Cover Page
Cover Page - shares | 3 Months Ended | |
Nov. 30, 2020 | Dec. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | THE GREENBRIER COMPANIES, INC. | |
Trading Symbol | GBX | |
Security Exchange Name | NYSE | |
Entity Central Index Key | 0000923120 | |
Current Fiscal Year End Date | --08-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Title of 12(b) Security | Common Stock | |
Entity Common Stock, Shares Outstanding | 32,824,080 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-13146 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | OR | |
Entity Tax Identification Number | 93-0816972 | |
Entity Address, Address Line One | One Centerpointe Drive | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Lake Oswego | |
Entity Address, State or Province | OR | |
Entity Address, Postal Zip Code | 97035 | |
City Area Code | 503 | |
Local Phone Number | 684-7000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 724,547 | $ 833,745 |
Restricted cash | 8,547 | 8,342 |
Accounts receivable, net | 240,668 | 239,597 |
Inventories | 490,282 | 529,529 |
Leased railcars for syndication | 51,087 | 107,671 |
Equipment on operating leases, net | 445,542 | 350,442 |
Property, plant and equipment, net | 696,333 | 711,524 |
Investment in unconsolidated affiliates | 72,254 | 72,354 |
Intangibles and other assets, net | 186,509 | 190,322 |
Goodwill | 130,315 | 130,308 |
Total assets | 3,046,084 | 3,173,834 |
Liabilities and Equity | ||
Revolving notes | 276,248 | 351,526 |
Accounts payable and accrued liabilities | 434,138 | 463,880 |
Deferred income taxes | 10,120 | 7,701 |
Deferred revenue | 36,916 | 42,467 |
Notes payable, net | 797,089 | 804,088 |
Commitments and contingencies (Note 14) | ||
Contingently redeemable noncontrolling interest | 30,711 | 31,117 |
Greenbrier | ||
Preferred stock - without par value; 25,000 shares authorized; none outstanding | ||
Common stock - without par value; 50,000 shares authorized; 32,824 and 32,701 shares outstanding at November 30, 2020 and August 31, 2020 | ||
Additional paid-in capital | 462,498 | 460,400 |
Retained earnings | 866,367 | 885,460 |
Accumulated other comprehensive loss | (48,458) | (52,817) |
Total equity – Greenbrier | 1,280,407 | 1,293,043 |
Noncontrolling interest | 180,455 | 180,012 |
Total equity | 1,460,862 | 1,473,055 |
Liabilities and Equity | $ 3,046,084 | $ 3,173,834 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2020 | Aug. 31, 2020 |
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 | 32,824,000 | 32,701,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | ||
Revenue | |||
Revenue | $ 402,989 | $ 769,359 | |
Cost of revenue | |||
Cost of revenue | 362,318 | 677,170 | |
Margin | 40,671 | 92,189 | |
Selling and administrative expense | 43,707 | 54,364 | |
Net gain on disposition of equipment | (922) | (3,959) | |
Earnings (loss) from operations | (2,114) | 41,784 | |
Other costs | |||
Interest and foreign exchange | 11,103 | 12,852 | |
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates | (13,217) | 28,932 | |
Income tax benefit (expense) | 7,332 | (5,994) | |
Earnings (loss) before earnings (loss) from unconsolidated affiliates | (5,885) | 22,938 | |
Earnings (loss) from unconsolidated affiliates | (744) | 1,073 | |
Net earnings (loss) | (6,629) | 24,011 | |
Net earnings attributable to noncontrolling interest | (3,343) | (16,342) | |
Net earnings (loss) attributable to Greenbrier | $ (9,972) | $ 7,669 | |
Basic earnings (loss) per common share | $ (0.30) | $ 0.24 | |
Diluted earnings (loss) per common share | $ (0.30) | $ 0.23 | |
Weighted average common shares: | |||
Basic | [1] | 32,723 | 32,629 |
Diluted | 32,723 | 33,284 | |
Manufacturing | |||
Revenue | |||
Revenue | $ 308,722 | $ 657,367 | |
Cost of revenue | |||
Cost of revenue | 280,890 | 581,912 | |
Earnings (loss) from operations | 9,686 | 53,143 | |
Wheels, Repair & Parts | |||
Revenue | |||
Revenue | 65,556 | 86,608 | |
Cost of revenue | |||
Cost of revenue | 62,984 | 81,892 | |
Earnings (loss) from operations | (200) | 1,114 | |
Leasing & Services | |||
Revenue | |||
Revenue | 28,711 | 25,384 | |
Cost of revenue | |||
Cost of revenue | 18,444 | 13,366 | |
Earnings (loss) from operations | $ 5,890 | $ 9,777 | |
[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. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||
Net earnings (loss) | $ (6,629) | $ 24,011 | |
Other comprehensive income (loss) | |||
Translation adjustment | 3,867 | (1,583) | |
Reclassification of derivative financial instruments recognized in net earnings (loss) | [1] | 1,241 | 309 |
Unrealized gain (loss) on derivative financial instruments | [2] | (753) | 2,154 |
Other (net of tax effect) | 1 | (463) | |
Other comprehensive income | 4,356 | 417 | |
Comprehensive income (loss) | (2,273) | 24,428 | |
Comprehensive income attributable to noncontrolling interest | (3,340) | (16,336) | |
Comprehensive income (loss) attributable to Greenbrier | $ (5,613) | $ 8,092 | |
[1] | Net of tax effect of $0.4 million and $0.1 million for the three months ended November 30, 2020 and 2019. | ||
[2] | Net of tax effect of nil and $0.5 million for the three months ended November 30, 2020 and 2019. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Reclassification of derivative financial instruments recognized in net earnings (loss), tax | $ 0.4 | $ 0.1 |
Unrealized loss on derivative financial instruments, tax | $ 0.5 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Shares | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect Adjustment Due to Adoption | Accumulated Other Comprehensive (Loss) | Total Equity - Greenbrier | Total Equity - GreenbrierCumulative Effect Adjustment Due to Adoption | Noncontrolling Interest | Equity Excluding Contingently Redeemable Noncontrolling Interest | Equity Excluding Contingently Redeemable Noncontrolling InterestCumulative Effect Adjustment Due to Adoption | Contingently Redeemable Noncontrolling Interest |
Beginning balance at Aug. 31, 2019 | $ 453,943 | $ 867,602 | $ 4,393 | $ (44,815) | $ 1,276,730 | $ 4,393 | $ 164,967 | $ 1,441,697 | $ 4,393 | |||
Beginning balance (in shares) at Aug. 31, 2019 | 32,488 | |||||||||||
Beginning balance at Aug. 31, 2019 | $ 31,564 | |||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | |||||||||
Net earnings (loss) | $ 24,011 | $ 7,669 | $ 7,669 | 16,183 | $ 23,852 | |||||||
Net earnings (loss) | 159 | |||||||||||
Other comprehensive income (loss), net | 417 | 423 | 423 | (6) | 417 | |||||||
Noncontrolling interest adjustments | 1,736 | 1,736 | ||||||||||
Joint venture partner distribution declared | (3,905) | (3,905) | ||||||||||
Consolidation of joint venture | 12,075 | 12,075 | ||||||||||
Restricted stock awards (net of cancellations) | 9,472 | 9,472 | 9,472 | |||||||||
Restricted stock awards (net of cancellations) (in shares) | 108 | |||||||||||
Unamortized restricted stock | (11,341) | (11,341) | (11,341) | |||||||||
Restricted stock amortization | 2,826 | 2,826 | 2,826 | |||||||||
Cash dividends | (8,364) | (8,364) | (8,364) | |||||||||
Ending balance at Nov. 30, 2019 | 454,900 | 871,300 | (44,392) | 1,281,808 | 191,050 | 1,472,858 | ||||||
Ending Balance (in shares) at Nov. 30, 2019 | 32,596 | |||||||||||
Ending Balance at Nov. 30, 2019 | 31,723 | |||||||||||
Beginning balance at Aug. 31, 2020 | $ 1,473,055 | 460,400 | $ 885,460 | $ (509) | (52,817) | $ 1,293,043 | $ (509) | 180,012 | $ 1,473,055 | $ (509) | ||
Beginning balance (in shares) at Aug. 31, 2020 | 32,701 | 32,701 | ||||||||||
Beginning balance at Aug. 31, 2020 | 31,117 | |||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |||||||||
Net earnings (loss) | $ (6,629) | $ (9,972) | $ (9,972) | 3,749 | $ (6,223) | |||||||
Net earnings (loss) | (406) | |||||||||||
Other comprehensive income (loss), net | 4,356 | 4,359 | 4,359 | (3) | 4,356 | |||||||
Noncontrolling interest adjustments | (1,271) | (1,271) | ||||||||||
Joint venture partner distribution declared | (2,032) | (2,032) | ||||||||||
Restricted stock awards (net of cancellations) | 14,196 | 14,196 | 14,196 | |||||||||
Restricted stock awards (net of cancellations) (in shares) | 123 | |||||||||||
Unamortized restricted stock | (16,533) | (16,533) | (16,533) | |||||||||
Restricted stock amortization | 4,435 | 4,435 | 4,435 | |||||||||
Cash dividends | (8,612) | (8,612) | (8,612) | |||||||||
Ending balance at Nov. 30, 2020 | $ 1,460,862 | $ 462,498 | $ 866,367 | $ (48,458) | $ 1,280,407 | $ 180,455 | $ 1,460,862 | |||||
Ending Balance (in shares) at Nov. 30, 2020 | 32,824 | 32,824 | ||||||||||
Ending Balance at Nov. 30, 2020 | $ 30,711 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Equity Excluding Contingently Redeemable Noncontrolling Interest | ||
