##### Table of Contents



UNITED STATES SECURITIES AND
EXCHANGE COMMISSION


Washington, D.C.
20549-1004


Form 10-K


|                                                                                                  
|--------------------------------------------------------------------------------------------------
|þ Annual
    Report Pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934    
|                                                                                                  
|For the fiscal year ended August 31, 2006                                                         
|or                                                                                                
|                                                                                                  
|                                                                                                  
|o Transition Report
    Pursuant to Section 13 or 15(d) of the Securities Exchange
    Act of 1934
|                                                                                                  
|for the transition period
    from            to                                                  



THE GREENBRIER COMPANIES,
INC.




|                                                                    |  |                                                              |  |                                     
|------------------------------------------------------------------- |  | ------------------------------------------------------------ |  | ------------------------------------
|Oregon                                                              |  | 3743                                                         |  | 93-0816972                          
|(State or other jurisdiction)
    of incorporation or organization) |  | (Primary Standard Industrial
    Classification Code Number) |  | (I.R.S. Employer Identification No.)

CO-REGISTRANTS AND SUBSIDIARY GUARANTORS


|                                        |  |          |  |      |  |           
|--------------------------------------- |  | -------- |  | ---- |  | ----------
|Autostack Company LLC                   |  | Oregon   |  | 4741 |  | 93-0981840
|Greenbrier-Concarril, LLC               |  | Delaware |  | 3743 |  | 93-1262344
|Greenbrier Leasing Company LLC          |  | Oregon   |  | 4741 |  | 31-0789836
|Greenbrier Leasing L.P.                 |  | Oregon   |  | 4741 |  | 91-1960693
|Greenbrier Leasing Limited Partner, LLC |  | Delaware |  | 4741 |  | 93-1266038
|Greenbrier Management Services, LLC     |  | Delaware |  | 4741 |  | 93-1266040
|Greenbrier Railcar, LLC                 |  | Delaware |  | 4741 |  | 93-0971066
|Gunderson LLC                           |  | Oregon   |  | 3743 |  | 93-0180205
|Gunderson Marine LLC                    |  | Oregon   |  | 3743 |  | 93-1127982
|Gunderson Rail Services LLC             |  | Oregon   |  | 4789 |  | 93-1123815
|Gunderson Specialty Products, LLC       |  | Delaware |  | 3743 |  | 93-0180205

|                                                                                                                              |  |                                                                                                                                             |  |                                                                                                                                         |  |                                                                                                                              
|----------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------
|The Greenbrier Companies, Inc.
    One Centerpointe Drive, Suite 200
    Lake Oswego Oregon
    97035-8612
    (503) 684-7000 |  | Autostack Company LLC
    One Centerpointe Drive, Suite 200
    Lake Oswego Oregon
    97035-8612
    (503) 684-7000                        |  | Greenbrier-Concarril, LLC
    One Centerpointe Drive, Suite 200
    Lake Oswego Oregon
    97035-8612
    (503) 684-7000                |  | Greenbrier Leasing Company LLC
    One Centerpointe Drive, Suite 200
    Lake Oswego Oregon
    97035-8612
    (503) 684-7000
|                                                                                                                             
|Greenbrier Leasing, L.P.
    One Centerpointe Drive, Suite 200
    Lake Oswego, Oregon
    97035-8612
    (503) 684-7000      |  | Greenbrier Leasing
    Limited Partner, LLC
    One Centerpointe Drive, Suite 200
    Lake Oswego, Oregon
    97035-8612
    (503) 684-7000 |  | Greenbrier Management
    Services, LLC
    One Centerpointe Drive, Suite 200
    Lake Oswego, Oregon
    97035-8612
    (503) 684-7000 |  | Greenbrier Railcar LLC
    One Centerpointe Drive, Suite 200
    Lake Oswego, Oregon
    97035-8612
    (503) 684-7000       
|                                                                                                                             
|Gunderson LLC
    4350 NW Front Avenue
    Portland, Oregon 97210
    (503) 972-5700                                          |  | Gunderson Marine LLC
    4350 NW Front Avenue
    Portland, Oregon 97210
    (503) 972-5700                                                 |  | Gunderson Rail Services LLC
    One Centerpointe Drive, Suite 200
    Lake Oswego, Oregon
    97035-8612
    (503) 684-7000             |  | Gunderson Specialty
    Products, LLC
    4350 NW Front Avenue
    Portland, Oregon
    (503) 972-5700                       

(Address, including zip code and telephone number


including area code of registrants principal executive
offices)




|                               |  |                                            
|------------------------------ |  | -------------------------------------------
|(Title of Each Class)          |  | (Name of Each Exchange on Which Registered)
|Common Stock without par value |  | New York Stock Exchange                    



None


X


X


X


S-K 10-K 10-K. o


12b-2


X


12b-2  X






DOCUMENTS INCORPORATED BY
REFERENCE






---



##### 










The Greenbrier Companies,
Inc.


Form 10-K


TABLE OF CONTENTS





|                |  |                                                                                                        |  |      |    | 
|--------------- |  | ------------------------------------------------------------------------------------------------------ |  | ---- | -- | 
|                |  |                                                                                                        |  | PAGE |   
|PART I          |  |                                                                                                        |  |      |    | 
|Item 1.         |  | BUSINESS                                                                                               |  |      | 3  | 
|Item 1a.        |  | RISK FACTORS                                                                                           |  |      | 8  | 
|Item 1b.        |  | UNRESOLVED STAFF COMMENTS                                                                              |  |      | 14 | 
|Item 2.         |  | PROPERTIES                                                                                             |  |      | 15 | 
|Item 3.         |  | LEGAL PROCEEDINGS                                                                                      |  |      | 16 | 
|Item 4.         |  | SUBMISSION OF MATTERS TO A VOTE OF
    SECURITY HOLDERS                                                |  |      | 16 | 
|PART II         |  |                                                                                                        |  |      |    | 
|Item 5.         |  | MARKET
    PRICE OF AND DIVIDENDS ON THE REGISTRANTS COMMON EQUITY AND
    RELATED STOCKHOLDER MATTERS |  |      | 16 | 
|Item 6.         |  | SELECTED
    FINANCIAL DATA                                                                            |  |      | 18 | 
|Item 7.         |  | MANAGEMENTS
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATIONS          |  |      | 19 | 
|Item 7a.        |  | QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                         |  |      | 26 | 
|Item 8.         |  | FINANCIAL
    STATEMENTS AND SUPPLEMENTARY DATA                                                        |  |      | 27 | 
|Item 9.         |  | CHANGES IN
    AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
    DISCLOSURE           |  |      | 59 | 
|Item 9a.        |  | CONTROLS
    AND PROCEDURES                                                                            |  |      | 60 | 
|PART III        |  |                                                                                                        |  |      |    | 
|Item 10.        |  | DIRECTORS
    AND EXECUTIVE OFFICERS OF REGISTRANT                                                     |  |      | 62 | 
|Item 11.        |  | EXECUTIVE
    COMPENSATION                                                                             |  |      | 62 | 
|Item 12.        |  | SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
    RELATED STOCKHOLDER MATTERS |  |      | 62 | 
|Item 13.        |  | CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS                                                     |  |      | 62 | 
|Item 14.        |  | PRINCIPAL
    ACCOUNTANTS FEES AND SERVICES                                                            |  |      | 62 | 
|PART IV         |  |                                                                                                        |  |      |    | 
|Item 15.        |  | EXHIBITS,
    FINANCIAL STATEMENT SCHEDULES                                                            |  |      | 63 | 
|                |  | SIGNATURES                                                                                             |  |      | 67 | 
|                |  | CERTIFICATIONS                                                                                         |  |      | 68 | 
|EXHIBIT 10.12  
|EXHIBIT 10.34  
|EXHIBIT 12     
|EXHIBIT 21.1   
|EXHIBIT 23     
|EXHIBIT 31.1(A)
|EXHIBIT 31.2(B)
|EXHIBIT 32.1(C)
|EXHIBIT 32.2(D)







2                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents






PART I







|        |         
|------- | --------
|Item 1. | BUSINESS

Introduction










Products and Services
Manufacturing


North American Railcar Manufacturing


Intermodal Railcars








|  |                                                                                                                                                       
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------
| | increased train density (two containers are carried within the
    same longitudinal space conventionally used to carry one trailer
    or container);
| 
| | reduced railcar weight of up to 50% per container;                                                                                                    
| 
| | easier terminal handling characteristics;                                                                                                             
| 
| | reduced equipment costs of up to 40% less than the cost of
    providing the same carrying capacity with conventional equipment;                      
| 
| | superior ride quality compared to conventional equipment,
    leading to reduced damage claims; and                                                   
| 
| | increased fuel efficiency resulting from weight reduction and
    improved aerodynamics.                                                              





The Greenbrier Companies 2006
Annual
Report                                         3




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##### Table of Contents





|                  |           |                        |                |           |              |      |         |              |  |  |     |                       |  |     |           |           |  |     |        |     |  |         |   |  |  |  |   |   |  |  |   |   |  |  |   |   |  |  |   |   |  |  |   |  | 
|----------------- | --------- | ---------------------- | -------------- | --------- | ------------ | ---- | ------- | ------------ |  |  | --- | --------------------- |  | --- | --------- | --------- |  | --- | ------ | --- |  | ------- | - |  |  |  | - | - |  |  | - | - |  |  | - | - |  |  | - | - |  |  | - |  | 
|                  |           |                        |                |           |              |      |         |              |  |  |     | Unit sizes carried(1)
|                  |           |                        |                | Number of |              | Well |         | Cargo        |  |  |     |                      
|Product           |           | Type                   |                | wells     |              | size |         | type         |  |  |     | 20                   |  | 40 |           | 45       |  | 48 |        | 53 |  | Trailer
|                 
|Maxi-Stack I      |           |                        | Articulated    |           |              |      | 5       |              |  |  | 40 |                       |  |     | Container |           |  |     | Top    |     |  |         |   |  |  |  | x |   |  |  | x |   |  |  | x |   |  |  | x |   |  |  |   | 
|                  |           |                        |                |           |              |      |         |              |  |  |     |                       |  |     |           |           |  |     | Bottom |     |  |         | x |  |  |  | x |   |  |  |   |   |  |  |   |   |  |  |   |   |  |  |   | 
|Maxi-Stack IV     |           |                        | Articulated    |           |              |      | 3       |              |  |  | 53 |                       |  |     | Container |           |  |     | Top    |     |  |         |   |  |  |  | x |   |  |  | x |   |  |  | x |   |  |  | x |   |  |  |   | 
|                  |           |                        |                |           |              |      |         |              |  |  |     |                       |  |     |           |           |  |     | Bottom |     |  |         | x |  |  |  | x |   |  |  | x |   |  |  | x |   |  |  | x |   |  |  |   | 
|All Purpose Husky |           |                        | Stand-alone or |           |              |      |         |              |  |  |     |                       |  |     |           |           |  |     |        |     |  |         |   |  |  |  |   |   |  |  |   |   |  |  |   |   |  |  |   |   |  |  |   | 
|                  | Stack 53 |                        |                | Drawbar   |              |      |         | 1 or 3  unit |  |  |     | 53                   |  |     |           | Container |  |     |        | Top |  |         |   |  |  |  |   | x |  |  |   | x |  |  |   | x |  |  |   | x |  |  |   |  | 
|                  |           |                        | connected      |           |              |      | drawbar |              |  |  |     |                       |  |     |           |           |  |     | Bottom |     |  |         | x |  |  |  | x |   |  |  | x |   |  |  | x |   |  |  | x |   |  |  |   | 
|                  |           |                        |                |           |              |      |         |              |  |  | 53 |                       |  |     | Trailer   |           |  |     |        |     |  |         |   |  |  |  |   |   |  |  |   |   |  |  |   |   |  |  |   |   |  |  | x | 
|Husky Stack 53   |           | Stand-alone or Drawbar |                |           | 1 or 3  unit |      |         |              |  |  |     |                       |  |     |           |           |  |     |        |     |  |         |   |  |  |  |   |   |  |  |   |   |  |  |   |   |  |  |   |   |  | 
|                  |           |                        | connected      |           |              |      | drawbar |              |  |  | 53 |                       |  |     | Container |           |  |     | Top    |     |  |         |   |  |  |  | x |   |  |  | x |   |  |  | x |   |  |  | x |   |  |  |   | 
|                  |           |                        |                |           |              |      |         |              |  |  |     |                       |  |     |           |           |  |     | Bottom |     |  |         | x |  |  |  | x |   |  |  | x |   |  |  | x |   |  |  | x |   |  |  |   | 



|    |                                                                                           
|--- | ------------------------------------------------------------------------------------------
|(1) | Carrying capability may be dependent on unit size being carried
    in the adjoining well.

Conventional Railcars


European Railcar Manufacturing


Railcar Repair, Refurbishment and Component Parts
Manufacturing




Marine Vessel Fabrication






4                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents



Leasing &
Services


Leasing






|                  |                              |                       |       |         |  |       |         |         |  |  |         |         | 
|----------------- | ---------------------------- | --------------------- | ----- | ------- |  | ----- | ------- | ------- |  |  | ------- | ------- | 
|                  |                              | Fleet Profile(1)     
|                  |                              | As of August 31, 2006
|                  |                              |                      
|                  |                              | Owned                 |       | Managed |  | Total
|                  |                              | Units(2)              |       | Units   |  | Units
|                 
|Customer Profile: |                              |                       |       |         |  |       |         |         |  |  |         |        
|                 
|                  | Class I Railroads            |                       |       | 4,233   |  |       |         | 113,544 |  |  |         | 117,777 | 
|                 
|                  | Non-Class I Railroads        |                       |       | 1,635   |  |       |         | 11,682  |  |  |         | 13,317  | 
|                 
|                  | Shipping Companies           |                       |       | 2,800   |  |       |         | 3,038   |  |  |         | 5,838   | 
|                 
|                  | Leasing Companies            |                       |       | 261     |  |       |         | 7,056   |  |  |         | 7,317   | 
|                 
|                  | Enroute to Customer Location |                       |       | 122     |  |       |         |        |  |  |         | 122     | 
|                 
|                  | Off-Lease                    |                       |       | 260     |  |       |         |        |  |  |         | 260     | 
|                 
|Total Units       |                              |                       | 9,311 |         |  |       | 135,320 |         |  |  | 144,631 |        
|                 



|    |                                                          
|--- | ---------------------------------------------------------
|(1) | Each platform of a railcar is treated as a separate unit.



|    |                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------
|(2) | Percent of owned units on lease is 97.2%; average age of owned
    units is 16 years; average remaining lease term is
    3.3 years.



Management Services


Backlog




|                                 |  |            |        |      |  |      |       |  |  |   |        | 
|-------------------------------- |  | ---------- | ------ | ---- |  | ---- | ----- |  |  | - | ------ | 
|                                 |  | August 31,
|                                 |  |           
|                                 |  | 2006       |        | 2005 |  | 2004
|                                
|New railcar backlog
    units(1) |  |            | 14,700 |      |  |      | 9,600 |  |  |   | 13,100 | 
|                                
|Estimated value (in millions)    |  | $          | 1,000  |      |  | $    | 550   |  |  | $ | 760    | 



|    |                                                          
|--- | ---------------------------------------------------------
|(1) | Each platform of a railcar is treated as a separate unit.





Customers








The Greenbrier Companies 2006
Annual
Report                                         5




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##### Table of Contents







Raw Materials and
Components






Competition








Marketing and Product
Development












6                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents





Patents and Trademarks


non-U.S.


Environmental Matters






Regulation










The Greenbrier Companies 2006
Annual
Report                                         7




---



##### Table of Contents





Employees






Additional Information


1-800-SEC-0330





Item 1a. RISK
FACTORS


Risks Related to Our
Business


During economic downturns or a rising interest rate
environment, the cyclical nature of our business results in
lower demand for our products and reduced revenue.




The failure of the railcar business to grow as forecasted
by industry analysts may have an adverse effect on our financial
condition and results of operations.




We compete in a highly competitive and concentrated
industry, and this competition or industry consolidation may
adversely impact our financial results.








8                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents





We derive a significant amount of our revenue from a
limited number of customers, the loss of one or more of which
could have an adverse effect on our business.




Fluctuations in the availability and price of steel and
other raw materials could have an adverse effect on our ability
to manufacture and sell our products on a cost-effective
basis.








Our backlog may not be necessarily indicative of the level
of our future revenues.




The timing of our lease remarketing and railcar sales may
cause significant differences in our quarterly results and
liquidity.




A change in our product mix, failure of our new products
or technologies to achieve market acceptance or introduction of
products by our competitors could have an adverse effect on our
profitability and competitive position.








The Greenbrier Companies 2006
Annual
Report                                         9




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##### Table of Contents







We may be unable to remarket leased railcars on favorable
terms upon lease termination or realize the expected residual
values, which could reduce our revenue and decrease our overall
return.




A reduction in negotiated or arbitrated car hire rates
could reduce future car hire revenue.




Risks related to our operations outside of the United
States could adversely impact our operating results.




Fluctuations in foreign currency exchange rates may lead
to increased costs and lower profitability.


non-U.S.






10                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents



We have potential exposure to environmental liabilities,
which may increase costs or have an adverse effect on results of
operations.






Our manufacturers warranties expose us to
potentially significant claims.






We may be liable for physical damage or product liability
claims that exceed our insurance coverage.




Some of our employees belong to labor unions and strikes
or work stoppage could adversely affect our operations.








The Greenbrier Companies 2006
Annual
Report                                         11




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##### Table of Contents



Shortages of skilled labor may adversely impact our
operations.




Our level of indebtedness and terms of our indebtedness
could adversely affect our business, financial condition and
liquidity.




We depend on a third party to provide most of the labor
services for our Mexico operations and if such third party fails
to provide the labor, it could adversely effect our
operations.




Our relationships with our alliance partners may not be
successful, which could adversely affect our business.




We may have difficulty integrating the operations of any
companies that we acquire, which may adversely affect our
results of operations.


day-to


We may not be able to procure insurance on a
cost-effective basis in the future.








12                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents





An adverse outcome in any pending or future litigation
could negatively impact our business and results of
operations.




Our failure to comply with regulations imposed by federal
and foreign agencies could negatively affect our financial
results.




Our implementation of a new enterprise resource planning
(ERP) system may result in problems that could negatively
impact our business.




Our governing documents contain some provisions that may
prevent or make more difficult an attempt to acquire us.






|  |                                                                                                                                                                                                                                              
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a classified board of directors, with each class containing as
    nearly as possible one-third of the total number of members of
    the board of directors and the members of each class serving for
    staggered three-year terms;       
| 
| | a vote of at least 55% of our voting securities to amend some
    provisions of our Articles of Incorporation;                                                                                                                               
| 
| | no less than 120 days advance notice with respect to
    nominations of directors or other matters to be voted on by
    shareholders other than by or at the direction of the board of
    directors;                                      
| 
| | removal of directors only with cause; and                                                                                                                                                                                                    
| 
| | the calling of special meetings of stockholders only by the
    president, a majority of the board of directors or the holders
    of not less than 25% of all votes entitled to be cast on the
    matters to be considered at such meeting.









