Cover Page
Cover Page - shares | 9 Months Ended | |
May 31, 2020 | Jul. 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | THE GREENBRIER COMPANIES, INC. | |
Trading Symbol | GBX | |
Security Exchange Name | NYSE | |
Entity Central Index Key | 0000923120 | |
Current Fiscal Year End Date | --08-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Title of 12(b) Security | Common Stock | |
Entity Common Stock, Shares Outstanding | 32,700,933 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-13146 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | OR | |
Entity Tax Identification Number | 93-0816972 | |
Entity Address, Address Line One | One Centerpointe Drive | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Lake Oswego | |
Entity Address, State or Province | OR | |
Entity Address, Postal Zip Code | 97035 | |
City Area Code | 503 | |
Local Phone Number | 684-7000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2020 | Aug. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 735,258 | $ 329,684 |
Restricted cash | 8,704 | 8,803 |
Accounts receivable, net | 261,629 | 373,383 |
Inventories | 675,442 | 664,693 |
Leased railcars for syndication | 136,144 | 182,269 |
Equipment on operating leases, net | 355,841 | 366,688 |
Property, plant and equipment, net | 719,155 | 717,973 |
Investment in unconsolidated affiliates | 75,508 | 91,818 |
Intangibles and other assets, net | 181,315 | 125,379 |
Goodwill | 130,035 | 129,947 |
Total assets | 3,279,031 | 2,990,637 |
Liabilities and Equity | ||
Revolving notes | 416,535 | 27,115 |
Accounts payable and accrued liabilities | 488,969 | 568,360 |
Deferred income taxes | 4,354 | 13,946 |
Deferred revenue | 63,536 | 85,070 |
Notes payable, net | 806,919 | 822,885 |
Commitments and contingencies (Note 15) | ||
Contingently redeemable noncontrolling interest | 30,611 | 31,564 |
Greenbrier | ||
Preferred stock – without par value; 25,000 shares authorized; none outstanding | ||
Common stock - without par value; 50,000 shares authorized; 32,701 and 32,488 shares outstanding at May 31, 2020 and August 31, 2019 | ||
Additional paid-in capital | 459,668 | 453,943 |
Retained earnings | 894,619 | 867,602 |
Accumulated other comprehensive loss | (63,066) | (44,815) |
Total equity – Greenbrier | 1,291,221 | 1,276,730 |
Noncontrolling interest | 176,886 | 164,967 |
Total equity | 1,468,107 | 1,441,697 |
Liabilities and Equity | $ 3,279,031 | $ 2,990,637 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | May 31, 2020 | Aug. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, without par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, without par value | $ 0 | $ 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares outstanding | 32,701,000 | 32,488,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | ||
Revenue | |||||
Revenue | $ 762,557 | $ 856,152 | $ 2,155,764 | $ 2,119,346 | |
Cost of revenue | |||||
Cost of revenue | 655,026 | 749,580 | 1,869,708 | 1,886,397 | |
Margin | 107,531 | 106,572 | 286,056 | 232,949 | |
Selling and administrative expense | 49,494 | 54,377 | 158,455 | 152,701 | |
Net gain on disposition of equipment | (8,775) | (11,019) | (19,431) | (37,474) | |
Goodwill impairment | 10,025 | 10,025 | |||
Earnings from operations | 66,812 | 53,189 | 147,032 | 107,697 | |
Other costs | |||||
Interest and foreign exchange | 7,562 | 9,770 | 33,023 | 23,411 | |
Earnings before income taxes and earnings (loss) from unconsolidated affiliates | 59,250 | 43,419 | 114,009 | 84,286 | |
Income tax expense | (24,421) | (13,008) | (37,878) | (24,391) | |
Earnings before earnings (loss) from unconsolidated affiliates | 34,829 | 30,411 | 76,131 | 59,895 | |
Earnings (loss) from unconsolidated affiliates | 1,040 | (4,564) | 3,764 | (4,883) | |
Net earnings | 35,869 | 25,847 | 79,895 | 55,012 | |
Net earnings attributable to noncontrolling interest | (8,097) | (10,599) | (30,825) | (19,043) | |
Net earnings attributable to Greenbrier | $ 27,772 | $ 15,248 | $ 49,070 | $ 35,969 | |
Basic earnings per common share | $ 0.85 | $ 0.47 | $ 1.50 | $ 1.10 | |
Diluted earnings per common share | $ 0.83 | $ 0.46 | $ 1.47 | $ 1.08 | |
Weighted average common shares: | |||||
Basic | [1] | 32,690 | 32,603 | 32,660 | 32,623 |
Diluted | 33,478 | 33,183 | 33,414 | 33,161 | |
Dividends declared per common share | $ 0.27 | $ 0.25 | $ 0.79 | $ 0.75 | |
Manufacturing | |||||
Revenue | |||||
Revenue | $ 653,007 | $ 681,588 | $ 1,800,317 | $ 1,629,396 | |
Cost of revenue | |||||
Cost of revenue | 562,793 | 590,788 | 1,567,014 | 1,451,589 | |
Earnings from operations | 68,445 | 72,110 | 167,693 | 122,955 | |
Wheels, Repair & Parts | |||||
Revenue | |||||
Revenue | 82,024 | 124,980 | 259,857 | 358,801 | |
Cost of revenue | |||||
Cost of revenue | 75,001 | 119,821 | 241,266 | 339,254 | |
Earnings from operations | 3,785 | (8,820) | 8,219 | (2,750) | |
Leasing & Services | |||||
Revenue | |||||
Revenue | 27,526 | 49,584 | 95,590 | 131,149 | |
Cost of revenue | |||||
Cost of revenue | 17,232 | 38,971 | 61,428 | 95,554 | |
Earnings from operations | $ 11,837 | $ 15,337 | $ 34,407 | $ 53,880 | |
[1] | Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net earnings | $ 35,869 | $ 25,847 | $ 79,895 | $ 55,012 | |
Other comprehensive income (loss) | |||||
Translation adjustment | (11,029) | (5,083) | (13,315) | (7,269) | |
Reclassification of derivative financial instruments recognized in net earnings | [1] | 1,845 | 306 | 2,322 | 1,476 |
Unrealized loss on derivative financial instruments | [2] | (5,643) | (1,729) | (7,127) | (5,066) |
Other (net of tax effect) | 81 | (1) | (140) | 75 | |
Other comprehensive income | (14,746) | (6,507) | (18,260) | (10,784) | |
Comprehensive income | 21,123 | 19,340 | 61,635 | 44,228 | |
Comprehensive income attributable to noncontrolling interest | (8,096) | (10,590) | (30,816) | (19,013) | |
Comprehensive income attributable to Greenbrier | $ 13,027 | $ 8,750 | $ 30,819 | $ 25,215 | |
[1] | Net of tax effect of ($0.6 million) and ($0.1 million) for the three months ended May 31, 2020 and 2019 and ($0.8 million) and ($0.5 million) for the nine months ended May 31, 2020 and 2019. | ||||
[2] | Net of tax effect of $2.1 million and $0.5 million for the three months ended May 31, 2020 and 2019 and $2.8 million and $1.6 million for the nine months ended May 31, 2020 and 2019. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Reclassification of derivative financial instruments recognized in net earnings (loss), tax | $ 0.6 | $ 0.1 | $ 0.8 | $ 0.5 |
Unrealized loss on derivative financial instruments, tax | $ 2.1 | $ 0.5 | $ 2.8 | $ 1.6 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity - Greenbrier | Noncontrolling Interest | Equity Excluding Contingently Redeemable Noncontrolling Interest | Contingently Redeemable Noncontrolling Interest |
Beginning balance at Feb. 28, 2018 | $ 25,637 | ||||||||
Net earnings | (915) | ||||||||
Beginning balance at Feb. 28, 2018 | $ 444,962 | $ 840,478 | $ (27,622) | $ 1,257,818 | $ 145,459 | $ 1,403,277 | |||
Beginning balance (in shares) at Feb. 28, 2018 | 32,379 | ||||||||
Net earnings | 15,248 | 15,248 | 11,514 | 26,762 | |||||
Other comprehensive loss, net | (6,498) | (6,498) | (9) | (6,507) | |||||
Noncontrolling interest adjustments | 2,016 | 2,016 | |||||||
Joint venture partner distribution declared | (4,064) | (4,064) | |||||||
Restricted stock awards (net of cancellations) (in shares) | 105 | ||||||||
Restricted stock awards (net of cancellations) | 38 | 38 | 38 | ||||||
Restricted stock amortization | 4,002 | 4,002 | 4,002 | ||||||
Cash dividends | (8,293) | (8,293) | (8,293) | ||||||
Ending balance at May. 31, 2019 | 449,002 | 847,433 | (34,120) | 1,262,315 | 154,916 | 1,417,231 | |||
Ending Balance (in shares) at May. 31, 2019 | 32,484 | ||||||||
Ending Balance at May. 31, 2019 | 24,722 | ||||||||
Cumulative effect adjustment due to adoption of ASU | 5,461 | 5,461 | 5,461 | ||||||
Beginning balance at Aug. 31, 2018 | 29,768 | ||||||||
Net earnings | (5,046) | ||||||||
Beginning balance at Aug. 31, 2018 | 442,569 | 830,898 | (23,366) | 1,250,101 | 134,114 | 1,384,215 | |||
Beginning balance (in shares) at Aug. 31, 2018 | 32,191 | ||||||||
Net earnings | $ 55,012 | 35,969 | 35,969 | 24,089 | 60,058 | ||||
Other comprehensive loss, net | (10,784) | (10,754) | (10,754) | (30) | (10,784) | ||||
Noncontrolling interest adjustments | 7,322 | 7,322 | |||||||
Joint venture partner distribution declared | (12,494) | (12,494) | |||||||
Noncontrolling interest acquired | 1,915 | 1,915 | |||||||
Restricted stock awards (net of cancellations) (in shares) | 293 | ||||||||
Restricted stock awards (net of cancellations) | 12,721 | 12,721 | 12,721 | ||||||
Unamortized restricted stock | (17,445) | (17,445) | (17,445) | ||||||
Restricted stock amortization | 11,157 | 11,157 | 11,157 | ||||||
Cash dividends | (24,895) | (24,895) | (24,895) | ||||||
Ending balance at May. 31, 2019 | 449,002 | 847,433 | (34,120) | 1,262,315 | 154,916 | 1,417,231 | |||
Ending Balance (in shares) at May. 31, 2019 | 32,484 | ||||||||
Ending Balance at May. 31, 2019 | 24,722 | ||||||||
Cumulative effect adjustment due to adoption of ASU | 4,393 | 4,393 | 4,393 | ||||||
Beginning balance at Aug. 31, 2019 | 31,564 | ||||||||
Net earnings | (953) | ||||||||
Beginning balance at Aug. 31, 2019 | $ 1,441,697 | 453,943 | 867,602 | (44,815) | 1,276,730 | 164,967 | 1,441,697 | ||
Beginning balance (in shares) at Aug. 31, 2019 | 32,488 | 32,488 | |||||||
Net earnings | $ 79,895 | 49,070 | 49,070 | 31,778 | 80,848 | ||||
Other comprehensive loss, net | (18,260) | (18,251) | (18,251) | (9) | (18,260) | ||||
Noncontrolling interest adjustments | 2,826 | 2,826 | |||||||
Joint venture partner distribution declared | (34,751) | (34,751) | |||||||
Noncontrolling interest acquired | 12,075 | 12,075 | |||||||
Restricted stock awards (net of cancellations) (in shares) | 213 | ||||||||
Restricted stock awards (net of cancellations) | 6,797 | 6,797 | 6,797 | ||||||
Unamortized restricted stock | (9,063) | (9,063) | (9,063) | ||||||
Restricted stock amortization | 7,991 | 7,991 | 7,991 | ||||||
Cash dividends | (26,446) | (26,446) | (26,446) | ||||||
Ending balance at May. 31, 2020 | $ 1,468,107 | 459,668 | 894,619 | (63,066) | 1,291,221 | 176,886 | 1,468,107 | ||
Ending Balance (in shares) at May. 31, 2020 | 32,701 | 32,701 | |||||||
Ending Balance at May. 31, 2020 | 30,611 | ||||||||
Beginning balance at Feb. 29, 2020 | 30,782 | ||||||||
Net earnings | (171) | ||||||||
Beginning balance at Feb. 29, 2020 | 458,908 | 875,885 | (48,321) | 1,286,472 | 201,410 | 1,487,882 | |||
Beginning balance (in shares) at Feb. 29, 2020 | 32,642 | ||||||||
Net earnings | $ 35,869 | 27,772 | 27,772 | 8,268 | 36,040 | ||||
Other comprehensive loss, net | (14,746) | (14,745) | (14,745) | (1) | (14,746) | ||||
Noncontrolling interest adjustments | (6,212) | (6,212) | |||||||
Joint venture partner distribution declared | (26,579) | (26,579) | |||||||
Restricted stock awards (net of cancellations) (in shares) | 59 | ||||||||
Restricted stock awards (net of cancellations) | (4,317) | (4,317) | (4,317) | ||||||
Unamortized restricted stock | 3,945 | 3,945 | 3,945 | ||||||
Restricted stock amortization | 1,132 | 1,132 | 1,132 | ||||||
Cash dividends | (9,038) | (9,038) | (9,038) | ||||||
Ending balance at May. 31, 2020 | $ 1,468,107 | $ 459,668 | $ 894,619 | $ (63,066) | $ 1,291,221 | $ 176,886 | $ 1,468,107 | ||
Ending Balance (in shares) at May. 31, 2020 | 32,701 | 32,701 | |||||||
Ending Balance at May. 31, 2020 | $ 30,611 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | 15 Months Ended | |
May 31, 2020 | May 31, 2020 | May 31, 2019 | May 31, 2019 | |
Cash dividend per share | $ 0.27 | $ 0.79 | $ 0.75 | |
Equity Excluding Contingently Redeemable Noncontrolling Interest [Member] | ||||
Cash dividend per share | $ 0.27 | $ 0.79 | $ 0.75 | $ 0.25 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Cash flows from operating activities | ||
Net earnings | $ 79,895 | $ 55,012 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Deferred income taxes | (11,450) | (20,478) |
Depreciation and amortization | 82,452 | 60,833 |
Net gain on disposition of equipment | (19,431) | (37,474) |
Accretion of debt discount | 4,102 | 3,268 |
Stock based compensation expense | 8,265 | 10,792 |
Goodwill impairment | 10,025 | |
Noncontrolling interest adjustments | 2,826 | 7,322 |
Other | 568 | 1,916 |
Decrease (increase) in assets: | ||
Accounts receivable, net | 110,431 | 27,926 |
Inventories | 12,555 | (169,813) |
Leased railcars for syndication | (38,826) | (43,796) |
Other assets | (59,212) | (2,525) |
Increase (decrease) in liabilities: | ||
Accounts payable and accrued liabilities | (77,243) | 30,581 |
