Guarantor/Non-Guarantor (Tables)

6 Months Ended

Feb. 28, 2015

Condensed Consolidating Balance Sheet

The Greenbrier Companies, Inc.

Condensed Consolidating Balance Sheet

February 28, 2015

(In thousands, unaudited)

	Parent		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	84,528	$	2,329	$	58,655	$	—		$	145,512
Restricted cash		—		1,819		6,903		—			8,722
Accounts receivable, net		644		433,730		54,491		(281,377	)		207,488
Inventories		—		129,303		289,305		(18	)		418,590
Leased railcars for syndication		—		222,389		—		(24,379	)		198,010
Equipment on operating leases, net		—		260,850		3,075		(2,691	)		261,234
Property, plant and equipment, net		9,840		103,772		158,365		—			271,977
Investment in unconsolidated affiliates		1,059,361		161,439		3,916		(1,153,491	)		71,225
Goodwill		—		43,265		—		—			43,265
Intangibles and other assets, net		18,237		42,085		12,752		(8,688	)		64,386
	$	1,172,610	$	1,400,981	$	587,462	$	(1,470,644	)	$	1,690,409
Liabilities and Equity
Revolving notes	$	53,000	$	—	$	37,563	$	—		$	90,563
Accounts payable and accrued liabilities		318,217		205,158		223,350		(328,881	)		417,844
Deferred income taxes		14,954		72,073		—		(9,395	)		77,632
Deferred revenue		122		28,121		—		44			28,287
Notes payable		244,826		195,188		1,312		—			441,326
Total equity - Greenbrier		541,491		900,441		232,418		(1,132,859	)		541,491
Noncontrolling interest		—		—		92,819		447			93,266
Total equity		541,491		900,441		325,237		(1,132,412	)		634,757
	$	1,172,610	$	1,400,981	$	587,462	$	(1,470,644	)	$	1,690,409

The Greenbrier Companies, Inc.

Condensed Consolidating Balance Sheet

August 31, 2014

(In thousands)

	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	149,747	$	112	$	35,057	$	—		$	184,916
Restricted cash		—		13,238		6,902		—			20,140
Accounts receivable, net		626		474,409		62,421		(337,777	)		199,679
Inventories		—		113,117		192,634		(95	)		305,656
Leased railcars for syndication		—		128,965		—		(3,115	)		125,850
Equipment on operating leases, net		—		257,415		3,613		(2,180	)		258,848
Property, plant and equipment, net		6,220		102,972		134,506		—			243,698
Investment in unconsolidated affiliates		910,732		143,768		3,961		(989,102	)		69,359
Goodwill		—		43,265		—		—			43,265
Intangibles and other assets, net		17,031		45,013		14,221		(10,508	)		65,757
	$	1,084,356	$	1,322,274	$	453,315	$	(1,342,777	)	$	1,517,168
Liabilities and Equity
Revolving notes	$	—	$	—	$	13,081	$	—		$	13,081
Accounts payable and accrued liabilities		315,879		221,863		185,335		(339,788	)		383,289
Deferred income taxes		12,109		80,489		—		(11,215	)		81,383
Deferred revenue		122		19,950		487		44			20,603
Notes payable		244,856		198,705		1,530		—			445,091
Total equity Greenbrier		511,390		801,267		190,861		(992,128	)		511,390
Noncontrolling interest		—		—		62,021		310			62,331
Total equity		511,390		801,267		252,882		(991,818	)		573,721
	$	1,084,356	$	1,322,274	$	453,315	$	(1,342,777	)	$	1,517,168

Condensed Consolidating Statement of Income

The Greenbrier Companies, Inc.