The Greenbrier Companies 2006
Annual
Report                                         13




---



##### Table of Contents





Failure of any one of our manufacturing facilities to be
competitive could negatively impact our business.






|  |                                                                                                 
|- | ------------------------------------------------------------------------------------------------
| | efficiency of the facility and the local work force;                                            
| 
| | prevailing wage rates and labor costs;                                                          
| 
| | geographical location in relation to customers and suppliers;                                   
| 
| | relative currency values; and                                                                   
| 
| | product mix and suitability of the facility for manufacture of
    particular types of railcars.






Item 1b. UNRESOLVED STAFF
COMMENTS








14                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents






ITEM 2.          PROPERTIES




|                                                                            |  |                                                                                                                                    |  |                             |  |                            
|--------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------- |  | ---------------------------
|Description                                                                 |  | Size                                                                                                                               |  | Location                    |  | Status                     
|                                                                           
|Manufacturing Segment                                                       |  |                                                                                                                                    |  |                             |  |                            
|                                                                           
|Railcar and marine manufacturing facility and wheel
    reconditioning shop |  | 63 acres including 908,000 sq. ft. of manufacturing
    space and a 750-ft. side-launch ways for launching ocean going
    vessels |  | Portland, Oregon            |  | Owned                      
|                                                                           
|Railcar manufacturing facility                                              |  | 100 acres with 764,000 sq. ft. of manufacturing
    space                                                                          |  | Trenton, Nova Scotia Canada |  | Owned                      
|                                                                           
|Railcar manufacturing facility                                              |  | 88 acres with 676,000 sq. ft. of manufacturing
    space                                                                           |  | Swidnica, Poland            |  | Owned                      
|                                                                           
|Railcar manufacturing and wheel reconditioning shop                         |  | 462,000 sq. ft. of manufacturing space, which includes
    a 152,000 sq. ft. wheel reconditioning shop                             |  | Sahagun, Mexico             |  | Leased                     
|                                                                           
|Railcar repair facility                                                     |  | 70 acres                                                                                                                           |  | Cleburne, Texas             |  | Leased with purchase option
|                                                                           
|Railcar repair facility                                                     |  | 51.7 acres                                                                                                                         |  | Kansas City, Missouri       |  | Leased                     
|                                                                           
|Railcar repair facility                                                     |  | 40 acres                                                                                                                           |  | Finley, Washington          |  | Leased with purchase option
|                                                                           
|Railcar repair facility                                                     |  | 32 acres                                                                                                                           |  | Dothan, Alabama             |  | Owned                      
|                                                                           
|Railcar repair facility                                                     |  | 18 acres                                                                                                                           |  | Atchison, Kansas            |  | Owned                      
|                                                                           
|Railcar repair facility                                                     |  | 11.6 acres                                                                                                                         |  | Hodge, Louisiana            |  | Owned                      
|                                                                           
|Railcar repair facility                                                     |  | 5.4 acres                                                                                                                          |  | Springfield, Oregon         |  | Leased                     
|                                                                           
|Railcar repair facility                                                     |  | 0.9 acres                                                                                                                          |  | Empire, California          |  | Leased                     
|                                                                           
|Railcar repair facility                                                     |  | 3.3 acres                                                                                                                          |  | Golden, Colorado            |  | Leased                     
|                                                                           
|Wheel reconditioning shop                                                   |  | 5.6 acres                                                                                                                          |  | Tacoma, Washington          |  | Leased                     
|                                                                           
|Wheel reconditioning shop                                                   |  | 0.5 acres                                                                                                                          |  | Pine Bluff, Arkansas        |  | Leased                     
|                                                                           
|Leasing & Services
    Segment                                              |  |                                                                                                                                    |  |                             |  |                            
|                                                                           
|Executive offices, railcar marketing and leasing activities                 |  | 37,000 sq. ft.                                                                                                                     |  | Lake Oswego, Oregon         |  | Leased                     







The Greenbrier Companies 2006
Annual
Report                                         15




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##### Table of Contents






Item 3.          LEGAL
PROCEEDINGS

















Item 4.          SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS







PART II





Item 5.          MARKET
PRICE OF AND DIVIDENDS ON THE REGISTRANTS COMMON EQUITY
AND RELATED STOCKHOLDER MATTERS




|               |  |      |       |     |  |   |       | 
|-------------- |  | ---- | ----- | --- |  | - | ----- | 
|               |  | High |       | Low
|              
|2006           |  |      |       |     |  |   |       | 
|Fourth quarter |  | $    | 34.90 |     |  | $ | 23.56 | 
|Third quarter  |  | $    | 46.63 |     |  | $ | 32.80 | 
|Second quarter |  | $    | 40.00 |     |  | $ | 26.75 | 
|First quarter  |  | $    | 33.56 |     |  | $ | 24.67 | 
|2005           |  |      |       |     |  |   |       | 
|Fourth quarter |  | $    | 30.70 |     |  | $ | 25.80 | 
|Third quarter  |  | $    | 37.15 |     |  | $ | 25.40 | 
|Second quarter |  | $    | 36.99 |     |  | $ | 25.56 | 
|First quarter  |  | $    | 29.85 |     |  | $ | 19.69 | 







16                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents



Equity Compensation Plan
Information




|                                                               |  |                      |        |                      |  |                      |      |  |  |  |         | 
|-------------------------------------------------------------- |  | -------------------- | ------ | -------------------- |  | -------------------- | ---- |  |  |  | ------- | 
|                                                               |  | Number of securities |        |                      |  | Number of securities
|                                                               |  | to be issued         |        | Weighted average     |  | remaining available 
|                                                               |  | upon exercise of     |        | exercise price of    |  | for future issuance 
|                                                               |  | outstanding options, |        | outstanding options, |  | under equity        
|Plan Category                                                  |  | warrants and rights  |        | warrants and rights  |  | compensation plans  
|                                                              
|                                                              
|Equity compensation plans approved by security holders
    (1) |  |                      | 69,396 |                      |  | $                    | 6.96 |  |  |  | 877,816 | 
|                                                              
|                                                              
|Equity compensation plans not approved by security holders     |  |                      | None   |                      |  |                      | None |  |  |  | None    | 
|                                                              



|    |                                                                                              
|--- | ---------------------------------------------------------------------------------------------
|(1) | Includes the Stock Incentive Plan 2000 (The 2000 Plan) and the
    2005 Stock Incentive Plan.





The Greenbrier Companies 2006
Annual
Report                                         17




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##### Table of Contents






Item 6.          SELECTED
FINANCIAL DATA


|                                            |                       |      |         |         |  |      |           |         |  |      |         |         |  |   |         |         |  |   |         |         |      
|------------------------------------------- | --------------------- | ---- | ------- | ------- |  | ---- | --------- | ------- |  | ---- | ------- | ------- |  | - | ------- | ------- |  | - | ------- | ------- | -----
|YEARS ENDED AUGUST 31,                     
|(Dollar amounts in thousands)               |                       | 2006 |         | 2005    |  | 2004 |           | 2003    |  | 2002
|                                           
|Statement of Operations
    Data            |                       |      |         |         |  |      |           |         |  |      |         |         |  |   |         |         |  |   |         |        
|Revenue:                                    |                       |      |         |         |  |      |           |         |  |      |         |         |  |   |         |         |  |   |         |        
|                                            | Manufacturing         |      | $       | 851,289 |  |      | $         | 941,161 |  |      | $       | 653,234 |  |   | $       | 461,882 |  |   | $       | 295,074 |      
|                                            | Leasing & services    |      |         | 102,534 |  |      |           | 83,061  |  |      |         | 76,217  |  |   |         | 70,443  |  |   |         | 72,250  |      
|                                           
|                                            |                       | $    | 953,823 |         |  | $    | 1,024,222 |         |  | $    | 729,451 |         |  | $ | 532,325 |         |  | $ | 367,324 |        
|                                           
|Earnings (loss) from continuing operations  |                       | $    | 39,536  |         |  | $    | 29,822    |         |  | $    | 20,039  |         |  | $ | 4,317   |         |  | $ | (26,094 | )      
|Earnings from discontinued operations       |                       |      | 62      | (1)     |  |      |          |         |  |      | 739     | (1)     |  |   |        |         |  |   |        |        
|                                           
|                                            | Net earnings (loss)   |      | $       | 39,598  |  |      | $         | 29,822  |  |      | $       | 20,778  |  |   | $       | 4,317   |  |   | $       | (26,094 | ) (2)
|                                           
|Basic earnings (loss) per common share:     |                       |      |         |         |  |      |           |         |  |      |         |         |  |   |         |         |  |   |         |        
|                                            | Continuing operations |      | $       | 2.51    |  |      | $         | 1.99    |  |      | $       | 1.38    |  |   | $       | .31     |  |   | $       | (1.85   | )    
|                                            | Net earnings (loss)   |      | $       | 2.51    |  |      | $         | 1.99    |  |      | $       | 1.43    |  |   | $       | .31     |  |   | $       | (1.85   | )    
|                                           
|Diluted earnings (loss) per common share:   |                       |      |         |         |  |      |           |         |  |      |         |         |  |   |         |         |  |   |         |        
|                                            | Continuing operations |      | $       | 2.48    |  |      | $         | 1.92    |  |      | $       | 1.32    |  |   | $       | .30     |  |   | $       | (1.85   | )    
|                                            | Net earnings (loss)   |      | $       | 2.48    |  |      | $         | 1.92    |  |      | $       | 1.37    |  |   | $       | .30     |  |   | $       | (1.85   | )    
|                                           
|Weighted average common shares outstanding: |                       |      |         |         |  |      |           |         |  |      |         |         |  |   |         |         |  |   |         |        
|                                            | Basic                 |      |         | 15,751  |  |      |           | 15,000  |  |      |         | 14,569  |  |   |         | 14,138  |  |   |         | 14,121  |      
|                                            | Diluted               |      |         | 15,937  |  |      |           | 15,560  |  |      |         | 15,199  |  |   |         | 14,325  |  |   |         | 14,121  |      
|Cash dividends paid per share               |                       | $    | .32     |         |  | $    | .26       |         |  | $    | .06     |         |  |   |        |         |  | $ | .06     |        
|                                           
|Balance Sheet Data                          |                       |      |         |         |  |      |           |         |  |      |         |         |  |   |         |         |  |   |         |        
|Total assets                                |                       | $    | 877,314 |         |  | $    | 671,207   |         |  | $    | 508,753 |         |  | $ | 538,948 |         |  | $ | 527,446 |        
|Notes payable                               |                       | $    | 362,314 |         |  | $    | 214,635   |         |  | $    | 97,513  |         |  | $ | 117,989 |         |  | $ | 144,131 |        
|Subordinated debt                           |                       | $    | 2,091   |         |  | $    | 8,617     |         |  | $    | 14,942  |         |  | $ | 20,921  |         |  | $ | 27,069  |        
|Stockholders equity                        |                       | $    | 219,281 |         |  | $    | 176,059   |         |  | $    | 139,289 |         |  | $ | 111,142 |         |  | $ | 103,139 |        
|                                           
|Other Operating Data                        |                       |      |         |         |  |      |           |         |  |      |         |         |  |   |         |         |  |   |         |        
|New railcar units delivered                 |                       |      | 11,400  |         |  |      | 13,200    |         |  |      | 10,800  |         |  |   | 6,500   |         |  |   | 4,100   |        
|New railcar units backlog                   |                       |      | 14,700  |         |  |      | 9,600     |         |  |      | 13,100  |         |  |   | 10,700  |         |  |   | 5,200   |        
|Lease fleet:                                |                       |      |         |         |  |      |           |         |  |      |         |         |  |   |         |         |  |   |         |        
|                                            | Units managed         |      |         | 135,320 |  |      |           | 128,645 |  |      |         | 122,676 |  |   |         | 114,701 |  |   |         | 35,562  |      
|                                            | Units owned           |      |         | 9,311   |  |      |           | 9,958   |  |      |         | 10,683  |  |   |         | 12,015  |  |   |         | 14,317  |      
|Cash Flow Data                              |                       |      |         |         |  |      |           |         |  |      |         |         |  |   |         |         |  |   |         |        
|Capital expenditures:                       |                       |      |         |         |  |      |           |         |  |      |         |         |  |   |         |         |  |   |         |        
|                                            | Manufacturing         |      | $       | 18,027  |  |      | $         | 16,318  |  |      | $       | 7,161   |  |   | $       | 7,390   |  |   | $       | 4,294   |      
|                                            | Leasing & services    |      |         | 122,542 |  |      |           | 52,805  |  |      |         | 35,798  |  |   |         | 4,505   |  |   |         | 18,365  |      
|                                           
|                                            |                       | $    | 140,569 |         |  | $    | 69,123    |         |  | $    | 42,959  |         |  | $ | 11,895  |         |  | $ | 22,659  |        
|                                           
|Depreciation and amortization:              |                       |      |         |         |  |      |           |         |  |      |         |         |  |   |         |         |  |   |         |        
|                                            | Manufacturing         |      | $       | 12,618  |  |      | $         | 12,205  |  |      | $       | 9,399   |  |   |         | 9,081   |  |   |         | 13,903  |      
|                                            | Leasing & services    |      |         | 12,635  |  |      |           | 10,734  |  |      |         | 11,441  |  |   |         | 9,630   |  |   |         | 9,594   |      
|                                           
|                                            |                       | $    | 25,253  |         |  | $    | 22,939    |         |  | $    | 20,840  |         |  | $ | 18,711  |         |  | $ | 23,497  |        
|                                           
|Ratio of earnings to fixed charges
    (3)  |                       |      | 2.83    |         |  |      | 3.55      |         |  |      | 2.84    |         |  |   | 1.52    |         |  |   | (0.86   | )      



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Consists of a reduction in loss contingency associated with the
    settlement of litigation relating to the logistics business that
    was discontinued in 1998. See Note 4 to the Consolidated
    Financial Statements.                                                                                                                                                                                                                                                                                                                                                                                             
|(2) | Includes $11.5 million (net of tax) of special charges,
    which principally relate to restructuring and write-down of
    European operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(3) | The ratio of earnings to fixed charges is computed by dividing
    earnings before fixed charges by fixed charges. Earnings before
    fixed charges consist of earnings (loss) before income tax,
    minority interest and equity in unconsolidated subsidiaries,
    plus fixed charges. Fixed charges consist of interest expense,
    amortization of debt issuance costs and the portion of rental
    expense that we believe is representative of the interest
    component of lease expense. For the year ended August 31,
    2002, there was a deficiency of earnings to fixed charges of
    $47.2 million.





18                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents






Item 7.       MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS


Executive Summary






















The Greenbrier Companies 2006
Annual
Report                                         19




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##### Table of Contents







Results of Operations


Overview




Manufacturing Segment










Leasing & Services
Segment








20                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents









Other costs








Income Tax










The Greenbrier Companies 2006
Annual
Report                                         21




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##### Table of Contents







Equity in Earnings (Loss) of
Unconsolidated Subsidiaries


start-up




Liquidity and Capital
Resources






3 8


build-up








22                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents





























The Greenbrier Companies 2006
Annual
Report                                         23




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##### Table of Contents



(1)


|                             |  |             |         |      |  |      |         |      |  |      |        |      |  |            |        |  |  |   |        |  |  |   |        |  |  |   |         | 
|---------------------------- |  | ----------- | ------- | ---- |  | ---- | ------- | ---- |  | ---- | ------ | ---- |  | ---------- | ------ |  |  | - | ------ |  |  | - | ------ |  |  | - | ------- | 
|                             |  | Year Ending
|                             |  |            
|(In thousands)               |  | Total       |         | 2007 |  | 2008 |         | 2009 |  | 2010 |        | 2011 |  | Thereafter
|                            
|Notes payable                |  | $           | 362,314 |      |  | $    | 4,517   |      |  | $    | 3,978  |      |  | $          | 4,170  |  |  | $ | 5,373  |  |  | $ | 3,299  |  |  | $ | 340,977 | 
|Interest                     |  |             | 231,036 |      |  |      | 23,649  |      |  |      | 23,439 |      |  |            | 23,180 |  |  |   | 22,862 |  |  |   | 22,514 |  |  |   | 115,392 | 
|Purchase commitments
    (2) |  |             | 30,742  |      |  |      | 30,742  |      |  |      |       |      |  |            |       |  |  |   |       |  |  |   |       |  |  |   |        | 
|Revolving notes              |  |             | 22,429  |      |  |      | 22,429  |      |  |      |       |      |  |            |       |  |  |   |       |  |  |   |       |  |  |   |        | 
|Operating leases             |  |             | 14,743  |      |  |      | 5,718   |      |  |      | 3,658  |      |  |            | 2,537  |  |  |   | 1,189  |  |  |   | 671    |  |  |   | 970     | 
|Participation                |  |             | 13,564  |      |  |      | 9,337   |      |  |      | 3,629  |      |  |            | 330    |  |  |   | 109    |  |  |   | 98     |  |  |   | 61      | 
|Railcar leases               |  |             | 9,102   |      |  |      | 3,943   |      |  |      | 2,656  |      |  |            | 1,351  |  |  |   | 264    |  |  |   | 228    |  |  |   | 660     | 
|                            
|                             |  | $           | 683,930 |      |  | $    | 100,335 |      |  | $    | 37,360 |      |  | $          | 31,568 |  |  | $ | 29,797 |  |  | $ | 26,810 |  |  | $ | 458,060 | 
|                            

|    |                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------
|(1) | Subordinated debt is not included as any amounts due are retired
    from the sales proceeds of the related railcars.

|    |                                                                                        
|--- | ---------------------------------------------------------------------------------------
|(2) | Purchase commitments consist of obligations to third parties for
    railcar purchases.



