24,180 ) (26,803 ) (101,611 ) Net earnings attributable to Greenbrier $ 69,433 $ 44,868 $ 35,352 $ 33,560 $ 183,213 Basic earnings per common share: (1) $ 2.36 $ 1.54 $ 1.22 $ 1.15 $ 6.28 Diluted earnings per common share: (1) $ 2.15 $ 1.41 $ 1.12 $ 1.06 $ 5.73 (1) Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the “if converted” method in which debt issuance and interest costs, net of tax, were added back to net earnings. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2017 | |
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) 2017 2016 2015 Allowance for doubtful accounts Balance at beginning of period $ 2,215 $ 2,449 $ 2,033 Additions, net of reversals 370 70 684 Usage (891 ) (277 ) (108 ) Currency translation effect 74 (27 ) (160 ) Balance at end of period $ 1,768 $ 2,215 $ 2,449 |
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 – 25 years Machinery and equipment 3 – 15 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 - |
Maintenance obligations | Maintenance obligations - |
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 3 – Acquisitions). 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 Foreign (1) Other Accumulated Balance, August 31, 2016 $ (5,492 ) $ (20,832 ) $ (429 ) $ (26,753 ) Other comprehensive loss before reclassifications 1,944 15,466 (665 ) 16,745 Amounts reclassified from accumulated other comprehensive loss 3,729 – – 3,729 Balance, August 31, 2017 $ 181 $ (5,366 ) $ (1,094 ) $ (6,279 ) 1 Primarily relates to the foreign currency translation of the Company’s Leu functional currency operations in Romania and the Zloty functional currency operations in Poland to U.S. Dollars. 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) 2017 2016 (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 3,644 $ 2,135 Revenue and Cost of revenue Interest rate swap contracts 1,057 1,561 Interest and foreign exchange 4,701 3,696 Total before tax (972 ) (1,152 ) Tax benefit $ 3,729 $ 2,544 Net of tax |
Revenue recognition | Revenue recognition - Railcars are generally manufactured, repaired or refurbished under firm orders from third parties. Revenue is recognized when new, used, refurbished or repaired railcars are completed, accepted by an unaffiliated customer and contractual contingencies removed. Marine revenue is either recognized on the percentage of completion method during the construction period or on the completed contract method based on the terms of the contract. Under the percentage of completion method, revenue is recognized based on the progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. Under the completed contract method, revenue is not recognized until the project has been fully completed. Cash payments received prior to meeting revenue recognition criteria are accounted for in Deferred revenue. Operating lease revenue is recognized as earned under the lease terms. Certain leases are operated under car hire arrangements whereby revenue is earned based on utilization, car hire rates and terms specified in the lease agreement. The Company sells railcars with leases attached to financial investors. Revenue and cost of revenue associated with railcars that the Company has manufactured are recognized in Manufacturing once sold. 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. For any contracts with multiple elements (i.e. railcars, maintenance, management services, etc.) the Company allocates revenue among the deliverables primarily based upon objective and reliable evidence of the fair value of each element in the arrangement. If objective and reliable evidence of fair value of any element is not available, the Company will use its estimated selling price for purposes of allocating the total arrangement consideration among the elements. |
Interest and foreign exchange | Interest and foreign exchange - (In thousands) Years ended August 31, 2017 2016 2015 Interest and foreign exchange: Interest and other expense $ 23,519 $ 17,268 $ 18,975 Foreign exchange (gain) loss 673 (3,766 ) (7,796 ) $ 24,192 $ 13,502 $ 11,179 |
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 2024 Convertible notes and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 2018 Convertible notes. Under the “if converted” method, debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes. The 2024 Convertible notes are included in the calculation of both approaches using the treasury stock method when the average stock price is greater than the applicable conversion price. |
Stock-based compensation | Stock-based compensation - Restricted stock units and restricted stock are accounted for as equity based awards (see Note 15 – Equity). Phantom stock units are accounted for as liability based awards. 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. During the years ended August 31, 2017 and 2016, the Company awarded 151,634 and 268,161 phantom stock units, respectively, which include performance-based grants. As of August 31, 2017, there were a total of 203,768 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. Approximately 203,768 additional phantom stock units may be granted if performance-based phantom stock units vest at stretch level of performance. These additional units are associated with phantom stock unit awards granted during the years ended August 31, 2016 and 2017. The grant date fair value of phantom stock awards was $6.7 million and $7.9 million for the years ended August 31, 2017 and 2016, respectively. Our phantom stock unit grants are considered liability based awards and therefore are re-measured |
Management estimates | Management estimates |
Initial Adoption of Accounting Policies | Initial Adoption of Accounting Policies 2015-03, Simplifying the Presentation of Debt Issuance Costs 2015-03). 2015-03 In the first quarter of 2017, the Company adopted Accounting Standards Update 2015-15, Interest-Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements 2015-15). 2015-03 In the second quarter of 2017, the Company adopted Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment 2017-04) 2017-04 |
Prospective accounting changes | Prospective Accounting Changes 2014-09, Revenue from Contracts with Customers 2014-09), 2014-09, 2014-09 2014-09, In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases 2016-02). 2016-02 right-of-use In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting 2016-09). In December 2016, the FASB issued Accounting Standards Update 2016-18, Restricted Cash 2016-18). beginning-of-period end-of-period |
Interest rate swap contracts | |
Derivatives | Interest rate instruments - |
Foreign Exchange Contracts | |
Derivatives | Forward exchange contracts - non-performance. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Allowance for Doubtful Accounts | Accounts receivable - As of August 31, (In thousands) 2017 2016 2015 Allowance for doubtful accounts Balance at beginning of period $ 2,215 $ 2,449 $ 2,033 Additions, net of reversals 370 70 684 Usage (891 ) (277 ) (108 ) Currency translation effect 74 (27 ) (160 ) Balance at end of period $ 1,768 $ 2,215 $ 2,449 |
Estimated Useful Lives | Depreciation is provided on the straight-line method over estimated useful lives which are as follows: Depreciable Life Buildings and improvements 10 – 25 years Machinery and equipment 3 – 15 years Other 3 – 7 years |
Components of Accumulated Other Comprehensive Loss, Net of Tax | Accumulated other comprehensive loss, net of tax as appropriate, consisted of the following: (In thousands) Unrealized Foreign (1) Other Accumulated Balance, August 31, 2016 $ (5,492 ) $ (20,832 ) $ (429 ) $ (26,753 ) Other comprehensive loss before reclassifications 1,944 15,466 (665 ) 16,745 Amounts reclassified from accumulated other comprehensive loss 3,729 – – 3,729 Balance, August 31, 2017 $ 181 $ (5,366 ) $ (1,094 ) $ (6,279 ) 1 Primarily relates to the foreign currency translation of the Company’s Leu functional currency operations in Romania and the Zloty functional currency operations in Poland to U.S. Dollars. |
Amounts Reclassified out of Accumulated Other Comprehensive Loss | The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with the financial statement caption, were as follows: Year Ended August 31, Financial Statement Caption (In thousands) 2017 2016 (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 3,644 $ 2,135 Revenue and Cost of revenue Interest rate swap contracts 1,057 1,561 Interest and foreign exchange 4,701 3,696 Total before tax (972 ) (1,152 ) Tax benefit $ 3,729 $ 2,544 Net of tax |
Interest and Foreign Exchange | Interest and foreign exchange - (In thousands) Years ended August 31, 2017 2016 2015 Interest and foreign exchange: Interest and other expense $ 23,519 $ 17,268 $ 18,975 Foreign exchange (gain) loss 673 (3,766 ) (7,796 ) $ 24,192 $ 13,502 $ 11,179 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Preliminary Fair Value of Net Assets Acquired | The preliminary allocation of the purchase price based on the fair value of the net assets acquired from Astra was as follows as of June 1, 2017: (in thousands) Cash and cash equivalents $ 6,562 Accounts receivable 10,984 Inventories 30,130 Property, plant and equipment 74,332 Intangibles and other assets 17,624 Goodwill 25,325 Total assets acquired 164,957 Accounts payable and accrued liabilities 17,879 Deferred income taxes 7,137 Deferred revenue 964 Notes payable 24,382 Total liabilities assumed 50,362 Net assets acquired $ 114,595 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Components of Inventories | As of August 31, (In thousands) 2017 2016 Manufacturing supplies and raw materials $ 222,080 $ 240,865 Work-in-process 86,794 68,727 Finished goods 95,389 59,470 Excess and obsolete adjustment (4,136 ) (3,257 ) $ 400,127 $ 365,805 |
Inventory Valuation | As of August 31, (In thousands) 2017 2016 2015 Excess and obsolete adjustment Balance at beginning of period $ 3,257 $ 2,679 $ 2,866 Charge to cost of revenue 2,781 2,422 2,564 Disposition of inventory (2,003 ) (1,792 ) (2,434 ) Currency translation effect 101 (52 ) (317 ) Balance at end of period $ 4,136 $ 3,257 $ 2,679 |
Equipment on Operating Leases38
Equipment on Operating Leases, net (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Aggregate Minimum Future Amounts Receivable Under All Non-Cancelable Operating Leases and Subleases | Aggregate minimum future amounts receivable under all non-cancelable (In thousands) Year ending August 31, 2018 $ 29,168 2019 22,762 2020 16,159 2021 8,232 2022 5,377 Thereafter 5,487 $ 87,185 |
Property, Plant and Equipment39
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Property, Plant and Equipment, Net | As of August 31, (In thousands) 2017 2016 Land and improvements $ 84,594 $ 50,979 Machinery and equipment 378,311 325,100 Buildings and improvements 186,960 147,160 Construction in progress 39,417 42,879 Other 60,747 46,428 750,029 612,546 Accumulated depreciation (322,008 ) (282,556 ) $ 428,021 $ 329,990 |
Investments In Unconsolidated40
Investments In Unconsolidated Affiliates (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
GBW Railcar Services LLC | |
Schedule of Summarized Financial Data | Summarized financial data for GBW is as follows: Years ended August 31, (In thousands) 2017 2016 Current assets $ 81,860 $ 109,651 Total assets $ 206,009 $ 247,610 Current liabilities $ 33,033 $ 37,123 Total liabilities $ 111,384 $ 116,077 Years ended August 31, (In thousands) 2017 2016 2015 Revenue $ 253,436 $ 373,490 $ 349,849 Margin $ (4,058 ) $ 33,929 $ 21,752 Net income (loss) (1) $ (36,947 ) $ 4,006 $ (2,551 ) (1) In 2017, GBW recorded a pre-tax non-cash after-tax. |
Greenbrier-Maxion | |
Schedule of Summarized Financial Data | Summarized financial data for Greenbrier-Maxion is as follows: Years ended August 31, (In thousands) 2017 2016 Current assets $ 48,012 $ 49,104 Total assets $ 71,455 $ 70,788 Current liabilities $ 38,055 $ 59,967 Total liabilities $ 42,197 $ 63,242 Years ended August 31, (In thousands) 2017 2016 2015 Revenue $ 228,510 $ 168,465 $ 71,204 Margin $ 24,372 $ 14,245 $ 6,323 Net income (loss) $ 1,378 $ (4,051 ) $ 805 |
