10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the quarterly period ended February 29, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from ______ to ______

Commission File No. 1-13146

THE GREENBRIER COMPANIES, INC.

(Exact name of registrant as specified in its charter)

Oregon	93-0816972
(State of Incorporation)	(I.R.S. Employer Identification No.)
One Centerpointe Drive, Suite 200, Lake Oswego, OR	97035
(Address of principal executive offices)	(Zip Code)

(503) 684-7000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock without par value	GBX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ☐    No  ☒

The number of shares of the registrant’s common stock, without par value, outstanding on April 1, 2020 was 32,667,665 shares.

FORM 10-Q

Table of Contents

		Page
	Forward-Looking Statements	1
PART I.	FINANCIAL INFORMATION	4
Item 1.	Condensed Financial Statements	4
	Consolidated Balance Sheets	4
	Consolidated Statements of Income	5
	Consolidated Statements of Comprehensive Income	6
	Condensed Consolidated Statements of Equity	7
	Consolidated Statements of Cash Flows	9
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	47
PART II.	OTHER INFORMATION	48
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 6.	Exhibits	51
	Signatures	52

THE GREENBRIER COMPANIES, INC.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events and include any statement that does not relate to any historical or current fact. We use words such as “anticipates,” “believes,” “forecast,” “potential,” “contemplates,” “expects,” “intends,” “plans,” “projects,” “seeks,” “estimates,” “could,” “would,” “should,” “likely,” “will,” “may,” “can,” “future,” “preliminary” and similar expressions to identify forward-looking statements. In addition, any statements that refer to the costs or revenue related to the completion of contracts, timing of recognition of revenue, the estimated and anticipated impact of the ARI acquisition (including working capital true up, and purchase price allocation, among other factors), estimated warranty costs, contingencies, fair value estimates, and any statements that explicitly or implicitly draw trends in our performance or the markets in which we operate, uncertain events or assumptions, and other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are not guarantees of future performance.

Forward-looking statements are based on currently available operating, financial and market information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to:

• the COVID-19 coronavirus pandemic and the governmental reaction to COVID-19 having a materially negative impact on our business, liquidity and financial position, results of operations, stock price, and our ability to convert backlog to revenue as more fully described in Part II Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q;

• the cyclical nature of our business, economic downturns and a rising interest rate environment;

• changes in our product mix or decline in revenue due to shifts in demand or fluctuations in commodity and energy prices caused by a number of factors including, among others, COVID-19 and related governmental action, or a significant decline in oil prices;

• a decline in performance or demand of the rail freight industry;

• an oversupply or increase in efficiency in the rail freight industry;

• difficulty integrating acquired businesses or joint ventures;

• our inability to convert backlog to future revenues;

• risks related to our operations outside of the U.S.,  including anti-bribery violations;

• governmental policy changes impacting international trade and corporate tax;

• the loss of or reduction of business from one or more of our of our limited number of customers;

• inability to lease railcars at satisfactory rates, or realize expected residual values on sale of railcars at the end of a lease;

• shortages of skilled labor, increased labor costs, or failure to maintain good relations with our workforce;

• equipment failures, technological failures, costs and inefficiencies associated with changing of production lines, or transfer of production between facilities;

• inability to compete successfully;

• suitable joint ventures, acquisition opportunities and new business endeavors may not be identified or concluded;

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THE GREENBRIER COMPANIES, INC.

• inability to complete capital expenditure projects efficiently or to cause capital expenditure projects to operate as anticipated;

• inability to design or manufacture products or technologies or to achieve timely certification or market acceptance of new products or technologies;

• unsuccessful relationships with our joint venture partners;

• environmental liabilities, including the Portland Harbor Superfund Site;

• the timing of our asset sales and related revenue recognition may result in comparisons between fiscal periods not being accurate indicators of future performance;

• attrition within our management team or unsuccessful succession planning for members of our senior management team and other key employees who are at or nearing retirement age;

• changes in the credit markets and the financial services industry;

• volatility in the global financial markets;

• our actual results differing from our announced expectations;

• fluctuations in the availability and price of energy, freight transportation, steel and other raw materials;

• inability to procure specialty components or services on commercially reasonable terms or on a timely basis from a limited number of suppliers;

• existing indebtedness may limit our ability to borrow additional amounts in the future, may expose us to increasing interest rates, and may expose us to a material adverse effect on our business if we are unable to service our debt or obtain additional financing;

• train derailments or other accidents or claims;

• changes in or failure to comply with legal and regulatory requirements;

• an adverse outcome in any pending or future litigation or investigation;

• potential misconduct by employees;

• labor strikes or work stoppages;

• the volatility of our stock price;

• dilution to investors resulting from raising additional capital or due to other reasons;

• product and service warranty claims;

• misuse of our products by third parties;

• write-downs of goodwill or intangibles in future periods;

• conversion at our option of our outstanding convertible notes resulting in dilution to our then-current stockholders;

• as a holding company with no operations, our reliance on our subsidiaries and joint ventures and their ability to make distributions to us;

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THE GREENBRIER COMPANIES, INC.

• governing documents, the terms of our convertible notes, and Oregon law could make a change of control or acquisition of our business by a third party difficult;

• the discretion of our Board of Directors to pay or not pay dividends on our common stock;

• fluctuations in foreign currency exchange rates;

• inability to raise additional capital to operate our business and achieve our business objectives;

• shareholder activism could cause us to incur significance expense, impact our stock price, and hinder execution of our business strategy;

• cybersecurity risks;

• updates or changes to our information technology systems resulting in problems;

• inability to protect our intellectual property and prevent its improper use by third parties;

• claims by third parties that our products or services infringe their intellectual property rights;

• liability for physical damage, business interruption or product liability claims that exceed our insurance coverage;

• inability to procure adequate insurance on a cost-effective basis;

• changes in accounting standards or inaccurate estimates or assumptions in the application of accounting policies;

• fires, natural disasters, severe weather conditions or public health crises;

• unusual weather conditions which reduce demand for our wheel-related parts and repair services;

• business, regulatory, and legal developments regarding climate change which may affect the demand for our products or the ability of our critical suppliers to meet our needs;

• repercussions from terrorist activities or armed conflict;

• unanticipated changes in our tax provisions or exposure to additional income tax liabilities;

• the inability of certain of our customers to utilize tax benefits or tax credits; and

• suspension or termination of our share repurchase program.

The foregoing risks are described in more detail in Part II Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q and Part I Item 1A “Risk Factors” in our most recent Annual Report on Form 10-K, which are incorporated herein by reference. You are cautioned not to place undue reliance on any forward-looking statements, which reflect management’s opinions only as of the date hereof. Except as otherwise required by law, we do not assume any obligation to update any forward-looking statements. All references to years refer to the fiscal years ended August 31^st unless otherwise noted.

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THE GREENBRIER COMPANIES, INC.

PART I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements

Condensed Consolidated Balance Sheets

(In thousands, unaudited)

	February 29, 2020			August 31, 2019
Assets
Cash and cash equivalents	$	169,899		$	329,684
Restricted cash		8,569			8,803
Accounts receivable, net		326,229			373,383
Inventories		709,115			664,693
Leased railcars for syndication		255,073			182,269
Equipment on operating leases, net		385,974			366,688
Property, plant and equipment, net		723,326			717,973
Investment in unconsolidated affiliates		79,082			91,818
Intangibles and other assets, net		160,709			125,379
Goodwill		129,684			129,947
	$	2,947,660		$	2,990,637
Liabilities and Equity
Revolving notes	$	37,196		$	27,115
Accounts payable and accrued liabilities		499,898			568,360
Deferred income taxes		9,173			13,946
Deferred revenue		70,869			85,070
Notes payable, net		811,860			822,885
Commitments and contingencies (Note 15)
Contingently redeemable noncontrolling interest		30,782			31,564
Equity:
Greenbrier
Preferred stock - without par value; 25,000 shares    authorized; none outstanding		—			—
Common stock - without par value; 50,000 shares    authorized; 32,642 and 32,488 shares outstanding at    February 29, 2020 and August 31, 2019		—			—
Additional paid-in capital		458,908			453,943
Retained earnings		875,885			867,602
Accumulated other comprehensive loss		(48,321	)		(44,815	)
Total equity – Greenbrier		1,286,472			1,276,730
Noncontrolling interest		201,410			164,967
Total equity		1,487,882			1,441,697
	$	2,947,660		$	2,990,637

The accompanying notes are an integral part of these financial statements

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THE GREENBRIER COMPANIES, INC.

Condensed Consolidated Statements of Income

(In thousands, except per share amounts, unaudited)

	Three Months						Six Months
	February 29, 2020			February 28, 2019			February 29, 2020			February 28, 2019
Revenue
Manufacturing	$	489,943		$	476,019		$	1,147,310		$	947,808
Wheels, Repair & Parts		91,225			125,278			177,833			233,821
Leasing & Services		42,680			57,374			68,064			81,565
		623,848			658,671			1,393,207			1,263,194
Cost of revenue
Manufacturing		422,309			442,996			1,004,221			860,801
Wheels, Repair & Parts		84,373			118,455			166,265			219,433
Leasing & Services		30,830			43,376			44,196			56,583
		537,512			604,827			1,214,682			1,136,817
Margin		86,336			53,844			178,525			126,377
Selling and administrative expense		54,597			47,892			108,961			98,324
Net gain on disposition of equipment		(6,697	)		(12,102	)		(10,656	)		(26,455	)
Earnings from operations		38,436			18,054			80,220			54,508
Other costs
Interest and foreign exchange		12,609			9,237			25,461			13,641
Earnings before income taxes and earnings (loss) from    unconsolidated affiliates		25,827			8,817			54,759			40,867
Income tax expense		(7,463	)		(2,248	)		(13,457	)		(11,383	)
Earnings before earnings (loss) from unconsolidated    affiliates		18,364			6,569			41,302			29,484
Earnings (loss) from unconsolidated affiliates		1,651			(786	)		2,724			(319	)
Net earnings		20,015			5,783			44,026			29,165
Net earnings attributable to noncontrolling interest		(6,386	)		(3,018	)		(22,728	)		(8,444	)
Net earnings attributable to Greenbrier	$	13,629		$	2,765		$	21,298		$	20,721
Basic earnings per common share	$	0.42		$	0.08		$	0.65		$	0.63
Diluted earnings per common share	$	0.41		$	0.08		$	0.64		$	0.63
Weighted average common shares:
Basic		32,661			32,628			32,645			32,634
Diluted		33,482			33,206			33,382			33,149
Dividends declared per common share	$	0.27		$	0.25		$	0.52		$	0.50

The accompanying notes are an integral part of these financial statements

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THE GREENBRIER COMPANIES, INC.

Condensed Consolidated Statements of Comprehensive Income

(In thousands, unaudited)

	Three Months						Six Months
	February 29, 2020			February 28, 2019			February 29, 2020			February 28, 2019
Net earnings	$	20,015		$	5,783		$	44,026		$	29,165
Other comprehensive income (loss)
Translation adjustment		(703	)		1,745			(2,286	)		(2,186	)
Reclassification of derivative financial    instruments recognized in net earnings 1		168			701			477			1,170
Unrealized loss on derivative financial    instruments 2		(3,638	)		(1,035	)		(1,484	)		(3,337	)
Other (net of tax effect)		242			306			(221	)		76
		(3,931	)		1,717			(3,514	)		(4,277	)
Comprehensive income		16,084			7,500			40,512			24,888
Comprehensive income attributable to noncontrolling    interest		(6,384	)		(3,012	)		(22,720	)		(8,423	)
Comprehensive income attributable to Greenbrier	$	9,700		$	4,488		$	17,792		$	16,465

¹ Net of tax effect of ($0.1 million) and ($0.2 million) for the three months ended February 29, 2020 and February 28, 2019 and ($0.2 million) and ($0.4 million) for the six months ended February 29, 2020 and February 28, 2019

² Net of tax effect of $1.3 million and $0.2 million for the three months ended February 29, 2020 and February 28, 2019 and $0.7 million and $1.1 million for the six months ended February 29, 2020 and February 28, 2019

The accompanying notes are an integral part of these financial statements

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THE GREENBRIER COMPANIES, INC.

Condensed Consolidated Statements of Equity

(In thousands, unaudited)

	Attributable to Greenbrier
	Common Stock Shares		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total Equity - Greenbrier			Noncontrolling Interest			Total Equity			Contingently Redeemable Noncontrolling Interest
Balance August 31, 2019		32,488	$	453,943		$	867,602		$	(44,815	)	$	1,276,730		$	164,967		$	1,441,697		$	31,564
Cumulative effect adjustment    due to adoption of ASU    2016-02 (See Note 1)		—		—			4,393			—			4,393			—			4,393			—
Net earnings		—		—			21,298			—			21,298			23,510			44,808			(782	)
Other comprehensive loss, net		—		—			—			(3,506	)		(3,506	)		(8	)		(3,514	)		—
Noncontrolling interest    adjustments		—		—			—			—			—			9,038			9,038			—
Joint venture partner    distribution declared		—		—			—			—			—			(8,172	)		(8,172	)		—
Noncontrolling interest acquired		—		—			—			—			—			12,075			12,075			—
Restricted stock awards (net of    cancellations)		154		11,114			—			—			11,114			—			11,114			—
Unamortized restricted stock		—		(13,008	)		—			—			(13,008	)		—			(13,008	)		—
Restricted stock amortization		—		6,859			—			—			6,859			—			6,859			—
Cash dividends ($0.52 per    share)		—		—			(17,408	)		—			(17,408	)		—			(17,408	)		—
Balance February 29, 2020		32,642	$	458,908		$	875,885		$	(48,321	)	$	1,286,472		$	201,410		$	1,487,882		$	30,782

	Attributable to Greenbrier
	Common Stock Shares		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total Equity - Greenbrier			Noncontrolling Interest			Total Equity			Contingently Redeemable Noncontrolling Interest
Balance November 30, 2019		32,596	$	454,900		$	871,300		$	(44,392	)	$	1,281,808		$	191,050		$	1,472,858		$	31,723
Net earnings		—		—			13,629			—			13,629			7,327			20,956			(941	)
Other comprehensive loss, net		—		—			—			(3,929	)		(3,929	)		(2	)		(3,931	)		—
Noncontrolling interest    adjustments		—		—			—			—			—			7,302			7,302			—
Joint venture partner    distribution declared		—		—			—			—			—			(4,267	)		(4,267	)		—
Restricted stock awards (net of    cancellations)		46		1,642			—			—			1,642			—			1,642			—
Unamortized restricted stock		—		(1,667	)		—			—			(1,667	)		—			(1,667	)		—
Restricted stock amortization		—		4,033			—			—			4,033			—			4,033			—
Cash dividends ($0.27 per    share)		—		—			(9,044	)		—			(9,044	)		—			(9,044	)		—
Balance February 29, 2020		32,642	$	458,908		$	875,885		$	(48,321	)	$	1,286,472		$	201,410		$	1,487,882		$	30,782

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THE GREENBRIER COMPANIES, INC.

	Attributable to Greenbrier
	Common Stock Shares		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total Equity - Greenbrier			Noncontrolling Interest			Total Equity			Contingently Redeemable Noncontrolling Interest
Balance August 31, 2018		32,191	$	442,569		$	830,898		$	(23,366	)	$	1,250,101		$	134,114		$	1,384,215		$	29,768
Cumulative effect adjustment    due to adoption of ASU    2014-09		—		—			5,461			—			5,461			—			5,461
Net earnings		—		—			20,721			—			20,721			12,575			33,296			(4,131	)
Other comprehensive loss, net		—		—						(4,256	)		(4,256	)		(21	)		(4,277	)		—
Noncontrolling interest    adjustments		—		—			—			—			—			5,306			5,306			—
Joint venture partner    distribution declared		—		—			—			—			—			(8,430	)		(8,430	)		—
Noncontrolling interest acquired		—		—			—			—			—			1,915			1,915			—
Restricted stock awards (net of    cancellations)		188		12,683			—			—			12,683			—			12,683			—
Unamortized restricted stock		—		(17,445	)		—			—			(17,445	)		—			(17,445	)		—
Restricted stock amortization		—		7,155			—			—			7,155			—			7,155			—
Cash dividends ($0.50 per    share)		—		—			(16,602	)		—			(16,602	)		—			(16,602	)		—
Balance February 28, 2019		32,379	$	444,962		$	840,478		$	(27,622	)	$	1,257,818		$	145,459		$	1,403,277		$	25,637

	Attributable to Greenbrier
	Common Stock Shares		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total Equity - Greenbrier			Noncontrolling Interest			Total Equity			Contingently Redeemable Noncontrolling Interest
Balance November 30, 2018		32,350	$	440,958		$	846,018		$	(29,345	)	$	1,257,631		$	141,590		$	1,399,221		$	28,449
Net earnings		—		—			2,765						2,765			5,830			8,595			(2,812	)
Other comprehensive loss, net		—		—			—			1,723			1,723			(6	)		1,717			—
Noncontrolling interest    adjustments		—		—			—			—			—			1,387			1,387			—
Joint venture partner    distribution declared		—		—			—			—			—			(5,257	)		(5,257	)		—
Noncontrolling interest acquired		—		—			—			—			—			1,915			1,915			—
Restricted stock awards (net of    cancellations)		29		1,267			—			—			1,267			—			1,267			—
Unamortized restricted stock		—		(1,282	)		—			—			(1,282	)		—			(1,282	)		—
Restricted stock amortization		—		4,019			—			—			4,019			—			4,019			—
Cash dividends ($0.25 per    share)		—		—			(8,305	)		—			(8,305	)		—			(8,305	)		—
Balance February 28, 2019		32,379	$	444,962		$	840,478		$	(27,622	)	$	1,257,818		$	145,459		$	1,403,277		$	25,637

The accompanying notes are an integral part of these financial statements

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THE GREENBRIER COMPANIES, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands, unaudited)

	Six Months
	February 29, 2020			February 28, 2019
Cash flows from operating activities
Net earnings	$	44,026		$	29,165
Adjustments to reconcile net earnings to net cash used in operating activities:
Deferred income taxes		(6,714	)		(3,405	)
Depreciation and amortization		59,338			40,815
Net gain on disposition of equipment		(10,656	)		(26,455	)
Accretion of debt discount		2,718			2,165
Stock based compensation expense		7,237			7,311
Noncontrolling interest adjustments		9,038			5,306
Other		(39	)		1,809
Decrease (increase) in assets:
Accounts receivable, net		46,109			23,298
Inventories		(55,158	)		(154,388	)
Leased railcars for syndication		(123,033	)		(76,386	)
Other		(39,433	)		(11,274	)
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities		(67,988	)		28,458
Deferred revenue		1,381			(13,041	)
Net cash used in operating activities		(133,174	)		(146,622	)
Cash flows from investing activities
Proceeds from sales of assets		41,827			63,879
Capital expenditures		(40,834	)		(98,176	)
Investment in and advances to unconsolidated affiliates		(1,500	)		(11,393	)
Cash distribution from unconsolidated affiliates and other		11,273			1,986
Net cash provided by (used in) investing activities		10,766			(43,704	)
Cash flows from financing activities
Net change in revolving notes with maturities of 90 days or less		10,246			(6,007	)
Proceeds from issuance of notes payable		—			225,000
Repayments of notes payable		(17,120	)		(176,641	)
Debt issuance costs		—			(2,770	)
Dividends		(17,312	)		(16,651	)
Cash distribution to joint venture partner		(8,706	)		(5,058	)
Tax payments for net share settlement of restricted stock		(1,895	)		(4,762	)
Net cash provided by (used in) financing activities		(34,787	)		13,111
Effect of exchange rate changes		(2,824	)		825
Decrease in cash and cash equivalents and restricted cash		(160,019	)		(176,390	)
Cash and cash equivalents and restricted cash
Beginning of period		338,487			539,474
End of period	$	178,468		$	363,084
Balance Sheet Reconciliation:
Cash and cash equivalents	$	169,899		$	341,500
Restricted cash		8,569			21,584
Total cash and cash equivalents and restricted cash as presented above	$	178,468		$	363,084
Interest	$	11,608		$	8,600
Income taxes, net	$	25,503		$	31,494
Non-cash activity
Transfer from Leased railcars for syndication to Equipment on operating leases, net	$	55,739		$	42,809
Capital expenditures accrued in Accounts payable and accrued liabilities	$	3,237		$	11,812
Change in Accounts payable and accrued liabilities associated with dividends declared	$	(96	)	$	50
Conversion of unconsolidated affiliate note receivable to Investment in unconsolidated affiliates	$	4,760		$	—
Change in Accounts payable and accrued liabilities associated with cash    distributions to joint venture partner	$	535		$	(3,372	)

The accompanying notes are an integral part of these financial statements

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THE GREENBRIER COMPANIES, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 – Interim Financial Statements

The Condensed Consolidated Financial Statements of The Greenbrier Companies, Inc. and its subsidiaries (Greenbrier or the Company) as of February 29, 2020, for the three and six months ended February 29, 2020 and for the three and six months ended February 28, 2019 have been prepared to reflect all adjustments (consisting of normal recurring accruals) that, in the opinion of management, are necessary for a fair presentation of the financial position, operating results and cash flows for the periods indicated. The results of operations for the three and six months ended February 29, 2020 are not necessarily indicative of the results to be expected for the entire year ending August 31, 2020.  

Certain notes and other information have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these unaudited financial statements should be read in conjunction with the Consolidated Financial Statements contained in the Company’s 2019 Annual Report on Form 10-K.

Management Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires judgment on the part of management to arrive at estimates and assumptions on matters that are inherently uncertain. These estimates may affect the amount of assets, liabilities, revenue and expenses reported in the financial statements and accompanying notes and disclosure of contingent assets and liabilities within the financial statements. Estimates and assumptions are periodically evaluated and may be adjusted in future periods. Actual results could differ from those estimates.

Initial Adoption of Accounting Standards

Lease accounting

On September 1, 2019, the Company adopted Accounting Standards Update 2016-02, Leases (Topic 842). The new guidance supersedes existing guidance on accounting for leases in Topic 840 and is intended to increase the transparency and comparability of accounting for lease transactions. Topic 842 requires most leases to be recognized on the balance sheet by recording a right-of-use (ROU) asset and a lease liability. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Lessor accounting remains similar to the prior model, but updated to align with certain changes to the lessee model and Topic 606: Contracts with Customers.

The Company adopted the provisions of the new standard using the modified retrospective adoption method, utilizing the simplified transition option which allows entities to continue to apply the legacy guidance in Topic 840 in the comparative periods presented in the year of adoption. The Company elected the “package of practical expedients,” which allows it to not reassess under the new guidance prior conclusions about lease identification, lease classification, and initial direct costs. The Company did not elect the use-of-hindsight practical expedient. The Company elected to not separate lease and non-lease components. The Company elected the short-term lease recognition exemption for all leases that qualify, which means it will not recognize ROU assets or lease liabilities for leases with lease terms of less than twelve months. Following the adoption of Topic 842, the Company will utilize both Topic 842 and Topic 606: Contracts with Customers when evaluating retained risk of services and other performance obligations in conjunction with selling railcars with a lease attached as part of the syndication model.

As a result of adoption, the Company recognized operating lease ROU assets and lease liabilities of $40.4 and $41.6 million, respectively, as of September 1, 2019. The Company also recognized an immaterial finance lease asset and corresponding lease liability. Additionally, the Company derecognized certain existing property, plant and equipment and deferred revenue for railcar transactions previously not qualifying as sales due to continuing involvement, that now qualify as sales under the new guidance. The gain associated with this change in accounting, was mostly offset by the recognition of a new guarantee liability. The adoption of this new standard also required the Company to eliminate deferred gains associated with certain sale-leaseback transactions. A cumulative-effect adjustment of $4.4 million was recorded as an increase to retained earnings as of September 1, 2019.

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THE GREENBRIER COMPANIES, INC.

Derivatives and Hedging

In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). This update improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance. The guidance expands the ability to qualify for hedge accounting for non-financial and financial risk components, reduces complexity in fair value hedges of interest rate risk and eliminates the requirement to separately measure and report hedge ineffectiveness, as well as eases certain hedge effectiveness assessment requirements. The Company adopted this guidance effective September 1, 2019 and it did not have a material impact on our consolidated financial statements.

Prospective Accounting Changes

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued Accounting Standard Update 2016-13, Financial Instruments – Credit Losses (ASU 2016-13). This update introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The new guidance will apply to loans, accounts receivable, trade receivables, other financial assets measured at amortized cost, loan commitments and other off-balance sheet credit exposures. The new guidance will also apply to debt securities and other financial assets measured at fair value through other comprehensive income. The new guidance is effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company plans to adopt this guidance beginning September 1, 2020. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.

Note 2 – Revenue Recognition  

Contract balances

Contract assets primarily consist of unbilled receivables related to marine vessel construction and repair services, for which the respective contracts do not yet permit billing at the reporting date. Contract liabilities primarily consist of customer prepayments for manufacturing, maintenance, and other management-type services, for which the Company has not yet satisfied the related performance obligations.

The opening and closing balances of the Company’s contract balances are as follows:

(in thousands)	Balance sheet classification	February 29, 2020		August 31, 2019		$ change
Contract assets	Inventories	$	7,472	$	10,196	$	(2,724	)
Contract liabilities 1	Deferred revenue	$	55,844	$	52,118	$	3,726

¹ Contract liabilities balance includes deferred revenue within the scope of Topic 606.

For the three and six months ended February 29, 2020, the Company recognized $3.8 million and $24.5 million of revenue that was included in Contract liabilities as of August 31, 2019.

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THE GREENBRIER COMPANIES, INC.

Performance obligations

As of February 29, 2020, the Company has entered into contracts with customers for which revenue has not yet been recognized. The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods.

(in millions)	February 29, 2020
Revenue type:
Manufacturing – Railcar sales	$	2,698.1
Manufacturing – Marine	$	58.8
Services	$	140.1
Other	$	43.6
Manufacturing – Railcars intended for syndication 1	$	261.5

¹ Not a performance obligation as defined in Topic 606: Contracts with Customers

Based on current production and delivery schedules and existing contracts, approximately $0.9 billion of the Railcar sales amount is expected to be recognized in the remaining six months of 2020 while the remaining amount is expected to be recognized through 2024. The table above excludes estimated revenue to be recognized at the Company’s Brazilian manufacturing operation, as they are accounted for under the equity method.

Revenue amounts reflected in Railcars intended for syndication may be syndicated to third parties or held in the Company’s fleet depending on a variety of factors.

Marine revenue is expected to be recognized through 2021 as vessel construction is completed.

Services includes management and maintenance services of which approximately 51% are expected to be performed through 2024 and the remaining amount through 2037.

Note 3 – Acquisitions

Manufacturing business of American Railcar Industries, Inc. (ARI)

On July 26, 2019, the Company completed its acquisition of the manufacturing business of ARI for a purchase price of approximately $417.2 million. In connection with the acquisition, the Company acquired two railcar manufacturing facilities in Arkansas, as well as other facilities which produce a range of railcar components and parts and create enhanced vertical integration for our manufacturing operations. The purchase price included approximately $8.5 million for capital expenditures on railcar lining operations and other facility improvements. Included in the acquisition were equity interests in two railcar component manufacturing businesses which Greenbrier accounts for under the equity method of accounting and recognized at their respective fair value as investments in unconsolidated affiliates.

