Earnings Per Share

9 Months Ended

May 31, 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 May 31,				Nine Months Ended May 31,
(In thousands)	2020		2019		2020		2019
Weighted average basic common shares outstanding ⁽¹⁾		32,690		32,603		32,660		32,623
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⁾		788		580		754		538
Weighted average diluted common shares outstanding		33,478		33,183		33,414		33,161

(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 nine months ended May 31, 2020 and 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 nine months ended May 31, 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 May 31,				Nine Months Ended May 31,
	2020		2019		2020		2019
Net earnings attributable to Greenbrier	$	27,772	$	15,248	$	49,070	$	35,969
Weighted average diluted common shares outstanding		33,478		33,183		33,414		33,161
Diluted earnings per share	$	0.83	$	0.46	$	1.47	$	1.08