Amsted-Maxion Cruzeiro | |
Schedule of Summarized Financial Data | Summarized financial data for Amsted-Maxion Cruzeiro is as follows: Years ended August 31, (In thousands) 2017 2016 Current assets $ 23,777 $ 22,944 Total assets $ 142,583 $ 164,182 Current liabilities $ 28,084 $ 59,696 Total liabilities $ 94,846 $ 100,872 Years ended August 31, (In thousands) 2017 2016 2015 Revenue $ 90,114 $ 87,833 $ 36,696 Margin $ 5,983 $ 8,256 $ 4,083 Net income (loss) $ (20,114 ) $ (12,640 ) $ 48,113 |
Other Unconsolidated Affiliates | |
Schedule of Summarized Financial Data | Summarized financial data for these other unconsolidated affiliates in aggregate are as follows: Years ended August 31, (In thousands) 2017 2016 Current assets $ 16,996 $ 19,852 Total assets $ 283,895 $ 162,073 Current liabilities $ 3,003 $ 6,586 Total liabilities $ 90,064 $ 6,951 Years ended August 31, (In thousands) 2017 2016 2015 Revenue $ 39,161 $ 75,851 $ 98,385 Margin $ 8,015 $ 11,087 $ 14,025 Net income (loss) $ 5,202 $ 6,051 $ 10,022 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Schedule of Changes in Carrying Value of Goodwill | Changes in the carrying value of goodwill are as follows: (In thousands) Manufacturing Wheels & Parts Leasing & Total Balance August 31, 2016 $ – $ 43,265 $ – $ 43,265 Addition (1) 25,325 – – 25,325 Balance August 31, 2017 $ 25,325 $ 43,265 $ – $ 68,590 (1) Addition to goodwill relates to Greenbrier-Astra Rail transaction. See Note 3 – Acquisitions. (In thousands) Goodwill Gross goodwill balance before accumulated goodwill impairment losses and other reductions $ 221,115 Accumulated goodwill impairment losses (128,209 ) Accumulated other reductions (24,316 ) Balance August 31, 2017 $ 68,590 |
Intangibles and Other Assets,42
Intangibles and Other Assets, net (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Identifiable Intangible and Other Assets | The following table summarizes the Company’s identifiable intangible and other assets balance: As of August 31, (In thousands) 2017 2016 Intangible assets subject to amortization: Customer relationships $ 64,521 $ 65,023 Accumulated amortization (40,153 ) (37,251 ) Other intangibles 20,207 6,298 Accumulated amortization (4,866 ) (5,967 ) 39,709 28,103 Intangible assets not subject to amortization 912 912 Prepaid and other assets 16,914 14,891 Nonqualified savings plan investments 20,974 15,864 Debt issuance costs, net 2,623 3,481 Assets held for sale 4,045 4,108 $ 85,177 $ 67,359 |
Accounts Payable and Accrued 43
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Accounts Payable and Accrued Liabilities | As of August 31, (In thousands) 2017 2016 Trade payables $ 180,592 $ 182,334 Other accrued liabilities 107,002 71,260 Accrued payroll and related liabilities 84,749 76,058 Accrued warranty 20,737 12,159 Accrued maintenance 17,667 18,646 Income taxes payable – 3,991 Other 4,314 5,306 $ 415,061 $ 369,754 |
Maintenance and Warranty Accr44
Maintenance and Warranty Accruals (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Maintenance and Warranty Accruals | As of August 31, (In thousands) 2017 2016 2015 Accrued maintenance Balance at beginning of period $ 18,646 $ 18,642 $ 14,329 Charged to cost of revenue 10,609 12,926 13,622 Payments (11,588 ) (12,922 ) (9,309 ) Balance at end of period $ 17,667 $ 18,646 $ 18,642 Accrued warranty Balance at beginning of period $ 12,159 $ 11,512 $ 9,340 Charged to cost of revenue 6,872 6,069 7,206 Acquisition 3,526 – – Payments (2,649 ) (5,299 ) (4,703 ) Currency translation effect 829 (123 ) (331 ) Balance at end of period $ 20,737 $ 12,159 $ 11,512 |
Notes Payable, net (Tables)
Notes Payable, net (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Notes Payable, Net | As of August 31, (In thousands) 2017 2016 Convertible senior notes, due 2018 $ 119,063 $ 119,063 Convertible senior notes, due 2024 275,000 – Term loans 184,001 184,906 Other notes payable 19,540 – $ 597,604 $ 303,969 Debt discount and issuance costs (39,376 ) (2,116 ) $ 558,228 $ 301,853 |
Principal Payments on the Notes Payable | Principal payments on the notes payable are expected as follows: (In thousands) Year ending August 31, 2018 (1) $ 130,263 2019 26,040 2020 166,301 2021 – 2022 – Thereafter (2) 275,000 $ 597,604 (1) The repayment of the $119.1 million of Convertible senior notes due 2018 is assumed to occur in stock at the scheduled maturity in 2018 instead of assuming an earlier conversion by the holders. (2) The repayment of the $275.0 million of Convertible senior notes due 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, 2017 | |
Fair Values of Derivative Instruments | Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives August 31, August 31, 2017 2016 2017 2016 (In thousands) Balance sheet caption Fair Fair Value Balance sheet caption Fair Value Fair Value Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 2,341 $ 1,570 Accounts payable and accrued liabilities $ 1,761 $ 4,287 Interest rate swap contracts Intangibles and other assets, net – – Accounts payable and accrued liabilities 1,125 3,157 $ 2,341 $ 1,570 $ 2,886 $ 7,444 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 1,473 $ 25 Accounts payable and accrued liabilities $ – $ 22 |
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 recognized in Years ended 2017 2016 Foreign forward exchange contract Interest and foreign exchange $ 3,207 $ 336 Interest rate swap contracts Interest and foreign exchange 23 90 $ 3,230 $ 426 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) from accumulated OCI into income Gain (loss) reclassified from accumulated OCI into income (effective portion) 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 (ineffective portion and amount excluded from effectiveness testing) Years ended August 31, 2017 2016 2017 2016 2017 2016 Foreign forward exchange contracts $ 1,746 $ (4,698 ) Revenue $ (3,980 ) $ (1,224 ) Revenue $ (2,843 ) $ 138 Foreign forward exchange contracts 385 (944 ) Cost of revenue 336 (911 ) Cost of revenue 248 121 Interest rate swap contracts 1,042 (2,354 ) Interest and foreign exchange (1,057 ) (1,561 ) Interest and foreign exchange – – $ 3,173 $ (7,996 ) $ (4,701 ) $ (3,696 ) $ (2,595 ) $ 259 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
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 2014 Amended and Restated Stock Incentive Plan: Shares Balance at August 31, 2014 (1) 3,180,857 Granted 402,196 Forfeited (163,192 ) Balance at August 31, 2015 (1) 3,419,861 Granted 447,895 Forfeited (19,526 ) Balance at August 31, 2016 (1) 3,848,230 Granted 269,705 Forfeited (26,206 ) Balance at August 31, 2017 (1) 4,091,729 (1) Balance represents cumulative grants net of forfeitures. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share | The shares used in the computation of the Company’s basic and diluted earnings per common share are reconciled as follows: Years ended August 31, (In thousands) 2017 2016 2015 Weighted average basic common shares outstanding (1) 29,225 29,156 28,151 Dilutive effect of 2018 Convertible notes (2) 3,295 3,214 5,130 Dilutive effect of 2024 Convertible notes (3) – n/a n/a Dilutive effect of 2026 Convertible notes (4) n/a – 2 Dilutive effect of performance based restricted stock units (5) 42 98 45 Weighted average diluted common shares outstanding 32,562 32,468 33,328 (1) Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. No restricted stock and restricted stock units were anti-dilutive for the years ended August 31, 2017, 2016 and 2015. (2) The dilutive effect of the 2018 Convertible notes was included as they were considered dilutive under the “if converted” method as further discussed below. (3) The 2024 Convertible notes were issued in February 2017. The dilutive effect of the 2024 Convertible notes was excluded for the year ended August 31, 2017 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. (4) The 2026 Convertible notes were retired in August 2016. The effect of the 2026 Convertible notes was excluded for the year ended August 31, 2016 as the average stock price was less than the applicable conversion price and therefore the notes were considered anti-dilutive. The dilutive effect of the 2026 Convertible notes was included for the year ended August 31, 2015 as the average stock price was greater than the applicable conversion price, as further described below. (5) 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, 2017 2016 2015 Net earnings attributable to Greenbrier $ 116,067 $ 183,213 $ 192,832 Add back: Interest and debt issuance costs on the 2018 Convertible notes, net of tax 2,932 2,695 4,818 Earnings before interest and debt issuance costs on convertible notes $ 118,999 $ 185,908 $ 197,650 Weighted average diluted common shares outstanding 32,562 32,468 33,328 Diluted earnings per share (1) $ 3.65 $ 5.73 $ 5.93 (1) Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on convertible notes Weighted average diluted common shares outstanding |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Components of Income Tax Expense of Continuing Operations | Components of income tax expense were as follows: Years ended August 31, (In thousands) 2017 2016 2015 Current Federal $ 22,710 $ 66,455 $ 92,525 State 305 4,595 6,349 Foreign 35,893 50,299 32,748 58,908 121,349 131,622 Deferred Federal 9,418 (6,199 ) (13,565 ) State (1,467 ) (1,174 ) (1,112 ) Foreign (2,732 ) (1,644 ) (4,423 ) 5,219 (9,017 ) (19,100 ) Change in valuation allowance (113 ) (10 ) (362 ) Income tax expense $ 64,014 $ 112,322 $ 112,160 |
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, 2017 2016 2015 Federal statutory rate 35.0% 35.0% 35.0% State income taxes, net of federal benefit 0.1 0.7 1.0 Impact of foreign operations (3.4 ) 0.1 (0.5 ) Change in valuation allowance – – (0.1 ) Noncontrolling interest in flow-through entity (6.0 ) (7.4 ) (5.7 ) Permanent differences and other 1.4 – 0.2 Effective tax rate 27.1% 28.4% 29.9% |
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) 2017 2016 Deferred tax assets: Accrued payroll and related liabilities $ 28,761 $ 26,384 Deferred revenue 7,547 18,533 Maintenance and warranty accruals 10,988 10,604 Inventories and other 13,641 7,599 Derivative instruments and translation adjustment 371 1,153 Investment and asset tax credits 1,840 511 Net operating losses 320 429 63,468 65,213 Deferred tax liabilities: Fixed assets 110,429 97,490 Investment in GBW Joint Venture 14,066 16,144 Original issue discount 11,086 – Intangibles 3,605 3,212 Deferred gain on redemption of debt 859 1,718 Other (1,319 ) (2,344 ) 138,726 116,220 Valuation allowance 533 612 Net deferred tax liability $ 75,791 $ 51,619 |
Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Years ended August 31, (In thousands) 2017 2016 2015 Unrecognized Tax Benefit – Opening Balance $ 942 $ 1,019 $ 1,030 Gross increases – tax positions in prior period 1,368 – – Gross decreases – tax positions in prior period (53 ) – – Settlements – – – Lapse of statute of limitations (437 ) (77 ) (11 ) Unrecognized Tax Benefit – Ending Balance $ 1,820 $ 942 $ 1,019 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Segments' Internal Financial Reports | The information in the following table is derived directly from the segments’ internal financial reports used for corporate management purposes. The results of operations for the GBW Joint Venture are not reflected in the tables below as the investment is accounted for under the equity method of accounting. For the 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 & 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 For the year ended August 31, 2016: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 2,096,331 $ 89,158 $ 2,185,489 $ 415,094 $ 24,299 $ 439,393 Wheels & Parts 322,395 32,436 354,831 19,948 2,602 22,550 Leasing & Services 260,798 13,101 273,899 51,723 13,101 64,824 Eliminations – (134,695 ) (134,695 ) – (40,002 ) (40,002 ) Corporate – – – (78,213 ) – (78,213 ) $ 2,679,524 $ – $ 2,679,524 $ 408,552 $ – $ 408,552 For the year ended August 31, 2015: Revenue Earnings (loss) from operations External Intersegment Total External Intersegment Total Manufacturing $ 2,136,051 $ 7,534 $ 2,143,585 $ 396,921 $ 795 $ 397,716 Wheels & Parts 371,237 27,257 398,494 27,563 2,629 30,192 Leasing & Services 97,990 62,600 160,590 41,887 62,600 104,487 Eliminations – (97,391 ) (97,391 ) – (66,024 ) (66,024 ) Corporate – – – (79,479 ) – (79,479 ) $ 2,605,278 $ – $ 2,605,278 $ 386,892 $ – $ 386,892 Years ended August 31, (In thousands) 2017 2016 2015 Assets: Manufacturing $ 914,450 $ 701,296 $ 675,409 Wheels & Parts 236,315 275,599 291,798 Leasing & Services 535,323 516,147 546,013 Unallocated 711,617 342,732 274,232 $ 2,397,705 $ 1,835,774 $ 1,787,452 Depreciation and amortization: Manufacturing $ 33,807 $ 27,137 $ 20,668 Wheels & Parts 11,143 11,971 11,748 Leasing & Services 20,179 24,237 12,740 $ 65,129 $ 63,345 $ 45,156 Capital expenditures: Manufacturing $ 54,973 $ 51,294 $ 84,354 Wheels & Parts 3,129 10,190 9,381 Leasing & Services 27,963 77,529 12,254 $ 86,065 $ 139,013 $ 105,989 |