Off Balance Sheet
Arrangements




Critical Accounting
Policies




Income taxes


Maintenance obligations






24                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents





Warranty accruals




Initial Adoption of Accounting Policies Share Based
Payment


Prospective Accounting Changes Accounting Changes and Error
Corrections Accounting Changes
and , Reporting Accounting Changes in
Interim Financial Statements


Accounting for Uncertainties in
Income tax - an Interpretation of FASB Statement
No. 109


Forward Looking
Statements






|  |                                                                                                         
|- | --------------------------------------------------------------------------------------------------------
| | continued industry demand at current levels for railcar
    products, given substantial price increases;
| 
| | industry overcapacity and our manufacturing capacity utilization;                                       
| 
| | ability to utilize beneficial tax strategies;                                                           
| 
| | decreases in carrying value of assets due to impairment;                                                





The Greenbrier Companies 2006
Annual
Report                                         25




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##### Table of Contents





|  |                                                                                                                                                                                                                  
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | changes in future maintenance requirements;                                                                                                                                                                      
| 
| | effects of local statutory accounting conventions on compliance
    with covenants in certain loan agreements;                                                                                                   
| 
| | delays in receipt of orders, risks that contracts may be
    canceled during their term or not renewed and that customers may
    not purchase as much equipment under existing contracts as
    anticipated; and
| 
| | ability to replace maturing lease revenue and earnings with
    revenue and earnings from additions to the lease fleet and
    management services.                                                              






Item 7a.       QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


Foreign Currency Exchange
Risk






Interest Rate Risk








26                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents






ITEM 8.          FINANCIAL
STATEMENTS AND SUPPLEMENTARY DATA


Consolidated Balance
Sheets




|                                         |                                                                                                                               |      |         |         |   |   |         |         |  
|---------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------- | ---- | ------- | ------- | - | - | ------- | ------- | -
|(In thousands, except per share amounts) |                                                                                                                               | 2006 |         | 2005   
|                                        
|Assets                                   |                                                                                                                               |      |         |         |   |   |         |        
|                                         | Cash and cash equivalents                                                                                                     |      | $       | 142,894 |   |   | $       | 73,204  |  
|                                         | Restricted cash                                                                                                               |      |         | 2,056   |   |   |         | 93      |  
|                                         | Accounts and notes receivable                                                                                                 |      |         | 115,565 |   |   |         | 122,957 |  
|                                         | Inventories                                                                                                                   |      |         | 163,151 |   |   |         | 121,698 |  
|                                         | Railcars held for sale                                                                                                        |      |         | 35,216  |   |   |         | 59,421  |  
|                                         | Investment in direct finance leases                                                                                           |      |         | 6,511   |   |   |         | 9,974   |  
|                                         | Equipment on operating leases                                                                                                 |      |         | 301,009 |   |   |         | 183,155 |  
|                                         | Property, plant and equipment                                                                                                 |      |         | 80,034  |   |   |         | 73,203  |  
|                                         | Other                                                                                                                         |      |         | 30,878  |   |   |         | 27,502  |  
|                                        
|                                         |                                                                                                                               | $    | 877,314 |         |   | $ | 671,207 |        
|                                        
|                                        
|Liabilities and
    Stockholders Equity |                                                                                                                               |      |         |         |   |   |         |        
|                                         | Revolving notes                                                                                                               |      | $       | 22,429  |   |   | $       | 12,453  |  
|                                         | Accounts payable and accrued liabilities                                                                                      |      |         | 204,793 |   |   |         | 195,258 |  
|                                         | Participation                                                                                                                 |      |         | 11,453  |   |   |         | 21,900  |  
|                                         | Deferred income tax                                                                                                           |      |         | 37,472  |   |   |         | 31,629  |  
|                                         | Deferred revenue                                                                                                              |      |         | 17,481  |   |   |         | 6,910   |  
|                                         | Notes payable                                                                                                                 |      |         | 362,314 |   |   |         | 214,635 |  
|                                         | Subordinated debt                                                                                                             |      |         | 2,091   |   |   |         | 8,617   |  
|                                         | Subsidiary shares subject to mandatory redemption                                                                             |      |         |        |   |   |         | 3,746   |  
|                                         | Commitments and contingencies (Notes 24 & 25)                                                                                 |      |         |        |   |   |         |        |  
|                                         | Stockholders equity:                                                                                                         |      |         |         |   |   |         |         |  
|                                         | Preferred stock - without par value; 25,000 shares
    authorized; none outstanding                                           |      |         |        |   |   |         |        |  
|                                         | Common stock - without par value; 50,000 shares
    authorized; 15,954 and 15,479 outstanding at August 31,
    2006 and 2005 |      |         | 16      |   |   |         | 15      |  
|                                         | Additional paid-in capital                                                                                                    |      |         | 71,124  |   |   |         | 62,768  |  
|                                         | Retained earnings                                                                                                             |      |         | 148,542 |   |   |         | 113,987 |  
|                                         | Accumulated other comprehensive loss                                                                                          |      |         | (401    | ) |   |         | (711    | )
|                                        
|                                         |                                                                                                                               |      | 219,281 |         |   |   | 176,059 |        
|                                        
|                                         |                                                                                                                               | $    | 877,314 |         |   | $ | 671,207 |        
|                                        







The Greenbrier Companies 2006
Annual
Report                                         27




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##### Table of Contents



Consolidated Statements of
Operations




|                                                                         |                                    |      |         |         |  |      |           |         |  |   |         |         | 
|------------------------------------------------------------------------ | ---------------------------------- | ---- | ------- | ------- |  | ---- | --------- | ------- |  | - | ------- | ------- | 
|(In thousands, except per share amounts)                                 |                                    | 2006 |         | 2005    |  | 2004
|                                                                        
|Revenue                                                                  |                                    |      |         |         |  |      |           |         |  |   |         |        
|                                                                         | Manufacturing                      |      | $       | 851,289 |  |      | $         | 941,161 |  |   | $       | 653,234 | 
|                                                                         | Leasing & services                 |      |         | 102,534 |  |      |           | 83,061  |  |   |         | 76,217  | 
|                                                                        
|                                                                         |                                    |      | 953,823 |         |  |      | 1,024,222 |         |  |   | 729,451 |        
|Cost of revenue                                                          |                                    |      |         |         |  |      |           |         |  |   |         |        
|                                                                         | Manufacturing                      |      |         | 754,421 |  |      |           | 857,950 |  |   |         | 595,026 | 
|                                                                         | Leasing & services                 |      |         | 42,023  |  |      |           | 41,099  |  |   |         | 42,241  | 
|                                                                        
|                                                                         |                                    |      | 796,444 |         |  |      | 899,049   |         |  |   | 637,267 |        
|Margin                                                                   |                                    |      | 157,379 |         |  |      | 125,173   |         |  |   | 92,184  |        
|Other costs                                                              |                                    |      |         |         |  |      |           |         |  |   |         |        
|                                                                         | Selling and administrative expense |      |         | 70,918  |  |      |           | 57,425  |  |   |         | 48,288  | 
|                                                                         | Interest and foreign exchange      |      |         | 25,396  |  |      |           | 14,835  |  |   |         | 11,468  | 
|                                                                         | Special charges                    |      |         |        |  |      |           | 2,913   |  |   |         | 1,234   | 
|                                                                        
|                                                                         |                                    |      | 96,314  |         |  |      | 75,173    |         |  |   | 60,990  |        
|Earnings before income tax and equity in unconsolidated
    subsidiaries |                                    |      | 61,065  |         |  |      | 50,000    |         |  |   | 31,194  |        
|Income tax expense                                                       |                                    |      | (21,698 | )       |  |      | (19,911   | )       |  |   | (9,119  | )      
|                                                                        
|Earnings before equity in unconsolidated subsidiaries                    |                                    |      | 39,367  |         |  |      | 30,089    |         |  |   | 22,075  |        
|Equity in earnings (loss) of unconsolidated subsidiaries                 |                                    |      | 169     |         |  |      | (267      | )       |  |   | (2,036  | )      
|                                                                        
|Earnings from continuing operations                                      |                                    |      | 39,536  |         |  |      | 29,822    |         |  |   | 20,039  |        
|Earnings from discontinued operations (net of tax)                       |                                    |      | 62      |         |  |      |          |         |  |   | 739     |        
|                                                                        
|Net earnings                                                             |                                    | $    | 39,598  |         |  | $    | 29,822    |         |  | $ | 20,778  |        
|                                                                        
|Basic earnings per common
    share:                                     |                                    |      |         |         |  |      |           |         |  |   |         |        
|                                                                         | Continuing operations              |      | $       | 2.51    |  |      | $         | 1.99    |  |   | $       | 1.38    | 
|                                                                         | Discontinued operations            |      |         |        |  |      |           |        |  |   |         | 0.05    | 
|                                                                        
|                                                                         |                                    | $    | 2.51    |         |  | $    | 1.99      |         |  | $ | 1.43    |        
|                                                                        
|Diluted earnings per common
    share:                                   |                                    |      |         |         |  |      |           |         |  |   |         |        
|                                                                         | Continuing operations              |      | $       | 2.48    |  |      | $         | 1.92    |  |   | $       | 1.32    | 
|                                                                         | Discontinued operations            |      |         |        |  |      |           |        |  |   |         | 0.05    | 
|                                                                        
|                                                                         |                                    | $    | 2.48    |         |  | $    | 1.92      |         |  | $ | 1.37    |        
|                                                                        
|Weighted average common
    shares:                                      |                                    |      |         |         |  |      |           |         |  |   |         |        
|Basic                                                                    |                                    |      | 15,751  |         |  |      | 15,000    |         |  |   | 14,569  |        
|Diluted                                                                  |                                    |      | 15,937  |         |  |      | 15,560    |         |  |   | 15,199  |        







28                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents



Consolidated Statements of
Stockholders Equity


and Comprehensive Income
(Loss)


|                                                                                                        |  |              |        |            |  |          |    |               |  |               |          |        |  |   |         |   |  |   |        |   |  |   |          |  
|------------------------------------------------------------------------------------------------------- |  | ------------ | ------ | ---------- |  | -------- | -- | ------------- |  | ------------- | -------- | ------ |  | - | ------- | - |  | - | ------ | - |  | - | -------- | -
|                                                                                                        |  |              |        |            |  |          |    |               |  | Accumulated   |          |       
|                                                                                                        |  |              |        | Additional |  |          |    | Other         |  | Total        
|(In thousands, except per share                                                                         |  | Common Stock |        | Paid-In    |  | Retained |    | Comprehensive |  | Stockholders
|amounts)                                                                                                |  | Shares       |        | Amount     |  | Capital  |    | Earnings      |  | Income (loss) |          | Equity
|                                                                                                       
|Balance September 1,
    2003                                                                           |  |              | 14,312 |            |  | $        | 14 |               |  | $             | 51,073   |        |  | $ | 68,165  |   |  | $ | (8,110 | ) |  | $ | 111,142  |  
|Net earnings                                                                                            |  |              |       |            |  |          |   |               |  |               |         |        |  |   | 20,778  |   |  |   |       |   |  |   | 20,778   |  
|Translation adjustment (net of tax effect)                                                              |  |              |       |            |  |          |   |               |  |               |         |        |  |   |        |   |  |   | 444    |   |  |   | 444      |  
|Reclassification of derivative financial instruments recognized
    in net earnings (net of tax effect) |  |              |       |            |  |          |   |               |  |               |         |        |  |   |        |   |  |   | (3,865 | ) |  |   | (3,865   | )
|Unrealized gain on derivative financial instruments (net of tax
    effect)                             |  |              |       |            |  |          |   |               |  |               |         |        |  |   |        |   |  |   | 5,586  |   |  |   | 5,586    |  
|                                                                                                        |  |              |        |            |  |          |    |               |  |               |          |        |  |   |         |   |  |   |        |   |  |   |          |  
|Comprehensive income                                                                                    |  |              |        |            |  |          |    |               |  |               |          |        |  |   |         |   |  |   |        |   |  |   | 22,943   |  
|Cash dividends ($0.06 per share)                                                                        |  |              |       |            |  |          |   |               |  |               |         |        |  |   | (889    | ) |  |   |       |   |  |   | (889     | )
|Stock options exercised                                                                                 |  |              | 572    |            |  |          | 1  |               |  |               | 6,092    |        |  |   |        |   |  |   |       |   |  |   | 6,093    |  
|                                                                                                       
|Balance August 31,
    2004                                                                             |  |              | 14,884 |            |  |          | 15 |               |  |               | 57,165   |        |  |   | 88,054  |   |  |   | (5,945 | ) |  |   | 139,289  |  
|Net earnings                                                                                            |  |              |       |            |  |          |   |               |  |               |         |        |  |   | 29,822  |   |  |   |       |   |  |   | 29,822   |  
|Translation adjustment (net of tax effect)                                                              |  |              |       |            |  |          |   |               |  |               |         |        |  |   |        |   |  |   | 2,653  |   |  |   | 2,653    |  
|Reclassification of derivative financial instruments recognized
    in net earnings (net of tax effect) |  |              |       |            |  |          |   |               |  |               |         |        |  |   |        |   |  |   | (2,355 | ) |  |   | (2,355   | )
|Unrealized gain on derivative financial instruments (net of tax
    effect)                             |  |              |       |            |  |          |   |               |  |               |         |        |  |   |        |   |  |   | 4,936  |   |  |   | 4,936    |  
|                                                                                                        |  |              |        |            |  |          |    |               |  |               |          |        |  |   |         |   |  |   |        |   |  |   |          |  
|Comprehensive income                                                                                    |  |              |        |            |  |          |    |               |  |               |          |        |  |   |         |   |  |   |        |   |  |   | 35,056   |  
|Net proceeds from equity offering                                                                       |  |              | 5,175  |            |  |          | 5  |               |  |               | 127,457  |        |  |   |        |   |  |   |       |   |  |   | 127,462  |  
|Shares repurchased                                                                                      |  |              | (5,342 | )          |  |          | (5 | )             |  |               | (127,533 | )      |  |   |        |   |  |   |       |   |  |   | (127,538 | )
|Cash dividends ($0.26 per share)                                                                        |  |              |       |            |  |          |   |               |  |               |         |        |  |   | (3,889  | ) |  |   |       |   |  |   | (3,889   | )
|Restricted stock awards                                                                                 |  |              | 353    |            |  |          |   |               |  |               | 10,221   |        |  |   |        |   |  |   |       |   |  |   | 10,221   |  
|Unamortized restricted stock                                                                            |  |              |       |            |  |          |   |               |  |               | (9,980   | )      |  |   |        |   |  |   |       |   |  |   | (9,980   | )
|Stock options exercised                                                                                 |  |              | 409    |            |  |          |   |               |  |               | 3,045    |        |  |   |        |   |  |   |       |   |  |   | 3,045    |  
|Tax benefit of stock options exercised                                                                  |  |              |       |            |  |          |   |               |  |               | 2,393    |        |  |   |        |   |  |   |       |   |  |   | 2,393    |  
|                                                                                                       
|Balance August 31,
    2005                                                                             |  |              | 15,479 |            |  |          | 15 |               |  |               | 62,768   |        |  |   | 113,987 |   |  |   | (711   | ) |  |   | 176,059  |  
|Net earnings                                                                                            |  |              |       |            |  |          |   |               |  |               |         |        |  |   | 39,598  |   |  |   |       |   |  |   | 39,598   |  
|Translation adjustment (net of tax effect)                                                              |  |              |       |            |  |          |   |               |  |               |         |        |  |   |        |   |  |   | 1,570  |   |  |   | 1,570    |  
|Reclassification of derivative financial instruments recognized
    in net earnings (net of tax effect) |  |              |       |            |  |          |   |               |  |               |         |        |  |   |        |   |  |   | (2,566 | ) |  |   | (2,566   | )
|Unrealized gain on derivative financial instruments (net of tax
    effect)                             |  |              |       |            |  |          |   |               |  |               |         |        |  |   |        |   |  |   | 1,306  |   |  |   | 1,306    |  
|                                                                                                        |  |              |        |            |  |          |    |               |  |               |          |        |  |   |         |   |  |   |        |   |  |   |          |  
|Comprehensive income                                                                                    |  |              |        |            |  |          |    |               |  |               |          |        |  |   |         |   |  |   |        |   |  |   | 39,980   |  
|Cash dividends ($0.32 per share)                                                                        |  |              |       |            |  |          |   |               |  |               |         |        |  |   | (5,043  | ) |  |   |       |   |  |   | (5,043   | )
|Restricted stock awards                                                                                 |  |              | 72     |            |  |          |   |               |  |               | 2,179    |        |  |   |        |   |  |   |       |   |  |   | 2,179    |  
|Unamortized restricted stock                                                                            |  |              |       |            |  |          |   |               |  |               | (1,914   | )      |  |   |        |   |  |   |       |   |  |   | (1,914   | )
|Restricted stock amortization                                                                           |  |              |       |            |  |          |   |               |  |               | 2,550    |        |  |   |        |   |  |   |       |   |  |   | 2,550    |  
|Stock options exercised                                                                                 |  |              | 403    |            |  |          | 1  |               |  |               | 2,941    |        |  |   |        |   |  |   |       |   |  |   | 2,942    |  
|Tax benefit of stock options exercised                                                                  |  |              |       |            |  |          |   |               |  |               | 2,600    |        |  |   |        |   |  |   |       |   |  |   | 2,600    |  
|                                                                                                       
|Balance August 31,
    2006                                                                             |  |              | 15,954 |            |  | $        | 16 |               |  | $             | 71,124   |        |  | $ | 148,542 |   |  | $ | (401   | ) |  | $ | 219,281  |  
|                                                                                                       







The Greenbrier Companies 2006
Annual
Report                                         29