The purchase price was funded by, and consisted of, a combination of cash on hand, the proceeds of a $300 million secured term loan, the issuance to the seller of a $50 million senior convertible note and a payable to the seller for a working capital true-up amount.

For the six months ended February 29, 2020, the operations contributed by ARI’s manufacturing business generated revenues of $210.7 million and a net loss of $1.5 million, which are reported in the Company’s consolidated financial statements as part of the Manufacturing segment.

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THE GREENBRIER COMPANIES, INC.

The preliminary purchase price of the net assets acquired from ARI was allocated as follows:    

(in thousands)
Accounts receivable, net	$	27,659
Inventories		98,053
Property, plant and equipment, net		225,045
Investments in unconsolidated affiliates		40,314
Intangibles and other assets, net		36,785
Goodwill		56,514
Total assets acquired		484,370
Total liabilities assumed		67,174
Net assets acquired	$	417,196

The above purchase price allocation, including the residual amount allocated to goodwill, is based on preliminary information and is subject to change as additional information is obtained related to the amounts allocated to the assets acquired and liabilities assumed. As a result of the proximity of the acquisition date to August 31, 2019 and as we did not acquire 100% of ARI, the values of all assets acquired and liabilities assumed are preliminary. During the measurement period, which may extend up to 12 months after the date of acquisition, the Company will adjust these assets and liabilities if new information is obtained about the facts and circumstances that existed as of the acquisition date and revised amounts will be recorded as of that date. The effect of measurement period adjustments to the estimated amounts will be reflected on a prospective basis and were not material during the three months ended February 29, 2020.

The identified intangible assets assumed in the acquisition were recognized as follows:

(in thousands)	Fair value		Weighted average estimated useful life (in years)
Trademarks and patents	$	19,500		9
Customer and supplier relationships		16,071		7
Identified intangible assets subject to amortization		35,571
Other identified intangible assets not subject to    amortization		860
Total identified intangible assets	$	36,431

Note 4 – Inventories

Inventories are valued at the lower of cost or net realizable value using the first-in first-out method. Work-in-process includes material, labor and overhead. Finished goods includes completed wheels, parts and railcars not on lease or in transit. The following table summarizes the Company’s inventory balance:

(In thousands)	February 29, 2020			August 31, 2019
Manufacturing supplies and raw materials	$	352,291		$	387,015
Work-in-process		161,616			156,614
Finished goods		206,035			130,576
Excess and obsolete adjustment		(10,827	)		(9,512	)
	$	709,115		$	664,693

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THE GREENBRIER COMPANIES, INC.

Note 5 – Intangibles and Other Assets, net

Intangible assets that are determined to have finite lives are amortized over their useful lives. Intangible assets with indefinite useful lives are not amortized and are periodically evaluated for impairment.  

The following table summarizes the Company’s identifiable intangible and other assets balance:

(In thousands)	February 29, 2020			August 31, 2019
Intangible assets subject to amortization:
Customer relationships	$	89,722		$	89,722
Accumulated amortization		(52,691	)		(48,850	)
Other intangibles		33,845			34,031
Accumulated amortization		(8,188	)		(6,908	)
		62,688			67,995
Intangible assets not subject to amortization		5,107			5,450
Prepaid and other assets		18,779			15,749
Operating lease ROU assets		34,624			—
Nonqualified savings plan investments		31,766			27,967
Revolving notes issuance costs, net		4,095			4,568
Assets held for sale		3,650			3,650
Total Intangible and other assets, net	$	160,709		$	125,379

Amortization expense was $2.7 million and $5.5 million for the three and six months ended February 29, 2020 and $1.4 million and $3.4 million for the three and six months ended February 28, 2019. Amortization expense for the years ending August 31, 2020, 2021, 2022, 2023 and 2024 is expected to be $10.9 million, $10.9 million, $7.6 million, $6.3 million and $6.3 million, respectively.

Note 6 – Revolving Notes

Senior secured credit facilities, consisting of three components, aggregated to $706.0 million as of February 29, 2020.

As of February 29, 2020, a $600.0 million revolving line of credit, maturing June 2024, secured by substantially all the Company’s assets in the U.S. not otherwise pledged as security for term loans, was available to provide working capital and interim financing of equipment, principally for the U.S. and Mexican operations. Advances under this facility bear interest at LIBOR plus 1.50% or Prime plus 0.50% depending on the type of borrowing. Available borrowings under the credit facility are generally based on defined levels of inventory, receivables, property, plant and equipment and leased equipment, as well as total debt to consolidated capitalization and fixed charges coverage ratios.

As of February 29, 2020, lines of credit totaling $56.0 million secured by certain of the Company’s European assets, with variable rates that range from Warsaw Interbank Offered Rate (WIBOR) plus 1.1% to WIBOR plus 1.5% and Euro Interbank Offered Rate (EURIBOR) plus 1.1%, were available for working capital needs of the European manufacturing operations. The European lines of credit include $14.0 million of facilities which are guaranteed by the Company. European credit facilities are regularly renewed. Currently, these European credit facilities have maturities that range from June 2020 through July 2021.

As of February 29, 2020, the Company’s Mexican railcar manufacturing joint venture had two lines of credit totaling $50.0 million. The first line of credit provides up to $30.0 million. Advances under this facility bear interest at LIBOR plus 2.0%. The Mexican railcar manufacturing joint venture will be able to draw against this facility through March 2024. The second line of credit provides up to $20.0 million, of which the Company and its joint venture partner have each guaranteed 50%. Advances under this facility bear interest at LIBOR plus 2.0%. The Mexican railcar manufacturing joint venture will be able to draw amounts available under this facility through June 2021.

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THE GREENBRIER COMPANIES, INC.

As of February 29, 2020, outstanding commitments under the senior secured credit facilities consisted of $27.5 million in letters of credit under the North American credit facility and $37.2 million outstanding under the European credit facilities. As of February 29, 2020, the Company had an aggregate of $451.1 million available to draw down under committed credit facilities.

As of August 31, 2019, outstanding commitments under the senior secured credit facilities consisted of $24.4 million in letters of credit under the North American credit facility and $27.1 million outstanding under the European credit facilities.

Note 7 – Accounts Payable and Accrued Liabilities

(In thousands)	February 29, 2020		August 31, 2019
Trade payables	$	220,123	$	302,009
Other accrued liabilities		105,206		108,939
Operating lease liabilities		35,996		—
Accrued payroll and related liabilities		91,723		106,669
Accrued warranty		46,850		46,678
Income taxes payable		—		4,065
	$	499,898	$	568,360

Note 8 – Warranty Accruals

Warranty costs are estimated and charged to operations to cover a defined warranty period. The estimated warranty cost is based on the history of warranty claims for each particular product type. For new product types without a warranty history, preliminary estimates are based on historical information for similar product types. The warranty accruals, included in Accounts payable and accrued liabilities on the Consolidated Balance Sheets, are reviewed periodically and updated based on warranty trends and expirations of warranty periods.

Warranty accrual activity:

	Three Months						Six Months
(In thousands)	February 29, 2020			February 28, 2019			February 29, 2020			February 28, 2019
Balance at beginning of period	$	47,110		$	26,264		$	46,678		$	27,395
Charged to cost of revenue, net		884			1,412			3,262			2,853
Payments		(1,136	)		(2,612	)		(3,135	)		(4,796	)
Currency translation effect		(8	)		(70	)		45			(458	)
Balance at end of period	$	46,850		$	24,994		$	46,850		$	24,994

Note 9 – Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss, net of tax effect as appropriate, consisted of the following:

(In thousands)	Unrealized Gain (Loss) on Derivative Financial Instruments			Foreign Currency Translation Adjustment			Other			Accumulated Other Comprehensive Loss
Balance, August 31, 2019	$	(8,841	)	$	(34,194	)	$	(1,780	)	$	(44,815	)
Other comprehensive loss before    reclassifications		(1,484	)		(2,278	)		(221	)		(3,983	)
Amounts reclassified from Accumulated other    comprehensive loss		477			—			—			477
Balance, February 29, 2020	$	(9,848	)	$	(36,472	)	$	(2,001	)	$	(48,321	)

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THE GREENBRIER COMPANIES, INC.

The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with financial statement caption, were as follows:

	Three Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Financial Statement Caption
(Gain) loss on derivative financial    instruments:
Foreign exchange contracts	$	(140	)	$	769		Revenue and Cost of revenue
Interest rate swap contracts		369			151		Interest and foreign exchange
		229			920		Total before tax
		(61	)		(219	)	Income tax expense
	$	168		$	701		Net of tax

	Six Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Financial Statement Location
(Gain) loss on derivative financial    instruments:
Foreign exchange contracts	$	101		$	1,257		Revenue and cost of revenue
Interest rate swap contracts		536			295		Interest and foreign exchange
		637			1,552		Total before tax
		(160	)		(382	)	Income tax expense
	$	477		$	1,170		Net of tax

Note 10 – Earnings Per Share

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

	Three Months Ended				Six Months Ended
(In thousands)	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Weighted average basic common shares    outstanding (1)		32,661		32,628		32,645		32,634
Dilutive effect of 2.875% Convertible notes (2)		—		—		—		—
Dilutive effect of 2.25% Convertible notes (3)		—	n/a			—	n/a
Dilutive effect of restricted stock units (4)		821		578		737		515
Weighted average diluted common shares    outstanding		33,482		33,206		33,382		33,149

(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 and six months ended February 29, 2020 and the three and six months ended February 28, 2019 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 and six months ended February 29, 2020 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive.

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THE GREENBRIER COMPANIES, INC.

(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.

Diluted EPS is calculated using the treasury stock method associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved.

	Three Months Ended				Six Months Ended
	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Net earnings attributable to Greenbrier	$	13,629	$	2,765	$	21,298	$	20,721
Weighted average diluted common shares    outstanding		33,482		33,206		33,382		33,149
Diluted earnings per share	$	0.41	$	0.08	$	0.64	$	0.63

Note 11 – Stock Based Compensation

The value of stock based compensation awards is amortized as compensation expense from the date of grant through the earlier of the vesting period or in some instances the recipient’s eligible retirement date. Stock based compensation expense consists of restricted stock unit, restricted stock and phantom stock unit awards.

Stock based compensation expense was $4.1 million and $7.2 million for the three and six months ended February 29, 2020, respectively and $4.1 million and $7.3 million for the three and six months ended February 28, 2019, respectively. Compensation expense is recorded in Selling and administrative expense and Cost of revenue on the Consolidated Statements of Income.

Note 12 – Derivative Instruments

Foreign operations give rise to market risks from changes in foreign currency exchange rates. Foreign currency forward exchange contracts with established financial institutions are utilized to hedge a portion of that risk. Interest rate swap agreements are used to reduce the impact of changes in interest rates on certain debt. The Company’s foreign currency forward exchange contracts and interest rate swap agreements are designated as cash flow hedges, and therefore the effective portion of unrealized gains and losses is recorded in accumulated other comprehensive income or loss.

At February 29, 2020 exchange rates, notional amounts of forward exchange contracts for the purchase of Polish Zlotys and the sale of Euros and Pound Sterling; and the purchase of Mexican Pesos and the sale of U.S. Dollars aggregated to $54.1 million. The fair value of the contracts is included on the Consolidated Balance Sheets as Accounts payable and accrued liabilities when there is a loss, or as Accounts receivable, net when there is a gain. As the contracts mature at various dates through May 2022, any such gain or loss remaining will be recognized in manufacturing revenue or cost of revenue along with the related transactions. In the event that the underlying transaction does not occur or does not occur in the period designated at the inception of the hedge, the amount classified in accumulated other comprehensive loss would be reclassified to the results of operations in Interest and foreign exchange at the time of occurrence. At February 29, 2020 exchange rates, approximately $0.5 million would be reclassified to revenue or cost of revenue in the next year.

At February 29, 2020, an interest rate swap agreement maturing in September 2023 had a notional amount of $107.6 million and an interest rate swap agreement maturing June 2024 had a notional amount of $148.1 million. The fair value of the contracts are included on the Consolidated Balance Sheets in Accounts payable and accrued liabilities when there is a loss, or in Accounts receivable, net when there is a gain. As interest expense on the underlying debt is recognized, amounts corresponding to the interest rate swap are reclassified from Accumulated other comprehensive loss and charged or credited to interest expense. At February 29, 2020 interest rates, approximately $2.9 million would be reclassified to interest expense in the next year.   

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THE GREENBRIER COMPANIES, INC.

Fair Values of Derivative Instruments

	Asset Derivatives					Liability Derivatives
		February 29, 2020		August 31, 2019			February 29, 2020		August 31, 2019
(In thousands)	Balance sheet location	Fair Value		Fair Value		Balance sheet location	Fair Value		Fair Value
Derivatives designated    as hedging    instruments
Foreign forward    exchange contracts	Accounts receivable, net	$	488	$	64	Accounts payable and accrued liabilities	$	194	$	437
Interest rate swap    contracts	Accounts receivable, net		—		—	Accounts payable and accrued liabilities		12,504		10,255
		$	488	$	64		$	12,698	$	10,692
Derivatives not    designated as    hedging instruments
Foreign forward    exchange contracts	Accounts receivable, net	$	39	$	—	Accounts payable and accrued liabilities	$	281	$	587

The Effect of Derivative Instruments on the Statements of Income

Three Months Ended February 29, 2020 and February 28, 2019

Derivatives in cash flow hedging relationships	Location of gain (loss) recognized in income on derivatives	Gain (loss) recognized in income on derivatives three months ended
		February 29, 2020			February 28, 2019
Foreign forward exchange contract	Interest and foreign exchange	$	(165	)	$	115

Derivatives in cash flow hedging relationships	Gain (loss) recognized in OCI on derivatives three months ended,						Location of gain (loss) reclassified from accumulated OCI into income	Gain (loss) reclassified from accumulated OCI into income three months ended						Location of gain (loss) on derivative (amount excluded from effectiveness testing)	Gain (loss) recognized on derivative (amount excluded from effectiveness testing) three months ended
	February 29, 2020			February 28, 2019				February 29, 2020			February 28, 2019				February 29, 2020			February 28, 2019
Foreign forward    exchange contracts	$	190		$	(418	)	Revenue	$	67		$	(411	)	Revenue	$	190		$	638
Foreign forward    exchange contracts		411			1,100		Cost of revenue		73			(358	)	Cost of revenue		210			289
Interest rate swap    contracts		(5,503	)		(1,916	)	Interest and foreign exchange		(369	)		(151	)	Interest and foreign exchange		(116	)		25
	$	(4,902	)	$	(1,234	)		$	(229	)	$	(920	)		$	284		$	952

The following table presents the amounts in the Consolidated Statements of Income in which the effects of the cash flow hedges are recorded and the effects of the cash flow hedge activity on these line items for the three months ended February 29, 2020 and February 28, 2019:

	For The Three Months Ended
	February 29, 2020					February 28, 2019
	Total		Amount of gain (loss) on cash flow hedge activity			Total		Amount of gain (loss) on cash flow hedge activity
Revenue	$	623,848	$	67		$	658,671	$	(411	)
Cost of revenue		537,512		73			604,827		(358	)
Interest and foreign exchange		12,609		(369	)		9,237		(151	)

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THE GREENBRIER COMPANIES, INC.

Six Months Ended February 29, 2020 and February 28, 2019

Derivatives in cash flow hedging relationships	Location of gain (loss) recognized in income on derivatives	Gain (loss) recognized in income on derivatives six months ended
		February 29, 2020			February 28, 2019
Foreign forward exchange contract	Interest and foreign exchange	$	(94	)	$	495

Derivatives in cash flow hedging relationships	Gain (loss) recognized in OCI on derivatives six months ended						Location of gain (loss) reclassified from accumulated OCI into income	Gain (loss) reclassified from accumulated OCI into income six months ended						Location of gain (loss) on derivative amount excluded from effectiveness testing)	Gain (loss) recognized on derivative (amount excluded from effectiveness testing) six months ended
	February 29, 2020			February 28, 2019				February 29, 2020			February 28, 2019				February 29, 2020			February 28, 2019
Foreign forward    exchange contracts	$	763		$	(346	)	Revenue	$	(99	)	$	(667	)	Revenue	$	643		$	900
Foreign forward    exchange contracts		(183	)		(395	)	Cost of revenue		(2	)		(590	)	Cost of revenue		344			678
Interest rate swap    contracts		(2,784	)		(3,689	)	Interest and foreign exchange		(536	)		(295	)	Interest and foreign exchange		(281	)		(22	)
	$	(2,204	)	$	(4,430	)		$	(637	)	$	(1,552	)		$	706		$	1,556

	For The Six Months Ended
	February 29, 2020					February 28, 2019
	Total		Amount of gain (loss) on cash flow hedge activity			Total		Amount of gain (loss) on cash flow hedge activity
Revenue	$	1,393,207	$	(99	)	$	1,263,194	$	(667	)
Cost of revenue		1,214,682		(2	)		1,136,817		(590	)
Interest and foreign exchange		25,461		(536	)		13,641		(295	)

Note 13 – Segment Information

The Company operates in three reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services.

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 2019 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 model. 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.

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THE GREENBRIER COMPANIES, INC.

For the three months ended February 29, 2020:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	489,943	$	21		$	489,964		$	46,105		$	1		$	46,106
Wheels, Repair & Parts		91,225		5,133			96,358			3,320			(168	)		3,152
Leasing & Services		42,680		15,240			57,920			12,793			14,384			27,177
Eliminations		—		(20,394	)		(20,394	)		—			(14,217	)		(14,217	)
Corporate		—		—			—			(23,782	)		—			(23,782	)
	$	623,848	$	—		$	623,848		$	38,436		$	—		$	38,436

For the six months ended February 29, 2020:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	1,147,310	$	118		$	1,147,428		$	99,248		$	(22	)	$	99,226
Wheels, Repair & Parts		177,833		10,984			188,817			4,434			(510	)		3,924
Leasing & Services		68,064		16,989			85,053			22,570			15,673			38,243
Eliminations		—		(28,091	)		(28,091	)		—			(15,141	)		(15,141	)
Corporate		—		—			—			(46,032	)		—			(46,032	)
	$	1,393,207	$	—		$	1,393,207		$	80,220		$	—		$	80,220

For the three months ended February 28, 2019:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	476,019	$	46,855		$	522,874		$	13,990		$	2,358		$	16,348
Wheels, Repair & Parts		125,278		8,858			134,136			2,823			(858	)		1,965
Leasing & Services		57,374		2,911			60,285			21,030			2,101			23,131
Eliminations		—		(58,624	)		(58,624	)		—			(3,601	)		(3,601	)
Corporate		—		—			—			(19,789	)		—			(19,789	)
	$	658,671	$	—		$	658,671		$	18,054		$	—		$	18,054

For the six months ended February 28, 2019:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	947,808	$	53,056		$	1,000,864		$	50,845		$	2,791		$	53,636
Wheels, Repair & Parts		233,821		24,839			258,660			6,070			(546	)		5,524
Leasing & Services		81,565		8,910			90,475			38,543			7,553			46,096
Eliminations		—		(86,805	)		(86,805	)		—			(9,798	)		(9,798	)
Corporate		—		—			—			(40,950	)		—			(40,950	)
	$	1,263,194	$	—		$	1,263,194		$	54,508		$	—		$	54,508

	Total assets
(In thousands)	February 29, 2020		August 31, 2019
Manufacturing	$	1,535,118	$	1,606,571
Wheels, Repair & Parts		314,069		306,725
Leasing & Services		897,745		708,799
Unallocated		200,728		368,542
	$	2,947,660	$	2,990,637

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THE GREENBRIER COMPANIES, INC.

Reconciliation of Earnings from operations to Earnings before income tax and earnings (loss) from unconsolidated affiliates:

	Three Months Ended				Six Months Ended
(In thousands)	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Earnings from operations	$	38,436	$	18,054	$	80,220	$	54,508
Interest and foreign exchange		12,609		9,237		25,461		13,641
Earnings before income tax and earnings (loss)    from unconsolidated affiliates	$	25,827	$	8,817	$	54,759	$	40,867

Note 14 – Leases

Lessor

Equipment on operating leases is reported net of accumulated depreciation of $32.9 million and $44.2 million as of February 29, 2020 and August 31, 2019, respectively. Depreciation expense was $3.0 million and $6.6 million for the three and six months ended February 29, 2020. In addition, certain railcar equipment leased-in by the Company on operating leases is subleased to customers under non-cancelable operating leases with lease terms ranging from one to five years. Operating lease rental revenues included in the Company’s Statement of Income for the three and six months ended February 29, 2020 was $9.8 million and $21.2 million, which included $2.8 million and $6.5 million, respectively, of revenue as a result of daily, monthly or car hire utilization arrangements.

Aggregate minimum future amounts receivable under all non-cancelable operating leases and subleases at February 29, 2020, will mature as follows:

(in thousands)
Remaining six months of 2020	$	12,272
2021		22,314
2022		20,372
2023		14,812
2024		11,135
Thereafter		22,009
	$	102,914

Lessee

The Company leases railcars, real estate, and certain equipment under operating and, to a lesser extent, finance lease arrangements. As of and for the three and six months ended February 29, 2020, finance leases were not a material component of the Company's lease portfolio. The Company’s real estate and equipment leases have remaining lease terms ranging from less than one year to 79 years, with some including options to extend up to 15 years. The Company recognizes a lease liability and corresponding right-of-use (ROU) asset based on the present value of lease payments. To determine the present value of lease payments, as most of its leases do not provide a readily determinable implicit rate, the Company’s incremental borrowing rate is used to discount the lease payments based on information available at lease commencement date. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when estimating its incremental borrowing rate.

The components of operating lease costs were as follows:

(in thousands)	Three months ended February 29, 2020		Six months ended February 29, 2020
Operating lease expense	$	3,424	$	6,850
Short-term lease expense		3,217		4,730
Total	$	6,641	$	11,580

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THE GREENBRIER COMPANIES, INC.

Aggregate minimum future amounts payable under operating leases having initial or remaining non-cancelable terms at February 29, 2020 will mature as follows:

(in thousands)
Remaining six months of 2020	$	6,153
2021		8,988
2022		5,935
2023		5,433
2024		3,948
Thereafter		10,436
Total lease payments	$	40,893
Less: Imputed interest		(4,897	)
Total lease obligations	$	35,996

The table below presents additional information related to the Company’s leases:

Weighted average remaining lease term
Operating leases	14.4 years
Weighted average discount rate
Operating leases		3.2	%

Supplemental cash flow information related to leases were as follows:

(in thousands)	Six months ended February 29, 2020
Cash paid for amounts included in the measurement    of lease liabilities
Operating cash flows from operating leases	$	7,432

Note 15 – Commitments and Contingencies

Portland Harbor Superfund Site

The Company's Portland, Oregon manufacturing facility is located adjacent to the Willamette River. In December 2000, the U.S. Environmental Protection Agency (EPA) classified portions of the Willamette River bed known as the Portland Harbor, including the portion fronting the Company's manufacturing facility, as a federal "National Priority List" or "Superfund" site due to sediment contamination (the Portland Harbor Site). The Company and more than 140 other parties have received a "General Notice" of potential liability from the EPA relating to the Portland Harbor Site. The letter advised the Company that it may be liable for the costs of investigation and remediation (which liability may be joint and several with other potentially responsible parties) as well as for natural resource damages resulting from releases of hazardous substances to the site. Ten private and public entities, including the Company (the Lower Willamette Group or LWG), signed an Administrative Order on Consent (AOC) to perform a remedial investigation/feasibility study (RI/FS) of the Portland Harbor Site under EPA oversight, and several additional entities have not signed such consent, but nevertheless contributed money to the effort. The EPA-mandated RI/FS was produced by the LWG and cost over $110 million during a 17-year period. The Company bore a percentage of the total costs incurred by the LWG in connection with the investigation. The Company's aggregate expenditure during the 17-year period was not material. Some or all of any such outlay may be recoverable from other responsible parties. The EPA issued its Record of Decision (ROD) for the Portland Harbor Site on January 6, 2017 and accordingly on October 26, 2017, the AOC was terminated.

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THE GREENBRIER COMPANIES, INC.

Separate from the process described above, which focused on the type of remediation to be performed at the Portland Harbor Site and the schedule for such remediation, 83 parties, including the State of Oregon and the federal government, entered into a non-judicial mediation process to try to allocate costs associated with remediation of the Portland Harbor site. Approximately 110 additional parties signed tolling agreements related to such allocations. On April 23, 2009, the Company and the other AOC signatories filed suit against 69 other parties due to a possible limitations period for some such claims; Arkema Inc. et al v. A & C Foundry Products, Inc. et al, U.S. District Court, District of Oregon, Case #3:09-cv-453-PK. All but 12 of these parties elected to sign tolling agreements and be dismissed without prejudice, and the case has been stayed by the court until January 14, 2022.

The EPA's January 6, 2017 ROD identifies a clean-up remedy that the EPA estimates will take 13 years of active remediation, followed by 30 years of monitoring with an estimated undiscounted cost of $1.7 billion. The EPA typically expects its cost estimates to be accurate within a range of -30% to +50%, but this ROD states that changes in costs are likely to occur as a result of new data it wants to collect over a 2-year period prior to final remedy design. The ROD identifies 13 Sediment Decision Units. One of the units, RM9W, includes the nearshore area of the river sediments offshore of the Company's Portland, Oregon manufacturing facility as well as upstream and downstream of the facility. It also includes a portion of the Company's riverbank. The ROD does not break down total remediation costs by Sediment Decision Unit. The EPA's ROD concluded that more data was needed to better define clean-up scope and cost. On December 8, 2017, the EPA announced that Portland Harbor is one of 21 Superfund sites targeted for greater attention. On December 19, 2017, the EPA announced that it had entered a new AOC with a group of four potentially responsible parties to conduct additional sampling during 2018 and 2019 to provide more certainty about clean-up costs and aid the mediation process to allocate those costs. The parties to the mediation, including the Company, agreed to help fund the additional sampling, which is now complete. The EPA has also requested that potentially responsible parties enter AOCs during 2019 agreeing to conduct remedial design studies. Some parties have signed AOCs and several other parties including the Company have engaged in discussions with EPA regarding the terms of such AOCs. The allocation process is continuing in parallel with the process to define the remediation steps.

The ROD does not address responsibility for the costs of clean-up, nor does it allocate such costs among the potentially responsible parties. Responsibility for funding and implementing the EPA's selected cleanup remedy will be determined at an unspecified later date. Based on the investigation to date, the Company believes that it did not contribute in any material way to contamination in the river sediments or the damage of natural resources in the Portland Harbor Site and that the damage in the area of the Portland Harbor Site adjacent to its property precedes its ownership of the Portland, Oregon manufacturing facility. Because these environmental investigations are still underway, including the collection of new pre-remedial design sampling data by EPA, sufficient information is currently not available to determine the Company's liability, if any, for the cost of any required remediation or restoration of the Portland Harbor Site or to estimate a range of potential loss. Based on the results of the pending investigations and future assessments of natural resource damages, the Company may be required to incur costs associated with additional phases of investigation or remedial action, and may be liable for damages to natural resources. In addition, the Company may be required to perform periodic maintenance dredging in order to continue to launch vessels from its launch ways in Portland, Oregon, on the Willamette River, and the river's classification as a Superfund site could result in some limitations on future dredging and launch activities. Any of these matters could adversely affect the Company's business and Consolidated Financial Statements, or the value of its Portland property.