Deferred revenue | (5,900) | (27,712) |
Net cash provided by (used in) operating activities | 89,032 | (94,123) |
Cash flows from investing activities | ||
Proceeds from sales of assets | 78,521 | 100,730 |
Capital expenditures | (55,326) | (149,945) |
Investment in and advances to unconsolidated affiliates | (1,500) | (11,393) |
Cash distribution from unconsolidated affiliates and other | 11,273 | 1,986 |
Net cash provided by (used in) investing activities | 32,968 | (58,622) |
Cash flows from financing activities | ||
Net change in revolving notes with maturities of 90 days or less | 214,932 | (1,882) |
Proceeds from revolving notes with maturities longer than 90 days | 175,000 | |
Proceeds from issuance of notes payable | 225,000 | |
Repayments of notes payable | (24,002) | (179,803) |
Debt issuance costs | (2,974) | |
Dividends | (26,344) | (25,072) |
Cash distribution to joint venture partner | (36,152) | (11,715) |
Tax payments for net share settlement of restricted stock | (2,266) | (6,321) |
Net cash provided by (used in) financing activities | 301,168 | (2,767) |
Effect of exchange rate changes | (17,693) | (2,866) |
Increase (decrease) in cash and cash equivalents and restricted cash | 405,475 | (158,378) |
Cash and cash equivalents and restricted cash | ||
Beginning of period | 338,487 | 539,474 |
Cash and cash equivalents and restricted cash, Ending balance | 743,962 | 381,096 |
Balance sheet reconciliation | ||
Cash and cash equivalents | 735,258 | 359,625 |
Restricted cash | 8,704 | 21,471 |
Cash and cash equivalents and restricted cash, Ending balance | 743,962 | 381,096 |
Cash paid during the period for | ||
Interest | 16,757 | 11,350 |
Income taxes, net | 36,393 | 45,904 |
Non-cash activity | ||
Transfer from Leased railcars for syndication to Equipment on operating leases, net | 55,739 | 42,802 |
Capital expenditures accrued in Accounts payable and accrued liabilities | 2,769 | 14,455 |
Change in Accounts payable and accrued liabilities associated with dividends declared | (102) | 177 |
Conversion of unconsolidated affiliate note receivable to Investment in unconsolidated affiliates | 4,760 | |
Change in Accounts payable and accrued liabilities associated with cash distributions to joint venture partner | $ 1,401 | $ (779) |
Interim Financial Statements
Interim Financial Statements | 9 Months Ended |
May 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Interim Financial Statements | Note 1 – Interim Financial Statements The Condensed Consolidated Financial Statements of The Greenbrier Companies, Inc. and its subsidiaries (Greenbrier or the Company) as of May 31, 2020 and for the three and nine months ended May 31, 2020 and 2019 have been prepared to reflect all adjustments (consisting of normal recurring accruals) that, in the opinion of management, are necessary for a fair presentation of the financial position, operating results and cash flows for the periods indicated. The results of operations for the three and nine months ended May 31, 2020 are not necessarily indicative of the results to be expected for the entire year ending August 31, 2020. Certain notes and other information have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these unaudited financial statements should be read in conjunction with the Consolidated Financial Statements contained in the Company’s 2019 Annual Report on Form 10-K. Management Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires judgment on the part of management to arrive at estimates and assumptions on matters that are inherently uncertain. These estimates may affect the amount of assets, liabilities, revenue and expenses reported in the financial statements and accompanying notes and disclosure of contingent assets and liabilities within the financial statements. Estimates and assumptions are periodically evaluated and may be adjusted in future periods. Actual results could differ from those estimates. Initial Adoption of Accounting Standards Lease accounting On September 1, 2019, the Company adopted Accounting Standards Update 2016-02, Leases Revenue from Contracts with Customers The Company adopted the provisions of the new standard using the modified retrospective adoption method, utilizing the simplified transition option which allows entities to continue to apply the legacy guidance in Topic 840 in the comparative periods presented in the year of adoption. The Company elected the “package of practical expedients,” which allows it to not reassess under the new guidance prior conclusions about lease identification, lease classification, and initial direct costs. The Company did not elect the use-of-hindsight practical expedient. The Company elected to not separate lease and non-lease components. The Company elected the short-term lease recognition exemption for all leases that qualify, which means it will not recognize ROU assets or lease liabilities for leases with lease terms of less than twelve months. Following the adoption of Topic 842, the Company will utilize both Topic 842 and Topic 606 when evaluating retained risk of services and other performance obligations in conjunction with selling railcars with a lease attached as part of the syndication model. As a result of adoption, the Company recognized operating lease ROU assets and lease liabilities of $40.4 and $41.6 million, respectively, as of September 1, 2019. The Company also recognized an immaterial finance lease asset and corresponding lease liability. Additionally, the Company derecognized certain existing property, plant and equipment and deferred revenue for railcar transactions previously not qualifying as sales due to continuing involvement, that now qualify as sales under the new guidance. The gain associated with this change in accounting, was mostly offset by the recognition of a new guarantee liability. The adoption of this new standard also required the Company to eliminate deferred gains associated with certain sale-leaseback transactions. A cumulative-effect adjustment of $4.4 million was recorded as an increase to retained earnings as of September 1, 2019. Derivatives and Hedging In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities Prospective Accounting Changes Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued Accounting Standard Update 2016-13, Financial Instruments – Credit Losses |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
May 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition Contract balances Contract assets primarily consist of unbilled receivables related to marine vessel construction and railcar repair services, for which the respective contracts do not yet permit billing at the reporting date. Contract liabilities primarily consist of customer prepayments for manufacturing, maintenance, and other management-type services, for which the Company has not yet satisfied the related performance obligations. The contract balances are as follows: (in thousands) Balance sheet classification May 31, 2020 August 31, 2019 $ change Contract assets Inventories $ 7,471 $ 10,196 $ (2,725 ) Contract liabilities 1 Deferred revenue $ 47,648 $ 52,118 $ (4,470 ) 1 For the three and nine months ended May 31, 2020, the Company recognized $2.7 million and $27.2 million of revenue that was included in Contract liabilities as of August 31, 2019. Performance obligations As of May 31, 2020, the Company has entered into contracts with customers for which revenue has not yet been recognized. The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods. (in millions) May 31, 2020 Revenue type: Manufacturing – Railcar sales $ 2,292.1 Manufacturing – Marine $ 36.8 Services $ 134.8 Other $ 132.3 Manufacturing – Railcars intended for syndication 1 $ 239.1 1 Based on current production and delivery schedules and existing contracts, approximately $0.4 billion of the Railcar sales amount is expected to be recognized in the final three months of 2020 while the remaining amount is expected to be recognized through 2024. The table above excludes estimated revenue to be recognized at the Company’s Brazilian manufacturing operations, as they are accounted for under the equity method. Revenue amounts reflected in Railcars intended for syndication may be syndicated to third parties or held in the Company’s fleet depending on a variety of factors. Marine revenue is expected to be recognized through 2021 as vessel construction is completed. Services includes management and maintenance services of which approximately 45% are expected to be performed through 2024 and the remaining amount through 2037. |
Acquisitions
Acquisitions | 9 Months Ended |
May 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 3 – Acquisitions Manufacturing business of American Railcar Industries, Inc. (ARI) On July 26, 2019, the Company completed its acquisition of the manufacturing business of ARI for a purchase price of approximately $417.2 million. In connection with the acquisition, the Company acquired two railcar manufacturing facilities in Arkansas, as well as other facilities which produce a range of railcar components and parts and create enhanced vertical integration for our manufacturing operations. The purchase price included approximately $8.5 million for capital expenditures on railcar lining operations and other facility improvements. Included in the acquisition were equity interests in two railcar component manufacturing businesses which Greenbrier accounts for under the equity method of accounting and recognized at their respective fair value as investments in unconsolidated affiliates. The purchase price was funded by, and consisted of, a combination of cash on hand, the proceeds of a $300 million secured term loan and the issuance to the seller of a $50 million senior convertible note. For the nine months ended May 31, 2020, the operations contributed by ARI’s manufacturing business generated revenues of $338.7 million and net earnings of $6.7 million, which are reported in the Company’s consolidated financial statements as part of the Manufacturing segment. The preliminary purchase price of the net assets acquired from ARI was allocated as follows: (in thousands) Accounts receivable, net $ 27,659 Inventories 98,053 Property, plant and equipment, net 225,045 Investments in unconsolidated affiliates 40,314 Intangibles and other assets, net 36,785 Goodwill 56,514 Total assets acquired 484,370 Total liabilities assumed 67,174 Net assets acquired $ 417,196 The above purchase price allocation, including the residual amount allocated to goodwill, is based on preliminary information and is subject to change as additional information is obtained related to the amounts allocated to the assets acquired and liabilities assumed. During the measurement period, which may extend up to 12 months after the date of acquisition, the Company will adjust these assets and liabilities if new information is obtained about the facts and circumstances that existed as of the acquisition date and revised amounts will be recorded as of that date. The effect of measurement period adjustments to the estimated amounts will be reflected on a prospective basis and were not material during the nine months ended May 31, 2020. The identified intangible assets assumed in the acquisition were recognized as follows: (in thousands) Fair value Weighted average estimated useful life (in years) Trademarks and patents $ 19,500 9 Customer and supplier relationships 16,071 7 Identified intangible assets subject to amortization 35,571 Other identified intangible assets not subject to amortization 860 Total identified intangible assets $ 36,431 |
Inventories
Inventories | 9 Months Ended |
May 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 – Inventories Inventories are valued at the lower of cost or net realizable value using the first-in first-out method. Work-in-process includes material, labor and overhead. Finished goods includes completed wheels, parts and railcars not on lease or in transit. The following table summarizes the Company’s inventory balance: (In thousands) May 31, 2020 August 31, 2019 Manufacturing supplies and raw materials $ 326,686 $ 387,015 Work-in-process 148,342 156,614 Finished goods 219,050 130,576 Excess and obsolete adjustment (18,636 ) (9,512 ) $ 675,442 $ 664,693 |
Intangibles and Other Assets, n
Intangibles and Other Assets, net | 9 Months Ended |