Summary of Selected Geographic Information | The following table summarizes selected geographic information. Years ended August 31, (In thousands) 2017 2016 2015 Revenue (1) U.S. $ 1,674,517 $ 2,297,501 $ 2,404,266 Foreign 494,647 382,023 201,012 $ 2,169,164 $ 2,679,524 $ 2,605,278 Assets: U.S. $ 1,307,239 $ 955,674 $ 1,181,751 Mexico 791,974 788,878 524,724 Europe 298,492 91,222 80,977 $ 2,397,705 $ 1,835,774 $ 1,787,452 (1) Revenue is presented on the basis of geographic location of customers. |
Reconciliation of Earnings from Operations to Earnings Before Income Tax and Earnings from Unconsolidated Affiliates | Reconciliation of Earnings from operations to Earnings before income tax and earnings from unconsolidated affiliates: Years ended August 31, (In thousands) 2017 2016 2015 Earnings from operations $ 260,432 $ 408,552 $ 386,892 Interest and foreign exchange 24,192 13,502 11,179 Earnings before income tax and earnings from unconsolidated affiliates $ 236,240 $ 395,050 $ 375,713 |
GBW Railcar Services LLC | |
Segments' Internal Financial Reports | The results of operations for the GBW Joint Venture are accounted for under the equity method of accounting. The GBW Joint Venture is the Company’s fourth reportable segment and information for 2017, 2016 and 2015 are included in the tables below. Years ended August 31, (In thousands) 2017 2016 2015 GBW Joint Venture: Revenue $ 253,436 $ 373,490 $ 349,849 Earnings (loss) from operations $ (32,454 ) $ 8,558 $ (1,160 ) Assets (1) $ 206,009 $ 247,610 $ 239,871 Depreciation and amortization $ 9,023 $ 7,676 $ 4,590 Capital expenditures $ 8,030 $ 16,110 $ 26,396 (1) Includes goodwill and intangible assets of $78.8 million, $93.4 million and $96.9 million as of August 31, 2017, 2016 and 2015, respectively. In 2017, GBW recorded a pre-tax |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
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, 2018 $ 7,363 2019 6,177 2020 4,832 2021 1,792 2022 1,792 Thereafter 3,602 $ 25,558 |
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, 2018 $ 5,006 2019 3,585 2020 3,304 2021 2,217 2022 705 Thereafter 341 $ 15,158 |
Fair Value of Financial Instr52
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
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, 2017 $ 597,604 $ 644,708 Notes payable as of August 31, 2016 $ 303,969 $ 314,687 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, 2017 | |
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, 2017 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 3,814 $ – $ 3,814 $ – Nonqualified savings plan investments 20,974 20,974 – – Cash equivalents 105,337 105,337 – – $ 130,125 $ 126,311 $ 3,814 $ – Liabilities: Derivative financial instruments $ 2,886 $ – $ 2,886 $ – (1) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 14 Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2016 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 1,595 $ – $ 1,595 $ – Nonqualified savings plan investments 15,864 15,864 – – Cash equivalents 5,077 5,077 – – $ 22,536 $ 20,941 $ 1,595 $ – Liabilities: Derivative financial instruments $ 7,466 $ – $ 7,466 $ – (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 Operatio54
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Aug. 31, 2017 | |
Quarterly Financial Data | (In thousands, except per share amount) First Second Third Fourth Total 2017 Revenue Manufacturing $ 454,033 $ 445,504 $ 317,104 $ 508,547 $ 1,725,188 Wheels & Parts 69,635 82,714 85,231 75,099 312,679 Leasing & Services 28,646 38,064 36,826 27,761 131,297 552,314 566,282 439,161 611,407 2,169,164 Cost of revenue Manufacturing 356,555 346,653 245,228 425,531 1,373,967 Wheels & Parts 64,978 75,497 77,985 69,876 288,336 Leasing & Services 18,030 25,207 26,247 16,078 85,562 439,563 447,357 349,460 511,485 1,747,865 Margin 112,751 118,925 89,701 99,922 421,299 Selling and administrative 41,213 39,495 42,810 47,089 170,607 Net gain on disposition of equipment (1,122 ) (2,090 ) (1,581 ) (4,947 ) (9,740 ) Earnings from operations 72,660 81,520 48,472 57,780 260,432 Other costs Interest and foreign exchange 1,724 5,673 7,894 8,901 24,192 Earnings before income tax and earnings (loss) from unconsolidated affiliates 70,936 75,847 40,578 48,879 236,240 Income tax expense (20,386 ) (24,858 ) (8,656 ) (10,114 ) (64,014 ) Earnings (loss) from unconsolidated affiliates (2,584 ) (1,988 ) (681 ) (6,511 ) (11,764 ) Net earnings 47,966 49,001 31,241 32,254 160,462 Net earnings attributable to noncontrolling interest (23,004 ) (14,465 ) 1,582 (8,508 ) (44,395 ) Net earnings attributable to Greenbrier $ 24,962 $ 34,536 $ 32,823 $ 23,746 $ 116,067 Basic earnings per common share: (1) $ 0.86 $ 1.19 $ 1.12 $ 0.81 $ 3.97 Diluted earnings per common share: (1) $ 0.79 $ 1.09 $ 1.03 $ 0.75 $ 3.65 (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 and the dilutive effect of shares underlying the 2018 Convertible Notes using the “if converted” method in which debt issuance and interest costs, net of tax, were added back to net earnings. Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2016 Revenue Manufacturing $ 698,661 $ 454,531 $ 458,494 $ 484,645 $ 2,096,331 Wheels & Parts 78,729 90,458 78,417 74,791 322,395 Leasing & Services 24,999 124,090 75,955 35,754 260,798 802,389 669,079 612,866 595,190 2,679,524 Cost of revenue Manufacturing 533,033 361,827 352,775 382,919 1,630,554 Wheels & Parts 73,002 81,388 69,818 69,543 293,751 Leasing & Services 11,589 105,973 63,175 23,045 203,782 617,624 549,188 485,768 475,507 2,128,087 Margin 184,765 119,891 127,098 119,683 551,437 Selling and administrative 36,549 38,244 43,280 40,608 158,681 Net gain on disposition of equipment (269 ) (10,746 ) (311 ) (4,470 ) (15,796 ) Earnings from operations 148,485 92,393 84,129 83,545 408,552 Other costs Interest and foreign exchange 5,436 1,417 3,712 2,937 13,502 Earnings before income tax and earnings (loss) from unconsolidated affiliates 143,049 90,976 80,417 80,608 395,050 Income tax expense (44,719 ) (25,734 ) (22,449 ) (19,420 ) (112,322 ) Earnings (loss) from unconsolidated affiliates 383 974 1,564 (825 ) 2,096 Net earnings 98,713 66,216 59,532 60,363 284,824 Net earnings attributable to noncontrolling interest (29,280 ) (21,348 ) (24,180 ) (26,803 ) (101,611 ) Net earnings attributable to Greenbrier $ 69,433 $ 44,868 $ 35,352 $ 33,560 $ 183,213 Basic earnings per common share: (1) $ 2.36 $ 1.54 $ 1.22 $ 1.15 $ 6.28 Diluted earnings per common share: (1) $ 2.15 $ 1.41 $ 1.12 $ 1.06 $ 5.73 (1) Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the “if converted” method in which debt issuance and interest costs, net of tax, were added back to net earnings. |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) | 12 Months Ended |
Aug. 31, 2017VehicleSegment | |
Organization and Nature of Operations [Line Items] | |
Number of reportable segments | Segment | 4 |
Leasing & Services | |
Organization and Nature of Operations [Line Items] | |
Number of railcars owned | 8,300 |
Number of railcars that get services | 336,000 |
Leasing & Services | Equipment on operating leases, net | |
Organization and Nature of Operations [Line Items] | |
Number of railcars owned | 7,200 |
Leasing & Services | Leased railcars for syndication | |
Organization and Nature of Operations [Line Items] | |
Number of railcars owned | 1,000 |
Leasing & Services | Inventory Finished Goods | |
Organization and Nature of Operations [Line Items] | |
Number of railcars owned | 100 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | Jun. 30, 2017 | Jun. 01, 2017 | May 31, 2017 | Apr. 30, 2017 | Aug. 31, 2014 | Oct. 31, 2006 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Net foreign currency translation adjustment | $ 5,400 | $ 20,800 | $ 18,700 | ||||||
Allowance for doubtful accounts | 1,768 | 2,215 | 2,449 | $ 2,033 | |||||
Leased railcars for syndication | $ 91,272 | 144,932 | |||||||
Property, Plant and Equipment useful life | 35 years | ||||||||
Equity method investment, percentage of ownership interest | 50.00% | ||||||||
Goodwill impairment | $ 0 | 0 | 0 | ||||||
Percentage of revenue and gross margin | 40.00% | ||||||||
Deferred revenue | $ 129,260 | 95,721 | |||||||
Retained risk threshold percentage | 10.00% | ||||||||
Research and development | $ 4,200 | 2,700 | 2,500 | ||||||
Stock based compensation expense | $ 26,427 | $ 24,037 | $ 19,459 | ||||||
Performance based share based compensation | 269,705 | 447,895 | 402,196 | ||||||
Share based compensation, non vested shares | 492,886 | ||||||||
Unamortized share based compensation | $ 14,100 | ||||||||
Intangibles and other assets, net | 85,177 | $ 67,359 | |||||||
Notes payable | $ 558,228 | 301,853 | |||||||
Greenbrier-Astra Rail | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Ownership percentage by parent | 75.00% | 75.00% | |||||||
Interest in joint venture | 25.00% | ||||||||
GIMSA | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Interest in joint venture | 50.00% | ||||||||
Accounting Standards Update 2015-03 | Reclassifications | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Intangibles and other assets, net | (2,100) | ||||||||
Notes payable | $ 2,100 | ||||||||
Phantom Stock Units (PSUs) | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Performance based share based compensation | 151,634 | 268,161 | |||||||
Share based compensation, non vested shares | 203,768 | ||||||||
Additional shares available for grant if performance-based phantom stock units vest at stretch level of performance | 203,768 | ||||||||
Share based compensation, fair value of phantom stock | $ 6,700 | $ 7,900 | |||||||
Stock compensation expenses | 6,200 | 1,500 | |||||||
Unamortized share based compensation | $ 10,900 | $ 7,500 | |||||||
Greenbrier | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Equity method investment, percentage of ownership interest | 40.00% | 40.00% | |||||||
Upfront Fee [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Unrecognized deferred revenue | $ 40,000 | ||||||||
GBW Railcar Services LLC | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Equity method investment, percentage of ownership interest | 50.00% | 50.00% | |||||||
Goodwill impairment | $ 11,200 | ||||||||
Ohio Castings Company LLC | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Equity method investment, percentage of ownership interest | 33.00% | ||||||||
Greenbrier-Maxion | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Equity method investment, percentage of ownership interest | 60.00% | 60.00% | 19.50% | ||||||
Greenbrier-Maxion | BRAZIL | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Ownership percentage by parent | 40.00% | ||||||||
Amsted-Maxion Cruzeiro | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Equity method investment, percentage of ownership interest | 24.50% | 24.50% | 19.50% | ||||||
GGSynergy SA de C.V. | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Equity method investment, percentage of ownership interest | 50.00% | ||||||||