On January 30, 2017 the Confederated Tribes and Bands of Yakama Nation sued 33 parties including the Company as well as the United States and the State of Oregon for costs it incurred in assessing alleged natural resource damages to the Columbia River from contaminants deposited in Portland Harbor. Confederated Tribes and Bands of the Yakama Nation v. Air Liquide America Corp., et al., United States Court for the District of Oregon Case No. 3i17-CV-00164-SB. The complaint does not specify the amount of damages the plaintiff will seek. The case has been stayed until the allocation process is concluded.

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THE GREENBRIER COMPANIES, INC.

Oregon Department of Environmental Quality (DEQ) Regulation of Portland Manufacturing Operations

The Company has entered into a Voluntary Cleanup Agreement with the Oregon Department of Environmental Quality (DEQ) in which the Company agreed to conduct an investigation of whether, and to what extent, past or present operations at the Portland property may have released hazardous substances into the environment. The Company has also signed an Order on Consent with the DEQ to finalize the investigation of potential onsite sources of contamination that may have a release pathway to the Willamette River. Interim precautionary measures are also required in the order and the Company is discussing with the DEQ potential remedial actions which may be required. The Company's aggregate expenditure has not been material, however the Company could incur significant expenses for remediation. Some or all of any such outlay may be recoverable from other responsible parties.

Other Litigation, Commitments and Contingencies

In connection with the acquisition of the manufacturing business of ARI, the Company agreed to assume potential legacy liabilities (known and unknown) related to railcars manufactured by ARI. Among these potential liabilities are certain retrofit and repair obligations arising from regulatory actions by the Federal Railroad Administration and the Association of American Railroads. In some cases, the seller shares with the Company the costs of these retrofit and repair obligations. The Company currently is not able to determine if any of these liabilities will have a material adverse impact on the Company’s results of operations.

From time to time, Greenbrier is involved as a defendant in litigation in the ordinary course of business, the outcomes of which cannot be predicted with certainty. While the ultimate outcome of such legal proceedings cannot be determined at this time, the Company believes that the resolution of pending litigation will not have a material adverse effect on the Company's Consolidated Financial Statements.

As of February 29, 2020, the Company had outstanding letters of credit aggregating to $27.5 million associated with performance guarantees, facility leases and workers compensation insurance.

As of February 29, 2020, the Company had a $4.5 million note receivable from Amsted-Maxion Cruzeiro, its unconsolidated Brazilian castings and components manufacturer. This note receivable is included on the Consolidated Balance Sheet in Accounts receivable, net. In the future, the Company may make loans to or provide guarantees for Amsted-Maxion Cruzeiro or Greenbrier-Maxion, its unconsolidated Brazilian railcar manufacturer.

Note 16 – Fair Value Measures

Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value, for this disclosure, is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

Level 1 - observable inputs such as unadjusted quoted prices in active markets for identical instruments;

Level 2 - inputs, other than the quoted market prices in active markets for similar instruments, which are observable, either directly or indirectly; and

Level 3 - unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions.

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THE GREENBRIER COMPANIES, INC.

Assets and liabilities measured at fair value on a recurring basis as of February 29, 2020 were:

(In thousands)	Total		Level 1		Level 2 (1)		Level 3
Assets:
Derivative financial instruments	$	527	$	—	$	527	$	—
Nonqualified savings plan investments		31,766		31,766		—		—
Cash equivalents		23,166		23,166		—		—
	$	55,459	$	54,932	$	527	$	—
Liabilities:
Derivative financial instruments	$	12,979	$	—	$	12,979	$	—

(1) Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 12 - Derivative Instruments for further discussion.

Assets and liabilities measured at fair value on a recurring basis as of August 31, 2019 were:

(In thousands)	Total		Level 1		Level 2		Level 3
Assets:
Derivative financial instruments	$	64	$	—	$	64	$	—
Nonqualified savings plan investments		27,967		27,967		—		—
Cash equivalents		68,100		68,100		—		—
	$	96,131	$	96,067	$	64	$	—
Liabilities:
Derivative financial instruments	$	11,279	$	—	$	11,279	$	—

Note 17 – Related Party Transactions

In June 2017, the Company purchased a 40% interest in the common equity of an entity that buys and sells railcar assets that are leased to third parties. The railcars sold to this leasing warehouse are principally built by Greenbrier. The Company accounts for this leasing warehouse investment under the equity method of accounting. As of February 29, 2020, the carrying amount of the investment was $5.4 million which is classified in Investment in unconsolidated affiliates in the Consolidated Balance Sheet. Upon sale of railcars to this entity from Greenbrier, 60% of the related revenue and margin is recognized and 40% is deferred until the railcars are ultimately sold by the entity. There were no sales to or from this entity during the three and six months ended February 29, 2020. The Company recognized $18.2 million in revenue associated with railcars sold into the leasing warehouse during the three and six months ended February 28, 2019. The Company also recognized $1.6 million and $5.6 million in revenue associated with railcars sold out of the leasing warehouse during the three and six months ended February 28, 2019. The Company also provides administrative and remarketing services to this entity and earns management fees for these services which were immaterial for the six months ended February 29, 2020 and February 28, 2019.

On November 1, 2019, the Company increased its ownership interest in Amsted-Maxion Cruzeiro from 24.5% to 29.5%. This transaction included a conversion to equity of $4.8 million from a note receivable, including accrued interest, and a re-payment to the Company of $1.5 million which was used to acquire the additional 5% ownership interest. As of February 29, 2020, the Company had a remaining $4.5 million note receivable due from Amsted-Maxion Cruzeiro, its unconsolidated Brazilian castings and components manufacturer. This note receivable is included on the Consolidated Balance Sheet in Accounts receivable, net.

The Company has a 41.9% interest in Axis, LLC (Axis), a joint venture. The Company obtained its ownership interest in Axis as part of the acquisition of the manufacturing business of ARI on July 26, 2019. For the three and six months ended February 29, 2020, the Company purchased $3.2 million and $7.2 million of railcar components from Axis.

25

THE GREENBRIER COMPANIES, INC.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executive Summary

We operate in three reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services. Our segments are operationally integrated. The Manufacturing segment, which currently operates from facilities in the U.S., Mexico, Poland, Romania and Turkey, produces double-stack intermodal railcars, tank cars, conventional railcars, automotive railcar products and marine vessels. The Wheels, Repair & Parts segment performs wheel and axle servicing; railcar repair, refurbishment and maintenance; as well as production of a variety of parts for the rail industry in North America. The Leasing & Services segment owns approximately 10,300 railcars and provides management services for approximately 389,000 railcars for railroads, shippers, carriers, institutional investors and other leasing and transportation companies in North America as of February 29, 2020. Through unconsolidated affiliates we produce rail and industrial components and have an ownership stake in a railcar manufacturer in Brazil and a lease financing warehouse.

Our total manufacturing backlog of railcar units, for direct sale or lease to a third party, as of February 29, 2020 was approximately 30,800 units with an estimated value of $3.16 billion. Approximately 9% of backlog units and 6% of estimated backlog value as of February 29, 2020 were associated with our Brazilian manufacturing operations which are accounted for under the equity method. Backlog units for lease may be syndicated to third parties or held in our own fleet depending on a variety of factors. Multi-year supply agreements are common in the rail industry. A portion of the orders included in backlog reflects an assumed product mix. Under the terms of the orders, the exact mix and pricing will be determined in the future, which may impact backlog. Marine backlog as of February 29, 2020 was $59 million.

Our backlog of railcar units and marine vessels is not necessarily indicative of future results of operations. Certain orders in backlog are subject to customary documentation and completion of terms. Customers may attempt to cancel or modify orders in backlog. Historically, little variation has been experienced between the quantity ordered and the quantity actually delivered, though the timing of deliveries may be modified from time to time. We cannot guarantee that our reported backlog will convert to revenue in any particular period, if at all.

We expect that the COVID-19 coronavirus pandemic and the related governmental reaction will negatively impact our business including our liquidity and financial position, results of operations, stock price and ability to convert backlog to revenue among other negative impacts. These risks to our business are more fully described in Part II, item 1A “Risk Factors” of this Quarterly Report on Form 10-Q. We are closely monitoring the impact of COVID-19 on all aspects of our business. COVID-19 emerged in Asia at the end of calendar year 2019. Because we have no operations in Asia, the negative impact of COVID-19 did not materially impact our financial condition and results of operations during our quarter ended February 29, 2020. Our business operates within a critical infrastructure sector as established by the Cybersecurity & Infrastructure Security Agency of the Department of Homeland Security. Thus, as of the date of the filing of this Quarterly Report our manufacturing, repair shops, and wheel shops in the United States generally are permitted to continue to operate subject to enhanced safety protocols, both voluntary and government mandated, that are aimed to protect the health of our workforce. The situation is similar in our manufacturing facilities and shops in Mexico, Europe, Brazil and Turkey which also have continued to operate subject to enhanced health and safety protocols. At this time, while we have identified risks discussed in Part II, Item 2A of this Quarterly Report on Form 10-Q, we are unable to predict specifically how the COVID-19 coronavirus pandemic and related governmental reaction will negatively impact our business due to numerous uncertainties, including the duration of the pandemic, the impact to our customers, suppliers and employees, actions that may be taken by governmental authorities, including preventing or curtailing the operations of our plants and/or shops, and other consequences. We expect that negative impacts related to the COVID-19 coronavirus pandemic will be reflected in our Quarterly Report on Form 10-Q for the quarter ended May 31, 2020.

26

THE GREENBRIER COMPANIES, INC.

Three Months Ended February 29, 2020 Compared to the Three Months Ended February 28, 2019

Overview

Revenue, cost of revenue, margin and operating profit presented below, include amounts from external parties and exclude intersegment activity that is eliminated in consolidation.

	Three Months Ended
(In thousands)	February 29, 2020			February 28, 2019
Revenue:
Manufacturing	$	489,943		$	476,019
Wheels, Repair & Parts		91,225			125,278
Leasing & Services		42,680			57,374
		623,848			658,671
Cost of revenue:
Manufacturing		422,309			442,996
Wheels, Repair & Parts		84,373			118,455
Leasing & Services		30,830			43,376
		537,512			604,827
Margin:
Manufacturing		67,634			33,023
Wheels, Repair & Parts		6,852			6,823
Leasing & Services		11,850			13,998
		86,336			53,844
Selling and administrative		54,597			47,892
Net gain on disposition of equipment		(6,697	)		(12,102	)
Earnings from operations		38,436			18,054
Interest and foreign exchange		12,609			9,237
Earnings before income taxes and earnings (loss)    from unconsolidated affiliates		25,827			8,817
Income tax expense		(7,463	)		(2,248	)
Earnings before earnings (loss) from unconsolidated    affiliates		18,364			6,569
Earnings (loss) from unconsolidated affiliates		1,651			(786	)
Net earnings		20,015			5,783
Net earnings attributable to noncontrolling interest		(6,386	)		(3,018	)
Net earnings attributable to Greenbrier	$	13,629		$	2,765
Diluted earnings per common share	$	0.41		$	0.08

Performance for our segments is evaluated based on Earnings from operations (operating profit). 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 model. Management does not allocate Interest and foreign exchange or Income tax expense for either external or internal reporting purposes.

	Three Months Ended
(In thousands)	February 29, 2020			February 28, 2019
Operating profit (loss):
Manufacturing	$	46,105		$	13,990
Wheels, Repair & Parts		3,320			2,823
Leasing & Services		12,793			21,030
Corporate		(23,782	)		(19,789	)
	$	38,436		$	18,054

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THE GREENBRIER COMPANIES, INC.

Consolidated Results

	Three Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Increase (Decrease)			% Change
Revenue	$	623,848		$	658,671		$	(34,823	)		(5.3	%)
Cost of revenue	$	537,512		$	604,827		$	(67,315	)		(11.1	%)
Margin (%)		13.8	%		8.2	%		5.6	%	*
Net earnings attributable to Greenbrier	$	13,629		$	2,765		$	10,864			392.9	%

* Not meaningful

As of July 26, 2019, the consolidated results included the results of the manufacturing business of ARI. This increased revenue and cost of revenue for the three months ended February 29, 2020 compared to the prior year.

Through our integrated business model, we provide a broad range of custom products and services in each of our segments, which have various average selling prices and margins. The demand for and mix of products and services delivered changes from period to period, which causes fluctuations in our results of operations.

The 5.3% decrease in revenue for the three months ended February 29, 2020 as compared to the three months ended February 28, 2019 was primarily due to a 27.2% decrease in Wheels, Repair & Parts revenue from lower wheelset, component and parts volumes due to lower demand, lower repair revenue from four fewer shops in the current period and a decrease in scrap metal pricing.

The 11.1% decrease in cost of revenue for the three months ended February 29, 2020 as compared to the three months ended February 28, 2019 was primarily due to a 28.8% decrease in Wheels, Repair & Parts cost of revenue from lower costs associated with a reduction in wheelset, component and parts volumes and four fewer repair shops in the current period. The decrease in cost of revenue was also due to a 4.7% decline in Manufacturing cost of revenue primarily attributed to a 17.8% decrease in the volume of railcar deliveries.

Margin as a percentage of revenue was 13.8% and 8.2% for the three months ended February 29, 2020 and February 28, 2019, respectively. The overall margin as a percentage of revenue was positively impacted by an increase in Manufacturing margin to 13.8% from 6.9% primarily attributed to a change in product mix and a customer order contract modification fee received during the three months ended February 29, 2020.

The $10.9 million increase in Net earnings attributable to Greenbrier for the three months ended February 29, 2020 as compared to the three months ended February 28, 2019 was primarily attributable to an increase in margin from a change in product mix and the contract modification fee received during the three months ended February 29, 2020. This was partially offset by an increase in Selling and administrative expense from higher employee related costs and the addition of the manufacturing business of ARI selling and administrative costs. The increase in Net earnings attributable to Greenbrier was also partially offset by a decrease in Net gain on disposition of equipment.

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THE GREENBRIER COMPANIES, INC.

Manufacturing Segment

	Three Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Increase (Decrease)			% Change
Revenue	$	489,943		$	476,019		$	13,924			2.9	%
Cost of revenue	$	422,309		$	442,996		$	(20,687	)		(4.7	%)
Margin (%)		13.8	%		6.9	%		6.9	%	*
Operating profit ($)	$	46,105		$	13,990		$	32,115			229.6	%
Operating profit (%)		9.4	%		2.9	%		6.5	%	*
Deliveries		3,700			4,500			(800	)		(17.8	%)

* Not meaningful

As of July 26, 2019, the Manufacturing segment included the results of the manufacturing business of ARI which is consolidated for financial reporting purposes. This increased Manufacturing revenue and cost of revenue for the three months ended February 29, 2020 compared to the prior year.

Manufacturing revenue increased $13.9 million or 2.9% for the three months ended February 29, 2020 compared to the three months ended February 28, 2019. The increase in revenue was primarily attributed to a change in product mix and a $12.9 million customer order contract modification fee received during the three months ended February 29, 2020. These were partially offset by a 17.8% decrease in railcar deliveries. Manufacturing revenue for the three months ended February 29, 2020 included $107.2 million in revenue associated with the acquired manufacturing business of ARI.

Manufacturing cost of revenue decreased $20.7 million or 4.7% for the three months ended February 29, 2020 compared to the three months ended February 28, 2019. The decrease in cost of revenue was primarily attributed to a 17.8% decrease in the volume of railcar deliveries partially offset by a change in product mix. Manufacturing cost of revenue for the three months ended February 29, 2020 included $104.9 million in costs associated with the acquired manufacturing business of ARI.

Manufacturing margin as a percentage of revenue increased 6.9% for the three months ended February 29, 2020 compared to the three months ended February 28, 2019. The increase was primarily attributed to a change in product mix and the contract modification fee received during the three months ended February 29, 2020. The Manufacturing margin as a percentage of revenue for the three months ended February 28, 2019 was negatively impacted by railcar contract loss accruals in the prior year.

Manufacturing operating profit increased $32.1 million or 229.6% for the three months ended February 29, 2020 compared to the three months ended February 28, 2019. The increase in operating profit was primarily attributed to a change in product mix and the contract modification fee received during the three months ended February 29, 2020. Operating profit for the three months ended February 28, 2019 was negatively impacted by railcar contract loss accruals in the prior year.

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THE GREENBRIER COMPANIES, INC.

Wheels, Repair & Parts Segment

	Three Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Increase (Decrease)			% Change
Revenue	$	91,225		$	125,278		$	(34,053	)		(27.2	%)
Cost of revenue	$	84,373		$	118,455		$	(34,082	)		(28.8	%)
Margin (%)		7.5	%		5.4	%		2.1	%	*
Operating profit ($)	$	3,320		$	2,823		$	497			17.6	%
Operating profit (%)		3.6	%		2.3	%		1.3	%	*

* Not meaningful

Wheels, Repair & Parts revenue decreased $34.1 million or 27.2% for the three months ended February 29, 2020 compared to the three months ended February 28, 2019. The decrease was primarily due to lower wheelset, component and parts volumes due to lower demand, lower repair revenue primarily from four fewer shops in the current period and a decrease in scrap metal pricing.

Wheels, Repair & Parts cost of revenue decreased $34.1 million or 28.8% for the three months ended February 29, 2020 compared to the three months ended February 28, 2019. The decrease was primarily due to lower costs associated with a reduction in wheelset, component and parts volumes and four fewer repair shops in the current period.

Wheels, Repair & Parts margin as a percentage of revenue increased 2.1% for the three months ended February 29, 2020 compared to the three months ended February 28, 2019. The increase was primarily attributed to efficiencies at our repair shops in the current period. In addition, the three months ended February 28, 2019 was negatively impacted by costs associated with closing sites in our repair network. These factors which had a positive impact to Wheels, Repair & Parts margin as a percentage of revenue compared to the prior year, were partially offset by a decrease in scrap metal pricing for the three months ended February 29, 2020.

Wheels, Repair & Parts operating profit increased $0.5 million or 17.6% for the three months ended February 29, 2020 compared to the three months ended February 28, 2019. The increase was primarily due to efficiencies at our repair shops in the current period.

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THE GREENBRIER COMPANIES, INC.

Leasing & Services Segment

	Three Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Increase (Decrease)			% Change
Revenue	$	42,680		$	57,374		$	(14,694	)		(25.6	%)
Cost of revenue	$	30,830		$	43,376		$	(12,546	)		(28.9	%)
Margin (%)		27.8	%		24.4	%		3.4	%	*
Operating profit ($)	$	12,793		$	21,030		$	(8,237	)		(39.2	%)
Operating profit (%)		30.0	%		36.7	%		(6.7	%)	*

* Not meaningful

The Leasing & Services segment generates revenue from leasing railcars from its lease fleet, providing various management services, interim rent on leased railcars for syndication, and the sale of railcars purchased from third parties with the intent to resell. The gross proceeds from the sale of these railcars are recorded in revenue and the costs of purchasing these railcars are recorded in cost of revenue.

Leasing & Services revenue decreased $14.7 million or 25.6% for the three months ended February 29, 2020 compared to the three months ended February 28, 2019. The decrease was primarily attributed to a decrease in the sale of railcars which we had purchased from third parties with the intent to resell. This was partially offset by higher average volume of rent-producing leased railcars for syndication.

Leasing & Services cost of revenue decreased $12.5 million or 28.9% for the three months ended February 29, 2020 compared to the three months ended February 28, 2019. The decrease was primarily due to a decrease in the volume of railcars sold that we purchased from third parties partially offset by higher transportation costs.

Leasing & Services margin as a percentage of revenue increased 3.4% for the three months ended February 29, 2020 compared to the three months ended February 28, 2019. Margin as a percentage of revenue for the three months ended February 29, 2020 benefited from fewer sales of railcars that we purchased from third parties which have lower margin percentages. The increase in margin as a percentage of revenue was also due to a higher average volume of rent-producing leased railcars for syndication.

Leasing & Services operating profit decreased $8.2 million or 39.2% for the three months ended February 29, 2020 compared to the three months ended February 28, 2019. The decrease was primarily attributed to a $5.4 million decrease in net gain on disposition of equipment and a $2.1 million decrease in margin.

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THE GREENBRIER COMPANIES, INC.

Selling and Administrative Expense

	Three Months Ended
(In thousands)	February 29, 2020		February 28, 2019		Increase (Decrease)		% Change
Selling and administrative expense	$	54,597	$	47,892	$	6,705		14.0	%

Selling and administrative expense was $54.6 million or 8.8% of revenue for the three months ended February 29, 2020 compared to $47.9 million or 7.3% of revenue for the prior comparable period. The $6.7 million increase was primarily attributed to a $5.3 million increase in employee related costs and $2.8 million from the addition of the manufacturing business of ARI selling and administrative costs. These were partially offset by $2.1 million in transaction related costs incurred during the three months ended February 28, 2019.

Net Gain on Disposition of Equipment

Net gain on disposition of equipment was $6.7 million for the three months ended February 29, 2020 compared to $12.1 million for the prior comparable period. Net gain on disposition of equipment primarily includes the sale of assets from our lease fleet (Equipment on operating leases, net) that are periodically sold in the normal course of business in order to take advantage of market conditions and to manage risk and liquidity; and disposition of property, plant and equipment.  

Other Costs

Interest and foreign exchange expense was composed of the following:

	Three Months Ended
(In thousands)	February 29, 2020		February 28, 2019		Increase (Decrease)
Interest and foreign exchange:
Interest and other expense	$	10,329	$	7,617	$	2,712
Foreign exchange loss		2,280		1,620		660
	$	12,609	$	9,237	$	3,372

The $3.4 million increase in interest and foreign exchange expense from the prior comparable period was primarily attributed to interest expense associated with our $300 million of senior term debt issued in July 2019.  

Income Tax

The effective tax rate for the three months ended February 29, 2020 was 28.9% compared to 25.5% for the three months ended February 28, 2019. The increase in the effective rate from the prior year was primarily attributable to net unfavorable discrete items in the current quarter compared to net favorable discrete items in the prior comparable period. Excluding the impact of discrete items in both periods, the effective tax rate was 25.5% for the three months ended February 29, 2020 compared to 29.8% in the prior comparable period which decreased primarily due to the geographic mix of earnings.

The effective tax rate can fluctuate year-to-year due to changes in the mix of foreign and domestic pre-tax earnings. It can also fluctuate with changes in the proportion of pre-tax earnings attributable to our Mexican railcar manufacturing joint venture. The joint venture is treated as a partnership for tax purposes and, as a result, the partnership’s entire pre-tax earnings are included in Earnings before income taxes and earnings from unconsolidated affiliates, whereas only our 50% share of the tax is included in Income tax expense.

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THE GREENBRIER COMPANIES, INC.

Earnings (Loss) From Unconsolidated Affiliates

Through unconsolidated affiliates we produce rail and industrial components and have an ownership stake in a railcar manufacturer in Brazil and a lease financing warehouse.

Earnings from unconsolidated affiliates was $1.7 million for the three months ended February 29, 2020 compared to a loss from unconsolidated affiliates of $0.8 million for the three months ended February 28, 2019. The increase in earnings from unconsolidated affiliates was primarily related to earnings from our investment in Axis, a joint venture that manufactures and sells axles to its joint venture partners. We obtained our ownership interest in Axis as part of the acquisition of the manufacturing business of ARI on July 26, 2019.

Noncontrolling Interest

Net earnings attributable to noncontrolling interest was $6.4 million for the three months ended February 29, 2020 compared to $3.0 million in the prior comparable period, which primarily represents our joint venture partner's share in the results of operations of our Mexican railcar manufacturing joint venture, adjusted for intercompany sales, and our European partner’s share of the results of our European operations.

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THE GREENBRIER COMPANIES, INC.

Six Months Ended February 29, 2020 Compared to the Six Months Ended February 28, 2019

Overview

Revenue, cost of revenue, margin and operating profit presented below, include amounts from external parties and exclude intersegment activity that is eliminated in consolidation.

	Six Months Ended
(In thousands)	February 29, 2020			February 28, 2019
Revenue:
Manufacturing	$	1,147,310		$	947,808
Wheels, Repair & Parts		177,833			233,821
Leasing & Services		68,064			81,565
		1,393,207			1,263,194
Cost of revenue:
Manufacturing		1,004,221			860,801
Wheels, Repair & Parts		166,265			219,433
Leasing & Services		44,196			56,583
		1,214,682			1,136,817
Margin:
Manufacturing		143,089			87,007
Wheels, Repair & Parts		11,568			14,388
Leasing & Services		23,868			24,982
		178,525			126,377
Selling and administrative		108,961			98,324
Net gain on disposition of equipment		(10,656	)		(26,455	)
Earnings from operations		80,220			54,508
Interest and foreign exchange		25,461			13,641
Earnings before income taxes and earnings (loss)    from unconsolidated affiliates		54,759			40,867
Income tax expense		(13,457	)		(11,383	)
Earnings before earnings (loss) from    unconsolidated affiliates		41,302			29,484
Earnings (loss) from unconsolidated affiliates		2,724			(319	)
Net earnings		44,026			29,165
Net earnings attributable to noncontrolling interest		(22,728	)		(8,444	)
Net earnings attributable to Greenbrier	$	21,298		$	20,721
Diluted earnings per common share	$	0.64		$	0.63

Performance for our segments is evaluated based on Earnings from operations (operating profit). 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 model. Management does not allocate Interest and foreign exchange or Income tax expense for either external or internal reporting purposes.

	Six Months Ended
(In thousands)	February 29, 2020			February 28, 2019
Operating profit (loss):
Manufacturing	$	99,248		$	50,845
Wheels, Repair & Parts		4,434			6,070
Leasing & Services		22,570			38,543
Corporate		(46,032	)		(40,950	)
	$	80,220		$	54,508

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THE GREENBRIER COMPANIES, INC.

Consolidated Results

	Six Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Increase (Decrease)			% Change
Revenue	$	1,393,207		$	1,263,194		$	130,013			10.3	%
Cost of revenue	$	1,214,682		$	1,136,817		$	77,865			6.8	%
Margin (%)		12.8	%		10.0	%		2.8	%	*
Net earnings attributable to Greenbrier	$	21,298		$	20,721		$	577			2.8	%

* Not meaningful

As of July 26, 2019, the consolidated results included the results of the manufacturing business of ARI. This increased revenue and cost of revenue for the six months ended February 29, 2020 compared to the prior year.

Through our integrated business model, we provide a broad range of custom products and services in each of our segments, which have various average selling prices and margins. The demand for and mix of products and services delivered changes from period to period, which causes fluctuations in our results of operations.

The 10.3% increase in revenue for the six months ended February 29, 2020 as compared to the six months ended February 28, 2019 was primarily due to a 21.0% increase in Manufacturing revenue primarily attributed to a 10.3% increase in railcar deliveries and a change in product mix. This was partially offset by a 23.9% decrease in Wheels, Repair & Parts revenue primarily due to lower wheelset, component and parts volumes due to lower demand, lower repair revenue primarily from four fewer shops in the current year and a decrease in scrap metal pricing.