May 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangibles and Other Assets, net | Note 5 – Intangibles and Other Assets, net Intangible assets that are determined to have finite lives are amortized over their useful lives. Intangible assets with indefinite useful lives are not amortized and are periodically evaluated for impairment. The following table summarizes the Company’s identifiable intangible and other assets balance: (In thousands) May 31, 2020 August 31, 2019 Intangible assets subject to amortization: Customer relationships $ 89,722 $ 89,722 Accumulated amortization (54,600 ) (48,850 ) Other intangibles 36,748 34,031 Accumulated amortization (9,274 ) (6,908 ) 62,596 67,995 Intangible assets not subject to amortization 2,513 5,450 Prepaid and other assets 19,646 15,749 Operating lease ROU assets 56,886 — Nonqualified savings plan investments 32,165 27,967 Revolving notes issuance costs, net 3,859 4,568 Assets held for sale 3,650 3,650 Total Intangible and other assets, net $ 181,315 $ 125,379 Amortization expense was $2.7 million and $8.2 million for the three and nine months ended May 31, 2020 and $1.3 million and $4.6 million for the three and nine months ended May 31, 2019. Amortization expense for the years ending August 31, 2020, 2021, 2022, 2023 and 2024 is expected to be $10.4 million, $10.4 million, $7.0 million, $5.8 million and $5.8 million, respectively. |
Revolving Notes
Revolving Notes | 9 Months Ended |
May 31, 2020 | |
Debt Disclosure [Abstract] | |
Revolving Notes | Note 6 – Revolving Notes Senior secured credit facilities, consisting of three components, aggregated to $705.1 million as of May 31, 2020. As of May 31, 2020, a $600.0 million revolving line of credit, maturing June 2024, secured by substantially all the Company’s assets in the U.S. not otherwise pledged as security for term loans, was available to provide working capital and interim financing of equipment, principally for the U.S. and Mexican operations. Advances under this facility bear interest at LIBOR plus 1.50% or Prime plus 0.50% depending on the type of borrowing. Available borrowings under the credit facility are generally based on defined levels of eligible inventory, receivables, property, plant and equipment and leased equipment, as well as total debt to consolidated capitalization and fixed charges coverage ratios. As of May 31, 2020, lines of credit totaling $55.1 million secured by certain of the Company’s European assets, with variable rates that range from Warsaw Interbank Offered Rate (WIBOR) plus 1.1% to WIBOR plus 1.5% and Euro Interbank Offered Rate (EURIBOR) plus 1.1%, were available for working capital needs of the European manufacturing operations. The European lines of credit include $13.9 million of facilities which are guaranteed by the Company. European credit facilities are regularly renewed. Currently, these European credit facilities have maturities that range from August 2020 through July 2021. As of May 31, 2020, 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. Advances under this facility bear interest at LIBOR plus 3.75% to 4.25%. The Mexican railcar manufacturing joint venture will be able to draw against this facility through March 2024. The second line of credit provides up to $20.0 million, of which the Company and its joint venture partner have each guaranteed 50%. Advances under this facility bear interest at LIBOR plus 3.75%. The Mexican railcar manufacturing joint venture will be able to draw amounts available under this facility through June 2021. As of May 31 , 2020, outstanding commitments under the senior secured credit facilities consisted of $ million in letters of credit and $ million in borrowings under the North American credit facility , $ million outstanding under the European credit facilities and $ million outstanding under the Mexican credit facilities . As of May 31 , 2020, the Company had an aggregate of $ 136.8 million available to draw down under committed credit facilities. As of August 31, 2019, outstanding commitments under the senior secured credit facilities consisted of $24.4 million in letters of credit under the North American credit facility and $27.1 million outstanding under the European credit facilities. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
May 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 7 – Accounts Payable and Accrued Liabilities (In thousands) May 31, 2020 August 31, 2019 Trade payables $ 161,900 $ 302,009 Other accrued liabilities 106,200 108,939 Operating lease liabilities 58,158 — Accrued payroll and related liabilities 100,152 106,669 Accrued warranty 47,743 46,678 Income taxes payable 14,816 4,065 $ 488,969 $ 568,360 |
Warranty Accruals
Warranty Accruals | 9 Months Ended |
May 31, 2020 | |
Guarantees And Product Warranties [Abstract] | |
Warranty Accruals | Note 8 – Warranty Accruals Warranty costs are estimated and charged to operations to cover a defined warranty period. The estimated warranty cost is based on the history of warranty claims for each particular product type. For new product types without a warranty history, preliminary estimates are based on historical information for similar product types. The warranty accruals, included in Accounts payable and accrued liabilities on the Consolidated Balance Sheets, are reviewed periodically and updated based on warranty trends and expirations of warranty periods. Warranty accrual activity: Three Months Ended May 31, Nine Months Ended May 31, (In thousands) 2020 2019 2020 2019 Balance at beginning of period $ 46,850 $ 24,994 $ 46,678 $ 27,395 Charged to cost of revenue, net 2,600 1,235 5,862 4,088 Payments (1,518 ) (2,004 ) (4,653 ) (6,801 ) Currency translation effect (189 ) (260 ) (144 ) (717 ) Balance at end of period $ 47,743 $ 23,965 $ 47,743 $ 23,965 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
May 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 9 – Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of tax effect as appropriate, consisted of the following: (In thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Other Accumulated Other Comprehensive Loss Balance, August 31, 2019 $ (8,841 ) $ (34,194 ) $ (1,780 ) $ (44,815 ) Other comprehensive loss before reclassifications (7,127 ) (13,306 ) (140 ) (20,573 ) Amounts reclassified from Accumulated other comprehensive loss 2,322 — — 2,322 Balance, May 31, 2020 $ (13,646 ) $ (47,500 ) $ (1,920 ) $ (63,066 ) The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with financial statement caption, were as follows: Three Months Ended May 31, (In thousands) 2020 2019 Financial Statement Caption (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 1,711 $ 249 Revenue and Cost of revenue Interest rate swap contracts 783 142 Interest and foreign exchange 2,494 391 Total before tax (649 ) (85 ) Income tax benefit $ 1,845 $ 306 Net of tax Nine Months Ended May 31, (In thousands) 2020 2019 Financial Statement Location (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 1,812 $ 1,506 Revenue and cost of revenue Interest rate swap contracts 1,319 438 Interest and foreign exchange 3,131 1,944 Total before tax (809 ) (468 ) Income tax benefit $ 2,322 $ 1,476 Net of tax |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
May 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 10 – Earnings Per Share The shares used in the computation of basic and diluted earnings per common share are reconciled as follows: Three Months Ended May 31, Nine Months Ended May 31, (In thousands) 2020 2019 2020 2019 Weighted average basic common shares outstanding (1) 32,690 32,603 32,660 32,623 Dilutive effect of 2.875% Convertible notes (2) — — — — Dilutive effect of 2.25% Convertible notes (3) — n/a — n/a Dilutive effect of restricted stock units (4) 788 580 754 538 Weighted average diluted common shares outstanding 33,478 33,183 33,414 33,161 (1) Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. (2) The dilutive effect of the 2.875% Convertible notes was excluded for the three and nine months ended May 31, 2020 and 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. (3) The 2.25% Convertible notes were issued in July 2019. The dilutive effect of the 2.25% Convertible notes was excluded for the three and nine months ended May 31, 2020 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. (4) Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. Diluted EPS is calculated using the treasury stock method associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. Three Months Ended May 31, Nine Months Ended May 31, 2020 2019 2020 2019 Net earnings attributable to Greenbrier $ 27,772 $ 15,248 $ 49,070 $ 35,969 Weighted average diluted common shares outstanding 33,478 33,183 33,414 33,161 Diluted earnings per share $ 0.83 $ 0.46 $ 1.47 $ 1.08 |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
May 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | Note 11 – Stock Based Compensation The value of stock based compensation awards is amortized as compensation expense from the date of grant through the earlier of the vesting period or in some instances the recipient’s eligible retirement date. Stock based compensation expense consists of restricted stock unit, restricted stock and phantom stock unit awards. Stock based compensation expense was $1.0 million and $8.3 million for the three and nine months ended May 31, 2020, respectively and $3.5 million and $10.8 million for the three and nine months ended May 31, 2019, respectively. Compensation expense is recorded in Selling and administrative expense and Cost of revenue on the Consolidated Statements of Income. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
May 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 12 – 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 May 31, 2020 exchange rates, notional amounts of forward exchange contracts for the purchase of Polish Zlotys and the sale of Euros and Pound Sterling; and the purchase of Mexican Pesos and the sale of U.S. Dollars aggregated to $37.3 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 May 2022, 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 May 31, 2020 exchange rates, approximately $1.1 million would be reclassified to revenue or cost of revenue in the next year. At May 31, 2020, an interest rate swap agreement maturing in September 2023 had a notional amount of $106.6 million and an interest rate swap agreement maturing June 2024 had a notional amount of $146.3 million. The fair value of the contracts are included on the Consolidated Balance Sheets in Accounts payable and accrued liabilities when there is a loss, or in Accounts receivable, net when there is a gain. As interest expense on the underlying debt is recognized, amounts corresponding to the interest rate swap are reclassified from Accumulated other comprehensive loss and charged or credited to interest expense. At May 31, 2020 interest rates, approximately $5.0 million would be reclassified to interest expense in the next year. Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives May 31, 2020 August 31, 2019 May 31, 2020 August 31, 2019 (In thousands) Balance sheet location Fair Value Fair Value Balance sheet location Fair Value Fair Value Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 147 $ 64 Accounts payable and accrued liabilities $ 768 $ 437 Interest rate swap contracts Accounts receivable, net — — Accounts payable and accrued liabilities 16,876 10,255 $ 147 $ 64 $ 17,644 $ 10,692 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ — $ — Accounts payable and accrued liabilities $ 2 $ 587 The Effect of Derivative Instruments on the Statements of Income Three Months Ended May 31, 2020 and 2019 Derivatives in cash flow hedging relationships Location of gain (loss) recognized in income on derivatives Gain (loss) recognized in income on derivatives three months ended May 31, 2020 May 31, 2019 Foreign forward exchange contract Interest and foreign exchange $ 154 $ — Derivatives in cash flow hedging relationships Gain (loss) recognized in OCI on derivatives three months ended, Location of gain (loss) reclassified from accumulated OCI into income Gain (loss) reclassified from accumulated OCI into income three months ended Location of gain (loss) on derivative (amount excluded from effectiveness testing) Gain (loss) recognized on derivative (amount excluded from effectiveness testing) three months ended May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019 Foreign forward exchange contracts $ (599 ) $ 330 Revenue $ (485 ) $ (68 ) Revenue $ 138 $ 264 Foreign forward exchange contracts (2,015 ) 102 Cost of revenue (1,226 ) (181 ) Cost of revenue 130 179 Interest rate swap contracts (5,155 ) (2,704 ) Interest and foreign exchange (783 ) (143 ) Interest and foreign exchange 281 (163 ) $ (7,769 ) $ (2,272 ) $ (2,494 ) $ (392 ) $ 549 $ 280 The following table presents the amounts in the Consolidated Statements of Income in which the effects of the cash flow hedges are recorded and the effects of the cash flow hedge activity on these line items for the three months ended May 31, 2020 and 2019: For The Three Months Ended May 31, 2020 May 31, 2019 Total Amount of gain (loss) on cash flow hedge activity Total Amount of gain (loss) on cash flow hedge activity Revenue $ 762,557 $ (485 ) $ 856,152 $ (68 ) Cost of revenue 655,026 (1,226 ) 749,580 (181 ) Interest and foreign exchange 7,562 (783 ) 9,770 (143 ) Nine Months Ended May 31, 2020 and 2019 Derivatives in cash flow hedging relationships Location of gain (loss) recognized in income on derivatives Gain (loss) recognized in income on derivatives nine months ended May 31, 2020 May 31, 2019 Foreign forward exchange contract Interest and foreign exchange $ 60 $ 495 Derivatives in cash flow hedging relationships Gain (loss) recognized in OCI on derivatives nine months ended Location of gain (loss) reclassified from accumulated OCI into income Gain (loss) reclassified from accumulated OCI into income nine months ended Location of gain (loss) on derivative amount excluded from effectiveness testing) Gain (loss) recognized on derivative (amount excluded from effectiveness testing) nine months ended May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019 Foreign forward exchange contracts $ 164 $ (16 ) Revenue $ (584 ) $ (735 ) Revenue $ 781 $ 1,164 Foreign forward exchange contracts (2,198 ) (293 ) Cost of revenue (1,228 ) (771 ) Cost of revenue 474 857 Interest rate swap contracts (7,939 ) (6,393 ) Interest and foreign exchange (1,319 ) (438 ) Interest and foreign exchange — (185 ) $ (9,973 ) $ (6,702 ) $ (3,131 ) $ (1,944 ) $ 1,255 $ 1,836 For the Nine Months Ended May 31, 2020 May 31, 2019 Total Amount of gain (loss) on cash flow hedge activity Total Amount of gain (loss) on cash flow hedge activity Revenue $ 2,155,764 $ (584 ) $ 2,119,346 $ (735 ) Cost of revenue 1,869,708 (1,228 ) 1,886,397 (771 ) Interest and foreign exchange 33,023 (1,319 ) 23,411 (438 ) |