Condensed Consolidating Statement of Income

For the three months ended February 28, 2015

(In thousands, unaudited)

	Parent			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenue
Manufacturing	$	—		$	322,665		$	427,555		$	(244,979	)	$	505,241
Wheels & Parts		—			103,706			—			(1,066	)		102,640
Leasing & Services		295			21,836			1			136			22,268
		295			448,207			427,556			(245,909	)		630,149
Cost of revenue
Manufacturing		—			269,619			359,452			(225,844	)		403,227
Wheels & Parts		—			93,966			—			(1,198	)		92,768
Leasing & Services		—			8,868			—			(24	)		8,844
		—			372,453			359,452			(227,066	)		504,839
Margin		295			75,754			68,104			(18,843	)		125,310
Selling and administrative		14,477			8,522			10,146			(246	)		32,899
Net gain on disposition of equipment		—			(120	)		—			(1	)		(121	)
Earnings (loss) from operations		(14,182	)		67,352			57,958			(18,596	)		92,532
Other costs
Interest and foreign exchange		3,120			1,743			(2,934	)		—			1,929
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates		(17,302	)		65,609			60,892			(18,596	)		90,603
Income tax (expense) benefit		(7,481	)		(16,420	)		(9,846	)		4,375			(29,372	)
Earnings (loss) before earnings (loss) from unconsolidated affiliates		(24,783	)		49,189			51,046			(14,221	)		61,231
Earnings (loss) from unconsolidated affiliates		75,134			10,852			48			(86,219	)		(185	)
Net earnings (loss)		50,351			60,041			51,094			(100,440	)		61,046
Net (earnings) loss attributable to noncontrolling interest		—			—			(19,429	)		8,734			(10,695	)
Net earnings (loss) attributable to Greenbrier	$	50,351		$	60,041		$	31,665		$	(91,706	)	$	50,351

The Greenbrier Companies, Inc.

Condensed Consolidating Statement of Income

For the six months ended February 28, 2015

(In thousands, unaudited)

	Parent			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenue
Manufacturing	$	—		$	596,477		$	793,301		$	(504,588	)	$	885,190
Wheels & Parts		—			192,171			—			(2,907	)		189,264
Leasing & Services		173			50,302			1			277			50,753
		173			838,950			793,302			(507,218	)		1,125,207
Cost of revenue
Manufacturing		—			505,271			673,225			(459,232	)		719,264
Wheels & Parts		—			172,624			—			(2,984	)		169,640
Leasing & Services		—			22,973			—			(48	)		22,925
		—			700,868			673,225			(462,264	)		911,829
Margin		173			138,082			120,077			(44,954	)		213,378
Selling and administrative		30,265			16,217			20,257			(111	)		66,628
Net gain on disposition of equipment		—			(203	)		—			(1	)		(204	)
Earnings (loss) from operations		(30,092	)		122,068			99,820			(44,842	)		146,954
Other costs
Interest and foreign exchange		6,105			3,349			(4,384	)		—			5,070
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates		(36,197	)		118,719			104,204			(44,842	)		141,884
Income tax (expense) benefit		(8,691	)		(36,413	)		(14,671	)		14,349			(45,426	)
Earnings (loss) before earnings (loss) from unconsolidated affiliates		(44,888	)		82,306			89,533			(30,493	)		96,458
Earnings (loss) from unconsolidated affiliates		128,025			16,235			95			(143,785	)		570
Net earnings (loss)		83,137			98,541			89,628			(174,278	)		97,028
Net (earnings) loss attributable to noncontrolling interest		—			—			(35,577	)		21,686			(13,891	)
Net earnings (loss) attributable to Greenbrier	$	83,137		$	98,541		$	54,051		$	(152,592	)	$	83,137

The Greenbrier Companies, Inc.

Condensed Consolidating Statement of Income

For the three months ended February 28, 2014

(In thousands, unaudited)

	Parent			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenue
Manufacturing	$	—		$	219,195		$	305,328		$	(176,768	)	$	347,755
Wheels & Parts		—			138,191			—			(1,651	)		136,540
Leasing & Services		367			17,395			1			158			17,921
		367			374,781			305,329			(178,261	)		502,216
Cost of revenue
Manufacturing		—			200,464			278,474			(172,366	)		306,572
Wheels & Parts		—			129,570			—			(1,630	)		127,940
Leasing & Services		—			9,874			—			(21	)		9,853
		—			339,908			278,474			(174,017	)		444,365
Margin		367			34,873			26,855			(4,244	)		57,851
Selling and administrative		9,111			9,944			8,920			150			28,125
Net gain on disposition of equipment		—			(4,971	)		(272	)		(173	)		(5,416	)
Restructuring charges		—			540			—			—			540
Earnings (loss) from operations		(8,744	)		29,360			18,207			(4,221	)		34,602
Other costs
Interest and foreign exchange		2,899			959			241			—			4,099
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates		(11,643	)		28,401			17,966			(4,221	)		30,503
Income tax (expense) benefit		4,281			(10,100	)		(5,405	)		1,341			(9,883	)
Earnings (loss) before earnings (loss) from unconsolidated affiliates		(7,362	)		18,301			12,561			(2,880	)		20,620
Earnings (loss) from unconsolidated affiliates		22,949			1,643			45			(24,704	)		(67	)
Net earnings (loss)		15,587			19,944			12,606			(27,584	)		20,553
Net (earnings) loss attributable to noncontrolling interest		—			—			(7,269	)		2,303			(4,966	)
Net earnings (loss) attributable to Greenbrier	$	15,587		$	19,944		$	5,337		$	(25,281	)	$	15,587