The 6.8% increase in cost of revenue for the six months ended February 29, 2020 as compared to the six months ended February 28, 2019 was primarily due to a 16.7% increase in Manufacturing cost of revenue primarily attributed to a 10.3% increase in the volume of railcar deliveries. This was partially offset by a 24.2% decrease in Wheels, Repair & Parts cost of revenue primarily due to lower costs associated with a reduction in wheelset, component and parts volumes and four fewer repair shops in the current period.

Margin as a percentage of revenue was 12.8% and 10.0% for the six months ended February 29, 2020 and February 28, 2019, respectively. The overall margin as a percentage of revenue was positively impacted by an increase in Manufacturing margin to 12.5% from 9.2% primarily attributed to a change in product mix and a customer order contract modification fee received during the six months ended February 29, 2020.

Net earnings attributable to Greenbrier is impacted by our operating activities and noncontrolling interest associated with our 50/50 joint venture at one of our Mexican railcar manufacturing facilities and our 75% interest in Greenbrier-Astra Rail, both of which we consolidate for financial reporting purposes. The $0.6 million increase in Net earnings attributable to Greenbrier for the six months ended February 29, 2020 as compared to the prior comparable period was primarily attributable to an increase in margin due to a higher volume of railcar deliveries. This was partially offset by higher Net earnings attributable to noncontrolling interest. The higher Net earnings attributable to noncontrolling interest was a result of our Mexican railcar manufacturing 50/50 joint venture operating at higher volumes and margins.

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THE GREENBRIER COMPANIES, INC.

Manufacturing Segment

	Six Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Increase (Decrease)			% Change
Revenue	$	1,147,310		$	947,808		$	199,502			21.0	%
Cost of revenue	$	1,004,221		$	860,801		$	143,420			16.7	%
Margin (%)		12.5	%		9.2	%		3.3	%	*
Operating profit ($)	$	99,248		$	50,845		$	48,403			95.2	%
Operating profit (%)		8.7	%		5.4	%		3.3	%	*
Deliveries		9,600			8,700			900			10.3	%

* Not meaningful

As of July 26, 2019, the Manufacturing segment included the results of the manufacturing business of ARI which is consolidated for financial reporting purposes. This increased Manufacturing revenue and cost of revenue for the six months ended February 29, 2020 compared to the prior year.

Manufacturing revenue increased $199.5 million or 21.0% for the six months ended February 29, 2020 compared to the six months ended February 28, 2019. The increase in revenue was primarily attributed to a 10.3% increase in railcar deliveries and a change in product mix. Manufacturing revenue for the six months ended February 29, 2020 included $210.7 million in revenue associated with the acquired manufacturing business of ARI.

Manufacturing cost of revenue increased $143.4 million or 16.7% for the six months ended February 29, 2020 compared to the six months ended February 28, 2019. The increase in cost of revenue was primarily attributed to a 10.3% increase in the volume of railcar deliveries. Manufacturing cost of revenue for the six months ended February 29, 2020 included $211.1 million in costs associated with the acquired manufacturing business of ARI.

Manufacturing margin as a percentage of revenue increased 3.3% for the six months ended February 29, 2020 compared to the six months ended February 28, 2019. The increase was primarily attributed to a change in product mix and a $12.9 million customer order contract modification fee received during the six months ended February 29, 2020. These were partially offset by operating inefficiencies at our recently acquired manufacturing facilities.

Manufacturing operating profit increased $48.4 million or 95.2% for the six months ended February 29, 2020 compared to the six months ended February 28, 2019. The increase was primarily attributed to an increase in the volume of railcar deliveries.

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THE GREENBRIER COMPANIES, INC.

Wheels, Repair & Parts Segment

	Six Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Increase (Decrease)			% Change
Revenue	$	177,833		$	233,821		$	(55,988	)		(23.9	%)
Cost of revenue	$	166,265		$	219,433		$	(53,168	)		(24.2	%)
Margin (%)		6.5	%		6.2	%		0.3	%	*
Operating profit ($)	$	4,434		$	6,070		$	(1,636	)		(27.0	%)
Operating profit (%)		2.5	%		2.6	%		(0.1	%)	*

* Not meaningful

Wheels, Repair & Parts revenue decreased $56.0 million or 23.9% for the six months ended February 29, 2020 compared to the six months ended February 28, 2019. The decrease was primarily due to lower wheelset, component and parts volumes due to lower demand, lower repair revenue primarily from four fewer shops in the current year and a decrease in scrap metal pricing.

Wheels, Repair & Parts cost of revenue decreased $53.2 million or 24.2% for the six months ended February 29, 2020 compared to the six months ended February 28, 2019. The decrease was primarily due to lower costs associated with a reduction in wheelset, component and parts volumes and four fewer repair shops in the current period.

Wheels, Repair & Parts margin as a percentage of revenue increased 0.3% for the six months ended February 29, 2020 compared to the six months ended February 28, 2019. The increase was primarily attributed to efficiencies at our repair shops in the current year. In addition, the six months ended February 28, 2019 was negatively impacted by costs associated with closing sites in our repair network. These factors which had a positive impact to Wheels, Repair & Parts margin as a percentage of revenue as compared to the prior year, were partially offset by a decrease in scrap metal pricing for the six months ended February 29, 2020.

Wheels, Repair & Parts operating profit decreased $1.6 million or 27.0% for the six months ended February 29, 2020 compared to the six months ended February 28, 2019. The decrease was primarily due to a reduction in volumes and a decrease in scrap metal pricing.

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THE GREENBRIER COMPANIES, INC.

Leasing & Services Segment

	Six Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Increase (Decrease)			% Change
Revenue	$	68,064		$	81,565		$	(13,501	)		(16.6	%)
Cost of revenue	$	44,196		$	56,583		$	(12,387	)		(21.9	%)
Margin (%)		35.1	%		30.6	%		4.5	%	*
Operating profit ($)	$	22,570		$	38,543		$	(15,973	)		(41.4	%)
Operating profit (%)		33.2	%		47.3	%		(14.1	%)	*

* Not meaningful

The Leasing & Services segment generates revenue from leasing railcars from its lease fleet, providing various management services, interim rent on leased railcars for syndication, and the sale of railcars purchased from third parties with the intent to resell. The gross proceeds from the sale of these railcars are recorded in revenue and the costs of purchasing these railcars are recorded in cost of revenue.

Leasing & Services revenue decreased $13.5 million or 16.6% for the six months ended February 29, 2020 compared to the six months ended February 28, 2019. The decrease was primarily attributed to a decrease in the sale of railcars which we had purchased from third parties with the intent to resell. This was partially offset by higher average volume of rent-producing leased railcars for syndication.

Leasing & Services cost of revenue decreased $12.4 million or 21.9% for the six months ended February 29, 2020 compared to the six months ended February 28, 2019. The decrease was primarily due to a decrease in the volume of railcars sold that we purchased from third parties partially offset by higher transportation costs.

Leasing & Services margin as a percentage of revenue increased 4.5% for the six months ended February 29, 2020 compared to the six months ended February 28, 2019. Margin as a percentage of revenue for the six months ended February 29, 2020 benefited from fewer sales of railcars that we purchased from third parties which have lower margin percentages. The increase in margin as a percentage of revenue was also due to a higher average volume of rent-producing leased railcars for syndication.

Leasing & Services operating profit decreased $16.0 million or 41.4% for the six months ended February 29, 2020 compared to the six months ended February 28, 2019. The decrease was primarily attributed to a $12.9 million decrease in net gain on disposition of equipment.

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THE GREENBRIER COMPANIES, INC.

Selling and Administrative Expense

	Six Months Ended
(In thousands)	February 29, 2020		February 28, 2019		Increase (Decrease)		% Change
Selling and administrative expense	$	108,961	$	98,324	$	10,637		10.8	%

Selling and administrative expense was $109.0 million or 7.8% of revenue for the six months ended February 29, 2020 compared to $98.3 million or 7.8% of revenue for the prior comparable period. The $10.6 million increase was primarily attributed to a $6.3 million increase in employee related costs and $5.8 million from the addition of the manufacturing business of ARI selling and administrative costs. These were partially offset by $2.6 million in transaction related costs incurred during six months ended February 28, 2019.

Net Gain on Disposition of Equipment

Net gain on disposition of equipment was $10.7 million for the six months ended February 29, 2020 compared to $26.5 million for the prior comparable period. Net gain on disposition of equipment primarily includes the sale of assets from our lease fleet (Equipment on operating leases, net) that are periodically sold in the normal course of business in order to take advantage of market conditions and to manage risk and liquidity; and disposition of property, plant and equipment.  

Other Costs

Interest and foreign exchange expense was composed of the following:

	Six Months Ended
(In thousands)	February 29, 2020		February 28, 2019			Increase (Decrease)
Interest and foreign exchange:
Interest and other expense	$	20,568	$	14,782		$	5,786
Foreign exchange (gain) loss		4,893		(1,141	)		6,034
	$	25,461	$	13,641		$	11,820

The $11.8 million increase in interest and foreign exchange expense from the prior comparable period was primarily attributed to a $4.9 million foreign exchange loss for the six months ended February 29, 2020 compared to a $1.1 million foreign exchange gain in the prior comparable period. The change in foreign exchange (gain) loss was primarily attributed to the change in the Mexican Peso relative to the U.S. Dollar. The increase in interest and foreign exchange expense was also due to interest expense associated with our $300 million of senior term debt issued in July 2019.

Income Tax

The effective tax rate for the six months ended February 29, 2020 was 24.6% compared to 27.9% for the six months ended February 28, 2019. The decrease in the effective rate from the prior year was primarily attributable to net favorable discrete items for the six months ended February 29, 2020 compared to net unfavorable discrete items in the prior comparable period. Excluding the impact of discrete items in both periods, the effective tax rate was 24.7% for the six months ended February 29, 2020 compared to 25.5% in the prior comparable period which decreased primarily due to the geographic mix of earnings.

The effective tax rate can fluctuate year-to-year due to changes in the mix of foreign and domestic pre-tax earnings. It can also fluctuate with changes in the proportion of pre-tax earnings attributable to our Mexican railcar manufacturing joint venture. The joint venture is treated as a partnership for tax purposes and, as a result, the partnership’s entire pre-tax earnings are included in Earnings before income taxes and earnings from unconsolidated affiliates, whereas only our 50% share of the tax is included in Income tax expense.

39

THE GREENBRIER COMPANIES, INC.

Earnings (Loss) From Unconsolidated Affiliates

Through unconsolidated affiliates we produce rail and industrial components and have an ownership stake in a railcar manufacturer in Brazil and a lease financing warehouse.

Earnings from unconsolidated affiliates was $2.7 million for the six months ended February 29, 2020 compared to a loss from unconsolidated affiliates of $0.3 million for the six months ended February 28, 2019. The increase in earnings from unconsolidated affiliates was primarily related to earnings from our investment in Axis, a joint venture that manufactures and sells axles to its joint venture partners. We obtained our ownership interest in Axis as part of the acquisition of the manufacturing business of ARI on July 26, 2019.

Noncontrolling Interest

Net earnings attributable to noncontrolling interest was $22.7 million for the six months ended February 29, 2020 compared to $8.4 million in the prior comparable period, which primarily represents our joint venture partner's share in the results of operations of our Mexican railcar manufacturing joint venture, adjusted for intercompany sales, and our European partner’s share of the results of our European operations.

40

THE GREENBRIER COMPANIES, INC.

Liquidity and Capital Resources

	Six Months Ended
(In thousands)	February 29, 2020			February 28, 2019
Net cash used in operating activities	$	(133,174	)	$	(146,622	)
Net cash provided by (used in) investing activities		10,766			(43,704	)
Net cash provided by (used in) financing activities		(34,787	)		13,111
Effect of exchange rate changes		(2,824	)		825
Decrease in cash and cash equivalents and restricted cash	$	(160,019	)	$	(176,390	)

We have been financed through cash generated from operations and borrowings. At February 29, 2020, cash and cash equivalents and restricted cash were $178.5 million, a decrease of $160.0 million from $338.5 million at August 31, 2019.

The change in cash used in operating activities for the six months ended February 29, 2020 compared to the six months ended February 28, 2019 was primarily due to a change in cash flows associated with leased railcars for syndication and a net change in working capital.

Cash provided by (used in) investing activities primarily related to capital expenditures net of proceeds from the sale of assets and investment activity with our unconsolidated affiliates. The change in cash provided by (used in) investing activities for the six months ended February 29, 2020 compared to the six months ended February 28, 2019 was primarily attributable to a decrease in capital expenditures.

Capital expenditures totaled $40.8 million and $98.2 million for the six months ended February 29, 2020 and February 28, 2019, respectively. Manufacturing capital expenditures were approximately $31.6 million and $40.5 million for the six months ended February 29, 2020 and February 28, 2019, respectively. Capital expenditures for Manufacturing are expected to be approximately $60 million in 2020 and primarily relate to enhancements of our existing manufacturing facilities. Wheels, Repair & Parts capital expenditures were approximately $4.3 million and $3.2 million for the six months ended February 29, 2020 and February 28, 2019, respectively. Capital expenditures for Wheels, Repair & Parts are expected to be approximately $10 million in 2020 for enhancements of our existing facilities. Leasing & Services and corporate capital expenditures were approximately $4.9 million and $54.5 million for the six months ended February 29, 2020 and February 28, 2019, respectively. Leasing & Services and corporate capital expenditures for 2020 are expected to be approximately $25 million. Proceeds from sales of leased railcar equipment are expected to be $90 million for 2020. Assets from our lease fleet are periodically sold in the normal course of business in order to take advantage of market conditions and to manage risk and liquidity.  

Proceeds from the sale of assets, which primarily related to sales of railcars from our lease fleet within Leasing & Services, were approximately $41.8 million and $63.9 million for the six months ended February 29, 2020 and February 28, 2019, respectively.

The change in cash provided by (used in) financing activities for the six months ended February 29, 2020 compared to the six months ended February 28, 2019 was primarily attributed to a decrease in the proceeds of debt, net of repayments and a change in the net activities with joint venture partners.

A quarterly dividend of $0.27 per share was declared on April 1, 2020.

The Board of Directors has authorized our company to repurchase shares of our common stock. In January 2019, the expiration date of this share repurchase program was extended from March 31, 2019 to March 31, 2021 and the amount remaining for repurchase was increased from $88 million to $100 million. Under the share repurchase program, shares of common stock may be purchased on the open market or through privately negotiated transactions from time to time. The timing and amount of purchases will be based upon market conditions, securities law limitations and other factors. The program may be modified, suspended or discontinued at any time without prior notice. The share repurchase program does not obligate us to acquire any specific number of shares in any period. 

41

THE GREENBRIER COMPANIES, INC.

Senior secured credit facilities, consisting of three components, aggregated to $706.0 million as of February 29, 2020. We had an aggregate of $451.1 million available to draw down under committed credit facilities as of February 29, 2020. This amount consists of $382.3 million available on the North American credit facility, $18.8 million on the European credit facilities and $50.0 million on the Mexican railcar manufacturing joint venture credit facilities.

As of February 29, 2020, a $600.0 million revolving line of credit, maturing June 2024, secured by substantially all of our assets in the U.S. not otherwise pledged as security for term loans, was available to provide working capital and interim financing of equipment, principally for the U.S. and Mexican operations. Advances under this facility bear interest at LIBOR plus 1.50% or Prime plus 0.50% depending on the type of borrowing. Available borrowings under the credit facility are generally based on defined levels of inventory, receivables, property, plant and equipment and leased equipment, as well as total debt to consolidated capitalization and fixed charges coverage ratios. 

As of February 29, 2020, lines of credit totaling $56.0 million secured by certain of our European assets, with variable rates that range from Warsaw Interbank Offered Rate (WIBOR) plus 1.1% to WIBOR plus 1.5% and Euro Interbank Offered Rate (EURIBOR) plus 1.1%, were available for working capital needs of our European manufacturing operations. The European lines of credit include a $14.0 million facility which is guaranteed by us. European credit facilities are regularly renewed. Currently, these European credit facilities have maturities that range from June 2020 through July 2021.

As of February 29, 2020, our Mexican railcar manufacturing joint venture had two lines of credit totaling $50.0 million. The first line of credit provides up to $30.0 million. Advances under this facility bear interest at LIBOR plus 2.0%. The Mexican railcar manufacturing joint venture will be able to draw against this facility through March 2024. The second line of credit provides up to $20.0 million, of which we and our joint venture partner have each guaranteed 50%. Advances under this facility bear interest at LIBOR plus 2.0%. The Mexican railcar manufacturing joint venture will be able to draw amounts available under this facility through June 2021.

As of February 29, 2020, outstanding commitments under the $600.0 million revolving line of credit consisted of $27.5 million in letters of credit, which reduced our available borrowings under this credit facility, and $37.2 million outstanding under the European credit facilities.

The revolving and operating lines of credit, along with notes payable, contain covenants with respect to us and our various subsidiaries, the most restrictive of which, among other things, limit our ability to: incur additional indebtedness or guarantees; pay dividends or repurchase stock; enter into capital leases; create liens; sell assets; engage in transactions with affiliates, including joint ventures and non U.S. subsidiaries, including but not limited to loans, advances, equity investments and guarantees; enter into mergers, consolidations or sales of substantially all our assets; and enter into new lines of business. The covenants also require certain maximum ratios of debt to total capitalization and minimum levels of fixed charges (interest plus rent) coverage. As of February 29, 2020, we were in compliance with all such restrictive covenants.

From time to time, we may seek to repurchase or otherwise retire or exchange securities, including outstanding notes, borrowings and equity securities, and take other steps to reduce our debt or otherwise improve our balance sheet. These actions may include open market repurchases, unsolicited or solicited privately negotiated transactions or other retirements, repurchases or exchanges. Such retirements, repurchases or exchanges, if any, will depend on a number of factors, including, but not limited to, prevailing market conditions, trading levels of our debt, our liquidity requirements and contractual restrictions, if applicable. The amounts involved in any such transactions may, individually or in the aggregate, be material and may involve all or a portion of a particular series of notes or other indebtedness which may reduce the float and impact the trading market of notes or other indebtedness which remain outstanding.

We have global operations that conduct business in their local currencies as well as other currencies. To mitigate the exposure to transactions denominated in currencies other than the functional currency, we enter into foreign currency forward exchange contracts with established financial institutions to protect the margin on a portion of foreign currency sales in firm backlog. Given the strong credit standing of the counterparties, no provision has been made for credit loss due to counterparty non-performance.

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THE GREENBRIER COMPANIES, INC.

As of February 29, 2020, we had a $4.5 million note receivable from Amsted-Maxion Cruzeiro, our unconsolidated Brazilian castings and components manufacturer. This note receivable is included on the Consolidated Balance Sheet in Accounts receivable, net. In the future, we may make loans to or provide guarantees for Amsted-Maxion Cruzeiro or Greenbrier-Maxion, our unconsolidated Brazilian railcar manufacturer.

We expect existing funds and cash generated from operations, together with proceeds from financing activities including borrowings under existing credit facilities and long-term financings, to be sufficient to fund expected debt repayments, working capital needs, planned capital expenditures, additional investments in our unconsolidated affiliates and dividends during the next twelve months.

Off-Balance Sheet Arrangements

We do not currently have off balance sheet arrangements that have or are likely to have a material current or future effect on our Consolidated Financial Statements.

Critical Accounting Policies and Estimates  

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires judgment on the part of management to arrive at estimates and assumptions on matters that are inherently uncertain. These estimates may affect the amount of assets, liabilities, revenue and expenses reported in the financial statements and accompanying notes and disclosure of contingent assets and liabilities within the financial statements. Estimates and assumptions are periodically evaluated and may be adjusted in future periods. Actual results could differ from those estimates.

Income taxes - The asset and liability method is used to account for income taxes. We are required to estimate the timing of the recognition of deferred tax assets and liabilities, make assumptions about the future deductibility of deferred tax assets and assess deferred tax liabilities based on enacted law and tax rates for each tax jurisdiction to determine the amount of deferred tax assets and liabilities. Deferred income taxes are provided for the temporary effects of differences between assets and liabilities recognized for financial statement and income tax reporting purposes. Valuation allowances reduce deferred tax assets to an amount that will more likely than not be realized. We recognize liabilities for uncertain tax positions based on whether evidence indicates that it is more likely than not that the position will be sustained on audit. It is inherently difficult and subjective to estimate such amounts, as this requires us to estimate the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis. Changes in tax law or court interpretations may result in the recognition of a tax benefit or an additional charge to the tax provision.

Warranty accruals - Warranty costs to cover a defined warranty period are estimated and charged to operations. The estimated warranty cost is based on historical warranty claims for each particular product type. For new product types without a warranty history, preliminary estimates are based on historical information for similar product types. These estimates are inherently uncertain as they are based on historical data for existing products and judgment for new products. If warranty claims are made in the current period for issues that have not historically been the subject of warranty claims and were not taken into consideration in establishing the accrual or if claims for issues already considered in establishing the accrual exceed expectations, warranty expense may exceed the accrual for that particular product. Conversely, there is the possibility that claims may be lower than estimates. The warranty accrual is periodically reviewed and updated based on warranty trends. However, as we cannot predict future claims, the potential exists for the difference in any one reporting period to be material.

Environmental costs - At times we may be involved in various proceedings related to environmental matters. We estimate future costs for known environmental remediation requirements and accrue for them when it is probable that we have incurred a liability and the related costs can be reasonably estimated based on currently available information. If further developments in or resolution of an environmental matter result in facts and circumstances that are significantly different than the assumptions used to develop these reserves, the accrual for environmental remediation could be materially understated or overstated. Adjustments to these liabilities are made when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or when expenditures for which reserves are established are made. Due to the uncertain nature of environmental matters, there can be no assurance that we will not become involved in future litigation or other proceedings or, if we were found to be responsible or liable in any litigation or proceeding, that such costs would not be material to us.

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THE GREENBRIER COMPANIES, INC.

Revenue recognition - We measure revenue at the amounts that reflect the consideration to which we expect to be entitled in exchange for transferring control of goods and services to customers. We recognize revenue either at the point in time or over the period of time that performance obligations to customers are satisfied. Payment terms vary by segment and product type and are generally due within normal commercial terms. Our contracts with customers may include multiple performance obligations (e.g. railcars, maintenance, management services, etc.). For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price. We have disaggregated revenue from contracts with customers into categories which describe the principal activities from which we generate our revenues.

Manufacturing

Railcars are manufactured in accordance with contracts with customers. We recognize revenue upon our customers’ acceptance of the completed railcars at a specified delivery point. From time to time, we enter into multi-year supply agreements. Each railcar delivery is considered a distinct performance obligation, such that the amounts that are recognized as revenue following railcar delivery are generally not subject to change.

We typically recognize marine vessel manufacturing revenue over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts our performance in completing the construction of the marine vessel for the customer and is consistent with the percentage of completion method used prior to the adoption of Topic 606.

Wheels, Repair & Parts

We operate a network of wheel, repair and parts shops in North America that provide complete wheelset reconditioning and railcar repair services.

Wheels revenue is recognized when wheelsets are shipped to the customer or when consumed by customers in the case of consignment arrangements. Parts revenue is recognized upon shipment of the parts to the customers.

Repair revenue is typically recognized over time using the cost input method, based on progress toward contract completion measured by actual costs incurred to date in relation to the estimate of total expected costs. This method best depicts our performance in repairing the railcars for the customer. Repair services are typically completed in less than 90 days.

Leasing & Services

We own a fleet of new and used railcars which are leased to third-party customers. Lease revenue is recognized over the lease-term in the period in which it is earned.

Syndication transactions represent new and used railcars which have been placed on lease to a customer and which we intend to sell to an investor with the lease attached. At the time of such sale, revenue and cost of revenue associated with railcars that we have manufactured are recognized in the Manufacturing segment; while revenue and cost of revenue associated with railcars which were obtained from a third-party with the intent to resell and subsequently sold, are recognized in the Leasing & Services segment.

We enter into multi-year contracts to provide management and maintenance services to customers for which revenue is generally recognized on a straight-line basis over the contract term as a stand-ready obligation. Costs to fulfill these contracts are recognized as incurred.

Impairment of long-lived assets - When changes in circumstances indicate the carrying amount of certain long-lived assets may not be recoverable, the assets are evaluated for impairment. If the forecast of undiscounted future cash flows are less than the carrying amount of the assets, an impairment charge to reduce the carrying value of the assets to fair value would be recognized in the current period. These estimates are based on the best information available at the time of the impairment and could be materially different if circumstances change. If the forecast of undiscounted future cash flows exceeds the carrying amount of the assets it would indicate that the assets were not impaired.

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THE GREENBRIER COMPANIES, INC.

Goodwill and acquired intangible assets - We periodically acquire businesses in purchase transactions in which the allocation of the purchase price may result in the recognition of goodwill and other intangible assets. The determination of the value of such intangible assets requires management to make estimates and assumptions. These estimates affect the amount of future period amortization and possible impairment charges.

Goodwill and indefinite-lived intangible assets are tested for impairment annually during the third quarter. The provisions of ASC 350 Intangibles – Goodwill and Other, require that we perform this test by comparing the fair value of each reporting unit with its carrying value. We determine the fair value of our reporting units based on a weighting of income and market approaches. Under the income approach, we calculate the fair value of a reporting unit based on the present value of estimated future cash flows which incorporates expected revenue and margins and the use of discount rates. Under the market approach, we estimate the fair value based on observed market multiples for comparable businesses. An impairment loss is recorded to the extent that the reporting unit’s carrying amount exceeds the reporting unit’s fair value. An impairment loss cannot exceed the total amount of goodwill allocated to the reporting unit. Goodwill and indefinite-lived intangible assets are also tested more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists. When changes in circumstances, such as a decline in the market price of our common stock, changes in demand or in the numerous variables associated with the judgments, assumptions and estimates made in assessing the appropriate valuation of goodwill indicate the carrying amount of certain indefinite lived assets may not be recoverable, the assets are evaluated for impairment. If actual operating results were to differ from these assumptions, it may result in an impairment of our goodwill.

Our goodwill balance was $129.7 million as of February 29, 2020 of which $86.4 million related to our Manufacturing segment and $43.3 million related to our Wheels, Repair & Parts segment.

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THE GREENBRIER COMPANIES, INC.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange Risk

We have global operations that conduct business in their local currencies as well as other currencies. To mitigate the exposure to transactions denominated in currencies other than the functional currency of each entity, we enter into foreign currency forward exchange contracts to protect revenue or margin on a portion of forecast foreign currency sales and expenses. At February 29, 2020 exchange rates, notional amounts of forward exchange contracts for the purchase of Polish Zlotys and the sale of Euros and Pound Sterling; and the purchase of Mexican Pesos and the sale of U.S. Dollars aggregated to $54.1 million. Because of the variety of currencies in which purchases and sales are transacted and the interaction between currency rates, it is not possible to predict the impact a movement in a single foreign currency exchange rate would have on future operating results.

In addition to exposure to transaction gains or losses, we are also exposed to foreign currency exchange risk related to the net asset position of our foreign subsidiaries. At February 29, 2020, net assets of foreign subsidiaries aggregated $152.3 million and a 10% strengthening of the U.S. Dollar relative to the foreign currencies would result in a decrease in equity of $15.2 million, or 1.2% of Total equity - Greenbrier. This calculation assumes that each exchange rate would change in the same direction relative to the U.S. Dollar.