Segment Information
Segment Information | 9 Months Ended |
May 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 13 – Segment Information The Company operates in three reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services. The accounting policies of the segments are described in the summary of significant accounting policies in the Consolidated Financial Statements contained in the Company’s 2019 Annual Report on Form 10-K. 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. For the three months ended May 31, 2020: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 653,007 $ 1,151 $ 654,158 $ 68,445 $ 95 $ 68,540 Wheels, Repair & Parts 82,024 1,527 83,551 3,785 (393 ) 3,392 Leasing & Services 27,526 14,841 42,367 11,837 14,454 26,291 Eliminations — (17,519 ) (17,519 ) — (14,156 ) (14,156 ) Corporate — — — (17,255 ) — (17,255 ) $ 762,557 $ — $ 762,557 $ 66,812 $ — $ 66,812 For the nine months ended May 31, 2020: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 1,800,317 $ 1,269 $ 1,801,586 $ 167,693 $ 73 $ 167,766 Wheels, Repair & Parts 259,857 12,511 272,368 8,219 (903 ) 7,316 Leasing & Services 95,590 31,830 127,420 34,407 30,127 64,534 Eliminations — (45,610 ) (45,610 ) — (29,297 ) (29,297 ) Corporate — — — (63,287 ) — (63,287 ) $ 2,155,764 $ — $ 2,155,764 $ 147,032 $ — $ 147,032 For the three months ended May 31 , 2019: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 681,588 $ 29,201 $ 710,789 $ 72,110 $ 2,000 $ 74,110 Wheels, Repair & Parts 124,980 11,601 136,581 (8,820 ) 808 (8,012 ) Leasing & Services 49,584 5,848 55,432 15,337 4,913 20,250 Eliminations — (46,650 ) (46,650 ) — (7,721 ) (7,721 ) Corporate — — — (25,438 ) — (25,438 ) $ 856,152 $ — $ 856,152 $ 53,189 $ — $ 53,189 For the nine months ended May 31, 2019: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 1,629,396 $ 82,257 $ 1,711,653 $ 122,955 $ 4,791 $ 127,746 Wheels, Repair & Parts 358,801 36,440 395,241 (2,750 ) 262 (2,488 ) Leasing & Services 131,149 14,758 145,907 53,880 12,466 66,346 Eliminations — (133,455 ) (133,455 ) — (17,519 ) (17,519 ) Corporate — — — (66,388 ) — (66,388 ) $ 2,119,346 $ — $ 2,119,346 $ 107,697 $ — $ 107,697 Total assets (In thousands) May 31, 2020 August 31, 2019 Manufacturing $ 1,441,052 $ 1,606,571 Wheels, Repair & Parts 296,888 306,725 Leasing & Services 777,523 708,799 Unallocated 763,568 368,542 $ 3,279,031 $ 2,990,637 Reconciliation of Earnings from operations to Earnings before income tax and earnings (loss) from unconsolidated affiliates: Three Months Ended May 31, Nine Months Ended May 31, (In thousands) 2020 2019 2020 2019 Earnings from operations $ 66,812 $ 53,189 $ 147,032 $ 107,697 Interest and foreign exchange 7,562 9,770 33,023 23,411 Earnings before income tax and earnings (loss) from unconsolidated affiliates $ 59,250 $ 43,419 $ 114,009 $ 84,286 |
Leases
Leases | 9 Months Ended |
May 31, 2020 | |
Leases [Abstract] | |
Leases | Note 14 – Leases Lessor Equipment on operating leases is reported net of accumulated depreciation of $31.1 million and $44.2 million as of May 31, 2020 and August 31, 2019, respectively. Depreciation expense was $2.6 million and $9.2 million for the three and nine months ended May 31, 2020. In addition, certain railcar equipment leased-in by the Company on operating leases is subleased to customers under non-cancelable operating leases with lease terms ranging from one to nine years. Operating lease rental revenues included in the Company’s Statement of Income for the three and nine months ended May 31, 2020 was $9.0 million and $30.2 million, which included $2.8 million and $9.3 million, respectively, of revenue as a result of daily, monthly or car hire utilization arrangements. Aggregate minimum future amounts receivable under all non-cancelable operating leases and subleases at May 31, 2020, will mature as follows: (in thousands) Remaining three months of 2020 $ 7,579 2021 28,249 2022 26,044 2023 20,567 2024 16,984 Thereafter 24,203 $ 123,626 Lessee The Company leases railcars, real estate, and certain equipment under operating and, to a lesser extent, finance lease arrangements. As of and for the three and nine months ended May 31, 2020, finance leases were not a material component of the Company's lease portfolio. The components of operating lease costs were as follows: (in thousands) Three months ended May 31, 2020 Nine months ended May 31, 2020 Operating lease expense $ 4,388 $ 11,238 Short-term lease expense 1,707 6,437 Total $ 6,095 $ 17,675 Aggregate minimum future amounts payable under operating leases having initial or remaining non-cancelable terms at May 31, 2020 will mature as follows: (in thousands) Remaining three months of 2020 $ 3,935 2021 13,977 2022 10,722 2023 10,231 2024 8,754 Thereafter 18,640 Total lease payments $ 66,259 Less: Imputed interest (8,101 ) Total lease obligations $ 58,158 The table below presents additional information related to the Company’s leases: Weighted average remaining lease term Operating leases 11.6 years Weighted average discount rate Operating leases 3.4 % Supplemental cash flow information related to leases were as follows: (in thousands) Nine months ended May 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 12,121 ROU assets obtained in exchange for new operating lease liabilities $ 26,372 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
May 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15 – Commitments and Contingencies Portland Harbor Superfund Site The Company's Portland, Oregon manufacturing facility is located adjacent to the Willamette River. In December 2000, the U.S. Environmental Protection Agency (EPA) classified portions of the Willamette River bed known as the Portland Harbor, including the portion fronting the Company's manufacturing facility, as a federal "National Priority List" or "Superfund" site due to sediment contamination (the Portland Harbor Site). The Company and more than 140 other parties have received a "General Notice" of potential liability from the EPA relating to the Portland Harbor Site. The letter advised the Company that it may be liable for the costs of investigation and remediation (which liability may be joint and several with other potentially responsible parties) as well as for natural resource damages resulting from releases of hazardous substances to the site. Ten private and public entities, including the Company (the Lower Willamette Group or LWG), signed an Administrative Order on Consent (AOC) to perform a remedial investigation/feasibility study (RI/FS) of the Portland Harbor Site under EPA oversight, and several additional entities have not signed such consent, but nevertheless contributed money to the effort. The EPA-mandated RI/FS was produced by the LWG and cost over $110 million during a 17-year period. The Company bore a percentage of the total costs incurred by the LWG in connection with the investigation. The Company's aggregate expenditure during the 17-year period was not material. Some or all of any such outlay may be recoverable from other responsible parties. The EPA issued its Record of Decision (ROD) for the Portland Harbor Site on January 6, 2017 and accordingly on October 26, 2017, the AOC was terminated. Separate from the process described above, which focused on the type of remediation to be performed at the Portland Harbor Site and the schedule for such remediation, 83 parties, including the State of Oregon and the federal government, entered into a non-judicial mediation process to try to allocate costs associated with remediation of the Portland Harbor site. Approximately 110 additional parties signed tolling agreements related to such allocations. On April 23, 2009, the Company and the other AOC signatories filed suit against 69 other parties due to a possible limitations period for some such claims; Arkema Inc. et al v. A & C Foundry Products, Inc. et al The EPA's January 6, 2017 ROD identifies a clean-up remedy that the EPA estimates will take 13 years of active remediation, followed by 30 years of monitoring with an estimated undiscounted cost of $1.7 billion. The EPA typically expects its cost estimates to be accurate within a range of -30% to +50%, but this ROD states that changes in costs are likely to occur as a result of new data it wants to collect over a 2-year period prior to final remedy design. The ROD identifies 13 Sediment Decision Units. One of the units, RM9W, includes the nearshore area of the river sediments offshore of the Company's Portland, Oregon manufacturing facility as well as upstream and downstream of the facility. It also includes a portion of the Company's riverbank. The ROD does not break down total remediation costs by Sediment Decision Unit. The EPA's ROD concluded that more data was needed to better define clean-up scope and cost. On December 8, 2017, the EPA announced that Portland Harbor is one of 21 Superfund sites targeted for greater attention. On December 19, 2017, the EPA announced that it had entered a new AOC with a group of four potentially responsible parties to conduct additional sampling during 2018 and 2019 to provide more certainty about clean-up costs and aid the mediation process to allocate those costs. The parties to the mediation, including the Company, agreed to help fund the additional sampling, which is now complete. The EPA requested that potentially responsible parties enter AOCs during 2019 agreeing to conduct remedial design studies. Some parties have signed AOCs, including one party with respect to RM9W which includes the area offshore of the Company’s manufacturing facility. The Company has not signed an AOC The ROD does not address responsibility for the costs of clean-up, nor does it allocate such costs among the potentially responsible parties. Responsibility for funding and implementing the EPA's selected cleanup remedy will be determined at an unspecified later date. Based on the investigation to date, the Company believes that it did not contribute in any material way to contamination in the river sediments or the damage of natural resources in the Portland Harbor Site and that the damage in the area of the Portland Harbor Site adjacent to its property precedes its ownership of the Portland, Oregon manufacturing facility. Because these environmental investigations are still underway, including the collection of new pre-remedial design sampling data by EPA, sufficient information is currently not available to determine the Company's liability, if any, for the cost of any required remediation or restoration of the Portland Harbor Site or to estimate a range of potential loss. Based on the results of the pending investigations and future assessments of natural resource damages, the Company may be required to incur costs associated with additional phases of investigation or remedial action, and may be liable for damages to natural resources. In addition, the Company may be required to perform periodic maintenance dredging in order to continue to launch vessels from its launch ways in Portland, Oregon, on the Willamette River, and the river's classification as a Superfund site could result in some limitations on future dredging and launch activities. Any of these matters could adversely affect the Company's business and Consolidated Financial Statements, or the value of its Portland property. 