Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Oct. 27, 2020 | Feb. 29, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Title of 12(b) Security | Common Stock | ||
Entity Common Stock, Shares Outstanding | 32,824,080 | ||
Entity Public Float | $ 772,657,580 | ||
Document Annual 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 | ||
Documents Incorporated by Reference | Certain portions of the registrant’s definitive Proxy Statement prepared in connection with the Annual Meeting of Stockholders to be held on January 6, 2021 are incorporated by reference into Parts II and III of this Report. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 833,745 | $ 329,684 |
Restricted cash | 8,342 | 8,803 |
Accounts receivable, net | 239,597 | 373,383 |
Inventories | 529,529 | 664,693 |
Leased railcars for syndication | 107,671 | 182,269 |
Equipment on operating leases, net | 350,442 | 366,688 |
Property, plant and equipment, net | 711,524 | 717,973 |
Investment in unconsolidated affiliates | 72,354 | 91,818 |
Intangibles and other assets, net | 190,322 | 125,379 |
Goodwill | 130,308 | 129,947 |
Total assets | 3,173,834 | 2,990,637 |
Liabilities and Equity | ||
Revolving notes | 351,526 | 27,115 |
Accounts payable and accrued liabilities | 463,880 | 568,360 |
Deferred income taxes | 7,701 | 13,946 |
Deferred revenue | 42,467 | 85,070 |
Notes payable, net | 804,088 | 822,885 |
Commitments and contingencies (Notes 20 & 21) | ||
Contingently redeemable noncontrolling interest | 31,117 | 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 outstanding at August 31, 2020 and 2019 | ||
Additional paid-in capital | 460,400 | 453,943 |
Retained earnings | 885,460 | 867,602 |
Accumulated other comprehensive loss | (52,817) | (44,815) |
Total equity - Greenbrier | 1,293,043 | 1,276,730 |
Noncontrolling interest | 180,012 | 164,967 |
Total equity | 1,473,055 | 1,441,697 |
Liabilities and Equity | $ 3,173,834 | $ 2,990,637 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2020 | Aug. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, without par value | ||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, without par value | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares outstanding | 32,701,000 | 32,488,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | ||||
Revenue | ||||||
Revenue | $ 2,792,189 | $ 3,033,591 | $ 2,519,464 | |||
Cost of revenue | ||||||
Cost of revenue | 2,439,058 | 2,667,105 | 2,110,409 | |||
Margin | 353,131 | 366,486 | 409,055 | |||
Selling and administrative | 204,706 | 213,308 | 200,439 | |||
Net gain on disposition of equipment | (20,004) | (40,963) | (44,369) | |||
Goodwill impairment | 10,025 | |||||
Earnings from operations | 168,429 | 184,116 | 252,985 | |||
Other costs | ||||||
Interest and foreign exchange | 43,619 | 30,912 | 29,368 | |||
Earnings before income tax and earnings (loss) from unconsolidated affiliates | 124,810 | 153,204 | 223,617 | |||
Income tax expense | (40,184) | (41,588) | (32,893) | |||
Earnings before earnings (loss) from unconsolidated affiliates | 84,626 | 111,616 | 190,724 | |||
Earnings (loss) from unconsolidated affiliates | 2,960 | (5,805) | (18,661) | |||
Net earnings | 87,586 | 105,811 | 172,063 | |||
Net earnings attributable to noncontrolling interest | (38,619) | (34,735) | (20,282) | |||
Net earnings attributable to Greenbrier | $ 48,967 | $ 71,076 | $ 151,781 | |||
Basic earnings per common share | $ 1.50 | [1] | $ 2.18 | [1] | $ 4.92 | |
Diluted earnings per common share | [2] | $ 1.46 | [1] | $ 2.14 | [1] | $ 4.68 |
Weighted average common shares: | ||||||
Basic | [3] | 32,670 | 32,615 | 30,857 | ||
Diluted | 33,441 | 33,165 | 32,835 | |||
Manufacturing | ||||||
Revenue | ||||||
Revenue | $ 2,349,971 | $ 2,431,499 | $ 2,044,586 | |||
Cost of revenue | ||||||
Cost of revenue | 2,065,169 | 2,137,625 | 1,727,407 | |||
Earnings from operations | 197,388 | 217,583 | 240,901 | |||
Wheels, Repair & Parts | ||||||
Revenue | ||||||
Revenue | 324,670 | 444,502 | 347,023 | |||
Cost of revenue | ||||||
Cost of revenue | 302,189 | 420,890 | 318,330 | |||
Earnings from operations | 9,032 | (2,941) | 16,731 | |||
Leasing & Services | ||||||
Revenue | ||||||
Revenue | 117,548 | 157,590 | 127,855 | |||
Cost of revenue | ||||||
Cost of revenue | 71,700 | 108,590 | 64,672 | |||
Earnings from operations | $ 40,927 | $ 64,763 | $ 88,481 | |||
[1] | Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. | |||||
[2] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on the 3.5% | |||||
[3] | Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. No restricted stock and restricted stock units were anti-dilutive for the years ended August 31, 2020, 2019 and 2018 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 87,586 | $ 105,811 | $ 172,063 | |
Other comprehensive income (loss) | ||||
Translation adjustment | (5,602) | (12,725) | (16,159) | |
Reclassification of derivative financial instruments recognized in net earnings | [1] | 4,175 | 1,854 | (415) |
Unrealized loss on derivative financial instruments | [2] | (7,304) | (10,264) | (197) |
Other (net of tax effect) | 749 | (351) | (335) | |
Other comprehensive income | (7,982) | (21,486) | (17,106) | |
Comprehensive income | 79,604 | 84,325 | 154,957 | |
Comprehensive income attributable to noncontrolling interest | (38,639) | (34,698) | (20,263) | |
Comprehensive income attributable to Greenbrier | $ 40,965 | $ 49,627 | $ 134,694 | |
[1] | Net of tax effect of $(1.5 million), $(0.5 million) and nil for the years ended August 31, 2020, 2019 and 2018, respectively | |||
[2] | Net of tax effect of $2.9 million, $2.9 million and $(0.1 million) for the years ended August 31, 2020, 2019 and 2018, respectively |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Reclassification of derivative financial instruments recognized in net earnings (loss), tax | $ (1.5) | $ (0.5) | |
Unrealized loss on derivative financial instruments, tax | $ 2.9 | $ 2.9 | $ (0.1) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Shares | Additional Paid-in Capital | Additional Paid-in Capital2024 Convertible Senior Notes | Retained Earnings | Retained EarningsCumulative Effect Adjustment Due to Adoption | Accumulated Other Comprehensive (Loss) | Total Equity - Greenbrier | Total Equity - GreenbrierCumulative Effect Adjustment Due to Adoption | Total Equity - Greenbrier2024 Convertible Senior Notes | Noncontrolling Interest | Equity Excluding Contingently Redeemable Noncontrolling Interest | Equity Excluding Contingently Redeemable Noncontrolling InterestCumulative Effect Adjustment Due to Adoption | Equity Excluding Contingently Redeemable Noncontrolling Interest2024 Convertible Senior Notes | Contingently Redeemable Noncontrolling Interest |
Beginning balance at Aug. 31, 2017 | $ 315,306 | $ 709,103 | $ (6,279) | $ 1,018,130 | $ 160,763 | $ 1,178,893 | |||||||||
Beginning balance (in shares) at Aug. 31, 2017 | 28,503 | ||||||||||||||
Beginning balance at Aug. 31, 2017 | $ 36,148 | ||||||||||||||
Net earnings | $ 172,063 | 151,781 | 151,781 | 26,662 | 178,443 | ||||||||||
Net earnings | (6,380) | ||||||||||||||
Other comprehensive income (loss),net | (17,106) | (17,087) | (17,087) | (19) | (17,106) | ||||||||||
Noncontrolling interest adjustments | 2,864 | 2,864 | |||||||||||||
Joint venture partner distribution declared | (62,649) | (62,649) | |||||||||||||
Investment by joint venture partner | 6,500 | 6,500 | |||||||||||||
Noncontrolling interest acquired | (7) | (7) | |||||||||||||
Restricted stock awards (net of cancellations) | $ 336 | 7,334 | 7,334 | 7,334 | |||||||||||
Unamortized restricted stock | (15,058) | (15,058) | (15,058) | ||||||||||||
Restricted stock amortization | 16,100 | 16,100 | 16,100 | ||||||||||||
Cash dividends | (29,986) | (29,986) | (29,986) | ||||||||||||
Conversion of 3.5% Convertible 2018 Senior Notes | 118,887 | 118,887 | 118,887 | ||||||||||||
Conversion of 3.5% Convertible 2018 Senior Notes (in shares) | 3,352 | ||||||||||||||
Ending balance at Aug. 31, 2018 | 442,569 | $ 830,898 | $ 5,461 | (23,366) | $ 1,250,101 | $ 5,461 | 134,114 | $ 1,384,215 | $ 5,461 | ||||||
Ending Balance (in shares) at Aug. 31, 2018 | 32,191 | ||||||||||||||
Ending Balance at Aug. 31, 2018 | 29,768 | ||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | us-gaap:AccountingStandardsUpdate201409Member | us-gaap:AccountingStandardsUpdate201409Member | ||||||||||||
Net earnings | 105,811 | $ 71,076 | $ 71,076 | 39,598 | $ 110,674 | ||||||||||
Net earnings | (4,863) | ||||||||||||||
Other comprehensive income (loss),net | (21,486) | (21,449) | (21,449) | (37) | (21,486) | ||||||||||
Noncontrolling interest adjustments | (6,659) | (6,659) | 7,402 | 743 | 6,659 | ||||||||||
Joint venture partner distribution declared | (18,025) | (18,025) | |||||||||||||
Noncontrolling interest acquired | 1,915 | 1,915 | |||||||||||||
Restricted stock awards (net of cancellations) | $ 297 | 12,077 | 12,077 | 12,077 | |||||||||||
Unamortized restricted stock | (16,801) | (16,801) | (16,801) | ||||||||||||
Restricted stock amortization | 12,321 | 12,321 | 12,321 | ||||||||||||
Cash dividends | (33,174) | (33,174) | (33,174) | ||||||||||||
Convertible Senior Notes, due 2024 - equity component, net of tax | $ 3,777 | $ 3,777 | $ 3,777 | ||||||||||||
Ending balance at Aug. 31, 2019 | $ 1,441,697 | 453,943 | $ 867,602 | $ 4,393 | (44,815) | $ 1,276,730 | $ 4,393 | 164,967 | $ 1,441,697 | $ 4,393 | |||||
Ending Balance (in shares) at Aug. 31, 2019 | 32,488 | 32,488 | |||||||||||||
Ending Balance at Aug. 31, 2019 | 31,564 | ||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | ||||||||||||
Net earnings | $ 87,586 | $ 48,967 | $ 48,967 | 39,066 | $ 88,033 | (447) | |||||||||
Other comprehensive income (loss),net | (7,982) | (8,002) | (8,002) | 20 | (7,982) | ||||||||||
Noncontrolling interest adjustments | 1,436 | 1,436 | |||||||||||||
Joint venture partner distribution declared | (37,552) | (37,552) | |||||||||||||
Noncontrolling interest acquired | 12,075 | 12,075 | |||||||||||||
Restricted stock awards (net of cancellations) | $ 213 | 2,691 | 2,691 | 2,691 | |||||||||||
Unamortized restricted stock | (4,957) | (4,957) | (4,957) | ||||||||||||
Restricted stock amortization | 8,723 | 8,723 | 8,723 | ||||||||||||
Cash dividends | (35,502) | (35,502) | (35,502) | ||||||||||||
Ending balance at Aug. 31, 2020 | $ 1,473,055 | $ 460,400 | $ 885,460 | $ (52,817) | $ 1,293,043 | $ 180,012 | $ 1,473,055 | ||||||||
Ending Balance (in shares) at Aug. 31, 2020 | 32,701 | 32,701 | |||||||||||||
Ending Balance at Aug. 31, 2020 | $ 31,117 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
2018 Convertible Senior Notes | |||
Debt instrument, interest rate | 3.50% | ||
2024 Convertible Senior Notes | |||
Debt instrument, interest rate | 2.25% | ||
Equity Excluding Contingently Redeemable Noncontrolling Interest | |||
Cash dividend per share | $ 1.06 | $ 1 | $ 0.96 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Cash flows from operating activities: | |||
Net earnings | $ 87,586 | $ 105,811 | $ 172,063 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Deferred income taxes | (9,489) | (20,225) | (40,496) |
Depreciation and amortization | 109,850 | 83,731 | 74,356 |
Net gain on disposition of equipment | (20,004) | (40,963) | (44,369) |
Stock based compensation expense | 8,997 | 11,153 | 29,314 |
Accretion of debt discount | 5,504 | 4,458 | 4,171 |
Noncontrolling interest adjustments | 1,436 | 7,402 | 2,864 |
Goodwill impairment | 10,025 | ||
Other | 1,142 | 145 | 1,688 |
Decrease (increase) in assets: | |||
Accounts receivable, net | 135,326 | 13,022 | (83,551) |
Inventories | 166,607 | (143,168) | (26,592) |
Leased railcars for syndication | (12,942) | (96,110) | (54,023) |
Other assets | (64,995) | 6,843 | 34,115 |
Increase (decrease) in liabilities: | |||
Accounts payable and accrued liabilities | (108,837) | 55,910 | 54,032 |
Deferred revenue | (27,920) | (19,275) | (20,231) |
Net cash provided by (used in) operating activities | 272,261 | (21,241) | 103,341 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | (361,878) | (34,874) | |
Proceeds from sales of assets | 83,484 | 125,427 | 153,224 |
Capital expenditures | (66,879) | (198,233) | (176,848) |
Investment in and advances to unconsolidated affiliates | (1,815) | (11,393) | (26,455) |
Cash distribution from unconsolidated affiliates and other | 12,693 | 2,096 | 4,661 |
Net cash provided by (used in) investing activities | 27,483 | (443,981) | (80,292) |
Cash flows from financing activities: | |||
Net changes in revolving notes with maturities of 90 days or less | 146,542 | (105) | 23,401 |
Proceeds from revolving notes with maturities longer than 90 days | 176,500 | ||
Proceeds from issuance of notes payable | 525,000 | 13,771 | |
Repayments of notes payable | (30,179) | (182,971) | (22,269) |
Debt issuance costs | (8,630) | ||
Dividends | (35,173) | (33,193) | (29,914) |
Cash distribution to joint venture partner | (38,969) | (16,879) | (73,033) |
Investment by joint venture partner | 6,500 | ||
Tax payments for net share settlement of restricted stock | (2,266) | (6,321) | (7,723) |
Net cash provided by (used in) financing activities | 216,455 | 276,901 | (89,267) |
Effect of exchange rate changes | (12,599) | (12,666) | (14,666) |
Increase (decrease) in cash and cash equivalents and restricted cash | 503,600 | (200,987) | (80,884) |
Cash and cash equivalents and restricted cash | |||
Beginning of period | 338,487 | 539,474 | 620,358 |
Cash and cash equivalents and restricted cash, Ending balance | 842,087 | 338,487 | 539,474 |
Balance Sheet Reconciliation: | |||
Cash and cash equivalents | 833,745 | 329,684 | 530,655 |
Restricted cash | 8,342 | 8,803 | 8,819 |
Cash and cash equivalents and restricted cash, Ending balance | 842,087 | 338,487 | 539,474 |
Cash paid during the period for: | |||
Interest | 31,710 | 18,330 | 18,878 |
Income taxes, net | 59,939 | 62,084 | 66,423 |
Non-cash activity | |||
Transfer from Leased railcars for syndication and Inventories to Equipment on operating leases, net | 55,626 | 43,845 | 20,945 |
Capital expenditures accrued in Accounts payable and accrued liabilities | 4,099 | 19,385 | 13,534 |
Change in Accounts payable and accrued liabilities associated with dividends declared | (329) | 19 | (72) |
Change in Accounts payable and accrued liabilities associated with cash distributions to joint venture partner | $ 1,417 | (1,146) | 14 |
Conversion of 3.5% Convertible notes | $ 118,887 | ||
2.25% Convertible Notes, due 2024 | |||
Non-cash activity | |||
Issuance of 2.25% Convertible notes in connection with the acquisition of the manufacturing business of ARI | $ 50,000 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Aug. 31, 2019 | Aug. 31, 2018 |
2.25% Convertible Senior Notes | ||
Debt instrument, interest rate | 2.25% | |
3.5% Convertible Senior Notes | ||
Debt instrument, interest rate | 3.50% |
Nature of Operations
Nature of Operations | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | Note 1 — Nature of Operations The Company operates in three reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services. The segments are operationally integrated. The Manufacturing segment, which currently operates from facilities in the U.S., Mexico, Poland, Romania and Turkey, produces double-stack intermodal railcars, tank cars, conventional railcars, automotive railcar products and marine vessels. The Wheels, Repair & Parts segment performs wheel and axle servicing; railcar repair, refurbishment and maintenance; as well as production of a variety of parts for the rail industry in North America. The Leasing & Services segment owns approximately 8,300 railcars and provides management services for approximately 393,000 railcars for railroads, shippers, carriers, institutional investors and other leasing and transportation companies in North America as of August 31, 2020. Through unconsolidated affiliates the Company produces rail and industrial components and has an ownership stake in a railcar manufacturer in Brazil. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Principles of consolidation - The financial statements include the accounts of the Company and its subsidiaries in which it has a controlling interest. All intercompany transactions and balances are eliminated upon consolidation. Unclassified balance sheet - The balance sheets of the Company are presented in an unclassified format as a result of significant leasing activities for which the current or non-current distinction is not relevant. In addition, the activities of the Manufacturing; Wheels, Repair & Parts; and Leasing & Services segments are so intertwined that in the opinion of management, any attempt to separate the respective balance sheet categories would not be meaningful and may lead to the development of misleading conclusions by the reader. Foreign currency translation - Certain operations outside the U.S. prepare financial statements in currencies other than the U.S. Dollar. Revenues and expenses are translated at monthly average exchange rates during the year, while assets and liabilities are translated at year-end exchange rates. Translation adjustments are accumulated as a separate component of equity in other comprehensive income (loss). The net foreign currency translation adjustment balances were $39.8 million, $34.2 million and $21.5 million as of August 31, 2020, 2019 and 2018, respectively. Cash and cash equivalents - Cash may temporarily be invested primarily in money market funds. All highly-liquid investments with a maturity of three months or less at the date of acquisition are considered cash equivalents. Restricted cash - Restricted cash primarily relates to amounts held to support a target minimum rate of return on certain agreements and a pass through account for activity related to management services provided for certain third party customers. Accounts receivable - Accounts receivable consists of receivables from customers and receivables from related parties (see Note 16 - Related Party Transactions) and is stated net of allowance for doubtful accounts of $2.7 million and $2.2 million as of August 31, 2020 and 2019, respectively. As of August 31, (In thousands) 2020 2019 2018 Allowance for doubtful accounts Balance at beginning of period $ 2,176 $ 2,701 $ 1,768 Additions, net of reversals 1,661 773 938 Usage (1,291 ) (1,311 ) (54 ) Currency translation effect 124 13 49 Balance at end of period $ 2,670 $ 2,176 $ 2,701 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. Leased railcars for syndication - Leased railcars for syndication consist of newly-built railcars manufactured at one of the Company’s facilities or railcars purchased from third parties, which have been placed on lease to a customer and which the Company intends to sell to an investor with the lease attached. These railcars are generally anticipated to be sold within six months of delivery of the last railcar in a group or six months from when the Company acquires the railcar from a third party and are typically not depreciated during that period as the Company does not believe any economic value of a railcar is lost in the first six months. In the event the railcars are not sold in the first six months, the railcars are either held in Leased railcars for syndication and are depreciated or are transferred to Equipment on operating leases and are depreciated. As of August 31, 2020, Leased railcars for syndication was $107.7 million compared to $182.3 million as of August 31, 2019. Equipment on operating leases, net - Equipment on operating leases is stated net of accumulated depreciation. Depreciation to estimated salvage value is provided on the straight-line method over the estimated useful lives of up to forty years. Management periodically reviews salvage value estimates based on current scrap prices and what the Company expects to receive upon disposal. Investment in unconsolidated affiliates - Investment in unconsolidated affiliates includes the Company’s interests in certain investees which are accounted for under the equity method of accounting as the Company has determined that the investment provides the Company with the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company has an ownership interest in the voting stock of the investee of at least 20%. Several factors are considered in determining whether the equity method of accounting is appropriate including the relative ownership interests and governance rights of the joint venture partners. As of August 31, 2020, selected investments in unconsolidated affiliates include the Company’s 60% interest in Greenbrier-Maxion, 29.5% interest in Amsted-Maxion Cruzeiro (which owns 40% of Greenbrier-Maxion), 40% interest in Greenbrier Railcar Funding I LLC and 41.9% interest in Axis, LLC. Property, plant and equipment - Property, plant and equipment is stated at cost, net of accumulated depreciation. Depreciation is provided on the straight-line method over estimated useful lives which primarily are as follows: Depreciable Life Buildings and improvements 10 - 30 years Machinery and equipment 3 - 20 years Other 3 - 7 years Intangible and other assets, net - Intangible assets are recorded when a portion of the purchase price of an acquisition is allocated to assets such as customer contracts and relationships and trade names. Intangible assets with finite lives are amortized using the straight line method over their estimated useful lives which are up to 20 years. Other assets include revolving note fees which are capitalized and amortized as interest expense over the life of the related borrowings. Impairment of long-lived assets - When changes in circumstances indicate the carrying amount of certain long-lived assets may not be recoverable, the assets are evaluated for impairment. If the forecasted undiscounted future cash flows are less than the carrying amount of the assets, an impairment charge to reduce the carrying value of the assets to estimated realizable value is recognized in the current period. No impairment of long-lived assets was recorded in the years ended August 31, 2020, 2019 and 2018. Goodwill - Goodwill is recorded when the purchase price of an acquisition exceeds the fair market value of the net assets acquired. Goodwill is not amortized and is tested for impairment at least annually and more frequently if indicators of impairment arise. The Company reviews goodwill for impairment annually using either a qualitative assessment or a quantitative goodwill impairment test. If the qualitative assessment is selected and the Company determines that fair value of each reporting unit more likely than not exceeds its carrying value, no further assessment is necessary. For reporting units where the Company performs the quantitative goodwill impairment test an impairment loss is recorded to the extent that the reporting unit’s carrying amount exceeds the reporting unit’s fair value. An impairment loss cannot exceed the total amount of goodwill allocated to the reporting unit. See Note 7 – Goodwill for additional information. Warranty accruals - Warranty costs are estimated and charged to operations to cover a defined warranty period. The estimated warranty cost is based