Interest Rate Risk

We have managed a portion of our variable rate debt with interest rate swap agreements, effectively converting $255.7 million of variable rate debt to fixed rate debt. As a result, we are exposed to interest rate risk relating to our revolving debt and a portion of term debt, which are at variable rates. At February 29, 2020, 65% of our outstanding debt had fixed rates and 35% had variable rates. At February 29, 2020, a uniform 10% increase in variable interest rates would result in approximately $0.5 million of additional annual interest expense.

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THE GREENBRIER COMPANIES, INC.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management has evaluated, under the supervision and with the participation of our Principal Executive Officer and Principal Financial and Accounting Officer, the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (the Exchange Act). Based on that evaluation, our Principal Executive Officer and Principal Financial and Accounting Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that information required to be disclosed in our Exchange Act reports is (1) recorded, processed, summarized and reported in a timely manner, and (2) accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial and Accounting Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended February 29, 2020 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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THE GREENBRIER COMPANIES, INC.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

There is hereby incorporated by reference the information disclosed in Note 15 to Consolidated Financial Statements, Part I of this quarterly report.

Item 1A. Risk Factors

This Form 10-Q should be read in conjunction with the risk factors and information disclosed in our Annual Report on Form 10-K for the year ended August 31, 2019. There have been no material changes in the risk factors described in our Annual Report on Form 10-K for the year ended August 31, 2019, except for the risk factors below.

The COVID-19 coronavirus pandemic and the governmental reaction to COVID-19 most likely will have a material negative impact on our business, liquidity and financial position, results of operations, stock price, and ability to convert backlog to revenue.

The COVID-19 coronavirus outbreak has been categorized as a global pandemic by the World Health Organization. As human mortality and morbidity increase in numbers and expand geographically, the negative impact on the global economy of the COVID-19 pandemic and related governmental responses have been wide ranging and multi-faceted including historically steep and rapid declines in consumer activity in the geographic markets where we operate, widespread national or local “stay-at-home” orders and travel restrictions that reduce or prevent businesses in most of the world’s large economies from operating, disruptions in global supply chains, steep downturns and price volatility in equities markets, and concern that credit markets will not remain liquid.

COVID-19 and the related governmental reaction most likely will have a material negative impact on our business, liquidity, results of operations, and stock price due to the occurrence of some or all of the following events or circumstances among others:

• We may be prevented from operating our manufacturing facilities, repair shops, wheel shops or other worksites due to the illness of our employees, “stay-at-home” regulations, and employee reluctance to appear for work.

• The operations of our customers may be disrupted thereby increasing the likelihood that our customers may attempt to delay or cancel orders, may reduce orders for our products and services in the future or may cease to operate as going concerns.

• The operations of our suppliers may be disrupted and the markets for the inputs to our business may not operate effectively or efficiently thereby negatively impacting our ability to purchase inputs for our business at efficient prices and in sufficient amounts.

• We may not be able to manage our business effectively or integrate recent acquisition including ARI due to key employees becoming ill, working from home inefficiently, being unable to travel to our facilities, or being prevented from otherwise engaging in the consortium necessary for effective management.

• Our indebtedness may increase due to our need to increase borrowing to fund operations during a period of reduced revenue.

• We may not be able to raise capital efficiently or at all due to a reduction in the value of our assets or illiquidity in the global credit markets.

• We may need to raise capital, and if we raise capital by issuing equity securities, our common stock may be diluted.

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THE GREENBRIER COMPANIES, INC.

• We may not be able to pay dividends.

• The market price of our common stock may drop or remain volatile.

• We may incur significant employee health care costs under our self-insurance programs.

• The goodwill on our balance sheet may be adjusted downward. We are required to perform an annual impairment review of goodwill and indefinite lived assets which could result in an impairment charge if it is determined that the carrying value of the asset is in excess of the fair value. We perform a goodwill impairment test annually during our third quarter. Since February 29, 2020, the market price of our common stock has declined along with many other registrants as a result of the COVID-19 pandemic. A sustained decline in the market price of our common price is one of the qualitative factors to be considered when evaluating whether events or changes in circumstances may indicate that it is more likely than not that potential goodwill impairment exists. We will consider this decline and entity-specific and other macroeconomic factors as a result of the COVID-19 pandemic as we perform our annual goodwill impairment test during the third quarter.

The COVID-19 pandemic has not yet been contained and the number of its victims and the extent of negative impact on the global economy cannot be foreseen at this time. The longer the pandemic continues, the more likely that more of the foregoing risks will be realized and that other negative impacts on our business will occur some of which we cannot now foresee. Our business, liquidity, financial position, results of operations and stock price most likely will be adversely impacted.

A change in our product mix or decline in revenue due to shifts in demand or fluctuations in commodity and energy prices could have an adverse effect on our profitability.

We manufacture, lease and repair a variety of railcars. The demand for purchase, lease, or syndication of specific types of railcars and the mix of repair and refurbishment work varies from time to time. Instability and changes in the global economy, volatility in the industries that our products serve or adverse changes in the financial condition of our customers could adversely impact the demand for our railcars. In addition, fluctuations in commodity and energy prices, including crude oil and gas prices, could negatively impact the activities of our customers resulting in a corresponding adverse effect on the demand for our products and services or their ability to meet their contractual obligations including making payments. A decline in oil prices can result from a number of factors including, among others, a decline in commercial activity caused by the COVID-19 coronavirus pandemic or oil producing countries increasing the global supply of oil over a sustained period of time. The demand for certain types of railcars generally declines if oil prices remain low relative to the cost of production. Sustained low oil prices can also lead to oil producers ceasing to operate as going concerns thereby further reducing demand for certain types of railcars. These impacts could affect our results of operations and could have an adverse effect on our profitability. Demand for railcars that are used to transport crude oil and other energy related products is dependent on the demand for these commodities. Prices for oil and gas are subject to large fluctuations in response to relatively minor changes in the supply of, and demand for, oil and gas, market uncertainty and a variety of other economic factors that are beyond our control.

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THE GREENBRIER COMPANIES, INC.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The Board of Directors has authorized the Company to repurchase shares of the Company’s common stock. The share repurchase program has an expiration date of March 31, 2021 and the amount remaining for repurchase is $100 million. Under the share repurchase program, shares of common stock may be purchased on the open market or through privately negotiated transactions from time to time. The timing and amount of purchases will be based upon market conditions, securities law limitations and other factors. The program may be modified, suspended or discontinued at any time without prior notice. The share repurchase program does not obligate the Company to acquire any specific number of shares in any period. 

There were no shares repurchased under the share repurchase program during the three months ended February 29, 2020.

Period	Total Number of Shares Purchased		Average Price Paid Per Share (Including Commissions)		Total Number of Shares Purchased as Part of Publically Announced Plans or Programs		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
December 1, 2019 – December 31, 2019		—		—		—	$	100,000,000
January 1, 2020 – January 31, 2020		—		—		—	$	100,000,000
February 1, 2020 – February 29, 2020		—		—		—	$	100,000,000
		—				—

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THE GREENBRIER COMPANIES, INC.

Item 6. Exhibits

(a) List of Exhibits:

31.1	Certification pursuant to Rule 13a – 14 (a).
31.2	Certification pursuant to Rule 13a – 14 (a).
32.1	Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (Formatted as inline XBRL and contained in Exhibit 101).

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THE GREENBRIER COMPANIES, INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		THE GREENBRIER COMPANIES, INC.
Date:	April 7, 2020	By:	/s/ Adrian J. Downes
			Adrian J. Downes
			Senior Vice President,
			Chief Financial Officer and Chief Accounting Officer
			(Principal Financial Officer and Principal Accounting Officer)

52

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, William A. Furman, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Greenbrier Companies, Inc. for the quarterly period ended February 29, 2020;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: April 7, 2020
	/s/ William A. Furman
	William A. Furman
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS (cont'd)

I, Adrian J. Downes, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Greenbrier Companies, Inc. for the quarterly period ended February 29, 2020;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: April 7, 2020
	/s/ Adrian J. Downes
	Adrian J. Downes
	Senior Vice President,
	Chief Financial Officer and Chief Accounting Officer
	(Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of The Greenbrier Companies, Inc. (the "Company") on Form 10-Q for the quarterly period ended February 29, 2020, as filed with the Securities and Exchange Commission on the date therein specified (the "Report"), I, William A. Furman, Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 7, 2020
	/s/ William A. Furman
	William A. Furman
	Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of The Greenbrier Companies, Inc. (the "Company") on Form 10-Q for the quarterly period ended February 29, 2020, as filed with the Securities and Exchange Commission on the date therein specified (the "Report"), I, Adrian J. Downes, Senior Vice President, Chief Financial Officer and Chief Accounting Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 7, 2020
	/s/ Adrian J. Downes
	Adrian J. Downes
	Senior Vice President,
	Chief Financial Officer and Chief Accounting Officer
	(Principal Financial Officer and Principal Accounting Officer)

XML

Derivative Instruments (Tables)

6 Months Ended

Feb. 29, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Fair Values of Derivative Instruments

Fair Values of Derivative Instruments

	Asset Derivatives					Liability Derivatives
		February 29, 2020		August 31, 2019			February 29, 2020		August 31, 2019
(In thousands)	Balance sheet location	Fair Value		Fair Value		Balance sheet location	Fair Value		Fair Value
Derivatives designated    as hedging    instruments
Foreign forward    exchange contracts	Accounts receivable, net	$	488	$	64	Accounts payable and accrued liabilities	$	194	$	437
Interest rate swap    contracts	Accounts receivable, net		—		—	Accounts payable and accrued liabilities		12,504		10,255
		$	488	$	64		$	12,698	$	10,692
Derivatives not    designated as    hedging instruments
Foreign forward    exchange contracts	Accounts receivable, net	$	39	$	—	Accounts payable and accrued liabilities	$	281	$	587

Effect of Derivative Instruments on the Statements of Income

The Effect of Derivative Instruments on the Statements of Income

Three Months Ended February 29, 2020 and February 28, 2019

Derivatives in cash flow hedging relationships	Location of gain (loss) recognized in income on derivatives	Gain (loss) recognized in income on derivatives three months ended
		February 29, 2020			February 28, 2019
Foreign forward exchange contract	Interest and foreign exchange	$	(165	)	$	115

Derivatives in cash flow hedging relationships	Gain (loss) recognized in OCI on derivatives three months ended,						Location of gain (loss) reclassified from accumulated OCI into income	Gain (loss) reclassified from accumulated OCI into income three months ended						Location of gain (loss) on derivative (amount excluded from effectiveness testing)	Gain (loss) recognized on derivative (amount excluded from effectiveness testing) three months ended
	February 29, 2020			February 28, 2019				February 29, 2020			February 28, 2019				February 29, 2020			February 28, 2019
Foreign forward    exchange contracts	$	190		$	(418	)	Revenue	$	67		$	(411	)	Revenue	$	190		$	638
Foreign forward    exchange contracts		411			1,100		Cost of revenue		73			(358	)	Cost of revenue		210			289
Interest rate swap    contracts		(5,503	)		(1,916	)	Interest and foreign exchange		(369	)		(151	)	Interest and foreign exchange		(116	)		25
	$	(4,902	)	$	(1,234	)		$	(229	)	$	(920	)		$	284		$	952

Six Months Ended February 29, 2020 and February 28, 2019

Derivatives in cash flow hedging relationships	Location of gain (loss) recognized in income on derivatives	Gain (loss) recognized in income on derivatives six months ended
		February 29, 2020			February 28, 2019
Foreign forward exchange contract	Interest and foreign exchange	$	(94	)	$	495

Derivatives in cash flow hedging relationships	Gain (loss) recognized in OCI on derivatives six months ended						Location of gain (loss) reclassified from accumulated OCI into income	Gain (loss) reclassified from accumulated OCI into income six months ended						Location of gain (loss) on derivative amount excluded from effectiveness testing)	Gain (loss) recognized on derivative (amount excluded from effectiveness testing) six months ended
	February 29, 2020			February 28, 2019				February 29, 2020			February 28, 2019				February 29, 2020			February 28, 2019
Foreign forward    exchange contracts	$	763		$	(346	)	Revenue	$	(99	)	$	(667	)	Revenue	$	643		$	900
Foreign forward    exchange contracts		(183	)		(395	)	Cost of revenue		(2	)		(590	)	Cost of revenue		344			678
Interest rate swap    contracts		(2,784	)		(3,689	)	Interest and foreign exchange		(536	)		(295	)	Interest and foreign exchange		(281	)		(22	)
	$	(2,204	)	$	(4,430	)		$	(637	)	$	(1,552	)		$	706		$	1,556

Schedule Of Effects Of Cash Flow Hedges Included In Statement Of Income

The following table presents the amounts in the Consolidated Statements of Income in which the effects of the cash flow hedges are recorded and the effects of the cash flow hedge activity on these line items for the three months ended February 29, 2020 and February 28, 2019:

	For The Three Months Ended
	February 29, 2020					February 28, 2019
	Total		Amount of gain (loss) on cash flow hedge activity			Total		Amount of gain (loss) on cash flow hedge activity
Revenue	$	623,848	$	67		$	658,671	$	(411	)
Cost of revenue		537,512		73			604,827		(358	)
Interest and foreign exchange		12,609		(369	)		9,237		(151	)

	For The Six Months Ended
	February 29, 2020					February 28, 2019
	Total		Amount of gain (loss) on cash flow hedge activity			Total		Amount of gain (loss) on cash flow hedge activity
Revenue	$	1,393,207	$	(99	)	$	1,263,194	$	(667	)
Cost of revenue		1,214,682		(2	)		1,136,817		(590	)
Interest and foreign exchange		25,461		(536	)		13,641		(295	)

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Accounts Payable and Accrued Liabilities (Tables)

6 Months Ended

Feb. 29, 2020

Payables And Accruals [Abstract]

Accounts Payable and Accrued Liabilities

(In thousands)	February 29, 2020		August 31, 2019
Trade payables	$	220,123	$	302,009
Other accrued liabilities		105,206		108,939
Operating lease liabilities		35,996		—
Accrued payroll and related liabilities		91,723		106,669
Accrued warranty		46,850		46,678
Income taxes payable		—		4,065
	$	499,898	$	568,360

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Interim Financial Statements - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 01, 2019	Feb. 29, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Cumulative-effect adjustment	$ 4,400
Operating lease ROU assets	40,400	$ 34,624
Operating lease liabilities	$ 41,600	$ 35,996

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Acquisitions

6 Months Ended

Feb. 29, 2020

Business Combinations [Abstract]

Acquisitions

Note 3 – Acquisitions

Manufacturing business of American Railcar Industries, Inc. (ARI)

On July 26, 2019, the Company completed its acquisition of the manufacturing business of ARI for a purchase price of approximately $417.2 million. In connection with the acquisition, the Company acquired two railcar manufacturing facilities in Arkansas, as well as other facilities which produce a range of railcar components and parts and create enhanced vertical integration for our manufacturing operations. The purchase price included approximately $8.5 million for capital expenditures on railcar lining operations and other facility improvements. Included in the acquisition were equity interests in two railcar component manufacturing businesses which Greenbrier accounts for under the equity method of accounting and recognized at their respective fair value as investments in unconsolidated affiliates.

The purchase price was funded by, and consisted of, a combination of cash on hand, the proceeds of a $300 million secured term loan, the issuance to the seller of a $50 million senior convertible note and a payable to the seller for a working capital true-up amount.

For the six months ended February 29, 2020, the operations contributed by ARI’s manufacturing business generated revenues of $210.7 million and a net loss of $1.5 million, which are reported in the Company’s consolidated financial statements as part of the Manufacturing segment.

The preliminary purchase price of the net assets acquired from ARI was allocated as follows:    

(in thousands)
Accounts receivable, net	$	27,659
Inventories		98,053
Property, plant and equipment, net		225,045
Investments in unconsolidated affiliates		40,314
Intangibles and other assets, net		36,785
Goodwill		56,514
Total assets acquired		484,370
Total liabilities assumed		67,174
Net assets acquired	$	417,196

The above purchase price allocation, including the residual amount allocated to goodwill, is based on preliminary information and is subject to change as additional information is obtained related to the amounts allocated to the assets acquired and liabilities assumed. As a result of the proximity of the acquisition date to August 31, 2019 and as we did not acquire 100% of ARI, the values of all assets acquired and liabilities assumed are preliminary. During the measurement period, which may extend up to 12 months after the date of acquisition, the Company will adjust these assets and liabilities if new information is obtained about the facts and circumstances that existed as of the acquisition date and revised amounts will be recorded as of that date. The effect of measurement period adjustments to the estimated amounts will be reflected on a prospective basis and were not material during the three months ended February 29, 2020.

The identified intangible assets assumed in the acquisition were recognized as follows:

(in thousands)	Fair value		Weighted average estimated useful life (in years)
Trademarks and patents	$	19,500		9
Customer and supplier relationships		16,071		7
Identified intangible assets subject to amortization		35,571
Other identified intangible assets not subject to    amortization		860
Total identified intangible assets	$	36,431

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Accounts Payable and Accrued Liabilities

6 Months Ended

Feb. 29, 2020

Payables And Accruals [Abstract]

Accounts Payable and Accrued Liabilities

Note 7 – Accounts Payable and Accrued Liabilities

(In thousands)	February 29, 2020		August 31, 2019
Trade payables	$	220,123	$	302,009
Other accrued liabilities		105,206		108,939
Operating lease liabilities		35,996		—
Accrued payroll and related liabilities		91,723		106,669
Accrued warranty		46,850		46,678
Income taxes payable		—		4,065
	$	499,898	$	568,360

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Fair Value Measures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Feb. 29, 2020		Aug. 31, 2019
Assets:
Nonqualified savings plan investments	$ 31,766		$ 27,967
Fair Value, Measurements, Recurring
Assets:
Derivative financial instruments	527		64
Nonqualified savings plan investments	31,766		27,967
Cash equivalents	23,166		68,100
Assets, Fair Value Disclosure, Total	55,459		96,131
Liabilities:
Derivative financial instruments	12,979		11,279
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring
Assets:
Nonqualified savings plan investments	31,766		27,967
Cash equivalents	23,166		68,100
Assets, Fair Value Disclosure, Total	54,932		96,067
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring
Assets:
Derivative financial instruments	527	[1]	64
Assets, Fair Value Disclosure, Total	527	[1]	64
Liabilities:
Derivative financial instruments	12,979	[1]	$ 11,279
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Liabilities:
Derivative financial instruments	$ 0

[1] Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 12 - Derivative Instruments for further discussion.

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Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock based compensation expense	$ 4,100	$ 4,100	$ 7,237	$ 7,311

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Accounts Payable and Accrued Liabilities - Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands	Feb. 29, 2020	Nov. 30, 2019	Sep. 01, 2019	Aug. 31, 2019	Feb. 28, 2019	Nov. 30, 2018	Aug. 31, 2018
Payables And Accruals [Abstract]
Trade payables	$ 220,123			$ 302,009
Other accrued liabilities	105,206			108,939
Operating lease liabilities	35,996		$ 41,600
Accrued payroll and related liabilities	91,723			106,669
Accrued warranty	46,850	$ 47,110		46,678	$ 24,994	$ 26,264	$ 27,395
Income taxes payable				4,065
Accounts payable and accrued liabilities	$ 499,898			$ 568,360

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Earnings Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share (Detail) - shares shares in Thousands		3 Months Ended		6 Months Ended
		Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Earnings Per Share Disclosure [Line Items]
Weighted average basic common shares outstanding	[1]	32,661	32,628	32,645	32,634
Dilutive effect of restricted stock units	[2]	821	578	737	515
Weighted average diluted common shares outstanding		33,482	33,206	33,382	33,149
2.875% Convertible Senior Notes
Earnings Per Share Disclosure [Line Items]
Dilutive effect of convertible notes	[3]	0	0	0	0
2.25% Convertible Senior Notes
Earnings Per Share Disclosure [Line Items]
Dilutive effect of convertible notes	[4]	0		0

[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] 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.

[3] The dilutive effect of the 2.875% Convertible notes was excluded for the three and six months ended February 29, 2020 and the three and six months ended February 28, 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive.

[4] The 2.25% Convertible notes were issued in July 2019. The dilutive effect of the 2.25% Convertible notes was excluded for the three and six months ended February 29, 2020 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive.

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Derivative Instruments - Schedule Of Effects Of Cash Flow Hedges Included In Statement Of Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Derivative [Line Items]
Revenue	$ 623,848	$ 658,671	$ 1,393,207	$ 1,263,194
Cost of revenue	537,512	604,827	1,214,682	1,136,817
Interest and foreign exchange	12,609	9,237	25,461	13,641
Sales
Derivative [Line Items]
Amount of gain (loss) on cash flow hedge activity	67	(411)	(99)	(667)
Cost of Sales
Derivative [Line Items]
Amount of gain (loss) on cash flow hedge activity	73	(358)	(2)	(590)
Interest and Foreign Exchange
Derivative [Line Items]
Amount of gain (loss) on cash flow hedge activity	$ (369)	$ (151)	$ (536)	$ (295)

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Cash flows from operating activities
Net earnings	$ 44,026	$ 29,165
Adjustments to reconcile net earnings to net cash used in operating activities:
Deferred income taxes	(6,714)	(3,405)
Depreciation and amortization	59,338	40,815
Net gain on disposition of equipment	(10,656)	(26,455)
Accretion of debt discount	2,718	2,165
Stock based compensation expense	7,237	7,311
Noncontrolling interest adjustments	9,038	5,306
Other	(39)	1,809
Decrease (increase) in assets:
Accounts receivable, net	46,109	23,298
Inventories	(55,158)	(154,388)
Leased railcars for syndication	(123,033)	(76,386)
Other	(39,433)	(11,274)
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities	(67,988)	28,458
Deferred revenue	1,381	(13,041)
Net cash used in operating activities	(133,174)	(146,622)
Cash flows from investing activities
Proceeds from sales of assets	41,827	63,879
Capital expenditures	(40,834)	(98,176)
Investment in and advances to unconsolidated affiliates	(1,500)	(11,393)
Cash distribution from unconsolidated affiliates and other	11,273	1,986
Net cash provided by (used in) investing activities	10,766	(43,704)
Cash flows from financing activities
Net change in revolving notes with maturities of 90 days or less	10,246	(6,007)
Proceeds from issuance of notes payable		225,000
Repayments of notes payable	(17,120)	(176,641)
Debt issuance costs		(2,770)
Dividends	(17,312)	(16,651)
Cash distribution to joint venture partner	(8,706)	(5,058)
Tax payments for net share settlement of restricted stock	(1,895)	(4,762)
Net cash provided by (used in) financing activities	(34,787)	13,111
Effect of exchange rate changes	(2,824)	825
Decrease in cash and cash equivalents and restricted cash	(160,019)	(176,390)
Cash and cash equivalents and restricted cash
Beginning of period	338,487	539,474
Cash and cash equivalents and restricted cash, Ending balance	178,468	363,084
Balance Sheet Reconciliation:
Cash and cash equivalents	169,899	341,500
Restricted cash	8,569	21,584
Cash and cash equivalents and restricted cash, Ending balance	178,468	363,084
Interest	11,608	8,600
Income taxes, net	25,503	31,494
Non-cash activity
Transfer from Leased railcars for syndication to Equipment on operating leases, net	55,739	42,809
Capital expenditures accrued in Accounts payable and accrued liabilities	3,237	11,812
Change in Accounts payable and accrued liabilities associated with dividends declared	(96)	50
Conversion of unconsolidated affiliate note receivable to Investment in unconsolidated affiliates	4,760
Change in Accounts payable and accrued liabilities associated with cash distributions to joint venture partner	$ 535	$ (3,372)

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Leases - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Feb. 29, 2020	Feb. 29, 2020	Aug. 31, 2019
Lessor and Lessee, Lease, Description [Line Items]
Operating lease rental revenues	$ 9.8	$ 21.2
Finance lease option to extend		15
Car Hire Utilization Arrangements
Lessor and Lessee, Lease, Description [Line Items]
Operating lease rental revenues	2.8	$ 6.5
Minimum
Lessor and Lessee, Lease, Description [Line Items]
Sublease period		1 year
Financing lease remaining lease term		1 year
Maximum
Lessor and Lessee, Lease, Description [Line Items]
Sublease period		5 years
Financing lease remaining lease term		79 years
Property Subject to Operating Lease
Lessor and Lessee, Lease, Description [Line Items]
Accumulated depreciation	32.9	$ 32.9	$ 44.2
Depreciation expense	$ 3.0	$ 6.6

XML

Cover Page - shares	6 Months Ended
	Feb. 29, 2020	Apr. 01, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 29, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Registrant Name	THE GREENBRIER COMPANIES, INC.
Trading Symbol	GBX
Security Exchange Name	NYSE
Entity Central Index Key	0000923120
Current Fiscal Year End Date	--08-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Title of 12(b) Security	Common Stock
Entity Common Stock, Shares Outstanding		32,667,665
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-13146
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Incorporation, State or Country Code	OR
Entity Tax Identification Number	93-0816972
Entity Address, Address Line One	One Centerpointe Drive
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Lake Oswego
Entity Address, State or Province	OR
Entity Address, Postal Zip Code	97035
City Area Code	503
Local Phone Number	684-7000

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net earnings		$ 20,015	$ 5,783	$ 44,026	$ 29,165
Other comprehensive income (loss)
Translation adjustment		(703)	1,745	(2,286)	(2,186)
Reclassification of derivative financial instruments recognized in net earnings	[1]	168	701	477	1,170
Unrealized loss on derivative financial instruments	[2]	(3,638)	(1,035)	(1,484)	(3,337)
Other (net of tax effect)		242	306	(221)	76
Other comprehensive income		(3,931)	1,717	(3,514)	(4,277)
Comprehensive income		16,084	7,500	40,512	24,888
Comprehensive income attributable to noncontrolling interest		(6,384)	(3,012)	(22,720)	(8,423)
Comprehensive income attributable to Greenbrier		$ 9,700	$ 4,488	$ 17,792	$ 16,465

[1] Net of tax effect of ($0.1 million) and ($0.2 million) for the three months ended February 29, 2020 and February 28, 2019 and ($0.2 million) and ($0.4 million) for the six months ended February 29, 2020 and February 28, 2019

[2] Net of tax effect of $1.3 million and $0.2 million for the three months ended February 29, 2020 and February 28, 2019 and $0.7 million and $1.1 million for the six months ended February 29, 2020 and February 28, 2019

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Acquisitions - Identified Intangible Assets (Detail) - American Railcar Industries $ in Thousands	6 Months Ended
	Feb. 29, 2020 USD ($)
Business Acquisition [Line Items]
Identified intangible assets subject to amortization	$ 35,571
Other identified intangible assets not subject to amortization	860
Total identified intangible assets	36,431
Trademarks and patents
Business Acquisition [Line Items]
Identified intangible assets subject to amortization	$ 19,500
Identified intangible assets subject to amortization,Useful Life	9 years
Customer and supplier relationships
Business Acquisition [Line Items]
Identified intangible assets subject to amortization	$ 16,071
Identified intangible assets subject to amortization,Useful Life	7 years

