Earnings Per Share

12 Months Ended

Aug. 31, 2024

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:


	Year Ended August 31,
(In thousands)	2024		2023		2022
Weighted average basic common shares outstanding		31,102		31,983		32,569
Dilutive effect of 2.875% Convertible notes, due 2024 1		345		824		—
Dilutive effect of 2.875% Convertible notes, due 2028 2		—		—		—
Dilutive effect of restricted stock units 3		916		992		1,062
Weighted average diluted common shares outstanding		32,363		33,799		33,631

1 The dilutive effect of the 2.875% Convertible notes due 2024 was excluded for the year ended August 31, 2022 as they were considered anti-dilutive under the “if converted” method as further discussed below. These notes were retired on February 1, 2024.

2 The dilutive effect of the 2.875% Convertible notes, due 2028 was excluded for the years ended August 31, 2024, 2023 and 2022 as the average stock price was less than the applicable conversion price and therefore was considered anti-dilutive. As these notes require cash settlement for the principal, only a premium is potentially dilutive.

3 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.

Basic EPS is computed by dividing Net earnings attributable to Greenbrier by weighted average basic common shares outstanding.

For the years ended August 31, 2024, 2023, and 2022, diluted EPS was calculated using the more dilutive of two methods. The first method includes the dilutive effect, using the treasury stock method, associated with restricted stock units and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second method supplements the first by also including the “if converted” effect of the 2.875% Convertible notes due 2024 and shares underlying the 2.875% Convertible notes due 2028, when there is a conversion premium. Under the “if converted” method, debt issuance and interest costs, both net of tax, associated with the convertible notes due 2024 are added back to net earnings and the share count is increased by the shares underlying the convertible notes.


(In millions, except number of shares which are reflected in	Year Ended August 31,
thousands and per share amounts)	2024			2023			2022
Net earnings attributable to Greenbrier	$	160.1		$	62.5		$	46.9
Weighted average basic common shares outstanding		31,102			31,983			32,569
Basic earnings per share	$	5.15		$	1.95		$	1.44

Net earnings attributable to Greenbrier	$	160.1		$	62.5		$	46.9
Add back:
Interest and debt issuance costs on the 2.875% convertible notes due 2024, net of tax		0.5			1.2		n/a
Earnings before interest and debt issuance costs on the 2.875% convertible notes due 2024	$	160.6		$	63.7		n/a
Weighted average diluted common shares outstanding		32,363			33,799			33,631
Diluted earnings per share	$	4.96	1	$	1.89	1	$	1.40

1 Diluted earnings per share was calculated as follows:

Earnings before interest and debt issuance costs on the 2.875% convertible notes due 2024

Weighted average diluted common shares outstanding