on 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, are reviewed periodically and updated based on warranty trends. Income taxes - The asset and liability method is used to account for income taxes. Deferred income taxes are provided for the temporary effects of differences between assets and liabilities recognized for financial statement and income tax reporting purposes. Valuation allowances reduce deferred tax assets to an amount that will more likely than not be realized. The Company recognizes liabilities for uncertain tax positions based on whether evidence indicates that it is more likely than not that the position will be sustained on audit. The Company reevaluates these uncertain tax positions on a quarterly basis. Changes in tax law or court interpretations may result in the recognition of a tax benefit or an additional charge to the tax provision. Deferred revenue - Cash payments received prior to meeting revenue recognition criteria are recorded in Deferred revenue. Amounts are reclassified out of Deferred revenue once the revenue recognition criteria have been met. Noncontrolling interest and Contingently redeemable noncontrolling interest - The Company has a joint venture with Grupo Industrial Monclova, S.A. (GIMSA) that manufactures new railroad freight cars for the North American marketplace at GIMSA’s existing manufacturing facility located in Frontera, Mexico. Each party owns a 50% interest in the joint venture. The financial results of this operation are consolidated for financial reporting purposes as the Company maintains a controlling interest as evidenced by the right to appoint the majority of the Board of Directors, control over accounting, financing, marketing and engineering and approval and design of products. The noncontrolling interest related to the partner’s 50% interest in the joint venture is included in Noncontrolling interest in the equity section of the Company’s Consolidated Balance Sheet. Greenbrier-Astra Rail was formed in 2017 between the Company’s existing European operations headquartered in Swidnica, Poland and Astra Rail, based in Arad, Romania. Greenbrier-Astra Rail is controlled by the Company with an approximate 75% interest. Astra Rail also received a put option to sell its entire noncontrolling interest to Greenbrier at an exercise price equal to the higher of fair value or a defined EBITDA multiple as measured on the exercise date. The option is exercisable 30 days prior to and up until June 1, 2022. The Company consolidates Greenbrier-Astra Rail for financial reporting purposes and includes the noncontrolling interest in the mezzanine section of the Consolidated Balance Sheet in Contingently redeemable noncontrolling interest. The carrying value of the noncontrolling interest cannot be less than the maximum redemption amount, which is the amount Greenbrier will settle the put option for if exercised. Adjustments to reconcile the carrying value to the maximum redemption amount are recorded to retained earnings. In August 2018, Greenbrier-Astra Rail entered into an agreement to take an approximately 68% ownership stake in Rayvag, a railcar manufacturing company based in Adana, Turkey. Rayvag is controlled by the Company. The Company consolidates Rayvag for financial reporting purposes. The noncontrolling interest related to the partner’s interest is included in Noncontrolling interest in the equity section of the Company’s Consolidated Balance Sheet. Net earnings attributable to noncontrolling interest on the Company’s Consolidated Statement of Income represents the Company’s partners’ share of results from operations. Accumulated other comprehensive loss – Accumulated other comprehensive loss, net of tax 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 income (loss) before reclassifications (7,304 ) (5,622 ) 749 $ (12,177 ) Amounts reclassified from accumulated other comprehensive loss 4,175 — — $ 4,175 Balance, August 31, 2020 $ (11,970 ) $ (39,816 ) $ (1,031 ) $ (52,817 ) The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with the financial statement caption, were as follows: Year Ended August 31, (In thousands) 2020 2019 Financial Statement Caption (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 2,984 $ 1,794 Revenue and Cost of revenue Interest rate swap contracts 2,657 545 Interest and foreign exchange 5,641 2,339 Total before tax (1,466 ) (485 ) Tax expense $ 4,175 $ 1,854 Net of tax Revenue recognition – The Company measures revenue at the amounts that reflect the consideration to which it expects to be entitled in exchange for transferring control of goods and services to customers. The Company recognizes revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. Payment terms vary by segment and product type and are generally due within normal commercial terms. The Company’s contracts with customers may include multiple performance obligations (e.g. railcars, maintenance, management services, etc.). For such arrangements, the Company allocates revenues to each performance obligation based on its relative standalone selling price. The Company has disaggregated revenue from contracts with customers into categories which describe the principal activities from which it generates revenues. Manufacturing Railcars are manufactured in accordance with contracts with customers. The Company recognizes revenue upon its customers’ acceptance of the completed railcars at a specified delivery point. From time to time, the Company enters into multi-year supply agreements. Each railcar delivery is considered a distinct performance obligation, such that the amounts that are recognized as revenue following railcar delivery are generally not subject to change. The Company typically recognizes marine vessel manufacturing revenue over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts the Company’s performance in completing the construction of the marine vessel for the customer and is consistent with the percentage of completion method used prior to the adoption of Topic 606. Wheels, Repair & Parts The Company operates a network of wheel, repair and parts shops in North America that provide complete wheelset reconditioning and railcar repair services. Wheels revenue is recognized when wheelsets are shipped to the customer or when consumed by customers in the case of consignment arrangements. Parts revenue is recognized upon shipment of the parts to the customers. Repair revenue is typically recognized over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts the Company’s performance in repairing the railcars for the customer. Repair services are typically completed in less than 90 days. Leasing & Services The Company owns a fleet of new and used cars which are leased to third-party customers. Lease revenue is recognized over the lease-term in the period in which it is earned. Syndication transactions represent new and used railcars which have been placed on lease to a customer and which the Company intends to sell to an investor with the lease attached. At the time of such sale, revenue and cost of revenue associated with railcars that the Company has manufactured are recognized in the Manufacturing segment; while revenue and cost of revenue associated with railcars which were obtained from a third-party with the intent to resell them and subsequently sold, are recognized in Leasing & Services. The Company enters into multi-year contracts to provide management and maintenance services to customers for which revenue is generally recognized on a straight-line basis over the contract term as a stand-ready obligation. Costs to fulfill these contracts are recognized as incurred. Interest and foreign exchange - Interest and foreign exchange includes foreign exchange transaction gains and losses, amortization of loan fee expense, accretion of debt discounts and external interest expense. Years ended August 31, (In thousands) 2020 2019 2018 Interest and foreign exchange: Interest and other expense $ 42,386 $ 32,260 $ 30,946 Foreign exchange (gain) loss 1,233 (1,348 ) (1,578 ) $ 43,619 $ 30,912 $ 29,368 Forward exchange contracts - Foreign operations give rise to risks from fluctuations in foreign currency exchange rates. Forward exchange contracts with established financial institutions are used to hedge a portion of such risk. Realized and unrealized gains and losses on effective hedges are deferred in other comprehensive income (loss) and recognized in earnings concurrent with the hedged transaction or when the occurrence of the hedged transaction is no longer considered probable. Ineffectiveness is measured and any gain or loss is recognized in foreign exchange (gain) loss. Even though forward exchange contracts are entered into to mitigate the impact of currency fluctuations, certain exposure remains, which may affect operating results. In addition, there is risk for counterparty non-performance. Interest rate instruments - Interest rate swap agreements are used to reduce the impact of changes in interest rates on certain debt. The net cash amounts paid or received under the agreements are recognized as an adjustment to interest expense. Research and development - Research and development costs are expensed as incurred. Research and development costs incurred for new product development during the years ended August 31, 2020, 2019 and 2018 were $5.8 million, $5.4 million and $6.0 million, respectively, included in Selling and administrative expenses. Net earnings per share - Basic earnings per common share (EPS) includes restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, in weighted average basic common shares outstanding when calculating EPS when the Company is in a net earnings position. Diluted EPS is calculated using the more dilutive of two approaches. The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance-based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 3.5% Convertible notes during the periods in which they were outstanding. Under the “if converted” method, debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes. The 3.5% Convertible notes are included in the calculation of both approaches using the treasury stock method when the average stock price is greater than the applicable conversion price. Stock-based compensation – 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 units, restricted stock and phantom stock units awards. Stock based compensation expense for the years ended August 31, 2020, 2019 and 2018 was $9.0 million, $11.2 million and $29.3 million, respectively and was recorded in Selling and administrative and Cost of revenue on the Consolidated Statements of Income. Restricted stock units and restricted stock awards are accounted for as equity based awards (see Note 14 - Equity). Phantom stock units are accounted for as liability based awards. Phantom Stock Units As of August 31, 2020, there were no phantom stock units outstanding. Compensation expense related to phantom stock unit grants were recorded in Selling and administrative expense and Cost of revenue on the Company’s Consolidated Statements of Income. Compensation expense recognized related to phantom stock units for the year ended August 31, 2020 was $0.3 million. For the year ended August 31, 2019, a $1.2 million benefit was recognized in compensation expense for the re-measurement of phantom stock units due to a lower stock price. Compensation expense recognized related to phantom stock units for the year ended August 31, 2018 was $12.1 million. 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, revenues 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. Reclassifications - Certain immaterial reclassifications have been made to the accompanying prior year Consolidated Financial Statements to conform to the current year presentation. Initial Adoption of Accounting Policies Revenue Recognition In the first quarter of 2019, the Company adopted Accounting Standard Update 2014-09, Revenue from Contracts with Customers Lease accounting On September 1, 2019, the Company adopted Accounting Standards Update 2016-02, Leases 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 Convertible Instruments and Contracts in an Entity’s Own Equity In August 2020, the FASB issued Accounting Standard Update 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Aug. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 3 – 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 opening and closing balances of the Company’s contract balances are as follows: (in thousands) Balance sheet classification August 31, 2020 August 31, 2019 $ change Contract assets Inventories $ 7,081 $ 10,196 $ (3,115 ) Contract liabilities 1 Deferred revenue $ 27,009 $ 52,118 $ (25,109 ) 1 Contract liabilities balance includes deferred revenue within the scope of Topic 606. For the year ended August 31, 2020, the Company recognized $28.0 million of revenue that was included in Contract liabilities as of August 31, 2019. Performance obligations As of August 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) August 31, 2020 Revenue type: Manufacturing – Railcar sales $ 2,053.2 Manufacturing – Marine $ 51.3 Services $ 134.3 Other $ 129.2 Manufacturing – Railcars intended for syndication 1 $ 236.1 1 Not a performance obligation as defined in Topic 606 Based on current production and delivery schedules and existing contracts, approximately $1.0 billion of the Railcar sales amount is expected to be recognized in the next 12 months 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 2022 as vessel construction is completed. Services includes management and maintenance services of which approximately 51% are expected to be performed through 2025 and the remaining amount through 2037. |
Acquisitions
Acquisitions | 12 Months Ended |
Aug. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 4 – Acquisitions Manufacturing business of American Railcar Industries, Inc. 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, the issuance to the seller of a $50 million senior convertible note and a payable to the seller for a working capital true-up amount (See Note 12 – Notes Payable, net). For the year ended August 31, 2019, the operations contributed by ARI’s manufacturing business generated revenues of $43.0 million and a loss from operations of $1.6 million, which are reported in the Company’s consolidated financial statements as part of the Manufacturing segment. The following table summarizes the fair value of the assets acquired and liabilities assumed at the date of acquisition: (in thousands) Accounts receivable $ 27,659 Inventories 98,053 Property, plant and equipment 225,045 Investments in unconsolidated affiliates 40,314 Intangibles and other assets 36,785 Goodwill 56,659 Total assets acquired 484,515 Total liabilities assumed 67,319 Net assets acquired $ 417,196 The effect of measurement period adjustments to the previously reported preliminary purchase price allocation were not material. 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 In accordance with ASC 805 Business Combinations ARI’s manufacturing business occurred on September 1, 2017. In addition, this pro forma financial information includes acquisition-related adjustments including depreciation expense to reflect the increased fair value of property, plant and equipment, amortization expense related to identified intangible assets, interest expense on the $ 50 million convertible senior note and $ 300 million senior term debt issued, and the related income tax effects. This pro forma financial information is presented for informational purposes only and does not include adjustments relating to the Company’s expected cost-savings and other synergies, and as such, is not indicative of the results of operations that would have been achieved if the acquisition had occurred on September 1, 2017 or of results that may occur in the future. As of August 31, (In thousands, except per share amounts) 2019 2018 Revenue $ 3,462,255 $ 2,893,400 Net earnings attributable to Greenbrier $ 57,284 $ 137,399 Basic earnings per common share $ 1.76 $ 4.45 Diluted earnings per common share $ 1.73 $ 4.25 GBW On August 20, 2018, the Company entered into a dissolution agreement with Watco Companies, LLC, its previous joint venture partner, to discontinue their GBW Railcar Services railcar repair joint venture. Pursuant to the dissolution agreement, previously operated Greenbrier repair shops and associated employees returned to the Company. Additionally, the dissolution agreement provides that certain agreements entered into in connection with the original creation of GBW in 2014 were terminated as of the transaction date, including the leases of real and personal property, service agreements, and certain employment-related agreements. As the assets received and liabilities assumed The results of operations from the repair shops acquired are reported in the Company’s consolidated financial statements as part of the Wheels, Repair & Parts segment. |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 — Inventories As of August 31, (In thousands) 2020 2019 Manufacturing supplies and raw materials $ 263,080 $ 387,015 Work-in-process 116,909 156,614 Finished goods 173,761 130,576 Excess and obsolete adjustment (24,221 ) (9,512 ) $ 529,529 $ 664,693 As of August 31, (In thousands) 2020 2019 2018 Excess and obsolete adjustment Balance at beginning of period $ 9,512 $ 5,614 $ 4,136 Charge to cost of revenue 17,966 9,734 4,023 Disposition of inventory (3,555 ) (5,651 ) (2,455 ) Currency translation effect 298 (185 ) (90 ) Balance at end of period $ 24,221 $ 9,512 $ 5,614 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Aug. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, net | Note 6 — Property, Plant and Equipment, net As of August 31, (In thousands) 2020 2019 Land and improvements $ 94,611 $ 87,872 Machinery and equipment 590,992 539,952 Buildings and improvements 376,272 338,639 Construction in progress 49,717 66,744 Other 97,432 90,822 1,209,024 1,124,029 Accumulated depreciation (497,500 ) (406,056 ) $ 711,524 $ 717,973 Depreciation expense was $86.6 million, $62.3 million and $54.5 million for the years ended August 31, 2020, 2019 and 2018, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Aug. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 7 — Goodwill Changes in the carrying value of goodwill are as follows: (In thousands) Manufacturing Wheels, Repair & Parts Leasing & Services Total Balance August 31, 2019 $ 86,682 $ 43,265 $ — $ 129,947 Translation and other adjustments 361 — — 361 Balance August 31, 2020 $ 87,043 $ 43,265 $ — $ 130,308 (In thousands) Goodwill Gross goodwill balance before accumulated goodwill impairment losses and other reductions $ 292,858 Accumulated goodwill impairment losses (138,234 ) Accumulated other reductions (24,316 ) Balance August 31, 2020 $ 130,308 The Company performed its annual goodwill impairment test during the third quarter. The Company determined the fair value of the reporting units while considering both the income and market approaches. Under the income approach, the Company calculates the fair value of a reporting unit based on the present value of estimated future cash flows which incorporated forecasted revenues, long-term growth rate, gross margin percentages, operating expenses, short-term net working capital changes, other cash flows and the use of discount rates. Under the market approach, the Company estimates the fair value based on observed market multiples for comparable businesses, when appropriate. Based on the results of the Company’s annual impairment test, the fair values of its reporting units exceeded their carrying values and the Company concluded that goodwill was not impaired. |
Intangibles and Other Assets, n
Intangibles and Other Assets, net | 12 Months Ended |
Aug. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangibles and Other Assets, net | Note 8 — Intangibles and Other Assets, net Intangible assets that are determined to have finite lives are amortized over their useful lives. Intangible assets with indefinite useful lives are not amortized and are periodically evaluated for impairment. The following table summarizes the Company’s identifiable intangible and other assets balance: As of August 31, (In thousands) 2020 2019 Intangible assets subject to amortization: Customer and supplier relationships $ 89,722 $ 89,722 Accumulated amortization (56,509 ) (48,850 ) Other intangibles 37,798 34,031 Accumulated amortization (10,595 ) (6,908 ) 60,416 67,995 Intangible assets not subject to amortization 2,474 5,450 Prepaid and other assets 22,026 15,749 Operating Lease ROU 62,389 — Nonqualified savings plan investments 35,744 27,967 Debt issuance costs, net 3,623 4,568 Assets held for sale 3,650 3,650 $ 190,322 $ 125,379 Amortization expense for the years ended August 31, 2020, 2019 and 2018 was $11.0 million, $6.3 million and $5.3 million, respectively. Amortization expense for the years ending August 31, 2021, 2022, 2023, 2024 and 2025 is expected to be $10.6 million, $7.3 million, $6.0 million, $6.0 million and $5.7 million, respectively. |
Revolving Notes
Revolving Notes | 12 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
Revolving Notes | Note 9 — Revolving Notes Senior secured credit facilities, consisting of three components, aggregated to $733.2 million as of August 31, 2020. As of August 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, existed to provide working capital and interim financing of equipment, principally for the U.S. and Mexican operations. Advances under this North American credit 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 August 31, 2020, lines of credit totaling $68.2 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 $16.4 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 December 2020 through September 2022. As of August 31, 2020, the Company’s Mexican railcar manufacturing joint venture had two lines of credit totaling $65.0 million. The first line of credit provides up to $30.0 million and matures in June 2024. Advances under this facility bear interest at LIBOR plus 3.75% to 4.25%. The second line of credit provides up to $35.0 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 August 31, 2020, outstanding commitments under the senior secured credit facilities consisted of $28.7 million in letters of credit and $275.0 million in borrowings under the North American credit facility, $46.5 million outstanding under the European credit facilities and $30.0 million outstanding under the Mexican credit facilities. As of August 31, 2020, the Company had an aggregate of $85.9 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 | 12 Months Ended |
Aug. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 10 — Accounts Payable and Accrued Liabilities As of August 31, (In thousands) 2020 2019 Trade payables $ 148,971 $ 302,009 Other accrued liabilities 100,168 108,939 Operating lease liabilities 64,509 — Accrued payroll and related liabilities 105,008 106,669 Accrued warranty 45,224 46,678 Income taxes payable — 4,065 $ 463,880 $ 568,360 |
Warranty Accrual
Warranty Accrual | 12 Months Ended |
Aug. 31, 2020 | |
Guarantees And Product Warranties [Abstract] | |