MUL Greenbrier LLC | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Equity method investment, percentage of ownership interest | 8.00% | ||||||||
Green Union One Trust | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Equity method investment, percentage of ownership interest | 1.00% | ||||||||
Green Union Two Trust | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Equity method investment, percentage of ownership interest | 1.00% | ||||||||
Green Union Three Trust | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Equity method investment, percentage of ownership interest | 1.00% | ||||||||
Greenbrier Railcar Funding I LLC | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Equity method investment, percentage of ownership interest | 40.00% | ||||||||
Customer Relationships | Minimum | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 5 years | ||||||||
Customer Relationships | Maximum | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 20 years |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Allowance for doubtful accounts | |||
Balance at beginning of period | $ 2,215 | $ 2,449 | $ 2,033 |
Additions, net of reversals | 370 | 70 | 684 |
Usage | (891) | (277) | (108) |
Currency translation effect | 74 | (27) | (160) |
Balance at end of period | $ 1,768 | $ 2,215 | $ 2,449 |
Estimated Useful Lives (Detail)
Estimated Useful Lives (Detail) | 12 Months Ended |
Aug. 31, 2017 | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 35 years |
Building and improvements | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 10 years |
Building and improvements | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 25 years |
Machinery and Equipment | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 3 years |
Machinery and Equipment | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 15 years |
Other | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 3 years |
Other | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 7 years |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) $ in Thousands | 12 Months Ended | |
Aug. 31, 2017USD ($) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 874,311 | |
Other comprehensive loss before reclassifications | 16,745 | |
Amounts reclassified from accumulated other comprehensive loss | 3,729 | |
Ending balance | 1,018,130 | |
Unrealized (Gain) Loss on Derivative Financial Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (5,492) | |
Other comprehensive loss before reclassifications | 1,944 | |
Amounts reclassified from accumulated other comprehensive loss | 3,729 | |
Ending balance | 181 | |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (20,832) | [1] |
Other comprehensive loss before reclassifications | 15,466 | [1] |
Ending balance | (5,366) | [1] |
Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (429) | |
Other comprehensive loss before reclassifications | (665) | |
Ending balance | (1,094) | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (26,753) | |
Ending balance | $ (6,279) | |
[1] | Primarily relates to the foreign currency translation of the Company's Leu functional currency operations in Romania and the Zloty functional currency operations in Poland to U.S. Dollars. |
Amounts Reclassified out of Acc
Amounts Reclassified out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2016 | Nov. 30, 2015 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Interest and foreign exchange | $ 8,901 | $ 7,894 | $ 5,673 | $ 1,724 | $ 2,937 | $ 3,712 | $ 1,417 | $ 5,436 | $ 24,192 | $ 13,502 | $ 11,179 |
Total before tax | (48,879) | (40,578) | (75,847) | (70,936) | (80,608) | (80,417) | (90,976) | (143,049) | (236,240) | (395,050) | (375,713) |
Tax benefit | $ 10,114 | $ 8,656 | $ 24,858 | $ 20,386 | $ 19,420 | $ 22,449 | $ 25,734 | $ 44,719 | 64,014 | 112,322 | $ 112,160 |
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 | 4,701 | 3,696 | |||||||||
Tax benefit | (972) | (1,152) | |||||||||
Net of tax | 3,729 | 2,544 | |||||||||
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 | 3,644 | 2,135 | |||||||||
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss | Interest rate swap contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Interest and foreign exchange | $ 1,057 | $ 1,561 |
Interest and Foreign Exchange (
Interest and Foreign Exchange (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2016 | Nov. 30, 2015 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Interest Expense [Line Items] | |||||||||||
Interest and other expense | $ 23,519 | $ 17,268 | $ 18,975 | ||||||||
Foreign exchange (gain) loss | 673 | (3,766) | (7,796) | ||||||||
Interest and foreign exchange | $ 8,901 | $ 7,894 | $ 5,673 | $ 1,724 | $ 2,937 | $ 3,712 | $ 1,417 | $ 5,436 | $ 24,192 | $ 13,502 | $ 11,179 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) € in Millions | Jun. 01, 2017EUR (€) | Aug. 31, 2017USD ($) | May 31, 2017USD ($) | Feb. 28, 2017USD ($) | Nov. 30, 2016USD ($) | Aug. 31, 2016USD ($) | May 31, 2016USD ($) | Feb. 28, 2016USD ($) | Nov. 30, 2015USD ($) | Aug. 31, 2017USD ($) | Aug. 31, 2016USD ($) | Aug. 31, 2015USD ($) | Jun. 01, 2017USD ($) | |||
Business Acquisition [Line Items] | ||||||||||||||||
Revenue | $ 611,407,000 | $ 439,161,000 | $ 566,282,000 | $ 552,314,000 | $ 595,190,000 | $ 612,866,000 | $ 669,079,000 | $ 802,389,000 | $ 2,169,164,000 | [1] | $ 2,679,524,000 | [1] | $ 2,605,278,000 | [1] | ||
Earnings (loss) from operations | $ 57,780,000 | $ 48,472,000 | $ 81,520,000 | $ 72,660,000 | $ 83,545,000 | $ 84,129,000 | $ 92,393,000 | $ 148,485,000 | $ 260,432,000 | $ 408,552,000 | $ 386,892,000 | |||||
Greenbrier-Astra Rail | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Ownership percentage by parent | 75.00% | 75.00% | 75.00% | |||||||||||||
Amount to be paid at closing | € | € 30 | |||||||||||||||
Amount to be paid 12 months after closing by providing a guarantee | € | € 30 | |||||||||||||||
Percentage of noncontrolling interest | 25.00% | |||||||||||||||
Net assets acquired | $ 114,595,000 | |||||||||||||||
Noncontrolling interest, fair value of acquisition | $ 38,300,000 | |||||||||||||||
Adjustments to reconcile carrying value of redemption amount to recorded retained earnings | $ 0 | |||||||||||||||
Revenue | 23,900,000 | |||||||||||||||
Earnings (loss) from operations | $ 3,000,000 | |||||||||||||||
[1] | Revenue is presented on the basis of geographic location of customers. |
Preliminary Fair Value of Net A
Preliminary Fair Value of Net Assets Acquired (Detail) - USD ($) $ in Thousands | Aug. 31, 2017 | Jun. 01, 2017 | Aug. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 68,590 | $ 43,265 | |
Greenbrier-Astra Rail | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 6,562 | ||
Accounts receivable | 10,984 | ||
Inventories | 30,130 | ||
Property, plant and equipment | 74,332 | ||
Intangibles and other assets | 17,624 | ||
Goodwill | 25,325 | ||
Total assets acquired | 164,957 | ||
Accounts payable and accrued liabilities | 17,879 | ||
Deferred income taxes | 7,137 | ||
Deferred revenue | 964 | ||
Notes payable | 24,382 | ||
Total liabilities assumed | 50,362 | ||
Net assets acquired | $ 114,595 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 |
Inventory [Line Items] | ||
Manufacturing supplies and raw materials | $ 222,080 | $ 240,865 |
Work-in-process | 86,794 | 68,727 |
Finished goods | 95,389 | 59,470 |
Excess and obsolete adjustment | (4,136) | (3,257) |
Inventories | $ 400,127 | $ 365,805 |
Inventory Valuation (Detail)
Inventory Valuation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 3,257 | ||
Balance at end of period | 4,136 | $ 3,257 | |
Inventory Valuation Reserve | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 3,257 | 2,679 | $ 2,866 |
Charge to cost of revenue | 2,781 | 2,422 | 2,564 |
Disposition of inventory | (2,003) | (1,792) | (2,434) |
Currency translation effect | 101 | (52) | (317) |
Balance at end of period | $ 4,136 | $ 3,257 | $ 2,679 |
Equipment on Operating Leases66
Equipment on Operating Leases, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | $ 322,008 | $ 282,556 | |
Depreciation expense | 45,500 | 39,200 | $ 31,400 |
Revenue associated with equipment hiring arrangements | 13,000 | 14,700 | 20,200 |
Property Subject to Operating Lease | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | 91,100 | 92,600 | |
Depreciation expense | $ 12,100 | $ 16,600 | $ 9,400 |
Aggregate Minimum Future Amount
Aggregate Minimum Future Amounts Receivable Under All Non-Cancelable Operating Leases and Subleases (Detail) $ in Thousands | Aug. 31, 2017USD ($) |
Future Minimum Payments Receivable [Line Items] | |
Year ending August 31, 2018 | $ 29,168 |
2,019 | 22,762 |
2,020 | 16,159 |
2,021 | 8,232 |
2,022 | 5,377 |
Thereafter | 5,487 |
Operating Leases, Future Minimum Payments Receivable, Total | $ 87,185 |
Property, Plant and Equipment68
Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 750,029 | $ 612,546 |
Accumulated depreciation | (322,008) | (282,556) |
Property, plant and equipment, net | 428,021 | 329,990 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 84,594 | 50,979 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 378,311 | 325,100 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 186,960 | 147,160 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 39,417 | 42,879 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 60,747 | $ 46,428 |
Property, Plant and Equipment69
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 45.5 | $ 39.2 | $ 31.4 |
Investments in Unconsolidated70
Investments in Unconsolidated Affiliates - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | May 31, 2017 | Apr. 30, 2017 | |
Investment [Line Items] | |||||
Equity method investment, percentage of ownership interest | 50.00% | ||||
Payment for investment | $ 40,632 | $ 12,855 | $ 34,453 | ||
Amsted-Maxion Cruzeiro | |||||
Investment [Line Items] | |||||
Ownership stake in a railcar manufacturer | 40.00% | ||||
GBW Railcar Services LLC | |||||
Investment [Line Items] | |||||
Equity method investment, percentage of ownership interest | 50.00% | 50.00% | |||
Ohio Castings Company LLC | |||||
Investment [Line Items] | |||||
Equity method investment, percentage of ownership interest | 33.00% | ||||
GGSynergy SA de C.V. | |||||
Investment [Line Items] | |||||
Equity method investment, percentage of ownership interest | 50.00% | ||||
Greenbrier Railcar Funding I LLC | |||||
Investment [Line Items] | |||||
Equity method investment, percentage of ownership interest | 40.00% | ||||
MUL Greenbrier LLC | |||||
Investment [Line Items] | |||||
Equity method investment, percentage of ownership interest | 8.00% | ||||
Green Union One Trust | |||||
Investment [Line Items] | |||||
Equity method investment, percentage of ownership interest | 1.00% | ||||
Green Union Two Trust | |||||
Investment [Line Items] | |||||
Equity method investment, percentage of ownership interest | 1.00% | ||||
Green Union Three Trust | |||||
Investment [Line Items] | |||||
Equity method investment, percentage of ownership interest | 1.00% | ||||
Greenbrier-Maxion | |||||
Investment [Line Items] | |||||
Equity method investment, percentage of ownership interest | 60.00% | 60.00% | 19.50% | ||
Payment for investment | $ 20,000 | ||||
Amsted-Maxion Cruzeiro | |||||
Investment [Line Items] | |||||
Equity method investment, percentage of ownership interest | 24.50% | 24.50% | 19.50% | ||
Payment for investment | $ 3,500 |
Schedule of Summarized Financia
Schedule of Summarized Financial Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2016 | Nov. 30, 2015 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Total assets | $ 2,397,705 | $ 1,835,774 | $ 2,397,705 | $ 1,835,774 | $ 1,787,452 | ||||||||||
Revenue | 611,407 | $ 439,161 | $ 566,282 | $ 552,314 | 595,190 | $ 612,866 | $ 669,079 | $ 802,389 | 2,169,164 | [1] | 2,679,524 | [1] | 2,605,278 | [1] | |
Margin | 99,922 | 89,701 | 118,925 | 112,751 | 119,683 | 127,098 | 119,891 | 184,765 | 421,299 | 551,437 | 537,353 | ||||