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##### Table of Contents



Consolidated Statements of Cash
Flows




|                                                    |                                                                                                   |                                        |                                          |          |         |         |        |          |        |         |         |         |        |         |  
|--------------------------------------------------- | ------------------------------------------------------------------------------------------------- | -------------------------------------- | ---------------------------------------- | -------- | ------- | ------- | ------ | -------- | ------ | ------- | ------- | ------- | ------ | ------- | -
|(In thousands)                                      |                                                                                                   | 2006                                   |                                          | 2005     |         | 2004   
|                                                   
|Cash flows from operating
    activities:           |                                                                                                   |                                        |                                          |          |         |         |        |          |        |         |         |        
|                                                    | Net earnings                                                                                      |                                        | $                                        | 39,598   |         |         | $      | 29,822   |        |         | $       | 20,778  |       
|                                                    | Adjustments to reconcile net earnings to net cash provided by
    (used in) operating activities: |                                        |                                          |          |         |         |        |          |        |         |         |         |       
|                                                    |                                                                                                   | Earnings from discontinued operations  |                                          |          | (62     | )       |        |          |       |         |         |         | (739   | )      
|                                                    |                                                                                                   | Deferred income taxes                  |                                          |          | 5,893   |         |        |          | 5,807  |         |         |         | 9,646  |        
|                                                    |                                                                                                   | Tax benefit of stock options exercised |                                          |          |        |         |        |          | 2,393  |         |         |         |       |        
|                                                    |                                                                                                   | Depreciation and amortization          |                                          |          | 25,253  |         |        |          | 22,939 |         |         |         | 20,840 |        
|                                                    |                                                                                                   | Gain on sales of equipment             |                                          |          | (10,948 | )       |        |          | (6,797 | )       |         |         | (629   | )      
|                                                    |                                                                                                   | Special charges                        |                                          |          |        |         |        |          |       |         |         |         | 1,234  |        
|                                                    |                                                                                                   | Other                                  |                                          |          | 278     |         |        |          | 651    |         |         |         | 1,332  |        
|                                                    |                                                                                                   | Decrease (increase) in assets:         |                                          |          |         |         |        |          |        |         |         |         |        |        
|                                                    |                                                                                                   |                                        | Accounts and notes receivable            |          |         | 8,948   |        |          |        | (32,328 | )       |         |        | (37,786 | )
|                                                    |                                                                                                   |                                        | Inventories                              |          |         | (37,517 | )      |          |        | 15,403  |         |         |        | (22,355 | )
|                                                    |                                                                                                   |                                        | Railcars held for sale                   |          |         | 156     |        |          |        | (38,495 | )       |         |        | 14,097  |  
|                                                    |                                                                                                   |                                        | Other                                    |          |         | 2,577   |        |          |        | (5,167  | )       |         |        | 2,940   |  
|                                                    |                                                                                                   | Increase (decrease) in liabilities:    |                                          |          |         |         |        |          |        |         |         |         |        |        
|                                                    |                                                                                                   |                                        | Accounts payable and accrued liabilities |          |         | 5,487   |        |          |        | 3       |         |         |        | 30,956  |  
|                                                    |                                                                                                   |                                        | Participation                            |          |         | (10,447 | )      |          |        | (15,207 | )       |         |        | (18,794 | )
|                                                    |                                                                                                   |                                        | Deferred revenue                         |          |         | 10,326  |        |          |        | 4,285   |         |         |        | (37,495 | )
|                                                   
|                                                    | Net cash provided by (used in) operating activities                                               |                                        |                                          | 39,542   |         |         |        | (16,691  | )      |         |         | (15,975 | )     
|                                                   
|Cash flows from investing
    activities:           |                                                                                                   |                                        |                                          |          |         |         |        |          |        |         |         |        
|                                                    | Principal payments received under direct finance leases                                           |                                        |                                          | 2,048    |         |         |        | 5,733    |        |         |         | 9,461   |       
|                                                    | Proceeds from sales of equipment                                                                  |                                        |                                          | 28,863   |         |         |        | 32,528   |        |         |         | 16,217  |       
|                                                    | Investment in and advances to unconsolidated subsidiaries                                         |                                        |                                          | 550      |         |         |        | 92       |        |         |         | (2,240  | )     
|                                                    | Acquisition of joint venture interest                                                             |                                        |                                          |         |         |         |        | 8,435    |        |         |         |        |       
|                                                    | Decrease (increase) in restricted cash                                                            |                                        |                                          | (1,958   | )       |         |        | 1,007    |        |         |         | 4,757   |       
|                                                    | Capital expenditures                                                                              |                                        |                                          | (140,569 | )       |         |        | (69,123  | )      |         |         | (42,959 | )     
|                                                   
|                                                    | Net cash used in investing activities                                                             |                                        |                                          | (111,066 | )       |         |        | (21,328  | )      |         |         | (14,764 | )     
|                                                   
|Cash flows from financing
    activities:           |                                                                                                   |                                        |                                          |          |         |         |        |          |        |         |         |        
|                                                    | Changes in revolving notes                                                                        |                                        |                                          | 8,965    |         |         |        | 2,514    |        |         |         | (14,030 | )     
|                                                    | Proceeds from notes payable                                                                       |                                        |                                          | 154,567  |         |         |        | 169,752  |        |         |         |        |       
|                                                    | Repayments of notes payable                                                                       |                                        |                                          | (13,191  | )       |         |        | (67,691  | )      |         |         | (21,539 | )     
|                                                    | Repayments of subordinated debt                                                                   |                                        |                                          | (6,526   | )       |         |        | (6,325   | )      |         |         | (5,979  | )     
|                                                    | Dividends                                                                                         |                                        |                                          | (5,042   | )       |         |        | (3,889   | )      |         |         | (889    | )     
|                                                    | Net proceeds from equity offering                                                                 |                                        |                                          |         |         |         |        | 127,462  |        |         |         |        |       
|                                                    | Re-purchase and retirement of stock                                                               |                                        |                                          |         |         |         |        | (127,538 | )      |         |         |        |       
|                                                    | Stock options exercised and restricted stock awards                                               |                                        |                                          | 5,757    |         |         |        | 3,286    |        |         |         | 6,093   |       
|                                                    | Excess tax benefit of stock options exercised                                                     |                                        |                                          | 2,600    |         |         |        |         |        |         |         |        |       
|                                                    | Purchase of subsidiarys shares subject to mandatory
    redemption                               |                                        |                                          | (4,636   | )       |         |        |         |        |         |         | (1,277  | )     
|                                                   
|                                                    | Net cash provided by (used in) financing activities                                               |                                        |                                          | 142,494  |         |         |        | 97,571   |        |         |         | (37,621 | )     
|                                                   
|                                                    | Effect of exchange rate changes                                                                   |                                        |                                          | (1,280   | )       |         |        | 1,542    |        |         |         | 3,172   |       
|Increase (decrease) in cash and cash equivalents    |                                                                                                   |                                        | 69,690                                   |          |         |         | 61,094 |          |        |         | (65,188 | )      
|Cash and cash
    equivalents:                      |                                                                                                   |                                        |                                          |          |         |         |        |          |        |         |         |        
|Beginning of period                                 |                                                                                                   |                                        | 73,204                                   |          |         |         | 12,110 |          |        |         | 77,298  |        
|                                                   
|End of period                                       |                                                                                                   | $                                      | 142,894                                  |          |         | $       | 73,204 |          |        | $       | 12,110  |        
|                                                   
|Cash paid during the period
    for:                |                                                                                                   |                                        |                                          |          |         |         |        |          |        |         |         |        
|Interest                                            |                                                                                                   | $                                      | 24,406                                   |          |         | $       | 10,187 |          |        | $       | 11,376  |        
|Income taxes                                        |                                                                                                   | $                                      | 21,256                                   |          |         | $       | 12,287 |          |        | $       | 5,892   |        
|Non cash activity:                                  |                                                                                                   |                                        |                                          |          |         |         |        |          |        |         |         |        
|                                                    | Transfer of railcars held for sale to equipment on operating
    leases                           |                                        | $                                        | 23,955   |         |         | $      |         |        |         | $       |        |       
|Supplemental disclosure of
    subsidiary acquired: |                                                                                                   |                                        |                                          |          |         |         |        |          |        |         |         |        
|                                                    | Assets acquired, net of cash                                                                      |                                        | $                                        |         |         |         | $      | (19,051  | )      |         | $       |        |       
|                                                    | Liabilities assumed                                                                               |                                        |                                          |         |         |         |        | 19,529   |        |         |         |        |       
|                                                    | Investment previously recorded for unconsolidated joint venture                                   |                                        |                                          |         |         |         |        | 7,957    |        |         |         |        |       
|                                                   
|                                                    | Cash acquired                                                                                     |                                        | $                                        |         |         |         | $      | 8,435    |        |         | $       |        |       
|                                                   







30                                        The
Greenbrier Companies 2006 Annual Report




---



##### Table of Contents



Notes to Consolidated Financial
Statements


Note 1 - Nature of
Operations




Note 2 - Summary of
Significant Accounting Policies


Principles of consolidation


Unclassified Balance Sheet


Foreign currency translation


Cash and cash equivalents


Accounts Receivable


Inventories (first-in, Work-in


Railcars held for sale


Equipment on operating leases


Property, plant and equipment


|                           |  |                  |             | 
|-------------------------- |  | ---------------- | ----------- | 
|                           |  | Depreciable Life |            
|                           |  |                  |            
|Buildings and improvements |  |                  | 10-25 years | 
|Machinery & equipment      |  |                  | 3-15 years  | 
|Other                      |  |                  | 3-7 years   | 

Intangible assets


Impairment of long-lived assets






The Greenbrier Companies 2006
Annual
Report                                         31




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##### Table of Contents





Maintenance obligations


Warranty accruals


Contingent rental assistance


Income taxes


Accumulated other comprehensive income (loss)


Revenue recognition




Research and development






32                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents



Forward exchange contracts


Interest rate instruments


Net earnings per share


Stock-based compensation Accounting for Stock
Issued to Employees


|                                                                                                                                |             |      |        |      |  |   |        |      | 
|------------------------------------------------------------------------------------------------------------------------------- | ----------- | ---- | ------ | ---- |  | - | ------ | ---- | 
|(In thousands, except per share amounts)                                                                                        |             | 2005 |        | 2004
|                                                                                                                               
|Net earnings, as reported                                                                                                       |             | $    | 29,822 |      |  | $ | 20,778 |     
|Total stock-based employee compensation expense determined under
    fair value based method for all awards, net of tax
    (1) |             |      | (235   | )    |  |   | (319   | )   
|                                                                                                                               
|Net earnings, pro forma                                                                                                         |             | $    | 29,587 |      |  | $ | 20,459 |     
|                                                                                                                               
|Basic earnings per share                                                                                                        |             |      |        |      |  |   |        |     
|                                                                                                                                | As reported |      | $      | 1.99 |  |   | $      | 1.43 | 
|                                                                                                                               
|                                                                                                                                | Pro forma   |      | $      | 1.97 |  |   | $      | 1.40 | 
|                                                                                                                               
|Diluted earnings per share                                                                                                      |             |      |        |      |  |   |        |     
|                                                                                                                                | As reported |      | $      | 1.92 |  |   | $      | 1.37 | 
|                                                                                                                               
|                                                                                                                                | Pro forma   |      | $      | 1.90 |  |   | $      | 1.35 | 
|                                                                                                                               

|    |                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Compensation expense was determined using the
    Black-Scholes-Merton option-pricing model which was developed to
    estimate value of independently traded options.
    Greenbriers options are not independently traded.





Management estimates


Reclassifications






The Greenbrier Companies 2006
Annual
Report                                         33




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##### Table of Contents



Initial Adoption of Accounting Policies Share Based Payment


Prospective Accounting Changes Accounting Changes and Error
Corrections Accounting Changes Reporting Accounting Changes in Interim
Financial Statements


Accounting for Uncertainties in
Income Tax - an Interpretation of FASB Statement
No. 109


Note 3 -
Acquisitions






|                                         |  |      |           |      |  |   |         | 
|---------------------------------------- |  | ---- | --------- | ---- |  | - | ------- | 
|(In thousands, except per share amounts) |  | 2005 |           | 2004
|                                        
|Revenue                                  |  | $    | 1,052,914 |      |  | $ | 793,775 | 
|Net earnings                             |  | $    | 28,633    |      |  | $ | 18,110  | 
|Basic earnings per share                 |  | $    | 1.91      |      |  | $ | 1.24    | 
|Diluted earnings per share               |  | $    | 1.84      |      |  | $ | 1.19    | 









34                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents



Note 4 - Discontinued
Operations




Note 5 - Special
Charges






Note 6 -
Inventories


|                                         |  |      |         |      |  |   |         |  
|---------------------------------------- |  | ---- | ------- | ---- |  | - | ------- | -
|(In thousands)                           |  | 2006 |         | 2005
|                                        
|Manufacturing supplies and raw materials |  | $    | 49,631  |      |  | $ | 33,653  |  
|                                        
|Work-in-process                          |  |      | 118,555 |      |  |   | 91,637  |  
|                                        
|Lower of cost or market adjustment       |  |      | (5,035  | )    |  |   | (3,592  | )
|                                        
|                                         |  | $    | 163,151 |      |  | $ | 121,698 |  
|                                        

|                                       |  |      |       |      |  |      |        |   |  |   |        |  
|-------------------------------------- |  | ---- | ----- | ---- |  | ---- | ------ | - |  | - | ------ | -
|(In thousands)                         |  | 2006 |       | 2005 |  | 2004
|                                      
|Lower of cost or market
    adjustment |  |      |       |      |  |      |        |   |  |   |        |  
|Balance at beginning of period         |  | $    | 3,592 |      |  | $    | 3,811  |   |  | $ | 3,268  |  
|Charge to cost of revenue              |  |      | 1,976 |      |  |      | 1,398  |   |  |   | 1,617  |  
|Usage                                  |  |      | (670  | )    |  |      | (2,055 | ) |  |   | (1,238 | )
|Currency translation effect            |  |      | 137   |      |  |      | 258    |   |  |   | 164    |  
|Acquisition                            |  |      |      |      |  |      | 180    |   |  |   |       |  
|                                      
|Balance at end of period               |  | $    | 5,035 |      |  | $    | 3,592  |   |  | $ | 3,811  |  
|                                      

Note 7 - Investment in
Direct Finance Leases


|                                           |  |      |        |      |  |   |        |  
|------------------------------------------ |  | ---- | ------ | ---- |  | - | ------ | -
|(In thousands)                             |  | 2006 |        | 2005
|                                          
|Future minimum receipts on lease contracts |  | $    | 12,792 |      |  | $ | 8,394  |  
|Maintenance, insurance and taxes           |  |      | (709   | )    |  |   | (1,037 | )
|                                          
|Net minimum lease receipts                 |  |      | 12,083 |      |  |   | 7,357  |  
|Estimated residual values                  |  |      | 2,049  |      |  |   | 5,899  |  
|Unearned finance charges                   |  |      | (7,621 | )    |  |   | (3,282 | )
|                                          
|                                           |  | $    | 6,511  |      |  | $ | 9,974  |  
|                                          



|                       |  |   |        | 
|---------------------- |  | - | ------ | 
|(In thousands)         |  |  
|                       | 
|Year ending August 31, |  |   |        | 
|2007                   |  | $ | 2,032  | 
|2008                   |  |   | 1,432  | 
|2009                   |  |   | 1,329  | 
|2010                   |  |   | 1,313  | 
|2011                   |  |   | 1,313  | 
|Thereafter             |  |   | 5,373  | 
|                      
|                       |  | $ | 12,792 | 
|                      

Note 8 - Equipment on
Operating Leases


leased-in






The Greenbrier Companies 2006
Annual
Report                                         35




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##### Table of Contents





|                       |  |   |         | 
|---------------------- |  | - | ------- | 
|(In thousands)         |  |  
|                      
|Year ending August 31, |  |   |         | 
|2007                   |  | $ | 29,508  | 
|2008                   |  |   | 26,253  | 
|2009                   |  |   | 17,281  | 
|2010                   |  |   | 14,307  | 
|2011                   |  |   | 10,588  | 
|Thereafter             |  |   | 28,349  | 
|                      
|                       |  | $ | 126,286 | 
|                      



Note 9 - Property,
Plant and Equipment


|                           |  |      |          |      |  |   |          |  
|-------------------------- |  | ---- | -------- | ---- |  | - | -------- | -
|(In thousands)             |  | 2006 |          | 2005
|                          
|Land and improvements      |  | $    | 10,386   |      |  | $ | 9,824    |  
|Machinery and equipment    |  |      | 120,918  |      |  |   | 105,910  |  
|Buildings and improvements |  |      | 61,524   |      |  |   | 55,973   |  
|Other                      |  |      | 14,642   |      |  |   | 16,430   |  
|                          
|                           |  |      | 207,470  |      |  |   | 188,137  |  
|Accumulated depreciation   |  |      | (127,436 | )    |  |   | (114,934 | )
|                          
|                           |  | $    | 80,034   |      |  | $ | 73,203   |  
|                          



|          |                                              
|--------- | ---------------------------------------------
|Note 10 - | Investment in Unconsolidated
    Subsidiaries





|                    |  |      |        |      |  |   |        | 
|------------------- |  | ---- | ------ | ---- |  | - | ------ | 
|(In thousands)      |  | 2006 |        | 2005
|                   
|Current assets      |  | $    | 14,198 |      |  | $ | 17,135 | 
|Total assets        |  | $    | 30,418 |      |  | $ | 33,632 | 
|Current liabilities |  | $    | 13,983 |      |  | $ | 14,931 | 
|Equity              |  | $    | 7,719  |      |  | $ | 6,862  | 

|                    |  |      |         |      |  |      |         |  |  |   |        |  
|------------------- |  | ---- | ------- | ---- |  | ---- | ------- |  |  | - | ------ | -
|(In thousands)      |  | 2006 |         | 2005 |  | 2004
|                   
|Revenue             |  | $    | 123,086 |      |  | $    | 109,801 |  |  | $ | 55,722 |  
|Net earnings (loss) |  | $    | 857     |      |  | $    | 1,942   |  |  | $ | (4,154 | )





|               |  |                    |        |                 |  |   |        |  
|-------------- |  | ------------------ | ------ | --------------- |  | - | ------ | -
|               |  | Three Months Ended |        | Year Ended     
|(In thousands) |  | November 30, 2004  |        | August 31, 2004
|              
|Revenue        |  | $                  | 30,067 |                 |  | $ | 75,565 |  
|Net loss       |  | $                  | (1,576 | )               |  | $ | (2,956 | )



Note 11 - Revolving
Notes








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|          |                                             
|--------- | --------------------------------------------
|Note 12 - | Accounts Payable and Accrued
    Liabilities

|                                        |  |      |         |      |  |   |         | 
|--------------------------------------- |  | ---- | ------- | ---- |  | - | ------- | 
|(In thousands)                          |  | 2006 |         | 2005
|                                       
|Trade payables and accrued liabilities  |  | $    | 141,380 |      |  | $ | 129,499 | 
|                                       
|Accrued maintenance                     |  |      | 22,985  |      |  |   | 25,464  | 
|                                       
|Accrued payroll and related liabilities |  |      | 24,525  |      |  |   | 17,292  | 
|                                       
|Accrued warranty                        |  |      | 14,201  |      |  |   | 15,037  | 
|                                       
|Other                                   |  |      | 1,702   |      |  |   | 7,966   | 
|                                       
|                                        |  | $    | 204,793 |      |  | $ | 195,258 | 
|                                       

Note 13 - Maintenance
and Warranty Accruals


|                               |  |      |         |      |  |      |         |   |  |   |         |  
|------------------------------ |  | ---- | ------- | ---- |  | ---- | ------- | - |  | - | ------- | -
|(In thousands)                 |  | 2006 |         | 2005 |  | 2004
|                              
|Accrued maintenance            |  |      |         |      |  |      |         |   |  |   |         |  
|Balance at beginning of period |  | $    | 25,464  |      |  | $    | 21,264  |   |  | $ | 18,155  |  
|Charged to cost of revenue     |  |      | 16,210  |      |  |      | 20,152  |   |  |   | 19,968  |  
|Payments                       |  |      | (18,689 | )    |  |      | (15,952 | ) |  |   | (16,859 | )
|                              
|Balance at end of period       |  | $    | 22,985  |      |  | $    | 25,464  |   |  | $ | 21,264  |  
|                              
|Accrued warranty               |  |      |         |      |  |      |         |   |  |   |         |  
|Balance at beginning of period |  | $    | 15,037  |      |  | $    | 12,691  |   |  | $ | 9,511   |  
|Charged to cost of revenue     |  |      | 3,111   |      |  |      | 4,664   |   |  |   | 4,895   |  
|Payments                       |  |      | (4,492  | )    |  |      | (3,297  | ) |  |   | (2,186  | )
|Currency translation effect    |  |      | 545     |      |  |      | 811     |   |  |   | 471     |  
|Acquisition                    |  |      |        |      |  |      | 168     |   |  |   |        |  
|                              
|Balance at end of period       |  | $    | 14,201  |      |  | $    | 15,037  |   |  | $ | 12,691  |  
|                              

Note 14 -
Notes Payable


|                       |  |      |         |      |  |   |         | 
|---------------------- |  | ---- | ------- | ---- |  | - | ------- | 
|(In thousands)         |  | 2006 |         | 2005
|                      
|Senior unsecured notes |  | $    | 235,000 |      |  | $ | 175,000 | 
|Convertible notes      |  |      | 100,000 |      |  |   |        | 
|Term loans             |  |      | 27,314  |      |  |   | 39,479  | 
|Other notes payable    |  |      |        |      |  |   | 156     | 
|                      
|                       |  | $    | 362,314 |      |  | $ | 214,635 | 
|                      

3 8






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Report                                         37




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|                       |  |   |         | 
|---------------------- |  | - | ------- | 
|(In thousands)         |  |  
|                      
|Year ending August 31, |  |   |         | 
|2007                   |  | $ | 4,517   | 
|2008                   |  |   | 3,978   | 
|2009                   |  |   | 4,170   | 
|2010                   |  |   | 5,373   | 
|2011                   |  |   | 3,299   | 
|Thereafter             |  |   | 340,977 | 
|                      
|                       |  | $ | 362,314 | 
|                      

Note 15 - Subordinated
Debt




Note 16 - Derivative
Instruments








38                                        The
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Note 17 -
Stockholders Equity












|                                 |  |        |           |          |  |   |       | 
|-------------------------------- |  | ------ | --------- | -------- |  | - | ----- | 
|                                 |  |        |           | Weighted
|                                 |  |        |           | Average 
|                                 |  |        |           | Option  
|                                 |  | Shares |           | Price   
|                                
|Balance at
    September 1, 2003 |  |        | 1,480,450 |          |  | $ | 8.66  | 
|Exercised                        |  |        | (592,200  | )        |  |   | 10.58 | 
|Expired                          |  |        | (4,000    | )        |  |   | 13.63 | 
|                                 |  |        |           |         
|Balance at
    August 31, 2004   |  |        | 884,250   |          |  |   | 7.35  | 
|Exercised                        |  |        | (408,930  | )        |  |   | 7.48  | 
|Expired                          |  |        | (2,500    | )        |  |   | 8.75  | 
|                                 |  |        |           |         
|Balance at
    August 31, 2005   |  |        | 472,820   |          |  |   | 7.24  | 
|Exercised                        |  |        | (403,424  | )        |  |   | 7.29  | 
|                                 |  |        |           |         
|Balance at
    August 31, 2006   |  |        | 69,396    |          |  | $ | 6.96  | 
|                                 |  |        |           |         





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Report                                         39




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Note 18 - Earnings Per
Share




|                                                   |  |      |        |      |  |      |        |  |  |  |        | 
|-------------------------------------------------- |  | ---- | ------ | ---- |  | ---- | ------ |  |  |  | ------ | 
|(In thousands)                                     |  | 2006 |        | 2005 |  | 2004
|                                                  
|Weighted average basic common shares outstanding   |  |      | 15,751 |      |  |      | 15,000 |  |  |  | 14,569 | 
|                                                  
|Dilutive effect of employee stock options          |  |      | 186    |      |  |      | 560    |  |  |  | 630    | 
|                                                  
|                                                  
|Weighted average diluted common shares outstanding |  |      | 15,937 |      |  |      | 15,560 |  |  |  | 15,199 | 
|                                                  



Note 19 - Related
Party Transactions


James-Furman & Company Partnership.