Cash dividend per share | $ 0.27 | $ 0.25 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Cash flows from operating activities | ||
Net earnings (loss) | $ (6,629) | $ 24,011 |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | ||
Deferred income taxes | 2,338 | (6,515) |
Depreciation and amortization | 26,046 | 29,335 |
Net gain on disposition of equipment | (922) | (3,959) |
Accretion of debt discount | 1,419 | 1,350 |
Stock based compensation expense | 4,435 | 3,157 |
Noncontrolling interest adjustments | (1,271) | 1,736 |
Other | 560 | (391) |
Decrease (increase) in assets: | ||
Accounts receivable, net | (6,377) | 58,488 |
Inventories | 13,404 | (69,662) |
Leased railcars for syndication | 6,222 | (13,132) |
Other assets | 2,224 | (37,304) |
Increase (decrease) in liabilities: | ||
Accounts payable and accrued liabilities | (27,257) | (47,421) |
Deferred revenue | (5,521) | (10,012) |
Net cash provided by (used in) operating activities | 8,671 | (70,319) |
Cash flows from investing activities | ||
Proceeds from sales of assets | 8,691 | 27,463 |
Capital expenditures | (38,604) | (23,216) |
Investments in and advances to / repayments from unconsolidated affiliates | 4,526 | (1,500) |
Cash distribution from unconsolidated affiliates and other | 488 | 4,452 |
Net cash provided by (used in) investing activities | (24,899) | 7,199 |
Cash flows from financing activities | ||
Net change in revolving notes with maturities of 90 days or less | (9,738) | 2,399 |
Proceeds from revolving notes with maturities longer than 90 days | 110,000 | |
Repayments of revolving notes with maturities longer than 90 days | (175,000) | |
Repayments of notes payable | (8,908) | (9,749) |
Debt issuance costs | (4) | |
Dividends | (9,180) | (343) |
Cash distribution to joint venture partner | (2,810) | (4,531) |
Tax payments for net share settlement of restricted stock | (2,337) | (1,870) |
Net cash used in financing activities | (97,973) | (14,098) |
Effect of exchange rate changes | 5,208 | 981 |
Decrease in cash and cash equivalents and restricted cash | (108,993) | (76,237) |
Cash and cash equivalents and restricted cash | ||
Beginning of period | 842,087 | 338,487 |
Cash and cash equivalents and restricted cash, Ending balance | 733,094 | 262,250 |
Balance sheet reconciliation | ||
Cash and cash equivalents | 724,547 | 253,602 |
Restricted cash | 8,547 | 8,648 |
Cash and cash equivalents and restricted cash, Ending balance | 733,094 | 262,250 |
Cash paid during the period for | ||
Interest | 6,347 | 6,601 |
Income taxes, net | 5,203 | 11,692 |
Non-cash activity | ||
Transfer from Leased railcars for syndication and Inventories to Equipment on operating leases, net | 75,677 | 55,626 |
Capital expenditures accrued in Accounts payable and accrued liabilities | 1,831 | 6,888 |
Change in Accounts payable and accrued liabilities associated with dividends declared | (568) | 8,021 |
Conversion of unconsolidated affiliate note receivable to Investment in unconsolidated affiliates | 4,760 | |
Change in Accounts payable and accrued liabilities associated with cash distributions to joint venture partner | $ 778 | $ 626 |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Nov. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Interim Financial Statements | Note 1 – Interim Financial Statements The Condensed Consolidated Financial Statements of The Greenbrier Companies, Inc. and its subsidiaries (Greenbrier or the Company) as of November 30, 2020 and for the three months ended November 30, 2020 and 2019 have been prepared to reflect all adjustments (consisting of normal recurring accruals) that, in the opinion of management, are necessary for a fair presentation of the financial position, operating results and cash flows for the periods indicated. The results of operations for the three months ended November 30, 2020 are not necessarily indicative of the results to be expected for the entire year ending August 31, 2021. Certain notes and other information have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these unaudited financial statements should be read in conjunction with the Consolidated Financial Statements contained in the Company’s 2020 Annual Report on Form 10-K. Management Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires judgment on the part of management to arrive at estimates and assumptions on matters that are inherently uncertain. These estimates may affect the amount of assets, liabilities, revenue and expenses reported in the financial statements and accompanying notes and disclosure of contingent assets and liabilities within the financial statements. Estimates and assumptions are periodically evaluated and may be adjusted in future periods. Actual results could differ from those estimates. Initial Adoption of Accounting Standards Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued Accounting Standard Update 2016-13, Financial Instruments – Credit Losses Prospective Accounting Changes 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 Simplification of Accounting for Income Taxes In December 2019, the FASB issued Accounting Standard Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Nov. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition Contract balances Contract assets primarily consist of unbilled receivables related to marine vessel construction and railcar repair services, for which the respective contracts do not yet permit billing at the reporting date. Contract liabilities primarily consist of customer prepayments for manufacturing, maintenance, and other management-type services, for which the Company has not yet satisfied the related performance obligations. The contract balances are as follows: (in thousands) Balance sheet classification November 30, 2020 August 31, 2020 $ change Contract assets Inventories $ 5,738 $ 7,081 $ (1,343 ) Contract liabilities 1 Deferred revenue $ 30,444 $ 27,009 $ 3,435 1 For the three months ended November 30, 2020, the Company recognized $2.7 million of revenue that was included in Contract liabilities as of August 31, 2020. Performance obligations As of November 30, 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) November 30, 2020 Revenue type: Manufacturing – Railcar sales $ 1,923.0 Manufacturing – Marine $ 66.4 Services $ 127.1 Other $ 60.4 Manufacturing – Railcars intended for syndication 1 $ 237.0 1 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 remaining nine months of 2021 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 50% are expected to be performed through 2025 and the remaining amount through 2037. |
Inventories
Inventories | 3 Months Ended |
Nov. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3 – Inventories Inventories are valued at the lower of cost or net realizable value using the first-in first-out method. Work-in-process includes material, labor and overhead. Finished goods includes completed wheels, parts and railcars not on lease or in transit. The following table summarizes the Company’s inventory balance: (In thousands) November 30, 2020 August 31, 2020 Manufacturing supplies and raw materials $ 255,112 $ 263,080 Work-in-process 103,540 116,909 Finished goods 153,878 173,761 Excess and obsolete adjustment (22,248 ) (24,221 ) $ 490,282 $ 529,529 |
Intangibles and Other Assets, n
Intangibles and Other Assets, net | 3 Months Ended |
Nov. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangibles and Other Assets, net | Note 4 – Intangibles and Other Assets, net Intangible assets that are determined to have finite lives are amortized over their useful lives. Intangible assets with indefinite useful lives are not amortized and are periodically evaluated for impairment. The following table summarizes the Company’s identifiable intangible and other assets balance: (In thousands) November 30, 2020 August 31, 2020 Intangible assets subject to amortization: Customer relationships $ 89,722 $ 89,722 Accumulated amortization (58,419 ) (56,509 ) Other intangibles 39,477 37,798 Accumulated amortization (11,569 ) (10,595 ) 59,211 60,416 Intangible assets not subject to amortization 2,474 2,474 Prepaid and other assets 18,231 22,026 Operating lease ROU assets 58,767 62,389 Nonqualified savings plan investments 39,026 35,744 Revolving notes issuance costs, net 3,387 3,623 Assets held for sale 5,413 3,650 Total Intangible and other assets, net $ 186,509 $ 190,322 Amortization expense was $2.8 million and $2.7 million for the three months ended November 30, 2020 and 2019 respectively. Amortization expense for the years ending August 31, 2021, 2022, 2023, 2024 and 2025 is expected to be $11.5 million, $8.1 million, $6.7 million, $6.6 million and $5.7 million, respectively. |
Revolving Notes
