Earnings Per Share

6 Months Ended

Feb. 29, 2020

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