Segment Information

9 Months Ended

May 31, 2012

Segment Information

Note 11 – Segment Information

Greenbrier operates in three reportable segments: Manufacturing; Wheel Services, Refurbishment & 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 2011 Annual Report on Form 10-K. Segment performance is evaluated based on margin. The Company’s integrated business model results in selling and administrative costs being intertwined among the segments. Any allocation of these costs would be subjective and not meaningful and as a result, Greenbrier’s management does not allocate these costs 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 is 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.

	Three Months Ended May 31,						Nine Months Ended May 31,
(In thousands)	2012			2011			2012			2011
Revenue:
Manufacturing	$	370,993		$	198,181		$	1,004,507		$	493,751
Wheel Services, Refurbishment & Parts		128,925			136,888			375,242			359,833
Leasing & Services		24,196			17,769			70,585			51,952
Intersegment eliminations		(16,317	)		(35,558	)		(86,153	)		(104,982	)
	$	507,797		$	317,280		$	1,364,181		$	800,554
Margin:
Manufacturing	$	39,506		$	14,813		$	95,328		$	29,574
Wheel Services, Refurbishment & Parts		13,535			15,115			38,733			34,574
Leasing & Services		8,897			8,222			25,818			24,307
Segment margin total		61,938			38,150			159,879			88,455
Less unallocated expenses:
Selling and administrative		28,784			22,580			76,998			58,212
Gain on disposition of equipment		(2,585	)		(1,678	)		(8,897	)		(6,148	)
Interest and foreign exchange		6,560			9,807			18,574			30,646
Loss on extinguishment of debt		—			10,007			—			10,007
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates	$	29,179		$	(2,566	)	$	73,204		$	(4,262	)