Revolving Notes | 3 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Revolving Notes | Note 5 – Revolving Notes Senior secured credit facilities, consisting of four components, aggregated to $738.2 million as of November 30, 2020. As of November 30, 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 November 30, 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 1.2% 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 $28.0 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 June 2021 through September 2022. As of November 30, 2020, the Company’s Mexican railcar manufacturing operations had three lines of credit totaling $70.0 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. The third line of credit provides up to $5.0 million and matures in September 2022. Advances under this facility bear interest at LIBOR plus 2.95% and are to be used for working capital needs. As of November 30, 2020, outstanding commitments under the senior secured credit facilities consisted of $28.4 million in letters of credit and $210.0 million in borrowings under the North American credit facility, $36.2 million outstanding under the European credit facilities and $30.0 million outstanding under the Mexican credit facilities. As of November 30, 2020, the Company had an aggregate of $85.3 million available to draw down under committed credit facilities. 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. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 3 Months Ended |
Nov. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 6 – Accounts Payable and Accrued Liabilities (In thousands) November 30, 2020 August 31, 2020 Trade payables $ 126,096 $ 148,971 Other accrued liabilities 107,798 100,168 Operating lease liabilities 61,072 64,509 Accrued payroll and related liabilities 93,552 105,008 Accrued warranty 45,620 45,224 $ 434,138 $ 463,880 |
Warranty Accruals
Warranty Accruals | 3 Months Ended |
Nov. 30, 2020 | |
Guarantees And Product Warranties [Abstract] | |
Warranty Accruals | Note 7 – Warranty Accruals Warranty costs are estimated and charged to operations to cover a defined warranty period. The estimated warranty cost is based on the history of warranty claims for each particular product type. For new product types without a warranty history, preliminary estimates are based on historical information for similar product types. The warranty accruals, included in Accounts payable and accrued liabilities on the Consolidated Balance Sheets, are reviewed periodically and updated based on warranty trends and expirations of warranty periods. Warranty accrual activity: Three Months Ended November 30, (In thousands) 2020 2019 Balance at beginning of period $ 45,224 $ 46,678 Charged to cost of revenue, net 1,954 2,378 Payments (1,415 ) (1,999 ) Currency translation effect (143 ) 53 Balance at end of period $ 45,620 $ 47,110 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 8 – Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of tax effect as appropriate, consisted of the following: (In thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Other Accumulated Other Comprehensive Loss Balance, August 31, 2020 $ (11,970 ) $ (39,816 ) $ (1,031 ) $ (52,817 ) Other comprehensive loss before reclassifications (753 ) 3,870 1 3,118 Amounts reclassified from Accumulated other comprehensive loss 1,241 — — 1,241 Balance, November 30, 2020 $ (11,482 ) $ (35,946 ) $ (1,030 ) $ (48,458 ) The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Operations, with financial statement caption, were as follows: Three Months Ended November 30, (In thousands) 2020 2019 Financial Statement Caption (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 1,331 $ 241 Revenue and Cost of revenue Interest rate swap contracts 287 167 Interest and foreign exchange 1,618 408 Total before tax (377 ) (99 ) Income tax expense $ 1,241 $ 309 Net of tax |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 9 – Earnings (Loss) Per Share The shares used in the computation of basic and diluted earnings per common share are reconciled as follows: Three Months Ended November 30, (In thousands) 2020 2019 Weighted average basic common shares outstanding (1) 32,723 32,629 Dilutive effect of 2.875% convertible notes (2)(3) — — Dilutive effect of 2.25% convertible notes (2)(4) — — Dilutive effect of restricted stock units (2)(5) — 655 Weighted average diluted common shares outstanding 32,723 33,284 (1) Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. (2) The dilutive effect of common stock equivalents was excluded from the share calculation for the three months ended November 30, 2020 due to a net loss. ( 3 ) The dilutive effect of the 2.875% convertible notes was excluded for the three months ended November 30, 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. ( 4 ) The dilutive effect of the 2.25 % c onvertible notes was excluded for the three months ended November 30 , 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 treasury stock method associated with shares underlying the 2.875% convertible notes, 2.25% convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. Three Months Ended November 30, 2020 2019 Net earnings (loss) attributable to Greenbrier $ (9,972 ) $ 7,669 Weighted average diluted common shares outstanding 32,723 33,284 Diluted earnings (loss) per share $ (0.30 ) $ 0.23 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Nov. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | Note 10 – Stock Based Compensation The value of stock based compensation awards is amortized as compensation expense from the date of grant through the earlier of the vesting period or in some instances the recipient’s eligible retirement date. Stock based compensation expense consists of restricted stock unit, restricted stock and phantom stock unit awards. Stock based compensation expense was $4.4 million for the three months ended November 30, 2020 and $3.2 million for the three months ended November 30, 2019. Compensation expense is recorded in Selling and administrative expense and Cost of revenue on the Consolidated Statements of Operations. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Nov. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 11 – Derivative Instruments Foreign operations give rise to market risks from changes in foreign currency exchange rates. Foreign currency forward exchange contracts with established financial institutions are utilized to hedge a portion of that risk. Interest rate swap agreements are used to reduce the impact of changes in interest rates on certain debt. The Company’s foreign currency forward exchange contracts and interest rate swap agreements are designated as cash flow hedges, and therefore the effective portion of unrealized gains and losses is recorded in accumulated other comprehensive income or loss. At November 30, 2020 exchange rates, notional amounts of forward exchange contracts for the purchase of Polish Zlotys and the sale of Euros; and the purchase of Mexican Pesos and the sale of U.S. Dollars aggregated to $243.7 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 August 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 November 30, 2020 exchange rates, approximately $0.7 million would be reclassified to revenue or cost of revenue in the next year. At November 30, 2020, an interest rate swap agreement maturing in September 2023 had a notional amount of $104.6 million and an interest rate swap agreement maturing June 2024 had a notional amount of $142.5 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 November 30, 2020 interest rates, approximately $4.9 million would be reclassified to interest expense in the next year. Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives November 30, 2020 August 31, 2020 November 30, 2020 August 31, 2020 (In thousands) Balance sheet location Fair Value Fair Value Balance sheet location Fair Value Fair Value Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 112 $ 560 Accounts payable and accrued liabilities $ 389 $ 3 Interest rate swap contracts Accounts receivable, net — — Accounts payable and accrued liabilities 14,250 15,904 $ 112 $ 560 $ 14,639 $ 15,907 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ — $ 22 Accounts payable and accrued liabilities $ — $ — The Effect of Derivative Instruments on the Statements of Operations Three Months Ended November 30, 2020 and 2019 Derivatives in cash flow hedging relationships Location of gain (loss) recognized in income on derivatives Gain (loss) recognized in income on derivatives three months ended November 30, 2020 November 30, 2019 Foreign forward exchange contract Interest and foreign exchange $ (123 ) $ 71 Derivatives in cash flow hedging relationships Gain (loss) recognized in OCI on derivatives three months ended, Location of gain (loss) reclassified from accumulated OCI into income Gain (loss) reclassified from accumulated OCI into income three months ended Location of gain (loss) on derivative (amount excluded from effectiveness testing) Gain (loss) recognized on derivative (amount excluded from effectiveness testing) three months ended November 30, 2020 November 30, 2019 November 30, 2020 November 30, 2019 November 30, 2020 November 30, 2019 Foreign forward exchange contracts $ (1,010 ) $ 573 Revenue $ (246 ) $ (166 ) Revenue $ 148 $ 453 Foreign forward exchange contracts (61 ) (594 ) Cost of revenue (41 ) (75 ) Cost of revenue 5 134 Interest rate swap contracts 323 2,719 Interest and foreign exchange (1,331 ) (167 ) Interest and foreign exchange — (165 ) $ (748 ) $ 2,698 $ (1,618 ) $ (408 ) $ 153 $ 422 The following table presents the amounts in the Consolidated Statements of Operations in which the effects of the cash flow hedges are recorded and the effects of the cash flow hedge activity on these line items for the three months ended November 30, 2020 and 2019: Three Months Ended November 30, 2020 2019 Total Amount of gain (loss) on cash flow hedge activity Total Amount of gain (loss) on cash flow hedge activity Revenue $ 402,989 $ (246 ) $ 769,359 $ (166 ) Cost of revenue 362,318 (41 ) 677,170 (75 ) Interest and foreign exchange 11,103 (1,331 ) 12,852 (167 ) |
Segment Information
Segment Information | 3 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 12 – Segment Information The Company operates in three reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services. The accounting policies of the segments are described in the summary of significant accounting policies in the Consolidated Financial Statements contained in the Company’s 2020 Annual Report on Form 10-K. Performance is evaluated based on Earnings (loss) 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 benefit (expense) for either external or internal reporting purposes. Intersegment sales and transfers are valued as if the sales or transfers were to third parties. Related revenue and margin are eliminated in consolidation and therefore are not included in consolidated results in the Company’s Consolidated Financial Statements. The information in the following table is derived directly from the segments’ internal financial reports used for corporate management purposes. For the three months ended November 30, 2020: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 308,722 $ 20,591 $ 329,313 $ 9,686 $ 2,505 $ 12,191 Wheels, Repair & Parts 65,556 301 65,857 (200 ) (9 ) (209 ) Leasing & Services 28,711 4,665 33,376 5,890 4,285 10,175 Eliminations — (25,557 ) (25,557 ) — (6,781 ) (6,781 ) Corporate — — — (17,490 ) — (17,490 ) $ 402,989 $ — $ 402,989 $ (2,114 ) $ — $ (2,114 ) For the three months ended November 30, 2019: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 657,367 $ 97 $ 657,464 $ 53,143 $ (23 ) $ 53,120 Wheels, Repair & Parts 86,608 5,851 92,459 1,114 (342 ) 772 Leasing & Services 25,384 1,749 27,133 9,777 1,289 11,066 Eliminations — (7,697 ) (7,697 ) — (924 ) (924 ) Corporate — — — (22,250 ) — (22,250 ) $ 769,359 $ — $ 769,359 $ 41,784 $ — $ 41,784 Total assets (In thousands) November 30, 2020 August 31, 2020 Manufacturing $ 1,264,616 $ 1,301,715 Wheels, Repair & Parts 274,534 271,862 Leasing & Services 758,820 739,025 Unallocated, including cash 748,114 861,232 $ 3,046,084 $ 3,173,834 Reconciliation of Earnings (loss) from operations to Earnings (loss) before income tax and earnings (loss) from unconsolidated affiliates: Three Months Ended November 30, (In thousands) 2020 2019 Earnings (loss) from operations $ (2,114 ) $ 41,784 Interest and foreign exchange 11,103 12,852 Earnings (loss) before income tax and earnings (loss) from unconsolidated affiliates $ (13,217 ) $ 28,932 |
Leases
Leases | 3 Months Ended |
Nov. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 13 – Leases Lessor Equipment on operating leases is reported net of accumulated depreciation of $31.5 million and $33.4 million as of November 30, 2020 and August 31, 2020, respectively. Depreciation expense was $3.9 million and $3.5 million for the three months ended November 30, 2020 and 2019. 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 fifteen years. Operating lease rental revenues included in the Company’s Statements of Operations for the three months ended November 30, 2020 and 2019 was $11.8 million and $11.4 million, which included $3.6 million and $3.7 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 November 30, 2020, will mature as follows: (in thousands) Remaining nine months of 2021 $ 34,031 2022 31,217 2023 26,558 2024 23,535 2025 12,458 Thereafter 27,112 $ 154,911 Lessee The Company leases railcars, real estate, and certain equipment under operating and, to a lesser extent, finance lease arrangements. As of and for the three months ended November 30, 2020 and 2019, finance leases were not a material component of the Company's lease portfolio. The components of operating lease costs were as follows: (in thousands) Three Months Ended November 30, 2020 2019 Operating lease expense $ 3,848 $ 3,422 Short-term lease expense 1,326 1,406 Total $ 5,174 $ 4,828 Aggregate minimum future amounts payable under operating leases having initial or remaining non-cancelable terms at November 30, 2020 will mature as follows: (in thousands) Remaining nine months of 2021 $ 10,118 2022 12,404 2023 11,980 2024 10,712 2025 6,248 Thereafter 17,385 Total lease payments $ 68,847 Less: Imputed interest (7,775 ) Total lease obligations $ 61,072 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) Three months ended November 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,700 ROU assets obtained in exchange for new operating lease liabilities $ (197 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14 – Commitments and Contingencies Portland Harbor Superfund Site The Company’s Portland, Oregon Separate from the process Arkema Inc. et al v. A & C Foundry Products, Inc. et al 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 American Railcar Industries, Inc. ( 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 November 30, 2020, the Company had outstanding letters of credit aggregating to $28.4 million associated with performance guarantees, facility leases and workers compensation insurance. As of November 30, 2020, the Company had a $3.9 million note receivable from Greenbrier-Maxion, its unconsolidated Brazilian railcar manufacturer. This note receivable is included on the Consolidated Balance Sheet in Accounts receivable, net. |
Fair Value Measures
Fair Value Measures | 3 Months Ended |
Nov. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures | Note 15 – Fair Value Measures Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value, for this disclosure, is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1 - observable inputs such as unadjusted quoted prices in active markets for identical instruments; Level 2 - inputs, other than the quoted market prices in active markets for similar instruments, which are observable, either directly or indirectly; and Level 3 - unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions. Assets and liabilities measured at fair value on a recurring basis as of November 30, 2020 were: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 112 $ — $ 112 $ — Nonqualified savings plan investments 39,026 39,026 — — Cash equivalents 203,643 203,643 — — $ 242,781 $ 242,669 $ 112 $ — Liabilities: Derivative financial instruments $ 14,639 $ — $ 14,639 $ — (1) Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 11 - Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2020 were: (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 $ — |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Nov. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 16 – Related Party Transactions The Company has a 41.9% interest in Axis, LLC (Axis), a joint venture. The Company purchased $3.8 million and $4.0 million of railcar components from Axis for the three months ended November 30, 2020 and 2019, respectively. As of November 30, 2020, the Company had a $3.9 million note receivable from Greenbrier-Maxion, its unconsolidated Brazilian railcar manufacturer. This note receivable is included on the Consolidated Balance Sheet in Accounts receivable, net. The Company has a 40% interest in the common equity of an entity that buys and sells railcar assets that are leased to third parties. As of November 30, 2020, the carrying amount of the investment was $3.5 million which is classified in Investment in unconsolidated affiliates in the Consolidated Balance Sheet. There were no sales to or from this entity during the three months ended November 30, 2020 and 2019. The Company also provides administrative and remarketing services to this entity and earns management fees for these services which were immaterial for the three months ended November 30, 2020 and 2019. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Nov. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17 – Subsequent Events The Board of Directors has authorized the Company to repurchase shares of its common stock. In January 2021, the expiration date of this share repurchase program was extended from March 31, 2021 to January 31, 2023. The amount remaining for repurchase is $100 million as of November 30, 2020. 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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Contract Balances | The contract balances are as follows: (in thousands) Balance sheet classification November 30, 2020 August 31, 2020 $ change Contract assets Inventories $ 5,738 $ 7,081 $ (1,343 ) Contract liabilities 1 Deferred revenue $ 30,444 $ 27,009 $ 3,435 1 |