Warranty Accrual | Note 11 — Warranty Accrual As of August 31, (In thousands) 2020 2019 2018 Balance at beginning of period $ 46,678 $ 27,395 $ 20,737 Charged to cost of revenue 3,984 5,014 12,323 Acquisition — 23,895 — Payments (6,212 ) (8,594 ) (5,217 ) Currency translation effect 774 (1,032 ) (448 ) Balance at end of period $ 45,224 $ 46,678 $ 27,395 |
Notes Payable, net
Notes Payable, net | 12 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable, net | Note 12 — Notes Payable, net As of August 31, (In thousands) 2020 2019 Term loans $ 498,858 $ 521,544 2.875% Convertible senior notes, due 2024 275,000 275,000 2.25% Convertible senior notes, due 2024 50,000 50,000 Other notes payable 10,135 14,001 $ 833,993 $ 860,545 Debt discount and issuance costs (29,905 ) (37,660 ) $ 804,088 $ 822,885 Term loans are primarily composed of: • $300.0 million of senior term debt, with a maturity date of June 2024 unless the Convertible senior notes due February 2024 are outstanding as of November 1, 2023, in which case the debt matures on that date. The debt bears a floating interest rate of LIBOR plus 1.5% with principal of $3.75 million paid quarterly in arrears and a balloon payment of $232.5 million due at maturity. An interest rate swap agreement was entered into on 50% of the initial balance to swap the floating interest rate of LIBOR plus 1.5% to a fixed rate of 3.19%. The principal balance as of August 31, 2020 was $288.8 million. • $225.0 million of senior term debt, with a maturity date of September 2023, which is secured by a pool of leased railcars. The debt bears a floating interest rate of LIBOR plus 1.5% with principal of $1.97 million paid quarterly in arrears and a balloon payment of $185.6 million due at maturity. An interest rate swap agreement was entered into on approximately 50% of the initial balance to swap the floating interest rate of LIBOR plus 1.5% to a fixed rate of 4.49%. The principal balance as of August 31, 2020 was $209.3 million • Other term loan with an aggregate balance of $0.8 million as of August 31, 2020 and a maturity date of September 2022 Convertible senior notes, due 2024, bear interest at a fixed rate of 2.875%, paid semi-annually in arrears on February 1 st st Convertible senior notes, due 2024, bear interest at a fixed rate of 2.25%, paid semi-annually in arrears on February 1 st st Other notes payable includes $10.1 million of unsecured debt with maturity dates ranging from September 2020 to August 2025. The notes payable, along with the revolving and operating lines of credit, contain certain covenants with respect to the Company and various subsidiaries, the most restrictive of which, among other things, limit the ability to: incur additional indebtedness or guarantees; pay dividends or repurchase stock; enter into capital leases; create liens; sell assets; engage in transactions with affiliates, including joint ventures and non U.S. subsidiaries, including but not limited to loans, advances, equity investments and guarantees; enter into mergers, consolidations or sales of substantially all the Company’s assets; and enter into new lines of business. The covenants also require certain maximum ratios of debt to total capitalization and minimum levels of fixed charges (interest and rent) coverage. As of August 31, 2020 principal payments on the notes payable are expected as follows: (In thousands) Year ending August 31, 2021 $ 32,375 2022 23,716 2023 23,296 2024 (1) 754,522 2025 84 Thereafter - $ 833,993 (1) The repayment of the $275.0 million of Convertible senior notes due February 2024 and the $50.0 million of Convertible senior notes |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Aug. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 13 — Derivative Instruments Foreign operations give rise to market risks from changes in foreign currency exchange rates. Foreign currency forward exchange contracts with established financial institutions are utilized to hedge a portion of that risk. Interest rate swap agreements are used to reduce the impact of changes in interest rates on certain debt. The Company’s foreign currency forward exchange contracts and interest rate swap agreements are designated as cash flow hedges, and therefore the effective portion of unrealized gains and losses is recorded in accumulated other comprehensive income or loss. At August 31, 2020 exchange rates, notional amounts of forward exchange contracts for the purchase of Polish Zlotys and the sale of Euros aggregated to $48.5 million. The fair value of the contracts is included on the Consolidated Balance Sheets as Accounts payable and accrued liabilities when there is a loss, or as Accounts receivable, net when there is a gain. As the contracts mature at various dates through 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 August 31, 2020 exchange rates, approximately $0.1 million would be reclassified to revenue or cost of revenue in the next year. At August 31, 2020, an interest rate swap agreement maturing in September 2023 had a notional amount of $105.6 million and an interest rate swap agreement maturing June 2024 had a notional amount of $144.4 million. The fair value of the contracts are included on the Consolidated Balance Sheets in Accounts payable and accrued liabilities when there is a loss, or in Accounts receivable, net when there is a gain. As interest expense on the underlying debt is recognized, amounts corresponding to the interest rate swap are reclassified from Accumulated other comprehensive loss and charged or credited to interest expense. At August 31, 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 August 31, August 31, 2020 2019 2020 2019 (In thousands) Balance sheet caption Fair Value Fair Value Balance sheet caption Fair Value Fair Value Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 560 $ 64 Accounts payable and accrued liabilities $ 3 $ 437 Interest rate swap contracts Intangibles and other assets, net — — Accounts payable and accrued liabilities 15,904 10,255 $ 560 $ 64 $ 15,907 $ 10,692 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 22 $ — Accounts payable and accrued liabilities $ — $ 587 The Effect of Derivative Instruments on the Consolidated Statements of Income Derivatives in cash flow hedging relationships Location of gain (loss) recognized in income on derivative Gain (loss) recognized in income on derivatives Years ended August 31, 2020 2019 Foreign forward exchange contract Interest and foreign exchange $ 83 $ 213 Derivatives in cash flow hedging relationships Gain (loss) recognized in OCI on derivatives Years ended August 31, Location of gain (loss) reclassified from accumulated OCI into income Gain (loss) reclassified from accumulated OCI into income Years ended August 31, Location of gain (loss) in income on derivative (amount excluded from effectiveness testing) Gain (loss) recognized on derivative (amount excluded from effectiveness testing) Years ended August 31, 2020 2019 2020 2019 2020 2019 Foreign forward exchange contracts $ 461 $ (1,261 ) Revenue $ (748 ) $ (764 ) Revenue $ 996 $ 1,346 Foreign forward exchange contracts (2,238 ) (421 ) Cost of revenue (2,236 ) (1,030 ) Cost of revenue 513 935 Interest rate swap contracts (8,307 ) (11,582 ) Interest and foreign exchange (2,657 ) (545 ) Interest and foreign exchange — (587 ) $ (10,084 ) $ (13,264 ) $ (5,641 ) $ (2,339 ) $ 1,509 $ 1,694 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 years ended August 31, 2020, 2019 and 2018: For the Years Ended August 31, 2020 2019 2018 (In thousands) Total Amount of gain (loss) on cash flow hedge activity Total Amount of gain (loss) on cash flow hedge activity Total Amount of gain (loss) on cash flow hedge activity Revenue $ 2,792,189 $ (748 ) $ 3,033,591 $ (764 ) $ 2,519,464 $ 1,145 Cost of revenue 2,439,058 (2,236 ) 2,667,105 (1,030 ) 2,110,409 (429 ) Interest and foreign exchange 43,619 (2,657 ) 30,912 (545 ) 29,368 (298 ) |
Equity
Equity | 12 Months Ended |
Aug. 31, 2020 | |
Equity [Abstract] | |
Equity | Note 14 — Equity Stock Incentive Plan The 2014 Amended and Restated Stock Incentive Plan was amended and restated as the 2017 Amended and Restated Stock Incentive Plan on October 24, 2017 and approved by stockholders on January 5, 2018. The stockholders also approved an increase in the total number of shares reserved for issuance by 1,100,000 shares. As a result, the maximum aggregate number of the Company’s common shares authorized for issuance is 5,425,000. The 2017 Amended and Restated Stock Incentive Plan provides for the grant of incentive stock options, non-statutory stock options, restricted shares, restricted stock units and stock appreciation rights. On August 31, 2020 there were 465,636 shares available for grant compared to 849,522 and 1,050,675 shares available for grant as of the years ended August 31, 2019 and 2018, respectively. There are no stock options or stock appreciation rights outstanding as of August 31, 2020. The Company currently grants restricted shares and restricted stock units. Restricted share grants are considered outstanding shares of common stock at the time they are issued. The holders of unvested restricted shares are entitled to voting rights and participation in dividends. Shares associated with restricted stock unit awards are not considered legally outstanding shares of common stock until vested. Restricted stock unit awards, including performance-based awards, are entitled to participate in dividends and these awards are considered participating securities and are considered outstanding for earnings per share purposes when the effect is dilutive. During the years ended August 31, 2020, 2019 and 2018, the Company awarded restricted share and restricted stock unit grants totaling 469,825, 313,540, and 317,036 shares, respectively, which include performance-based grants. As of August 31, 2020, there were a total of 512,021 shares associated with unvested performance-based grants. The actual number of shares that will vest associated with performance-based grants will vary depending on the Company’s performance. Approximately 512,021 additional shares may be granted if performance-based restricted stock unit awards vest at stretch levels of performance. These additional shares are associated with restricted stock unit awards granted during the years ended August 31, 2020, 2019 and 2018. The fair value of awards granted was $14.5 million, $17.4 million, and $15.2 million for the years ended August 31, 2020, 2019 and 2018, respectively. The value, at the date of grant, of stock awarded under restricted share grants and restricted stock unit grants is amortized as compensation expense over the lesser of the vesting period of one to three years or to the recipients eligible retirement date. Compensation expense recognized related to restricted share grants and restricted stock unit grants for the years ended August 31, 2020, 2019 and 2018 was $8.7 million, $12.4 million, and $17.2 million, respectively, and was recorded in Selling and administrative and Cost of revenue on the Consolidated Statements of Income. Unamortized compensation cost related to restricted stock grants was $11.2 million as of August 31, 2020. Total unvested restricted share and restricted stock unit grants were 883,933 and 697,949 as of August 31, 2020 and 2019. The following table summarizes restricted share and restricted stock unit grant transactions for shares, both vested and unvested, under the 2017 Amended and Restated Stock Incentive Plan: Shares Balance at August 31, 2017 (1) 4,091,729 Granted 317,036 Forfeited (34,440 ) Balance at August 31, 2018 (1) 4,374,325 Granted 313,540 Forfeited (112,387 ) Balance at August 31, 2019 (1) 4,575,478 Granted 469,825 Forfeited (85,939 ) Balance at August 31, 2020 (1) 4,959,364 (1) Balance represents cumulative grants net of forfeitures. Share Repurchase Program The Board of Directors has authorized the Company to repurchase shares of the Company’s common stock. The share repurchase program has an expiration date of March 31, 2021 and the amount remaining for repurchase is $100 million. Under the share repurchase program, shares of common stock may be purchased on the open market or through privately negotiated transactions from time to time. The timing and amount of purchases will be based upon market conditions, securities law limitations and other factors. The program may be modified, suspended or discontinued at any time without prior notice. The share repurchase program does not obligate the Company to acquire any specific number of shares in any period. There were no shares repurchased during the years ended August 31, 2020 and 2019. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Aug. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15 — Earnings Per Share The shares used in the computation of the Company’s basic and diluted earnings per common share are reconciled as follows: Years ended August 31, (In thousands) 2020 2019 2018 Weighted average basic common shares outstanding (1) 32,670 32,615 30,857 Dilutive effect of 3.5% Convertible notes (2) n/a n/a 1,821 Dilutive effect of 2.875% Convertible notes (3) — — — Dilutive effect of 2.25% Convertible notes (4) — — n/a Dilutive effect of restricted stock units (5) 771 550 157 Weighted average diluted common shares outstanding 33,441 33,165 32,835 (1) Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. No restricted stock and restricted stock units were anti-dilutive for the years ended August 31, 2020, 2019 and 2018. (2) The dilutive effect of the 3.5% Convertible notes was included as they were considered dilutive under the “if converted” method as further discussed below for the year ended August 31, 2018. The 3.5% Convertible notes matured on April 1, 2018. (3) The 2.875% Convertible notes were issued in February 2017. The dilutive effect of the 2.875% Convertible notes was excluded for the years ended August 31, 2020, 2019 and 2018 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 years ended August 31, 2020 and 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. (5) Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. Diluted EPS is calculated using the more dilutive of two approaches. The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 3.5% Convertible notes during the periods in which they were outstanding. Under the “if converted” method, debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes. The 3.5% Convertible notes were included in the calculation of both approaches using the treasury stock method when the average stock price is greater than the applicable conversion price. Years ended August 31, (In thousands) except per share data 2020 2019 2018 Net earnings attributable to Greenbrier $ 48,967 $ 71,076 $ 151,781 Add back: Interest and debt issuance costs on the 3.5% Convertible notes, net of tax n/a n/a 2,031 Earnings before interest and debt issuance costs on the 3.5% Convertible notes $ 48,967 $ 71,076 $ 153,812 Weighted average diluted common shares outstanding 33,441 33,165 32,835 Diluted earnings per share (1) $ 1.46 $ 2.14 $ 4.68 (1) Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on the 3.5% |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 16 — Related Party Transactions In June 2017, the Company purchased a 40% interest in the common equity of an entity that buys and sells railcar assets that are leased to third parties. The railcars sold to this leasing warehouse are principally built by Greenbrier. The Company accounts for this leasing warehouse investment under the equity method of accounting. As of August 31, 2020, the carrying amount of the investment was $3.6 million which is classified in Investment in unconsolidated affiliates in the Consolidated Balance Sheet. Upon sale of railcars to this entity from Greenbrier, 60% of the related revenue and margin is recognized and 40% is deferred until the railcars are ultimately sold by the entity. The Company recognized $4.7 million, $18.2 million and $15.9 million in revenue associated with railcars sold into the leasing warehouse during the years ended August 31, 2020, 2019 and 2018, respectively. The Company also recognized $5.6 million and $47.8 million with railcars sold out of the leasing warehouse during the years ended August 31, 2019 and 2018, respectively. The Company also provides administrative and remarketing services to this entity and earns management fees for these services which were immaterial for each of the years ended August 31, 2020, 2019 and 2018. The Company has a 41.9% interest in Axis, a joint venture that manufactures and sells axles to its joint venture partners for use and distribution both domestically and internationally in traditional freight railcar markets and other railcar markets. The Company obtained its ownership interest in Axis as part of the acquisition of the manufacturing business of ARI on July 26, 2019. The Company purchased $12.7 million and $1.6 million of railcar components from Axis during the years ended August 31, 2020 and August 31, 2019, respectively. 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 August 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 $3.8 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 year ended August 31, 2020. Mr. Furman is the owner of a private aircraft managed by a private independent management company. From time to time, the Company’s business requires charter use of privately-owned aircraft. In such instances, it is possible that charters may be placed on Mr. Furman’s aircraft. The Company placed charters on Mr. Furman’s aircraft aggregating $0.3 million, $1.5 million and $0.5 million for each of the years ended August 31, 2020, 2019 and 2018, respectively. In July 2014, the Company and Watco Companies LLC completed the formation of GBW, an unconsolidated 50/50 joint venture. The Company accounted for its interest in GBW under the equity method of accounting. On August 20, 2018 the Company entered into an agreement with its joint venture partner to discontinue the GBW railcar repair joint venture. The Company leased real and personal property to GBW with lease revenue totaling approximately $5 million for the year ended August 31, 2018. The Company sold wheel sets and components to GBW which totaled $16.5 million for the year ended August 31, 2018. GBW provided services to the Company which totaled $0.4 million for the year ended August 31, 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 17 — Income Taxes Components of income tax expense were as follows: Years ended August 31, (In thousands) 2020 2019 2018 Current Federal $ 21,040 $ 18,894 $ 28,357 State 785 4,775 3,244 Foreign 25,346 37,391 38,628 47,171 61,060 70,229 Deferred Federal (8,294 ) (8,559 ) (33,459 ) State 688 (2,542 ) (344 ) Foreign 495 (8,433 ) (3,690 ) (7,111 ) (19,534 ) (37,493 ) Change in valuation allowance 124 62 157 Income tax expense $ 40,184 $ 41,588 $ 32,893 Income tax expense was computed using different statutory rates for the fiscal years presented. Due to the 2017 Tax Cuts and Jobs Act (Tax Act) enacted on December 22, 2017, the federal statutory rate was reduced from 35% to 21% effective January 1, 2018. The U.S. federal corporate statutory rates used are 21%, 21% and 25.7% for fiscal years 2020, 2019 and 2018, respectively. The Company recognized the income tax effects of the Tax Act in its financial statements in accordance with Staff Accounting Bulletin No. 118 (SAB 118), which provided guidance for the application of ASC 740, Income Taxes For the year ended August 31, 2020, the Company has estimated the impact of the Tax Act which are effective for tax years 2018 and forward. The most significant item, impacting the Company in 2019, is the global intangible low-taxed income (GILTI) tax. GILTI is not estimated to be material in the current year due to the high-tax exception. The Company has made an accounting policy election to treat the GILTI tax as a current period expense and has included it in the financial statements. In response to the COVID‑19 pandemic, the CARES Act was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the Tax Act. Corporate taxpayers may carryback net operating losses (“NOLs”) originating in 2018 through 2020 for up to five years, which was not previously allowed under the Tax Act. The CARES Act also eliminates the existing limitation on taxable income of 80% by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019, or 2020. Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income, plus business interest income, subject to the existing 30% limit under the Tax Act, for 2019 and 2020. The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the Tax Act. In addition, the CARES Act raises the corporate charitable deduction limit to 25% of taxable income and makes qualified improvement property generally eligible for 15-year cost-recovery and 100% bonus depreciation. With the enactment of the CARES Act, we benefit ed from additional interest and depreciation deductions with the overall benefit being immaterial . The reconciliation between effective and statutory tax rates on operations is as follows: Years ended August 31, 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 25.7 % State income taxes, net of federal benefit 2.0 1.3 0.8 Foreign operations, excluding transition tax 4.5 5.8 1.8 Transition tax on foreign earnings — 0.5 3.1 Remeasurement of domestic deferred taxes — — (15.0 ) Change in valuation allowance 0.1 — 0.1 Noncontrolling interest in flow-through entity (6.1 ) (5.7 ) (2.2 ) Permanent differences 8.9 3.6 2.6 Other 1.8 0.6 (2.2 ) Effective tax rate 32.2 % 27.1 % 14.7 % Earnings before income tax and earnings from unconsolidated affiliates for the years ended August 31, 2020, 2019 and 2018 were $71.2 million, $75.0 million and $110.8 million, respectively, for our domestic U.S. operations and $53.6 million, $78.2 million and $112.8 million, respectively for our foreign operations. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities were as follows: As of August 31, (In thousands) 2020 2019 Deferred tax assets: Accrued payroll and related liabilities $ 20,702 $ 21,978 Deferred revenue 7,943 8,296 Inventories and other 16,974 15,392 Maintenance and warranty accruals 3,044 3,596 Net operating losses 12,247 10,817 Investment, asset tax credits and other 1,576 1,560 62,486 61,639 Valuation allowance (9,195 ) (8,327 ) Deferred tax liabilities: Fixed assets (53,180 ) (56,760 ) Original issue discount (4,992 ) (6,253 ) Intangibles (2,820 ) (2,813 ) Other — (1,432 ) (60,992 ) (67,258 ) Net deferred tax liability $ (7,701 ) $ (13,946 ) As of August 31, 2020 the Company had $1.2 million of state credit carryforwards that will begin to expire in fiscal 2021, $28.8 million of foreign NOL carryforwards that will begin to expire in fiscal 2021 and $25.9 million of foreign NOL carryforwards that do not expire. The Company has placed a valuation allowance of $9.2 million against the deferred tax assets for which no benefit is anticipated, including those for loss and credit carryforwards not likely to be used before their expiration dates or where the possibility of utilization is remote. The net increase in the total valuation allowance on deferred taxes for which no benefit is anticipated was approximately $0.9 million for the year ended August 31, 2020. Prior to 2018 no provision had been made for U.S. income taxes on the Company’s cumulative undistributed earnings from foreign subsidiaries. During fiscal 2018 these earnings were subject to the one-time transition tax on the deemed repatriation of undistributed foreign earnings. Notwithstanding this deemed inclusion in taxable income, any actual repatriation would be accompanied by foreign withholding taxes. The Company does not intend to repatriate these foreign earnings and continues to assert that its foreign earnings are indefinitely reinvested. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Years ended August 31, (In thousands) 2020 2019 2018 Unrecognized Tax Benefit – Opening Balance $ 1,605 $ 1,608 $ 1,820 Gross increases – tax positions in prior period 4,034 — 237 Gross decreases – tax positions in prior period — (3 ) (449 ) Settlements — — — Lapse of statute of limitations (137 ) — — Unrecognized Tax Benefit – Ending Balance $ 5,502 $ 1,605 $ 1,608 The Company is subject to taxation in the U.S. and in various states and foreign jurisdictions. The Company is effectively no longer subject to U.S. Federal examination for fiscal years ending before 2017, to state and local examinations before 2016, or to foreign examinations before 2015. Unrecognized tax benefits, excluding interest, at August 31, 2020 were $5.5 million, which if recognized, would affect the effective tax rate. The unrecognized tax benefits at August 31, 2019 were $1.6 million. Accrued interest on unrecognized tax benefits as of August 31, 2020 was $1.1 million and as of August 31, 2019 was $0.6 million. The Company recorded annual interest expense of approximately $0.4 million for changes in the unrecognized tax benefits during each of the years ended August 31, 2020 and 2019. The Company has not accrued any penalties on the unrecognized tax benefits. Interest and penalties related to income taxes are not classified as a component of income tax expense. Benefits from the realization of unrecognized tax benefits for deductible differences attributable to ordinary operations will be recognized as a reduction of income tax expense. The Company does not anticipate a significant decrease in the reserves for uncertain tax positions during the next twelve months. |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 18 — Segment Information The Company operates in three reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services. Prior to August 20, 2018, the Company operated in four reportable segments: Manufacturing; Wheels & Parts; Leasing & Services; and GBW Joint Venture. On August 20, 2018 the Company entered into an agreement with its joint venture partner to discontinue the GBW railcar repair joint venture, which resulted in 12 repair shops returned to the Company. Beginning on August 20, 2018, the GBW Joint Venture was no longer considered a reportable segment. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Performance is evaluated based on Earnings from operations. Corporate includes selling and administrative costs not directly related to goods and services and certain costs that are intertwined among segments due to our integrated business model. The Company does not allocate Interest and foreign exchange or Income tax expense for either external or internal reporting purposes. Intersegment sales and transfers are valued as if the sales or transfers were to third parties. Related revenue and margin are eliminated in consolidation and therefore are not included in consolidated results in the Company’s Consolidated Financial Statements. The information in the following table is derived directly from the segments’ internal financial reports used for corporate management purposes. The results of operations for the GBW Joint Venture are not reflected in the tables below as the investment was accounted for under the equity method of accounting. For the year ended August 31, 2020 : Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 2,349,971 $ 2,952 $ 2,352,923 $ 197,388 $ 54 $ 197,442 Wheels, Repair & Parts 324,670 12,606 337,276 9,032 (900 ) 8,132 Leasing & Services 117,548 42,728 160,276 40,927 40,655 81,582 Eliminations — (58,286 ) (58,286 ) — (39,809 ) (39,809 ) Corporate — — — (78,918 ) — (78,918 ) $ 2,792,189 $ — $ 2,792,189 $ 168,429 $ — $ 168,429 For the year ended August 31, 2019: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 2,431,499 $ 97,086 $ 2,528,585 $ 217,583 $ 6,370 $ 223,953 Wheels, Repair & Parts 444,502 48,266 492,768 (2,941 ) 902 (2,039 ) Leasing & Services 157,590 28,240 185,830 64,763 25,527 90,290 Eliminations — (173,592 ) (173,592 ) — (32,799 ) (32,799 ) Corporate — — — (95,289 ) — (95,289 ) $ 3,033,591 $ — $ 3,033,591 $ 184,116 $ — $ 184,116 For the year ended August 31, 2018: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 2,044,586 $ 118,157 $ 2,162,743 $ 240,901 $ 17,721 $ 258,622 Wheels, Repair & Parts 347,023 41,494 388,517 16,731 2,748 19,479 Leasing & Services 127,855 11,847 139,702 88,481 10,296 98,777 Eliminations — (171,498 ) (171,498 ) — (30,765 ) (30,765 ) Corporate — — — (93,128 ) — (93,128 ) $ 2,519,464 $ — $ 2,519,464 $ 252,985 $ — $ 252,985 Years ended August 31, (In thousands) 2020 2019 2018 Assets: Manufacturing $ 1,301,715 $ 1,606,571 $ 1,020,757 Wheels, Repair & Parts 271,862 306,725 306,756 Leasing & Services 739,025 708,799 578,818 Unallocated, including cash 861,232 368,542 559,133 $ 3,173,834 $ 2,990,637 $ 2,465,464 Depreciation and amortization: Manufacturing $ 78,010 $ 49,240 $ 44,225 Wheels, Repair & Parts 12,567 13,024 10,771 Leasing & Services 19,273 21,467 19,360 $ 109,850 $ 83,731 $ 74,356 Capital expenditures: Manufacturing $ 48,201 $ 85,155 $ 59,707 Wheels, Repair & Parts 11,662 13,291 5,204 Leasing & Services 7,016 99,787 111,937 $ 66,879 $ 198,233 $ 176,848 The following table summarizes selected geographic information. Years ended August 31, (In thousands) 2020 2019 2018 Revenue (1) U.S. $ 2,018,654 $ 2,115,934 $ 1,840,877 Foreign 773,535 917,657 678,587 $ 2,792,189 $ 3,033,591 $ 2,519,464 Assets: U.S. $ 2,359,332 $ 2,110,864 $ 1,677,144 Mexico 590,790 628,511 517,543 Europe 223,712 251,262 270,777 $ 3,173,834 $ 2,990,637 $ 2,465,464 (1) Revenue is presented on the basis of geographic location of customers. Reconciliation of Earnings from operations to Earnings before income tax and earnings (loss) from unconsolidated affiliates: Years ended August 31, (In thousands) 2020 2019 2018 Earnings from operations $ 168,429 $ 184,116 $ 252,985 Interest and foreign exchange 43,619 30,912 29,368 Earnings before income tax and earnings (loss) from unconsolidated affiliates $ 124,810 $ 153,204 $ 223,617 |
Customer Concentration
Customer Concentration | 12 Months Ended |
Aug. 31, 2020 | |
Risks And Uncertainties [Abstract] | |
Customer Concentration | Note 19 — Customer Concentration Customer concentration is defined as a single customer that accounts for more than 10% of total revenues or accounts receivable. In 2020, revenue from two customers represented 15% and 11% of total revenue. In 2019, revenue from one customer represented 26% of total revenue. In 2018, revenue from two customers represented 20% and 11% of total revenue. No other customers accounted for more than 10% of total revenues for the years ended August 31, 2020, 2019, or 2018. No customer had a balance that individually equaled or exceeded 10% of accounts receivable at August 31, 2020. One customer had a balance that individually equaled or exceeded 10% of accounts receivable and represented 14% of the consolidated accounts receivable balance at August 31, 2019. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Lease Commitments | Note 20 — Lease Commitments Lessor Equipment on operating leases is reported net of accumulated depreciation of $33.4 million, $44.2 million, and $64.9 million as of August 31, 2020, 2019, and 2018 respectively. Depreciation expense was $11.6 million, $13.3 million and $11.2 million as of August 31, 2020, 2019, and 2018 respectively. 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 twelve years. Operating lease rental revenues included in the Company’s Consolidated Statements of Income as of August 31, 2020, 2019, and 2018 was $38.7 million, $44.7 million and $41.4 million respectively, which included $11.2 million, $14.0 million, and $12.8 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 August 31, 2020, will mature as follows: (in thousands) 2021 $ 28,179 2022 24,407 2023 19,580 2024 16,659 2025 9,704 Thereafter 14,556 $ 113,085 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 twelve months ended August 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) Twelve months ended August 31, 2020 Operating lease expense $ 15,256 Short-term lease expense 8,313 Total $ 23,569 In accordance with Topic 840, lease expense was $19.9 million and $16.2 million for August 31, 2019 and 2018 respectively. Aggregate minimum future amounts payable under operating leases having initial or remaining non-cancelable terms at August 31, 2020 will mature as follows: (in thousands) 2021 $ 13,874 2022 12,412 2023 12,036 2024 10,768 2025 6,304 Thereafter 17,481 Total lease payments $ 72,875 Less: Imputed interest (8,366 ) Total lease obligations $ 64,509 Prior to our adoption of Topic 842, the future minimum amounts payable under non-cancelable operating leases as of August 31, 2019 was as follows: (in thousands) 2020 $ 14,299 2021 8,746 2022 5,727 2023 5,157 2024 3,522 Thereafter 10,197 Total lease obligations $ 47,648 The table below presents additional information related to the Company’s leases: Weighted average remaining lease term Operating leases 11.4 years Weighted average discount rate Operating leases 3.2 % Supplemental cash flow information related to leases were as follows: (in thousands) Twelve months ended August 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 15,163 ROU assets obtained in exchange for new operating lease liabilities $ 36,311 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 21 — Commitments and Contingencies Portland Harbor Superfund Site The Company’s Portland, Oregon 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 C ompany 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 , U.S. District Court, District of Oregon, Case #3:09-cv-453-PK. All but 12 of these parties elected to sign tolling agreements and be dismissed without prejudice, and the case has been stayed by the court until January 14, 2022. The EPA's January 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 the Company’s ownership of the Portland Property. 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 the 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 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 it 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 August 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 August 31, 2020, the Company had a $4.5 million note receivable from Amsted-Maxion Cruzeiro, its unconsolidated Brazilian castings and components manufacturer and a $3.8 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. |
Fair Value Measures
Fair Value Measures | 12 Months Ended |
Aug. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures | Note 22 – Fair Value Measures Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value, for this disclosure, is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy which prioritizes the inputs used in measuring a fair value as follows: Level 1 - observable inputs such as unadjusted quoted prices in active markets for identical instruments; Level 2 - inputs, other than the quoted market prices in active markets for similar instruments, which are observable, either directly or indirectly; and Level 3 - unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2020 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 582 $ — $ 582 $ — Nonqualified savings plan investments 35,744 35,744 — — Cash equivalents 203,509 203,509 — — $ 239,835 $ 239,253 $ 582 $ — Liabilities: Derivative financial instruments $ 15,907 $ — $ 15,907 $ — (1) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 13 - Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2019 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 64 $ — $ 64 $ — Nonqualified savings plan investments 27,967 27,967 — — Cash equivalents 68,100 68,100 — — $ 96,131 $ 96,067 $ 64 $ — Liabilities: Derivative financial instruments $ 11,279 $ — $ 11,279 $ — |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Aug. 31, 2020 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 23 – Fair Value of Financial Instruments The estimated fair values of financial instruments and the methods and assumptions used to estimate such fair values are as follows: (In thousands) Carrying Amount 1 Estimated Fair Value (Level 2) Notes payable as of August 31, 2020 $ 832,126 $ 802,324 Notes payable as of August 31, 2019 $ 860,545 $ 838,728 1 The carrying amount of cash and cash equivalents, accounts and notes receivable, revolving notes and accounts payable and accrued liabilities is a reasonable estimate of fair value of these financial instruments. Estimated rates currently available to the Company for debt with similar terms and remaining maturities and current market data are used to estimate the fair value of notes payable. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Aug. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2020 Revenue Manufacturing $ 657,367 $ 489,943 $ 653,007 $ 549,654 $ 2,349,971 Wheels, Repair & Parts 86,608 91,225 82,024 64,813 324,670 Leasing & Services 25,384 42,680 27,526 21,958 117,548 769,359 623,848 762,557 636,425 2,792,189 Cost of revenue Manufacturing 581,912 422,309 562,793 498,155 2,065,169 Wheels, Repair & Parts 81,892 84,373 75,001 60,923 302,189 Leasing & Services 13,366 30,830 17,232 10,272 71,700 677,170 537,512 655,026 569,350 2,439,058 Margin 92,189 86,336 107,531 67,075 353,131 Selling and administrative 54,364 54,597 49,494 46,251 204,706 Net gain on disposition of equipment (3,959 ) (6,697 ) (8,775 ) (573 ) (20,004 ) Earnings from operations 41,784 38,436 66,812 21,397 168,429 Other costs Interest and foreign exchange 12,852 12,609 7,562 10,596 43,619 Earnings before income tax and earnings (loss) from unconsolidated affiliates 28,932 25,827 59,250 10,801 124,810 Income tax expense (5,994 ) (7,463 ) (24,421 ) (2,306 ) (40,184 ) Earnings (loss) from unconsolidated affiliates 1,073 1,651 1,040 (804 ) 2,960 Net earnings 24,011 20,015 35,869 7,691 87,586 Net earnings attributable to noncontrolling interest (16,342 ) (6,386 ) (8,097 ) (7,794 ) (38,619 ) Net earnings (loss) attributable to Greenbrier $ 7,669 $ 13,629 $ 27,772 $ (103 ) $ 48,967 Basic earnings per common share: (1) $ 0.24 $ 0.42 $ 0.85 $ 0.00 $ 1.50 Diluted earnings per common share: (1) $ 0.23 $ 0.41 $ 0.83 $ 0.00 $ 1.46 (1) Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2019 Revenue Manufacturing $ 471,789 $ 476,019 $ 681,588 $ 802,103 $ 2,431,499 Wheels, Repair & Parts 108,543 125,278 124,980 85,701 444,502 Leasing & Services 24,191 57,374 49,584 26,441 157,590 604,523 658,671 856,152 914,245 3,033,591 Cost of revenue Manufacturing 417,805 442,996 590,788 686,036 2,137,625 Wheels, Repair & Parts 100,978 118,455 119,821 81,636 420,890 Leasing & Services 13,207 43,376 38,971 13,036 108,590 531,990 604,827 749,580 780,708 2,667,105 Margin 72,533 53,844 106,572 133,537 366,486 Selling and administrative 50,432 47,892 54,377 60,607 213,308 Net gain on disposition of equipment (14,353 ) (12,102 ) (11,019 ) (3,489 ) (40,963 ) Goodwill impairment — — 10,025 — 10,025 Earnings from operations 36,454 18,054 53,189 76,419 184,116 Other costs Interest and foreign exchange 4,404 9,237 9,770 7,501 30,912 Earnings before income tax and earnings (loss) from unconsolidated affiliates 32,050 8,817 43,419 68,918 153,204 Income tax expense (9,135 ) (2,248 ) (13,008 ) (17,197 ) (41,588 ) Earnings (loss) from unconsolidated affiliates 467 (786 ) (4,564 ) (922 ) (5,805 ) Net earnings 23,382 5,783 25,847 50,799 105,811 Net earnings attributable to noncontrolling interest (5,426 ) (3,018 ) (10,599 ) (15,692 ) (34,735 ) Net earnings attributable to Greenbrier $ 17,956 $ 2,765 $ 15,248 $ 35,107 $ 71,076 Basic earnings per common share: (1) $ 0.55 $ 0.08 $ 0.47 $ 1.08 $ 2.18 Diluted earnings per common share: (1) $ 0.54 $ 0.08 $ 0.46 $ 1.06 $ 2.14 (1) Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2020 | |
Principles of consolidation | Principles of consolidation - The financial statements include the accounts of the Company and its subsidiaries in which it has a controlling interest. All intercompany transactions and balances are eliminated upon consolidation. |
Unclassified balance sheet | Unclassified balance sheet - The balance sheets of the Company are presented in an unclassified format as a result of significant leasing activities for which the current or non-current distinction is not relevant. In addition, the activities of the Manufacturing; Wheels, Repair & Parts; and Leasing & Services segments are so intertwined that in the opinion of management, any attempt to separate the respective balance sheet categories would not be meaningful and may lead to the development of misleading conclusions by the reader. |
Foreign currency translation | Foreign currency translation - Certain operations outside the U.S. prepare financial statements in currencies other than the U.S. Dollar. Revenues and expenses are translated at monthly average exchange rates during the year, while assets and liabilities are translated at year-end exchange rates. Translation adjustments are accumulated as a separate component of equity in other comprehensive income (loss). The net foreign currency translation adjustment balances were $39.8 million, $34.2 million and $21.5 million as of August 31, 2020, 2019 and 2018, respectively. |
Cash and cash equivalents | Cash and cash equivalents - Cash may temporarily be invested primarily in money market funds. All highly-liquid investments with a maturity of three months or less at the date of acquisition are considered cash equivalents. |
Restricted cash | Restricted cash - Restricted cash primarily relates to amounts held to support a target minimum rate of return on certain agreements and a pass through account for activity related to management services provided for certain third party customers. |
Accounts receivable | Accounts receivable - Accounts receivable consists of receivables from customers and receivables from related parties (see Note 16 - Related Party Transactions) and is stated net of allowance for doubtful accounts of $2.7 million and $2.2 million as of August 31, 2020 and 2019, respectively. As of August 31, (In thousands) 2020 2019 2018 Allowance for doubtful accounts Balance at beginning of period $ 2,176 $ 2,701 $ 1,768 Additions, net of reversals 1,661 773 938 Usage (1,291 ) (1,311 ) (54 ) Currency translation effect 124 13 49 Balance at end of period $ 2,670 $ 2,176 $ 2,701 |
Inventories | 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. |
Leased railcars for syndication | Leased railcars for syndication - Leased railcars for syndication consist of newly-built railcars manufactured at one of the Company’s facilities or railcars purchased from third parties, which have been placed on lease to a customer and which the Company intends to sell to an investor with the lease attached. These railcars are generally anticipated to be sold within six months of delivery of the last railcar in a group or six months from when the Company acquires the railcar from a third party and are typically not depreciated during that period as the Company does not believe any economic value of a railcar is lost in the first six months. In the event the railcars are not sold in the first six months, the railcars are either held in Leased railcars for syndication and are depreciated or are transferred to Equipment on operating leases and are depreciated. As of August 31, 2020, Leased railcars for syndication was $107.7 million compared to $182.3 million as of August 31, 2019. |
Equipment on operating leases, net | Equipment on operating leases, net - Equipment on operating leases is stated net of accumulated depreciation. Depreciation to estimated salvage value is provided on the straight-line method over the estimated useful lives of up to forty years. Management periodically reviews salvage value estimates based on current scrap prices and what the Company expects to receive upon disposal. |
Investment in unconsolidated affiliates | Investment in unconsolidated affiliates - Investment in unconsolidated affiliates includes the Company’s interests in certain investees which are accounted for under the equity method of accounting as the Company has determined that the investment provides the Company with the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company has an ownership interest in the voting stock of the investee of at least 20%. Several factors are considered in determining whether the equity method of accounting is appropriate including the relative ownership interests and governance rights of the joint venture partners. As of August 31, 2020, selected investments in unconsolidated affiliates include the Company’s 60% interest in Greenbrier-Maxion, 29.5% interest in Amsted-Maxion Cruzeiro (which owns 40% of Greenbrier-Maxion), 40% interest in Greenbrier Railcar Funding I LLC and 41.9% interest in Axis, LLC. |
Property, plant and equipment | Property, plant and equipment - Property, plant and equipment is stated at cost, net of accumulated depreciation. Depreciation is provided on the straight-line method over estimated useful lives which primarily are as follows: Depreciable Life Buildings and improvements 10 - 30 years Machinery and equipment 3 - 20 years Other 3 - 7 years |
Intangible and other assets, net | Intangible and other assets, net - Intangible assets are recorded when a portion of the purchase price of an acquisition is allocated to assets such as customer contracts and relationships and trade names. Intangible assets with finite lives are amortized using the straight line method over their estimated useful lives which are up to 20 years. Other assets include revolving note fees which are capitalized and amortized as interest expense over the life of the related borrowings. |
Impairment of long-lived assets | Impairment of long-lived assets - When changes in circumstances indicate the carrying amount of certain long-lived assets may not be recoverable, the assets are evaluated for impairment. If the forecasted undiscounted future cash flows are less than the carrying amount of the assets, an impairment charge to reduce the carrying value of the assets to estimated realizable value is recognized in the current period. No impairment of long-lived assets was recorded in the years ended August 31, 2020, 2019 and 2018. |