The Greenbrier Companies, Inc.

Condensed Consolidating Statement of Income

For the six months ended February 28, 2014

(In thousands, unaudited)

	Parent			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenue
Manufacturing	$	—		$	405,199		$	617,639		$	(315,610	)	$	707,228
Wheels & Parts		—			252,912			—			(2,971	)		249,941
Leasing & Services		757			34,330			1			314			35,402
		757			692,441			617,640			(318,267	)		992,571
Cost of revenue
Manufacturing		—			368,001			560,997			(310,986	)		618,012
Wheels & Parts		—			238,857			—			(2,942	)		235,915
Leasing & Services		—			19,276			—			(42	)		19,234
		—			626,134			560,997			(313,970	)		873,161
Margin		757			66,307			56,643			(4,297	)		119,410
Selling and administrative		17,711			19,157			17,067			299			54,234
Net gain on disposition of equipment		—			(8,145	)		(615	)		(307	)		(9,067	)
Restructuring charges		—			1,419			—			—			1,419
Earnings (loss) from operations		(16,954	)		53,876			40,191			(4,289	)		72,824
Other costs
Interest and foreign exchange		5,833			1,763			1,247			—			8,843
Earnings (loss) before income taxes and earnings (loss) from unconsolidated affiliates		(22,787	)		52,113			38,944			(4,289	)		63,981
Income tax (expense) benefit		7,435			(19,553	)		(9,656	)		1,369			(20,405	)
Earnings (loss) before earnings (loss) from unconsolidated affiliates		(15,352	)		32,560			29,288			(2,920	)		43,576
Earnings (loss) from unconsolidated affiliates		46,327			2,445			77			(48,875	)		(26	)
Net earnings (loss)		30,975			35,005			29,365			(51,795	)		43,550
Net (earnings) loss attributable to noncontrolling interest		—			—			(14,532	)		1,957			(12,575	)
Net earnings (loss) attributable to Greenbrier	$	30,975		$	35,005		$	14,833		$	(49,838	)	$	30,975

Condensed Consolidating Statement of Comprehensive Income (Loss)

The Greenbrier Companies, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the three months ended February 28, 2015

(In thousands, unaudited)

	Parent		Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net earnings (loss)	$	50,351	$	60,041		$	51,094		$	(100,440	)	$	61,046
Other comprehensive income (loss)
Translation adjustment		—		(71	)		(6,170	)		—			(6,241	)
Reclassification of derivative financial instruments recognized in net earnings (loss)		—		103			279			—			382
Unrealized gain on derivative financial instruments		—		(366	)		558			—			192
Other (net of tax effect)		—		—			8			—			8
		—		(334	)		(5,325	)		—			(5,659	)
Comprehensive income (loss)		50,351		59,707			45,769			(100,440	)		55,387
Comprehensive (income) loss attributable to noncontrolling interest		—		—			(19,342	)		8,734			(10,608	)
Comprehensive income (loss) attributable to Greenbrier	$	50,351	$	59,707		$	26,427		$	(91,706	)	$	44,779

The Greenbrier Companies, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the six months ended February 28, 2015

(In thousands, unaudited)

