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Subsequent Events
9 Months Ended
May 31, 2013
Subsequent Events

Note 19 – Subsequent Events

Wheels, Repair & Parts Update

As part of the Company’s previously announced plans to enhance margins and improve capital efficiency, subsequent to quarter end, the Company announced its decision to sell or close eight facilities and to implement initiatives to improve profitability and reduce capital employed at six additional facilities within the Company’s Wheels, Repair & Parts segment. The Company also announced the retirement of the president of Greenbrier Rail Services, effective July 1, 2013, and the appointment of new senior managers for the business segment. In connection with these actions, the Company anticipates it will incur pre-tax cash restructuring charges of about $3.0 – 5.0 million over the next 2 – 3 quarters excluding any gains or losses on disposition.

Manufacturing Operations Disruption

During June 2013, the Company experienced a temporary disruption of manufacturing operations at the Company’s manufacturing facility in Sahagun, Mexico, due to an illegal strike of unionized workers who make up a portion of the Company’s work force pursuant to a contract with a third party. The union and the third party reached a financial settlement, which is not expected to have a material impact on the Company’s cost of goods sold. The work stoppage adversely impacted approximately three weeks of the Company’s manufacturing operations, and will result in a reduction in new railcar deliveries for the fourth quarter of up to 150 railcars.