Indebtedness of Management


Policy






40                                        The
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Purchases from unconsolidated
subsidiaries


Note 20 - Employee
Benefit Plans








Note 21 - Income
Taxes




|               |         |      |        |        |   |      |        |        |   |   |       |       |  
|-------------- | ------- | ---- | ------ | ------ | - | ---- | ------ | ------ | - | - | ----- | ----- | -
|(In thousands) |         | 2006 |        | 2005   |   | 2004
|              
|Current:       |         |      |        |        |   |      |        |        |   |   |       |      
|               | Federal |      | $      | 10,619 |   |      | $      | 15,587 |   |   | $     | (35   | )
|               | State   |      |        | 1,175  |   |      |        | 1,213  |   |   |       | 215   |  
|               | Foreign |      |        | 3,904  |   |      |        | 328    |   |   |       | (347  | )
|              
|               |         |      | 15,698 |        |   |      | 17,128 |        |   |   | (167  | )    
|Deferred:      |         |      |        |        |   |      |        |        |   |   |       |      
|               | Federal |      |        | 9,291  |   |      |        | (1,344 | ) |   |       | 7,437 |  
|               | State   |      |        | 2,193  |   |      |        | 2,084  |   |   |       | 1,481 |  
|               | Foreign |      |        | (5,484 | ) |      |        | 2,043  |   |   |       | 368   |  
|              
|               |         |      | 6,000  |        |   |      | 2,783  |        |   |   | 9,286 |      
|              
|               |         | $    | 21,698 |        |   | $    | 19,911 |        |   | $ | 9,119 |      
|              



|                                           |  |      |      |      |  |      |      |   |  |  |       |  
|------------------------------------------ |  | ---- | ---- | ---- |  | ---- | ---- | - |  |  | ----- | -
|                                           |  | 2006 |      | 2005 |  | 2004
|                                          
|Federal statutory rate                     |  |      | 35.0 | %    |  |      | 35.0 | % |  |  | 35.0  | %
|State income taxes, net of federal benefit |  |      | 3.6  |      |  |      | 4.3  |   |  |  | 3.5   |  
|Impact of foreign operations               |  |      | (8.0 | )    |  |      | (1.0 | ) |  |  | (10.0 | )
|Income tax settlement                      |  |      | 4.1  |      |  |      |     |   |  |  |      |  
|Other                                      |  |      | 0.8  |      |  |      | 1.5  |   |  |  | 0.7   |  
|                                          
|                                           |  |      | 35.5 | %    |  |      | 39.8 | % |  |  | 29.2  | %
|                                          





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Report                                         41




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|                           |                                         |      |         |        |   |   |         |        |  
|-------------------------- | --------------------------------------- | ---- | ------- | ------ | - | - | ------- | ------ | -
|(In thousands)             |                                         | 2006 |         | 2005  
|                          
|Deferred tax assets:       |                                         |      |         |        |   |   |         |       
|                           | Deferred participation                  |      | $       | (814   | ) |   | $       | (3,931 | )
|                           | Maintenance and warranty accruals       |      |         | (8,689 | ) |   |         | (9,542 | )
|                           | Accrued payroll and related liabilities |      |         | (4,020 | ) |   |         | (5,568 | )
|                           | Deferred revenue                        |      |         | (7,250 | ) |   |         | (5,754 | )
|                           | Inventories and other                   |      |         | (2,946 | ) |   |         | (3,871 | )
|                           | Investment and asset tax credit         |      |         | (3,002 | ) |   |         | (1,061 | )
|                          
|                           |                                         |      | (26,721 | )      |   |   | (29,727 | )     
|Deferred tax liabilities:  |                                         |      |         |        |   |   |         |       
|                           | Accelerated depreciation                |      |         | 60,743 |   |   |         | 57,439 |  
|                           | SFAS 133 and translation adjustment     |      |         | 1,745  |   |   |         | 1,902  |  
|                           | Other                                   |      |         | 1,705  |   |   |         | 2,015  |  
|                          
|Net deferred tax liability |                                         | $    | 37,472  |        |   | $ | 31,629  |       
|                          









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Note 22 - Segment
Information






|                               |                           |      |         |         |   |      |           |         |   |   |         |         |      
|------------------------------ | ------------------------- | ---- | ------- | ------- | - | ---- | --------- | ------- | - | - | ------- | ------- | -----
|(In thousands)                 |                           | 2006 |         | 2005    |   | 2004
|                              
|Revenue:                       |                           |      |         |         |   |      |           |         |   |   |         |        
|                               | Manufacturing             |      | $       | 927,011 |   |      | $         | 983,818 |   |   | $       | 644,927 |      
|                               | Leasing & services        |      |         | 121,184 |   |      |           | 101,426 |   |   |         | 88,793  |      
|                               | Intersegment eliminations |      |         | (94,372 | ) |      |           | (61,022 | ) |   |         | (4,269  | ) (1)
|                              
|                               |                           | $    | 953,823 |         |   | $    | 1,024,222 |         |   | $ | 729,451 |        
|                              
|Margin:                        |                           |      |         |         |   |      |           |         |   |   |         |        
|                               | Manufacturing             |      | $       | 96,868  |   |      | $         | 83,211  |   |   | $       | 58,208  |      
|                               | Leasing & services        |      |         | 60,511  |   |      |           | 41,962  |   |   |         | 33,976  |      
|                              
|                               |                           | $    | 157,379 |         |   | $    | 125,173   |         |   | $ | 92,184  |        
|                              
|Assets:                        |                           |      |         |         |   |      |           |         |   |   |         |        
|                               | Manufacturing             |      | $       | 342,094 |   |      | $         | 298,730 |   |   | $       | 254,044 |      
|                               | Leasing & services        |      |         | 390,270 |   |      |           | 299,180 |   |   |         | 241,514 |      
|                               | Unallocated               |      |         | 144,950 |   |      |           | 73,297  |   |   |         | 13,195  |      
|                              
|                               |                           | $    | 877,314 |         |   | $    | 671,207   |         |   | $ | 508,753 |        
|                              
|Depreciation and amortization: |                           |      |         |         |   |      |           |         |   |   |         |        
|                               | Manufacturing             |      | $       | 12,618  |   |      | $         | 12,205  |   |   | $       | 9,399   |      
|                               | Leasing & services        |      |         | 12,635  |   |      |           | 10,734  |   |   |         | 11,441  |      
|                              
|                               |                           | $    | 25,253  |         |   | $    | 22,939    |         |   | $ | 20,840  |        
|                              
|Capital expenditures:          |                           |      |         |         |   |      |           |         |   |   |         |        
|                               | Manufacturing             |      | $       | 18,027  |   |      | $         | 16,318  |   |   | $       | 7,161   |      
|                               | Leasing & services        |      |         | 122,542 |   |      |           | 52,805  |   |   |         | 35,798  |      
|                              
|                               |                           | $    | 140,569 |         |   | $    | 69,123    |         |   | $ | 42,959  |        
|                              



|                     |               |      |         |         |  |      |           |         |  |   |         |         | 
|-------------------- | ------------- | ---- | ------- | ------- |  | ---- | --------- | ------- |  | - | ------- | ------- | 
|(In thousands)       |               | 2006 |         | 2005    |  | 2004
|                    
|Revenue:             |               |      |         |         |  |      |           |         |  |   |         |        
|                     | United States |      | $       | 846,560 |  |      | $         | 875,261 |  |   | $       | 558,152 | 
|                     | Foreign       |      |         | 107,263 |  |      |           | 148,961 |  |   |         | 171,299 | 
|                    
|                     |               | $    | 953,823 |         |  | $    | 1,024,222 |         |  | $ | 729,451 |        
|                    
|Identifiable assets: |               |      |         |         |  |      |           |         |  |   |         |        
|                     | United States |      | $       | 679,742 |  |      | $         | 516,690 |  |   | $       | 403,914 | 
|                     | Canada        |      |         | 50,192  |  |      |           | 48,529  |  |   |         | 39,943  | 
|                     | Mexico        |      |         | 80,447  |  |      |           | 48,291  |  |   |         | 366     | 
|                     | Europe        |      |         | 66,933  |  |      |           | 57,697  |  |   |         | 64,530  | 
|                    
|                     |               | $    | 877,314 |         |  | $    | 671,207   |         |  | $ | 508,753 |        
|                    

|    |                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes $33.6 million in revenue associated with railcars
    produced in a prior period for which revenue recognition had
    been deferred pending removal of contractual contingencies that
    were removed in 2004.





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Annual
Report                                         43




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Note 23 - Customer
Concentration




Note 24 - Lease
Commitments




|                       |  |   |       | 
|---------------------- |  | - | ----- | 
|(In thousands)         |  |  
|                      
|Year ending August 31, |  |   |       | 
|2007                   |  | $ | 3,943 | 
|2008                   |  |   | 2,656 | 
|2009                   |  |   | 1,351 | 
|2010                   |  |   | 264   | 
|2011                   |  |   | 228   | 
|Thereafter             |  |   | 660   | 
|                      
|                       |  | $ | 9,102 | 
|                      



|                       |  |   |        | 
|---------------------- |  | - | ------ | 
|(In thousands)         |  |  
|                      
|Year ending August 31, |  |   |        | 
|2007                   |  | $ | 5,718  | 
|2008                   |  |   | 3,658  | 
|2009                   |  |   | 2,537  | 
|2010                   |  |   | 1,189  | 
|2011                   |  |   | 671    | 
|Thereafter             |  |   | 970    | 
|                      
|                       |  | $ | 14,743 | 
|                      

Note 25 - Commitments
and Contingencies










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Note 26 - Fair Value
of Financial Instruments




|                                    |  |          |         |  |            |   |         | 
|----------------------------------- |  | -------- | ------- |  | ---------- | - | ------- | 
|                                    |  | 2006     |        
|                                    |  |          |        
|                                    |  | Carrying |         |  | Estimated  |  
|(In thousands)                      |  | Amount   |         |  | Fair Value |  
|                                    | 
|Notes payable and subordinated debt |  | $        | 364,406 |  |            | $ | 355,685 | 
|Deferred participation              |  | $        | 2,078   |  |            | $ | 1,711   | 

|                                    |  |          |         |  |            |   |         | 
|----------------------------------- |  | -------- | ------- |  | ---------- | - | ------- | 
|                                    |  | 2005     |        
|                                    |  |          |        
|                                    |  | Carrying |         |  | Estimated  |  
|(In thousands)                      |  | Amount   |         |  | Fair Value |  
|                                    | 
|Notes payable and subordinated debt |  | $        | 223,252 |  |            | $ | 218,541 | 
|Deferred participation              |  | $        | 9,826   |  |            | $ | 8,780   | 



Note 27 - Guarantor/
Non Guarantor










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Report                                         47




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|                                         |                                          |        |         |              |  |              |         |              |  |              |         |         |   |   |          |          |   |   |         |         | 
|---------------------------------------- | ---------------------------------------- | ------ | ------- | ------------ |  | ------------ | ------- | ------------ |  | ------------ | ------- | ------- | - | - | -------- | -------- | - | - | ------- | ------- | 
|                                         |                                          |        |         |              |  | Combined     |         |              |  |             
|                                         |                                          |        |         | Combined     |  | Non-         |         |              |  |             
|                                         |                                          |        |         | Guarantor    |  | Guarantor    |         |              |  |             
|(In thousands)                           |                                          | Parent |         | Subsidiaries |  | Subsidiaries |         | Eliminations |  | Consolidated
|                                        
|Assets                                   |                                          |        |         |              |  |              |         |              |  |              |         |         |   |   |          |          |   |   |         |        
|                                         | Cash and cash equivalents                |        | $       | 133,695      |  |              | $       | 35           |  |              | $       | 9,164   |   |   | $        |         |   |   | $       | 142,894 | 
|                                         | Restricted cash                          |        |         |             |  |              |         |             |  |              |         | 2,056   |   |   |          |         |   |   |         | 2,056   | 
|                                         | Accounts and notes receivable            |        |         | 65,188       |  |              |         | 29,525       |  |              |         | 20,812  |   |   |          | 40       |   |   |         | 115,565 | 
|                                         | Inventories                              |        |         |             |  |              |         | 62,468       |  |              |         | 100,683 |   |   |          |         |   |   |         | 163,151 | 
|                                         | Railcars held for sale                   |        |         |             |  |              |         | 24,862       |  |              |         | 10,354  |   |   |          |         |   |   |         | 35,216  | 
|                                         | Investment in direct finance leases      |        |         |             |  |              |         | 6,511        |  |              |         |        |   |   |          |         |   |   |         | 6,511   | 
|                                         | Equipment on operating leases            |        |         |             |  |              |         | 303,664      |  |              |         |        |   |   |          | (2,655   | ) |   |         | 301,009 | 
|                                         | Property, plant and equipment            |        |         |             |  |              |         | 44,013       |  |              |         | 36,021  |   |   |          |         |   |   |         | 80,034  | 
|                                         | Other                                    |        |         | 375,944      |  |              |         | 49,259       |  |              |         | 2,044   |   |   |          | (396,369 | ) |   |         | 30,878  | 
|                                        
|                                         |                                          | $      | 574,827 |              |  | $            | 520,337 |              |  | $            | 181,134 |         |   | $ | (398,984 | )        |   | $ | 877,314 |        
|                                        
|                                        
|Liabilities and
    Stockholders Equity |                                          |        |         |              |  |              |         |              |  |              |         |         |   |   |          |          |   |   |         |        
|                                         | Revolving notes                          |        | $       |             |  |              | $       |             |  |              | $       | 22,429  |   |   | $        |         |   |   | $       | 22,429  | 
|                                         | Accounts payable and accrued liabilities |        |         | 11,146       |  |              |         | 111,764      |  |              |         | 81,842  |   |   |          | 41       |   |   |         | 204,793 | 
|                                         | Participation                            |        |         |             |  |              |         | 11,453       |  |              |         |        |   |   |          |         |   |   |         | 11,453  | 
|                                         | Deferred income tax                      |        |         | 2,704        |  |              |         | 41,091       |  |              |         | (5,876  | ) |   |          | (447     | ) |   |         | 37,472  | 
|                                         | Deferred revenue                         |        |         | 1,241        |  |              |         | 11,030       |  |              |         | 5,210   |   |   |          |         |   |   |         | 17,481  | 
|                                         | Notes payable                            |        |         | 341,929      |  |              |         | 6,716        |  |              |         | 13,669  |   |   |          |         |   |   |         | 362,314 | 
|                                         | Subordinated debt                        |        |         |             |  |              |         | 2,091        |  |              |         |        |   |   |          |         |   |   |         | 2,091   | 
|Stockholders
    Equity                 |                                          |        | 217,807 |              |  |              | 336,192 |              |  |              | 63,860  |         |   |   | (398,578 | )        |   |   | 219,281 |        
|                                        
|                                         |                                          | $      | 574,827 |              |  | $            | 520,337 |              |  | $            | 181,134 |         |   | $ | (398,984 | )        |   | $ | 877,314 |        
|                                        





48                                        The
Greenbrier Companies 2006 Annual Report




---



##### Table of Contents









|                                                                                |                                    |        |         |              |  |              |         |              |   |              |         |         |  |   |          |          |   |   |         |         |  
|------------------------------------------------------------------------------- | ---------------------------------- | ------ | ------- | ------------ |  | ------------ | ------- | ------------ | - | ------------ | ------- | ------- |  | - | -------- | -------- | - | - | ------- | ------- | -
|                                                                                |                                    |        |         |              |  | Combined     |         |              |   |             
|                                                                                |                                    |        |         | Combined     |  | Non-         |         |              |   |             
|                                                                                |                                    |        |         | Guarantor    |  | Guarantor    |         |              |   |             
|(In thousands)                                                                  |                                    | Parent |         | Subsidiaries |  | Subsidiaries |         | Eliminations |   | Consolidated
|                                                                               
|Revenue                                                                         |                                    |        |         |              |  |              |         |              |   |              |         |         |  |   |          |          |   |   |         |        
|                                                                                | Manufacturing                      |        | $       | 11,250       |  |              | $       | 587,740      |   |              | $       | 491,920 |  |   | $        | (239,621 | ) |   | $       | 851,289 |  
|                                                                                | Leasing & services                 |        |         | 4,839        |  |              |         | 99,745       |   |              |         |        |  |   |          | (2,050   | ) |   |         | 102,534 |  
|                                                                               
|                                                                                |                                    |        | 16,089  |              |  |              | 687,485 |              |   |              | 491,920 |         |  |   | (241,671 | )        |   |   | 953,823 |        
|Cost of revenue                                                                 |                                    |        |         |              |  |              |         |              |   |              |         |         |  |   |          |          |   |   |         |        
|                                                                                | Manufacturing                      |        |         | 10,191       |  |              |         | 515,738      |   |              |         | 467,445 |  |   |          | (238,953 | ) |   |         | 754,421 |  
|                                                                                | Leasing & services                 |        |         |             |  |              |         | 42,094       |   |              |         |        |  |   |          | (71      | ) |   |         | 42,023  |  
|                                                                               
|                                                                                |                                    |        | 10,191  |              |  |              | 557,832 |              |   |              | 467,445 |         |  |   | (239,024 | )        |   |   | 796,444 |        
|Margin                                                                          |                                    |        | 5,898   |              |  |              | 129,653 |              |   |              | 24,475  |         |  |   | (2,647   | )        |   |   | 157,379 |        
|Other costs                                                                     |                                    |        |         |              |  |              |         |              |   |              |         |         |  |   |          |          |   |   |         |        
|                                                                                | Selling and administrative expense |        |         | 17,258       |  |              |         | 42,116       |   |              |         | 11,545  |  |   |          | (1       | ) |   |         | 70,918  |  
|                                                                                | Interest and foreign exchange      |        |         | 23,432       |  |              |         | 3,266        |   |              |         | 1,244   |  |   |          | (2,546   | ) |   |         | 25,396  |  
|                                                                               
|                                                                                |                                    |        | 40,690  |              |  |              | 45,382  |              |   |              | 12,789  |         |  |   | (2,547   | )        |   |   | 96,314  |        
|                                                                               
|Earnings (loss) before income tax and equity in unconsolidated
    subsidiaries |                                    |        | (34,792 | )            |  |              | 84,271  |              |   |              | 11,686  |         |  |   | (100     | )        |   |   | 61,065  |        
|                                                                                | Income tax (expense) benefit       |        |         | 11,169       |  |              |         | (34,276      | ) |              |         | 1,361   |  |   |          | 48       |   |   |         | (21,698 | )
|                                                                               
|                                                                                |                                    |        | (23,623 | )            |  |              | 49,995  |              |   |              | 13,047  |         |  |   | (52      | )        |   |   | 39,367  |        
|Equity in earnings (loss) of unconsolidated subsidiaries                        |                                    |        | 63,159  |              |  |              | 8,189   |              |   |              |        |         |  |   | (71,179  | )        |   |   | 169     |        
|                                                                               
|Earnings (loss) from continuing operations                                      |                                    |        | 39,536  |              |  |              | 58,184  |              |   |              | 13,047  |         |  |   | (71,231  | )        |   |   | 39,536  |        
|Earnings from discontinued operations (net of tax)                              |                                    |        | 62      |              |  |              |        |              |   |              |        |         |  |   |         |          |   |   | 62      |        
|                                                                               
|Net earnings                                                                    |                                    | $      | 39,598  |              |  | $            | 58,184  |              |   | $            | 13,047  |         |  | $ | (71,231  | )        |   | $ | 39,598  |        
|                                                                               