	Parent		Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net earnings (loss)	$	83,137	$	98,541		$	89,628		$	(174,278	)	$	97,028
Other comprehensive income (loss)
Translation adjustment		—		(119	)		(9,572	)		—			(9,691	)
Reclassification of derivative financial instruments recognized in net earnings (loss)		—		562			109			—			671
Unrealized gain on derivative financial instruments		—		(1,197	)		1,083			—			(114	)
Other (net of tax effect)		—		—			6			—			6
		—		(754	)		(8,374	)		—			(9,128	)
Comprehensive income (loss)		83,137		97,787			81,254			(174,278	)		87,900
Comprehensive (income) loss attributable to noncontrolling interest		—		—			(35,442	)		21,686			(13,756	)
Comprehensive income (loss) attributable to Greenbrier	$	83,137	$	97,787		$	45,812		$	(152,592	)	$	74,144

The Greenbrier Companies, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the three months ended February 28, 2014

(In thousands, unaudited)

	Parent		Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net earnings (loss)	$	15,587	$	19,944		$	12,606		$	(27,584	)	$	20,553
Other comprehensive income (loss)
Translation adjustment		—		(33	)		844			—			811
Reclassification of derivative financial instruments recognized in net earnings (loss)		—		253			(73	)		—			180
Unrealized gain on derivative financial instruments		—		345			7			—			352
		—		565			778			—			1,343
Comprehensive income (loss)		15,587		20,509			13,384			(27,584	)		21,896
Comprehensive (income) loss attributable to noncontrolling interest		—		—			(7,289	)		2,303			(4,986	)
Comprehensive income (loss) attributable to Greenbrier	$	15,587	$	20,509		$	6,095		$	(25,281	)	$	16,910

The Greenbrier Companies, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the six months ended February 28, 2014

(In thousands, unaudited)

	Parent		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net earnings (loss)	$	30,975	$	35,005	$	29,365		$	(51,795	)	$	43,550
Other comprehensive income (loss)
Translation adjustment		—		12		3,310			—			3,322
Reclassification of derivative financial instruments recognized in net earnings (loss)		—		511		(194	)		—			317
Unrealized gain on derivative financial instruments		—		1,106		8			—			1,114
		—		1,629		3,124			—			4,753
Comprehensive income (loss)		30,975		36,634		32,489			(51,795	)		48,303
Comprehensive (income) loss attributable to noncontrolling interest		—		—		(14,593	)		1,957			(12,636	)
Comprehensive income (loss) attributable to Greenbrier	$	30,975	$	36,634	$	17,896		$	(49,838	)	$	35,667

Condensed Consolidating Statement of Cash Flows

The Greenbrier Companies, Inc.

Condensed Consolidating Statement of Cash Flows

For the six months ended February 28, 2015

(In thousands, unaudited)

	Parent			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net earnings (loss)	$	83,137		$	98,541		$	89,628		$	(174,278	)	$	97,028
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:
Deferred income taxes		2,846			(8,417	)		2,326			—			(3,245	)
Depreciation and amortization		955			13,179			8,312			(48	)		22,398
Net gain on disposition of equipment		—			(203	)		—			(1	)		(204	)
Stock based compensation expense		7,193			—			—			—			7,193
Noncontrolling interest adjustments		—			—			—			21,824			21,824
Other		43			6			501			(1	)		549
Decrease (increase) in assets:
Accounts receivable, net		(19	)		19,260			7,687			(33,184	)		(6,256	)
Inventories		—			(16,186	)		(100,168	)		(78	)		(116,432	)
Leased railcars for syndication		—			(96,990	)		—			21,426			(75,564	)
Other		1,542			1,726			(6,347	)		2,724			(355	)
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities		25,397			(16,725	)		41,013			(12,164	)		37,521
Deferred revenue		—			8,171			(421	)		—			7,750
Net cash provided by (used in) operating activities		121,094			2,362			42,531			(173,780	)		(7,793	)
Cash flows from investing activities:
Proceeds from sales of assets		—			3,019			—			—			3,019
Capital expenditures		(4,618	)		(14,709	)		(34,927	)		398			(53,856	)
Investment in and net advances to unconsolidated affiliates		(163,337	)		(15,760	)		—			173,382			(5,715	)
Decrease (increase) in restricted cash		—			419			(1	)		—			418
Other		467			—			—			—			467
Net cash provided by (used in) investing activities		(167,488	)		(27,031	)		(34,928	)		173,780			(55,667	)
Cash flows from financing activities:
Net changes in revolving notes with maturities of 90 days or less		53,000			—			—			—			53,000
Proceeds from revolving notes with maturities longer than 90 days		—			—			42,563			—			42,563
Repayment of revolving notes with maturities longer than 90 days		—			—			(18,081	)		—			(18,081	)
Repayments of notes payable		(5	)		(3,516	)		(219	)		—			(3,740	)
Intercompany advances		(20,716	)		21,269			(553	)		—			—
Decrease in restricted cash		—			11,000			—			—			11,000
Repurchase of stock		(46,946	)		—			—			—			(46,946	)
Dividends		(8,016	)		—			—			—			(8,016	)
Cash distribution to joint venture partner		—			—			(4,422	)		—			(4,422	)
Excess tax benefit from restricted stock awards		3,858			—			—			—			3,858
Net cash provided by (used in) financing activities		(18,825	)		28,753			19,288			—			29,216
Effect of exchange rate changes		—			(1,867	)		(3,293	)		—			(5,160	)
Increase (decrease) in cash and cash equivalents		(65,219	)		2,217			23,598			—			(39,404	)
Cash and cash equivalents
Beginning of period		149,747			112			35,057			—			184,916
End of period	$	84,528		$	2,329		$	58,655		$	—		$	145,512