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., Oregon Department of Environmental Quality (DEQ) Regulation of Portland Manufacturing Operations 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. Other Litigation , Commitments and Contingencies In connection with the acquisition of the manufacturing business of ARI, the Company agreed to assume potential legacy liabilities (known and unknown) related to railcars manufactured by ARI. Among these potential liabilities are certain retrofit and repair obligations arising from regulatory actions by the Federal Railroad Administration and the Association of American Railroads. In some cases, the seller shares with the Company the costs of these retrofit and repair obligations. The Company currently is not able to determine if any of these liabilities will have a material adverse impact on the Company’s results of operations. From time to time, Greenbrier is involved as a defendant in litigation in the ordinary course of business, the outcomes of which cannot be predicted with certainty. While the ultimate outcome of such legal proceedings cannot be determined at this time, the Company believes that the resolution of pending litigation will not have a material adverse effect on the Company's Consolidated Financial Statements. As of May 31, 2020, the Company had outstanding letters of credit aggregating to $28.7 million associated with performance guarantees, facility leases and workers compensation insurance. As of May 31, 2020, the Company had a $4.5 million note receivable from Amsted-Maxion Cruzeiro, its unconsolidated Brazilian castings and components manufacturer and a $3.9 million note receivable from Greenbrier-Maxion, its unconsolidated Brazilian railcar manufacturer. These note receivables are included on the Consolidated Balance Sheet in Accounts receivable, net. In the future, the Company may make loans to or provide guarantees for Amsted-Maxion Cruzeiro or Greenbrier-Maxion, its unconsolidated Brazilian railcar manufacturer. |
Fair Value Measures
Fair Value Measures | 9 Months Ended |
May 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures | Note 16 – Fair Value Measures Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value, for this disclosure, is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1 - observable inputs such as unadjusted quoted prices in active markets for identical instruments; Level 2 - inputs, other than the quoted market prices in active markets for similar instruments, which are observable, either directly or indirectly; and Level 3 - unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions. Assets and liabilities measured at fair value on a recurring basis as of May 31, 2020 were: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 147 $ — $ 147 $ — Nonqualified savings plan investments 32,165 32,165 — — Cash equivalents 203,301 203,301 — — $ 235,613 $ 235,466 $ 147 $ — Liabilities: Derivative financial instruments $ 17,646 $ — $ 17,646 $ — (1) Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 12 - Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2019 were: (In thousands) Total Level 1 Level 2 Level 3 Assets: Derivative financial instruments $ 64 $ — $ 64 $ — Nonqualified savings plan investments 27,967 27,967 — — Cash equivalents 68,100 68,100 — — $ 96,131 $ 96,067 $ 64 $ — Liabilities: Derivative financial instruments $ 11,279 $ — $ 11,279 $ — |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
May 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 17 – Related Party Transactions In June 2017, the Company purchased a 40% interest in the common equity of an entity that buys and sells railcar assets that are leased to third parties. The railcars sold to this leasing warehouse are principally built by Greenbrier. The Company accounts for this leasing warehouse investment under the equity method of accounting. As of May 31, 2020, the carrying amount of the investment was $4.7 million which is classified in Investment in unconsolidated affiliates in the Consolidated Balance Sheet. Upon sale of railcars to this entity from Greenbrier, 60% of the related revenue and margin is recognized and 40% is deferred until the railcars are ultimately sold by the entity. There were no sales to or from this entity during the three and nine months ended May 31, 2020. The Company recognized $18.2 million in revenue associated with railcars sold into the leasing warehouse during the nine months ended May 31, 2019. The Company also recognized $5.6 million in revenue associated with railcars sold out of the leasing warehouse during the nine months ended May 31, 2019. The Company also provides administrative and remarketing services to this entity and earns management fees for these services which were immaterial for the nine months ended May 31, 2020 and May 31, 2019. The Company has a 41.9% interest in Axis, LLC (Axis), a joint venture. The Company obtained its ownership interest in Axis as part of the acquisition of the manufacturing business of ARI on July 26, 2019. For the three and nine months ended May 31, 2020, the Company purchased $4.3 million and $11.5 million of railcar components from Axis. In November 2019, the Company increased its ownership interest in Amsted-Maxion Cruzeiro from 24.5% to 29.5%. This transaction included a conversion to equity of $4.8 million from a note receivable, including accrued interest, and a re-payment to the Company of $1.5 million which was used to acquire the additional 5% ownership interest. As of May 31, 2020, the Company had a remaining $4.5 million note receivable due from Amsted-Maxion Cruzeiro, its unconsolidated Brazilian castings and components manufacturer and a $3.9 million note receivable from Greenbrier-Maxion, its unconsolidated Brazilian railcar manufacturer. These note receivables are included on the Consolidated Balance Sheet in Accounts receivable, net. In May 2020, the Company and its manufacturing partner Grupo Industrial Monclova, S.A. (GIMSA) amended its joint venture agreement for its joint ventures in Monclova, Mexico. In addition to certain temporary changes to the existing fee arrangements, the joint ventures also paid dividends of $22.5 million to each of the joint venture partners during the three months ended May 31, 2020. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
May 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Contract Balances | The contract balances are as follows: (in thousands) Balance sheet classification May 31, 2020 August 31, 2019 $ change Contract assets Inventories $ 7,471 $ 10,196 $ (2,725 ) Contract liabilities 1 Deferred revenue $ 47,648 $ 52,118 $ (4,470 ) 1 |
Summary of Estimated Revenue Related to Performance Obligations Wholly or Partially Unsatisfied | The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods. (in millions) May 31, 2020 Revenue type: Manufacturing – Railcar sales $ 2,292.1 Manufacturing – Marine $ 36.8 Services $ 134.8 Other $ 132.3 Manufacturing – Railcars intended for syndication 1 $ 239.1 1 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
May 31, 2020 | |
Schedule of Identified Intangible Assets Assumed In the Acquisition | The identified intangible assets assumed in the acquisition were recognized as follows: (in thousands) Fair value Weighted average estimated useful life (in years) Trademarks and patents $ 19,500 9 Customer and supplier relationships 16,071 7 Identified intangible assets subject to amortization 35,571 Other identified intangible assets not subject to amortization 860 Total identified intangible assets $ 36,431 |
American Railcar Industries | |
Preliminary Allocation of Purchase Price Based on Fair Value of Net Assets Acquired | The preliminary purchase price of the net assets acquired from ARI was allocated as follows: (in thousands) Accounts receivable, net $ 27,659 Inventories 98,053 Property, plant and equipment, net 225,045 Investments in unconsolidated affiliates 40,314 Intangibles and other assets, net 36,785 Goodwill 56,514 Total assets acquired 484,370 Total liabilities assumed 67,174 Net assets acquired $ 417,196 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
May 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories are valued at the lower of cost or net realizable value using the first-in first-out method. Work-in-process includes material, labor and overhead. Finished goods includes completed wheels, parts and railcars not on lease or in transit. The following table summarizes the Company’s inventory balance: (In thousands) May 31, 2020 August 31, 2019 Manufacturing supplies and raw materials $ 326,686 $ 387,015 Work-in-process 148,342 156,614 Finished goods 219,050 130,576 Excess and obsolete adjustment (18,636 ) (9,512 ) $ 675,442 $ 664,693 |
Intangibles and Other Assets,_2
Intangibles and Other Assets, net (Tables) | 9 Months Ended |
May 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Identifiable Intangible and Other Assets | The following table summarizes the Company’s identifiable intangible and other assets balance: (In thousands) May 31, 2020 August 31, 2019 Intangible assets subject to amortization: Customer relationships $ 89,722 $ 89,722 Accumulated amortization (54,600 ) (48,850 ) Other intangibles 36,748 34,031 Accumulated amortization (9,274 ) (6,908 ) 62,596 67,995 Intangible assets not subject to amortization 2,513 5,450 Prepaid and other assets 19,646 15,749 Operating lease ROU assets 56,886 — Nonqualified savings plan investments 32,165 27,967 Revolving notes issuance costs, net 3,859 4,568 Assets held for sale 3,650 3,650 Total Intangible and other assets, net $ 181,315 $ 125,379 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
May 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | (In thousands) May 31, 2020 August 31, 2019 Trade payables $ 161,900 $ 302,009 Other accrued liabilities 106,200 108,939 Operating lease liabilities 58,158 — Accrued payroll and related liabilities 100,152 106,669 Accrued warranty 47,743 46,678 Income taxes payable 14,816 4,065 $ 488,969 $ 568,360 |
Warranty Accruals (Tables)
Warranty Accruals (Tables) | 9 Months Ended |
May 31, 2020 | |
Guarantees And Product Warranties [Abstract] | |
Warranty Accrual Activity | Warranty accrual activity: Three Months Ended May 31, Nine Months Ended May 31, (In thousands) 2020 2019 2020 2019 Balance at beginning of period $ 46,850 $ 24,994 $ 46,678 $ 27,395 Charged to cost of revenue, net 2,600 1,235 5,862 4,088 Payments (1,518 ) (2,004 ) (4,653 ) (6,801 ) Currency translation effect (189 ) (260 ) (144 ) (717 ) Balance at end of period $ 47,743 $ 23,965 $ 47,743 $ 23,965 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
May 31, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss, Net of Tax | Accumulated other comprehensive loss, net of tax effect as appropriate, consisted of the following: (In thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Other Accumulated Other Comprehensive Loss Balance, August 31, 2019 $ (8,841 ) $ (34,194 ) $ (1,780 ) $ (44,815 ) Other comprehensive loss before reclassifications (7,127 ) (13,306 ) (140 ) (20,573 ) Amounts reclassified from Accumulated other comprehensive loss 2,322 — — 2,322 Balance, May 31, 2020 $ (13,646 ) $ (47,500 ) $ (1,920 ) $ (63,066 ) |
Amounts Reclassified out of Accumulated Other Comprehensive Loss | The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with financial statement caption, were as follows: Three Months Ended May 31, (In thousands) 2020 2019 Financial Statement Caption (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 1,711 $ 249 Revenue and Cost of revenue Interest rate swap contracts 783 142 Interest and foreign exchange 2,494 391 Total before tax (649 ) (85 ) Income tax benefit $ 1,845 $ 306 Net of tax Nine Months Ended May 31, (In thousands) 2020 2019 Financial Statement Location (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 1,812 $ 1,506 Revenue and cost of revenue Interest rate swap contracts 1,319 438 Interest and foreign exchange 3,131 1,944 Total before tax (809 ) (468 ) Income tax benefit $ 2,322 $ 1,476 Net of tax |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