Goodwill | Goodwill - Goodwill is recorded when the purchase price of an acquisition exceeds the fair market value of the net assets acquired. Goodwill is not amortized and is tested for impairment at least annually and more frequently if indicators of impairment arise. The Company reviews goodwill for impairment annually using either a qualitative assessment or a quantitative goodwill impairment test. If the qualitative assessment is selected and the Company determines that fair value of each reporting unit more likely than not exceeds its carrying value, no further assessment is necessary. For reporting units where the Company performs the quantitative goodwill impairment test an impairment loss is recorded to the extent that the reporting unit’s carrying amount exceeds the reporting unit’s fair value. An impairment loss cannot exceed the total amount of goodwill allocated to the reporting unit. See Note 7 – Goodwill for additional information. |
Warranty accruals | Warranty accruals - Warranty costs are estimated and charged to operations to cover a defined warranty period. The estimated warranty cost is based on 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, are reviewed periodically and updated based on warranty trends. |
Income taxes | Income taxes - The asset and liability method is used to account for income taxes. Deferred income taxes are provided for the temporary effects of differences between assets and liabilities recognized for financial statement and income tax reporting purposes. Valuation allowances reduce deferred tax assets to an amount that will more likely than not be realized. The Company recognizes liabilities for uncertain tax positions based on whether evidence indicates that it is more likely than not that the position will be sustained on audit. The Company reevaluates these uncertain tax positions on a quarterly basis. Changes in tax law or court interpretations may result in the recognition of a tax benefit or an additional charge to the tax provision. |
Deferred revenue | Deferred revenue - Cash payments received prior to meeting revenue recognition criteria are recorded in Deferred revenue. Amounts are reclassified out of Deferred revenue once the revenue recognition criteria have been met. |
Noncontrolling interest and Contingently redeemable noncontrolling interest | Noncontrolling interest and Contingently redeemable noncontrolling interest - The Company has a joint venture with Grupo Industrial Monclova, S.A. (GIMSA) that manufactures new railroad freight cars for the North American marketplace at GIMSA’s existing manufacturing facility located in Frontera, Mexico. Each party owns a 50% interest in the joint venture. The financial results of this operation are consolidated for financial reporting purposes as the Company maintains a controlling interest as evidenced by the right to appoint the majority of the Board of Directors, control over accounting, financing, marketing and engineering and approval and design of products. The noncontrolling interest related to the partner’s 50% interest in the joint venture is included in Noncontrolling interest in the equity section of the Company’s Consolidated Balance Sheet. Greenbrier-Astra Rail was formed in 2017 between the Company’s existing European operations headquartered in Swidnica, Poland and Astra Rail, based in Arad, Romania. Greenbrier-Astra Rail is controlled by the Company with an approximate 75% interest. Astra Rail also received a put option to sell its entire noncontrolling interest to Greenbrier at an exercise price equal to the higher of fair value or a defined EBITDA multiple as measured on the exercise date. The option is exercisable 30 days prior to and up until June 1, 2022. The Company consolidates Greenbrier-Astra Rail for financial reporting purposes and includes the noncontrolling interest in the mezzanine section of the Consolidated Balance Sheet in Contingently redeemable noncontrolling interest. The carrying value of the noncontrolling interest cannot be less than the maximum redemption amount, which is the amount Greenbrier will settle the put option for if exercised. Adjustments to reconcile the carrying value to the maximum redemption amount are recorded to retained earnings. In August 2018, Greenbrier-Astra Rail entered into an agreement to take an approximately 68% ownership stake in Rayvag, a railcar manufacturing company based in Adana, Turkey. Rayvag is controlled by the Company. The Company consolidates Rayvag for financial reporting purposes. The noncontrolling interest related to the partner’s interest is included in Noncontrolling interest in the equity section of the Company’s Consolidated Balance Sheet. Net earnings attributable to noncontrolling interest on the Company’s Consolidated Statement of Income represents the Company’s partners’ share of results from operations. |
Accumulated other comprehensive loss | Accumulated other comprehensive loss – Accumulated other comprehensive loss, net of tax 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 income (loss) before reclassifications (7,304 ) (5,622 ) 749 $ (12,177 ) Amounts reclassified from accumulated other comprehensive loss 4,175 — — $ 4,175 Balance, August 31, 2020 $ (11,970 ) $ (39,816 ) $ (1,031 ) $ (52,817 ) The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with the financial statement caption, were as follows: Year Ended August 31, (In thousands) 2020 2019 Financial Statement Caption (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 2,984 $ 1,794 Revenue and Cost of revenue Interest rate swap contracts 2,657 545 Interest and foreign exchange 5,641 2,339 Total before tax (1,466 ) (485 ) Tax expense $ 4,175 $ 1,854 Net of tax |
Revenue recognition | Revenue recognition – The Company measures revenue at the amounts that reflect the consideration to which it expects to be entitled in exchange for transferring control of goods and services to customers. The Company recognizes revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. Payment terms vary by segment and product type and are generally due within normal commercial terms. The Company’s contracts with customers may include multiple performance obligations (e.g. railcars, maintenance, management services, etc.). For such arrangements, the Company allocates revenues to each performance obligation based on its relative standalone selling price. The Company has disaggregated revenue from contracts with customers into categories which describe the principal activities from which it generates revenues. Manufacturing Railcars are manufactured in accordance with contracts with customers. The Company recognizes revenue upon its customers’ acceptance of the completed railcars at a specified delivery point. From time to time, the Company enters into multi-year supply agreements. Each railcar delivery is considered a distinct performance obligation, such that the amounts that are recognized as revenue following railcar delivery are generally not subject to change. The Company typically recognizes marine vessel manufacturing revenue over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts the Company’s performance in completing the construction of the marine vessel for the customer and is consistent with the percentage of completion method used prior to the adoption of Topic 606. Wheels, Repair & Parts The Company operates a network of wheel, repair and parts shops in North America that provide complete wheelset reconditioning and railcar repair services. Wheels revenue is recognized when wheelsets are shipped to the customer or when consumed by customers in the case of consignment arrangements. Parts revenue is recognized upon shipment of the parts to the customers. Repair revenue is typically recognized over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts the Company’s performance in repairing the railcars for the customer. Repair services are typically completed in less than 90 days. Leasing & Services The Company owns a fleet of new and used cars which are leased to third-party customers. Lease revenue is recognized over the lease-term in the period in which it is earned. Syndication transactions represent new and used railcars which have been placed on lease to a customer and which the Company intends to sell to an investor with the lease attached. At the time of such sale, revenue and cost of revenue associated with railcars that the Company has manufactured are recognized in the Manufacturing segment; while revenue and cost of revenue associated with railcars which were obtained from a third-party with the intent to resell them and subsequently sold, are recognized in Leasing & Services. The Company enters into multi-year contracts to provide management and maintenance services to customers for which revenue is generally recognized on a straight-line basis over the contract term as a stand-ready obligation. Costs to fulfill these contracts are recognized as incurred. |
Interest and foreign exchange | Interest and foreign exchange - Interest and foreign exchange includes foreign exchange transaction gains and losses, amortization of loan fee expense, accretion of debt discounts and external interest expense. Years ended August 31, (In thousands) 2020 2019 2018 Interest and foreign exchange: Interest and other expense $ 42,386 $ 32,260 $ 30,946 Foreign exchange (gain) loss 1,233 (1,348 ) (1,578 ) $ 43,619 $ 30,912 $ 29,368 |
Research and development | Research and development - Research and development costs are expensed as incurred. Research and development costs incurred for new product development during the years ended August 31, 2020, 2019 and 2018 were $5.8 million, $5.4 million and $6.0 million, respectively, included in Selling and administrative expenses. |
Net earnings per share | Net earnings per share - Basic earnings per common share (EPS) includes restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, in weighted average basic common shares outstanding when calculating EPS when the Company is in a net earnings position. Diluted EPS is calculated using the more dilutive of two approaches. The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance-based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the “if converted” effect of the 3.5% Convertible notes during the periods in which they were outstanding. Under the “if converted” method, debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes. The 3.5% Convertible notes are included in the calculation of both approaches using the treasury stock method when the average stock price is greater than the applicable conversion price. |
Stock-based compensation | Stock-based compensation – 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 units, restricted stock and phantom stock units awards. Stock based compensation expense for the years ended August 31, 2020, 2019 and 2018 was $9.0 million, $11.2 million and $29.3 million, respectively and was recorded in Selling and administrative and Cost of revenue on the Consolidated Statements of Income. Restricted stock units and restricted stock awards are accounted for as equity based awards (see Note 14 - Equity). Phantom stock units are accounted for as liability based awards. Phantom Stock Units As of August 31, 2020, there were no phantom stock units outstanding. Compensation expense related to phantom stock unit grants were recorded in Selling and administrative expense and Cost of revenue on the Company’s Consolidated Statements of Income. Compensation expense recognized related to phantom stock units for the year ended August 31, 2020 was $0.3 million. For the year ended August 31, 2019, a $1.2 million benefit was recognized in compensation expense for the re-measurement of phantom stock units due to a lower stock price. Compensation expense recognized related to phantom stock units for the year ended August 31, 2018 was $12.1 million. |
Management estimates | 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, revenues 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. |
Reclassifications | Reclassifications - Certain immaterial reclassifications have been made to the accompanying prior year Consolidated Financial Statements to conform to the current year presentation. |
Initial Adoption of Accounting Policies | Initial Adoption of Accounting Policies Revenue Recognition In the first quarter of 2019, the Company adopted Accounting Standard Update 2014-09, Revenue from Contracts with Customers Lease accounting On September 1, 2019, the Company adopted Accounting Standards Update 2016-02, Leases 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 | 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 Convertible Instruments and Contracts in an Entity’s Own Equity In August 2020, the FASB issued Accounting Standard Update 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Foreign Exchange Contracts | |
Derivatives | Forward exchange contracts - Foreign operations give rise to risks from fluctuations in foreign currency exchange rates. Forward exchange contracts with established financial institutions are used to hedge a portion of such risk. Realized and unrealized gains and losses on effective hedges are deferred in other comprehensive income (loss) and recognized in earnings concurrent with the hedged transaction or when the occurrence of the hedged transaction is no longer considered probable. Ineffectiveness is measured and any gain or loss is recognized in foreign exchange (gain) loss. Even though forward exchange contracts are entered into to mitigate the impact of currency fluctuations, certain exposure remains, which may affect operating results. In addition, there is risk for counterparty non-performance. |
Interest rate swap contracts | |
Derivatives | Interest rate instruments - Interest rate swap agreements are used to reduce the impact of changes in interest rates on certain debt. The net cash amounts paid or received under the agreements are recognized as an adjustment to interest expense. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Allowance for Doubtful Accounts | Accounts receivable - Accounts receivable consists of receivables from customers and receivables from related parties (see Note 16 - Related Party Transactions) and is stated net of allowance for doubtful accounts of $2.7 million and $2.2 million as of August 31, 2020 and 2019, respectively. As of August 31, (In thousands) 2020 2019 2018 Allowance for doubtful accounts Balance at beginning of period $ 2,176 $ 2,701 $ 1,768 Additions, net of reversals 1,661 773 938 Usage (1,291 ) (1,311 ) (54 ) Currency translation effect 124 13 49 Balance at end of period $ 2,670 $ 2,176 $ 2,701 |
Estimated Useful Lives | Depreciation is provided on the straight-line method over estimated useful lives which primarily are as follows: Depreciable Life Buildings and improvements 10 - 30 years Machinery and equipment 3 - 20 years Other 3 - 7 years |
Components of Accumulated Other Comprehensive Loss, Net of Tax | Accumulated other comprehensive loss – Accumulated other comprehensive loss, net of tax 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 income (loss) before reclassifications (7,304 ) (5,622 ) 749 $ (12,177 ) Amounts reclassified from accumulated other comprehensive loss 4,175 — — $ 4,175 Balance, August 31, 2020 $ (11,970 ) $ (39,816 ) $ (1,031 ) $ (52,817 ) |
Amounts Reclassified out of Accumulated Other Comprehensive Loss | The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with the financial statement caption, were as follows: Year Ended August 31, (In thousands) 2020 2019 Financial Statement Caption (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 2,984 $ 1,794 Revenue and Cost of revenue Interest rate swap contracts 2,657 545 Interest and foreign exchange 5,641 2,339 Total before tax (1,466 ) (485 ) Tax expense $ 4,175 $ 1,854 Net of tax |
Interest and Foreign Exchange | Interest and foreign exchange - Interest and foreign exchange includes foreign exchange transaction gains and losses, amortization of loan fee expense, accretion of debt discounts and external interest expense. Years ended August 31, (In thousands) 2020 2019 2018 Interest and foreign exchange: Interest and other expense $ 42,386 $ 32,260 $ 30,946 Foreign exchange (gain) loss 1,233 (1,348 ) (1,578 ) $ 43,619 $ 30,912 $ 29,368 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Contract Balances | The opening and closing balances of the Company’s contract balances are as follows: (in thousands) Balance sheet classification August 31, 2020 August 31, 2019 $ change Contract assets Inventories $ 7,081 $ 10,196 $ (3,115 ) Contract liabilities 1 Deferred revenue $ 27,009 $ 52,118 $ (25,109 ) 1 Contract liabilities balance includes deferred revenue within the scope of Topic 606. |
Summary of Estimated Revenue Related to Performance Obligations Wholly or Partially Unsatisfied | The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods. (in millions) August 31, 2020 Revenue type: Manufacturing – Railcar sales $ 2,053.2 Manufacturing – Marine $ 51.3 Services $ 134.3 Other $ 129.2 Manufacturing – Railcars intended for syndication 1 $ 236.1 1 Not a performance obligation as defined in Topic 606 |
Acquisitions (Tables)
Acquisitions (Tables) - American Railcar Industries | 12 Months Ended |
Aug. 31, 2020 | |
Summary of Fair Value of Assets Acquired and Liabilities | The following table summarizes the fair value of the assets acquired and liabilities assumed at the date of acquisition: (in thousands) Accounts receivable $ 27,659 Inventories 98,053 Property, plant and equipment 225,045 Investments in unconsolidated affiliates 40,314 Intangibles and other assets 36,785 Goodwill 56,659 Total assets acquired 484,515 Total liabilities assumed 67,319 Net assets acquired $ 417,196 |
Schedule of Identified Intangible Assets Assumed In the Acquisition | (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 |
Schedule of Unaudited Pro Forma Financial Information | As of August 31, (In thousands, except per share amounts) 2019 2018 Revenue $ 3,462,255 $ 2,893,400 Net earnings attributable to Greenbrier $ 57,284 $ 137,399 Basic earnings per common share $ 1.76 $ 4.45 Diluted earnings per common share $ 1.73 $ 4.25 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | As of August 31, (In thousands) 2020 2019 Manufacturing supplies and raw materials $ 263,080 $ 387,015 Work-in-process 116,909 156,614 Finished goods 173,761 130,576 Excess and obsolete adjustment (24,221 ) (9,512 ) $ 529,529 $ 664,693 |
Inventory Valuation | As of August 31, (In thousands) 2020 2019 2018 Excess and obsolete adjustment Balance at beginning of period $ 9,512 $ 5,614 $ 4,136 Charge to cost of revenue 17,966 9,734 4,023 Disposition of inventory (3,555 ) (5,651 ) (2,455 ) Currency translation effect 298 (185 ) (90 ) Balance at end of period $ 24,221 $ 9,512 $ 5,614 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | As of August 31, (In thousands) 2020 2019 Land and improvements $ 94,611 $ 87,872 Machinery and equipment 590,992 539,952 Buildings and improvements 376,272 338,639 Construction in progress 49,717 66,744 Other 97,432 90,822 1,209,024 1,124,029 Accumulated depreciation (497,500 ) (406,056 ) $ 711,524 $ 717,973 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Value of Goodwill | Changes in the carrying value of goodwill are as follows: (In thousands) Manufacturing Wheels, Repair & Parts Leasing & Services Total Balance August 31, 2019 $ 86,682 $ 43,265 $ — $ 129,947 Translation and other adjustments 361 — — 361 Balance August 31, 2020 $ 87,043 $ 43,265 $ — $ 130,308 (In thousands) Goodwill Gross goodwill balance before accumulated goodwill impairment losses and other reductions $ 292,858 Accumulated goodwill impairment losses (138,234 ) Accumulated other reductions (24,316 ) Balance August 31, 2020 $ 130,308 |
Intangibles and Other Assets,_2
Intangibles and Other Assets, net (Tables) | 12 Months Ended |
Aug. 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: As of August 31, (In thousands) 2020 2019 Intangible assets subject to amortization: Customer and supplier relationships $ 89,722 $ 89,722 Accumulated amortization (56,509 ) (48,850 ) Other intangibles 37,798 34,031 Accumulated amortization (10,595 ) (6,908 ) 60,416 67,995 Intangible assets not subject to amortization 2,474 5,450 Prepaid and other assets 22,026 15,749 Operating Lease ROU 62,389 — Nonqualified savings plan investments 35,744 27,967 Debt issuance costs, net 3,623 4,568 Assets held for sale 3,650 3,650 $ 190,322 $ 125,379 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | As of August 31, (In thousands) 2020 2019 Trade payables $ 148,971 $ 302,009 Other accrued liabilities 100,168 108,939 Operating lease liabilities 64,509 — Accrued payroll and related liabilities 105,008 106,669 Accrued warranty 45,224 46,678 Income taxes payable — 4,065 $ 463,880 $ 568,360 |
Warranty Accrual (Tables)
Warranty Accrual (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Guarantees And Product Warranties [Abstract] | |
Warranty Accrual Activity | As of August 31, (In thousands) 2020 2019 2018 Balance at beginning of period $ 46,678 $ 27,395 $ 20,737 Charged to cost of revenue 3,984 5,014 12,323 Acquisition — 23,895 — Payments (6,212 ) (8,594 ) (5,217 ) Currency translation effect 774 (1,032 ) (448 ) Balance at end of period $ 45,224 $ 46,678 $ 27,395 |
Notes Payable, net (Tables)
Notes Payable, net (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable, Net | As of August 31, (In thousands) 2020 2019 Term loans $ 498,858 $ 521,544 2.875% Convertible senior notes, due 2024 275,000 275,000 2.25% Convertible senior notes, due 2024 50,000 50,000 Other notes payable 10,135 14,001 $ 833,993 $ 860,545 Debt discount and issuance costs (29,905 ) (37,660 ) $ 804,088 $ 822,885 |
Principal Payments on the Notes Payable | As of August 31, 2020 principal payments on the notes payable are expected as follows: (In thousands) Year ending August 31, 2021 $ 32,375 2022 23,716 2023 23,296 2024 (1) 754,522 2025 84 Thereafter - $ 833,993 (1) The repayment of the $275.0 million of Convertible senior notes due February 2024 and the $50.0 million of Convertible senior notes |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments | Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives August 31, August 31, 2020 2019 2020 2019 (In thousands) Balance sheet caption Fair Value Fair Value Balance sheet caption Fair Value Fair Value Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 560 $ 64 Accounts payable and accrued liabilities $ 3 $ 437 Interest rate swap contracts Intangibles and other assets, net — — Accounts payable and accrued liabilities 15,904 10,255 $ 560 $ 64 $ 15,907 $ 10,692 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 22 $ — Accounts payable and accrued liabilities $ — $ 587 |
