Note 7 - Investments In Unconsolidated Affiliates

GBW

The Company has a 50% ownership interest in GBW which performed railcar repair, refurbishment and maintenance until August 20, 2018, on which date the Company entered in to a dissolution agreement (See Note 3 – Acquisitions). The Company accounts for its interest in GBW under the equity method of accounting.

The assets and liabilities shown below as of August 31, 2018 primarily represent one remaining repair shop and other corporate related obligations while the summarized income statement for the year ended August 31, 2018 is for GBW’s full year of activity.

Summarized financial data for GBW is as follows:


	As of August 31,
(In thousands)	2018		2017
Current assets	$	8,531	$	81,860
Total assets	$	8,531	$	206,009
Current liabilities	$	23,283	$	33,033
Total liabilities	$	23,283	$	111,384


	Years ended August 31,
(In thousands)	2018			2017			2016
Revenue	$	238,033		$	253,436		$	373,490
Margin	$	(6,047	)	$	(4,058	)	$	33,929
Net income (loss) ⁽¹⁾	$	(51,679	)	$	(36,947	)	$	4,006

⁽¹⁾	In 2018 and 2017, GBW recorded a pre-tax goodwill impairment loss of $26.4 million and $11.2 million, respectively, which reduced the goodwill balance to $15.1 million at the time of the dissolution.

Greenbrier-Maxion

In May 2017, the Company completed a $20 million investment in Greenbrier-Maxion, a railcar manufacturer in Brazil resulting in an increase in the Company’s ownership interest from 19.5% to 60%. Greenbrier-Maxion also assembles bogies and offers a range of aftermarket services including railcar overhaul and refurbishment. The Company does not consolidate Greenbrier-Maxion for financial reporting purposes and accounts for its interest under the equity method of accounting as the entity’s governance provisions require that all significant decisions of Greenbrier-Maxion are subject to shared consent of its shareholders.

Summarized financial data for Greenbrier-Maxion is as follows:


	As of August 31,
(In thousands)	2018		2017
Current assets	$	41,619	$	48,012
Total assets	$	61,034	$	71,455
Current liabilities	$	38,027	$	38,055
Total liabilities	$	41,539	$	42,197


	Years ended August 31,

(In thousands)	2018			2017		2016
Revenue	$	187,664		$	228,510	$	168,465
Margin	$	10,086		$	24,372	$	14,245
Net income (loss)	$	(3,006	)	$	1,378	$	(4,051	)

Amsted-Maxion Cruzeiro

In May 2017, the Company increased its ownership interest in Amsted-Maxion Cruzeiro, a manufacturer of castings and components for railcars and other heavy equipment, from 19.5% to 24.5% for $3.25 million. Proceeds from the Company’s increased ownership, along with loans from each of the partners, were used to retire third-party debt at Amsted-Maxion Cruzeiro. The Company retains an option to increase its ownership to 29.5% subject to certain conditions. Amsted-Maxion Cruzeiro has a 40% ownership position in Greenbrier-Maxion. The Company accounts for its interest in Amsted-Maxion Cruzeiro under the equity method of accounting.

Summarized financial data for Amsted-Maxion Cruzeiro is as follows:


	As of August 31,
(In thousands)	2018		2017
Current assets	$	21,463	$	23,777
Total assets	$	111,589	$	142,583
Current liabilities	$	27,981	$	28,084
Total liabilities	$	83,407	$	94,846


	Years ended August 31,
(In thousands)	2018			2017			2016
Revenue	$	96,490		$	90,114		$	87,833
Margin	$	8,001		$	5,983		$	8,256
Net income (loss)	$	(9,590	)	$	(20,114	)	$	(12,640	)

Other Unconsolidated Affiliates

The Company has eight other unconsolidated affiliates which are accounted for under the equity method of accounting. For the year ended August 31, 2018, the Company recognized earnings of $1.8 million from these other unconsolidated affiliates.

Summarized financial information, shown as 100% of these other unconsolidated affiliates in aggregate are as follows:


	As of August 31,
(In thousands)	2018		2017
Current assets	$	32,168	$	16,996
Total assets	$	239,535	$	283,895
Current liabilities	$	3,647	$	3,003
Total liabilities	$	52,852	$	90,064


	Years ended August 31,
(In thousands)	2018		2017		2016
Revenue	$	25,549	$	39,161	$	75,851
Margin	$	11,360	$	8,015	$	11,087
Net income (loss)	$	6,988	$	5,202	$	6,051