May 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share | The shares used in the computation of basic and diluted earnings per common share are reconciled as follows: Three Months Ended May 31, Nine Months Ended May 31, (In thousands) 2020 2019 2020 2019 Weighted average basic common shares outstanding (1) 32,690 32,603 32,660 32,623 Dilutive effect of 2.875% Convertible notes (2) — — — — Dilutive effect of 2.25% Convertible notes (3) — n/a — n/a Dilutive effect of restricted stock units (4) 788 580 754 538 Weighted average diluted common shares outstanding 33,478 33,183 33,414 33,161 (1) Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. (2) The dilutive effect of the 2.875% Convertible notes was excluded for the three and nine months ended May 31, 2020 and 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. (3) The 2.25% Convertible notes were issued in July 2019. The dilutive effect of the 2.25% Convertible notes was excluded for the three and nine months ended May 31, 2020 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. (4) Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. |
Approach to Calculate Diluted Earning per Share | Three Months Ended May 31, Nine Months Ended May 31, 2020 2019 2020 2019 Net earnings attributable to Greenbrier $ 27,772 $ 15,248 $ 49,070 $ 35,969 Weighted average diluted common shares outstanding 33,478 33,183 33,414 33,161 Diluted earnings per share $ 0.83 $ 0.46 $ 1.47 $ 1.08 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
May 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments | Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives May 31, 2020 August 31, 2019 May 31, 2020 August 31, 2019 (In thousands) Balance sheet location Fair Value Fair Value Balance sheet location Fair Value Fair Value Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 147 $ 64 Accounts payable and accrued liabilities $ 768 $ 437 Interest rate swap contracts Accounts receivable, net — — Accounts payable and accrued liabilities 16,876 10,255 $ 147 $ 64 $ 17,644 $ 10,692 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ — $ — Accounts payable and accrued liabilities $ 2 $ 587 |
Effect of Derivative Instruments on the Statements of Income | The Effect of Derivative Instruments on the Statements of Income Three Months Ended May 31, 2020 and 2019 Derivatives in cash flow hedging relationships Location of gain (loss) recognized in income on derivatives Gain (loss) recognized in income on derivatives three months ended May 31, 2020 May 31, 2019 Foreign forward exchange contract Interest and foreign exchange $ 154 $ — Derivatives in cash flow hedging relationships Gain (loss) recognized in OCI on derivatives three months ended, Location of gain (loss) reclassified from accumulated OCI into income Gain (loss) reclassified from accumulated OCI into income three months ended Location of gain (loss) on derivative (amount excluded from effectiveness testing) Gain (loss) recognized on derivative (amount excluded from effectiveness testing) three months ended May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019 Foreign forward exchange contracts $ (599 ) $ 330 Revenue $ (485 ) $ (68 ) Revenue $ 138 $ 264 Foreign forward exchange contracts (2,015 ) 102 Cost of revenue (1,226 ) (181 ) Cost of revenue 130 179 Interest rate swap contracts (5,155 ) (2,704 ) Interest and foreign exchange (783 ) (143 ) Interest and foreign exchange 281 (163 ) $ (7,769 ) $ (2,272 ) $ (2,494 ) $ (392 ) $ 549 $ 280 |
Effects of Cash Flow Hedges Included in Statements of Income | The following table presents the amounts in the Consolidated Statements of Income in which the effects of the cash flow hedges are recorded and the effects of the cash flow hedge activity on these line items for the three months ended May 31, 2020 and 2019: For The Three Months Ended May 31, 2020 May 31, 2019 Total Amount of gain (loss) on cash flow hedge activity Total Amount of gain (loss) on cash flow hedge activity Revenue $ 762,557 $ (485 ) $ 856,152 $ (68 ) Cost of revenue 655,026 (1,226 ) 749,580 (181 ) Interest and foreign exchange 7,562 (783 ) 9,770 (143 ) Derivatives in cash flow hedging relationships Gain (loss) recognized in OCI on derivatives nine months ended Location of gain (loss) reclassified from accumulated OCI into income Gain (loss) reclassified from accumulated OCI into income nine months ended Location of gain (loss) on derivative amount excluded from effectiveness testing) Gain (loss) recognized on derivative (amount excluded from effectiveness testing) nine months ended May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019 Foreign forward exchange contracts $ 164 $ (16 ) Revenue $ (584 ) $ (735 ) Revenue $ 781 $ 1,164 Foreign forward exchange contracts (2,198 ) (293 ) Cost of revenue (1,228 ) (771 ) Cost of revenue 474 857 Interest rate swap contracts (7,939 ) (6,393 ) Interest and foreign exchange (1,319 ) (438 ) Interest and foreign exchange — (185 ) $ (9,973 ) $ (6,702 ) $ (3,131 ) $ (1,944 ) $ 1,255 $ 1,836 For the Nine Months Ended May 31, 2020 May 31, 2019 Total Amount of gain (loss) on cash flow hedge activity Total Amount of gain (loss) on cash flow hedge activity Revenue $ 2,155,764 $ (584 ) $ 2,119,346 $ (735 ) Cost of revenue 1,869,708 (1,228 ) 1,886,397 (771 ) Interest and foreign exchange 33,023 (1,319 ) 23,411 (438 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
May 31, 2020 | |
Segment Reporting [Abstract] | |
Segments Internal Financial Reports | The information in the following table is derived directly from the segments’ internal financial reports used for corporate management purposes. For the three months ended May 31, 2020: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 653,007 $ 1,151 $ 654,158 $ 68,445 $ 95 $ 68,540 Wheels, Repair & Parts 82,024 1,527 83,551 3,785 (393 ) 3,392 Leasing & Services 27,526 14,841 42,367 11,837 14,454 26,291 Eliminations — (17,519 ) (17,519 ) — (14,156 ) (14,156 ) Corporate — — — (17,255 ) — (17,255 ) $ 762,557 $ — $ 762,557 $ 66,812 $ — $ 66,812 For the nine months ended May 31, 2020: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 1,800,317 $ 1,269 $ 1,801,586 $ 167,693 $ 73 $ 167,766 Wheels, Repair & Parts 259,857 12,511 272,368 8,219 (903 ) 7,316 Leasing & Services 95,590 31,830 127,420 34,407 30,127 64,534 Eliminations — (45,610 ) (45,610 ) — (29,297 ) (29,297 ) Corporate — — — (63,287 ) — (63,287 ) $ 2,155,764 $ — $ 2,155,764 $ 147,032 $ — $ 147,032 For the three months ended May 31 , 2019: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 681,588 $ 29,201 $ 710,789 $ 72,110 $ 2,000 $ 74,110 Wheels, Repair & Parts 124,980 11,601 136,581 (8,820 ) 808 (8,012 ) Leasing & Services 49,584 5,848 55,432 15,337 4,913 20,250 Eliminations — (46,650 ) (46,650 ) — (7,721 ) (7,721 ) Corporate — — — (25,438 ) — (25,438 ) $ 856,152 $ — $ 856,152 $ 53,189 $ — $ 53,189 For the nine months ended May 31, 2019: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 1,629,396 $ 82,257 $ 1,711,653 $ 122,955 $ 4,791 $ 127,746 Wheels, Repair & Parts 358,801 36,440 395,241 (2,750 ) 262 (2,488 ) Leasing & Services 131,149 14,758 145,907 53,880 12,466 66,346 Eliminations — (133,455 ) (133,455 ) — (17,519 ) (17,519 ) Corporate — — — (66,388 ) — (66,388 ) $ 2,119,346 $ — $ 2,119,346 $ 107,697 $ — $ 107,697 Total assets (In thousands) May 31, 2020 August 31, 2019 Manufacturing $ 1,441,052 $ 1,606,571 Wheels, Repair & Parts 296,888 306,725 Leasing & Services 777,523 708,799 Unallocated 763,568 368,542 $ 3,279,031 $ 2,990,637 |
Reconciliation of Earnings from Operations to Earnings Before Income Tax and Earnings (Loss) from Unconsolidated Affiliates | Reconciliation of Earnings from operations to Earnings before income tax and earnings (loss) from unconsolidated affiliates: Three Months Ended May 31, Nine Months Ended May 31, (In thousands) 2020 2019 2020 2019 Earnings from operations $ 66,812 $ 53,189 $ 147,032 $ 107,697 Interest and foreign exchange 7,562 9,770 33,023 23,411 Earnings before income tax and earnings (loss) from unconsolidated affiliates $ 59,250 $ 43,419 $ 114,009 $ 84,286 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
May 31, 2020 | |
Leases [Abstract] | |
Aggregate Minimum Future Amounts Receivable Under All Non-Cancelable Operating Leases and Subleases | Aggregate minimum future amounts receivable under all non-cancelable operating leases and subleases at May 31, 2020, will mature as follows: (in thousands) Remaining three months of 2020 $ 7,579 2021 28,249 2022 26,044 2023 20,567 2024 16,984 Thereafter 24,203 $ 123,626 |
Components of Operating Lease Costs | The components of operating lease costs were as follows: (in thousands) Three months ended May 31, 2020 Nine months ended May 31, 2020 Operating lease expense $ 4,388 $ 11,238 Short-term lease expense 1,707 6,437 Total $ 6,095 $ 17,675 |
Aggregate Minimum Future Amounts Payable Under Operating Leases | Aggregate minimum future amounts payable under operating leases having initial or remaining non-cancelable terms at May 31, 2020 will mature as follows: (in thousands) Remaining three months of 2020 $ 3,935 2021 13,977 2022 10,722 2023 10,231 2024 8,754 Thereafter 18,640 Total lease payments $ 66,259 Less: Imputed interest (8,101 ) Total lease obligations $ 58,158 |
Additional Information Related to Company's Leases | The table below presents additional information related to the Company’s leases: Weighted average remaining lease term Operating leases 11.6 years Weighted average discount rate Operating leases 3.4 % |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases were as follows: (in thousands) Nine months ended May 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 12,121 ROU assets obtained in exchange for new operating lease liabilities $ 26,372 |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 9 Months Ended |
May 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of May 31, 2020 were: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 147 $ — $ 147 $ — Nonqualified savings plan investments 32,165 32,165 — — Cash equivalents 203,301 203,301 — — $ 235,613 $ 235,466 $ 147 $ — Liabilities: Derivative financial instruments $ 17,646 $ — $ 17,646 $ — (1) Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 12 - Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2019 were: (In thousands) Total Level 1 Level 2 Level 3 Assets: Derivative financial instruments $ 64 $ — $ 64 $ — Nonqualified savings plan investments 27,967 27,967 — — Cash equivalents 68,100 68,100 — — $ 96,131 $ 96,067 $ 64 $ — Liabilities: Derivative financial instruments $ 11,279 $ — $ 11,279 $ — |
Interim Financial Statements -
Interim Financial Statements - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 01, 2019 | May 31, 2020 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Cumulative-effect adjustment | $ 4,400 | |
Operating lease ROU assets | 40,400 | $ 56,886 |
Operating lease liabilities | $ 41,600 | $ 58,158 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Balances (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
May 31, 2020 | Aug. 31, 2019 | ||
Change In Contract With Customer Asset And Liability [Abstract] | |||
Contract assets | $ 7,471 | $ 10,196 | |
Contract liabilities | [1] | 47,648 | $ 52,118 |
Change in contract assets | (2,725) | ||
Change in contract liabilities | [1] | $ (4,470) | |
[1] | Contract liabilities balance includes deferred revenue within the scope of Topic 606. |
Revenue Recognition - Additiona
Revenue Recognition - Additional information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended |
May 31, 2020USD ($) | May 31, 2020USD ($) | |
Revenue From Contract With Customers [Line Items] | ||
Revenue recognized from contract with customers liability | $ 2.7 | $ 27.2 |
Railcar sales | ||
Revenue From Contract With Customers [Line Items] | ||
Expected revenue recognized in the reminder of fiscal year | 400 | 400 |
Services | ||
Revenue From Contract With Customers [Line Items] | ||
Expected revenue recognized in the reminder of fiscal year | $ 134.8 | $ 134.8 |
Expected performance percentage | 45.00% | 45.00% |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Estimated Revenue Related to Performance Obligations (Detail) $ in Millions | May 31, 2020USD ($) | |
Railcar sales | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | $ 400 | |
Services | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 134.8 | |
Other | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 132.3 | |
Manufacturing | Railcar sales | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 2,292.1 | |
Manufacturing | Marine | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 36.8 | |
Manufacturing | Railcars for Syndication | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | $ 239.1 | [1] |
[1] | Not a performance obligation as defined in Topic 606 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | Jul. 26, 2019USD ($)Railcar | May 31, 2020USD ($) | May 31, 2019USD ($) | May 31, 2020USD ($) | May 31, 2019USD ($) |