Net income (loss) | 23,746 | $ 32,823 | $ 34,536 | $ 24,962 | 33,560 | $ 35,352 | $ 44,868 | $ 69,433 | 116,067 | 183,213 | 192,832 | ||||
GBW Railcar Services LLC | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Current assets | 81,860 | 109,651 | 81,860 | 109,651 | |||||||||||
Total assets | [2] | 206,009 | 247,610 | 206,009 | 247,610 | 239,871 | |||||||||
Current liabilities | 33,033 | 37,123 | 33,033 | 37,123 | |||||||||||
Total liabilities | 111,384 | 116,077 | 111,384 | 116,077 | |||||||||||
Revenue | 253,436 | 373,490 | 349,849 | ||||||||||||
Margin | (4,058) | 33,929 | 21,752 | ||||||||||||
Net income (loss) | [3] | (36,947) | 4,006 | (2,551) | |||||||||||
Greenbrier-Maxion | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Current assets | 48,012 | 49,104 | 48,012 | 49,104 | |||||||||||
Total assets | 71,455 | 70,788 | 71,455 | 70,788 | |||||||||||
Current liabilities | 38,055 | 59,967 | 38,055 | 59,967 | |||||||||||
Total liabilities | 42,197 | 63,242 | 42,197 | 63,242 | |||||||||||
Revenue | 228,510 | 168,465 | 71,204 | ||||||||||||
Margin | 24,372 | 14,245 | 6,323 | ||||||||||||
Net income (loss) | 1,378 | (4,051) | 805 | ||||||||||||
Amsted-Maxion Cruzeiro | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Current assets | 23,777 | 22,944 | 23,777 | 22,944 | |||||||||||
Total assets | 142,583 | 164,182 | 142,583 | 164,182 | |||||||||||
Current liabilities | 28,084 | 59,696 | 28,084 | 59,696 | |||||||||||
Total liabilities | 94,846 | 100,872 | 94,846 | 100,872 | |||||||||||
Revenue | 90,114 | 87,833 | 36,696 | ||||||||||||
Margin | 5,983 | 8,256 | 4,083 | ||||||||||||
Net income (loss) | (20,114) | (12,640) | 48,113 | ||||||||||||
Other Unconsolidated Affiliates | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Current assets | 16,996 | 19,852 | 16,996 | 19,852 | |||||||||||
Total assets | 283,895 | 162,073 | 283,895 | 162,073 | |||||||||||
Current liabilities | 3,003 | 6,586 | 3,003 | 6,586 | |||||||||||
Total liabilities | $ 90,064 | $ 6,951 | 90,064 | 6,951 | |||||||||||
Revenue | 39,161 | 75,851 | 98,385 | ||||||||||||
Margin | 8,015 | 11,087 | 14,025 | ||||||||||||
Net income (loss) | $ 5,202 | $ 6,051 | $ 10,022 | ||||||||||||
[1] | Revenue is presented on the basis of geographic location of customers. | ||||||||||||||
[2] | Includes goodwill and intangible assets of $78.8 million, $93.4 million and $96.9 million as of August 31, 2017, 2016 and 2015, respectively. In 2017, GBW recorded a pre-tax goodwill impairment loss of $11.2 million which reduced the goodwill balance to $41.5 million. | ||||||||||||||
[3] | In 2017, GBW recorded a pre-tax goodwill impairment loss of $11.2 million which reduced the goodwill balance to $41.5 million. The Company's portion of the non-cash goodwill impairment was $3.5 million after-tax. |
Schedule of Summarized Financ72
Schedule of Summarized Financial Data (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Pre-tax goodwill impairment loss | $ 0 | $ 0 | $ 0 |
Goodwill | 68,590 | $ 43,265 | |
GBW Railcar Services LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Pre-tax goodwill impairment loss | 11,200 | ||
Goodwill | 41,500 | ||
Non-cash goodwill impairment | $ 3,500 |
Schedule of Changes in Carrying
Schedule of Changes in Carrying Value of Goodwill (Detail) $ in Thousands | 12 Months Ended | |
Aug. 31, 2017USD ($) | ||
Goodwill [Line Items] | ||
Beginning balance | $ 43,265 | |
Addition | 25,325 | [1] |
Ending balance | 68,590 | |
Gross goodwill balance before accumulated goodwill impairment losses and other reductions | 221,115 | |
Accumulated goodwill impairment losses | (128,209) | |
Accumulated other reductions | (24,316) | |
Manufacturing | ||
Goodwill [Line Items] | ||
Addition | 25,325 | [1] |
Ending balance | 25,325 | |
Wheels & Parts | ||
Goodwill [Line Items] | ||
Beginning balance | 43,265 | |
Ending balance | $ 43,265 | |
[1] | Addition to goodwill relates to Greenbrier-Astra Rail transaction. See Note 3 - Acquisitions. |
Identifiable Intangible and Oth
Identifiable Intangible and Other Assets (Detail) - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 |
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Net, Total | $ 39,709 | $ 28,103 |
Intangible assets not subject to amortization | 912 | 912 |
Prepaid and other assets | 16,914 | 14,891 |
Nonqualified savings plan investments | 20,974 | 15,864 |
Debt issuance costs, net | 2,623 | 3,481 |
Assets held for sale | 4,045 | 4,108 |
Total Intangible and other assets, net | 85,177 | 67,359 |
Customer Relationships | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 64,521 | 65,023 |
Accumulated amortization | (40,153) | (37,251) |
Other Intangible Assets | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 20,207 | 6,298 |
Accumulated amortization | $ (4,866) | $ (5,967) |
Intangibles and Other Assets,75
Intangibles and Other Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Schedule of Intangible Assets Disclosure [Line Items] | |||
Amortization expense | $ 4.8 | $ 6.3 | $ 3.7 |
Future amortization expense, 2018 | 5.8 | ||
Future amortization expense, 2019 | 5.4 | ||
Future amortization expense, 2020 | 5.7 | ||
Future amortization expense, 2021 | 5.4 | ||
Future amortization expense, 2022 | $ 4 |
Revolving Notes - Additional In
Revolving Notes - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Aug. 31, 2017USD ($)CreditFacilityFacility | Aug. 31, 2016USD ($) | |
LIBOR | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, percentage points added to the reference rate | 1.75% | ||
Senior Secured Credit Facilities, Consisting of 3 Components | |||
Line of Credit Facility [Line Items] | |||
Number of senior secured credit facilities | CreditFacility | 3 | ||
Line of credit facility maximum capacity | $ 625,100,000 | ||
Letter of credit facility outstanding amount | 77,600,000 | $ 81,300,000 | |
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility maximum capacity | $ 550,000,000 | ||
Line of credit maturity date | 2020-10 | ||
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, percentage points added to the reference rate | 1.75% | ||
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | Prime Rate | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, percentage points added to the reference rate | 0.75% | ||
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility maximum capacity | $ 25,100,000 | ||
Letter of credit facility outstanding amount | $ 4,300,000 | ||
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Minimum | |||
Line of Credit Facility [Line Items] | |||
Line of credit maturity date | 2018-02 | ||
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Maximum | |||
Line of Credit Facility [Line Items] | |||
Line of credit maturity date | 2019-06 | ||
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | WIBOR | Minimum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, percentage points added to the reference rate | 1.20% | ||
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | WIBOR | Maximum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, percentage points added to the reference rate | 1.30% | ||
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | EURIBOR | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, percentage points added to the reference rate | 1.90% | ||
Mexican Railcar Manufacturing Joint Venture Line of Credit, 3rd Component of Senior Secured Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility maximum capacity | $ 50,000,000 | ||
Number of lines of credits | Facility | 2 | ||
Mexican Railcar Manufacturing Joint Venture Line of Credit 1, 3rd Component of Senior Secured Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility maximum capacity | $ 30,000,000 | ||
Line of credit facility borrowings outstanding due period | 2019-01 | ||
Mexican Railcar Manufacturing Joint Venture Line of Credit 1, 3rd Component of Senior Secured Credit Facilities | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, percentage points added to the reference rate | 2.00% | ||
Mexican Railcar Manufacturing Joint Venture Line of Credit 2, 3rd Component of Senior Secured Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility maximum capacity | $ 20,000,000 | ||
Line of credit facility borrowings outstanding due period | 2019-07 | ||
Joint venture partner each guaranteed percentage | 50.00% | ||
Mexican Railcar Manufacturing Joint Venture Line of Credit 2, 3rd Component of Senior Secured Credit Facilities | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, percentage points added to the reference rate | 2.00% |
Accounts Payable and Accrued 77
Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2014 |
Accounts Payable and Accrued Liabilities [Line Items] | ||||
Trade payables | $ 180,592 | $ 182,334 | ||
Other accrued liabilities | 107,002 | 71,260 | ||
Accrued payroll and related liabilities | 84,749 | 76,058 | ||
Accrued warranty | 20,737 | 12,159 | $ 11,512 | $ 9,340 |
Accrued maintenance | 17,667 | 18,646 | $ 18,642 | $ 14,329 |
Income taxes payable | 3,991 | |||
Other | 4,314 | 5,306 | ||
Accounts payable and accrued liabilities | $ 415,061 | $ 369,754 |
Warranty Accruals Activity (Det
Warranty Accruals Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Accrued maintenance | |||
Balance at beginning of period | $ 18,646 | $ 18,642 | $ 14,329 |
Charged to cost of revenue | 10,609 | 12,926 | 13,622 |
Payments | (11,588) | (12,922) | (9,309) |
Balance at end of period | 17,667 | 18,646 | 18,642 |
Accrued warranty | |||
Balance at beginning of period | 12,159 | 11,512 | 9,340 |
Charged to cost of revenue | 6,872 | 6,069 | 7,206 |
Acquisition | 3,526 | ||
Payments | (2,649) | (5,299) | (4,703) |
Currency translation effect | 829 | (123) | (331) |
Balance at end of period | $ 20,737 | $ 12,159 | $ 11,512 |
Notes Payable, Net (Detail)
Notes Payable, Net (Detail) - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 |
Debt Instrument [Line Items] | ||
Term loans | $ 184,001 | $ 184,906 |
Other notes payable | 19,540 | |
Notes payable, gross | 597,604 | 303,969 |
Debt discount and issuance costs | (39,376) | (2,116) |
Notes payable, net | 558,228 | 301,853 |
2018 Senior Notes | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | 119,063 | $ 119,063 |
2024 Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | $ 275,000 |
Notes Payable, Net - Additional
Notes Payable, Net - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Aug. 31, 2017 | Aug. 31, 2015 | Aug. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 2,623 | $ 3,481 | ||
Periodic Principal Payment | $ 1,750 | |||
Balloon payment | $ 159,800 | |||
Swap agreement interest rate | 50.00% | |||
Fixed interest rate | 3.7375% | |||
Debt instrument amount outstanding | 597,604 | $ 303,969 | ||
Greenbrier-Astra Rail | ||||
Debt Instrument [Line Items] | ||||
Unsecured related party debt | 15,100 | |||
LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, percentage points added to the reference rate | 1.75% | |||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Senior term debt | 200,000 | |||
Debt instrument amount outstanding | 177,300 | |||
Other Term Loan Due February 2018 to April 2020 | ||||
Debt Instrument [Line Items] | ||||
Senior term debt | $ 11,200 | |||
2018 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 3.50% | |||
Description of long term debt | Convertible senior notes, due 2018, bear interest at a fixed rate of 3.5%, paid semi-annually in arrears on April 1st and October 1st. | |||
Debt instrument, maturity date | Apr. 1, 2018 | |||
Convertible notes initial conversion rate, shares per $1,000 principal amount | 26.2838 | |||
Convertible notes conversion rate, per share | $ 38.05 | |||
Debt issuance costs | $ 7,900 | |||
Senior term debt | $ 230,000 | |||
Original debt Conversion, Amount | $ 110,900 | |||
Conversion of debt in to common stock, shares | 2.9 | |||
Debt instrument, carrying value of the principal balance | $ 119,100 | |||
Debt issuance costs removed from Notes Payable, net and charged against additional paid in capital | $ 1,600 | |||
