Earnings Per Share

12 Months Ended

Aug. 31, 2021

Note 15 — Earnings Per Share

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

	Years ended August 31,
(In thousands)	2021		2020		2019
Weighted average basic common shares outstanding ⁽¹⁾		32,648		32,670		32,615
Dilutive effect of 2.875% Convertible notes, due 2024 ⁽²⁾		—		—		—
Dilutive effect of 2.875% Convertible notes, due 2028 ⁽³⁾		—	n/a		n/a
Dilutive effect of 2.25% Convertible notes, due 2024 ⁽⁴⁾		—		—		—
Dilutive effect of restricted stock units ⁽⁵⁾		1,017		771		550
Weighted average diluted common shares outstanding		33,665		33,441		33,165

(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. No restricted stock or restricted stock units were anti-dilutive for the years ended August 31, 2021, 2020 and 2019.

(2)

The dilutive effect of the 2.875% Convertible notes, due 2024 was excluded for the years ended August 31, 2021, 2020 and 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive.

(3)

The dilutive effect of the 2.875% Convertible notes, due 2028 was excluded for the year ended August 31, 2021 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. These convertible notes were issued in April 2021.

(4)

The dilutive effect of the 2.25% Convertible notes, due 2024 was excluded for the years ended August 31, 2021, 2020 and 2019 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. These convertible notes were retired in April 2021.

(5)

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 due 2024, 2.875% Convertible notes due 2028, 2.25% Convertible notes due 2024, 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.

	Years ended August 31,
(In thousands, except per share data)	2021		2020		2019
Net earnings attributable to Greenbrier	$	32,477	$	48,967	$	71,076
Weighted average diluted common shares outstanding		33,665		33,441		33,165
Diluted earnings per share	$	0.96	$	1.46	$	2.14