XML

Revenue Recognition - Additional information (Detail) $ in Millions	3 Months Ended	6 Months Ended
	Feb. 29, 2020 USD ($)	Feb. 29, 2020 USD ($)
Revenue From Contract With Customers [Line Items]
Revenue recognized from contract with customers liability	$ 3.8	$ 24.5
Railcar sales
Revenue From Contract With Customers [Line Items]
Expected revenue recognized in the reminder of fiscal year	900.0	900.0
Services
Revenue From Contract With Customers [Line Items]
Expected revenue recognized in the reminder of fiscal year	$ 140.1	$ 140.1
Expected performance percentage	51.00%	51.00%

XML

Revolving Notes - Additional Information (Detail)	6 Months Ended
	Feb. 29, 2020 USD ($) Facility CreditFacility	Aug. 31, 2019 USD ($)
Line of Credit Facility [Line Items]
Line of credit facility maximum capacity	$ 451,100,000
Long-term Line of Credit	$ 37,196,000	$ 27,115,000
Number of lines of credits | CreditFacility	2
Senior Secured Credit Facilities, Consisting of 3 Components
Line of Credit Facility [Line Items]
Number of senior secured credit facilities | Facility	3
Line of credit facility maximum capacity	$ 706,000,000.0
Letter of credit facility outstanding amount	27,500,000	24,400,000
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities
Line of Credit Facility [Line Items]
Line of credit facility maximum capacity	$ 600,000,000.0
Line of credit maturity date	2024-06
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | LIBOR
Line of Credit Facility [Line Items]
Debt instrument, percentage points added to the reference rate	1.50%
Revolving Line of Credit, 1st Component of Senior Secured Credit Facilities | Prime Rate
Line of Credit Facility [Line Items]
Debt instrument, percentage points added to the reference rate	0.50%
European Line of Credit, 2nd Component of Senior Secured Credit Facilities
Line of Credit Facility [Line Items]
Line of credit facility maximum capacity	$ 56,000,000.0
Long-term Line of Credit	14,000,000.0
Letter of credit facility outstanding amount	$ 37,200,000	$ 27,100,000
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Minimum
Line of Credit Facility [Line Items]
Line of credit maturity date	2020-06
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | Maximum
Line of Credit Facility [Line Items]
Line of credit maturity date	2021-07
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | WIBOR | Minimum
Line of Credit Facility [Line Items]
Debt instrument, percentage points added to the reference rate	1.10%
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | WIBOR | Maximum
Line of Credit Facility [Line Items]
Debt instrument, percentage points added to the reference rate	1.50%
European Line of Credit, 2nd Component of Senior Secured Credit Facilities | EURIBOR
Line of Credit Facility [Line Items]
Debt instrument, percentage points added to the reference rate	1.10%
Mexican Railcar Manufacturing Joint Venture Line of Credit, 3rd Component of Senior Secured Credit Facilities
Line of Credit Facility [Line Items]
Line of credit facility maximum capacity	$ 50,000,000
Mexican Railcar Manufacturing Joint Venture Line of Credit 1, 3rd Component of Senior Secured Credit Facilities
Line of Credit Facility [Line Items]
Line of credit facility maximum capacity	$ 30,000,000
Line of credit facility borrowings outstanding due period	2024-03
Mexican Railcar Manufacturing Joint Venture Line of Credit 1, 3rd Component of Senior Secured Credit Facilities | LIBOR
Line of Credit Facility [Line Items]
Debt instrument, percentage points added to the reference rate	2.00%
Mexican Railcar Manufacturing Joint Venture Line of Credit 2, 3rd Component of Senior Secured Credit Facilities
Line of Credit Facility [Line Items]
Line of credit facility maximum capacity	$ 20,000,000
Line of credit facility borrowings outstanding due period	2021-06
Joint venture partner each guaranteed percentage	50.00%
Mexican Railcar Manufacturing Joint Venture Line of Credit 2, 3rd Component of Senior Secured Credit Facilities | LIBOR
Line of Credit Facility [Line Items]
Debt instrument, percentage points added to the reference rate	2.00%

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Acquisitions (Tables)

6 Months Ended

Feb. 29, 2020

Schedule of Identified Intangible Assets Assumed In the Acquisition

The identified intangible assets assumed in the acquisition were recognized as follows:

(in thousands)	Fair value		Weighted average estimated useful life (in years)
Trademarks and patents	$	19,500		9
Customer and supplier relationships		16,071		7
Identified intangible assets subject to amortization		35,571
Other identified intangible assets not subject to    amortization		860
Total identified intangible assets	$	36,431

American Railcar Industries

Preliminary Allocation of Purchase Price Based on Fair Value of Net Assets Acquired

The preliminary purchase price of the net assets acquired from ARI was allocated as follows:    

(in thousands)
Accounts receivable, net	$	27,659
Inventories		98,053
Property, plant and equipment, net		225,045
Investments in unconsolidated affiliates		40,314
Intangibles and other assets, net		36,785
Goodwill		56,514
Total assets acquired		484,370
Total liabilities assumed		67,174
Net assets acquired	$	417,196

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Stock Based Compensation

6 Months Ended

Feb. 29, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Based Compensation

Note 11 – Stock Based Compensation

The value of stock based compensation awards is amortized as compensation expense from the date of grant through the earlier of the vesting period or in some instances the recipient’s eligible retirement date. Stock based compensation expense consists of restricted stock unit, restricted stock and phantom stock unit awards.

Stock based compensation expense was $4.1 million and $7.2 million for the three and six months ended February 29, 2020, respectively and $4.1 million and $7.3 million for the three and six months ended February 28, 2019, respectively. Compensation expense is recorded in Selling and administrative expense and Cost of revenue on the Consolidated Statements of Income.

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Commitments and Contingencies

6 Months Ended

Feb. 29, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 15 – Commitments and Contingencies

Portland Harbor Superfund Site

The Company's Portland, Oregon manufacturing facility is located adjacent to the Willamette River. In December 2000, the U.S. Environmental Protection Agency (EPA) classified portions of the Willamette River bed known as the Portland Harbor, including the portion fronting the Company's manufacturing facility, as a federal "National Priority List" or "Superfund" site due to sediment contamination (the Portland Harbor Site). The Company and more than 140 other parties have received a "General Notice" of potential liability from the EPA relating to the Portland Harbor Site. The letter advised the Company that it may be liable for the costs of investigation and remediation (which liability may be joint and several with other potentially responsible parties) as well as for natural resource damages resulting from releases of hazardous substances to the site. Ten private and public entities, including the Company (the Lower Willamette Group or LWG), signed an Administrative Order on Consent (AOC) to perform a remedial investigation/feasibility study (RI/FS) of the Portland Harbor Site under EPA oversight, and several additional entities have not signed such consent, but nevertheless contributed money to the effort. The EPA-mandated RI/FS was produced by the LWG and cost over $110 million during a 17-year period. The Company bore a percentage of the total costs incurred by the LWG in connection with the investigation. The Company's aggregate expenditure during the 17-year period was not material. Some or all of any such outlay may be recoverable from other responsible parties. The EPA issued its Record of Decision (ROD) for the Portland Harbor Site on January 6, 2017 and accordingly on October 26, 2017, the AOC was terminated.

Separate from the process described above, which focused on the type of remediation to be performed at the Portland Harbor Site and the schedule for such remediation, 83 parties, including the State of Oregon and the federal government, entered into a non-judicial mediation process to try to allocate costs associated with remediation of the Portland Harbor site. Approximately 110 additional parties signed tolling agreements related to such allocations. On April 23, 2009, the Company and the other AOC signatories filed suit against 69 other parties due to a possible limitations period for some such claims; Arkema Inc. et al v. A & C Foundry Products, Inc. et al, U.S. District Court, District of Oregon, Case #3:09-cv-453-PK. All but 12 of these parties elected to sign tolling agreements and be dismissed without prejudice, and the case has been stayed by the court until January 14, 2022.

The EPA's January 6, 2017 ROD identifies a clean-up remedy that the EPA estimates will take 13 years of active remediation, followed by 30 years of monitoring with an estimated undiscounted cost of $1.7 billion. The EPA typically expects its cost estimates to be accurate within a range of -30% to +50%, but this ROD states that changes in costs are likely to occur as a result of new data it wants to collect over a 2-year period prior to final remedy design. The ROD identifies 13 Sediment Decision Units. One of the units, RM9W, includes the nearshore area of the river sediments offshore of the Company's Portland, Oregon manufacturing facility as well as upstream and downstream of the facility. It also includes a portion of the Company's riverbank. The ROD does not break down total remediation costs by Sediment Decision Unit. The EPA's ROD concluded that more data was needed to better define clean-up scope and cost. On December 8, 2017, the EPA announced that Portland Harbor is one of 21 Superfund sites targeted for greater attention. On December 19, 2017, the EPA announced that it had entered a new AOC with a group of four potentially responsible parties to conduct additional sampling during 2018 and 2019 to provide more certainty about clean-up costs and aid the mediation process to allocate those costs. The parties to the mediation, including the Company, agreed to help fund the additional sampling, which is now complete. The EPA has also requested that potentially responsible parties enter AOCs during 2019 agreeing to conduct remedial design studies. Some parties have signed AOCs and several other parties including the Company have engaged in discussions with EPA regarding the terms of such AOCs. The allocation process is continuing in parallel with the process to define the remediation steps.

The ROD does not address responsibility for the costs of clean-up, nor does it allocate such costs among the potentially responsible parties. Responsibility for funding and implementing the EPA's selected cleanup remedy will be determined at an unspecified later date. Based on the investigation to date, the Company believes that it did not contribute in any material way to contamination in the river sediments or the damage of natural resources in the Portland Harbor Site and that the damage in the area of the Portland Harbor Site adjacent to its property precedes its ownership of the Portland, Oregon manufacturing facility. Because these environmental investigations are still underway, including the collection of new pre-remedial design sampling data by EPA, sufficient information is currently not available to determine the Company's liability, if any, for the cost of any required remediation or restoration of the Portland Harbor Site or to estimate a range of potential loss. Based on the results of the pending investigations and future assessments of natural resource damages, the Company may be required to incur costs associated with additional phases of investigation or remedial action, and may be liable for damages to natural resources. In addition, the Company may be required to perform periodic maintenance dredging in order to continue to launch vessels from its launch ways in Portland, Oregon, on the Willamette River, and the river's classification as a Superfund site could result in some limitations on future dredging and launch activities. Any of these matters could adversely affect the Company's business and Consolidated Financial Statements, or the value of its Portland property.

On January 30, 2017 the Confederated Tribes and Bands of Yakama Nation sued 33 parties including the Company as well as the United States and the State of Oregon for costs it incurred in assessing alleged natural resource damages to the Columbia River from contaminants deposited in Portland Harbor. Confederated Tribes and Bands of the Yakama Nation v. Air Liquide America Corp., et al., United States Court for the District of Oregon Case No. 3i17-CV-00164-SB. The complaint does not specify the amount of damages the plaintiff will seek. The case has been stayed until the allocation process is concluded.

Oregon Department of Environmental Quality (DEQ) Regulation of Portland Manufacturing Operations

The Company has entered into a Voluntary Cleanup Agreement with the Oregon Department of Environmental Quality (DEQ) in which the Company agreed to conduct an investigation of whether, and to what extent, past or present operations at the Portland property may have released hazardous substances into the environment. The Company has also signed an Order on Consent with the DEQ to finalize the investigation of potential onsite sources of contamination that may have a release pathway to the Willamette River. Interim precautionary measures are also required in the order and the Company is discussing with the DEQ potential remedial actions which may be required. The Company's aggregate expenditure has not been material, however the Company could incur significant expenses for remediation. Some or all of any such outlay may be recoverable from other responsible parties.

Other Litigation, Commitments and Contingencies

In connection with the acquisition of the manufacturing business of ARI, the Company agreed to assume potential legacy liabilities (known and unknown) related to railcars manufactured by ARI. Among these potential liabilities are certain retrofit and repair obligations arising from regulatory actions by the Federal Railroad Administration and the Association of American Railroads. In some cases, the seller shares with the Company the costs of these retrofit and repair obligations. The Company currently is not able to determine if any of these liabilities will have a material adverse impact on the Company’s results of operations.

From time to time, Greenbrier is involved as a defendant in litigation in the ordinary course of business, the outcomes of which cannot be predicted with certainty. While the ultimate outcome of such legal proceedings cannot be determined at this time, the Company believes that the resolution of pending litigation will not have a material adverse effect on the Company's Consolidated Financial Statements.

As of February 29, 2020, the Company had outstanding letters of credit aggregating to $27.5 million associated with performance guarantees, facility leases and workers compensation insurance.

As of February 29, 2020, the Company had a $4.5 million note receivable from Amsted-Maxion Cruzeiro, its unconsolidated Brazilian castings and components manufacturer. This note receivable is included on the Consolidated Balance Sheet in Accounts receivable, net. In the future, the Company may make loans to or provide guarantees for Amsted-Maxion Cruzeiro or Greenbrier-Maxion, its unconsolidated Brazilian railcar manufacturer.

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Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Revenue
Revenue		$ 623,848	$ 658,671	$ 1,393,207	$ 1,263,194
Cost of revenue
Cost of revenue		537,512	604,827	1,214,682	1,136,817
Margin		86,336	53,844	178,525	126,377
Selling and administrative expense		54,597	47,892	108,961	98,324
Net gain on disposition of equipment		(6,697)	(12,102)	(10,656)	(26,455)
Earnings from operations		38,436	18,054	80,220	54,508
Other costs
Interest and foreign exchange		12,609	9,237	25,461	13,641
Earnings before income taxes and earnings (loss) from unconsolidated affiliates		25,827	8,817	54,759	40,867
Income tax expense		(7,463)	(2,248)	(13,457)	(11,383)
Earnings before earnings (loss) from unconsolidated affiliates		18,364	6,569	41,302	29,484
Earnings (loss) from unconsolidated affiliates		1,651	(786)	2,724	(319)
Net earnings		20,015	5,783	44,026	29,165
Net earnings attributable to noncontrolling interest		(6,386)	(3,018)	(22,728)	(8,444)
Net earnings attributable to Greenbrier		$ 13,629	$ 2,765	$ 21,298	$ 20,721
Basic earnings per common share		$ 0.42	$ 0.08	$ 0.65	$ 0.63
Diluted earnings per common share		$ 0.41	$ 0.08	$ 0.64	$ 0.63
Weighted average common shares:
Basic	[1]	32,661	32,628	32,645	32,634
Diluted		33,482	33,206	33,382	33,149
Dividends declared per common share		$ 0.27	$ 0.25	$ 0.52	$ 0.50
Manufacturing
Revenue
Revenue		$ 489,943	$ 476,019	$ 1,147,310	$ 947,808
Cost of revenue
Cost of revenue		422,309	442,996	1,004,221	860,801
Earnings from operations		46,105	13,990	99,248	50,845
Wheels, Repair & Parts
Revenue
Revenue		91,225	125,278	177,833	233,821
Cost of revenue
Cost of revenue		84,373	118,455	166,265	219,433
Earnings from operations		3,320	2,823	4,434	6,070
Leasing & Services
Revenue
Revenue		42,680	57,374	68,064	81,565
Cost of revenue
Cost of revenue		30,830	43,376	44,196	56,583
Earnings from operations		$ 12,793	$ 21,030	$ 22,570	$ 38,543

[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.

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Segment Information - Additional Information (Detail)	6 Months Ended
	Feb. 29, 2020 Segment
Segment Reporting [Abstract]
Number of reportable segments	3

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Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Cash dividend per share	$ 0.27	$ 0.25	$ 0.52	$ 0.50
Equity Excluding Contingently Redeemable Noncontrolling Interest [Member]
Cash dividend per share	$ 0.27	$ 0.25	$ 0.52	$ 0.50

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Leases - Aggregate Minimum Future Amounts Receivable Under All Non-Cancelable Operating Leases and Subleases (Detail) $ in Thousands	Feb. 29, 2020 USD ($)
Leases [Abstract]
Remaining six months of 2020	$ 12,272
2021	22,314
2022	20,372
2023	14,812
2024	11,135
Thereafter	22,009
Operating Leases, Future Minimum Payments Receivable, Total	$ 102,914

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Intangibles and Other Assets, Net - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 2.7	$ 1.4	$ 5.5	$ 3.4
Future amortization expense, 2020	10.9		10.9
Future amortization expense, 2021	10.9		10.9
Future amortization expense, 2022	7.6		7.6
Future amortization expense, 2023	6.3		6.3
Future amortization expense, 2024	$ 6.3		$ 6.3

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Acquisitions - Preliminary Allocation of Purchase Price Based on Fair Value of Net Assets Acquired (Detail) - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Business Acquisition [Line Items]
Intangibles and other assets, net	$ 36,431
Goodwill	129,684	$ 129,947
American Railcar Industries
Business Acquisition [Line Items]
Accounts receivable, net	27,659
Inventories	98,053
Property, plant and equipment, net	225,045
Investments in unconsolidated affiliates	40,314
Intangibles and other assets, net	36,785
Goodwill	56,514
Total assets acquired	484,370
Total liabilities assumed	67,174
Net assets acquired	$ 417,196

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Revenue Recognition - Summary of Contract Balances (Detail) - USD ($) $ in Thousands		6 Months Ended
		Feb. 29, 2020	Aug. 31, 2019
Change In Contract With Customer Asset And Liability [Abstract]
Contract assets		$ 7,472	$ 10,196
Contract liabilities	[1]	55,844	$ 52,118
Change in contract assets		(2,724)
Change in contract liabilities	[1]	$ 3,726

[1] Contract liabilities balance includes deferred revenue within the scope of Topic 606.

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Derivative Instruments

6 Months Ended

Feb. 29, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments

Note 12 – Derivative Instruments

Foreign operations give rise to market risks from changes in foreign currency exchange rates. Foreign currency forward exchange contracts with established financial institutions are utilized to hedge a portion of that risk. Interest rate swap agreements are used to reduce the impact of changes in interest rates on certain debt. The Company’s foreign currency forward exchange contracts and interest rate swap agreements are designated as cash flow hedges, and therefore the effective portion of unrealized gains and losses is recorded in accumulated other comprehensive income or loss.

At February 29, 2020 exchange rates, notional amounts of forward exchange contracts for the purchase of Polish Zlotys and the sale of Euros and Pound Sterling; and the purchase of Mexican Pesos and the sale of U.S. Dollars aggregated to $54.1 million. The fair value of the contracts is included on the Consolidated Balance Sheets as Accounts payable and accrued liabilities when there is a loss, or as Accounts receivable, net when there is a gain. As the contracts mature at various dates through May 2022, any such gain or loss remaining will be recognized in manufacturing revenue or cost of revenue along with the related transactions. In the event that the underlying transaction does not occur or does not occur in the period designated at the inception of the hedge, the amount classified in accumulated other comprehensive loss would be reclassified to the results of operations in Interest and foreign exchange at the time of occurrence. At February 29, 2020 exchange rates, approximately $0.5 million would be reclassified to revenue or cost of revenue in the next year.

At February 29, 2020, an interest rate swap agreement maturing in September 2023 had a notional amount of $107.6 million and an interest rate swap agreement maturing June 2024 had a notional amount of $148.1 million. The fair value of the contracts are included on the Consolidated Balance Sheets in Accounts payable and accrued liabilities when there is a loss, or in Accounts receivable, net when there is a gain. As interest expense on the underlying debt is recognized, amounts corresponding to the interest rate swap are reclassified from Accumulated other comprehensive loss and charged or credited to interest expense. At February 29, 2020 interest rates, approximately $2.9 million would be reclassified to interest expense in the next year.   

Fair Values of Derivative Instruments

	Asset Derivatives					Liability Derivatives
		February 29, 2020		August 31, 2019			February 29, 2020		August 31, 2019
(In thousands)	Balance sheet location	Fair Value		Fair Value		Balance sheet location	Fair Value		Fair Value
Derivatives designated    as hedging    instruments
Foreign forward    exchange contracts	Accounts receivable, net	$	488	$	64	Accounts payable and accrued liabilities	$	194	$	437
Interest rate swap    contracts	Accounts receivable, net		—		—	Accounts payable and accrued liabilities		12,504		10,255
		$	488	$	64		$	12,698	$	10,692
Derivatives not    designated as    hedging instruments
Foreign forward    exchange contracts	Accounts receivable, net	$	39	$	—	Accounts payable and accrued liabilities	$	281	$	587

The Effect of Derivative Instruments on the Statements of Income

Three Months Ended February 29, 2020 and February 28, 2019

Derivatives in cash flow hedging relationships	Location of gain (loss) recognized in income on derivatives	Gain (loss) recognized in income on derivatives three months ended
		February 29, 2020			February 28, 2019
Foreign forward exchange contract	Interest and foreign exchange	$	(165	)	$	115

Derivatives in cash flow hedging relationships	Gain (loss) recognized in OCI on derivatives three months ended,						Location of gain (loss) reclassified from accumulated OCI into income	Gain (loss) reclassified from accumulated OCI into income three months ended						Location of gain (loss) on derivative (amount excluded from effectiveness testing)	Gain (loss) recognized on derivative (amount excluded from effectiveness testing) three months ended
	February 29, 2020			February 28, 2019				February 29, 2020			February 28, 2019				February 29, 2020			February 28, 2019
Foreign forward    exchange contracts	$	190		$	(418	)	Revenue	$	67		$	(411	)	Revenue	$	190		$	638
Foreign forward    exchange contracts		411			1,100		Cost of revenue		73			(358	)	Cost of revenue		210			289
Interest rate swap    contracts		(5,503	)		(1,916	)	Interest and foreign exchange		(369	)		(151	)	Interest and foreign exchange		(116	)		25
	$	(4,902	)	$	(1,234	)		$	(229	)	$	(920	)		$	284		$	952

The following table presents the amounts in the Consolidated Statements of Income in which the effects of the cash flow hedges are recorded and the effects of the cash flow hedge activity on these line items for the three months ended February 29, 2020 and February 28, 2019:

	For The Three Months Ended
	February 29, 2020					February 28, 2019
	Total		Amount of gain (loss) on cash flow hedge activity			Total		Amount of gain (loss) on cash flow hedge activity
Revenue	$	623,848	$	67		$	658,671	$	(411	)
Cost of revenue		537,512		73			604,827		(358	)
Interest and foreign exchange		12,609		(369	)		9,237		(151	)

Six Months Ended February 29, 2020 and February 28, 2019

Derivatives in cash flow hedging relationships	Location of gain (loss) recognized in income on derivatives	Gain (loss) recognized in income on derivatives six months ended
		February 29, 2020			February 28, 2019
Foreign forward exchange contract	Interest and foreign exchange	$	(94	)	$	495

Derivatives in cash flow hedging relationships	Gain (loss) recognized in OCI on derivatives six months ended						Location of gain (loss) reclassified from accumulated OCI into income	Gain (loss) reclassified from accumulated OCI into income six months ended						Location of gain (loss) on derivative amount excluded from effectiveness testing)	Gain (loss) recognized on derivative (amount excluded from effectiveness testing) six months ended
	February 29, 2020			February 28, 2019				February 29, 2020			February 28, 2019				February 29, 2020			February 28, 2019
Foreign forward    exchange contracts	$	763		$	(346	)	Revenue	$	(99	)	$	(667	)	Revenue	$	643		$	900
Foreign forward    exchange contracts		(183	)		(395	)	Cost of revenue		(2	)		(590	)	Cost of revenue		344			678
Interest rate swap    contracts		(2,784	)		(3,689	)	Interest and foreign exchange		(536	)		(295	)	Interest and foreign exchange		(281	)		(22	)
	$	(2,204	)	$	(4,430	)		$	(637	)	$	(1,552	)		$	706		$	1,556

	For The Six Months Ended
	February 29, 2020					February 28, 2019
	Total		Amount of gain (loss) on cash flow hedge activity			Total		Amount of gain (loss) on cash flow hedge activity
Revenue	$	1,393,207	$	(99	)	$	1,263,194	$	(667	)
Cost of revenue		1,214,682		(2	)		1,136,817		(590	)
Interest and foreign exchange		25,461		(536	)		13,641		(295	)

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Fair Value Measures

6 Months Ended

Feb. 29, 2020

Fair Value Disclosures [Abstract]

Fair Value Measures

Note 16 – Fair Value Measures

Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value, for this disclosure, is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

Level 1 - observable inputs such as unadjusted quoted prices in active markets for identical instruments;

Level 2 - inputs, other than the quoted market prices in active markets for similar instruments, which are observable, either directly or indirectly; and

Level 3 - unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions.

Assets and liabilities measured at fair value on a recurring basis as of February 29, 2020 were:

(In thousands)	Total		Level 1		Level 2 (1)		Level 3
Assets:
Derivative financial instruments	$	527	$	—	$	527	$	—
Nonqualified savings plan investments		31,766		31,766		—		—
Cash equivalents		23,166		23,166		—		—
	$	55,459	$	54,932	$	527	$	—
Liabilities:
Derivative financial instruments	$	12,979	$	—	$	12,979	$	—

(1) Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 12 - Derivative Instruments for further discussion.

Assets and liabilities measured at fair value on a recurring basis as of August 31, 2019 were:

(In thousands)	Total		Level 1		Level 2		Level 3
Assets:
Derivative financial instruments	$	64	$	—	$	64	$	—
Nonqualified savings plan investments		27,967		27,967		—		—
Cash equivalents		68,100		68,100		—		—
	$	96,131	$	96,067	$	64	$	—
Liabilities:
Derivative financial instruments	$	11,279	$	—	$	11,279	$	—

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Inventories (Tables)

6 Months Ended

Feb. 29, 2020

Inventory Disclosure [Abstract]

Components of Inventories

Inventories are valued at the lower of cost or net realizable value using the first-in first-out method. Work-in-process includes material, labor and overhead. Finished goods includes completed wheels, parts and railcars not on lease or in transit. The following table summarizes the Company’s inventory balance:

(In thousands)	February 29, 2020			August 31, 2019
Manufacturing supplies and raw materials	$	352,291		$	387,015
Work-in-process		161,616			156,614
Finished goods		206,035			130,576
Excess and obsolete adjustment		(10,827	)		(9,512	)
	$	709,115		$	664,693

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Fair Value Measures (Tables)

6 Months Ended

Feb. 29, 2020

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of February 29, 2020 were:

(In thousands)	Total		Level 1		Level 2 (1)		Level 3
Assets:
Derivative financial instruments	$	527	$	—	$	527	$	—
Nonqualified savings plan investments		31,766		31,766		—		—
Cash equivalents		23,166		23,166		—		—
	$	55,459	$	54,932	$	527	$	—
Liabilities:
Derivative financial instruments	$	12,979	$	—	$	12,979	$	—

(1) Level 2 assets and liabilities include derivative financial instruments that are valued based on observable inputs. See Note 12 - Derivative Instruments for further discussion.