Frequency of payments | Semi-annually | |||
2024 Convertible Senior Notes | ||||
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. | |||
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 | $ 60.16 | |||
Debt issuance costs | $ 8,000 | |||
Frequency of payments | Semi-annually | |||
Initial debt discount | $ 33,100 | |||
2024 Convertible Senior Notes | ASC 470-20 | ||||
Debt Instrument [Line Items] | ||||
Fair value assumed, interest rate | 5.00% | |||
Convertible notes, fair value | $ 241,900 | |||
Proceeds from the issuance of the notes | 275,000 | |||
Convertible notes, equity component | 33,100 | |||
2024 Convertible Senior Notes | ASC 470-20 | Additional Paid-in Capital | ||||
Debt Instrument [Line Items] | ||||
Convertible senior notes - equity component, net of tax | $ 12,300 |
Principal Payments on Notes Pay
Principal Payments on Notes Payable (Detail) - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 | |
Debt Instrument [Line Items] | |||
2,018 | [1] | $ 130,263 | |
2,019 | 26,040 | ||
2,020 | 166,301 | ||
2,021 | 0 | ||
2,022 | 0 | ||
Thereafter | [2] | 275,000 | |
Notes payable, gross | $ 597,604 | $ 303,969 | |
[1] | The repayment of the $119.1 million of Convertible senior notes due 2018 is assumed to occur in stock at the scheduled maturity in 2018 instead of assuming an earlier conversion by the holders. | ||
[2] | The repayment of the $275.0 million of Convertible senior notes due 2024 is assumed to occur at the scheduled maturity in 2024 instead of assuming an earlier conversion by the holders. |
Principal Payments on Notes P82
Principal Payments on Notes Payable (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
2018 Senior Notes | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | $ 119,063 | $ 119,063 |
Debt instrument, redemption, description | The repayment of the $119.1 million of Convertible senior notes due 2018 is assumed to occur in stock at the scheduled maturity in 2018 instead of assuming an earlier conversion by the holders. | |
2024 Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | $ 275,000 | |
Debt instrument, redemption, description | The repayment of the $275.0 million of Convertible senior notes due 2024 is assumed to occur at the scheduled maturity in 2024 instead of assuming an earlier conversion by the holders. |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 9 Months Ended |
Aug. 31, 2017USD ($) | |
Foreign Exchange Contracts | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 287,300,000 |
Amount reclassified to revenue or cost of revenue in the next 12 months | 800,000 |
Interest rate swap contracts | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 88,600,000 |
Maturity date | 2020-03 |
Unrealized pre-tax gain (loss) that would be reclassified to interest expense in the next 12 months | $ 700,000 |
Fair Values of Derivative Instr
Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 2,341 | $ 1,570 |
Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 2,886 | 7,444 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 2,341 | 1,570 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1,761 | 4,287 |
Designated as Hedging Instrument | Interest rate swap contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1,125 | 3,157 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 1,473 | 25 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 22 |
Effect of Derivative Instrument
Effect of Derivative Instruments on Consolidated Statements of Income (Detail) - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain recognized in income on derivatives | $ 3,230 | $ 426 |
Gain (loss) recognized in OCI on derivatives (effective portion) | 3,173 | (7,996) |
Gain (loss) reclassified accumulated OCI income (effective portion) | (4,701) | (3,696) |
Gain (loss) recognized on derivative (ineffective portion and amount excluded from effectiveness testing) | (2,595) | 259 |
Foreign Exchange Forward | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives (effective portion) | 1,746 | (4,698) |
Foreign Exchange Forward | Interest and Foreign Exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain recognized in income on derivatives | 3,207 | 336 |
Foreign Exchange Forward | Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) reclassified accumulated OCI income (effective portion) | (3,980) | (1,224) |
Gain (loss) recognized on derivative (ineffective portion and amount excluded from effectiveness testing) | (2,843) | 138 |
Foreign Exchange Forward | Cost Of Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives (effective portion) | 385 | (944) |
Gain (loss) reclassified accumulated OCI income (effective portion) | 336 | (911) |
Gain (loss) recognized on derivative (ineffective portion and amount excluded from effectiveness testing) | 248 | 121 |
Interest rate swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives (effective portion) | 1,042 | (2,354) |
Interest rate swap contracts | Interest and Foreign Exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain recognized in income on derivatives | 23 | 90 |
Gain (loss) reclassified accumulated OCI income (effective portion) | $ (1,057) | $ (1,561) |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | Oct. 27, 2017 | Sep. 30, 2017 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2017 | Jan. 31, 2013 |
Stockholders Equity Note [Line Items] | |||||||
Maximum aggregate number of common shares authorized for issuance | 4,325,000 | ||||||
Shares available for grant | 233,271 | 476,770 | 905,139 | 233,271 | |||
Performance based share based compensation | 269,705 | 447,895 | 402,196 | ||||
Share based compensation, non vested shares | 492,886 | 492,886 | |||||
Additional shares available for grant | 492,886 | ||||||
Unamortized compensation cost of restricted stock grants | $ 14,100,000 | $ 14,100,000 | |||||
Selling, Administrative and Cost of Revenue | |||||||
Stockholders Equity Note [Line Items] | |||||||
Restricted stock compensation expense | $ 20,200,000 | $ 22,500,000 | $ 19,500,000 | ||||
Share Repurchase Program - 2014 | |||||||
Stockholders Equity Note [Line Items] | |||||||
Repurchase of common stock, shares | 0 | 1,054,687 | 3,206,226 | ||||
Stock repurchase program total cost of repurchased shares | $ 32,400,000 | $ 137,000,000 | |||||
Remaining authorized repurchase amount | $ 88,000,000 | 88,000,000 | |||||
Repurchase program expiration date | Jan. 1, 2018 | ||||||
Subsequent Event | Share Repurchase Program - 2014 | |||||||
Stockholders Equity Note [Line Items] | |||||||
Repurchase program expiration date | Mar. 31, 2019 | Jan. 1, 2018 | |||||
Maximum | Share Repurchase Program - 2013 | |||||||
Stockholders Equity Note [Line Items] | |||||||
Amount authorized for repurchase | $ 225,000,000 | $ 225,000,000 | |||||
Unvested Restricted Stock Grants | |||||||
Stockholders Equity Note [Line Items] | |||||||
Share based compensation, non vested shares | 837,654 | 902,068 | 837,654 | ||||
Fair value of awards granted | $ 11,300,000 | $ 12,500,000 | $ 24,600,000 | ||||
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 |
Summary of Restricted Stock Sha
Summary of Restricted Stock Share and Restricted Stock Unit Grant Transactions for Shares, both Vested and Unvested (Detail) - shares | 12 Months Ended | |||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | ||
Reconciliation of Restricted Stock Activity [Line Items] | ||||
Beginning Balance | [1] | 3,848,230 | 3,419,861 | 3,180,857 |
Granted | 269,705 | 447,895 | 402,196 | |
Forfeited | (26,206) | (19,526) | (163,192) | |
Ending Balance | [1] | 4,091,729 | 3,848,230 | 3,419,861 |
[1] | Balance represents cumulative grants net of forfeitures. |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Earnings Per Common Share (Detail) - shares shares in Thousands | 12 Months Ended | |||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | ||
Earnings Per Share Disclosure [Line Items] | ||||
Weighted average basic common shares outstanding | [1] | 29,225 | 29,156 | 28,151 |
Dilutive effect of performance based restricted stock units | [2] | 42 | 98 | 45 |
Weighted average diluted common shares outstanding | 32,562 | 32,468 | 33,328 | |
2018 Senior Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Dilutive effect of convertible notes | [3] | 3,295 | 3,214 | 5,130 |
2026 Senior Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Dilutive effect of convertible notes | [4] | 2 | ||
[1] | Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, 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, 2017, 2016 and 2015. | |||
[2] | Restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. | |||
[3] | The dilutive effect of the 2018 Convertible notes was included as they were considered dilutive under the "if converted" method as further discussed below. | |||
[4] | The 2026 Convertible notes were retired in August 2016. The effect of the 2026 Convertible notes was excluded for the year ended August 31, 2016 as the average stock price was less than the applicable conversion price and therefore the notes were considered anti-dilutive. The dilutive effect of the 2026 Convertible notes was included for the year ended August 31, 2015 as the average stock price was greater than the applicable conversion price, as further described below. |
Reconciliation of Basic and D89
Reconciliation of Basic and Diluted Earnings Per Common Share (Parenthetical) (Detail) - shares | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Restricted Stock | |||
Earnings Per Share Disclosure [Line Items] | |||
Anti-dilutive shares excluded from calculation | 0 | 0 | 0 |
Approach to Calculate Diluted E
Approach to Calculate Diluted Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2016 | Nov. 30, 2015 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | ||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||||||
Net earnings attributable to Greenbrier | $ 23,746 | $ 32,823 | $ 34,536 | $ 24,962 | $ 33,560 | $ 35,352 | $ 44,868 | $ 69,433 | $ 116,067 | $ 183,213 | $ 192,832 | |||||||||||
Earnings before interest and debt issuance costs on convertible notes | $ 118,999 | $ 185,908 | $ 197,650 | |||||||||||||||||||
Weighted average diluted common shares outstanding | 32,562 | 32,468 | 33,328 | |||||||||||||||||||
Diluted earnings per share | $ 0.75 | [1] | $ 1.03 | [1] | $ 1.09 | [1] | $ 0.79 | [1] | $ 1.06 | [2] | $ 1.12 | [2] | $ 1.41 | [2] | $ 2.15 | [2] | $ 3.65 | [1],[3] | $ 5.73 | [2],[3] | $ 5.93 | [3] |
2018 Senior Notes | ||||||||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||||||
Interest and debt issuance costs on the 2018 Convertible notes, net of tax | $ 2,932 | $ 2,695 | $ 4,818 | |||||||||||||||||||
[1] | Quarterly amounts may 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 and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings. | |||||||||||||||||||||
[2] | Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings. | |||||||||||||||||||||
[3] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on convertible notes Weighted average diluted common shares outstanding |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2015USD ($)Vehicle | Aug. 31, 2017USD ($)Vehicle | Aug. 31, 2016USD ($) | Aug. 31, 2015USD ($) | Jun. 30, 2017 | May 31, 2017 | Apr. 30, 2017 | Feb. 28, 2017USD ($) | Nov. 30, 2016USD ($) | Apr. 30, 2016USD ($)Vehicle | |
Related Party Transaction [Line Items] | ||||||||||
Equity method investment, percentage of ownership interest | 50.00% | |||||||||
Carrying amount of investment in unconsolidated affiliates | $ 7 | |||||||||
Sale of railcars | $ 130 | |||||||||
Percentage of recognized revenue and margin from sale | 60.00% | |||||||||
Percentage of deferred revenue and margin from sale | 40.00% | |||||||||
Note receivable | $ 36.5 | |||||||||
Related party expenses | $ 0.5 | $ 0.8 | $ 0.5 | |||||||
Number of railcars sold, scrapped or transferred | Vehicle | 3,885 | |||||||||
Greenbrier | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Equity method investment, percentage of ownership interest | 40.00% | 40.00% | ||||||||