Summary of Estimated Revenue Related to Performance Obligations Wholly or Partially Unsatisfied | The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods. (in millions) November 30, 2020 Revenue type: Manufacturing – Railcar sales $ 1,923.0 Manufacturing – Marine $ 66.4 Services $ 127.1 Other $ 60.4 Manufacturing – Railcars intended for syndication 1 $ 237.0 1 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories are valued at the lower of cost or net realizable value using the first-in first-out method. Work-in-process includes material, labor and overhead. Finished goods includes completed wheels, parts and railcars not on lease or in transit. The following table summarizes the Company’s inventory balance: (In thousands) November 30, 2020 August 31, 2020 Manufacturing supplies and raw materials $ 255,112 $ 263,080 Work-in-process 103,540 116,909 Finished goods 153,878 173,761 Excess and obsolete adjustment (22,248 ) (24,221 ) $ 490,282 $ 529,529 |
Intangibles and Other Assets,_2
Intangibles and Other Assets, net (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Identifiable Intangible and Other Assets | The following table summarizes the Company’s identifiable intangible and other assets balance: (In thousands) November 30, 2020 August 31, 2020 Intangible assets subject to amortization: Customer relationships $ 89,722 $ 89,722 Accumulated amortization (58,419 ) (56,509 ) Other intangibles 39,477 37,798 Accumulated amortization (11,569 ) (10,595 ) 59,211 60,416 Intangible assets not subject to amortization 2,474 2,474 Prepaid and other assets 18,231 22,026 Operating lease ROU assets 58,767 62,389 Nonqualified savings plan investments 39,026 35,744 Revolving notes issuance costs, net 3,387 3,623 Assets held for sale 5,413 3,650 Total Intangible and other assets, net $ 186,509 $ 190,322 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | (In thousands) November 30, 2020 August 31, 2020 Trade payables $ 126,096 $ 148,971 Other accrued liabilities 107,798 100,168 Operating lease liabilities 61,072 64,509 Accrued payroll and related liabilities 93,552 105,008 Accrued warranty 45,620 45,224 $ 434,138 $ 463,880 |
Warranty Accruals (Tables)
Warranty Accruals (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Guarantees And Product Warranties [Abstract] | |
Warranty Accrual Activity | Warranty accrual activity: Three Months Ended November 30, (In thousands) 2020 2019 Balance at beginning of period $ 45,224 $ 46,678 Charged to cost of revenue, net 1,954 2,378 Payments (1,415 ) (1,999 ) Currency translation effect (143 ) 53 Balance at end of period $ 45,620 $ 47,110 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss, Net of Tax | Accumulated other comprehensive loss, net of tax effect as appropriate, consisted of the following: (In thousands) Unrealized Gain (Loss) on Derivative Financial Instruments Foreign Currency Translation Adjustment Other Accumulated Other Comprehensive Loss Balance, August 31, 2020 $ (11,970 ) $ (39,816 ) $ (1,031 ) $ (52,817 ) Other comprehensive loss before reclassifications (753 ) 3,870 1 3,118 Amounts reclassified from Accumulated other comprehensive loss 1,241 — — 1,241 Balance, November 30, 2020 $ (11,482 ) $ (35,946 ) $ (1,030 ) $ (48,458 ) |
Amounts Reclassified out of Accumulated Other Comprehensive Loss | The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Operations, with financial statement caption, were as follows: Three Months Ended November 30, (In thousands) 2020 2019 Financial Statement Caption (Gain) loss on derivative financial instruments: Foreign exchange contracts $ 1,331 $ 241 Revenue and Cost of revenue Interest rate swap contracts 287 167 Interest and foreign exchange 1,618 408 Total before tax (377 ) (99 ) Income tax expense $ 1,241 $ 309 Net of tax |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share | The shares used in the computation of basic and diluted earnings per common share are reconciled as follows: Three Months Ended November 30, (In thousands) 2020 2019 Weighted average basic common shares outstanding (1) 32,723 32,629 Dilutive effect of 2.875% convertible notes (2)(3) — — Dilutive effect of 2.25% convertible notes (2)(4) — — Dilutive effect of restricted stock units (2)(5) — 655 Weighted average diluted common shares outstanding 32,723 33,284 (1) Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. (2) The dilutive effect of common stock equivalents was excluded from the share calculation for the three months ended November 30, 2020 due to a net loss. ( 3 ) The dilutive effect of the 2.875% convertible notes was excluded for the three months ended November 30, 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. ( 4 ) The dilutive effect of the 2.25 % c onvertible notes was excluded for the three months ended November 30 , 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 | Three Months Ended November 30, 2020 2019 Net earnings (loss) attributable to Greenbrier $ (9,972 ) $ 7,669 Weighted average diluted common shares outstanding 32,723 33,284 Diluted earnings (loss) per share $ (0.30 ) $ 0.23 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments | Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives November 30, 2020 August 31, 2020 November 30, 2020 August 31, 2020 (In thousands) Balance sheet location Fair Value Fair Value Balance sheet location Fair Value Fair Value Derivatives designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ 112 $ 560 Accounts payable and accrued liabilities $ 389 $ 3 Interest rate swap contracts Accounts receivable, net — — Accounts payable and accrued liabilities 14,250 15,904 $ 112 $ 560 $ 14,639 $ 15,907 Derivatives not designated as hedging instruments Foreign forward exchange contracts Accounts receivable, net $ — $ 22 Accounts payable and accrued liabilities $ — $ — |
Effect of Derivative Instruments on the Statements of Operations | The Effect of Derivative Instruments on the Statements of Operations Three Months Ended November 30, 2020 and 2019 Derivatives in cash flow hedging relationships Location of gain (loss) recognized in income on derivatives Gain (loss) recognized in income on derivatives three months ended November 30, 2020 November 30, 2019 Foreign forward exchange contract Interest and foreign exchange $ (123 ) $ 71 Derivatives in cash flow hedging relationships Gain (loss) recognized in OCI on derivatives three months ended, Location of gain (loss) reclassified from accumulated OCI into income Gain (loss) reclassified from accumulated OCI into income three months ended Location of gain (loss) on derivative (amount excluded from effectiveness testing) Gain (loss) recognized on derivative (amount excluded from effectiveness testing) three months ended November 30, 2020 November 30, 2019 November 30, 2020 November 30, 2019 November 30, 2020 November 30, 2019 Foreign forward exchange contracts $ (1,010 ) $ 573 Revenue $ (246 ) $ (166 ) Revenue $ 148 $ 453 Foreign forward exchange contracts (61 ) (594 ) Cost of revenue (41 ) (75 ) Cost of revenue 5 134 Interest rate swap contracts 323 2,719 Interest and foreign exchange (1,331 ) (167 ) Interest and foreign exchange — (165 ) $ (748 ) $ 2,698 $ (1,618 ) $ (408 ) $ 153 $ 422 |