Effect of Derivative Instruments on the Statements of Income | The Effect of Derivative Instruments on the Consolidated Statements of Income Derivatives in cash flow hedging relationships Location of gain (loss) recognized in income on derivative Gain (loss) recognized in income on derivatives Years ended August 31, 2020 2019 Foreign forward exchange contract Interest and foreign exchange $ 83 $ 213 Derivatives in cash flow hedging relationships Gain (loss) recognized in OCI on derivatives Years ended August 31, Location of gain (loss) reclassified from accumulated OCI into income Gain (loss) reclassified from accumulated OCI into income Years ended August 31, Location of gain (loss) in income on derivative (amount excluded from effectiveness testing) Gain (loss) recognized on derivative (amount excluded from effectiveness testing) Years ended August 31, 2020 2019 2020 2019 2020 2019 Foreign forward exchange contracts $ 461 $ (1,261 ) Revenue $ (748 ) $ (764 ) Revenue $ 996 $ 1,346 Foreign forward exchange contracts (2,238 ) (421 ) Cost of revenue (2,236 ) (1,030 ) Cost of revenue 513 935 Interest rate swap contracts (8,307 ) (11,582 ) Interest and foreign exchange (2,657 ) (545 ) Interest and foreign exchange — (587 ) $ (10,084 ) $ (13,264 ) $ (5,641 ) $ (2,339 ) $ 1,509 $ 1,694 |
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 years ended August 31, 2020, 2019 and 2018: For the Years Ended August 31, 2020 2019 2018 (In thousands) Total Amount of gain (loss) on cash flow hedge activity Total Amount of gain (loss) on cash flow hedge activity Total Amount of gain (loss) on cash flow hedge activity Revenue $ 2,792,189 $ (748 ) $ 3,033,591 $ (764 ) $ 2,519,464 $ 1,145 Cost of revenue 2,439,058 (2,236 ) 2,667,105 (1,030 ) 2,110,409 (429 ) Interest and foreign exchange 43,619 (2,657 ) 30,912 (545 ) 29,368 (298 ) |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Stockholders Equity Note [Abstract] | |
Summary of Restricted Stock Share and Restricted Stock Unit Grant Transactions for Shares, both Vested and Unvested | The following table summarizes restricted share and restricted stock unit grant transactions for shares, both vested and unvested, under the 2017 Amended and Restated Stock Incentive Plan: Shares Balance at August 31, 2017 (1) 4,091,729 Granted 317,036 Forfeited (34,440 ) Balance at August 31, 2018 (1) 4,374,325 Granted 313,540 Forfeited (112,387 ) Balance at August 31, 2019 (1) 4,575,478 Granted 469,825 Forfeited (85,939 ) Balance at August 31, 2020 (1) 4,959,364 (1) Balance represents cumulative grants net of forfeitures. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Aug. 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 the Company’s basic and diluted earnings per common share are reconciled as follows: Years ended August 31, (In thousands) 2020 2019 2018 Weighted average basic common shares outstanding (1) 32,670 32,615 30,857 Dilutive effect of 3.5% Convertible notes (2) n/a n/a 1,821 Dilutive effect of 2.875% Convertible notes (3) — — — Dilutive effect of 2.25% Convertible notes (4) — — n/a Dilutive effect of restricted stock units (5) 771 550 157 Weighted average diluted common shares outstanding 33,441 33,165 32,835 (1) Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. No restricted stock and restricted stock units were anti-dilutive for the years ended August 31, 2020, 2019 and 2018. (2) The dilutive effect of the 3.5% Convertible notes was included as they were considered dilutive under the “if converted” method as further discussed below for the year ended August 31, 2018. The 3.5% Convertible notes matured on April 1, 2018. (3) The 2.875% Convertible notes were issued in February 2017. The dilutive effect of the 2.875% Convertible notes was excluded for the years ended August 31, 2020, 2019 and 2018 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 years ended August 31, 2020 and 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. (5) Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. |
Approach to Calculate Diluted Earning per Share | Years ended August 31, (In thousands) except per share data 2020 2019 2018 Net earnings attributable to Greenbrier $ 48,967 $ 71,076 $ 151,781 Add back: Interest and debt issuance costs on the 3.5% Convertible notes, net of tax n/a n/a 2,031 Earnings before interest and debt issuance costs on the 3.5% Convertible notes $ 48,967 $ 71,076 $ 153,812 Weighted average diluted common shares outstanding 33,441 33,165 32,835 Diluted earnings per share (1) $ 1.46 $ 2.14 $ 4.68 (1) Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on the 3.5% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense of Continuing Operations | Components of income tax expense were as follows: Years ended August 31, (In thousands) 2020 2019 2018 Current Federal $ 21,040 $ 18,894 $ 28,357 State 785 4,775 3,244 Foreign 25,346 37,391 38,628 47,171 61,060 70,229 Deferred Federal (8,294 ) (8,559 ) (33,459 ) State 688 (2,542 ) (344 ) Foreign 495 (8,433 ) (3,690 ) (7,111 ) (19,534 ) (37,493 ) Change in valuation allowance 124 62 157 Income tax expense $ 40,184 $ 41,588 $ 32,893 |
Reconciliation Between Effective and Statutory Tax Rates on Operations | The reconciliation between effective and statutory tax rates on operations is as follows: Years ended August 31, 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 25.7 % State income taxes, net of federal benefit 2.0 1.3 0.8 Foreign operations, excluding transition tax 4.5 5.8 1.8 Transition tax on foreign earnings — 0.5 3.1 Remeasurement of domestic deferred taxes — — (15.0 ) Change in valuation allowance 0.1 — 0.1 Noncontrolling interest in flow-through entity (6.1 ) (5.7 ) (2.2 ) Permanent differences 8.9 3.6 2.6 Other 1.8 0.6 (2.2 ) Effective tax rate 32.2 % 27.1 % 14.7 % |
Tax Effects of Temporary Differences that give rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities were as follows: As of August 31, (In thousands) 2020 2019 Deferred tax assets: Accrued payroll and related liabilities $ 20,702 $ 21,978 Deferred revenue 7,943 8,296 Inventories and other 16,974 15,392 Maintenance and warranty accruals 3,044 3,596 Net operating losses 12,247 10,817 Investment, asset tax credits and other 1,576 1,560 62,486 61,639 Valuation allowance (9,195 ) (8,327 ) Deferred tax liabilities: Fixed assets (53,180 ) (56,760 ) Original issue discount (4,992 ) (6,253 ) Intangibles (2,820 ) (2,813 ) Other — (1,432 ) (60,992 ) (67,258 ) Net deferred tax liability $ (7,701 ) $ (13,946 ) |
Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Years ended August 31, (In thousands) 2020 2019 2018 Unrecognized Tax Benefit – Opening Balance $ 1,605 $ 1,608 $ 1,820 Gross increases – tax positions in prior period 4,034 — 237 Gross decreases – tax positions in prior period — (3 ) (449 ) Settlements — — — Lapse of statute of limitations (137 ) — — Unrecognized Tax Benefit – Ending Balance $ 5,502 $ 1,605 $ 1,608 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 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. The results of operations for the GBW Joint Venture are not reflected in the tables below as the investment was accounted for under the equity method of accounting. For the year ended August 31, 2020 : Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 2,349,971 $ 2,952 $ 2,352,923 $ 197,388 $ 54 $ 197,442 Wheels, Repair & Parts 324,670 12,606 337,276 9,032 (900 ) 8,132 Leasing & Services 117,548 42,728 160,276 40,927 40,655 81,582 Eliminations — (58,286 ) (58,286 ) — (39,809 ) (39,809 ) Corporate — — — (78,918 ) — (78,918 ) $ 2,792,189 $ — $ 2,792,189 $ 168,429 $ — $ 168,429 For the year ended August 31, 2019: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 2,431,499 $ 97,086 $ 2,528,585 $ 217,583 $ 6,370 $ 223,953 Wheels, Repair & Parts 444,502 48,266 492,768 (2,941 ) 902 (2,039 ) Leasing & Services 157,590 28,240 185,830 64,763 25,527 90,290 Eliminations — (173,592 ) (173,592 ) — (32,799 ) (32,799 ) Corporate — — — (95,289 ) — (95,289 ) $ 3,033,591 $ — $ 3,033,591 $ 184,116 $ — $ 184,116 For the year ended August 31, 2018: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 2,044,586 $ 118,157 $ 2,162,743 $ 240,901 $ 17,721 $ 258,622 Wheels, Repair & Parts 347,023 41,494 388,517 16,731 2,748 19,479 Leasing & Services 127,855 11,847 139,702 88,481 10,296 98,777 Eliminations — (171,498 ) (171,498 ) — (30,765 ) (30,765 ) Corporate — — — (93,128 ) — (93,128 ) $ 2,519,464 $ — $ 2,519,464 $ 252,985 $ — $ 252,985 Years ended August 31, (In thousands) 2020 2019 2018 Assets: Manufacturing $ 1,301,715 $ 1,606,571 $ 1,020,757 Wheels, Repair & Parts 271,862 306,725 306,756 Leasing & Services 739,025 708,799 578,818 Unallocated, including cash 861,232 368,542 559,133 $ 3,173,834 $ 2,990,637 $ 2,465,464 Depreciation and amortization: Manufacturing $ 78,010 $ 49,240 $ 44,225 Wheels, Repair & Parts 12,567 13,024 10,771 Leasing & Services 19,273 21,467 19,360 $ 109,850 $ 83,731 $ 74,356 Capital expenditures: Manufacturing $ 48,201 $ 85,155 $ 59,707 Wheels, Repair & Parts 11,662 13,291 5,204 Leasing & Services 7,016 99,787 111,937 $ 66,879 $ 198,233 $ 176,848 |
Summary of Selected Geographic Information | The following table summarizes selected geographic information. Years ended August 31, (In thousands) 2020 2019 2018 Revenue (1) U.S. $ 2,018,654 $ 2,115,934 $ 1,840,877 Foreign 773,535 917,657 678,587 $ 2,792,189 $ 3,033,591 $ 2,519,464 Assets: U.S. $ 2,359,332 $ 2,110,864 $ 1,677,144 Mexico 590,790 628,511 517,543 Europe 223,712 251,262 270,777 $ 3,173,834 $ 2,990,637 $ 2,465,464 (1) Revenue is presented on the basis of geographic location of customers. |
Reconciliation of Earnings from Operations to Earnings Before Income Tax and Earnings (Loss) from Unconsolidated Affiliates | Reconciliation of Earnings from operations to Earnings before income tax and earnings (loss) from unconsolidated affiliates: Years ended August 31, (In thousands) 2020 2019 2018 Earnings from operations $ 168,429 $ 184,116 $ 252,985 Interest and foreign exchange 43,619 30,912 29,368 Earnings before income tax and earnings (loss) from unconsolidated affiliates $ 124,810 $ 153,204 $ 223,617 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Aug. 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 August 31, 2020, will mature as follows: (in thousands) 2021 $ 28,179 2022 24,407 2023 19,580 2024 16,659 2025 9,704 Thereafter 14,556 $ 113,085 |
Components of Operating Lease Costs | The components of operating lease costs were as follows: (in thousands) Twelve months ended August 31, 2020 Operating lease expense $ 15,256 Short-term lease expense 8,313 Total $ 23,569 |
Aggregate Minimum Future Amounts Payable Under Operating Leases | Aggregate minimum future amounts payable under operating leases having initial or remaining non-cancelable terms at August 31, 2020 will mature as follows: (in thousands) 2021 $ 13,874 2022 12,412 2023 12,036 2024 10,768 2025 6,304 Thereafter 17,481 Total lease payments $ 72,875 Less: Imputed interest (8,366 ) Total lease obligations $ 64,509 |
Schedule of Future Minimum Amounts Payable Under Non-Cancelable Operating Leases | Prior to our adoption of Topic 842, the future minimum amounts payable under non-cancelable operating leases as of August 31, 2019 was as follows: (in thousands) 2020 $ 14,299 2021 8,746 2022 5,727 2023 5,157 2024 3,522 Thereafter 10,197 Total lease obligations $ 47,648 |
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 11.4 years Weighted average discount rate Operating leases 3.2 % |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases were as follows: (in thousands) Twelve months ended August 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 15,163 ROU assets obtained in exchange for new operating lease liabilities $ 36,311 |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 12 Months Ended |
Aug. 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 August 31, 2020 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 582 $ — $ 582 $ — Nonqualified savings plan investments 35,744 35,744 — — Cash equivalents 203,509 203,509 — — $ 239,835 $ 239,253 $ 582 $ — Liabilities: Derivative financial instruments $ 15,907 $ — $ 15,907 $ — (1) Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 13 - Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2019 are: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 64 $ — $ 64 $ — Nonqualified savings plan investments 27,967 27,967 — — Cash equivalents 68,100 68,100 — — $ 96,131 $ 96,067 $ 64 $ — Liabilities: Derivative financial instruments $ 11,279 $ — $ 11,279 $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Fair Value Of Financial Instruments [Abstract] | |
Estimated Fair Values of Financial Instruments and Methods and Assumptions Used | The estimated fair values of financial instruments and the methods and assumptions used to estimate such fair values are as follows: (In thousands) Carrying Amount 1 Estimated Fair Value (Level 2) Notes payable as of August 31, 2020 $ 832,126 $ 802,324 Notes payable as of August 31, 2019 $ 860,545 $ 838,728 1 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2020 Revenue Manufacturing $ 657,367 $ 489,943 $ 653,007 $ 549,654 $ 2,349,971 Wheels, Repair & Parts 86,608 91,225 82,024 64,813 324,670 Leasing & Services 25,384 42,680 27,526 21,958 117,548 769,359 623,848 762,557 636,425 2,792,189 Cost of revenue Manufacturing 581,912 422,309 562,793 498,155 2,065,169 Wheels, Repair & Parts 81,892 84,373 75,001 60,923 302,189 Leasing & Services 13,366 30,830 17,232 10,272 71,700 677,170 537,512 655,026 569,350 2,439,058 Margin 92,189 86,336 107,531 67,075 353,131 Selling and administrative 54,364 54,597 49,494 46,251 204,706 Net gain on disposition of equipment (3,959 ) (6,697 ) (8,775 ) (573 ) (20,004 ) Earnings from operations 41,784 38,436 66,812 21,397 168,429 Other costs Interest and foreign exchange 12,852 12,609 7,562 10,596 43,619 Earnings before income tax and earnings (loss) from unconsolidated affiliates 28,932 25,827 59,250 10,801 124,810 Income tax expense (5,994 ) (7,463 ) (24,421 ) (2,306 ) (40,184 ) Earnings (loss) from unconsolidated affiliates 1,073 1,651 1,040 (804 ) 2,960 Net earnings 24,011 20,015 35,869 7,691 87,586 Net earnings attributable to noncontrolling interest (16,342 ) (6,386 ) (8,097 ) (7,794 ) (38,619 ) Net earnings (loss) attributable to Greenbrier $ 7,669 $ 13,629 $ 27,772 $ (103 ) $ 48,967 Basic earnings per common share: (1) $ 0.24 $ 0.42 $ 0.85 $ 0.00 $ 1.50 Diluted earnings per common share: (1) $ 0.23 $ 0.41 $ 0.83 $ 0.00 $ 1.46 (1) Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. Quarterly Results of Operations (Unaudited) (In thousands, except per share amount) First Second Third Fourth Total 2019 Revenue Manufacturing $ 471,789 $ 476,019 $ 681,588 $ 802,103 $ 2,431,499 Wheels, Repair & Parts 108,543 125,278 124,980 85,701 444,502 Leasing & Services 24,191 57,374 49,584 26,441 157,590 604,523 658,671 856,152 914,245 3,033,591 Cost of revenue Manufacturing 417,805 442,996 590,788 686,036 2,137,625 Wheels, Repair & Parts 100,978 118,455 119,821 81,636 420,890 Leasing & Services 13,207 43,376 38,971 13,036 108,590 531,990 604,827 749,580 780,708 2,667,105 Margin 72,533 53,844 106,572 133,537 366,486 Selling and administrative 50,432 47,892 54,377 60,607 213,308 Net gain on disposition of equipment (14,353 ) (12,102 ) (11,019 ) (3,489 ) (40,963 ) Goodwill impairment — — 10,025 — 10,025 Earnings from operations 36,454 18,054 53,189 76,419 184,116 Other costs Interest and foreign exchange 4,404 9,237 9,770 7,501 30,912 Earnings before income tax and earnings (loss) from unconsolidated affiliates 32,050 8,817 43,419 68,918 153,204 Income tax expense (9,135 ) (2,248 ) (13,008 ) (17,197 ) (41,588 ) Earnings (loss) from unconsolidated affiliates 467 (786 ) (4,564 ) (922 ) (5,805 ) Net earnings 23,382 5,783 25,847 50,799 105,811 Net earnings attributable to noncontrolling interest (5,426 ) (3,018 ) (10,599 ) (15,692 ) (34,735 ) Net earnings attributable to Greenbrier $ 17,956 $ 2,765 $ 15,248 $ 35,107 $ 71,076 Basic earnings per common share: (1) $ 0.55 $ 0.08 $ 0.47 $ 1.08 $ 2.18 Diluted earnings per common share: (1) $ 0.54 $ 0.08 $ 0.46 $ 1.06 $ 2.14 (1) Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) | Aug. 20, 2018Segment | Aug. 19, 2018Segment | Aug. 31, 2020SegmentVehicle |
Number of reportable segments | Segment | 3 | 4 | 3 |
Leasing & Services | |||
Number of railcars owned | 8,300 | ||
Number of railcars that get services | 393,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||||||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Nov. 30, 2019 | Sep. 01, 2019 | Sep. 01, 2018 | Aug. 02, 2018 | Aug. 31, 2017 | Jun. 01, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Net foreign currency translation adjustment | $ 39,800,000 | $ 34,200,000 | $ 21,500,000 | ||||||
Allowance for doubtful accounts | 2,670,000 | 2,176,000 | 2,701,000 | $ 1,768,000 | |||||
Leased railcars for syndication | $ 107,671,000 | 182,269,000 | |||||||
Property, Plant and Equipment useful life | 40 years | ||||||||
Impairment of long-lived assets | $ 0 | 0 | 0 | ||||||
Research and development | 5,800,000 | 5,400,000 | 6,000,000 | ||||||
Stock based compensation expense | $ 8,997,000 | 11,153,000 | 29,314,000 | ||||||
Share based compensation, non vested shares outstanding | 512,021 | ||||||||
Increase to retained earnings | $ 885,460,000 | 867,602,000 | |||||||
Operating lease right of use asset | 62,389,000 | ||||||||
Operating lease liability | $ 64,509,000 | ||||||||
Accounting Standards Update 2014-09 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||||||||
Accounting Standards Update 2016-02 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Sep. 1, 2019 | ||||||||
Operating lease right of use asset | $ 40,400,000 | ||||||||
Operating lease liability | 41,600,000 | ||||||||
Accounting Standards Update 2017-12 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Sep. 1, 2019 | ||||||||
Cumulative Effect Adjustment Due to Adoption | Accounting Standards Update 2014-09 | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Increase to retained earnings | $ 5,500,000 | ||||||||
Cumulative Effect Adjustment Due to Adoption | Accounting Standards Update 2016-02 | Deferred Gains Recognised as Earnings | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Increase to retained earnings | $ 4,400,000 | ||||||||
Phantom Stock Units (PSUs) | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Share based compensation, non vested shares outstanding | 0 | ||||||||
Stock compensation expenses | $ 300,000 | $ 1,200,000 | $ 12,100,000 | ||||||
2.875% Convertible Senior Notes | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% | ||||||
2.25% Convertible Senior Notes | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Debt instrument, interest rate | 2.25% | 2.25% | |||||||
3.5% Convertible Senior Notes | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Debt instrument, interest rate | 3.50% | 3.50% | 3.50% | ||||||
Customer Relationships | Maximum | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 20 years | ||||||||
GIMSA | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Interest in joint venture | 50.00% | ||||||||
Greenbrier-Astra Rail | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Ownership percentage by parent | 75.00% | ||||||||
Rayvag | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Interest in joint venture | 68.00% | ||||||||
Greenbrier-Maxion | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of ownership in entity | 60.00% | ||||||||
Amsted-Maxion Cruzeiro | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of ownership in entity | 29.50% | 24.50% | 29.50% | ||||||
Amsted-Maxion Cruzeiro | Greenbrier-Maxion | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of ownership in entity | 40.00% | ||||||||
Greenbrier Railcar Funding I LLC | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of ownership in entity | 40.00% | ||||||||
Axis LLC | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of ownership in entity | 41.90% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Allowance for doubtful accounts | |||
Balance at beginning of period | $ 2,176 | $ 2,701 | $ 1,768 |
Additions, net of reversals | 1,661 | 773 | 938 |
Usage | (1,291) | (1,311) | (54) |
Currency translation effect | 124 | 13 | 49 |
Balance at end of period | $ 2,670 | $ 2,176 | $ 2,701 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated Useful Lives (Detail) | 12 Months Ended |
Aug. 31, 2020 | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 40 years |
Building and improvements | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 10 years |
Building and improvements | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 30 years |
Machinery and Equipment | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 3 years |
Machinery and Equipment | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 20 years |
Other | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 3 years |
Other | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment useful life | 7 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ 1,276,730 |
Ending balance | 1,293,043 |
Unrealized Gain (Loss) on Derivative Financial Instruments | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (8,841) |
Other comprehensive income (loss) before reclassifications | (7,304) |
Amounts reclassified from accumulated other comprehensive loss | 4,175 |
Ending balance | (11,970) |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (34,194) |
Other comprehensive income (loss) before reclassifications | (5,622) |
Ending balance | (39,816) |
Other | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (1,780) |
Other comprehensive income (loss) before reclassifications | 749 |
Ending balance | (1,031) |
Accumulated Other Comprehensive (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (44,815) |
Other comprehensive income (loss) before reclassifications | (12,177) |
Amounts reclassified from accumulated other comprehensive loss | 4,175 |
Ending balance | $ (52,817) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Amounts Reclassified out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Interest and foreign exchange | $ 10,596 | $ 7,562 | $ 12,609 | $ 12,852 | $ 7,501 | $ 9,770 | $ 9,237 | $ 4,404 | $ 43,619 | $ 30,912 | $ 29,368 |
Total before tax | (10,801) | (59,250) | (25,827) | (28,932) | (68,918) | (43,419) | (8,817) | (32,050) | (124,810) | (153,204) | (223,617) |
Tax expense | $ 2,306 | $ 24,421 | $ 7,463 | $ 5,994 | $ 17,197 | $ 13,008 | $ 2,248 | $ 9,135 | 40,184 | 41,588 | $ 32,893 |
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 | 5,641 | 2,339 | |||||||||
Tax expense | (1,466) | (485) | |||||||||
Net of tax | 4,175 | 1,854 | |||||||||
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 | 2,984 | 1,794 | |||||||||
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 | $ 2,657 | $ 545 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Interest and Foreign Exchange (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Accounting Policies [Abstract] | |||||||||||
Interest and other expense | $ 42,386 | $ 32,260 | $ 30,946 | ||||||||
Foreign exchange (gain) loss | 1,233 | (1,348) | (1,578) | ||||||||
Interest and foreign exchange | $ 10,596 | $ 7,562 | $ 12,609 | $ 12,852 | $ 7,501 | $ 9,770 | $ 9,237 | $ 4,404 | $ 43,619 | $ 30,912 | $ 29,368 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | ||
Change In Contract With Customer Asset And Liability [Abstract] | |||
Contract assets | $ 7,081 | $ 10,196 | |
Contract liabilities | [1] | 27,009 | $ 52,118 |
Change in contract assets | (3,115) | ||
Change in contract liabilities | [1] | $ (25,109) | |
[1] | Contract liabilities balance includes deferred revenue within the scope of Topic 606. |
Revenue Recognition - Additiona