Third Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Equity method investment, percentage of ownership interest | 60.00% | |||||||||
WL Ross & Co., LLC (WL Ross) | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of related party railcars purchased | Vehicle | 3,885 | 4,000 | ||||||||
Value of railcars | $ 148 | $ 256 | ||||||||
Related party fee | $ 1 | |||||||||
Profit sharing agreement, amount paid | $ 3.6 | $ 4.5 | ||||||||
GBW Railcar Services LLC | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Equity method investment, percentage of ownership interest | 50.00% | 50.00% | ||||||||
Sale of railcars | $ 18.3 | 28.5 | $ 25.4 | |||||||
Note receivable | 36.5 | |||||||||
Related party transaction other revenue | 4.9 | 4.9 | 4.9 | |||||||
Related party expenses | $ 1 | $ 1.3 | $ 2.4 | |||||||
GBW Railcar Services LLC | Watco Companies LLC | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Equity method investment, percentage of ownership interest | 50.00% | |||||||||
Amsted-Maxion Cruzeiro | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Equity method investment, percentage of ownership interest | 24.50% | 24.50% | 19.50% | |||||||
Note receivable | $ 10 |
Components of Income Tax Expens
Components of Income Tax Expense of Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2016 | Nov. 30, 2015 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Current | |||||||||||
Federal | $ 22,710 | $ 66,455 | $ 92,525 | ||||||||
State | 305 | 4,595 | 6,349 | ||||||||
Foreign | 35,893 | 50,299 | 32,748 | ||||||||
Current Income Tax Expense (Benefit), Total | 58,908 | 121,349 | 131,622 | ||||||||
Deferred | |||||||||||
Federal | 9,418 | (6,199) | (13,565) | ||||||||
State | (1,467) | (1,174) | (1,112) | ||||||||
Foreign | (2,732) | (1,644) | (4,423) | ||||||||
Total Deferred Income Tax Expense (Benefit) | 5,219 | (9,017) | (19,100) | ||||||||
Change in valuation allowance | (113) | (10) | (362) | ||||||||
Income tax expense | $ 10,114 | $ 8,656 | $ 24,858 | $ 20,386 | $ 19,420 | $ 22,449 | $ 25,734 | $ 44,719 | $ 64,014 | $ 112,322 | $ 112,160 |
Reconciliation Between Effectiv
Reconciliation Between Effective and Statutory Tax Rates on Continuing Operations (Detail) | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Income Taxes [Line Items] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 0.10% | 0.70% | 1.00% |
Impact of foreign operations | (3.40%) | 0.10% | (0.50%) |
Change in valuation allowance | (0.10%) | ||
Noncontrolling interest in flow-through entity | (6.00%) | (7.40%) | (5.70%) |
Permanent differences and other | 1.40% | 0.20% | |
Effective tax rate | 27.10% | 28.40% | 29.90% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax and earnings from unconsolidated affiliates,Domestic u.s. operations | $ 123,200 | $ 264,800 | $ 292,600 |
Income tax and earnings from unconsolidated affiliates,Foreign operations | 113,000 | 130,300 | $ 83,100 |
Tax deficiency from restricted stock awards | 2,339 | ||
Cumulative undistributed earnings of foreign subsidiaries | 199,800 | ||
Unrecognized tax benefits, excluding interest | 1,800 | 900 | |
Unrecognized tax benefits if recognized would affect effective tax rate | 900 | ||
Accrued interest related to uncertain tax provisions | 200 | ||
Interest benefit relating to reserves for uncertain tax provisions | 100 | $ 100 | |
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 1,000 | ||
Operating loss carryforwards expiration dates | 2,020 | ||
Credit carryforwards | $ 2,000 | ||
Credit carryforwards expiration Year | 2,021 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 3,900 | ||
Operating loss carryforwards expiration dates | 2,020 |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences that give rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 |
Deferred tax assets: | ||
Accrued payroll and related liabilities | $ 28,761 | $ 26,384 |
Deferred revenue | 7,547 | 18,533 |
Maintenance and warranty accruals | 10,988 | 10,604 |
Inventories and other | 13,641 | 7,599 |
Derivative instruments and translation adjustment | 371 | 1,153 |
Investment and asset tax credits | 1,840 | 511 |
Net operating losses | 320 | 429 |
Deferred Tax Assets, Gross, Total | 63,468 | 65,213 |
Deferred tax liabilities: | ||
Fixed assets | 110,429 | 97,490 |
Investment in GBW Joint Venture | 14,066 | 16,144 |
Original issue discount | 11,086 | |
Intangibles | 3,605 | 3,212 |
Deferred gain on redemption of debt | 859 | 1,718 |
Other | (1,319) | (2,344) |
Deferred Tax Liabilities, Gross, Total | 138,726 | 116,220 |
Valuation allowance | 533 | 612 |
Net deferred tax liability | $ 75,791 | $ 51,619 |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Income Taxes [Line Items] | |||
Unrecognized Tax Benefit - Opening Balance | $ 942 | $ 1,019 | $ 1,030 |
Gross increases - tax positions in prior period | 1,368 | ||
Gross decreases - tax positions in prior period | (53) | ||
Settlements | 0 | 0 | 0 |
Lapse of statute of limitations | (437) | (77) | (11) |
Unrecognized Tax Benefit - Ending Balance | $ 1,820 | $ 942 | $ 1,019 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Aug. 31, 2017Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
Segments Internal Financial Rep
Segments Internal Financial Reports (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2016 | Nov. 30, 2015 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | $ 611,407 | $ 439,161 | $ 566,282 | $ 552,314 | $ 595,190 | $ 612,866 | $ 669,079 | $ 802,389 | $ 2,169,164 | [1] | $ 2,679,524 | [1] | $ 2,605,278 | [1] |
Earnings (loss) from operations | 57,780 | 48,472 | 81,520 | 72,660 | 83,545 | 84,129 | 92,393 | 148,485 | 260,432 | 408,552 | 386,892 | |||
Assets | 2,397,705 | 1,835,774 | 2,397,705 | 1,835,774 | 1,787,452 | |||||||||
Depreciation and amortization | 65,129 | 63,345 | 45,156 | |||||||||||
Capital expenditures | 86,065 | 139,013 | 105,989 | |||||||||||
Manufacturing | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 508,547 | 317,104 | 445,504 | 454,033 | 484,645 | 458,494 | 454,531 | 698,661 | 1,725,188 | 2,096,331 | 2,136,051 | |||
Earnings (loss) from operations | 295,334 | 415,094 | 396,921 | |||||||||||
Wheels & Parts | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 75,099 | 85,231 | 82,714 | 69,635 | 74,791 | 78,417 | 90,458 | 78,729 | 312,679 | 322,395 | 371,237 | |||
Earnings (loss) from operations | 14,984 | 19,948 | 27,563 | |||||||||||
Leasing & Services | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 27,761 | $ 36,826 | $ 38,064 | $ 28,646 | 35,754 | $ 75,955 | $ 124,090 | $ 24,999 | 131,297 | 260,798 | 97,990 | |||
Earnings (loss) from operations | 31,904 | 51,723 | 41,887 | |||||||||||
Operating Segments | Manufacturing | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 1,744,479 | 2,185,489 | 2,143,585 | |||||||||||
Earnings (loss) from operations | 296,356 | 439,393 | 397,716 | |||||||||||
Assets | 914,450 | 701,296 | 914,450 | 701,296 | 675,409 | |||||||||
Depreciation and amortization | 33,807 | 27,137 | 20,668 | |||||||||||
Capital expenditures | 54,973 | 51,294 | 84,354 | |||||||||||
Operating Segments | Wheels & Parts | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 343,540 | 354,831 | 398,494 | |||||||||||
Earnings (loss) from operations | 17,287 | 22,550 | 30,192 | |||||||||||
Assets | 236,315 | 275,599 | 236,315 | 275,599 | 291,798 | |||||||||
Depreciation and amortization | 11,143 | 11,971 | 11,748 | |||||||||||
Capital expenditures | 3,129 | 10,190 | 9,381 | |||||||||||
Operating Segments | Leasing & Services | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 143,109 | 273,899 | 160,590 | |||||||||||
Earnings (loss) from operations | 43,003 | 64,824 | 104,487 | |||||||||||
Assets | 535,323 | 516,147 | 535,323 | 516,147 | 546,013 | |||||||||
Depreciation and amortization | 20,179 | 24,237 | 12,740 | |||||||||||
Capital expenditures | 27,963 | 77,529 | 12,254 | |||||||||||
Operating Segments | Unallocated Amount to Segment | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Assets | $ 711,617 | $ 342,732 | 711,617 | 342,732 | 274,232 | |||||||||
Corporate, Non-Segment | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Earnings (loss) from operations | (81,790) | (78,213) | (79,479) | |||||||||||
Intersegment Eliminations | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | (61,964) | (134,695) | (97,391) | |||||||||||
Earnings (loss) from operations | (14,424) | (40,002) | (66,024) | |||||||||||
Intersegment Eliminations | Manufacturing | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | (19,291) | (89,158) | (7,534) | |||||||||||
Earnings (loss) from operations | (1,022) | (24,299) | (795) | |||||||||||
Intersegment Eliminations | Wheels & Parts | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | (30,861) | (32,436) | (27,257) | |||||||||||
Earnings (loss) from operations | (2,303) | (2,602) | (2,629) | |||||||||||
Intersegment Eliminations | Leasing & Services | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | (11,812) | (13,101) | (62,600) | |||||||||||
Earnings (loss) from operations | $ (11,099) | $ (13,101) | $ (62,600) | |||||||||||
[1] | Revenue is presented on the basis of geographic location of customers. |
Summary of Geographic Informati
Summary of Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2016 | Nov. 30, 2015 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Revenue | $ 611,407 | $ 439,161 | $ 566,282 | $ 552,314 | $ 595,190 | $ 612,866 | $ 669,079 | $ 802,389 | $ 2,169,164 | [1] | $ 2,679,524 | [1] | $ 2,605,278 | [1] | |
Assets | 2,397,705 | 1,835,774 | 2,397,705 | 1,835,774 | 1,787,452 | ||||||||||
UNITED STATES | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Revenue | [1] | 1,674,517 | 2,297,501 | 2,404,266 | |||||||||||
Assets | 1,307,239 | 955,674 | 1,307,239 | 955,674 | 1,181,751 | ||||||||||
Foreign | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Revenue | [1] | 494,647 | 382,023 | 201,012 | |||||||||||
Mexico | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Assets | 791,974 | 788,878 | 791,974 | 788,878 | 524,724 | ||||||||||
Europe | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Assets | $ 298,492 | $ 91,222 | $ 298,492 | $ 91,222 | $ 80,977 | ||||||||||
[1] | Revenue is presented on the basis of geographic location of customers. |
Reconciliation of Segment Margi
Reconciliation of Segment Margin to Earnings Before Income Tax and Earnings from Unconsolidated Affiliates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2016 | Nov. 30, 2015 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||||||||
Earnings from operations | $ 57,780 | $ 48,472 | $ 81,520 | $ 72,660 | $ 83,545 | $ 84,129 | $ 92,393 | $ 148,485 | $ 260,432 | $ 408,552 | $ 386,892 |
Interest and foreign exchange | 8,901 | 7,894 | 5,673 | 1,724 | 2,937 | 3,712 | 1,417 | 5,436 | 24,192 | 13,502 | 11,179 |
Earnings before income tax and earnings from unconsolidated affiliates | $ 48,879 | $ 40,578 | $ 75,847 | $ 70,936 | $ 80,608 | $ 80,417 | $ 90,976 | $ 143,049 | $ 236,240 | $ 395,050 | $ 375,713 |
Results of Operations for GBW J
Results of Operations for GBW Joint Venture (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2016 | Nov. 30, 2015 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue | $ 611,407 | $ 439,161 | $ 566,282 | $ 552,314 | $ 595,190 | $ 612,866 | $ 669,079 | $ 802,389 | $ 2,169,164 | [1] | $ 2,679,524 | [1] | $ 2,605,278 | [1] | |
Earnings (loss) from operations | 57,780 | $ 48,472 | $ 81,520 | $ 72,660 | 83,545 | $ 84,129 | $ 92,393 | $ 148,485 | 260,432 | 408,552 | 386,892 | ||||
Assets | 2,397,705 | 1,835,774 | 2,397,705 | 1,835,774 | 1,787,452 | ||||||||||
Capital expenditures | 86,065 | 139,013 | 105,989 | ||||||||||||
GBW Railcar Services LLC | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue | 253,436 | 373,490 | 349,849 | ||||||||||||
Earnings (loss) from operations | (32,454) | 8,558 | (1,160) | ||||||||||||
Assets | [2] | $ 206,009 | $ 247,610 | 206,009 | 247,610 | 239,871 | |||||||||
Depreciation and amortization | 9,023 | 7,676 | 4,590 | ||||||||||||
Capital expenditures | $ 8,030 | $ 16,110 | $ 26,396 | ||||||||||||