The Greenbrier Companies, Inc.

Condensed Consolidating Statement of Cash Flows

For the six months ended February 28, 2014

(In thousands, unaudited)

	Parent			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net earnings (loss)	$	30,975		$	35,005		$	29,365		$	(51,795	)	$	43,550
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:
Deferred income taxes		296			(1,189	)		(555	)		—			(1,448	)
Depreciation and amortization		965			14,113			5,717			(42	)		20,753
Net gain on disposition of equipment		—			(8,145	)		(615	)		(307	)		(9,067	)
Stock based compensation expense		2,862			—			—			—			2,862
Noncontrolling interest adjustments		—			—			—			2,439			2,439
Other		—			313			17			(1	)		329
Decrease (increase) in assets:
Accounts receivable, net		36,804			(76,172	)		14,061			32,207			6,900
Inventories		—			20,361			(11,244	)		30			9,147
Leased railcars for syndication		—			(16,040	)		—			2,437			(13,603	)
Other		(1,466	)		2,160			(557	)		(69	)		68
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities		(19,558	)		62,844			(9,923	)		(33,850	)		(487	)
Deferred revenue		(78	)		4,697			755			3			5,377
Net cash provided by (used in) operating activities		50,800			37,947			27,021			(48,948	)		66,820
Cash flows from investing activities:
Proceeds from sales of assets		—			27,897			774			—			28,671
Capital expenditures		(2,902	)		(5,101	)		(8,526	)		—			(16,529	)
Investment in and net advances to unconsolidated affiliates		(46,396	)		(2,552	)		(1,253	)		48,948			(1,253	)
Increase in restricted cash		—			(156	)		(1	)		—			(157	)
Net cash provided by (used in) investing activities		(49,298	)		20,088			(9,006	)		48,948			10,732
Cash flows from financing activities:
Proceeds from revolving notes with maturities longer than 90 days		—			—			31,738			—			31,738
Repayment of revolving notes with maturities longer than 90 days		—			—			(53,209	)		—			(53,209	)
Repayments of notes payable		—			(2,041	)		(421	)		—			(2,462	)
Intercompany advances		55,783			(56,474	)		691			—			—
Repurchase of stock		(8,889	)		—			—			—			(8,889	)
Investment by joint venture partner		—			—			419			—			419
Cash distribution to joint venture partner		—			—			(1,604	)		—			(1,604	)
Excess tax benefit from restricted stock awards		110			—			—			—			110
Net cash provided by (used in) financing activities		47,004			(58,515	)		(22,386	)		—			(33,897	)
Effect of exchange rate changes		—			488			2,351			—			2,839
Increase (decrease) in cash and cash equivalents		48,506			8			(2,020	)		—			46,494
Cash and cash equivalents
Beginning of period		63,173			25			34,237			—			97,435
End of period	$	111,679		$	33		$	32,217		$	—		$	143,929