Earnings Per Share (Tables)

3 Months Ended

Nov. 30, 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 November 30,
(In thousands)	2019		2018
Weighted average basic common shares outstanding (1)		32,629		32,640
Dilutive effect of 2.875% Convertible notes (2)		—		—
Dilutive effect of 2.25% Convertible notes (3)		—		n/a
Dilutive effect of restricted stock units (4)		655		453
Weighted average diluted common shares outstanding		33,284		33,093

(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 2.875% Convertible notes was excluded for the three months ended November 30, 2019 and 2018 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive.

(3) The 2.25% Convertible notes were issued in July 2019. The dilutive effect of the 2.25% Convertible notes was excluded for the three months ended November 30, 2019 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 November 30,
	2019		2018
Net earnings attributable to Greenbrier	$	7,669	$	17,956
Weighted average diluted common shares outstanding		33,284		33,093
Diluted earnings per share	$	0.23	$	0.54