Effects of Cash Flow Hedges Included in Statements of Operations | The following table presents the amounts in the Consolidated Statements of Operations in which the effects of the cash flow hedges are recorded and the effects of the cash flow hedge activity on these line items for the three months ended November 30, 2020 and 2019: Three Months Ended November 30, 2020 2019 Total Amount of gain (loss) on cash flow hedge activity Total Amount of gain (loss) on cash flow hedge activity Revenue $ 402,989 $ (246 ) $ 769,359 $ (166 ) Cost of revenue 362,318 (41 ) 677,170 (75 ) Interest and foreign exchange 11,103 (1,331 ) 12,852 (167 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments Internal Financial Reports | The information in the following table is derived directly from the segments’ internal financial reports used for corporate management purposes. For the three months ended November 30, 2020: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 308,722 $ 20,591 $ 329,313 $ 9,686 $ 2,505 $ 12,191 Wheels, Repair & Parts 65,556 301 65,857 (200 ) (9 ) (209 ) Leasing & Services 28,711 4,665 33,376 5,890 4,285 10,175 Eliminations — (25,557 ) (25,557 ) — (6,781 ) (6,781 ) Corporate — — — (17,490 ) — (17,490 ) $ 402,989 $ — $ 402,989 $ (2,114 ) $ — $ (2,114 ) For the three months ended November 30, 2019: Revenue Earnings (loss) from operations (In thousands) External Intersegment Total External Intersegment Total Manufacturing $ 657,367 $ 97 $ 657,464 $ 53,143 $ (23 ) $ 53,120 Wheels, Repair & Parts 86,608 5,851 92,459 1,114 (342 ) 772 Leasing & Services 25,384 1,749 27,133 9,777 1,289 11,066 Eliminations — (7,697 ) (7,697 ) — (924 ) (924 ) Corporate — — — (22,250 ) — (22,250 ) $ 769,359 $ — $ 769,359 $ 41,784 $ — $ 41,784 Total assets (In thousands) November 30, 2020 August 31, 2020 Manufacturing $ 1,264,616 $ 1,301,715 Wheels, Repair & Parts 274,534 271,862 Leasing & Services 758,820 739,025 Unallocated, including cash 748,114 861,232 $ 3,046,084 $ 3,173,834 |
Reconciliation of Earnings (Loss) from Operations to Earnings (Loss) Before Income Tax and Earnings (Loss) from Unconsolidated Affiliates | Reconciliation of Earnings (loss) from operations to Earnings (loss) before income tax and earnings (loss) from unconsolidated affiliates: Three Months Ended November 30, (In thousands) 2020 2019 Earnings (loss) from operations $ (2,114 ) $ 41,784 Interest and foreign exchange 11,103 12,852 Earnings (loss) before income tax and earnings (loss) from unconsolidated affiliates $ (13,217 ) $ 28,932 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Nov. 30, 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 November 30, 2020, will mature as follows: (in thousands) Remaining nine months of 2021 $ 34,031 2022 31,217 2023 26,558 2024 23,535 2025 12,458 Thereafter 27,112 $ 154,911 |
Components of Operating Lease Costs | The components of operating lease costs were as follows: (in thousands) Three Months Ended November 30, 2020 2019 Operating lease expense $ 3,848 $ 3,422 Short-term lease expense 1,326 1,406 Total $ 5,174 $ 4,828 |
Aggregate Minimum Future Amounts Payable Under Operating Leases | Aggregate minimum future amounts payable under operating leases having initial or remaining non-cancelable terms at November 30, 2020 will mature as follows: (in thousands) Remaining nine months of 2021 $ 10,118 2022 12,404 2023 11,980 2024 10,712 2025 6,248 Thereafter 17,385 Total lease payments $ 68,847 Less: Imputed interest (7,775 ) Total lease obligations $ 61,072 |
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) Three months ended November 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,700 ROU assets obtained in exchange for new operating lease liabilities $ (197 ) |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 3 Months Ended |
Nov. 30, 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 November 30, 2020 were: (In thousands) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 112 $ — $ 112 $ — Nonqualified savings plan investments 39,026 39,026 — — Cash equivalents 203,643 203,643 — — $ 242,781 $ 242,669 $ 112 $ — Liabilities: Derivative financial instruments $ 14,639 $ — $ 14,639 $ — (1) Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 11 - Derivative Instruments for further discussion. Assets and liabilities measured at fair value on a recurring basis as of August 31, 2020 were: (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 $ — |
Interim Financial Statements -
Interim Financial Statements - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 30, 2020 | Sep. 01, 2020 | Aug. 31, 2020 |
Equity Class Of Treasury Stock [Line Items] | |||
Retained earnings | $ 866,367 | $ 885,460 | |
ASU 2016-13 | |||
Equity Class Of Treasury Stock [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, 2020 | ||
ASU 2016-13 | Cumulative Effect Adjustment Due to Adoption | |||
Equity Class Of Treasury Stock [Line Items] | |||
Retained earnings | $ (500) |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Balances (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2020 | Aug. 31, 2020 | ||
Change In Contract With Customer Asset And Liability [Abstract] | |||
Contract assets | $ 5,738 | $ 7,081 | |
Contract liabilities | [1] | 30,444 | $ 27,009 |
Change in contract assets | (1,343) | ||
Change in contract liabilities | [1] | $ 3,435 | |
[1] | Contract liabilities balance includes deferred revenue within the scope of Topic 606. |
Revenue Recognition - Additiona
Revenue Recognition - Additional information (Detail) $ in Millions | 3 Months Ended |
Nov. 30, 2020USD ($) | |
Revenue From Contract With Customers [Line Items] | |
Revenue recognized from contract with customers liability | $ 2.7 |
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 | $ 127.1 |
Expected performance percentage | 50.00% |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Estimated Revenue Related to Performance Obligations (Detail) $ in Millions | Nov. 30, 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 | 127.1 | |
Other | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 60.4 | |
Manufacturing | Railcar sales | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 1,923 | |
Manufacturing | Marine | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | 66.4 | |
Manufacturing | Railcars for Syndication | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue type 1 | $ 237 | [1] |
[1] | Not a performance obligation as defined in Topic 606 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Manufacturing supplies and raw materials | $ 255,112 | $ 263,080 |
Work-in-process | 103,540 | 116,909 |
Finished goods | 153,878 | 173,761 |
Excess and obsolete adjustment | (22,248) | (24,221) |
Inventories | $ 490,282 | $ 529,529 |
Intangibles and Other Assets,_3
Intangibles and Other Assets, Net - Identifiable Intangible and Other Assets (Detail) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Net, Total | $ 59,211 | $ 60,416 |
Intangible assets not subject to amortization | 2,474 | 2,474 |
Prepaid and other assets | 18,231 | 22,026 |
Operating lease ROU assets | 58,767 | 62,389 |
Nonqualified savings plan investments | 39,026 | 35,744 |
Revolving notes issuance costs, net | 3,387 | 3,623 |
Assets held for sale | 5,413 | 3,650 |
Total Intangible and other assets, net | 186,509 | 190,322 |
Customer Relationships | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 89,722 | 89,722 |
Accumulated amortization | (58,419) | (56,509) |
Other Intangible Assets | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Finite lived intangible assets gross | 39,477 | 37,798 |
Accumulated amortization | $ (11,569) | $ (10,595) |
Intangibles and Other Assets,_4
Intangibles and Other Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 2.8 | $ 2.7 |
Future amortization expense, 2021 | 11.5 | |
Future amortization expense, 2022 | 8.1 | |
Future amortization expense, 2023 | 6.7 | |
Future amortization expense, 2024 | 6.6 | |
Future amortization expense, 2025 | $ 5.7 |
Revolving Notes - Additional In
Revolving Notes - Additional Information (Detail) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2020USD ($)FacilityCreditFacility | Aug. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 85,300,000 | |
Long-term Line of Credit | $ 276,248,000 | $ 351,526,000 |
Number of lines of credits | CreditFacility | 3 | |
Senior Secured Credit Facilities, Consisting of 4 Components | ||
Line of Credit Facility [Line Items] | ||
Number of senior secured credit facilities | Facility | 4 | |
Line of credit facility maximum capacity | $ 738,200,000 | |
Letter of credit facility outstanding amount | 28,400,000 | 28,700,000 |
Borrowings | 210,000,000 | 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 | 28,000,000 | |
Letter of credit facility outstanding amount | $ 36,200,000 | 46,500,000 |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Minimum | ||
Line of Credit Facility [Line Items] | ||
Line of credit maturity date | 2021-06 | |
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 | 1.20% | |
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | WIBOR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 1.50% | |