The Greenbrier Companies 2006
Annual
Report                                         49




---



##### Table of Contents









|                                                                                                  |                                                                     |                                          |         |              |         |              |          |              |         |              |         |        |         |   |         |        |        |   |          |          |         |  
|------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------- | ---------------------------------------- | ------- | ------------ | ------- | ------------ | -------- | ------------ | ------- | ------------ | ------- | ------ | ------- | - | ------- | ------ | ------ | - | -------- | -------- | ------- | -
|                                                                                                  |                                                                     |                                          |         |              |         | Combined     |          |              |         |             
|                                                                                                  |                                                                     |                                          |         | Combined     |         | Non-         |          |              |         |             
|                                                                                                  |                                                                     |                                          |         | Guarantor    |         | Guarantor    |          |              |         |             
|(In thousands)                                                                                    |                                                                     | Parent                                   |         | Subsidiaries |         | Subsidiaries |          | Eliminations |         | Consolidated
|                                                                                                 
|Cash flows from operating
    activities:                                                         |                                                                     |                                          |         |              |         |              |          |              |         |              |         |        |         |   |         |        |        |   |          |         
|Net earnings                                                                                      |                                                                     | $                                        | 39,598  |              |         | $            | 58,184   |              |         | $            | 13,047  |        |         | $ | (71,231 | )      |        | $ | 39,598   |         
|Adjustments to reconcile net earnings to net cash provided by
    (used in) operating activities: |                                                                     |                                          |         |              |         |              |          |              |         |              |         |        |         |   |         |        |        |   |          |         
|                                                                                                  | Earnings from discontinued operations                               |                                          |         | (62          | )       |              |          |             |         |              |         |       |         |   |         |       |        |   |          | (62      | )      
|                                                                                                  | Deferred income taxes                                               |                                          |         | 1,752        |         |              |          | 9,531        |         |              |         | (5,342 | )       |   |         | (48    | )      |   |          | 5,893    |        
|                                                                                                  | Depreciation and amortization                                       |                                          |         | 56           |         |              |          | 19,510       |         |              |         | 5,759  |         |   |         | (72    | )      |   |          | 25,253   |        
|                                                                                                  | Gain on sales of equipment                                          |                                          |         |             |         |              |          | (10,942      | )       |              |         |       |         |   |         | (6     | )      |   |          | (10,948  | )      
|                                                                                                  | Other                                                               |                                          |         |             |         |              |          | 99           |         |              |         | 180    |         |   |         | (1     | )      |   |          | 278      |        
|                                                                                                  | Decrease (increase) in assets:                                      |                                          |         |              |         |              |          |              |         |              |         |        |         |   |         |        |        |   |          |          |        
|                                                                                                  |                                                                     | Accounts and notes receivable            |         |              | (37,904 | )            |          |              | 52,998  |              |         |        | 350     |   |         |        | (6,496 | ) |          |          | 8,948   |  
|                                                                                                  |                                                                     | Inventories                              |         |              |        |              |          |              | (8,879  | )            |         |        | (28,638 | ) |         |        |       |   |          |          | (37,517 | )
|                                                                                                  |                                                                     | Railcars held for sale                   |         |              |        |              |          |              | (5,356  | )            |         |        | 6,113   |   |         |        | (601   | ) |          |          | 156     |  
|                                                                                                  |                                                                     | Other                                    |         |              | (94,487 | )            |          |              | 19,784  |              |         |        | 1,465   |   |         |        | 75,815 |   |          |          | 2,577   |  
|                                                                                                  | Increase (decrease) in liabilities:                                 |                                          |         |              |         |              |          |              |         |              |         |        |         |   |         |        |        |   |          |          |        
|                                                                                                  |                                                                     | Accounts payable and accrued liabilities |         |              | 1,664   |              |          |              | (11,591 | )            |         |        | 15,456  |   |         |        | (42    | ) |          |          | 5,487   |  
|                                                                                                  |                                                                     | Participation                            |         |              |        |              |          |              | (10,447 | )            |         |        |        |   |         |        |       |   |          |          | (10,447 | )
|                                                                                                  |                                                                     | Deferred revenue                         |         |              | (155    | )            |          |              | 5,644   |              |         |        | 4,837   |   |         |        |       |   |          |          | 10,326  |  
|                                                                                                 
|Net cash provided by (used in) operating activities                                               |                                                                     |                                          | (89,538 | )            |         |              | 118,535  |              |         |              | 13,227  |        |         |   | (2,682  | )      |        |   | 39,542   |         
|                                                                                                 
|Cash flows from investing
    activities:                                                         |                                                                     |                                          |         |              |         |              |          |              |         |              |         |        |         |   |         |        |        |   |          |         
|                                                                                                  | Principal payments received under direct finance leases             |                                          |         |             |         |              |          | 2,048        |         |              |         |       |         |   |         |       |        |   |          | 2,048    |        
|                                                                                                  | Proceeds from sales of equipment                                    |                                          |         |             |         |              |          | 28,863       |         |              |         |       |         |   |         |       |        |   |          | 28,863   |        
|                                                                                                  | Investment in and advances to unconsolidated subsidiaries           |                                          |         |             |         |              |          | 550          |         |              |         |       |         |   |         |       |        |   |          | 550      |        
|                                                                                                  | Decrease in restricted cash                                         |                                          |         |             |         |              |          |             |         |              |         | (1,958 | )       |   |         |       |        |   |          | (1,958   | )      
|                                                                                                  | Capital expenditures                                                |                                          |         |             |         |              |          | (132,934     | )       |              |         | (8,412 | )       |   |         | 777    |        |   |          | (140,569 | )      
|                                                                                                 
|Net cash used in investing activities                                                             |                                                                     |                                          |        |              |         |              | (101,473 | )            |         |              | (10,370 | )      |         |   | 777     |        |        |   | (111,066 | )       
|                                                                                                 
|Cash flows from financing
    activities:                                                         |                                                                     |                                          |         |              |         |              |          |              |         |              |         |        |         |   |         |        |        |   |          |         
|                                                                                                  | Changes in revolving notes                                          |                                          |         |             |         |              |          |             |         |              |         | 8,965  |         |   |         |       |        |   |          | 8,965    |        
|                                                                                                  | Proceeds from notes payable                                         |                                          |         | 154,567      |         |              |          |             |         |              |         |       |         |   |         |       |        |   |          | 154,567  |        
|                                                                                                  | Repayments of notes payable                                         |                                          |         | (1,143       | )       |              |          | (11,055      | )       |              |         | (7,493 | )       |   |         | 6,500  |        |   |          | (13,191  | )      
|                                                                                                  | Repayments of subordinated debt                                     |                                          |         |             |         |              |          | (6,526       | )       |              |         |       |         |   |         |       |        |   |          | (6,526   | )      
|                                                                                                  | Dividends                                                           |                                          |         | (5,042       | )       |              |          |             |         |              |         |       |         |   |         |       |        |   |          | (5,042   | )      
|                                                                                                  | Stock options exercised and restricted stock awards                 |                                          |         | 5,757        |         |              |          |             |         |              |         |       |         |   |         |       |        |   |          | 5,757    |        
|                                                                                                  | Excess tax benefit of stock options exercised                       |                                          |         | 2,600        |         |              |          |             |         |              |         |       |         |   |         |       |        |   |          | 2,600    |        
|                                                                                                  | Purchase of subsidiarys shares subject to mandatory
    redemption |                                          |         |             |         |              |          |             |         |              |         |       |         |   |         | (4,636 | )      |   |          | (4,636   | )      
|                                                                                                 
|Net cash provided by (used in) financing activities                                               |                                                                     |                                          | 156,739 |              |         |              | (17,581  | )            |         |              | 1,472   |        |         |   | 1,864   |        |        |   | 142,494  |         
|                                                                                                 
|Effect of exchange rate changes                                                                   |                                                                     |                                          | (266    | )            |         |              | 81       |              |         |              | (1,095  | )      |         |   |        |        |        |   | (1,280   | )       
|Increase (decrease) in cash and cash equivalents                                                  |                                                                     |                                          | 66,935  |              |         |              | (438     | )            |         |              | 3,234   |        |         |   | (41     | )      |        |   | 69,690   |         
|Cash and cash
    equivalents:                                                                    |                                                                     |                                          |         |              |         |              |          |              |         |              |         |        |         |   |         |        |        |   |          |         
|Beginning of period                                                                               |                                                                     |                                          | 66,760  |              |         |              | 473      |              |         |              | 5,930   |        |         |   | 41      |        |        |   | 73,204   |         
|                                                                                                 
|End of period                                                                                     |                                                                     | $                                        | 133,695 |              |         | $            | 35       |              |         | $            | 9,164   |        |         | $ |        |        |        | $ | 142,894  |         
|                                                                                                 





50                                        The
Greenbrier Companies 2006 Annual Report




---



##### Table of Contents









|                                         |                                                   |        |         |                 |  |                 |         |              |  |              |         |        |   |   |          |          |   |   |         |         | 
|---------------------------------------- | ------------------------------------------------- | ------ | ------- | --------------- |  | --------------- | ------- | ------------ |  | ------------ | ------- | ------ | - | - | -------- | -------- | - | - | ------- | ------- | 
|                                         |                                                   |        |         |                 |  | Combined        |         |              |  |             
|                                         |                                                   |        |         | Combined        |  | Non-            |         |              |  |             
|                                         |                                                   |        |         | Guarantor       |  | Guarantor       |         |              |  |             
|(In thousands)                           |                                                   | Parent |         | Subsidiaries(1) |  | Subsidiaries(1) |         | Eliminations |  | Consolidated
|                                        
|Assets                                   |                                                   |        |         |                 |  |                 |         |              |  |              |         |        |   |   |          |          |   |   |         |        
|                                         | Cash and cash equivalents                         |        | $       | 66,760          |  |                 | $       | 473          |  |              | $       | 5,930  |   |   | $        | 41       |   |   | $       | 73,204  | 
|                                         | Restricted cash                                   |        |         |                |  |                 |         |             |  |              |         | 93     |   |   |          |         |   |   |         | 93      | 
|                                         | Accounts and notes receivable                     |        |         | 27,325          |  |                 |         | 83,074       |  |              |         | 19,014 |   |   |          | (6,456   | ) |   |         | 122,957 | 
|                                         | Inventories                                       |        |         |                |  |                 |         | 53,589       |  |              |         | 68,109 |   |   |          |         |   |   |         | 121,698 | 
|                                         | Railcars held for sale                            |        |         |                |  |                 |         | 43,561       |  |              |         | 16,467 |   |   |          | (607     | ) |   |         | 59,421  | 
|                                         | Investment in direct finance leases               |        |         |                |  |                 |         | 9,974        |  |              |         |       |   |   |          |         |   |   |         | 9,974   | 
|                                         | Equipment on operating leases                     |        |         |                |  |                 |         | 185,104      |  |              |         |       |   |   |          | (1,949   | ) |   |         | 183,155 | 
|                                         | Property, plant and equipment                     |        |         | 8               |  |                 |         | 41,165       |  |              |         | 32,030 |   |   |          |         |   |   |         | 73,203  | 
|                                         | Other                                             |        |         | 276,072         |  |                 |         | 41,707       |  |              |         | 2,707  |   |   |          | (292,984 | ) |   |         | 27,502  | 
|                                        
|                                         |                                                   | $      | 370,165 |                 |  | $               | 458,647 |              |  | $            | 144,350 |        |   | $ | (301,955 | )        |   | $ | 671,207 |        
|                                        
|                                        
|Liabilities and
    Stockholders Equity |                                                   |        |         |                 |  |                 |         |              |  |              |         |        |   |   |          |          |   |   |         |        
|                                         | Revolving notes                                   |        | $       |                |  |                 | $       |             |  |              | $       | 12,453 |   |   | $        |         |   |   | $       | 12,453  | 
|                                         | Accounts payable and accrued liabilities          |        |         | 9,586           |  |                 |         | 122,871      |  |              |         | 62,717 |   |   |          | 84       |   |   |         | 195,258 | 
|                                         | Participation                                     |        |         |                |  |                 |         | 21,900       |  |              |         |       |   |   |          |         |   |   |         | 21,900  | 
|                                         | Deferred income tax                               |        |         | 952             |  |                 |         | 31,560       |  |              |         | (484   | ) |   |          | (399     | ) |   |         | 31,629  | 
|                                         | Deferred revenue                                  |        |         | 1,396           |  |                 |         | 5,387        |  |              |         | 127    |   |   |          |         |   |   |         | 6,910   | 
|                                         | Notes payable                                     |        |         | 183,072         |  |                 |         | 17,772       |  |              |         | 20,291 |   |   |          | (6,500   | ) |   |         | 214,635 | 
|                                         | Subordinated debt                                 |        |         |                |  |                 |         | 8,617        |  |              |         |       |   |   |          |         |   |   |         | 8,617   | 
|                                         | Subsidiary shares subject to mandatory redemption |        |         |                |  |                 |         |             |  |              |         |       |   |   |          | 3,746    |   |   |         | 3,746   | 
|Stockholders Equity                     |                                                   |        | 175,159 |                 |  |                 | 250,540 |              |  |              | 49,246  |        |   |   | (298,886 | )        |   |   | 176,059 |        
|                                        
|                                         |                                                   | $      | 370,165 |                 |  | $               | 458,647 |              |  | $            | 144,350 |        |   | $ | (301,955 | )        |   | $ | 671,207 |        
|                                        



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | A wholly owned Mexican subsidiary is shown as non-guarantor
    subsidiary in the current years presentation. In the prior
    years presentation such financial information was
    consolidated as part of its U.S. parent which is a
    guarantor subsidiary. Amounts for 2005, therefore have been
    reclassified to conform to the current years presentation.
    The net equity investment in the Mexican subsidiary is now shown
    an investment in the Mexican subsidiary in other assets category
    instead of the individual asset and liability categories.





The Greenbrier Companies 2006
Annual
Report                                         51




---



##### Table of Contents









|                                                                                |                                    |        |         |              |  |              |         |              |  |              |         |         |  |   |          |          |   |   |           |         | 
|------------------------------------------------------------------------------- | ---------------------------------- | ------ | ------- | ------------ |  | ------------ | ------- | ------------ |  | ------------ | ------- | ------- |  | - | -------- | -------- | - | - | --------- | ------- | 
|                                                                                |                                    |        |         |              |  | Combined     |         |              |  |             
|                                                                                |                                    |        |         | Combined     |  | Non-         |         |              |  |             
|                                                                                |                                    |        |         | Guarantor    |  | Guarantor    |         |              |  |             
|(In thousands)                                                                  |                                    | Parent |         | Subsidiaries |  | Subsidiaries |         | Eliminations |  | Consolidated
|                                                                               
|Revenue                                                                         |                                    |        |         |              |  |              |         |              |  |              |         |         |  |   |          |          |   |   |           |        
|                                                                                | Manufacturing                      |        | $       | 66,940       |  |              | $       | 549,058      |  |              | $       | 490,473 |  |   | $        | (165,310 | ) |   | $         | 941,161 | 
|                                                                                | Leasing & services                 |        |         | 1,369        |  |              |         | 84,061       |  |              |         |        |  |   |          | (2,369   | ) |   |           | 83,061  | 
|                                                                               
|                                                                                |                                    |        | 68,309  |              |  |              | 633,119 |              |  |              | 490,473 |         |  |   | (167,679 | )        |   |   | 1,024,222 |        
|Cost of revenue                                                                 |                                    |        |         |              |  |              |         |              |  |              |         |         |  |   |          |          |   |   |           |        
|                                                                                | Manufacturing                      |        |         | 62,535       |  |              |         | 493,423      |  |              |         | 466,140 |  |   |          | (164,148 | ) |   |           | 857,950 | 
|                                                                                | Leasing & services                 |        |         |             |  |              |         | 41,168       |  |              |         |        |  |   |          | (69      | ) |   |           | 41,099  | 
|                                                                               
|                                                                                |                                    |        | 62,535  |              |  |              | 534,591 |              |  |              | 466,140 |         |  |   | (164,217 | )        |   |   | 899,049   |        
|Margin                                                                          |                                    |        | 5,774   |              |  |              | 98,528  |              |  |              | 24,333  |         |  |   | (3,462   | )        |   |   | 125,173   |        
|Other costs                                                                     |                                    |        |         |              |  |              |         |              |  |              |         |         |  |   |          |          |   |   |           |        
|                                                                                | Selling and administrative expense |        |         | 14,260       |  |              |         | 32,069       |  |              |         | 10,786  |  |   |          | 310      |   |   |           | 57,425  | 
|                                                                                | Interest and foreign exchange      |        |         | 7,405        |  |              |         | 6,459        |  |              |         | 4,198   |  |   |          | (3,227   | ) |   |           | 14,835  | 
|                                                                                | Special charges                    |        |         |             |  |              |         | 2,913        |  |              |         |        |  |   |          |         |   |   |           | 2,913   | 
|                                                                               
|                                                                                |                                    |        | 21,665  |              |  |              | 41,441  |              |  |              | 14,984  |         |  |   | (2,917   | )        |   |   | 75,173    |        
|                                                                               
|Earnings (loss) before income tax and equity in unconsolidated
    subsidiaries |                                    |        | (15,891 | )            |  |              | 57,087  |              |  |              | 9,349   |         |  |   | (545     | )        |   |   | 50,000    |        
|Income tax (expense) benefit                                                    |                                    |        | 6,452   |              |  |              | (23,996 | )            |  |              | (2,445  | )       |  |   | 78       |          |   |   | (19,911   | )      
|                                                                               
|                                                                                |                                    |        | (9,439  | )            |  |              | 33,091  |              |  |              | 6,904   |         |  |   | (467     | )        |   |   | 30,089    |        
|Equity in earnings (loss) of unconsolidated subsidiaries                        |                                    |        | 39,261  |              |  |              | 2,479   |              |  |              |        |         |  |   | (42,007  | )        |   |   | (267      | )      
|                                                                               
|Net earnings                                                                    |                                    | $      | 29,822  |              |  | $            | 35,570  |              |  | $            | 6,904   |         |  | $ | (42,474  | )        |   | $ | 29,822    |        
|                                                                               