Assets and liabilities measured at fair value on a recurring basis as of August 31, 2019 were:

(In thousands)	Total		Level 1		Level 2		Level 3
Assets:
Derivative financial instruments	$	64	$	—	$	64	$	—
Nonqualified savings plan investments		27,967		27,967		—		—
Cash equivalents		68,100		68,100		—		—
	$	96,131	$	96,067	$	64	$	—
Liabilities:
Derivative financial instruments	$	11,279	$	—	$	11,279	$	—

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Earnings Per Share (Tables)

6 Months Ended

Feb. 29, 2020

Earnings Per Share [Abstract]

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				Six Months Ended
(In thousands)	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Weighted average basic common shares    outstanding (1)		32,661		32,628		32,645		32,634
Dilutive effect of 2.875% Convertible notes (2)		—		—		—		—
Dilutive effect of 2.25% Convertible notes (3)		—	n/a			—	n/a
Dilutive effect of restricted stock units (4)		821		578		737		515
Weighted average diluted common shares    outstanding		33,482		33,206		33,382		33,149

(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 and six months ended February 29, 2020 and the three and six months ended February 28, 2019 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 and six months ended February 29, 2020 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				Six Months Ended
	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Net earnings attributable to Greenbrier	$	13,629	$	2,765	$	21,298	$	20,721
Weighted average diluted common shares    outstanding		33,482		33,206		33,382		33,149
Diluted earnings per share	$	0.41	$	0.08	$	0.64	$	0.63

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Intangibles and Other Assets, net (Tables)

6 Months Ended

Feb. 29, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Identifiable Intangible and Other Assets

The following table summarizes the Company’s identifiable intangible and other assets balance:

(In thousands)	February 29, 2020			August 31, 2019
Intangible assets subject to amortization:
Customer relationships	$	89,722		$	89,722
Accumulated amortization		(52,691	)		(48,850	)
Other intangibles		33,845			34,031
Accumulated amortization		(8,188	)		(6,908	)
		62,688			67,995
Intangible assets not subject to amortization		5,107			5,450
Prepaid and other assets		18,779			15,749
Operating lease ROU assets		34,624			—
Nonqualified savings plan investments		31,766			27,967
Revolving notes issuance costs, net		4,095			4,568
Assets held for sale		3,650			3,650
Total Intangible and other assets, net	$	160,709		$	125,379

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Inventories

6 Months Ended

Feb. 29, 2020

Inventory Disclosure [Abstract]

Inventories

Note 4 – Inventories

Inventories are valued at the lower of cost or net realizable value using the first-in first-out method. Work-in-process includes material, labor and overhead. Finished goods includes completed wheels, parts and railcars not on lease or in transit. The following table summarizes the Company’s inventory balance:

(In thousands)	February 29, 2020			August 31, 2019
Manufacturing supplies and raw materials	$	352,291		$	387,015
Work-in-process		161,616			156,614
Finished goods		206,035			130,576
Excess and obsolete adjustment		(10,827	)		(9,512	)
	$	709,115		$	664,693

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Warranty Accruals

6 Months Ended

Feb. 29, 2020

Guarantees And Product Warranties [Abstract]

Warranty Accruals

Note 8 – Warranty Accruals

Warranty costs are estimated and charged to operations to cover a defined warranty period. The estimated warranty cost is based on the history of warranty claims for each particular product type. For new product types without a warranty history, preliminary estimates are based on historical information for similar product types. The warranty accruals, included in Accounts payable and accrued liabilities on the Consolidated Balance Sheets, are reviewed periodically and updated based on warranty trends and expirations of warranty periods.

Warranty accrual activity:

	Three Months						Six Months
(In thousands)	February 29, 2020			February 28, 2019			February 29, 2020			February 28, 2019
Balance at beginning of period	$	47,110		$	26,264		$	46,678		$	27,395
Charged to cost of revenue, net		884			1,412			3,262			2,853
Payments		(1,136	)		(2,612	)		(3,135	)		(4,796	)
Currency translation effect		(8	)		(70	)		45			(458	)
Balance at end of period	$	46,850		$	24,994		$	46,850		$	24,994

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Commitments and Contingencies - Additional Information (Detail)		204 Months Ended
	Jan. 06, 2017 USD ($) Segment	Dec. 31, 2016 USD ($)	Feb. 29, 2020 USD ($)
Commitments and Contingencies Disclosure [Line Items]
Remedial investigation and feasibility study		$ 110,000,000
Amsted-Maxion Cruzeiro
Commitments and Contingencies Disclosure [Line Items]
Note receivable			$ 4,500,000
Performance Guarantee
Commitments and Contingencies Disclosure [Line Items]
Letter of credit facility outstanding amount			$ 27,500,000
Portland Harbor Site
Commitments and Contingencies Disclosure [Line Items]
Number of sediment decision units | Segment	13
Estimated undiscounted cost	$ 1,700,000,000
Period for remedial action	13 years
Period for monitoring	30 years
New data collection period to reflect actual cost prior to final remedy design	2 years
Portland Harbor Site | Minimum
Commitments and Contingencies Disclosure [Line Items]
Accuracy of cost estimate	30.00%
Portland Harbor Site | Maximum
Commitments and Contingencies Disclosure [Line Items]
Accuracy of cost estimate	50.00%

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Warranty Accruals - Warranty Accrual Activity (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Guarantees And Product Warranties [Abstract]
Balance at beginning of period	$ 47,110	$ 26,264	$ 46,678	$ 27,395
Charged to cost of revenue, net	884	1,412	3,262	2,853
Payments	(1,136)	(2,612)	(3,135)	(4,796)
Currency translation effect	(8)	(70)	45	(458)
Balance at end of period	$ 46,850	$ 24,994	$ 46,850	$ 24,994

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Earnings Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Earnings Per Common Share (Parenthetical) (Detail)	Feb. 29, 2020	Feb. 28, 2019
2.875% Convertible Senior Notes
Earnings Per Share Disclosure [Line Items]
Debt instrument, interest rate	2.875%	2.875%
2.25% Convertible Senior Notes
Earnings Per Share Disclosure [Line Items]
Debt instrument, interest rate	2.25%

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Derivative Instruments - Additional Information (Detail)	6 Months Ended
	Feb. 29, 2020 USD ($)
Foreign Exchange Contracts
Derivative [Line Items]
Aggregate derivative notional amount	$ 54,100,000
Amount reclassified to revenue or cost of revenue in the next year	500,000
Interest rate swap contracts
Derivative [Line Items]
Unrealized pre-tax gain (loss) that would be reclassified to interest expense in the next year	2,900,000
Interest rate swap contracts | Derivatives maturing on September 2023
Derivative [Line Items]
Aggregate derivative notional amount	$ 107,600,000
Maturity date	2023-09
Interest rate swap contracts | Derivatives maturing on June 2024
Derivative [Line Items]
Aggregate derivative notional amount	$ 148,100,000
Maturity date	2024-06

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Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Inventory Disclosure [Abstract]
Manufacturing supplies and raw materials	$ 352,291	$ 387,015
Work-in-process	161,616	156,614
Finished goods	206,035	130,576
Excess and obsolete adjustment	(10,827)	(9,512)
Inventories	$ 709,115	$ 664,693

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Revenue Recognition - Summary of Estimated Revenue Related to Performance Obligations (Detail) $ in Millions	Feb. 29, 2020 USD ($)
Railcar sales
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue type 1	$ 900.0
Services
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue type 1	140.1
Other
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue type 1	43.6
Manufacturing | Railcar sales
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue type 1	2,698.1
Manufacturing | Marine
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue type 1	58.8
Manufacturing | Railcars for Syndication
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue type 1	$ 261.5	[1]

[1] Not a performance obligation as defined in Topic 606: Contracts with Customers

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Assets
Cash and cash equivalents	$ 169,899	$ 329,684
Restricted cash	8,569	8,803
Accounts receivable, net	326,229	373,383
Inventories	709,115	664,693
Leased railcars for syndication	255,073	182,269
Equipment on operating leases, net	385,974	366,688
Property, plant and equipment, net	723,326	717,973
Investment in unconsolidated affiliates	79,082	91,818
Intangibles and other assets, net	160,709	125,379
Goodwill	129,684	129,947
Total assets	2,947,660	2,990,637
Liabilities and Equity
Revolving notes	37,196	27,115
Accounts payable and accrued liabilities	499,898	568,360
Deferred income taxes	9,173	13,946
Deferred revenue	70,869	85,070
Notes payable, net	811,860	822,885
Commitments and contingencies (Note 15)
Contingently redeemable noncontrolling interest	30,782	31,564
Greenbrier
Preferred stock – without par value; 25,000 shares authorized; none outstanding
Common stock - without par value; 50,000 shares authorized; 32,642 and 32,488 shares outstanding at February 29, 2020 and August 31, 2019
Additional paid-in capital	458,908	453,943
Retained earnings	875,885	867,602
Accumulated other comprehensive loss	(48,321)	(44,815)
Total equity – Greenbrier	1,286,472	1,276,730
Noncontrolling interest	201,410	164,967
Total equity	1,487,882	1,441,697
Liabilities and Equity	$ 2,947,660	$ 2,990,637

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Leases - Aggregate Minimum Future Amounts Payable Under Operating Leases (Detail) - USD ($) $ in Thousands	Feb. 29, 2020	Sep. 01, 2019
Leases [Abstract]
Remaining six months of 2020	$ 6,153
2021	8,988
2022	5,935
2023	5,433
2024	3,948
Thereafter	10,436
Total lease payments	40,893
Less: Imputed interest	(4,897)
Total lease obligations	$ 35,996	$ 41,600

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Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Statement Of Income And Comprehensive Income [Abstract]
Reclassification of derivative financial instruments recognized in net earnings (loss), tax	$ (0.1)	$ (0.2)	$ (0.2)	$ (0.4)
Unrealized loss on derivative financial instruments, tax	$ 1.3	$ 0.2	$ 0.7	$ 1.1

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Derivative Instruments - Effect of Derivative Instruments on Statements of Income (Detail) - Cash Flow Hedging - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI on derivatives	$ (4,902)	$ (1,234)	$ (2,204)	$ (4,430)
Gain (loss) reclassified accumulated OCI income	(229)	(920)	(637)	(1,552)
Gain (loss) recognized on derivative (amount excluded from effectiveness testing)	284	952	706	1,556
Foreign Exchange Forward | Interest and Foreign Exchange
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in income on derivatives	(165)	115	(94)	495
Foreign Exchange Forward | Sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI on derivatives	190	(418)	763	(346)
Gain (loss) reclassified accumulated OCI income	67	(411)	(99)	(667)
Gain (loss) recognized on derivative (amount excluded from effectiveness testing)	190	638	643	900
Foreign Exchange Forward | Cost Of Revenue
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI on derivatives	411	1,100	(183)	(395)
Gain (loss) reclassified accumulated OCI income	73	(358)	(2)	(590)
Gain (loss) recognized on derivative (amount excluded from effectiveness testing)	210	289	344	678
Interest rate swap contracts | Interest and Foreign Exchange
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI on derivatives	(5,503)	(1,916)	(2,784)	(3,689)
Gain (loss) reclassified accumulated OCI income	(369)	(151)	(536)	(295)
Gain (loss) recognized on derivative (amount excluded from effectiveness testing)	$ (116)	$ 25	$ (281)	$ (22)

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Segment Information - Reconciliation of Earnings from Operations to Earnings Before Income Tax and Earnings (Loss) from Unconsolidated Affiliates (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Segment Reporting [Abstract]
Earnings from operations	$ 38,436	$ 18,054	$ 80,220	$ 54,508
Interest and foreign exchange	12,609	9,237	25,461	13,641
Earnings before income tax and earnings (loss) from unconsolidated affiliates	$ 25,827	$ 8,817	$ 54,759	$ 40,867

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Leases

6 Months Ended

Feb. 29, 2020

Leases [Abstract]

Leases

Note 14 – Leases

Lessor

Equipment on operating leases is reported net of accumulated depreciation of $32.9 million and $44.2 million as of February 29, 2020 and August 31, 2019, respectively. Depreciation expense was $3.0 million and $6.6 million for the three and six months ended February 29, 2020. In addition, certain railcar equipment leased-in by the Company on operating leases is subleased to customers under non-cancelable operating leases with lease terms ranging from one to five years. Operating lease rental revenues included in the Company’s Statement of Income for the three and six months ended February 29, 2020 was $9.8 million and $21.2 million, which included $2.8 million and $6.5 million, respectively, of revenue as a result of daily, monthly or car hire utilization arrangements.

Aggregate minimum future amounts receivable under all non-cancelable operating leases and subleases at February 29, 2020, will mature as follows:

(in thousands)
Remaining six months of 2020	$	12,272
2021		22,314
2022		20,372
2023		14,812
2024		11,135
Thereafter		22,009
	$	102,914

Lessee

The Company leases railcars, real estate, and certain equipment under operating and, to a lesser extent, finance lease arrangements. As of and for the three and six months ended February 29, 2020, finance leases were not a material component of the Company's lease portfolio. The Company’s real estate and equipment leases have remaining lease terms ranging from less than one year to 79 years, with some including options to extend up to 15 years. The Company recognizes a lease liability and corresponding right-of-use (ROU) asset based on the present value of lease payments. To determine the present value of lease payments, as most of its leases do not provide a readily determinable implicit rate, the Company’s incremental borrowing rate is used to discount the lease payments based on information available at lease commencement date. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when estimating its incremental borrowing rate.

The components of operating lease costs were as follows:

(in thousands)	Three months ended February 29, 2020		Six months ended February 29, 2020
Operating lease expense	$	3,424	$	6,850
Short-term lease expense		3,217		4,730
Total	$	6,641	$	11,580

Aggregate minimum future amounts payable under operating leases having initial or remaining non-cancelable terms at February 29, 2020 will mature as follows:

(in thousands)
Remaining six months of 2020	$	6,153
2021		8,988
2022		5,935
2023		5,433
2024		3,948
Thereafter		10,436
Total lease payments	$	40,893
Less: Imputed interest		(4,897	)
Total lease obligations	$	35,996

The table below presents additional information related to the Company’s leases:

Weighted average remaining lease term
Operating leases	14.4 years
Weighted average discount rate
Operating leases		3.2	%

Supplemental cash flow information related to leases were as follows:

(in thousands)	Six months ended February 29, 2020
Cash paid for amounts included in the measurement    of lease liabilities
Operating cash flows from operating leases	$	7,432

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Revenue Recognition (Tables)

6 Months Ended

Feb. 29, 2020

Revenue From Contract With Customer [Abstract]

Summary of Contract Balances

The opening and closing balances of the Company’s contract balances are as follows:

(in thousands)	Balance sheet classification	February 29, 2020		August 31, 2019		$ change
Contract assets	Inventories	$	7,472	$	10,196	$	(2,724	)
Contract liabilities 1	Deferred revenue	$	55,844	$	52,118	$	3,726

^{1 Contract liabilities balance includes deferred revenue within the scope of Topic 606.}

Summary of Estimated Revenue Related to Performance Obligations Wholly or Partially Unsatisfied

The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods.

(in millions)	February 29, 2020
Revenue type:
Manufacturing – Railcar sales	$	2,698.1
Manufacturing – Marine	$	58.8
Services	$	140.1
Other	$	43.6
Manufacturing – Railcars intended for syndication 1	$	261.5

^{1 Not a performance obligation as defined in Topic 606: Contracts with Customers}

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Earnings Per Share

6 Months Ended

Feb. 29, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Note 10 – Earnings Per Share

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

	Three Months Ended				Six Months Ended
(In thousands)	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Weighted average basic common shares    outstanding (1)		32,661		32,628		32,645		32,634
Dilutive effect of 2.875% Convertible notes (2)		—		—		—		—
Dilutive effect of 2.25% Convertible notes (3)		—	n/a			—	n/a
Dilutive effect of restricted stock units (4)		821		578		737		515
Weighted average diluted common shares    outstanding		33,482		33,206		33,382		33,149

(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 and six months ended February 29, 2020 and the three and six months ended February 28, 2019 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 and six months ended February 29, 2020 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.

Diluted EPS is calculated using the treasury stock method associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved.

	Three Months Ended				Six Months Ended
	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Net earnings attributable to Greenbrier	$	13,629	$	2,765	$	21,298	$	20,721
Weighted average diluted common shares    outstanding		33,482		33,206		33,382		33,149
Diluted earnings per share	$	0.41	$	0.08	$	0.64	$	0.63

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Revenue Recognition

6 Months Ended

Feb. 29, 2020

Revenue From Contract With Customer [Abstract]

Revenue Recognition

Note 2 – Revenue Recognition  

Contract balances

Contract assets primarily consist of unbilled receivables related to marine vessel construction and repair services, for which the respective contracts do not yet permit billing at the reporting date. Contract liabilities primarily consist of customer prepayments for manufacturing, maintenance, and other management-type services, for which the Company has not yet satisfied the related performance obligations.

The opening and closing balances of the Company’s contract balances are as follows:

(in thousands)	Balance sheet classification	February 29, 2020		August 31, 2019		$ change
Contract assets	Inventories	$	7,472	$	10,196	$	(2,724	)
Contract liabilities 1	Deferred revenue	$	55,844	$	52,118	$	3,726

^{1 Contract liabilities balance includes deferred revenue within the scope of Topic 606.}

For the three and six months ended February 29, 2020, the Company recognized $3.8 million and $24.5 million of revenue that was included in Contract liabilities as of August 31, 2019.

Performance obligations

As of February 29, 2020, the Company has entered into contracts with customers for which revenue has not yet been recognized. The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods.

(in millions)	February 29, 2020
Revenue type:
Manufacturing – Railcar sales	$	2,698.1
Manufacturing – Marine	$	58.8
Services	$	140.1
Other	$	43.6
Manufacturing – Railcars intended for syndication 1	$	261.5

^{1 Not a performance obligation as defined in Topic 606: Contracts with Customers}

Based on current production and delivery schedules and existing contracts, approximately $0.9 billion of the Railcar sales amount is expected to be recognized in the remaining six months of 2020 while the remaining amount is expected to be recognized through 2024. The table above excludes estimated revenue to be recognized at the Company’s Brazilian manufacturing operation, as they are accounted for under the equity method.

Revenue amounts reflected in Railcars intended for syndication may be syndicated to third parties or held in the Company’s fleet depending on a variety of factors.

Marine revenue is expected to be recognized through 2021 as vessel construction is completed.

Services includes management and maintenance services of which approximately 51% are expected to be performed through 2024 and the remaining amount through 2037.

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Revolving Notes

6 Months Ended

Feb. 29, 2020

Debt Disclosure [Abstract]

Revolving Notes

Note 6 – Revolving Notes

Senior secured credit facilities, consisting of three components, aggregated to $706.0 million as of February 29, 2020.

As of February 29, 2020, a $600.0 million revolving line of credit, maturing June 2024, secured by substantially all the Company’s assets in the U.S. not otherwise pledged as security for term loans, was available to provide working capital and interim financing of equipment, principally for the U.S. and Mexican operations. Advances under this facility bear interest at LIBOR plus 1.50% or Prime plus 0.50% depending on the type of borrowing. Available borrowings under the credit facility are generally based on defined levels of inventory, receivables, property, plant and equipment and leased equipment, as well as total debt to consolidated capitalization and fixed charges coverage ratios.

As of February 29, 2020, lines of credit totaling $56.0 million secured by certain of the Company’s European assets, with variable rates that range from Warsaw Interbank Offered Rate (WIBOR) plus 1.1% to WIBOR plus 1.5% and Euro Interbank Offered Rate (EURIBOR) plus 1.1%, were available for working capital needs of the European manufacturing operations. The European lines of credit include $14.0 million of facilities which are guaranteed by the Company. European credit facilities are regularly renewed. Currently, these European credit facilities have maturities that range from June 2020 through July 2021.

As of February 29, 2020, the Company’s Mexican railcar manufacturing joint venture had two lines of credit totaling $50.0 million. The first line of credit provides up to $30.0 million. Advances under this facility bear interest at LIBOR plus 2.0%. The Mexican railcar manufacturing joint venture will be able to draw against this facility through March 2024. The second line of credit provides up to $20.0 million, of which the Company and its joint venture partner have each guaranteed 50%. Advances under this facility bear interest at LIBOR plus 2.0%. The Mexican railcar manufacturing joint venture will be able to draw amounts available under this facility through June 2021.

As of February 29, 2020, outstanding commitments under the senior secured credit facilities consisted of $27.5 million in letters of credit under the North American credit facility and $37.2 million outstanding under the European credit facilities. As of February 29, 2020, the Company had an aggregate of $451.1 million available to draw down under committed credit facilities.

As of August 31, 2019, outstanding commitments under the senior secured credit facilities consisted of $24.4 million in letters of credit under the North American credit facility and $27.1 million outstanding under the European credit facilities.

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Segment Information (Tables)

6 Months Ended

Feb. 29, 2020

Segment Reporting [Abstract]

Segments Internal Financial Reports

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 February 29, 2020:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	489,943	$	21		$	489,964		$	46,105		$	1		$	46,106
Wheels, Repair & Parts		91,225		5,133			96,358			3,320			(168	)		3,152
Leasing & Services		42,680		15,240			57,920			12,793			14,384			27,177
Eliminations		—		(20,394	)		(20,394	)		—			(14,217	)		(14,217	)
Corporate		—		—			—			(23,782	)		—			(23,782	)
	$	623,848	$	—		$	623,848		$	38,436		$	—		$	38,436

For the six months ended February 29, 2020:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	1,147,310	$	118		$	1,147,428		$	99,248		$	(22	)	$	99,226
Wheels, Repair & Parts		177,833		10,984			188,817			4,434			(510	)		3,924
Leasing & Services		68,064		16,989			85,053			22,570			15,673			38,243
Eliminations		—		(28,091	)		(28,091	)		—			(15,141	)		(15,141	)
Corporate		—		—			—			(46,032	)		—			(46,032	)
	$	1,393,207	$	—		$	1,393,207		$	80,220		$	—		$	80,220

For the three months ended February 28, 2019:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	476,019	$	46,855		$	522,874		$	13,990		$	2,358		$	16,348
Wheels, Repair & Parts		125,278		8,858			134,136			2,823			(858	)		1,965
Leasing & Services		57,374		2,911			60,285			21,030			2,101			23,131
Eliminations		—		(58,624	)		(58,624	)		—			(3,601	)		(3,601	)
Corporate		—		—			—			(19,789	)		—			(19,789	)
	$	658,671	$	—		$	658,671		$	18,054		$	—		$	18,054

For the six months ended February 28, 2019:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	947,808	$	53,056		$	1,000,864		$	50,845		$	2,791		$	53,636
Wheels, Repair & Parts		233,821		24,839			258,660			6,070			(546	)		5,524
Leasing & Services		81,565		8,910			90,475			38,543			7,553			46,096
Eliminations		—		(86,805	)		(86,805	)		—			(9,798	)		(9,798	)
Corporate		—		—			—			(40,950	)		—			(40,950	)
	$	1,263,194	$	—		$	1,263,194		$	54,508		$	—		$	54,508

	Total assets
(In thousands)	February 29, 2020		August 31, 2019
Manufacturing	$	1,535,118	$	1,606,571
Wheels, Repair & Parts		314,069		306,725
Leasing & Services		897,745		708,799
Unallocated		200,728		368,542
	$	2,947,660	$	2,990,637

Reconciliation of Earnings from Operations to Earnings Before Income Tax and Earnings (Loss) from Unconsolidated Affiliates

Reconciliation of Earnings from operations to Earnings before income tax and earnings (loss) from unconsolidated affiliates:

	Three Months Ended				Six Months Ended
(In thousands)	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Earnings from operations	$	38,436	$	18,054	$	80,220	$	54,508
Interest and foreign exchange		12,609		9,237		25,461		13,641
Earnings before income tax and earnings (loss)    from unconsolidated affiliates	$	25,827	$	8,817	$	54,759	$	40,867

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Warranty Accruals (Tables)

6 Months Ended

Feb. 29, 2020

Guarantees And Product Warranties [Abstract]

Warranty Accrual Activity

Warranty accrual activity:

	Three Months						Six Months
(In thousands)	February 29, 2020			February 28, 2019			February 29, 2020			February 28, 2019
Balance at beginning of period	$	47,110		$	26,264		$	46,678		$	27,395
Charged to cost of revenue, net		884			1,412			3,262			2,853
Payments		(1,136	)		(2,612	)		(3,135	)		(4,796	)
Currency translation effect		(8	)		(70	)		45			(458	)
Balance at end of period	$	46,850		$	24,994		$	46,850		$	24,994

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Accumulated Other Comprehensive Loss - Amounts Reclassified out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Interest and foreign exchange	$ 12,609	$ 9,237	$ 25,461	$ 13,641
Total before tax	(25,827)	(8,817)	(54,759)	(40,867)
Income tax expense	7,463	2,248	13,457	11,383
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Total before tax	229	920	637	1,552
Income tax expense	(61)	(219)	(160)	(382)
Net of tax	168	701	477	1,170
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss | Foreign Exchange Contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Revenue and Cost of revenue	(140)	769	101	1,257
Unrealized (Gain) Loss on Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive loss | Interest rate swap contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Interest and foreign exchange	$ 369	$ 151	$ 536	$ 295

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Earnings Per Share - Approach to Calculate Diluted Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Earnings Per Share [Abstract]
Net earnings attributable to Greenbrier	$ 13,629	$ 2,765	$ 21,298	$ 20,721
Weighted average diluted common shares outstanding	33,482	33,206	33,382	33,149
Diluted earnings per share	$ 0.41	$ 0.08	$ 0.64	$ 0.63

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Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Nov. 01, 2019	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019	Aug. 31, 2019	Jun. 30, 2017
Related Party Transaction [Line Items]
Carrying amount of investment in unconsolidated affiliates		$ 5.4		$ 5.4
Percentage of recognized revenue and margin from sale				60.00%
Percentage of deferred revenue and margin from sale				40.00%
Revenue recognize from railcars sold			$ 18.2		$ 18.2
Amsted-Maxion Cruzeiro
Related Party Transaction [Line Items]
Percentage of ownership in entity	29.50%					24.50%
Notes receivable conversion to equity	$ 4.8
Proceeds from notes receivable	$ 1.5
Additional equity method investment ownership percentage	5.00%
Note receivable		4.5		$ 4.5
Leasing Warehouse
Related Party Transaction [Line Items]
Revenue recognize from railcars sold			$ 1.6		$ 5.6
Greenbrier
Related Party Transaction [Line Items]
Percentage of ownership in entity							40.00%
Greenbrier | Leasing Warehouse
Related Party Transaction [Line Items]
Revenue recognize from railcars sold		$ 0.0		$ 0.0
Axis LLC
Related Party Transaction [Line Items]
Percentage of ownership in entity		41.90%		41.90%
Axis LLC | Railcar Components
Related Party Transaction [Line Items]
Purchases of goods from related party		$ 3.2		$ 7.2

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Leases - Additional Information Related to Company's Leases (Detail)	Feb. 29, 2020
Leases [Abstract]
Weighted average remaining lease term	14 years 4 months 24 days
Weighted average discount rate	3.20%

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Interim Financial Statements

6 Months Ended

Feb. 29, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Interim Financial Statements

Note 1 – Interim Financial Statements

The Condensed Consolidated Financial Statements of The Greenbrier Companies, Inc. and its subsidiaries (Greenbrier or the Company) as of February 29, 2020, for the three and six months ended February 29, 2020 and for the three and six months ended February 28, 2019 have been prepared to reflect all adjustments (consisting of normal recurring accruals) that, in the opinion of management, are necessary for a fair presentation of the financial position, operating results and cash flows for the periods indicated. The results of operations for the three and six months ended February 29, 2020 are not necessarily indicative of the results to be expected for the entire year ending August 31, 2020.  

