Earnings Per Share (Tables)

6 Months Ended

Feb. 28, 2019

Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share

The shares used in the computation of basic and diluted earnings per common share are reconciled as follows:

	Three Months Ended February 28,				Six Months Ended February 28,
(In thousands)	2019		2018		2019		2018
Weighted average basic common shares outstanding (1)		32,628		29,355		32,634		29,343
Dilutive effect of 2018 Convertible notes (2)		—		3,349		—		3,340
Dilutive effect of 2024 Convertible notes (3)		—		—		—		—
Dilutive effect of restricted stock units (4)		578		7		515		20
Weighted average diluted common shares outstanding		33,206		32,711		33,149		32,703

(1)	Restricted stock grants and restricted stock units that are considered participating securities, 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 six months ended February 28, 2018 as they were considered dilutive under the “if converted” method as further discussed below. The 2018 Convertible notes matured on April 1, 2018.
(3)	The dilutive effect of the 2024 Convertible notes was excluded for the three and six months ended February 28, 2019 and 2018 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive.
(4)	Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in weighted average diluted common shares outstanding when the Company is in a net earnings position.

Approach to Calculate Diluted Earning per Share

	Three Months Ended February 28,					Six Months Ended February 28,
	2019		2018			2019		2018
Net earnings attributable to Greenbrier	$	2,765	$	61,642		$	20,721	$	87,895
Add back:
Interest and debt issuance costs on the 2018 Convertible notes, net of tax		n/a		843			n/a		1,686
Earnings before interest and debt issuance costs on 2018 Convertible Notes		n/a	$	62,485			n/a	$	89,581
Weighted average diluted common shares outstanding		33,206		32,711			33,149		32,703
Diluted earnings per share	$	0.08	$	1.91	(1)	$	0.63	$	2.74	(1)

(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