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 Operations Line of Credit, 3rd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 70,000,000 | |
Letter of credit facility outstanding amount | 30,000,000 | $ 30,000,000 |
Mexican Railcar Manufacturing Operations 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 Operations 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 Operations 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 Operations 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 Operations 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% | |
Mexican Railcar Manufacturing Operations Line of Credit 3, 3rd Component of Senior Secured Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum capacity | $ 5,000,000 | |
Line of credit facility borrowings outstanding due period | 2022-09 | |
Mexican Railcar Manufacturing Operations Line of Credit 3, 3rd Component of Senior Secured Credit Facilities | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, percentage points added to the reference rate | 2.95% |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 |
Payables And Accruals [Abstract] | ||||
Trade payables | $ 126,096 | $ 148,971 | ||
Other accrued liabilities | 107,798 | 100,168 | ||
Operating lease liabilities | 61,072 | 64,509 | ||
Accrued payroll and related liabilities | 93,552 | 105,008 | ||
Accrued warranty | 45,620 | 45,224 | $ 47,110 | $ 46,678 |
Accounts payable and accrued liabilities | $ 434,138 | $ 463,880 |
Warranty Accruals - Warranty Ac
Warranty Accruals - Warranty Accrual Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Guarantees And Product Warranties [Abstract] | ||
Balance at beginning of period | $ 45,224 | $ 46,678 |
Charged to cost of revenue, net | 1,954 | 2,378 |
Payments | (1,415) | (1,999) |
Currency translation effect | (143) | 53 |
Balance at end of period | $ 45,620 | $ 47,110 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) $ in Thousands | 3 Months Ended |
Nov. 30, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ 1,293,043 |
Ending balance | 1,280,407 |
Unrealized Gain (Loss) on Derivative Financial Instruments | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (11,970) |
Other comprehensive loss before reclassifications | (753) |
Amounts reclassified from Accumulated other comprehensive loss | 1,241 |
Ending balance | (11,482) |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (39,816) |
Other comprehensive loss before reclassifications | 3,870 |
Ending balance | (35,946) |
Other | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (1,031) |
Other comprehensive loss before reclassifications | 1 |
Ending balance | (1,030) |
Accumulated Other Comprehensive (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (52,817) |
Other comprehensive loss before reclassifications | 3,118 |
Amounts reclassified from Accumulated other comprehensive loss | 1,241 |
Ending balance | $ (48,458) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Amounts Reclassified out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Interest and foreign exchange | $ 11,103 | $ 12,852 |
Total before tax | 13,217 | (28,932) |
Income tax expense | (7,332) | 5,994 |
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 | 1,618 | 408 |
Income tax expense | (377) | (99) |
Net of tax | 1,241 | 309 |
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss | Foreign Exchange Contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Revenue and Cost of revenue | 1,331 | 241 |
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 | $ 287 | $ 167 |
Earnings (Loss) Per Share - Rec
Earnings (Loss) Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share (Detail) - shares shares in Thousands | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | ||
Earnings Per Share Disclosure [Line Items] | |||
Weighted average basic common shares outstanding | [1] | 32,723 | 32,629 |
Dilutive effect of restricted stock units | [2],[3] | 655 | |
Weighted average diluted common shares outstanding | 32,723 | 33,284 | |
2.875% Convertible Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Dilutive effect of convertible notes | [3],[4] | 0 | 0 |
2.25% Convertible Senior Notes | |||
Earnings Per Share Disclosure [Line Items] | |||
Dilutive effect of convertible notes | [3],[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. | ||
[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 common stock equivalents was excluded from the share calculation for the three months ended November 30, 2020 due to a net loss. | ||
[4] | The dilutive effect of the 2.875% convertible notes was excluded for the three months ended November 30, 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. | ||
[5] | The dilutive effect of the 2.25 % c onvertible notes was excluded for the three months ended November 30 , 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. |
Earnings (Loss) Per Share - R_2
Earnings (Loss) Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share (Parenthetical) (Detail) | Nov. 30, 2020 | Nov. 30, 2019 |
2.875% Convertible Senior Notes | ||
Earnings Per Share Disclosure [Line Items] | ||
Debt instrument, interest rate | 2.875% | 2.875% |
2.25% Convertible Senior Notes | ||
Earnings Per Share Disclosure [Line Items] | ||
Debt instrument, interest rate | 2.25% | 2.25% |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) | Nov. 30, 2020 | Nov. 30, 2019 |
2.875% Convertible Senior Notes | ||
Earnings Per Share Disclosure [Line Items] | ||
Debt instrument, interest rate | 2.875% | 2.875% |
2.25% Convertible Senior Notes | ||
Earnings Per Share Disclosure [Line Items] | ||
Debt instrument, interest rate | 2.25% | 2.25% |
Earnings (Loss) Per Share - App
Earnings (Loss) Per Share - Approach to Calculate Diluted Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Net earnings (loss) attributable to Greenbrier | $ (9,972) | $ 7,669 |
Weighted average diluted common shares outstanding | 32,723 | 33,284 |
Diluted earnings (loss) per common share | $ (0.30) | $ 0.23 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Stock based compensation expense | $ 4,435 | $ 3,157 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 3 Months Ended |
Nov. 30, 2020USD ($) | |
Foreign Exchange Contracts | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 243,700,000 |
Amount reclassified to revenue or cost of revenue in the next year | 700,000 |
Interest rate swap contracts | |
Derivative [Line Items] | |
Unrealized pre-tax gain (loss) that would be reclassified to interest expense in the next year | 4,900,000 |
Interest rate swap contracts | Derivatives maturing on September 2023 | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 104,600,000 |
Maturity date | 2023-09 |
Interest rate swap contracts | Derivatives maturing on June 2024 | |
Derivative [Line Items] | |
Aggregate derivative notional amount | $ 142,500,000 |
Maturity date | 2024-06 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | $ 14,639 | $ 15,907 |
Designated as Hedging Instrument | Accounts Receivable | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 112 | 560 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | 389 | 3 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 112 | 560 |
Designated as Hedging Instrument | Interest rate swap contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | $ 14,250 | 15,904 |
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 Operations (Detail) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives | $ (748) | $ 2,698 |
Gain (loss) reclassified from accumulated OCI into income | (1,618) | (408) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | 153 | 422 |
Foreign Exchange Forward | Interest and Foreign Exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income on derivatives | (123) | 71 |
Foreign Exchange Forward | Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives | (1,010) | 573 |
Gain (loss) reclassified from accumulated OCI into income | (246) | (166) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | 148 | 453 |
Foreign Exchange Forward | Cost Of Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives | (61) | (594) |
Gain (loss) reclassified from accumulated OCI into income | (41) | (75) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | 5 | 134 |
Interest rate swap contracts | Interest and Foreign Exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in OCI on derivatives | 323 | 2,719 |
Gain (loss) reclassified from accumulated OCI into income | $ (1,331) | (167) |
Gain (loss) recognized on derivative (amount excluded from effectiveness testing) | $ (165) |
Derivative Instruments - Effe_2
Derivative Instruments - Effects of Cash Flow Hedges Included in Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Derivative [Line Items] | ||