[1] | Revenue is presented on the basis of geographic location of customers. | ||||||||||||||
[2] | Includes goodwill and intangible assets of $78.8 million, $93.4 million and $96.9 million as of August 31, 2017, 2016 and 2015, respectively. In 2017, GBW recorded a pre-tax goodwill impairment loss of $11.2 million which reduced the goodwill balance to $41.5 million. |
Results of Operations for GB102
Results of Operations for GBW Joint Venture (Parenthetical) (Detail) - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 |
Segment Reporting Information [Line Items] | |||
Pre-tax goodwill impairment loss | $ 128,209 | ||
Goodwill | 68,590 | $ 43,265 | |
GBW Railcar Services LLC | |||
Segment Reporting Information [Line Items] | |||
Goodwill and intangible assets | 78,800 | $ 93,400 | $ 96,900 |
Pre-tax goodwill impairment loss | 11,200 | ||
Goodwill | $ 41,500 |
Customer Concentration - Additi
Customer Concentration - Additional Information (Detail) | Aug. 31, 2016 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 |
Customer Concentration Risk | Sales Revenue, Net | Customer One Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 20.00% | 17.00% | 17.00% | |
Customer Concentration Risk | Sales Revenue, Net | Customer Two Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 14.00% | |||
Credit Concentration Risk | Accounts Receivable | Customer One Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 23.00% | 13.00% | ||
Credit Concentration Risk | Accounts Receivable | Customer Two Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 11.00% | 13.00% | ||
Credit Concentration Risk | Accounts Receivable | Customer Three Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.00% |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | |
Railcar Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease expense | $ 7.6 | $ 6.6 | $ 6.3 |
Domestic railcar repair facilities, office space and certain manufacturing and office equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lease expense | $ 9.4 | $ 9.3 | $ 9.3 |
Aggregate Minimum Future Amo105
Aggregate Minimum Future Amounts Payable under Non-Cancelable Railcar Equipment Leases (Detail) - Railcar Equipment $ in Thousands | Aug. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | |
2,018 | $ 7,363 |
2,019 | 6,177 |
2,020 | 4,832 |
2,021 | 1,792 |
2,022 | 1,792 |
Thereafter | 3,602 |
Operating Leases, Future Minimum Payments Due | $ 25,558 |
Aggregate Minimum Future Amo106
Aggregate Minimum Future Amounts Payable Under Non-Cancelable Operating Leases (Detail) - Domestic railcar repair facilities, office space and certain manufacturing and office equipment $ in Thousands | Aug. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | |
2,018 | $ 5,006 |
2,019 | 3,585 |
2,020 | 3,304 |
2,021 | 2,217 |
2,022 | 705 |
Thereafter | 341 |
Operating Leases, Future Minimum Payments Due, Total | $ 15,158 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jun. 30, 2017USD ($) | Jan. 06, 2017USD ($)Segment | Aug. 31, 2017USD ($) | Dec. 31, 2016USD ($) | May 31, 2017 | Apr. 30, 2017 | Nov. 30, 2016USD ($) | Aug. 31, 2015 |
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Remedial investigation and feasibility study | $ 110,000,000 | |||||||
Equity method investment, percentage of ownership interest | 50.00% | |||||||
Payment to acquire equity method investments | $ 600,000 | |||||||
Note receivable | 36,500,000 | |||||||
Performance Guarantee | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Letter of credit facility outstanding amount | $ 77,600,000 | |||||||
Portland Harbor Site | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Number of sediment decision units | Segment | 13 | |||||||
Estimated undiscounted cost | $ 1,700,000,000 | |||||||
Period for remedial action | 13 years | |||||||
Period for monitoring | 30 years | |||||||
New data collection period to reflect actual cost prior to final remedy design | 2 years | |||||||
Portland Harbor Site | Minimum | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Accuracy of cost estimate | (30.00%) | |||||||
Portland Harbor Site | Maximum | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Accuracy of cost estimate | 50.00% | |||||||
GBW Railcar Services LLC | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Equity method investment, percentage of ownership interest | 50.00% | 50.00% | ||||||
Note receivable | $ 36,500,000 | |||||||
Amsted-Maxion Cruzeiro | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Equity method investment, percentage of ownership interest | 24.50% | 24.50% | 19.50% | |||||
Note receivable | $ 10,000,000 | |||||||
Pending Litigation | Commercial Litigation in a Foreign Jurisdictions | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Adverse judgment | $ 15,000,000 | |||||||
Adverse judgment | $ 10,000,000 |
Fair Value of Financial Inst108
Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 | |
Carrying (Reported) Amount, Fair Value Disclosure | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | [1] | $ 597,604 | $ 303,969 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | $ 644,708 | $ 314,687 | |
[1] | Carrying amount disclosed in this table excludes debt discount and debt issuance costs. |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Aug. 31, 2017 | Aug. 31, 2016 | |
Assets: | |||
Nonqualified savings plan investments | $ 20,974 | $ 15,864 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | 3,814 | 1,595 | |
Nonqualified savings plan investments | 20,974 | 15,864 | |
Cash equivalents | 105,337 | 5,077 | |
Assets, Fair Value Disclosure, Total | 130,125 | 22,536 | |
Liabilities: | |||
Derivative financial instruments | 2,886 | 7,466 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Nonqualified savings plan investments | 20,974 | 15,864 | |
Cash equivalents | 105,337 | 5,077 | |
Assets, Fair Value Disclosure, Total | 126,311 | 20,941 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | [1] | 3,814 | 1,595 |
Assets, Fair Value Disclosure, Total | [1] | 3,814 | 1,595 |
Liabilities: | |||
Derivative financial instruments | [1] | $ 2,886 | $ 7,466 |
[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 Operati110
Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2016 | Nov. 30, 2015 | Aug. 31, 2017 | Aug. 31, 2016 | Aug. 31, 2015 | ||||||||||||
Revenue | ||||||||||||||||||||||
Revenues | $ 611,407 | $ 439,161 | $ 566,282 | $ 552,314 | $ 595,190 | $ 612,866 | $ 669,079 | $ 802,389 | $ 2,169,164 | [1] | $ 2,679,524 | [1] | $ 2,605,278 | [1] | ||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | 511,485 | 349,460 | 447,357 | 439,563 | 475,507 | 485,768 | 549,188 | 617,624 | 1,747,865 | 2,128,087 | 2,067,925 | |||||||||||
Margin | 99,922 | 89,701 | 118,925 | 112,751 | 119,683 | 127,098 | 119,891 | 184,765 | 421,299 | 551,437 | 537,353 | |||||||||||
Selling and administrative | 47,089 | 42,810 | 39,495 | 41,213 | 40,608 | 43,280 | 38,244 | 36,549 | 170,607 | 158,681 | 151,791 | |||||||||||
Net gain on disposition of equipment | (4,947) | (1,581) | (2,090) | (1,122) | (4,470) | (311) | (10,746) | (269) | (9,740) | (15,796) | (1,330) | |||||||||||
Earnings from operations | 57,780 | 48,472 | 81,520 | 72,660 | 83,545 | 84,129 | 92,393 | 148,485 | 260,432 | 408,552 | 386,892 | |||||||||||
Selling and administrative | 47,089 | 42,810 | 39,495 | 41,213 | 40,608 | 43,280 | 38,244 | 36,549 | 170,607 | 158,681 | 151,791 | |||||||||||
Net gain on disposition of equipment | (4,947) | (1,581) | (2,090) | (1,122) | (4,470) | (311) | (10,746) | (269) | (9,740) | (15,796) | (1,330) | |||||||||||
Earnings from operations | 57,780 | 48,472 | 81,520 | 72,660 | 83,545 | 84,129 | 92,393 | 148,485 | 260,432 | 408,552 | 386,892 | |||||||||||
Other costs | ||||||||||||||||||||||
Interest and foreign exchange | 8,901 | 7,894 | 5,673 | 1,724 | 2,937 | 3,712 | 1,417 | 5,436 | 24,192 | 13,502 | 11,179 | |||||||||||
Earnings before income tax and earnings (loss) from unconsolidated affiliates | 48,879 | 40,578 | 75,847 | 70,936 | 80,608 | 80,417 | 90,976 | 143,049 | 236,240 | 395,050 | 375,713 | |||||||||||
Income tax expense | (10,114) | (8,656) | (24,858) | (20,386) | (19,420) | (22,449) | (25,734) | (44,719) | (64,014) | (112,322) | (112,160) | |||||||||||
Earnings (loss) from unconsolidated affiliates | (6,511) | (681) | (1,988) | (2,584) | (825) | 1,564 | 974 | 383 | (11,764) | 2,096 | 1,756 | |||||||||||
Net earnings | 32,254 | 31,241 | 49,001 | 47,966 | 60,363 | 59,532 | 66,216 | 98,713 | 160,462 | 284,824 | 265,309 | |||||||||||
Net earnings attributable to noncontrolling interest | (8,508) | 1,582 | (14,465) | (23,004) | (26,803) | (24,180) | (21,348) | (29,280) | (44,395) | (101,611) | (72,477) | |||||||||||
Net earnings attributable to Greenbrier | $ 23,746 | $ 32,823 | $ 34,536 | $ 24,962 | $ 33,560 | $ 35,352 | $ 44,868 | $ 69,433 | $ 116,067 | $ 183,213 | $ 192,832 | |||||||||||
Basic earnings per common share | $ 0.81 | [2] | $ 1.12 | [2] | $ 1.19 | [2] | $ 0.86 | [2] | $ 1.15 | [3] | $ 1.22 | [3] | $ 1.54 | [3] | $ 2.36 | [3] | $ 3.97 | [2] | $ 6.28 | [3] | $ 6.85 | |
Diluted earnings per common share | 0.75 | [2] | 1.03 | [2] | 1.09 | [2] | 0.79 | [2] | 1.06 | [3] | 1.12 | [3] | 1.41 | [3] | 2.15 | [3] | 3.65 | [2],[4] | 5.73 | [3],[4] | 5.93 | [4] |
Basic earnings per common share | 0.81 | [2] | 1.12 | [2] | 1.19 | [2] | 0.86 | [2] | 1.15 | [3] | 1.22 | [3] | 1.54 | [3] | 2.36 | [3] | 3.97 | [2] | 6.28 | [3] | 6.85 | |
Diluted earnings per common share | $ 0.75 | [2] | $ 1.03 | [2] | $ 1.09 | [2] | $ 0.79 | [2] | $ 1.06 | [3] | $ 1.12 | [3] | $ 1.41 | [3] | $ 2.15 | [3] | $ 3.65 | [2],[4] | $ 5.73 | [3],[4] | $ 5.93 | [4] |
Manufacturing | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
Revenues | $ 508,547 | $ 317,104 | $ 445,504 | $ 454,033 | $ 484,645 | $ 458,494 | $ 454,531 | $ 698,661 | $ 1,725,188 | $ 2,096,331 | $ 2,136,051 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | 425,531 | 245,228 | 346,653 | 356,555 | 382,919 | 352,775 | 361,827 | 533,033 | 1,373,967 | 1,630,554 | 1,691,414 | |||||||||||
Earnings from operations | 295,334 | 415,094 | 396,921 | |||||||||||||||||||
Earnings from operations | 295,334 | 415,094 | 396,921 | |||||||||||||||||||
Wheels & Parts | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
Revenues | 75,099 | 85,231 | 82,714 | 69,635 | 74,791 | 78,417 | 90,458 | 78,729 | 312,679 | 322,395 | 371,237 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | 69,876 | 77,985 | 75,497 | 64,978 | 69,543 | 69,818 | 81,388 | 73,002 | 288,336 | 293,751 | 334,680 | |||||||||||
Earnings from operations | 14,984 | 19,948 | 27,563 | |||||||||||||||||||
Earnings from operations | 14,984 | 19,948 | 27,563 | |||||||||||||||||||
Leasing & Services | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
Revenues | 27,761 | 36,826 | 38,064 | 28,646 | 35,754 | 75,955 | 124,090 | 24,999 | 131,297 | 260,798 | 97,990 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | $ 16,078 | $ 26,247 | $ 25,207 | $ 18,030 | $ 23,045 | $ 63,175 | $ 105,973 | $ 11,589 | 85,562 | 203,782 | 41,831 | |||||||||||
Earnings from operations | 31,904 | 51,723 | 41,887 | |||||||||||||||||||
Earnings from operations | $ 31,904 | $ 51,723 | $ 41,887 | |||||||||||||||||||
[1] | Revenue is presented on the basis of geographic location of customers. | |||||||||||||||||||||
[2] | Quarterly amounts may 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 and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings. | |||||||||||||||||||||
[3] | Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted earnings per common share includes the dilutive effect of the 2026 Convertible Notes using the treasury stock method when dilutive and the dilutive effect of shares underlying the 2018 Convertible Notes using the "if converted" method in which debt issuance and interest costs, net of tax, were added back to net earnings. | |||||||||||||||||||||
[4] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on convertible notes Weighted average diluted common shares outstanding |