Earnings Per Share (Tables)

9 Months Ended

May. 31, 2015

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 May 31,				Nine Months Ended May 31,
(In thousands)	2015		2014		2015		2014
Weighted average basic common shares outstanding ⁽¹⁾		27,842		27,956		27,514		28,223
Dilutive effect of 2018 Convertible notes ⁽²⁾		5,155		6,045		5,745		6,045
Dilutive effect of 2026 Convertible notes ⁽³⁾		3		—		3		—

Weighted average diluted common shares outstanding		33,000		34,001		33,262		34,268

(1)

Restricted stock grants and restricted stock units, including some grants subject to certain performance criteria, 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 was included for the three and nine months ended May 31, 2015 and 2014 as they were considered dilutive under the “if converted” method as further discussed below.

(3)

The dilutive effect of the 2026 Convertible notes was included for the three and nine months ended May 31, 2015 as the average stock price was greater than $48.05, as further described below. The effect of the 2026 Convertible notes was excluded for the three and nine months ended May 31, 2014 as the average stock price was less than $48.05 and therefore was considered anti-dilutive.

Approach to Calculate Diluted Earning per Share


	Three Months Ended May 31,				Nine Months Ended May 31,
	2015		2014		2015		2014
Net earnings attributable to Greenbrier	$	42,811	$	33,588	$	125,948	$	64,563
Add back:
Interest and debt issuance costs on the 2018 Convertible notes, net of tax		1,234		1,416		4,066		4,248

Earnings before interest and debt issuance costs on convertible notes	$	44,045	$	35,004	$	130,014	$	68,811

Weighted average diluted common shares outstanding		33,000		34,001		33,262		34,268
Diluted earnings per share ⁽¹⁾	$	1.33	$	1.03	$	3.91	$	2.01

(1)

Diluted earnings per share was calculated as follows:

Earnings before interest and debt issuance costs (net of tax) on convertible notes

Weighted average diluted common shares outstanding