Revenue Recognition - Additional information (Detail) $ in Millions | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Revenue From Contract With Customers [Line Items] | |
Revenue recognized from contract with customers liability | $ 28 |
Railcar sales | |
Revenue From Contract With Customers [Line Items] | |
Expected revenue recognized in the reminder of fiscal year | 1,000 |
Services | |
Revenue From Contract With Customers [Line Items] | |
Expected revenue recognized in the reminder of fiscal year | $ 134.3 |
Expected performance percentage | 51.00% |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Estimated Revenue Related to Performance Obligations (Detail) $ in Millions | Aug. 31, 2020USD ($) | |
Railcar sales | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | $ 1,000 | |
Services | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 134.3 | |
Other | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 129.2 | |
Railcars intended for syndication | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 236.1 | [1] |
Manufacturing | Railcar sales | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 2,053.2 | |
Manufacturing | Marine | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | $ 51.3 | |
[1] | Not a performance obligation as defined in Topic 606 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | Jul. 26, 2019USD ($)Railcar | Aug. 31, 2020USD ($) | May 31, 2020USD ($) | Feb. 29, 2020USD ($) | Nov. 30, 2019USD ($) | Aug. 31, 2019USD ($) | May 31, 2019USD ($) | Feb. 28, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 20, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||||||
Revenue | $ 636,425 | $ 762,557 | $ 623,848 | $ 769,359 | $ 914,245 | $ 856,152 | $ 658,671 | $ 604,523 | $ 2,792,189 | $ 3,033,591 | $ 2,519,464 | ||
Loss from operations | 21,397 | 66,812 | 38,436 | 41,784 | 76,419 | 53,189 | 18,054 | 36,454 | 168,429 | 184,116 | 252,985 | ||
Net assets acquired | $ 57,600 | ||||||||||||
2024 Convertible Senior Notes | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Senior term debt | 300,000 | 300,000 | |||||||||||
Manufacturing | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenue | 549,654 | $ 653,007 | $ 489,943 | $ 657,367 | $ 802,103 | $ 681,588 | $ 476,019 | $ 471,789 | 2,349,971 | 2,431,499 | 2,044,586 | ||
Loss from operations | 197,388 | 217,583 | $ 240,901 | ||||||||||
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 | |||||||||||
Net assets acquired | $ 417,196 | ||||||||||||
American Railcar Industries | 2024 Convertible Senior Notes | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Senior term debt | 300,000 | 300,000 | |||||||||||
Convertible senior notes | $ 50,000 | $ 50,000 | |||||||||||
American Railcar Industries | Manufacturing | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenue | 43,000 | ||||||||||||
Loss from operations | $ 1,600 |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Value of Assets Acquired and Liabilities (Detail) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 | Jul. 26, 2019 | Aug. 20, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 130,308 | $ 129,947 | ||
Net assets acquired | $ 57,600 | |||
American Railcar Industries | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 27,659 | |||
Inventories | 98,053 | |||
Property, plant and equipment | 225,045 | |||
Investments in unconsolidated affiliates | 40,314 | |||
Intangibles and other assets | $ 36,431 | 36,785 | ||
Goodwill | 56,659 | |||
Total assets acquired | 484,515 | |||
Total liabilities assumed | 67,319 | |||
Net assets acquired | $ 417,196 |
Acquisitions - Identified Intan
Acquisitions - Identified Intangible Assets (Detail) - American Railcar Industries - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2020 | Jul. 26, 2019 | |
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 | $ 36,785 |
Trademarks and patents | ||
Business Acquisition [Line Items] | ||
Identified intangible assets subject to amortization | $ 19,500 | |
Identified intangible assets subject to amortization,Useful Life | 9 years | |
Customer and supplier relationships | ||
Business Acquisition [Line Items] | ||
Identified intangible assets subject to amortization | $ 16,071 | |
Identified intangible assets subject to amortization,Useful Life | 7 years |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Financial Information (Detail) - American Railcar Industries - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Business Acquisition [Line Items] | ||
Revenue | $ 3,462,255 | $ 2,893,400 |
Net earnings attributable to Greenbrier | $ 57,284 | $ 137,399 |
Basic earnings per common share | $ 1.76 | $ 4.45 |
Diluted earnings per common share | $ 1.73 | $ 4.25 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Manufacturing supplies and raw materials | $ 263,080 | $ 387,015 |
Work-in-process | 116,909 | 156,614 |
Finished goods | 173,761 | 130,576 |
Excess and obsolete adjustment | (24,221) | (9,512) |
Inventories | $ 529,529 | $ 664,693 |
Inventories - Inventory Valuati
Inventories - Inventory Valuation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 9,512 | ||
Balance at end of period | 24,221 | $ 9,512 | |
Inventory Valuation Reserve | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 9,512 | 5,614 | $ 4,136 |
Charge to cost of revenue | 17,966 | 9,734 | 4,023 |
Disposition of inventory | (3,555) | (5,651) | (2,455) |
Currency translation effect | 298 | (185) | (90) |
Balance at end of period | $ 24,221 | $ 9,512 | $ 5,614 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 1,209,024 | $ 1,124,029 |
Accumulated depreciation | (497,500) | (406,056) |
Property, plant and equipment, net | 711,524 | 717,973 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 94,611 | 87,872 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 590,992 | 539,952 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 376,272 | 338,639 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 49,717 | 66,744 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $ 97,432 | $ 90,822 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 86.6 | $ 62.3 | $ 54.5 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Value of Goodwill (Detail) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 129,947 |
Translation and other adjustments | 361 |
Ending balance | 130,308 |
Gross goodwill balance before accumulated goodwill impairment losses and other reductions | 292,858 |
Accumulated goodwill impairment losses | (138,234) |
Accumulated other reductions | (24,316) |
Manufacturing | |
Goodwill [Line Items] | |
Beginning balance | 86,682 |
Translation and other adjustments | 361 |
Ending balance | 87,043 |
Wheels, Repair & Parts | |
Goodwill [Line Items] | |
Beginning balance | 43,265 |
Ending balance | $ 43,265 |
Intangibles and Other Assets,_3
Intangibles and Other Assets, Net - Identifiable Intangible and Other Assets (Detail) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Net, Total | $ 60,416 | $ 67,995 |
Intangible assets not subject to amortization | 2,474 | 5,450 |
Prepaid and other assets | 22,026 | 15,749 |
Operating lease right of use asset | 62,389 | |
Nonqualified savings plan investments | 35,744 | 27,967 |
Debt issuance costs, net | 3,623 | 4,568 |
Assets held for sale | 3,650 | 3,650 |
Total Intangible and other assets, net | 190,322 | 125,379 |
Customer and supplier relationships | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 89,722 | 89,722 |
Accumulated amortization | (56,509) | (48,850) |
Other Intangible Assets | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 37,798 | 34,031 |
Accumulated amortization | $ (10,595) | $ (6,908) |
Intangibles and Other Assets,_4
Intangibles and Other Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 11 | $ 6.3 | $ 5.3 |
Future amortization expense, 2021 | 10.6 | ||
Future amortization expense, 2022 | 7.3 | ||
Future amortization expense, 2023 | 6 | ||
Future amortization expense, 2024 | 6 | ||
Future amortization expense, 2025 | $ 5.7 |
Revolving Notes - Additional In
Revolving Notes - Additional Information (Detail) | 12 Months Ended | |
Aug. 31, 2020USD ($)FacilityCreditFacility | Aug. 31, 2019USD ($) | |
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 85,900,000 | |
Long-term Line of Credit | $ 351,526,000 | $ 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 | $ 733,200,000 | |
Letter of credit facility outstanding amount | 28,700,000 | 24,400,000 |
Borrowings | 275,000,000 | |
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 | $ 68,200,000 | |
Long-term Line of Credit | 16,400,000 | |
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 | 2020-12 | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Maximum | ||
Line of Credit Facility [Line Items] | ||
Line of credit maturity date | 2022-09 | |
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 | $ 65,000,000 | |
Letter of credit facility outstanding amount | 30,000,000 | |
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 | 2024-06 | |
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 | $ 35,000,000 | |
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 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 |
Payables And Accruals [Abstract] | ||||
Trade payables | $ 148,971 | $ 302,009 | ||
Other accrued liabilities | 100,168 | 108,939 | ||
Operating lease liability | 64,509 | |||
Accrued payroll and related liabilities | 105,008 | 106,669 | ||
Accrued warranty | 45,224 | 46,678 | $ 27,395 | $ 20,737 |
Income taxes payable | 4,065 | |||
Accounts payable and accrued liabilities | $ 463,880 | $ 568,360 |
Warranty Accrual - Warranty Acc
Warranty Accrual - Warranty Accrual Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Guarantees And Product Warranties [Abstract] | |||
Balance at beginning of period | $ 46,678 | $ 27,395 | $ 20,737 |
Charged to cost of revenue | 3,984 | 5,014 | 12,323 |
Acquisition | 23,895 | ||
Payments | (6,212) | (8,594) | (5,217) |
Currency translation effect | 774 | (1,032) | (448) |
Balance at end of period | $ 45,224 | $ 46,678 | $ 27,395 |
Notes Payable, Net - Notes Paya
Notes Payable, Net - Notes Payable, Net (Detail) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Debt Instrument [Line Items] | ||
Term loans | $ 498,858 | $ 521,544 |
Other notes payable | 10,135 | 14,001 |
Notes payable, gross | 833,993 | 860,545 |
Debt discount and issuance costs | (29,905) | (37,660) |
Notes payable, net | 804,088 | 822,885 |
2.875% Convertible senior notes, due 2024 | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | 275,000 | 275,000 |
2.25% Convertible senior notes, due 2024 | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | $ 50,000 | $ 50,000 |
Notes Payable, Net - Additional
Notes Payable, Net - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Debt Instrument [Line Items] | |||
Debt instrument amount outstanding | $ 833,993 | $ 860,545 | |
Debt issuance costs | 3,623 | $ 4,568 | |
Other Term Loan Due September 2022 | |||
Debt Instrument [Line Items] | |||
Senior term debt | 800 | ||
Other Term Loan Due September 2020 to August 2025 | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 10,100 | ||
2024 Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior term debt | $ 300,000 | ||
Debt instrument, maturity month and year | 2024-06 | ||
Periodic Principal Payment | $ 3,750 | ||
Balloon payment | $ 232,500 | ||
Swap agreement interest rate | 50.00% | ||
Fixed interest rate | 3.19% | ||
Debt instrument amount outstanding | $ 288,800 | ||
2024 Convertible Senior Notes | LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument, percentage points added to the reference rate | 1.50% | ||
2023 Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior term debt | $ 225,000 | ||
Debt instrument, maturity month and year | 2023-09 | ||
Periodic Principal Payment | $ 1,970 | ||
Balloon payment | $ 185,600 | ||
Swap agreement interest rate | 50.00% | ||
Fixed interest rate | 4.49% | ||
Debt instrument amount outstanding | $ 209,300 | ||
2023 Convertible Senior Notes | LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument, percentage points added to the reference rate | 1.50% | ||
2.875% Convertible senior notes, due 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% |
Description of long term debt | Convertible senior notes, due 2024, bear interest at a fixed rate of 2.875%, paid semi-annually in arrears on February 1st and August 1st. | ||
Debt instrument, maturity date | Feb. 1, 2024 | ||
Frequency of payments | semi-annually | ||
Convertible notes initial conversion rate, shares per $1,000 principal amount | 0.166234 | ||
Convertible notes conversion rate, per share | $ 60.16 | ||
Initial debt discount | $ 33,100 | ||
Debt issuance costs | $ 8,000 | ||
Number of shares reserved for future issuance | 6.3 | ||
2.875% Convertible senior notes, due 2024 | ASC 470-20 | |||
Debt Instrument [Line Items] | |||
Convertible notes, fair value | $ 241,900 | ||
Proceeds from the issuance of the notes | 275,000 | ||
Convertible notes, equity component | 33,100 | $ 33,100 | |
2.875% Convertible senior notes, due 2024 | ASC 470-20 | Additional Paid-in Capital | |||
Debt Instrument [Line Items] | |||
Convertible senior notes - equity component, net of tax | $ 12,300 | $ 12,300 | |
2.875% Convertible senior notes, due 2024 | ASC 470-20 | Measurement Input, Risk Free Interest Rate | |||
Debt Instrument [Line Items] | |||
Fair value assumed, interest rate | 0.05 | ||
2.25% Convertible senior notes, due 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.25% | 2.25% | |
Description of long term debt | Convertible senior notes, due 2024, bear interest at a fixed rate of 2.25%, paid semi-annually in arrears on February 1st and August 1st. | ||
Debt instrument, maturity date | Jul. 26, 2024 | ||
Frequency of payments | semi-annually | ||
Convertible notes initial conversion rate, shares per $1,000 principal amount | 0.221910 | ||
Convertible notes conversion rate, per share | $ 45.06 | ||
Initial debt discount | $ 4,900 | ||
Number of shares reserved for future issuance | 1.5 | ||
2.25% Convertible senior notes, due 2024 | ASC 470-20 | |||
Debt Instrument [Line Items] | |||
Convertible notes, fair value | $ 45,100 | ||
Proceeds from the issuance of the notes | 50,000 | ||
Convertible notes, equity component | 4,900 | $ 4,900 | |
2.25% Convertible senior notes, due 2024 | ASC 470-20 | Additional Paid-in Capital | |||
Debt Instrument [Line Items] | |||
Convertible senior notes - equity component, net of tax | $ 1,200 | $ 1,200 | |
2.25% Convertible senior notes, due 2024 | ASC 470-20 | Measurement Input, Risk Free Interest Rate | |||
Debt Instrument [Line Items] | |||
Fair value assumed, interest rate | 0.05 |
Notes Payable, Net - Principal
Notes Payable, Net - Principal Payments on Notes Payable (Detail) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |||
2021 | $ 32,375 | ||
2022 | 23,716 | ||
2023 | 23,296 | ||
2024 | [1] | 754,522 | |
2025 | 84 | ||
Notes payable, gross | $ 833,993 | $ 860,545 | |
[1] | The repayment of the $275.0 million of Convertible senior notes due February 2024 and the $50.0 million of Convertible senior notes |
Notes Payable, Net - Principa_2
Notes Payable, Net - Principal Payments on Notes Payable (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Aug. 31, 2020USD ($) | |
2024 Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument, redemption, description | The repayment of the $275.0 million of Convertible senior notes due February 2024 and the $50.0 million of Convertible senior notes due July 2024 is assumed to occur at the scheduled maturity in 2024 instead of assuming an earlier conversion by the holders. |
February 2024 Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Convertible senior notes | $ 275 |
July 2024 Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Convertible senior notes | $ 50 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Foreign Exchange Contracts | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 48,500,000 |
Amount reclassified to revenue or cost of revenue in the next year | 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 | $ 105,600,000 |
Maturity date | 2023-09 |
Interest rate swap contracts | Derivatives maturing on June 2024 | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 144,400,000 |
Maturity date | 2024-06 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | $ 15,907 | $ 10,692 |
Designated as Hedging Instrument | Accounts Receivable | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 560 | 64 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | 3 | 437 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 560 | 64 |
Designated as Hedging Instrument | Interest rate swap contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | 15,904 | 10,255 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | $ 587 | |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | $ 22 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on Statements of Income (Detail) - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives | $ (10,084) | $ (13,264) |
Gain (loss) reclassified from accumulated OCI into income | (5,641) | (2,339) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | 1,509 | 1,694 |
Foreign Exchange Forward | Interest and Foreign Exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income on derivatives | 83 | 213 |
Foreign Exchange Forward | Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives | 461 | (1,261) |
Gain (loss) reclassified from accumulated OCI into income | (748) | (764) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | 996 | 1,346 |
Foreign Exchange Forward | Cost Of Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives | (2,238) | (421) |
Gain (loss) reclassified from accumulated OCI into income | (2,236) | (1,030) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | 513 | 935 |
Interest rate swap contracts | Interest and Foreign Exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives | (8,307) | (11,582) |
Gain (loss) reclassified from accumulated OCI into income | $ (2,657) | (545) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | $ (587) |
Derivative Instruments - Effe_2
Derivative Instruments - Effects of Cash Flow Hedges Included in Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Derivative [Line Items] | |||||||||||
Revenue | $ 2,792,189 | $ 3,033,591 | $ 2,519,464 | ||||||||
Cost of revenue | $ 569,350 | $ 655,026 | $ 537,512 | $ 677,170 | $ 780,708 | $ 749,580 | $ 604,827 | $ 531,990 | 2,439,058 | 2,667,105 | 2,110,409 |
Interest and foreign exchange | $ 10,596 | $ 7,562 | $ 12,609 | $ 12,852 | $ 7,501 | $ 9,770 | $ 9,237 | $ 4,404 | 43,619 | 30,912 | 29,368 |
Sales | |||||||||||
Derivative [Line Items] | |||||||||||
Amount of gain (loss) on cash flow hedge activity | (748) | (764) | 1,145 | ||||||||
Cost of Sales | |||||||||||
Derivative [Line Items] | |||||||||||
Amount of gain (loss) on cash flow hedge activity | (2,236) | (1,030) | (429) | ||||||||
Interest and Foreign Exchange | |||||||||||
Derivative [Line Items] | |||||||||||
Amount of gain (loss) on cash flow hedge activity | $ (2,657) | $ (545) | $ (298) |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Jan. 05, 2018 | |
Stockholders Equity Note [Line Items] | ||||
Shares available for grant | 465,636 | 849,522 | 1,050,675 | |
Performance based share based compensation | 469,825 | 313,540 | 317,036 | |
Share based compensation, non vested shares | 512,021 | |||
Additional shares available for grant | 512,021 | |||
Unamortized compensation cost of restricted stock grants | $ 11,200,000 | |||
Share Repurchase Program - 2014 | ||||
Stockholders Equity Note [Line Items] | ||||
Remaining authorized repurchase amount | $ 100,000,000 | |||
Repurchase program expiration date | Mar. 31, 2021 | |||
Repurchase of common stock, shares | 0 | 0 | ||
Selling, Administrative and Cost of Revenue | ||||
Stockholders Equity Note [Line Items] | ||||
Restricted stock compensation expense | $ 8,700,000 | $ 12,400,000 | $ 17,200,000 | |
Unvested Restricted Stock Grants | ||||
Stockholders Equity Note [Line Items] | ||||
Share based compensation, non vested shares | 883,933 | 697,949 | ||
Fair value of awards granted | $ 14,500,000 | $ 17,400,000 | $ 15,200,000 | |
Restricted Stock | Minimum | ||||
Stockholders Equity Note [Line Items] | ||||
Vesting period of compensation expense | 1 year | |||
Restricted Stock | Maximum | ||||
Stockholders Equity Note [Line Items] | ||||
Vesting period of compensation expense | 3 years | |||
2017 Amended and Restated Stock Incentive Plan | ||||
Stockholders Equity Note [Line Items] | ||||
Number of shares reserved for future issuance | 1,100,000 | |||
Maximum aggregate number of common shares authorized for issuance | 5,425,000 |
Equity - Summary of Restricted
Equity - Summary of Restricted Stock Share and Restricted Stock Unit Grant Transactions for Shares, both Vested and Unvested (Detail) - shares | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | ||
Equity [Abstract] | ||||
Beginning Balance | [1] | 4,575,478 | 4,374,325 | 4,091,729 |
Granted | 469,825 | 313,540 | 317,036 | |
Forfeited | (85,939) | (112,387) | (34,440) | |
Ending Balance | [1] | 4,959,364 | 4,575,478 | 4,374,325 |
[1] | Balance represents cumulative grants net of forfeitures. |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share (Detail) - shares shares in Thousands | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | ||
Earnings Per Share Disclosure [Line Items] | ||||
Weighted average basic common shares outstanding | [1] | 32,670 | 32,615 | 30,857 |
Dilutive effect of restricted stock units | [2] | 771 | 550 | 157 |
Weighted average diluted common shares outstanding | 33,441 | 33,165 | 32,835 | |
3.5% Convertible Senior Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Dilutive effect of convertible notes | [3] | 1,821 | ||
2.875% Convertible Senior Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Dilutive effect of convertible notes | [4] | 0 | 0 | 0 |
2.25% Convertible Senior Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Dilutive effect of convertible notes | [5] | 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. No restricted stock and restricted stock units were anti-dilutive for the years ended August 31, 2020, 2019 and 2018 | |||
[2] | Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position. | |||
[3] | The dilutive effect of the 3.5% Convertible notes was included as they were considered dilutive under the “if converted” method as further discussed below for the year ended August 31, 2018. The 3.5% Convertible notes matured on April 1, 2018. | |||
[4] | The 2.875% Convertible notes were issued in February 2017. The dilutive effect of the 2.875% Convertible notes was excluded for the years ended August 31, 2020, 2019 and 2018 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. | |||
[5] | The 2.25% Convertible notes were issued in July 2019. The dilutive effect of the 2.25% Convertible notes was excluded for the years ended August 31, 2020 and 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. |
Earnings Per Share - Reconcil_2
Earnings Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share (Parenthetical) (Detail) - shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Restricted Stock | |||
Earnings Per Share Disclosure [Line Items] | |||
