Segment Information

9 Months Ended

May. 31, 2015

Segment Information

Note 12 – Segment Information

Through July 18, 2014, Greenbrier operated in three reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services. On July 18, 2014, the Company completed the formation of GBW, an unconsolidated 50/50 joint venture with Watco which became the Company’s fourth reportable segment (GBW Joint Venture) upon formation. The Wheels & Parts segment (previously known as Wheels, Repair & Parts through 2014) included the results of operations for its repair, refurbishment, maintenance and retrofitting (“Repair”) operations through July 18, 2014. After July 18, 2014, the results of GBW were included as part of Earnings (loss) from unconsolidated affiliates as the Company accounts for its interest in GBW under the equity method of accounting. Certain assets including real property, personal property, accounts receivable and accounts payable were not contributed or sold to GBW and remained as part of the Wheels & Parts segment.

The results of operations for the GBW Joint Venture are not reflected in the tables below as the investment is accounted for under the equity method of accounting. For the three and nine months ended May 31, 2015, GBW generated total revenue of $88.8 million and $254.7 million. GBW had total assets of $230.1 million and $210.6 million as of May 31, 2015 and August 31, 2014. The Company recorded earnings of $0.4 million in Earnings from unconsolidated affiliates associated with GBW for both the three and nine months ended May 31, 2015. The Company’s total investment in GBW at May 31, 2015 was $57.6 million which is included in unallocated assets in the tables below.

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 2014 Annual Report on Form 10-K. Performance is evaluated based on Earnings from operations. Corporate includes selling and administrative costs not directly related to goods and services and certain costs that are intertwined among segments due to our integrated business. The Company does not allocate Interest and foreign exchange or Income tax expense 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 are 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.

For the three months ended May 31, 2015:

	Revenue								Earnings (loss) from operations
	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	593,376	$	33		$	593,409		$	115,675		$	—		$	115,675
Wheels & Parts		97,407		7,605			105,012			5,078			607			5,685
Leasing & Services		23,823		11,722			35,545			10,824			11,722			22,546
Eliminations		—		(19,360	)		(19,360	)		—			(12,329	)		(12,329	)
Corporate		—		—			—			(27,166	)		—			(27,166	)
	$	714,606	$	—		$	714,606		$	104,411		$	—		$	104,411
For the nine months ended May 31, 2015:
	Revenue								Earnings (loss) from operations
	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	1,478,566	$	7,534		$	1,486,100		$	258,602		$	795		$	259,397
Wheels & Parts		286,671		20,450			307,121			20,986			2,044			23,030
Leasing & Services		74,576		43,533			118,109			31,677			43,533			75,210
Eliminations		—		(71,517	)		(71,517	)		—			(46,372	)		(46,372	)
Corporate		—		—			—			(59,900	)		—			(59,900	)
	$	1,839,813	$	—		$	1,839,813		$	251,365		$	—		$	251,365
For the three months ended May 31, 2014:
	Revenue								Earnings (loss) from operations
	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	425,583	$	—		$	425,583		$	61,116		$	—		$	61,116
Wheels, Repair & Parts		140,663		3,783			144,446			5,524			473			5,997
Leasing & Services		27,039		9,334			36,373			14,582			9,334			23,916
Eliminations		—		(13,117	)		(13,117	)		—			(9,807	)		(9,807	)
Corporate		—		—			—			(13,684	)		—			(13,684	)
	$	593,285	$	—		$	593,285		$	67,538		$	—		$	67,538
For the nine months ended May 31, 2014:
	Revenue								Earnings (loss) from operations
	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	1,132,811	$	—		$	1,132,811		$	129,542		$	—		$	129,542
Wheels, Repair & Parts		390,604		7,743			398,347			8,724			546			9,270
Leasing & Services		62,441		17,623			80,064			32,888			17,623			50,511
Eliminations		—		(25,366	)		(25,366	)		—			(18,169	)		(18,169	)
Corporate		—		—			—			(30,792	)		—			(30,792	)
	$	1,585,856	$	—		$	1,585,856		$	140,362		$	—		$	140,362

	Total assets
	May 31,		August 31,
	2015		2014
Manufacturing	$	697,342	$	521,711
Wheels & Parts		290,363		298,009
Leasing & Services		538,896		436,075
Unallocated		200,514		261,373
	$	1,727,115	$	1,517,168