Business Acquisition [Line Items] | |||||
Revenue | $ 762,557 | $ 856,152 | $ 2,155,764 | $ 2,119,346 | |
Earnings (loss) from operations | 66,812 | 53,189 | 147,032 | 107,697 | |
Manufacturing | |||||
Business Acquisition [Line Items] | |||||
Revenue | 653,007 | 681,588 | 1,800,317 | 1,629,396 | |
Earnings (loss) from operations | 68,445 | $ 72,110 | 167,693 | $ 122,955 | |
American Railcar Industries | |||||
Business Acquisition [Line Items] | |||||
Business combination estimated gross purchase price | $ 417,200 | ||||
Number of railcar manufacturing facilities acquired | Railcar | 2 | ||||
Business combination consideration transferred for capital expenditures | $ 8,500 | ||||
Senior term debt | 300,000 | 300,000 | |||
Convertible senior notes | $ 50,000 | 50,000 | |||
American Railcar Industries | Manufacturing | |||||
Business Acquisition [Line Items] | |||||
Revenue | 338,700 | ||||
Earnings (loss) from operations | $ 6,700 |
Acquisitions - Preliminary Allo
Acquisitions - Preliminary Allocation of Purchase Price Based on Fair Value of Net Assets Acquired (Detail) - USD ($) $ in Thousands | May 31, 2020 | Aug. 31, 2019 |
Business Acquisition [Line Items] | ||
Intangibles and other assets, net | $ 36,431 | |
Goodwill | 130,035 | $ 129,947 |
American Railcar Industries | ||
Business Acquisition [Line Items] | ||
Accounts receivable, net | 27,659 | |
Inventories | 98,053 | |
Property, plant and equipment, net | 225,045 | |
Investments in unconsolidated affiliates | 40,314 | |
Intangibles and other assets, net | 36,785 | |
Goodwill | 56,514 | |
Total assets acquired | 484,370 | |
Total liabilities assumed | 67,174 | |
Net assets acquired | $ 417,196 |
Acquisitions - Identified Intan
Acquisitions - Identified Intangible Assets (Detail) - American Railcar Industries $ in Thousands | 9 Months Ended |
May 31, 2020USD ($) | |
Business Acquisition [Line Items] | |
Identified intangible assets subject to amortization | $ 35,571 |
Other identified intangible assets not subject to amortization | 860 |
Total identified intangible assets | 36,431 |
Trademarks and patents | |
Business Acquisition [Line Items] | |
Identified intangible assets subject to amortization | $ 19,500 |
Identified intangible assets subject to amortization,Useful Life | 9 years |
Customer and supplier relationships | |
Business Acquisition [Line Items] | |
Identified intangible assets subject to amortization | $ 16,071 |
Identified intangible assets subject to amortization,Useful Life | 7 years |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | May 31, 2020 | Aug. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Manufacturing supplies and raw materials | $ 326,686 | $ 387,015 |
Work-in-process | 148,342 | 156,614 |
Finished goods | 219,050 | 130,576 |
Excess and obsolete adjustment | (18,636) | (9,512) |
Inventories | $ 675,442 | $ 664,693 |
Intangibles and Other Assets,_3
Intangibles and Other Assets, Net - Identifiable Intangible and Other Assets (Detail) - USD ($) $ in Thousands | May 31, 2020 | Sep. 01, 2019 | Aug. 31, 2019 |
Intangibles and Other Assets by Major Class [Line Items] | |||
Finite-Lived Intangible Assets, Net, Total | $ 62,596 | $ 67,995 | |
Intangible assets not subject to amortization | 2,513 | 5,450 | |
Prepaid and other assets | 19,646 | 15,749 | |
Operating lease ROU assets | 56,886 | $ 40,400 | |
Nonqualified savings plan investments | 32,165 | 27,967 | |
Revolving notes issuance costs, net | 3,859 | 4,568 | |
Assets held for sale | 3,650 | 3,650 | |
Total Intangible and other assets, net | 181,315 | 125,379 | |
Customer Relationships | |||
Intangibles and Other Assets by Major Class [Line Items] | |||
Finite lived intangible assets gross | 89,722 | 89,722 | |
Accumulated amortization | (54,600) | (48,850) | |
Other Intangible Assets | |||
Intangibles and Other Assets by Major Class [Line Items] | |||
Finite lived intangible assets gross | 36,748 | 34,031 | |
Accumulated amortization | $ (9,274) | $ (6,908) |
Intangibles and Other Assets,_4
Intangibles and Other Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 2.7 | $ 1.3 | $ 8.2 | $ 4.6 |
Future amortization expense, 2020 | 10.4 | 10.4 | ||
Future amortization expense, 2021 | 10.4 | 10.4 | ||
Future amortization expense, 2022 | 7 | 7 | ||
Future amortization expense, 2023 | 5.8 | 5.8 | ||
Future amortization expense, 2024 | $ 5.8 | $ 5.8 |
Revolving Notes - Additional In
Revolving Notes - Additional Information (Detail) | 9 Months Ended | |
May 31, 2020USD ($)FacilityCreditFacility | Aug. 31, 2019USD ($) | |
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 136,800,000 | |
Long-term Line of Credit | $ 416,535,000 | $ 27,115,000 |
Number of lines of credits | CreditFacility | 2 | |
Senior Secured Credit Facilities, Consisting of 3 Components | ||
Line of Credit Facility [Line Items] | ||
Number of senior secured credit facilities | Facility | 3 | |
Line of credit facility maximum capacity | $ 705,100,000 | |
Letter of credit facility outstanding amount | 28,700,000 | 24,400,000 |
Borrowings | 350,000,000 | |
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 600,000,000 | |
Line of credit maturity date | 2024-06 | |
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.50% | |
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 0.50% | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 55,100,000 | |
Long-term Line of Credit | 13,900,000 | |
Letter of credit facility outstanding amount | $ 46,500,000 | $ 27,100,000 |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Minimum | ||
Line of Credit Facility [Line Items] | ||
Line of credit maturity date | 2020-08 | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Maximum | ||
Line of Credit Facility [Line Items] | ||
Line of credit maturity date | 2021-07 | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | WIBOR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.10% | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | WIBOR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.50% | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | EURIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.10% | |
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 | |
Letter of credit facility outstanding amount | 20,000,000 | |
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 | 2024-03 | |
Mexican Railcar Manufacturing Joint Venture Line of Credit 1, 3rd Component of Senior Secured Credit Facilities | LIBOR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 3.75% | |
Mexican Railcar Manufacturing Joint Venture Line of Credit 1, 3rd Component of Senior Secured Credit Facilities | LIBOR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 4.25% | |
Mexican Railcar Manufacturing 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 | 2021-06 | |
Joint venture partner each guaranteed percentage | 50.00% | |
Mexican Railcar Manufacturing Joint Venture Line of Credit 2, 3rd Component of Senior Secured Credit Facilities | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 3.75% |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | May 31, 2020 | Feb. 29, 2020 | Sep. 01, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Aug. 31, 2018 |
Payables And Accruals [Abstract] | |||||||
Trade payables | $ 161,900 | $ 302,009 | |||||
Other accrued liabilities | 106,200 | 108,939 | |||||
Operating lease liabilities | 58,158 | $ 41,600 | |||||
Accrued payroll and related liabilities | 100,152 | 106,669 | |||||
Accrued warranty | 47,743 | $ 46,850 | 46,678 | $ 23,965 | $ 24,994 | $ 27,395 | |
Income taxes payable | 14,816 | 4,065 | |||||
Accounts payable and accrued liabilities | $ 488,969 | $ 568,360 |
Warranty Accruals - Warranty Ac
Warranty Accruals - Warranty Accrual Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Guarantees And Product Warranties [Abstract] | ||||
Balance at beginning of period | $ 46,850 | $ 24,994 | $ 46,678 | $ 27,395 |
Charged to cost of revenue, net | 2,600 | 1,235 | 5,862 | 4,088 |
Payments | (1,518) | (2,004) | (4,653) | (6,801) |
Currency translation effect | (189) | (260) | (144) | (717) |
Balance at end of period | $ 47,743 | $ 23,965 | $ 47,743 | $ 23,965 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) $ in Thousands | 9 Months Ended |
May 31, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ 1,276,730 |
Ending balance | 1,291,221 |
Unrealized Gain (Loss) on Derivative Financial Instruments | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (8,841) |
Other comprehensive loss before reclassifications | (7,127) |
Amounts reclassified from Accumulated other comprehensive loss | 2,322 |
Ending balance | (13,646) |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (34,194) |
Other comprehensive loss before reclassifications | (13,306) |
Ending balance | (47,500) |
Other | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (1,780) |
Other comprehensive loss before reclassifications | (140) |
Ending balance | (1,920) |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (44,815) |
Other comprehensive loss before reclassifications | (20,573) |
Amounts reclassified from Accumulated other comprehensive loss | 2,322 |
Ending balance | $ (63,066) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Amounts Reclassified out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest and foreign exchange | $ 7,562 | $ 9,770 | $ 33,023 | $ 23,411 |
Total before tax | (59,250) | (43,419) | (114,009) | (84,286) |
Income tax benefit | 24,421 | 13,008 | 37,878 | 24,391 |
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total before tax | 2,494 | 391 | 3,131 | 1,944 |
Income tax benefit | (649) | (85) | (809) | (468) |
Net of tax | 1,845 | 306 | 2,322 | 1,476 |
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss | Foreign Exchange Contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Revenue and Cost of revenue | 1,711 | 249 | 1,812 | 1,506 |
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 | $ 783 | $ 142 | $ 1,319 | $ 438 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | ||
Earnings Per Share Disclosure [Line Items] | |||||
Weighted average basic common shares outstanding | [1] | 32,690 | 32,603 | 32,660 | 32,623 |
Dilutive effect of restricted stock units | [2] | 788 | 580 | 754 | 538 |
Weighted average diluted common shares outstanding | 33,478 | 33,183 | 33,414 | 33,161 | |
2.875% Convertible Senior Notes | |||||
Earnings Per Share Disclosure [Line Items] | |||||
Dilutive effect of convertible notes | [3] | 0 | 0 | 0 | 0 |
2.25% Convertible Senior Notes | |||||
Earnings Per Share Disclosure [Line Items] | |||||
Dilutive effect of convertible notes | [4] | 0 | 0 | ||
[1] | Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. | ||||
[2] | Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. | ||||
[3] | The dilutive effect of the 2.875% Convertible notes was excluded for the three and nine months ended May 31, 2020 and 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. | ||||
[4] | The 2.25% Convertible notes were issued in July 2019. The dilutive effect of the 2.25% Convertible notes was excluded for the three and nine months ended May 31, 2020 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. |
Earnings Per Share - Reconcil_2
Earnings Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share (Parenthetical) (Detail) | May 31, 2020 | May 31, 2019 |
2.875% Convertible Senior Notes | ||
Earnings Per Share Disclosure [Line Items] | ||
Debt instrument, interest rate | 2.875% | 2.875% |
2.25% Convertible Senior Notes | ||
Earnings Per Share Disclosure [Line Items] | ||
Debt instrument, interest rate | 2.25% |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) | May 31, 2020 | May 31, 2019 |
2.875% Convertible Senior Notes | ||
Earnings Per Share Disclosure [Line Items] | ||
Debt instrument, interest rate | 2.875% | 2.875% |
2.25% Convertible Senior Notes | ||
Earnings Per Share Disclosure [Line Items] | ||
Debt instrument, interest rate | 2.25% |
Earnings Per Share - Approach t
Earnings Per Share - Approach to Calculate Diluted Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to Greenbrier | $ 27,772 | $ 15,248 | $ 49,070 | $ 35,969 |
Weighted average diluted common shares outstanding | 33,478 | 33,183 | 33,414 | 33,161 |
Diluted earnings per share | $ 0.83 | $ 0.46 | $ 1.47 | $ 1.08 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Stock based compensation expense | $ 1,000 | $ 3,500 | $ 8,265 | $ 10,792 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 9 Months Ended |
May 31, 2020USD ($) | |
Foreign Exchange Contracts | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 37,300,000 |
Amount reclassified to revenue or cost of revenue in the next year | 1,100,000 |
