Segment Information

3 Months Ended

Nov. 30, 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 2012 Annual Report on Form 10-K. 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.

	Three Months Ended November 30,
(In thousands)	2012			2011
Revenue:
Manufacturing	$	270,294		$	304,839
Wheel Services, Refurbishment & Parts		117,486			122,618
Leasing & Services		22,298			20,593
Intersegment eliminations		5,296			(49,851	)
	$	415,374		$	398,199
Margin:
Manufacturing	$	26,876		$	26,468
Wheel Services, Refurbishment & Parts		10,624			11,858
Leasing & Services		10,279			8,131
Segment margin total		47,779			46,457
Less unallocated items:
Selling and administrative		26,100			23,235
Gain on disposition of equipment		(1,408	)		(3,658	)
Interest and foreign exchange		5,900			5,383
Earnings before income taxes and loss from unconsolidated affiliates	$	17,187		$	21,497