52                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents









|                                                                                                  |                                                           |                                          |          |              |         |              |         |              |         |              |       |        |         |   |         |      |        |   |         |          |         |  
|------------------------------------------------------------------------------------------------- | --------------------------------------------------------- | ---------------------------------------- | -------- | ------------ | ------- | ------------ | ------- | ------------ | ------- | ------------ | ----- | ------ | ------- | - | ------- | ---- | ------ | - | ------- | -------- | ------- | -
|                                                                                                  |                                                           |                                          |          |              |         | Combined     |         |              |         |             
|                                                                                                  |                                                           |                                          |          | Combined     |         | Non-         |         |              |         |             
|                                                                                                  |                                                           |                                          |          | Guarantor    |         | Guarantor    |         |              |         |             
|(In thousands)                                                                                    |                                                           | Parent                                   |          | Subsidiaries |         | Subsidiaries |         | Eliminations |         | Consolidated
|                                                                                                 
|Cash flows from operating
    activities:                                                         |                                                           |                                          |          |              |         |              |         |              |         |              |       |        |         |   |         |      |        |   |         |         
|Net earnings                                                                                      |                                                           | $                                        | 29,822   |              |         | $            | 35,570  |              |         | $            | 6,904 |        |         | $ | (42,474 | )    |        | $ | 29,822  |         
|Adjustments to reconcile net earnings to net cash provided by
    (used in) operating activities: |                                                           |                                          |          |              |         |              |         |              |         |              |       |        |         |   |         |      |        |   |         |         
|                                                                                                  | Deferred income taxes                                     |                                          |          | (2,845       | )       |              |         | (553         | )       |              |       | 9,284  |         |   |         | (79  | )      |   |         | 5,807    |        
|                                                                                                  | Tax benefit of stock options exercised                    |                                          |          | 2,393        |         |              |         |             |         |              |       |       |         |   |         |     |        |   |         | 2,393    |        
|                                                                                                  | Depreciation and amortization                             |                                          |          | 208          |         |              |         | 17,316       |         |              |       | 5,483  |         |   |         | (68  | )      |   |         | 22,939   |        
|                                                                                                  | Gain on sales of equipment                                |                                          |          |             |         |              |         | (6,439       | )       |              |       |       |         |   |         | (358 | )      |   |         | (6,797   | )      
|                                                                                                  | Other                                                     |                                          |          |             |         |              |         | 250          |         |              |       | 401    |         |   |         |     |        |   |         | 651      |        
|                                                                                                  | Decrease (increase) in assets:                            |                                          |          |              |         |              |         |              |         |              |       |        |         |   |         |      |        |   |         |          |        
|                                                                                                  |                                                           | Accounts and notes receivable            |          |              | (95,492 | )            |         |              | 81,788  |              |       |        | (18,886 | ) |         |      | 262    |   |         |          | (32,328 | )
|                                                                                                  |                                                           | Inventories                              |          |              |        |              |         |              | (6,657  | )            |       |        | 21,689  |   |         |      | 371    |   |         |          | 15,403  |  
|                                                                                                  |                                                           | Railcars held for sale                   |          |              |        |              |         |              | (27,522 | )            |       |        | (11,574 | ) |         |      | 601    |   |         |          | (38,495 | )
|                                                                                                  |                                                           | Other                                    |          |              | (40,639 | )            |         |              | (6,399  | )            |       |        | (136    | ) |         |      | 42,007 |   |         |          | (5,167  | )
|                                                                                                  | Increase (decrease) in liabilities:                       |                                          |          |              |         |              |         |              |         |              |       |        |         |   |         |      |        |   |         |          |        
|                                                                                                  |                                                           | Accounts payable and accrued liabilities |          |              | 4,459   |              |         |              | 3,345   |              |       |        | (7,580  | ) |         |      | (221   | ) |         |          | 3       |  
|                                                                                                  |                                                           | Participation                            |          |              |        |              |         |              | (15,207 | )            |       |        |        |   |         |      |       |   |         |          | (15,207 | )
|                                                                                                  |                                                           | Deferred revenue                         |          |              | 1,397   |              |         |              | 2,837   |              |       |        | 51      |   |         |      |       |   |         |          | 4,285   |  
|                                                                                                 
|Net cash provided by (used in) operating activities                                               |                                                           |                                          | (100,697 | )            |         |              | 78,329  |              |         |              | 5,636 |        |         |   | 41      |      |        |   | (16,691 | )       
|                                                                                                 
|Cash flows from investing
    activities:                                                         |                                                           |                                          |          |              |         |              |         |              |         |              |       |        |         |   |         |      |        |   |         |         
|                                                                                                  | Principal payments received under direct finance leases   |                                          |          |             |         |              |         | 5,733        |         |              |       |       |         |   |         |     |        |   |         | 5,733    |        
|                                                                                                  | Proceeds from sales of equipment                          |                                          |          |             |         |              |         | 32,528       |         |              |       |       |         |   |         |     |        |   |         | 32,528   |        
|                                                                                                  | Investment in and advances to unconsolidated subsidiaries |                                          |          |             |         |              |         | 92           |         |              |       |       |         |   |         |     |        |   |         | 92       |        
|                                                                                                  | Acquisition of joint venture interest                     |                                          |          |             |         |              |         | 5,813        |         |              |       | 2,622  |         |   |         |     |        |   |         | 8,435    |        
|                                                                                                  | Decrease in restricted cash                               |                                          |          |             |         |              |         |             |         |              |       | 1,007  |         |   |         |     |        |   |         | 1,007    |        
|                                                                                                  | Capital expenditures                                      |                                          |          |             |         |              |         | (63,183      | )       |              |       | (5,940 | )       |   |         |     |        |   |         | (69,123  | )      
|                                                                                                 
|                                                                                                  | Net cash provided by (used in) investing activities       |                                          |          |             |         |              |         | (19,017      | )       |              |       | (2,311 | )       |   |         |     |        |   |         | (21,328  | )      
|                                                                                                 
|Cash flows from financing
    activities:                                                         |                                                           |                                          |          |              |         |              |         |              |         |              |       |        |         |   |         |      |        |   |         |         
|                                                                                                  | Changes in revolving notes                                |                                          |          |             |         |              |         |             |         |              |       | 2,514  |         |   |         |     |        |   |         | 2,514    |        
|                                                                                                  | Proceeds from notes payable                               |                                          |          | 169,752      |         |              |         |             |         |              |       |       |         |   |         |     |        |   |         | 169,752  |        
|                                                                                                  | Repayments of notes payable                               |                                          |          | (1,052       | )       |              |         | (65,752      | )       |              |       | (887   | )       |   |         |     |        |   |         | (67,691  | )      
|                                                                                                  | Repayments of subordinated debt                           |                                          |          |             |         |              |         | (6,325       | )       |              |       |       |         |   |         |     |        |   |         | (6,325   | )      
|                                                                                                  | Dividends                                                 |                                          |          | (3,889       | )       |              |         |             |         |              |       |       |         |   |         |     |        |   |         | (3,889   | )      
|                                                                                                  | Net proceeds from equity offering                         |                                          |          | 127,462      |         |              |         |             |         |              |       |       |         |   |         |     |        |   |         | 127,462  |        
|                                                                                                  | Repurchase and retirement of stock                        |                                          |          | (127,538     | )       |              |         |             |         |              |       |       |         |   |         |     |        |   |         | (127,538 | )      
|                                                                                                  | Stock options exercised and restricted stock awards       |                                          |          | 3,286        |         |              |         |             |         |              |       |       |         |   |         |     |        |   |         | 3,286    |        
|                                                                                                 
|Net cash provided by (used in) financing activities                                               |                                                           |                                          | 168,021  |              |         |              | (72,077 | )            |         |              | 1,627 |        |         |   |        |      |        |   | 97,571  |         
|                                                                                                 
|Effect of exchange rate changes                                                                   |                                                           |                                          | (564     | )            |         |              | 2,784   |              |         |              | (678  | )      |         |   |        |      |        |   | 1,542   |         
|Increase (decrease) in cash and cash equivalents                                                  |                                                           |                                          | 66,760   |              |         |              | (9,981  | )            |         |              | 4,274 |        |         |   | 41      |      |        |   | 61,094  |         
|Cash and cash
    equivalents:                                                                    |                                                           |                                          |          |              |         |              |         |              |         |              |       |        |         |   |         |      |        |   |         |         
|Beginning of period                                                                               |                                                           |                                          |         |              |         |              | 10,454  |              |         |              | 1,656 |        |         |   |        |      |        |   | 12,110  |         
|                                                                                                 
|End of period                                                                                     |                                                           | $                                        | 66,760   |              |         | $            | 473     |              |         | $            | 5,930 |        |         | $ | 41      |      |        | $ | 73,204  |         
|                                                                                                 





The Greenbrier Companies 2006
Annual
Report                                         53




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##### Table of Contents









|                                                                                |                                    |        |         |              |  |              |         |              |  |              |         |         |  |   |         |        |   |   |         |         | 
|------------------------------------------------------------------------------- | ---------------------------------- | ------ | ------- | ------------ |  | ------------ | ------- | ------------ |  | ------------ | ------- | ------- |  | - | ------- | ------ | - | - | ------- | ------- | 
|                                                                                |                                    |        |         |              |  | Combined     |         |              |  |             
|                                                                                |                                    |        |         | Combined     |  | Non-         |         |              |  |             
|                                                                                |                                    |        |         | Guarantor    |  | Guarantor    |         |              |  |             
|(In thousands)                                                                  |                                    | Parent |         | Subsidiaries |  | Subsidiaries |         | Eliminations |  | Consolidated
|                                                                               
|Revenue                                                                         |                                    |        |         |              |  |              |         |              |  |              |         |         |  |   |         |        |   |   |         |        
|                                                                                | Manufacturing                      |        | $       | 28,551       |  |              | $       | 306,070      |  |              | $       | 306,984 |  |   | $       | 11,629 |   |   | $       | 653,234 | 
|                                                                                | Leasing & services                 |        |         | 881          |  |              |         | 75,405       |  |              |         |        |  |   |         | (69    | ) |   |         | 76,217  | 
|                                                                               
|                                                                                |                                    |        | 29,432  |              |  |              | 381,475 |              |  |              | 306,984 |         |  |   | 11,560  |        |   |   | 729,451 |        
|Cost of revenue                                                                 |                                    |        |         |              |  |              |         |              |  |              |         |         |  |   |         |        |   |   |         |        
|                                                                                | Manufacturing                      |        |         | 25,042       |  |              |         | 270,455      |  |              |         | 287,717 |  |   |         | 11,812 |   |   |         | 595,026 | 
|                                                                                | Leasing & services                 |        |         |             |  |              |         | 42,304       |  |              |         |        |  |   |         | (63    | ) |   |         | 42,241  | 
|                                                                               
|                                                                                |                                    |        | 25,042  |              |  |              | 312,759 |              |  |              | 287,717 |         |  |   | 11,749  |        |   |   | 637,267 |        
|Margin                                                                          |                                    |        | 4,390   |              |  |              | 68,716  |              |  |              | 19,267  |         |  |   | (189    | )      |   |   | 92,184  |        
|Other costs                                                                     |                                    |        |         |              |  |              |         |              |  |              |         |         |  |   |         |        |   |   |         |        
|                                                                                | Selling and administrative expense |        |         | 12,608       |  |              |         | 24,748       |  |              |         | 10,932  |  |   |         |       |   |   |         | 48,288  | 
|                                                                                | Interest and foreign exchange      |        |         | 2,386        |  |              |         | 6,170        |  |              |         | 2,975   |  |   |         | (63    | ) |   |         | 11,468  | 
|                                                                                | Special charges                    |        |         |             |  |              |         |             |  |              |         | 1,234   |  |   |         |       |   |   |         | 1,234   | 
|                                                                               
|                                                                                |                                    |        | 14,994  |              |  |              | 30,918  |              |  |              | 15,141  |         |  |   | (63     | )      |   |   | 60,990  |        
|Earnings (loss) before income tax and equity in unconsolidated
    subsidiaries |                                    |        | (10,604 | )            |  |              | 37,798  |              |  |              | 4,126   |         |  |   | (126    | )      |   |   | 31,194  |        
|Income tax (expense) benefit                                                    |                                    |        | 6,468   |              |  |              | (15,906 | )            |  |              | (26     | )       |  |   | 345     |        |   |   | (9,119  | )      
|                                                                               
|                                                                                |                                    |        | (4,136  | )            |  |              | 21,892  |              |  |              | 4,100   |         |  |   | 219     |        |   |   | 22,075  |        
|Equity in earnings (loss) of unconsolidated subsidiaries                        |                                    |        | 24,914  |              |  |              | (822    | )            |  |              |        |         |  |   | (26,128 | )      |   |   | (2,036  | )      
|                                                                               
|Earnings from continuing operations                                             |                                    |        | 20,778  |              |  |              | 21,070  |              |  |              | 4,100   |         |  |   | (25,909 | )      |   |   | 20,039  |        
|Earnings from discontinued operations (net of tax)                              |                                    |        |        |              |  |              |        |              |  |              | 739     |         |  |   |        |        |   |   | 739     |        
|                                                                               
|Net earnings                                                                    |                                    | $      | 20,778  |              |  | $            | 21,070  |              |  | $            | 4,839   |         |  | $ | (25,909 | )      |   | $ | 20,778  |        
|                                                                               





54                                        The
Greenbrier Companies 2006 Annual Report




---



##### Table of Contents









|                                                                                                   |                                                                     |                                          |        |              |         |              |         |              |         |              |        |         |         |   |         |        |         |   |         |         |         |  
|-------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------- | ---------------------------------------- | ------ | ------------ | ------- | ------------ | ------- | ------------ | ------- | ------------ | ------ | ------- | ------- | - | ------- | ------ | ------- | - | ------- | ------- | ------- | -
|                                                                                                   |                                                                     |                                          |        |              |         | Combined     |         |              |         |             
|                                                                                                   |                                                                     |                                          |        | Combined     |         | Non-         |         |              |         |             
|                                                                                                   |                                                                     |                                          |        | Guarantor    |         | Guarantor    |         |              |         |             
|(In thousands)                                                                                     |                                                                     | Parent                                   |        | Subsidiaries |         | Subsidiaries |         | Eliminations |         | Consolidated
|                                                                                                  
|Cash flows from operating
    activities:                                                          |                                                                     |                                          |        |              |         |              |         |              |         |              |        |         |         |   |         |        |         |   |         |        
|Net earnings                                                                                       |                                                                     | $                                        | 20,778 |              |         | $            | 21,070  |              |         | $            | 4,839  |         |         | $ | (25,909 | )      |         | $ | 20,778  |        
|Adjustments to reconcile net earnings to net cash provided by
    (used in ) operating activities: |                                                                     |                                          |        |              |         |              |         |              |         |              |        |         |         |   |         |        |         |   |         |        
|                                                                                                   | Earnings from discontinued operations                               |                                          |        |             |         |              |         |             |         |              |        | (739    | )       |   |         |       |         |   |         | (739    | )      
|                                                                                                   | Deferred income taxes                                               |                                          |        | 1,220        |         |              |         | 8,200        |         |              |        | 571     |         |   |         | (345   | )       |   |         | 9,646   |        
|                                                                                                   | Depreciation and amortization                                       |                                          |        | 208          |         |              |         | 17,824       |         |              |        | 2,871   |         |   |         | (63    | )       |   |         | 20,840  |        
|                                                                                                   | Gain on sales of equipment                                          |                                          |        |             |         |              |         | (512         | )       |              |        |        |         |   |         | (117   | )       |   |         | (629    | )      
|                                                                                                   | Special charges                                                     |                                          |        |             |         |              |         |             |         |              |        | 1,234   |         |   |         |       |         |   |         | 1,234   |        
|                                                                                                   | Other                                                               |                                          |        |             |         |              |         | 896          |         |              |        | 435     |         |   |         | 1      |         |   |         | 1,332   |        
|                                                                                                   | Decrease (increase) in assets:                                      |                                          |        |              |         |              |         |              |         |              |        |         |         |   |         |        |         |   |         |         |        
|                                                                                                   |                                                                     | Accounts and notes receivable            |        |              | 6,441   |              |         |              | (32,065 | )            |        |         | (12,304 | ) |         |        | 142     |   |         |         | (37,786 | )
|                                                                                                   |                                                                     | Inventories                              |        |              |        |              |         |              | (21,108 | )            |        |         | (1,647  | ) |         |        | 400     |   |         |         | (22,355 | )
|                                                                                                   |                                                                     | Railcars held for sale                   |        |              |        |              |         |              | (14,523 | )            |        |         | (4,127  | ) |         |        | 32,747  |   |         |         | 14,097  |  
|                                                                                                   |                                                                     | Other                                    |        |              | (36,750 | )            |         |              | 692     |              |        |         | 11,593  |   |         |        | 27,405  |   |         |         | 2,940   |  
|                                                                                                   | Increase (decrease) in liabilities:                                 |                                          |        |              |         |              |         |              |         |              |        |         |         |   |         |        |         |   |         |         |        
|                                                                                                   |                                                                     | Accounts payable and accrued liabilities |        |              | 3,814   |              |         |              | 18,461  |              |        |         | 8,699   |   |         |        | (18     | ) |         |         | 30,956  |  
|                                                                                                   |                                                                     | Participation                            |        |              |        |              |         |              | (18,794 | )            |        |         |        |   |         |        |        |   |         |         | (18,794 | )
|                                                                                                   |                                                                     | Deferred revenue                         |        |              |        |              |         |              | (3,367  | )            |        |         | (522    | ) |         |        | (33,606 | ) |         |         | (37,495 | )
|                                                                                                  
|Net cash provided by (used in) operating activities                                                |                                                                     |                                          | (4,289 | )            |         |              | (23,226 | )            |         |              | 10,903 |         |         |   | 637     |        |         |   | (15,975 | )      
|                                                                                                  
|Cash flows from investing
    activities:                                                          |                                                                     |                                          |        |              |         |              |         |              |         |              |        |         |         |   |         |        |         |   |         |        
|                                                                                                   | Principal payments received under direct finance leases             |                                          |        |             |         |              |         | 9,461        |         |              |        |        |         |   |         |       |         |   |         | 9,461   |        
|                                                                                                   | Proceeds from sales of equipment                                    |                                          |        |             |         |              |         | 16,217       |         |              |        |        |         |   |         |       |         |   |         | 16,217  |        
|                                                                                                   | Investment in and advances to unconsolidated subsidiaries           |                                          |        |             |         |              |         | (2,240       | )       |              |        |        |         |   |         |       |         |   |         | (2,240  | )      
|                                                                                                   | Decrease in restricted cash                                         |                                          |        |             |         |              |         | 1,233        |         |              |        | 3,524   |         |   |         |       |         |   |         | 4,757   |        
|                                                                                                   | Capital expenditures                                                |                                          |        |             |         |              |         | (40,221      | )       |              |        | (3,378  | )       |   |         | 640    |         |   |         | (42,959 | )      
|                                                                                                  
|                                                                                                   | Net cash (used in) provided by investing activities                 |                                          |        |             |         |              |         | (15,550      | )       |              |        | 146     |         |   |         | 640    |         |   |         | (14,764 | )      
|                                                                                                  
|Cash flows from financing
    activities:                                                          |                                                                     |                                          |        |              |         |              |         |              |         |              |        |         |         |   |         |        |         |   |         |        
|                                                                                                   | Changes in revolving notes                                          |                                          |        |             |         |              |         |             |         |              |        | (14,030 | )       |   |         |       |         |   |         | (14,030 | )      
|                                                                                                   | Repayments of notes payable                                         |                                          |        | (969         | )       |              |         | (19,751      | )       |              |        | (819    | )       |   |         |       |         |   |         | (21,539 | )      
|                                                                                                   | Repayments of subordinated debt                                     |                                          |        |             |         |              |         | (5,979       | )       |              |        |        |         |   |         |       |         |   |         | (5,979  | )      
|                                                                                                   | Dividends                                                           |                                          |        | (889         | )       |              |         |             |         |              |        |        |         |   |         |       |         |   |         | (889    | )      
|                                                                                                   | Proceeds from exercise of stock options                             |                                          |        | 6,093        |         |              |         |             |         |              |        |        |         |   |         |       |         |   |         | 6,093   |        
|                                                                                                   | Purchase of subsidiarys shares subject to mandatory
    redemption |                                          |        |             |         |              |         |             |         |              |        |        |         |   |         | (1,277 | )       |   |         | (1,277  | )      
|                                                                                                  
|                                                                                                   | Net cash provided by (used in) financing activities                 |                                          |        | 4,235        |         |              |         | (25,730      | )       |              |        | (14,849 | )       |   |         | (1,277 | )       |   |         | (37,621 | )      
|                                                                                                  
|Effect of exchange rate changes                                                                    |                                                                     |                                          | 54     |              |         |              | 571     |              |         |              | 2,547  |         |         |   |        |        |         |   | 3,172   |        
|Decrease in cash and cash equivalents                                                              |                                                                     |                                          |       |              |         |              | (63,935 | )            |         |              | (1,253 | )       |         |   |        |        |         |   | (65,188 | )      
|Cash and cash
    equivalents:                                                                     |                                                                     |                                          |        |              |         |              |         |              |         |              |        |         |         |   |         |        |         |   |         |        
|Beginning of period                                                                                |                                                                     |                                          |       |              |         |              | 74,389  |              |         |              | 2,909  |         |         |   |        |        |         |   | 77,298  |        
|                                                                                                  
|End of period                                                                                      |                                                                     | $                                        |       |              |         | $            | 10,454  |              |         | $            | 1,656  |         |         | $ |        |        |         | $ | 12,110  |        
|                                                                                                  