Revenue | $ 402,989 | $ 769,359 |
Cost of revenue | 362,318 | 677,170 |
Interest and foreign exchange | 11,103 | 12,852 |
Sales | ||
Derivative [Line Items] | ||
Amount of gain (loss) on cash flow hedge activity | (246) | (166) |
Cost of Sales | ||
Derivative [Line Items] | ||
Amount of gain (loss) on cash flow hedge activity | (41) | (75) |
Interest and Foreign Exchange | ||
Derivative [Line Items] | ||
Amount of gain (loss) on cash flow hedge activity | $ (1,331) | $ (167) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Nov. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Segments
Segment Information - Segments Internal Financial Reports (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 402,989 | $ 769,359 | |
Earnings (loss) from operations | (2,114) | 41,784 | |
Assets | 3,046,084 | $ 3,173,834 | |
Manufacturing | |||
Segment Reporting Information [Line Items] | |||
Revenue | 308,722 | 657,367 | |
Earnings (loss) from operations | 9,686 | 53,143 | |
Wheels, Repair & Parts | |||
Segment Reporting Information [Line Items] | |||
Revenue | 65,556 | 86,608 | |
Earnings (loss) from operations | (200) | 1,114 | |
Leasing & Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | 28,711 | 25,384 | |
Earnings (loss) from operations | 5,890 | 9,777 | |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Earnings (loss) from operations | (17,490) | (22,250) | |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue | (25,557) | (7,697) | |
Earnings (loss) from operations | (6,781) | (924) | |
Intersegment Eliminations | Manufacturing | |||
Segment Reporting Information [Line Items] | |||
Revenue | 20,591 | 97 | |
Earnings (loss) from operations | 2,505 | (23) | |
Intersegment Eliminations | Wheels, Repair & Parts | |||
Segment Reporting Information [Line Items] | |||
Revenue | 301 | 5,851 | |
Earnings (loss) from operations | (9) | (342) | |
Intersegment Eliminations | Leasing & Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4,665 | 1,749 | |
Earnings (loss) from operations | 4,285 | 1,289 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Earnings (loss) from operations | (17,490) | (22,250) | |
Operating Segments | Manufacturing | |||
Segment Reporting Information [Line Items] | |||
Revenue | 329,313 | 657,464 | |
Earnings (loss) from operations | 12,191 | 53,120 | |
Assets | 1,264,616 | 1,301,715 | |
Operating Segments | Wheels, Repair & Parts | |||
Segment Reporting Information [Line Items] | |||
Revenue | 65,857 | 92,459 | |
Earnings (loss) from operations | (209) | 772 | |
Assets | 274,534 | 271,862 | |
Operating Segments | Leasing & Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | 33,376 | 27,133 | |
Earnings (loss) from operations | 10,175 | $ 11,066 | |
Assets | 758,820 | 739,025 | |
Operating Segments | Unallocated, including cash | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 748,114 | $ 861,232 |
Segment Information - Reconcili
Segment Information - Reconciliation of Earnings (Loss) from Operations to Earnings (Loss) Before Income Tax and Earnings (Loss) from Unconsolidated Affiliates (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Segment Reporting [Abstract] | ||
Earnings (loss) from operations | $ (2,114) | $ 41,784 |
Interest and foreign exchange | 11,103 | 12,852 |
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates | $ (13,217) | $ 28,932 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | |
Lessor and Lessee, Lease, Description [Line Items] | |||
Operating lease rental revenues | $ 11.8 | $ 11.4 | |
Finance lease option to extend | options to extend up to 15 years | ||
Car Hire Utilization Arrangements | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Operating lease rental revenues | $ 3.6 | 3.7 | |
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 | 15 years | ||
Financing lease remaining lease term | 78 years | ||
Equipment on Operating Lease | |||
Lessor and Lessee, Lease, Description [Line Items] | |||
Accumulated depreciation | $ 31.5 | $ 33.4 | |
Depreciation expense | $ 3.9 | $ 3.5 |
Leases - Aggregate Minimum Futu
Leases - Aggregate Minimum Future Amounts Receivable Under All Non-Cancelable Operating Leases and Subleases (Detail) $ in Thousands | Nov. 30, 2020USD ($) |
Leases [Abstract] | |
Remaining nine months of 2021 | $ 34,031 |
2022 | 31,217 |
2023 | 26,558 |
2024 | 23,535 |
2025 | 12,458 |
Thereafter | 27,112 |
Operating Leases, Future Minimum Payments Receivable, Total | $ 154,911 |
Leases - Components of Operatin
Leases - Components of Operating Lease Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 3,848 | $ 3,422 |
Short-term lease expense | 1,326 | 1,406 |
Total | $ 5,174 | $ 4,828 |
Leases - Aggregate Minimum Fu_2
Leases - Aggregate Minimum Future Amounts Payable Under Operating Leases (Detail) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Leases [Abstract] | ||
Remaining nine months of 2021 | $ 10,118 | |
2022 | 12,404 | |
2023 | 11,980 | |
2024 | 10,712 | |
2025 | 6,248 | |
Thereafter | 17,385 | |
Total lease payments | 68,847 | |
Less: Imputed interest | (7,775) | |
Total lease obligations | $ 61,072 | $ 64,509 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent |
Leases - Additional Informati_2
Leases - Additional Information Related to Company's Leases (Detail) | Nov. 30, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term | 11 years 4 months 24 days |
Weighted average discount rate | 3.20% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 3 Months Ended |
Nov. 30, 2020USD ($) | |
Cash Flow Operating Activities Lessee [Abstract] | |
Operating cash flows from operating leases | $ 3,700 |
ROU assets obtained in exchange for new operating lease liabilities | $ (197) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jan. 06, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Nov. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |||
Remedial investigation and feasibility study | $ 110,000,000 | ||
Greenbrier-Maxion | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Note receivable | $ 3,900,000 | ||
Performance Guarantee | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Letter of credit facility outstanding amount | $ 28,400,000 | ||
Portland Harbor Site | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of sediment decision units | Segment | 13 | ||
Estimated undiscounted cost | $ 1,700,000,000 | ||
Period for remedial action | 13 years | ||
Period for monitoring | 30 years | ||
New data collection period to reflect actual cost prior to final remedy design | 2 years | ||
Portland Harbor Site | Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Accuracy of cost estimate | (30.00%) | ||
Portland Harbor Site | Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Accuracy of cost estimate | 50.00% |
Fair Value Measures - Assets an
Fair Value Measures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 | |
Assets: | |||
Nonqualified savings plan investments | $ 39,026 | $ 35,744 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | 112 | 582 | |
Nonqualified savings plan investments | 39,026 | 35,744 | |
Cash equivalents | 203,643 | 203,509 | |
Assets, Fair Value Disclosure, Total | 242,781 | 239,835 | |
Liabilities: | |||
Derivative financial instruments | 14,639 | 15,907 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Nonqualified savings plan investments | 39,026 | 35,744 | |
Cash equivalents | 203,643 | 203,509 | |
Assets, Fair Value Disclosure, Total | 242,669 | 239,253 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | [1] | 112 | 582 |
Assets, Fair Value Disclosure, Total | [1] | 112 | 582 |
Liabilities: | |||
Derivative financial instruments | [1] | $ 14,639 | $ 15,907 |
[1] | Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 11 - Derivative Instruments for further discussion. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Related Party Transaction [Line Items] | ||
Carrying amount of investment in unconsolidated affiliates | $ 3,500,000 | |
Greenbrier-Maxion | ||
Related Party Transaction [Line Items] | ||
Note receivable | $ 3,900,000 | |
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 | $ 3,800,000 | $ 4,000,000 |
Greenbrier | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership in entity | 40.00% | |
Greenbrier | Leasing Warehouse | ||
Related Party Transaction [Line Items] | ||
Revenue recognize from railcars sold | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) | Jan. 06, 2021 | Nov. 30, 2020 |
Subsequent Event [Line Items] | ||
Stock repurchase program, expiration date | Mar. 31, 2021 | |
Stock repurchase program, amount remaining for repurchase | $ 100,000,000 | |
Subsequent Events | ||
Subsequent Event [Line Items] | ||
Stock repurchase program, expiration date | Jan. 31, 2023 |