Interest rate swap contracts | |
Derivative [Line Items] | |
Unrealized pre-tax gain (loss) that would be reclassified to interest expense in the next year | 5,000,000 |
Interest rate swap contracts | Derivatives maturing on September 2023 | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 106,600,000 |
Maturity date | 2023-09 |
Interest rate swap contracts | Derivatives maturing on June 2024 | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 146,300,000 |
Maturity date | 2024-06 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | May 31, 2020 | Aug. 31, 2019 |
Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 17,644 | $ 10,692 |
Designated as Hedging Instrument | Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 147 | 64 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 768 | 437 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 147 | 64 |
Designated as Hedging Instrument | Interest rate swap contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 16,876 | 10,255 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 2 | $ 587 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on Statements of Income (Detail) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in OCI on derivatives | $ (7,769) | $ (2,272) | $ (9,973) | $ (6,702) |
Gain (loss) reclassified accumulated OCI income | (2,494) | (392) | (3,131) | (1,944) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | 549 | 280 | 1,255 | 1,836 |
Foreign Exchange Forward | Interest and Foreign Exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income on derivatives | 154 | 60 | 495 | |
Foreign Exchange Forward | Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in OCI on derivatives | (599) | 330 | 164 | (16) |
Gain (loss) reclassified accumulated OCI income | (485) | (68) | (584) | (735) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | 138 | 264 | 781 | 1,164 |
Foreign Exchange Forward | Cost Of Revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in OCI on derivatives | (2,015) | 102 | (2,198) | (293) |
Gain (loss) reclassified accumulated OCI income | (1,226) | (181) | (1,228) | (771) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | 130 | 179 | 474 | 857 |
Interest rate swap contracts | Interest and Foreign Exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in OCI on derivatives | (5,155) | (2,704) | (7,939) | (6,393) |
Gain (loss) reclassified accumulated OCI income | (783) | (143) | $ (1,319) | (438) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | $ 281 | $ (163) | $ (185) |
Derivative Instruments - Effe_2
Derivative Instruments - Effects of Cash Flow Hedges Included in Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Derivative [Line Items] | ||||
Revenue | $ 762,557 | $ 856,152 | $ 2,155,764 | $ 2,119,346 |
Cost of revenue | 655,026 | 749,580 | 1,869,708 | 1,886,397 |
Interest and foreign exchange | 7,562 | 9,770 | 33,023 | 23,411 |
Sales | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on cash flow hedge activity | (485) | (68) | (584) | (735) |
Cost of Sales | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on cash flow hedge activity | (1,226) | (181) | (1,228) | (771) |
Interest and Foreign Exchange | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on cash flow hedge activity | $ (783) | $ (143) | $ (1,319) | $ (438) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
May 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Segments
Segment Information - Segments Internal Financial Reports (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | Aug. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 762,557 | $ 856,152 | $ 2,155,764 | $ 2,119,346 | |
Earnings (loss) from operations | 66,812 | 53,189 | 147,032 | 107,697 | |
Assets | 3,279,031 | 3,279,031 | $ 2,990,637 | ||
Manufacturing | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 653,007 | 681,588 | 1,800,317 | 1,629,396 | |
Earnings (loss) from operations | 68,445 | 72,110 | 167,693 | 122,955 | |
Wheels, Repair & Parts | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 82,024 | 124,980 | 259,857 | 358,801 | |
Earnings (loss) from operations | 3,785 | (8,820) | 8,219 | (2,750) | |
Leasing & Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 27,526 | 49,584 | 95,590 | 131,149 | |
Earnings (loss) from operations | 11,837 | 15,337 | 34,407 | 53,880 | |
Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Earnings (loss) from operations | (17,255) | (25,438) | (63,287) | (66,388) | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | (17,519) | (46,650) | (45,610) | (133,455) | |
Earnings (loss) from operations | (14,156) | (7,721) | (29,297) | (17,519) | |
Intersegment Eliminations | Manufacturing | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,151 | 29,201 | 1,269 | 82,257 | |
Earnings (loss) from operations | 95 | 2,000 | 73 | 4,791 | |
Intersegment Eliminations | Wheels, Repair & Parts | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,527 | 11,601 | 12,511 | 36,440 | |
Earnings (loss) from operations | (393) | 808 | (903) | 262 | |
Intersegment Eliminations | Leasing & Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 14,841 | 5,848 | 31,830 | 14,758 | |
Earnings (loss) from operations | 14,454 | 4,913 | 30,127 | 12,466 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Earnings (loss) from operations | (17,255) | (25,438) | (63,287) | (66,388) | |
Operating Segments | Manufacturing | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 654,158 | 710,789 | 1,801,586 | 1,711,653 | |
Earnings (loss) from operations | 68,540 | 74,110 | 167,766 | 127,746 | |
Assets | 1,441,052 | 1,441,052 | 1,606,571 | ||
Operating Segments | Wheels, Repair & Parts | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 83,551 | 136,581 | 272,368 | 395,241 | |
Earnings (loss) from operations | 3,392 | (8,012) | 7,316 | (2,488) | |
Assets | 296,888 | 296,888 | 306,725 | ||
Operating Segments | Leasing & Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 42,367 | 55,432 | 127,420 | 145,907 | |
Earnings (loss) from operations | 26,291 | $ 20,250 | 64,534 | $ 66,346 | |
Assets | 777,523 | 777,523 | 708,799 | ||
Operating Segments | Unallocated Amount to Segment | |||||
Segment Reporting Information [Line Items] | |||||
Assets | $ 763,568 | $ 763,568 | $ 368,542 |
Segment Information - Reconcili
Segment Information - Reconciliation of Earnings from Operations to Earnings Before Income Tax and Earnings (Loss) from Unconsolidated Affiliates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Segment Reporting [Abstract] | ||||
Earnings from operations | $ 66,812 | $ 53,189 | $ 147,032 | $ 107,697 |
Interest and foreign exchange | 7,562 | 9,770 | 33,023 | 23,411 |
Earnings before income tax and earnings (loss) from unconsolidated affiliates | $ 59,250 | $ 43,419 | $ 114,009 | $ 84,286 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
May 31, 2020 | May 31, 2020 | Aug. 31, 2019 | |
Lessor and Lessee, Lease, Description [Line Items] | |||
Operating lease rental revenues | $ 9 | $ 30.2 | |
Finance lease option to extend | options to extend up to 15 years | ||
Car Hire Utilization Arrangements | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Operating lease rental revenues | 2.8 | $ 9.3 | |
Minimum | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Sublease period | 1 year | ||
Financing lease remaining lease term | 1 year | ||
Maximum | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Sublease period | 9 years | ||
Financing lease remaining lease term | 78 years | ||
Equipment on Operating Lease | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Accumulated depreciation | 31.1 | $ 31.1 | $ 44.2 |
Depreciation expense | $ 2.6 | $ 9.2 |
Leases - Aggregate Minimum Futu
Leases - Aggregate Minimum Future Amounts Receivable Under All Non-Cancelable Operating Leases and Subleases (Detail) $ in Thousands | May 31, 2020USD ($) |
Leases [Abstract] | |
Remaining three months of 2020 | $ 7,579 |
2021 | 28,249 |
2022 | 26,044 |
2023 | 20,567 |
2024 | 16,984 |
Thereafter | 24,203 |
Operating Leases, Future Minimum Payments Receivable, Total | $ 123,626 |
Leases - Components of Operatin
Leases - Components of Operating Lease Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
May 31, 2020 | May 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 4,388 | $ 11,238 |
Short-term lease expense | 1,707 | 6,437 |
Total | $ 6,095 | $ 17,675 |
Leases - Aggregate Minimum Fu_2
Leases - Aggregate Minimum Future Amounts Payable Under Operating Leases (Detail) - USD ($) $ in Thousands | May 31, 2020 | Sep. 01, 2019 |
Leases [Abstract] | ||
Remaining three months of 2020 | $ 3,935 | |
2021 | 13,977 | |
2022 | 10,722 | |
2023 | 10,231 | |
2024 | 8,754 | |
Thereafter | 18,640 | |
Total lease payments | 66,259 | |
Less: Imputed interest | (8,101) | |
Total lease obligations | $ 58,158 | $ 41,600 |
Leases - Additional Informati_2
Leases - Additional Information Related to Company's Leases (Detail) | May 31, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term | 11 years 7 months 6 days |
Weighted average discount rate | 3.40% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 9 Months Ended |
May 31, 2020USD ($) | |
Cash Flow Operating Activities Lessee [Abstract] | |
Operating cash flows from operating leases | $ 12,121 |
ROU assets obtained in exchange for new operating lease liabilities | $ 26,372 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jan. 06, 2017USD ($)Segment | Dec. 31, 2016USD ($) | May 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |||
Remedial investigation and feasibility study | $ 110,000,000 | ||
Amsted-Maxion Cruzeiro | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Note receivable | $ 4,500,000 | ||
Greenbrier-Maxion | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Note receivable | 3,900,000 | ||
Performance Guarantee | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Letter of credit facility outstanding amount | $ 28,700,000 | ||
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% |
Fair Value Measures - Assets an
Fair Value Measures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | May 31, 2020 | Aug. 31, 2019 | |
Assets: | |||
Nonqualified savings plan investments | $ 32,165 | $ 27,967 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | 147 | 64 | |
Nonqualified savings plan investments | 32,165 | 27,967 | |
Cash equivalents | 203,301 | 68,100 | |
Assets, Fair Value Disclosure, Total | 235,613 | 96,131 | |
Liabilities: | |||
Derivative financial instruments | 17,646 | 11,279 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Nonqualified savings plan investments | 32,165 | 27,967 | |
Cash equivalents | 203,301 | 68,100 | |
Assets, Fair Value Disclosure, Total | 235,466 | 96,067 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | 147 | [1] | 64 |
Assets, Fair Value Disclosure, Total | 147 | [1] | 64 |
Liabilities: | |||
Derivative financial instruments | 17,646 | [1] | $ 11,279 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||
Liabilities: | |||
Derivative financial instruments | $ 0 | ||
[1] | Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 12 - Derivative Instruments for further discussion. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2019 | May 31, 2020 | May 31, 2020 | May 31, 2019 | Aug. 31, 2019 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||||||
Carrying amount of investment in unconsolidated affiliates | $ 4,700 | $ 4,700 | ||||
Percentage of recognized revenue and margin from sale | 60.00% | |||||
Percentage of deferred revenue and margin from sale | 40.00% | |||||
Revenue recognize from railcars sold | $ 18,200 | |||||
Dividends paid to joint venture partner | 22,500 | $ 36,152 | 11,715 | |||
Amsted-Maxion Cruzeiro | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership in entity | 29.50% | 24.50% | ||||
Notes receivable conversion to equity | $ 4,800 | |||||
Proceeds from notes receivable | $ 1,500 | |||||
Additional equity method investment ownership percentage | 5.00% | |||||
Note receivable | 4,500 | 4,500 | ||||
Greenbrier-Maxion | ||||||
Related Party Transaction [Line Items] | ||||||
Note receivable | 3,900 | 3,900 | ||||
Leasing Warehouse | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue recognize from railcars sold | $ 5,600 | |||||
Greenbrier | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership in entity | 40.00% | |||||
Greenbrier | Leasing Warehouse | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue recognize from railcars sold | $ 0 | $ 0 | ||||
Axis LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership in entity | 41.90% | 41.90% | ||||
Axis LLC | Railcar Components | ||||||
Related Party Transaction [Line Items] | ||||||
Purchases of goods from related party | $ 4,300 | $ 11,500 |