Certain notes and other information have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these unaudited financial statements should be read in conjunction with the Consolidated Financial Statements contained in the Company’s 2019 Annual Report on Form 10-K.

Management Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires judgment on the part of management to arrive at estimates and assumptions on matters that are inherently uncertain. These estimates may affect the amount of assets, liabilities, revenue and expenses reported in the financial statements and accompanying notes and disclosure of contingent assets and liabilities within the financial statements. Estimates and assumptions are periodically evaluated and may be adjusted in future periods. Actual results could differ from those estimates.

Initial Adoption of Accounting Standards

Lease accounting

On September 1, 2019, the Company adopted Accounting Standards Update 2016-02, Leases (Topic 842). The new guidance supersedes existing guidance on accounting for leases in Topic 840 and is intended to increase the transparency and comparability of accounting for lease transactions. Topic 842 requires most leases to be recognized on the balance sheet by recording a right-of-use (ROU) asset and a lease liability. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Lessor accounting remains similar to the prior model, but updated to align with certain changes to the lessee model and Topic 606: Contracts with Customers.

The Company adopted the provisions of the new standard using the modified retrospective adoption method, utilizing the simplified transition option which allows entities to continue to apply the legacy guidance in Topic 840 in the comparative periods presented in the year of adoption. The Company elected the “package of practical expedients,” which allows it to not reassess under the new guidance prior conclusions about lease identification, lease classification, and initial direct costs. The Company did not elect the use-of-hindsight practical expedient. The Company elected to not separate lease and non-lease components. The Company elected the short-term lease recognition exemption for all leases that qualify, which means it will not recognize ROU assets or lease liabilities for leases with lease terms of less than twelve months. Following the adoption of Topic 842, the Company will utilize both Topic 842 and Topic 606: Contracts with Customers when evaluating retained risk of services and other performance obligations in conjunction with selling railcars with a lease attached as part of the syndication model.

As a result of adoption, the Company recognized operating lease ROU assets and lease liabilities of $40.4 and $41.6 million, respectively, as of September 1, 2019. The Company also recognized an immaterial finance lease asset and corresponding lease liability. Additionally, the Company derecognized certain existing property, plant and equipment and deferred revenue for railcar transactions previously not qualifying as sales due to continuing involvement, that now qualify as sales under the new guidance. The gain associated with this change in accounting, was mostly offset by the recognition of a new guarantee liability. The adoption of this new standard also required the Company to eliminate deferred gains associated with certain sale-leaseback transactions. A cumulative-effect adjustment of $4.4 million was recorded as an increase to retained earnings as of September 1, 2019.

Derivatives and Hedging

In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). This update improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance. The guidance expands the ability to qualify for hedge accounting for non-financial and financial risk components, reduces complexity in fair value hedges of interest rate risk and eliminates the requirement to separately measure and report hedge ineffectiveness, as well as eases certain hedge effectiveness assessment requirements. The Company adopted this guidance effective September 1, 2019 and it did not have a material impact on our consolidated financial statements.

Prospective Accounting Changes

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued Accounting Standard Update 2016-13, Financial Instruments – Credit Losses (ASU 2016-13). This update introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The new guidance will apply to loans, accounts receivable, trade receivables, other financial assets measured at amortized cost, loan commitments and other off-balance sheet credit exposures. The new guidance will also apply to debt securities and other financial assets measured at fair value through other comprehensive income. The new guidance is effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company plans to adopt this guidance beginning September 1, 2020. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.

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Intangibles and Other Assets, net

6 Months Ended

Feb. 29, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Intangibles and Other Assets, net

Note 5 – Intangibles and Other Assets, net

Intangible assets that are determined to have finite lives are amortized over their useful lives. Intangible assets with indefinite useful lives are not amortized and are periodically evaluated for impairment.  

The following table summarizes the Company’s identifiable intangible and other assets balance:

(In thousands)	February 29, 2020			August 31, 2019
Intangible assets subject to amortization:
Customer relationships	$	89,722		$	89,722
Accumulated amortization		(52,691	)		(48,850	)
Other intangibles		33,845			34,031
Accumulated amortization		(8,188	)		(6,908	)
		62,688			67,995
Intangible assets not subject to amortization		5,107			5,450
Prepaid and other assets		18,779			15,749
Operating lease ROU assets		34,624			—
Nonqualified savings plan investments		31,766			27,967
Revolving notes issuance costs, net		4,095			4,568
Assets held for sale		3,650			3,650
Total Intangible and other assets, net	$	160,709		$	125,379

Amortization expense was $2.7 million and $5.5 million for the three and six months ended February 29, 2020 and $1.4 million and $3.4 million for the three and six months ended February 28, 2019. Amortization expense for the years ending August 31, 2020, 2021, 2022, 2023 and 2024 is expected to be $10.9 million, $10.9 million, $7.6 million, $6.3 million and $6.3 million, respectively.

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Accumulated Other Comprehensive Loss

6 Months Ended

Feb. 29, 2020

Equity [Abstract]

Accumulated Other Comprehensive Loss

Note 9 – Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss, net of tax effect as appropriate, consisted of the following:

(In thousands)	Unrealized Gain (Loss) on Derivative Financial Instruments			Foreign Currency Translation Adjustment			Other			Accumulated Other Comprehensive Loss
Balance, August 31, 2019	$	(8,841	)	$	(34,194	)	$	(1,780	)	$	(44,815	)
Other comprehensive loss before    reclassifications		(1,484	)		(2,278	)		(221	)		(3,983	)
Amounts reclassified from Accumulated other    comprehensive loss		477			—			—			477
Balance, February 29, 2020	$	(9,848	)	$	(36,472	)	$	(2,001	)	$	(48,321	)

The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with financial statement caption, were as follows:

	Three Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Financial Statement Caption
(Gain) loss on derivative financial    instruments:
Foreign exchange contracts	$	(140	)	$	769		Revenue and Cost of revenue
Interest rate swap contracts		369			151		Interest and foreign exchange
		229			920		Total before tax
		(61	)		(219	)	Income tax expense
	$	168		$	701		Net of tax

	Six Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Financial Statement Location
(Gain) loss on derivative financial    instruments:
Foreign exchange contracts	$	101		$	1,257		Revenue and cost of revenue
Interest rate swap contracts		536			295		Interest and foreign exchange
		637			1,552		Total before tax
		(160	)		(382	)	Income tax expense
	$	477		$	1,170		Net of tax

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Leases (Tables)

6 Months Ended

Feb. 29, 2020

Leases [Abstract]

Aggregate Minimum Future Amounts Receivable Under All Non-Cancelable Operating Leases and Subleases

Aggregate minimum future amounts receivable under all non-cancelable operating leases and subleases at February 29, 2020, will mature as follows:

(in thousands)
Remaining six months of 2020	$	12,272
2021		22,314
2022		20,372
2023		14,812
2024		11,135
Thereafter		22,009
	$	102,914

Components of Operating Lease Costs

The components of operating lease costs were as follows:

(in thousands)	Three months ended February 29, 2020		Six months ended February 29, 2020
Operating lease expense	$	3,424	$	6,850
Short-term lease expense		3,217		4,730
Total	$	6,641	$	11,580

Aggregate Minimum Future Amounts Payable Under Operating Leases

Aggregate minimum future amounts payable under operating leases having initial or remaining non-cancelable terms at February 29, 2020 will mature as follows:

(in thousands)
Remaining six months of 2020	$	6,153
2021		8,988
2022		5,935
2023		5,433
2024		3,948
Thereafter		10,436
Total lease payments	$	40,893
Less: Imputed interest		(4,897	)
Total lease obligations	$	35,996

Additional Information Related to Company's Leases

The table below presents additional information related to the Company’s leases:

Weighted average remaining lease term
Operating leases	14.4 years
Weighted average discount rate
Operating leases		3.2	%

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases were as follows:

(in thousands)	Six months ended February 29, 2020
Cash paid for amounts included in the measurement    of lease liabilities
Operating cash flows from operating leases	$	7,432

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Feb. 29, 2020

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss, Net of Tax

Accumulated other comprehensive loss, net of tax effect as appropriate, consisted of the following:

(In thousands)	Unrealized Gain (Loss) on Derivative Financial Instruments			Foreign Currency Translation Adjustment			Other			Accumulated Other Comprehensive Loss
Balance, August 31, 2019	$	(8,841	)	$	(34,194	)	$	(1,780	)	$	(44,815	)
Other comprehensive loss before    reclassifications		(1,484	)		(2,278	)		(221	)		(3,983	)
Amounts reclassified from Accumulated other    comprehensive loss		477			—			—			477
Balance, February 29, 2020	$	(9,848	)	$	(36,472	)	$	(2,001	)	$	(48,321	)

Amounts Reclassified out of Accumulated Other Comprehensive Loss

The amounts reclassified out of Accumulated other comprehensive loss into the Consolidated Statements of Income, with financial statement caption, were as follows:

	Three Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Financial Statement Caption
(Gain) loss on derivative financial    instruments:
Foreign exchange contracts	$	(140	)	$	769		Revenue and Cost of revenue
Interest rate swap contracts		369			151		Interest and foreign exchange
		229			920		Total before tax
		(61	)		(219	)	Income tax expense
	$	168		$	701		Net of tax

	Six Months Ended
(In thousands)	February 29, 2020			February 28, 2019			Financial Statement Location
(Gain) loss on derivative financial    instruments:
Foreign exchange contracts	$	101		$	1,257		Revenue and cost of revenue
Interest rate swap contracts		536			295		Interest and foreign exchange
		637			1,552		Total before tax
		(160	)		(382	)	Income tax expense
	$	477		$	1,170		Net of tax

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Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) $ in Thousands	6 Months Ended
	Feb. 29, 2020 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 1,276,730
Ending balance	1,286,472
Unrealized Gain (Loss) on Derivative Financial Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(8,841)
Other comprehensive loss before reclassifications	(1,484)
Amounts reclassified from Accumulated other comprehensive loss	477
Ending balance	(9,848)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(34,194)
Other comprehensive loss before reclassifications	(2,278)
Ending balance	(36,472)
Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(1,780)
Other comprehensive loss before reclassifications	(221)
Ending balance	(2,001)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(44,815)
Other comprehensive loss before reclassifications	(3,983)
Amounts reclassified from Accumulated other comprehensive loss	477
Ending balance	$ (48,321)

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Earnings Per Share - Additional Information (Detail)	Feb. 29, 2020	Feb. 28, 2019
2.875% Convertible Senior Notes
Earnings Per Share Disclosure [Line Items]
Debt instrument, interest rate	2.875%	2.875%
2.25% Convertible Senior Notes
Earnings Per Share Disclosure [Line Items]
Debt instrument, interest rate	2.25%

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Leases - Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands	6 Months Ended
	Feb. 29, 2020 USD ($)
Cash Flow Operating Activities Lessee [Abstract]
Operating cash flows from operating leases	$ 7,432

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Intangibles and Other Assets, Net - Identifiable Intangible and Other Assets (Detail) - USD ($) $ in Thousands	Feb. 29, 2020	Sep. 01, 2019	Aug. 31, 2019
Intangibles and Other Assets by Major Class [Line Items]
Finite-Lived Intangible Assets, Net, Total	$ 62,688		$ 67,995
Intangible assets not subject to amortization	5,107		5,450
Prepaid and other assets	18,779		15,749
Operating lease ROU assets	34,624	$ 40,400
Nonqualified savings plan investments	31,766		27,967
Revolving notes issuance costs, net	4,095		4,568
Assets held for sale	3,650		3,650
Total Intangible and other assets, net	160,709		125,379
Customer Relationships
Intangibles and Other Assets by Major Class [Line Items]
Finite lived intangible assets gross	89,722		89,722
Accumulated amortization	(52,691)		(48,850)
Other Intangible Assets
Intangibles and Other Assets by Major Class [Line Items]
Finite lived intangible assets gross	33,845		34,031
Accumulated amortization	$ (8,188)		$ (6,908)

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Acquisitions - Additional Information (Detail) $ in Thousands		3 Months Ended		6 Months Ended
	Jul. 26, 2019 USD ($) Railcar	Feb. 29, 2020 USD ($)	Feb. 28, 2019 USD ($)	Feb. 29, 2020 USD ($)	Feb. 28, 2019 USD ($)
Business Acquisition [Line Items]
Revenue		$ 623,848	$ 658,671	$ 1,393,207	$ 1,263,194
Earnings (loss) from operations		38,436	18,054	80,220	54,508
Manufacturing
Business Acquisition [Line Items]
Revenue		489,943	476,019	1,147,310	947,808
Earnings (loss) from operations		46,105	$ 13,990	99,248	$ 50,845
American Railcar Industries
Business Acquisition [Line Items]
Business combination estimated gross purchase price	$ 417,200
Number of railcar manufacturing facilities acquired | Railcar	2
Business combination consideration transferred for capital expenditures	$ 8,500
Senior term debt		300,000		300,000
Convertible senior notes		$ 50,000		$ 50,000
Business combination description of voting rights acquired				we did not acquire 100% of ARI
American Railcar Industries | Manufacturing
Business Acquisition [Line Items]
Revenue				$ 210,700
Earnings (loss) from operations				$ (1,500)

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Derivative Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	$ 12,698	$ 10,692
Designated as Hedging Instrument | Accounts Receivable
Derivatives, Fair Value [Line Items]
Asset Derivatives	488	64
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	194	437
Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable
Derivatives, Fair Value [Line Items]
Asset Derivatives	488	64
Designated as Hedging Instrument | Interest rate swap contracts | Accounts Payable and Accrued Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	12,504	10,255
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	281	$ 587
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accounts Receivable
Derivatives, Fair Value [Line Items]
Asset Derivatives	$ 39

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Segment Information - Segments Internal Financial Reports (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019	Aug. 31, 2019
Segment Reporting Information [Line Items]
Revenue	$ 623,848	$ 658,671	$ 1,393,207	$ 1,263,194
Earnings (loss) from operations	38,436	18,054	80,220	54,508
Assets	2,947,660		2,947,660		$ 2,990,637
Manufacturing
Segment Reporting Information [Line Items]
Revenue	489,943	476,019	1,147,310	947,808
Earnings (loss) from operations	46,105	13,990	99,248	50,845
Wheels, Repair & Parts
Segment Reporting Information [Line Items]
Revenue	91,225	125,278	177,833	233,821
Earnings (loss) from operations	3,320	2,823	4,434	6,070
Leasing & Services
Segment Reporting Information [Line Items]
Revenue	42,680	57,374	68,064	81,565
Earnings (loss) from operations	12,793	21,030	22,570	38,543
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Earnings (loss) from operations	(23,782)	(19,789)	(46,032)	(40,950)
Intersegment Eliminations
Segment Reporting Information [Line Items]
Revenue	(20,394)	(58,624)	(28,091)	(86,805)
Earnings (loss) from operations	(14,217)	(3,601)	(15,141)	(9,798)
Intersegment Eliminations | Manufacturing
Segment Reporting Information [Line Items]
Revenue	21	46,855	118	53,056
Earnings (loss) from operations	1	2,358	(22)	2,791
Intersegment Eliminations | Wheels, Repair & Parts
Segment Reporting Information [Line Items]
Revenue	5,133	8,858	10,984	24,839
Earnings (loss) from operations	(168)	(858)	(510)	(546)
Intersegment Eliminations | Leasing & Services
Segment Reporting Information [Line Items]
Revenue	15,240	2,911	16,989	8,910
Earnings (loss) from operations	14,384	2,101	15,673	7,553
Operating Segments
Segment Reporting Information [Line Items]
Earnings (loss) from operations	(23,782)	(19,789)	(46,032)	(40,950)
Operating Segments | Manufacturing
Segment Reporting Information [Line Items]
Revenue	489,964	522,874	1,147,428	1,000,864
Earnings (loss) from operations	46,106	16,348	99,226	53,636
Assets	1,535,118		1,535,118		1,606,571
Operating Segments | Wheels, Repair & Parts
Segment Reporting Information [Line Items]
Revenue	96,358	134,136	188,817	258,660
Earnings (loss) from operations	3,152	1,965	3,924	5,524
Assets	314,069		314,069		306,725
Operating Segments | Leasing & Services
Segment Reporting Information [Line Items]
Revenue	57,920	60,285	85,053	90,475
Earnings (loss) from operations	27,177	$ 23,131	38,243	$ 46,096
Assets	897,745		897,745		708,799
Operating Segments | Unallocated Amount to Segment
Segment Reporting Information [Line Items]
Assets	$ 200,728		$ 200,728		$ 368,542

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Feb. 29, 2020	Aug. 31, 2019
Statement Of Financial Position [Abstract]
Preferred stock, without par value	$ 0	$ 0
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, outstanding	0	0
Common stock, without par value	$ 0	$ 0
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares outstanding	32,642,000	32,488,000

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Leases - Components of Operating Lease Costs (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Feb. 29, 2020	Feb. 29, 2020
Leases [Abstract]
Operating lease expense	$ 3,424	$ 6,850
Short-term lease expense	3,217	4,730
Total	$ 6,641	$ 11,580

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Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock Shares	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Equity - Greenbrier	Noncontrolling Interest	Equity Excluding Contingently Redeemable Noncontrolling Interest	Contingently Redeemable Noncontrolling Interest
Beginning balance at Aug. 31, 2018									$ 29,768
Net earnings									(4,131)
Beginning balance at Aug. 31, 2018			$ 442,569	$ 830,898	$ (23,366)	$ 1,250,101	$ 134,114	$ 1,384,215
Beginning balance (in shares) at Aug. 31, 2018		32,191
Cumulative effect adjustment due to adoption of ASU at Aug. 31, 2018				5,461		5,461		5,461
Net earnings	$ 29,165			20,721		20,721	12,575	33,296
Other comprehensive loss, net	(4,277)				(4,256)	(4,256)	(21)	(4,277)
Noncontrolling interest adjustments							5,306	5,306
Joint venture partner distribution declared							(8,430)	(8,430)
Noncontrolling interest acquired							1,915	1,915
Restricted stock awards (net of cancellations) (in shares)		188
Restricted stock awards (net of cancellations)			12,683			12,683		12,683
Unamortized restricted stock			(17,445)			(17,445)		(17,445)
Restricted stock amortization			7,155			7,155		7,155
Cash dividends				(16,602)		(16,602)		(16,602)
Ending balance at Feb. 28, 2019			444,962	840,478	(27,622)	1,257,818	145,459	1,403,277
Ending Balance (in shares) at Feb. 28, 2019		32,379
Ending Balance at Feb. 28, 2019									25,637
Beginning balance at Nov. 30, 2018									28,449
Net earnings									(2,812)
Beginning balance at Nov. 30, 2018			440,958	846,018	(29,345)	1,257,631	141,590	1,399,221
Beginning balance (in shares) at Nov. 30, 2018		32,350
Net earnings	5,783			2,765		2,765	5,830	8,595
Other comprehensive loss, net	1,717				1,723	1,723	(6)	1,717
Noncontrolling interest adjustments							1,387	1,387
Joint venture partner distribution declared							(5,257)	(5,257)
Noncontrolling interest acquired							1,915	1,915
Restricted stock awards (net of cancellations) (in shares)		29
Restricted stock awards (net of cancellations)			1,267			1,267		1,267
Unamortized restricted stock			(1,282)			(1,282)		(1,282)
Restricted stock amortization			4,019			4,019		4,019
Cash dividends				(8,305)		(8,305)		(8,305)
Ending balance at Feb. 28, 2019			444,962	840,478	(27,622)	1,257,818	145,459	1,403,277
Ending Balance (in shares) at Feb. 28, 2019		32,379
Ending Balance at Feb. 28, 2019									25,637
Beginning balance at Aug. 31, 2019									31,564
Net earnings									(782)
Beginning balance at Aug. 31, 2019	$ 1,441,697		453,943	867,602	(44,815)	1,276,730	164,967	1,441,697
Beginning balance (in shares) at Aug. 31, 2019	32,488	32,488
Cumulative effect adjustment due to adoption of ASU at Aug. 31, 2019				4,393		4,393		4,393
Net earnings	$ 44,026			21,298		21,298	23,510	44,808
Other comprehensive loss, net	(3,514)				(3,506)	(3,506)	(8)	(3,514)
Noncontrolling interest adjustments							9,038	9,038
Joint venture partner distribution declared							(8,172)	(8,172)
Noncontrolling interest acquired							12,075	12,075
Restricted stock awards (net of cancellations) (in shares)		154
Restricted stock awards (net of cancellations)			11,114			11,114		11,114
Unamortized restricted stock			(13,008)			(13,008)		(13,008)
Restricted stock amortization			6,859			6,859		6,859
Cash dividends				(17,408)		(17,408)		(17,408)
Ending balance at Feb. 29, 2020	$ 1,487,882		458,908	875,885	(48,321)	1,286,472	201,410	1,487,882
Ending Balance (in shares) at Feb. 29, 2020	32,642	32,642
Ending Balance at Feb. 29, 2020									30,782
Beginning balance at Nov. 30, 2019									31,723
Net earnings									(941)
Beginning balance at Nov. 30, 2019			454,900	871,300	(44,392)	1,281,808	191,050	1,472,858
Beginning balance (in shares) at Nov. 30, 2019		32,596
Net earnings	$ 20,015			13,629		13,629	7,327	20,956
Other comprehensive loss, net	(3,931)				(3,929)	(3,929)	(2)	(3,931)
Noncontrolling interest adjustments							7,302	7,302
Joint venture partner distribution declared							(4,267)	(4,267)
Restricted stock awards (net of cancellations) (in shares)		46
Restricted stock awards (net of cancellations)			1,642			1,642		1,642
Unamortized restricted stock			(1,667)			(1,667)		(1,667)
Restricted stock amortization			4,033			4,033		4,033
Cash dividends				(9,044)		(9,044)		(9,044)
Ending balance at Feb. 29, 2020	$ 1,487,882		$ 458,908	$ 875,885	$ (48,321)	$ 1,286,472	$ 201,410	$ 1,487,882
Ending Balance (in shares) at Feb. 29, 2020	32,642	32,642
Ending Balance at Feb. 29, 2020									$ 30,782

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Segment Information

6 Months Ended

Feb. 29, 2020

Segment Reporting [Abstract]

Segment Information

Note 13 – Segment Information

The Company operates in three reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services.

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 2019 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 model. 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 February 29, 2020:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	489,943	$	21		$	489,964		$	46,105		$	1		$	46,106
Wheels, Repair & Parts		91,225		5,133			96,358			3,320			(168	)		3,152
Leasing & Services		42,680		15,240			57,920			12,793			14,384			27,177
Eliminations		—		(20,394	)		(20,394	)		—			(14,217	)		(14,217	)
Corporate		—		—			—			(23,782	)		—			(23,782	)
	$	623,848	$	—		$	623,848		$	38,436		$	—		$	38,436

For the six months ended February 29, 2020:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	1,147,310	$	118		$	1,147,428		$	99,248		$	(22	)	$	99,226
Wheels, Repair & Parts		177,833		10,984			188,817			4,434			(510	)		3,924
Leasing & Services		68,064		16,989			85,053			22,570			15,673			38,243
Eliminations		—		(28,091	)		(28,091	)		—			(15,141	)		(15,141	)
Corporate		—		—			—			(46,032	)		—			(46,032	)
	$	1,393,207	$	—		$	1,393,207		$	80,220		$	—		$	80,220

For the three months ended February 28, 2019:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	476,019	$	46,855		$	522,874		$	13,990		$	2,358		$	16,348
Wheels, Repair & Parts		125,278		8,858			134,136			2,823			(858	)		1,965
Leasing & Services		57,374		2,911			60,285			21,030			2,101			23,131
Eliminations		—		(58,624	)		(58,624	)		—			(3,601	)		(3,601	)
Corporate		—		—			—			(19,789	)		—			(19,789	)
	$	658,671	$	—		$	658,671		$	18,054		$	—		$	18,054

For the six months ended February 28, 2019:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	947,808	$	53,056		$	1,000,864		$	50,845		$	2,791		$	53,636
Wheels, Repair & Parts		233,821		24,839			258,660			6,070			(546	)		5,524
Leasing & Services		81,565		8,910			90,475			38,543			7,553			46,096
Eliminations		—		(86,805	)		(86,805	)		—			(9,798	)		(9,798	)
Corporate		—		—			—			(40,950	)		—			(40,950	)
	$	1,263,194	$	—		$	1,263,194		$	54,508		$	—		$	54,508

	Total assets
(In thousands)	February 29, 2020		August 31, 2019
Manufacturing	$	1,535,118	$	1,606,571
Wheels, Repair & Parts		314,069		306,725
Leasing & Services		897,745		708,799
Unallocated		200,728		368,542
	$	2,947,660	$	2,990,637

Reconciliation of Earnings from operations to Earnings before income tax and earnings (loss) from unconsolidated affiliates:

	Three Months Ended				Six Months Ended
(In thousands)	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Earnings from operations	$	38,436	$	18,054	$	80,220	$	54,508
Interest and foreign exchange		12,609		9,237		25,461		13,641
Earnings before income tax and earnings (loss)    from unconsolidated affiliates	$	25,827	$	8,817	$	54,759	$	40,867

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Related Party Transactions

6 Months Ended

Feb. 29, 2020

Related Party Transactions [Abstract]

Related Party Transactions

Note 17 – Related Party Transactions

In June 2017, the Company purchased a 40% interest in the common equity of an entity that buys and sells railcar assets that are leased to third parties. The railcars sold to this leasing warehouse are principally built by Greenbrier. The Company accounts for this leasing warehouse investment under the equity method of accounting. As of February 29, 2020, the carrying amount of the investment was $5.4 million which is classified in Investment in unconsolidated affiliates in the Consolidated Balance Sheet. Upon sale of railcars to this entity from Greenbrier, 60% of the related revenue and margin is recognized and 40% is deferred until the railcars are ultimately sold by the entity. There were no sales to or from this entity during the three and six months ended February 29, 2020. The Company recognized $18.2 million in revenue associated with railcars sold into the leasing warehouse during the three and six months ended February 28, 2019. The Company also recognized $1.6 million and $5.6 million in revenue associated with railcars sold out of the leasing warehouse during the three and six months ended February 28, 2019. The Company also provides administrative and remarketing services to this entity and earns management fees for these services which were immaterial for the six months ended February 29, 2020 and February 28, 2019.

On November 1, 2019, the Company increased its ownership interest in Amsted-Maxion Cruzeiro from 24.5% to 29.5%. This transaction included a conversion to equity of $4.8 million from a note receivable, including accrued interest, and a re-payment to the Company of $1.5 million which was used to acquire the additional 5% ownership interest. As of February 29, 2020, the Company had a remaining $4.5 million note receivable due from Amsted-Maxion Cruzeiro, its unconsolidated Brazilian castings and components manufacturer. This note receivable is included on the Consolidated Balance Sheet in Accounts receivable, net.

The Company has a 41.9% interest in Axis, LLC (Axis), a joint venture. The Company obtained its ownership interest in Axis as part of the acquisition of the manufacturing business of ARI on July 26, 2019. For the three and six months ended February 29, 2020, the Company purchased $3.2 million and $7.2 million of railcar components from Axis.