Segment Information

12 Months Ended

Aug. 31, 2012

Segment Information

Note 20 - Segment Information

Greenbrier operates in three reportable segments: Manufacturing; Wheel Services, Refurbishment & Parts and Leasing & Services. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Performance is evaluated based on margin. The Company’s integrated business model results in selling and administrative costs being intertwined among the segments. Currently, 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.

	Years ended August 31,
(In thousands)	2012			2011			2010
Revenue:
Manufacturing	$	1,370,900		$	770,596		$	305,333
Wheel Services, Refurbishment & Parts		498,336			492,355			402,694
Leasing & Services		90,538			70,498			73,190
Intersegment eliminations		(152,058	)		(90,159	)		(24,937	)
	$	1,807,716		$	1,243,290		$	756,280
Margin:
Manufacturing	$	131,580		$	59,975		$	27,171
Wheel Services, Refurbishment & Parts		48,324			47,416			43,912
Leasing & Services		34,516			32,140			30,915
	$	214,420		$	139,531		$	101,998
Assets:
Manufacturing	$	402,976		$	423,295		$	205,863
Wheel services, Refurbishment & Parts		413,013			400,643			387,356
Leasing & Services		508,539			424,839			377,761
Unallocated		60,016			52,878			101,908
	$	1,384,544		$	1,301,655		$	1,072,888
Depreciation and amortization:
Manufacturing	$	11,754		$	9,853		$	11,061
Wheel Services, Refurbishment & Parts		13,265			11,853			11,435
Leasing & Services		17,352			16,587			15,015
	$	42,371		$	38,293		$	37,511
Capital expenditures:
Manufacturing	$	33,313		$	20,016		$	8,715
Wheel Services, Refurbishment & Parts		11,248			20,087			12,215
Leasing & Services		73,324			44,199			18,059
	$	117,885		$	84,302		$	38,989

The following table summarizes selected geographic information.

	Years ended August 31,
(In thousands)	2012		2011		2010
Revenue(1):
U.S.	$	1,642,348	$	1,103,423	$	659,697
Foreign		165,368		139,867		96,583
	$	1,807,716	$	1,243,290	$	756,280
Identifiable assets:
U.S.	$	982,078	$	1,000,249	$	918,553
Canada		718
Mexico		323,318		228,406		115,721
Europe		78,430		73,000		38,614
	$	1,384,544	$	1,301,655	$	1,072,888

⁽¹⁾  Revenue is presented on the basis of geographic location of customers.

Reconciliation of segment margin to earnings (loss) before income tax loss from unconsolidated affiliates:

	Years ended August 31,
(In thousands)	2012			2011			2010
Segment margin	$	214,420		$	139,531		$	101,998
Less unallocated items:
Selling and administrative		104,596			80,326			69,931
Gain on disposition of equipment		(8,964	)		(8,369	)		(8,170	)
Special items		–			–			(11,870	)
Interest and foreign exchange		24,809			36,992			45,204
Loss (gain) on extinguishment of debt		–			15,657			(2,070	)
Earnings before income tax and loss from unconsolidated affiliates	$	93,979		$	14,925		$	8,973