Anti-dilutive shares excluded from calculation | 0 | 0 | 0 |
3.5% Convertible Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 3.50% | 3.50% | 3.50% |
Debt instrument, maturity date | Apr. 1, 2018 | ||
2.875% Convertible Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% |
Debt instrument, maturity date | Feb. 1, 2024 | ||
2.25% Convertible Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.25% | 2.25% | |
Debt instrument, maturity date | Jul. 26, 2024 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 |
3.5% Convertible Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 3.50% | 3.50% | 3.50% |
2.875% Convertible Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% |
2.25% Convertible Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Debt instrument, interest rate | 2.25% | 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 | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | ||||||||||||
Earnings Per Share Diluted [Line Items] | ||||||||||||||||||||||
Net earnings attributable to Greenbrier | $ (103) | $ 27,772 | $ 13,629 | $ 7,669 | $ 35,107 | $ 15,248 | $ 2,765 | $ 17,956 | $ 48,967 | $ 71,076 | $ 151,781 | |||||||||||
Weighted average diluted common shares outstanding | 33,441 | 33,165 | 32,835 | |||||||||||||||||||
Diluted earnings per share | $ 0 | [1] | $ 0.83 | [1] | $ 0.41 | [1] | $ 0.23 | [1] | $ 1.06 | [1] | $ 0.46 | [1] | $ 0.08 | [1] | $ 0.54 | [1] | $ 1.46 | [1],[2] | $ 2.14 | [1],[2] | $ 4.68 | [2] |
3.5% Convertible Senior Notes | ||||||||||||||||||||||
Earnings Per Share Diluted [Line Items] | ||||||||||||||||||||||
Interest and debt issuance costs on the 3.5% Convertible notes, net of tax | $ 2,031 | |||||||||||||||||||||
Earnings before interest and debt issuance costs on the 3.5% Convertible notes | $ 48,967 | $ 71,076 | $ 153,812 | |||||||||||||||||||
[1] | Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. | |||||||||||||||||||||
[2] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on the 3.5% |
Earnings Per Share - Approach_2
Earnings Per Share - Approach to Calculate Diluted Earning Per Share (Parenthetical) (Detail) | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 |
3.5% Convertible Senior Notes | |||
Earnings Per Share Diluted [Line Items] | |||
Debt instrument, interest rate | 3.50% | 3.50% | 3.50% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | |||||
Carrying amount of investment in unconsolidated affiliates | $ 3,600 | ||||
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 | $ 4,700 | $ 18,200 | $ 15,900 | ||
Dividends paid to joint venture partner | 38,969 | 16,879 | 73,033 | ||
Related party expenses | $ 300 | $ 1,500 | 500 | ||
Amsted-Maxion Cruzeiro | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership in entity | 29.50% | 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 | ||||
Greenbrier-Maxion | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership in entity | 60.00% | ||||
Note receivable | $ 3,800 | ||||
GBW Railcar Services LLC | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership in entity | 50.00% | ||||
Related party expenses | 400 | ||||
Related party transaction other revenue | 5,000 | ||||
Sale of wheel sets and components | 16,500 | ||||
Leasing Warehouse | |||||
Related Party Transaction [Line Items] | |||||
Revenue recognize from railcars sold | $ 5,600 | $ 47,800 | |||
Greenbrier | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership in entity | 40.00% | ||||
Axis LLC | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership in entity | 41.90% | ||||
Axis LLC | Railcar Components | |||||
Related Party Transaction [Line Items] | |||||
Purchases of goods from related party | $ 12,700 | $ 1,600 | |||
Joint Venture Agreement | |||||
Related Party Transaction [Line Items] | |||||
Dividends paid to joint venture partner | $ 22,500 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense of Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Current | |||||||||||
Federal | $ 21,040 | $ 18,894 | $ 28,357 | ||||||||
State | 785 | 4,775 | 3,244 | ||||||||
Foreign | 25,346 | 37,391 | 38,628 | ||||||||
Current Income Tax Expense (Benefit), Total | 47,171 | 61,060 | 70,229 | ||||||||
Deferred | |||||||||||
Federal | (8,294) | (8,559) | (33,459) | ||||||||
State | 688 | (2,542) | (344) | ||||||||
Foreign | 495 | (8,433) | (3,690) | ||||||||
Total Deferred Income Tax Expense (Benefit) | (7,111) | (19,534) | (37,493) | ||||||||
Change in valuation allowance | 124 | 62 | 157 | ||||||||
Income tax expense | $ 2,306 | $ 24,421 | $ 7,463 | $ 5,994 | $ 17,197 | $ 13,008 | $ 2,248 | $ 9,135 | $ 40,184 | $ 41,588 | $ 32,893 |
Income Taxes - Additional infor
Income Taxes - Additional information (Detail) - USD ($) | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
Statutory federal corporate tax rate | 21.00% | 21.00% | 25.70% | 35.00% |
Tax benefit due to remeasurement of deferred tax assets and liabilities | $ 33,600,000 | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | $ 8,900,000 | |||
Income tax and earnings from unconsolidated affiliates,Domestic u.s. operations | $ 71,200,000 | 75,000,000 | 110,800,000 | |
Income tax and earnings from unconsolidated affiliates,Foreign operations | 53,600,000 | 78,200,000 | $ 112,800,000 | |
Deferred tax assets, valuation allowance | 9,195,000 | 8,327,000 | ||
Net increase (decrease) in the valuation allowance | 900,000 | |||
Unrecognized tax benefits, excluding interest | 5,500,000 | 1,600,000 | ||
Accrued interest related to uncertain tax provisions | 1,100,000 | 600,000 | ||
Interest expense relating to reserves for uncertain tax provisions | 400,000 | $ 400,000 | ||
Accrued penalties related to uncertain tax provisions | 0 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Credit carryforwards | $ 1,200,000 | |||
Credit carryforwards expiration year | 2021 | |||
Foreign | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 28,800,000 | |||
Operating loss carryforwards expiration year | 2021 | |||
Operating loss carryforwards that do not expire | $ 25,900,000 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Effective and Statutory Tax Rates on Continuing Operations (Detail) | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory rate | 21.00% | 21.00% | 25.70% | 35.00% |
State income taxes, net of federal benefit | 2.00% | 1.30% | 0.80% | |
Foreign operations, excluding transition tax | 4.50% | 5.80% | 1.80% | |
Transition tax on foreign earnings | 0.50% | 3.10% | ||
Remeasurement of domestic deferred taxes | (15.00%) | |||
Change in valuation allowance | 0.10% | 0.10% | ||
Noncontrolling interest in flow-through entity | (6.10%) | (5.70%) | (2.20%) | |
Permanent differences | 8.90% | 3.60% | 2.60% | |
Other | 1.80% | 0.60% | (2.20%) | |
Effective tax rate | 32.20% | 27.10% | 14.70% |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences that give rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Deferred tax assets: | ||
Accrued payroll and related liabilities | $ 20,702 | $ 21,978 |
Deferred revenue | 7,943 | 8,296 |
Inventories and other | 16,974 | 15,392 |
Maintenance and warranty accruals | 3,044 | 3,596 |
Net operating losses | 12,247 | 10,817 |
Investment, asset tax credits and other | 1,576 | 1,560 |
Deferred Tax Assets, Gross, Total | 62,486 | 61,639 |
Valuation allowance | (9,195) | (8,327) |
Deferred tax liabilities: | ||
Fixed assets | (53,180) | (56,760) |
Original issue discount | (4,992) | (6,253) |
Intangibles | (2,820) | (2,813) |
Other | (1,432) | |
Deferred Tax Liabilities, Gross, Total | (60,992) | (67,258) |
Net deferred tax liability | $ (7,701) | $ (13,946) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefit – Opening Balance | $ 1,605 | $ 1,608 | $ 1,820 |
Gross increases – tax positions in prior period | 4,034 | 237 | |
Gross decreases – tax positions in prior period | (3) | (449) | |
Lapse of statute of limitations | (137) | ||
Unrecognized Tax Benefit – Ending Balance | $ 5,502 | $ 1,605 | $ 1,608 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | Aug. 20, 2018SegmentFacility | Aug. 19, 2018Segment | Aug. 31, 2020Segment |
Segment Reporting [Abstract] | |||
Number of reportable segments | Segment | 3 | 4 | 3 |
Number of railcars repair shops returned to business | Facility | 12 |
Segment Information - Segments
Segment Information - Segments Internal Financial Reports (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 636,425 | $ 762,557 | $ 623,848 | $ 769,359 | $ 914,245 | $ 856,152 | $ 658,671 | $ 604,523 | $ 2,792,189 | $ 3,033,591 | $ 2,519,464 |
Earnings (loss) from operations | 21,397 | 66,812 | 38,436 | 41,784 | 76,419 | 53,189 | 18,054 | 36,454 | 168,429 | 184,116 | 252,985 |
Assets | 3,173,834 | 2,990,637 | 3,173,834 | 2,990,637 | 2,465,464 | ||||||
Depreciation and amortization | 109,850 | 83,731 | 74,356 | ||||||||
Capital expenditures | 66,879 | 198,233 | 176,848 | ||||||||
Manufacturing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 549,654 | 653,007 | 489,943 | 657,367 | 802,103 | 681,588 | 476,019 | 471,789 | 2,349,971 | 2,431,499 | 2,044,586 |
Earnings (loss) from operations | 197,388 | 217,583 | 240,901 | ||||||||
Wheels, Repair & Parts | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 64,813 | 82,024 | 91,225 | 86,608 | 85,701 | 124,980 | 125,278 | 108,543 | 324,670 | 444,502 | 347,023 |
Earnings (loss) from operations | 9,032 | (2,941) | 16,731 | ||||||||
Leasing & Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 21,958 | $ 27,526 | $ 42,680 | $ 25,384 | 26,441 | $ 49,584 | $ 57,374 | $ 24,191 | 117,548 | 157,590 | 127,855 |
Earnings (loss) from operations | 40,927 | 64,763 | 88,481 | ||||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings (loss) from operations | (78,918) | (95,289) | (93,128) | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (58,286) | (173,592) | (171,498) | ||||||||
Earnings (loss) from operations | (39,809) | (32,799) | (30,765) | ||||||||
Intersegment Eliminations | Manufacturing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,952 | 97,086 | 118,157 | ||||||||
Earnings (loss) from operations | 54 | 6,370 | 17,721 | ||||||||
Intersegment Eliminations | Wheels, Repair & Parts | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 12,606 | 48,266 | 41,494 | ||||||||
Earnings (loss) from operations | (900) | 902 | 2,748 | ||||||||
Intersegment Eliminations | Leasing & Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 42,728 | 28,240 | 11,847 | ||||||||
Earnings (loss) from operations | 40,655 | 25,527 | 10,296 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings (loss) from operations | (78,918) | (95,289) | (93,128) | ||||||||
Operating Segments | Manufacturing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,352,923 | 2,528,585 | 2,162,743 | ||||||||
Earnings (loss) from operations | 197,442 | 223,953 | 258,622 | ||||||||
Assets | 1,301,715 | 1,606,571 | 1,301,715 | 1,606,571 | 1,020,757 | ||||||
Depreciation and amortization | 78,010 | 49,240 | 44,225 | ||||||||
Capital expenditures | 48,201 | 85,155 | 59,707 | ||||||||
Operating Segments | Wheels, Repair & Parts | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 337,276 | 492,768 | 388,517 | ||||||||
Earnings (loss) from operations | 8,132 | (2,039) | 19,479 | ||||||||
Assets | 271,862 | 306,725 | 271,862 | 306,725 | 306,756 | ||||||
Depreciation and amortization | 12,567 | 13,024 | 10,771 | ||||||||
Capital expenditures | 11,662 | 13,291 | 5,204 | ||||||||
Operating Segments | Leasing & Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 160,276 | 185,830 | 139,702 | ||||||||
Earnings (loss) from operations | 81,582 | 90,290 | 98,777 | ||||||||
Assets | 739,025 | 708,799 | 739,025 | 708,799 | 578,818 | ||||||
Depreciation and amortization | 19,273 | 21,467 | 19,360 | ||||||||
Capital expenditures | 7,016 | 99,787 | 111,937 | ||||||||
Operating Segments | Unallocated, including cash | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 861,232 | $ 368,542 | $ 861,232 | $ 368,542 | $ 559,133 |
Segment Information - Summary o
Segment Information - Summary of Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Revenue | $ 636,425 | $ 762,557 | $ 623,848 | $ 769,359 | $ 914,245 | $ 856,152 | $ 658,671 | $ 604,523 | $ 2,792,189 | $ 3,033,591 | $ 2,519,464 | |
Assets | 3,173,834 | 2,990,637 | 3,173,834 | 2,990,637 | 2,465,464 | |||||||
UNITED STATES | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Revenue | [1] | 2,018,654 | 2,115,934 | 1,840,877 | ||||||||
Assets | 2,359,332 | 2,110,864 | 2,359,332 | 2,110,864 | 1,677,144 | |||||||
Foreign | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Revenue | [1] | 773,535 | 917,657 | 678,587 | ||||||||
Mexico | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Assets | 590,790 | 628,511 | 590,790 | 628,511 | 517,543 | |||||||
Europe | ||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||
Assets | $ 223,712 | $ 251,262 | $ 223,712 | $ 251,262 | $ 270,777 | |||||||
[1] | Revenue is presented on the basis of geographic location of customers. |
Segment Information - Reconcili
Segment Information - Reconciliation of Earnings from Operations to Earnings Before Income Tax and Earnings (Loss) from Unconsolidated Affiliates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Segment Reporting [Abstract] | |||||||||||
Earnings from operations | $ 21,397 | $ 66,812 | $ 38,436 | $ 41,784 | $ 76,419 | $ 53,189 | $ 18,054 | $ 36,454 | $ 168,429 | $ 184,116 | $ 252,985 |
Interest and foreign exchange | 10,596 | 7,562 | 12,609 | 12,852 | 7,501 | 9,770 | 9,237 | 4,404 | 43,619 | 30,912 | 29,368 |
Earnings before income tax and earnings (loss) from unconsolidated affiliates | $ 10,801 | $ 59,250 | $ 25,827 | $ 28,932 | $ 68,918 | $ 43,419 | $ 8,817 | $ 32,050 | $ 124,810 | $ 153,204 | $ 223,617 |
Customer Concentration - Additi
Customer Concentration - Additional Information (Detail) - Customer Concentration Risk | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Sales Revenue, Net | Customer One Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | 26.00% | 20.00% |
Sales Revenue, Net | Customer Two Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | 11.00% | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | |
Accounts Receivable | Customer One Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Lessor and Lessee, Lease, Description [Line Items] | |||
Accumulated depreciation | $ 497,500 | $ 406,056 | |
Depreciation expense | 86,600 | 62,300 | $ 54,500 |
Operating lease rental revenues | $ 38,700 | 44,700 | 41,400 |
Finance lease option to extend | options to extend up to 15 years | ||
Lease expense | 19,900 | 16,200 | |
Car Hire Utilization Arrangements | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Operating lease rental revenues | $ 11,200 | 14,000 | 12,800 |
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 | 12 years | ||
Financing lease remaining lease term | 78 years | ||
Equipment on Operating Lease | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Accumulated depreciation | $ 33,400 | 44,200 | 64,900 |
Depreciation expense | $ 11,600 | $ 13,300 | $ 11,200 |
Lease Commitments - Aggregate M
Lease Commitments - Aggregate Minimum Future Amounts Receivable Under All Non-Cancelable Operating Leases and Subleases (Detail) $ in Thousands | Aug. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 28,179 |
2022 | 24,407 |
2023 | 19,580 |
2024 | 16,659 |
2025 | 9,704 |
Thereafter | 14,556 |
Operating Leases, Future Minimum Payments Receivable, Total | $ 113,085 |
Lease Commitments - Components
Lease Commitments - Components of Operating Lease Costs (Detail) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 15,256 |
Short-term lease expense | 8,313 |
Total | $ 23,569 |
Lease Commitments - Aggregate_2
Lease Commitments - Aggregate Minimum Future Amounts Payable Under Operating Leases (Detail) $ in Thousands | Aug. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 13,874 |
2022 | 12,412 |
2023 | 12,036 |
2024 | 10,768 |
2025 | 6,304 |
Thereafter | 17,481 |
Total lease payments | 72,875 |
Less: Imputed interest | (8,366) |
Total lease obligations | $ 64,509 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Future Minimum Amounts Payable Under Non-Cancelable Operating Leases (Detail) $ in Thousands | Aug. 31, 2019USD ($) |
Lease Commitments [Abstract] | |
2020 | $ 14,299 |
2021 | 8,746 |
2022 | 5,727 |
2023 | 5,157 |
2024 | 3,522 |
Thereafter | 10,197 |
Total lease obligations | $ 47,648 |
Lease Commitments - Additiona_2
Lease Commitments - Additional Information Related to Company's Leases (Detail) | Aug. 31, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term | 11 years 4 months 24 days |
Weighted average discount rate | 3.20% |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Cash Flow Operating Activities Lessee [Abstract] | |
Operating cash flows from operating leases | $ 15,163 |
ROU assets obtained in exchange for new operating lease liabilities | $ 36,311 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jan. 06, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Aug. 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 | 3,800,000 | ||
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 | Aug. 31, 2020 | Aug. 31, 2019 | |
Assets: | |||
Nonqualified savings plan investments | $ 35,744 | $ 27,967 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | 582 | 64 | |
Nonqualified savings plan investments | 35,744 | 27,967 | |
Cash equivalents | 203,509 | 68,100 | |
Assets, Fair Value Disclosure, Total | 239,835 | 96,131 | |
Liabilities: | |||
Derivative financial instruments | 15,907 | 11,279 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Nonqualified savings plan investments | 35,744 | 27,967 | |
Cash equivalents | 203,509 | 68,100 | |
Assets, Fair Value Disclosure, Total | 239,253 | 96,067 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | [1] | 582 | 64 |
Assets, Fair Value Disclosure, Total | [1] | 582 | 64 |
Liabilities: | |||
Derivative financial instruments | [1] | 15,907 | $ 11,279 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||
Liabilities: | |||
Derivative financial instruments | $ 0 | ||
[1] | Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 13 - Derivative Instruments for further discussion. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 | |
Carrying (Reported) Amount, Fair Value Disclosure | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | [1] | $ 832,126 | $ 860,545 |
Estimate of Fair Value, Fair Value Disclosure | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | $ 802,324 | $ 838,728 | |
[1] | Carrying amount disclosed in this table excludes debt discount and debt issuance costs. |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | ||||||||||||
Revenue | ||||||||||||||||||||||
Revenue | $ 636,425 | $ 762,557 | $ 623,848 | $ 769,359 | $ 914,245 | $ 856,152 | $ 658,671 | $ 604,523 | $ 2,792,189 | $ 3,033,591 | $ 2,519,464 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | 569,350 | 655,026 | 537,512 | 677,170 | 780,708 | 749,580 | 604,827 | 531,990 | 2,439,058 | 2,667,105 | 2,110,409 | |||||||||||
Margin | 67,075 | 107,531 | 86,336 | 92,189 | 133,537 | 106,572 | 53,844 | 72,533 | 353,131 | 366,486 | 409,055 | |||||||||||
Selling and administrative | 46,251 | 49,494 | 54,597 | 54,364 | 60,607 | 54,377 | 47,892 | 50,432 | 204,706 | 213,308 | 200,439 | |||||||||||
Net gain on disposition of equipment | (573) | (8,775) | (6,697) | (3,959) | (3,489) | (11,019) | (12,102) | (14,353) | (20,004) | (40,963) | (44,369) | |||||||||||
Earnings from operations | 21,397 | 66,812 | 38,436 | 41,784 | 76,419 | 53,189 | 18,054 | 36,454 | 168,429 | 184,116 | 252,985 | |||||||||||
Other costs | ||||||||||||||||||||||
Interest and foreign exchange | 10,596 | 7,562 | 12,609 | 12,852 | 7,501 | 9,770 | 9,237 | 4,404 | 43,619 | 30,912 | 29,368 | |||||||||||
Earnings before income tax and earnings (loss) from unconsolidated affiliates | 10,801 | 59,250 | 25,827 | 28,932 | 68,918 | 43,419 | 8,817 | 32,050 | 124,810 | 153,204 | 223,617 | |||||||||||
Income tax expense | (2,306) | (24,421) | (7,463) | (5,994) | (17,197) | (13,008) | (2,248) | (9,135) | (40,184) | (41,588) | (32,893) | |||||||||||
Earnings (loss) from unconsolidated affiliates | (804) | 1,040 | 1,651 | 1,073 | (922) | (4,564) | (786) | 467 | 2,960 | (5,805) | (18,661) | |||||||||||
Net earnings | 7,691 | 35,869 | 20,015 | 24,011 | 50,799 | 25,847 | 5,783 | 23,382 | 87,586 | 105,811 | 172,063 | |||||||||||
Net earnings attributable to noncontrolling interest | (7,794) | (8,097) | (6,386) | (16,342) | (15,692) | (10,599) | (3,018) | (5,426) | (38,619) | (34,735) | (20,282) | |||||||||||
Net earnings attributable to Greenbrier | $ (103) | $ 27,772 | $ 13,629 | $ 7,669 | $ 35,107 | $ 15,248 | $ 2,765 | $ 17,956 | $ 48,967 | $ 71,076 | $ 151,781 | |||||||||||
Basic earnings per common share | $ 0 | [1] | $ 0.85 | [1] | $ 0.42 | [1] | $ 0.24 | [1] | $ 1.08 | [1] | $ 0.47 | [1] | $ 0.08 | [1] | $ 0.55 | [1] | $ 1.50 | [1] | $ 2.18 | [1] | $ 4.92 | |
Diluted earnings per common share | $ 0 | [1] | $ 0.83 | [1] | $ 0.41 | [1] | $ 0.23 | [1] | $ 1.06 | [1] | $ 0.46 | [1] | $ 0.08 | [1] | $ 0.54 | [1] | $ 1.46 | [1],[2] | $ 2.14 | [1],[2] | $ 4.68 | [2] |
Goodwill impairment | $ 10,025 | $ 10,025 | ||||||||||||||||||||
Manufacturing | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
Revenue | $ 549,654 | $ 653,007 | $ 489,943 | $ 657,367 | $ 802,103 | 681,588 | $ 476,019 | $ 471,789 | $ 2,349,971 | 2,431,499 | $ 2,044,586 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | 498,155 | 562,793 | 422,309 | 581,912 | 686,036 | 590,788 | 442,996 | 417,805 | 2,065,169 | 2,137,625 | 1,727,407 | |||||||||||
Earnings from operations | 197,388 | 217,583 | 240,901 | |||||||||||||||||||
Wheels, Repair & Parts | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
Revenue | 64,813 | 82,024 | 91,225 | 86,608 | 85,701 | 124,980 | 125,278 | 108,543 | 324,670 | 444,502 | 347,023 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | 60,923 | 75,001 | 84,373 | 81,892 | 81,636 | 119,821 | 118,455 | 100,978 | 302,189 | 420,890 | 318,330 | |||||||||||
Earnings from operations | 9,032 | (2,941) | 16,731 | |||||||||||||||||||
Leasing & Services | ||||||||||||||||||||||
Revenue | ||||||||||||||||||||||
Revenue | 21,958 | 27,526 | 42,680 | 25,384 | 26,441 | 49,584 | 57,374 | 24,191 | 117,548 | 157,590 | 127,855 | |||||||||||
Cost of revenue | ||||||||||||||||||||||
Cost of revenue | $ 10,272 | $ 17,232 | $ 30,830 | $ 13,366 | $ 13,036 | $ 38,971 | $ 43,376 | $ 13,207 | 71,700 | 108,590 | 64,672 | |||||||||||
Earnings from operations | $ 40,927 | $ 64,763 | $ 88,481 | |||||||||||||||||||
[1] | Quarterly amounts may not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. | |||||||||||||||||||||
[2] | Diluted earnings per share was calculated as follows: Earnings before interest and debt issuance costs on the 3.5% |
Quarterly Results of Operatio_4
Quarterly Results of Operations (Unaudited) - Quarterly Results of Operations (Parenthetical) (Detail) | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 |
2.875% Convertible Senior Notes | |||
Quarterly Financial Information [Line Items] | |||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% |
2.25% Convertible Senior Notes | |||
Quarterly Financial Information [Line Items] | |||
Debt instrument, interest rate | 2.25% | 2.25% |