Earnings Per Share (Tables)

3 Months Ended

Nov. 30, 2012

Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share

The shares used in the computation of the Company’s basic and diluted earnings per common share are reconciled as follows:

	Three Months Ended November 30,
(In thousands)	2012		2011
Weighted average basic common shares outstanding (1)		27,144		25,463
Dilutive effect of warrants		802		1,881
Dilutive effect of convertible notes (2)		6,045		6,045
Weighted average diluted common shares outstanding		33,991		33,389

(1) Restricted stock grants are treated as outstanding when issued and are included in weighted average basic common shares outstanding when the Company is in a net earnings position.

(2) The dilutive effect of the 2018 Convertible notes are included as they were considered dilutive under the “if converted” method as further discussed below. The dilutive effect of the 2026 Convertible notes was excluded from the share calculations as the stock price for each period presented was less than the initial conversion price of $48.05 and therefore considered anti-dilutive.

Approach to Calculate Diluted Earning Per Share

	Three Months Ended November 30,
	2012		2011
Net earnings attributable to Greenbrier	$	10,427	$	14,517
Add back:
Interest and debt issuance costs on the 2018 Convertible notes, net of tax		1,430		1,376
Earnings before interest and debt issuance costs on convertible notes	$	11,857	$	15,893
Weighted average diluted common shares outstanding		33,991		33,389
Diluted earnings per share (1)	$	0.35	$	0.48

(1) Diluted earnings per share was calculated as follows:

Earnings before interest and debt issuance costs on convertible notes

            Weighted average diluted common shares outstanding