The Greenbrier Companies 2006
Annual
Report                                         55




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##### Table of Contents



Note 28 - Subsequent
Event (Unaudited)


end-of-railcar












56                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents



Quarterly Results of Operations
(Unaudited)




|                                                                         |                                                    |       |         |         |        |   |         |         |  |   |         |         |  |       |         |         |  |   |         |         | 
|------------------------------------------------------------------------ | -------------------------------------------------- | ----- | ------- | ------- | ------ | - | ------- | ------- |  | - | ------- | ------- |  | ----- | ------- | ------- |  | - | ------- | ------- | 
|(In thousands, except per share amounts)                                 |                                                    | First |         |         | Second |   |         | Third   |  |   | Fourth  |         |  | Total |        
|                                                                         |                                                   
|2006                                                                     |                                                    |       |         |         |        |   |         |         |  |   |         |         |  |       |         |         |  |   |         |        
|Revenue                                                                  |                                                    |       |         |         |        |   |         |         |  |   |         |         |  |       |         |         |  |   |         |        
|                                                                         | Manufacturing                                      |       | $       | 164,596 |        |   | $       | 208,922 |  |   | $       | 236,052 |  |       | $       | 241,719 |  |   | $       | 851,289 | 
|                                                                         | Leasing & services                                 |       |         | 21,766  |        |   |         | 27,292  |  |   |         | 30,036  |  |       |         | 23,440  |  |   |         | 102,534 | 
|                                                                        
|                                                                         |                                                    |       | 186,362 |         |        |   | 236,214 |         |  |   | 266,088 |         |  |       | 265,159 |         |  |   | 953,823 |        
|Cost of revenue                                                          |                                                    |       |         |         |        |   |         |         |  |   |         |         |  |       |         |         |  |   |         |        
|                                                                         | Manufacturing                                      |       |         | 143,030 |        |   |         | 185,360 |  |   |         | 211,444 |  |       |         | 214,587 |  |   |         | 754,421 | 
|                                                                         | Leasing & services                                 |       |         | 10,439  |        |   |         | 10,671  |  |   |         | 10,172  |  |       |         | 10,741  |  |   |         | 42,023  | 
|                                                                        
|                                                                         |                                                    |       | 153,469 |         |        |   | 196,031 |         |  |   | 221,616 |         |  |       | 225,328 |         |  |   | 796,444 |        
|Margin                                                                   |                                                    |       | 32,893  |         |        |   | 40,183  |         |  |   | 44,472  |         |  |       | 39,831  |         |  |   | 157,379 |        
|Other costs                                                              |                                                    |       |         |         |        |   |         |         |  |   |         |         |  |       |         |         |  |   |         |        
|                                                                         | Selling and administrative expense                 |       |         | 15,541  |        |   |         | 17,092  |  |   |         | 17,896  |  |       |         | 20,389  |  |   |         | 70,918  | 
|                                                                         | Interest and foreign exchange                      |       |         | 4,573   |        |   |         | 7,180   |  |   |         | 6,149   |  |       |         | 7,494   |  |   |         | 25,396  | 
|                                                                        
|                                                                         |                                                    |       | 20,114  |         |        |   | 24,272  |         |  |   | 24,045  |         |  |       | 27,883  |         |  |   | 96,314  |        
|Earnings before income tax and equity in unconsolidated
    subsidiaries |                                                    |       | 12,779  |         |        |   | 15,911  |         |  |   | 20,427  |         |  |       | 11,948  |         |  |   | 61,065  |        
|Income tax benefit (expense)                                             |                                                    |       | (4,934  | )       |        |   | (7,466  | )       |  |   | (9,866  | )       |  |       | 568     |         |  |   | (21,698 | )      
|Equity in (loss) earnings of unconsolidated subsidiaries                 |                                                    |       | 172     |         |        |   | 118     |         |  |   | 119     |         |  |       | (240    | )       |  |   | 169     |        
|                                                                        
|                                                                         | Earnings from continuing operations                |       |         | 8,017   |        |   |         | 8,563   |  |   |         | 10,680  |  |       |         | 12,276  |  |   |         | 39,536  | 
|                                                                         | Earning from discontinuing operations (net of tax) |       |         |        |        |   |         |        |  |   |         |        |  |       |         | 62      |  |   |         | 62      | 
|                                                                        
|Net earnings                                                             |                                                    | $     | 8,017   |         |        | $ | 8,563   |         |  | $ | 10,680  |         |  | $     | 12,338  |         |  | $ | 39,598  |        
|                                                                        
|Basic earnings per common share:                                         |                                                    |       |         |         |        |   |         |         |  |   |         |         |  |       |         |         |  |   |         |        
|Continuing operations                                                    |                                                    | $     | .52     |         |        | $ | .55     |         |  | $ | .67     |         |  | $     | .77     |         |  | $ | 2.51    |        
|Discontinued operations                                                  |                                                    |       |        |         |        |   |        |         |  |   |        |         |  |       |        |         |  |   |        |        
|                                                                        
|                                                                         |                                                    | $     | .52     |         |        | $ | .55     |         |  | $ | .67     |         |  | $     | .77     |         |  | $ | 2.51    |        
|                                                                        
|Diluted earnings per common
    share:                                   |                                                    |       |         |         |        |   |         |         |  |   |         |         |  |       |         |         |  |   |         |        
|Continuing operations                                                    |                                                    | $     | .51     |         |        | $ | .54     |         |  | $ | .67     |         |  | $     | .76     |         |  | $ | 2.48    |        
|Discontinued operations                                                  |                                                    |       |        |         |        |   |        |         |  |   |        |         |  |       |        |         |  |   |        |        
|                                                                        
|                                                                         |                                                    | $     | .51     |         |        | $ | .54     |         |  | $ | .67     |         |  | $     | .76     |         |  | $ | 2.48    |        
|                                                                        





The Greenbrier Companies 2006
Annual
Report                                         57




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##### Table of Contents



Quarterly Results of Operations
(Unaudited)




|                                                                         |                                    |       |         |         |        |   |         |         |  |   |         |         |  |       |         |         |  |   |           |         | 
|------------------------------------------------------------------------ | ---------------------------------- | ----- | ------- | ------- | ------ | - | ------- | ------- |  | - | ------- | ------- |  | ----- | ------- | ------- |  | - | --------- | ------- | 
|(In thousands, except per share amounts)                                 |                                    | First |         |         | Second |   |         | Third   |  |   | Fourth  |         |  | Total |        
|                                                                         |                                   
|2005                                                                     |                                    |       |         |         |        |   |         |         |  |   |         |         |  |       |         |         |  |   |           |        
|Revenue                                                                  |                                    |       |         |         |        |   |         |         |  |   |         |         |  |       |         |         |  |   |           |        
|                                                                         | Manufacturing                      |       | $       | 200,397 |        |   | $       | 233,808 |  |   | $       | 266,090 |  |       | $       | 240,866 |  |   | $         | 941,161 | 
|                                                                         | Leasing & services                 |       |         | 17,651  |        |   |         | 21,105  |  |   |         | 19,944  |  |       |         | 24,361  |  |   |           | 83,061  | 
|                                                                        
|                                                                         |                                    |       | 218,048 |         |        |   | 254,913 |         |  |   | 286,034 |         |  |       | 265,227 |         |  |   | 1,024,222 |        
|Cost of revenue                                                          |                                    |       |         |         |        |   |         |         |  |   |         |         |  |       |         |         |  |   |           |        
|                                                                         | Manufacturing                      |       |         | 182,862 |        |   |         | 217,796 |  |   |         | 241,491 |  |       |         | 215,801 |  |   |           | 857,950 | 
|                                                                         | Leasing & services                 |       |         | 10,380  |        |   |         | 10,570  |  |   |         | 9,561   |  |       |         | 10,588  |  |   |           | 41,099  | 
|                                                                        
|                                                                         |                                    |       | 193,242 |         |        |   | 228,366 |         |  |   | 251,052 |         |  |       | 226,389 |         |  |   | 899,049   |        
|Margin                                                                   |                                    |       | 24,806  |         |        |   | 26,547  |         |  |   | 34,982  |         |  |       | 38,838  |         |  |   | 125,173   |        
|Other costs                                                              |                                    |       |         |         |        |   |         |         |  |   |         |         |  |       |         |         |  |   |           |        
|                                                                         | Selling and administrative expense |       |         | 12,072  |        |   |         | 14,044  |  |   |         | 15,276  |  |       |         | 16,033  |  |   |           | 57,425  | 
|                                                                         | Interest and foreign exchange      |       |         | 3,059   |        |   |         | 4,295   |  |   |         | 2,285   |  |       |         | 5,196   |  |   |           | 14,835  | 
|                                                                         | Special charges                    |       |         |        |        |   |         |        |  |   |         | 2,913   |  |       |         |        |  |   |           | 2,913   | 
|                                                                        
|                                                                         |                                    |       | 15,131  |         |        |   | 18,339  |         |  |   | 20,474  |         |  |       | 21,229  |         |  |   | 75,173    |        
|Earnings before income tax and equity in unconsolidated
    subsidiaries |                                    |       | 9,675   |         |        |   | 8,208   |         |  |   | 14,508  |         |  |       | 17,609  |         |  |   | 50,000    |        
|Income tax expense                                                       |                                    |       | (3,554  | )       |        |   | (3,397  | )       |  |   | (5,881  | )       |  |       | (7,079  | )       |  |   | (19,911   | )      
|Equity in (loss) earnings of unconsolidated subsidiaries                 |                                    |       | (731    | )       |        |   | (9      | )       |  |   | 417     |         |  |       | 56      |         |  |   | (267      | )      
|                                                                        
|Net earnings                                                             |                                    | $     | 5,390   |         |        | $ | 4,802   |         |  | $ | 9,044   |         |  | $     | 10,586  |         |  | $ | 29,822    |        
|                                                                        
|Basic earnings per common
    share:                                     |                                    | $     | .36     |         |        | $ | .32     |         |  | $ | .60     |         |  | $     | .71     |         |  | $ | 1.99      |        
|Diluted earnings per common
    share:                                   |                                    | $     | .35     |         |        | $ | .31     |         |  | $ | .58     |         |  | $     | .68     |         |  | $ | 1.92      |        





58                                        The
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##### Table of Contents



Report of Independent Registered
Public Accounting Firm


Board of Directors and Stockholders


The Greenbrier Companies, Inc.








Internal Control Integrated
Framework











Item 9. 
 CHANGES IN AND DISAGREEMENTS 
 WITH ACCOUNTANTS ON ACCOUNTING 
 AND FINANCIAL DISCLOSURE








The Greenbrier Companies 2006
Annual
Report                                         59




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##### Table of Contents






Item 9a. 
 CONTROLS AND PROCEDURES


Evaluation of Disclosure Controls and Procedures


13a-15(b)


Changes In Internal Controls




Managements Report on
Internal Control over Financial Reporting




Internal Control
Integrated Framework




Inherent Limitations on Effectiveness of Controls








60                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents



Report of Independent Registered
Public Accounting Firm


Board of Directors and Stockholders


The Greenbrier Companies, Inc.


Internal Control Integrated Framework






Internal
Control Integrated Framework Internal Control Integrated Framework















The Greenbrier Companies 2006
Annual
Report                                         61




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##### Table of Contents






PART III





ITEM 10. 
 DIRECTORS AND EXECUTIVE 
 OFFICERS OF THE REGISTRANT







ITEM 11. 
 EXECUTIVE COMPENSATION







ITEM 12. 
 SECURITY OWNERSHIP OF CERTAIN 
 BENEFICIAL OWNERS AND 
 MANAGEMENT AND RELATED 
 STOCKHOLDER MATTERS







ITEM 13.         CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS







ITEM 14.         PRINCIPAL
ACCOUNTANTS FEES AND SERVICES








62                                        The
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##### Table of Contents






PART IV





Item 15.       EXHIBITS,
FINANCIAL STATEMENT SCHEDULES










|  |                                                                                                                                                                                                                                                                                                                                                    
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | All other schedules have been omitted because they are
    inapplicable, not required or because the information is given
    in the Consolidated Financial Statements or notes thereto. This
    supplemental schedule should be read in conjunction with the
    Consolidated Financial Statements and notes thereto included in
    this report.



| |               |                                                                                                         
| | ------------- | --------------------------------------------------------------------------------------------------------
| | (a)       (3) | The following exhibits are filed herewith and this list is
    intended to constitute the exhibit index:

| |    |    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -- | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 3  | .1 |  | Registrants Articles of Incorporation is incorporated
    herein by reference to Exhibit 3.1 to the Registrants
    Form 10-Q filed April 5, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | 3  | .2 |  | Articles of Merger amending the Registrants Articles of
    Incorporation, is incorporated herein by reference to
    Exhibit 3.2 to the Registrants Form 10-Q filed
    April 5, 2006.                                                                                                                                                                                                                                                                                                                                                                                
|
| | 3  | .3 |  | Registrants Bylaws, as amended January 11, 2006, are
    incorporated herein by reference to Exhibit 3.3 to the
    Registrants Form 10-Q filed April 5, 2006.                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | 4  | .1 |  | Indenture between the Registrant, Autostack Corporation,
    Greenbrier-Concarril, LLC, Greenbrier Leasing Corporation,
    Greenbrier Leasing Limited Partner, LLC, Greenbrier Management
    Services, LLC, Greenbrier Leasing, L.P., Greenbrier Railcar,
    Inc., Gunderson, Inc., Gunderson Marine, Inc., Gunderson Rail
    Services, Inc., Gunderson Specialty Products, LLC and
    U.S. Bank National Association as Trustee dated
    May 11, 2005, is incorporated herein by reference to
    Exhibit 4.1 to the Registrants Form 8-K filed
    May 13, 2005.
|
| | 4  | .2 |  | Indenture between the Registrant, the Guarantors named therein
    and U.S. Bank National Association as Trustee dated
    May 22, 2006, is incorporated herein by reference to
    Exhibit 4.1 to the Registrants Form 8-K filed
    May 25, 2006.                                                                                                                                                                                                                                                                                                                     
|
| | 4  | .3 |  | Rights Agreement, dated as of July 13, 2004, between the
    Registrant and EquiServe Trust Registrant, N.A., as Rights
    Agent, is incorporated herein by reference to Exhibit 4.1
    to the Registrants Registration Statement on Form 8-A
    filed September 16, 2004.                                                                                                                                                                                                                                                                                           
|
| | 4  | .4 |  | Amendment No. 1 to the Rights Agreement, dated as of
    July 13, 2004, is incorporated herein by reference to
    Exhibit 4.2 to the Registrants Form 8-K filed
    November 15, 2004.                                                                                                                                                                                                                                                                                                                                                                                 
|
| | 4  | .5 |  | Amendment No. 2 to the Rights Agreement, dated as of
    July 13, 2004, incorporated herein by reference to
    Exhibit 4.3 to the Registrants Form 8-K filed
    February 9, 2005.                                                                                                                                                                                                                                                                                                                                                                                     
|
| | 10 | .1 |  | Registration Rights Agreement among the Registrant and Banc of
    America Securities LLC and Bear, Stearns & Co. Inc.,
    dated May 11, 2005, is incorporated herein by reference to
    Exhibit 10.1 to the Registrants Form 8-K filed
    May 13, 2005.                                                                                                                                                                                                                                                                                                             
|
| | 10 | .2 |  | Termination Agreement entered into November 1, 2005 between
    the Registrant and William A. Furman and each of George L.
    Chelius and Eric Epperson as Executor of the Will and Estate of
    Alan James and as Trustee, is incorporated herein by reference
    to Exhibit 10.1 to the Registrants Form 8-K
    filed November 10, 2005.                                                                                                                                                                                                                          
|
| | 10 | .3 |  | Purchase Agreement among the Registrant and Banc of America
    Securities LLC and Bear, Stearns & Co. Inc., as initial
    purchasers, dated November 16, 2005, is incorporated herein
    by reference to Exhibit 10.1 to the Registrants
    Form 8-K filed December 1, 2005.                                                                                                                                                                                                                                                                                        
|
| | 10 | .4 |  | Registration Rights Agreement among the Registrant and Banc of
    America LLC and Bear, Stearns & Co. Inc., dated
    November 21, 2005, is incorporated herein by reference to
    Exhibit 10.2 to the Registrants Form 8-K filed
    December 1, 2005.                                                                                                                                                                                                                                                                                                               





The Greenbrier Companies 2006
Annual
Report                                         63




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##### Table of Contents



EXHIBITS, FINANCIAL STATEMENT
SCHEDULES (continued)


| |    |      |  |                                                                                                                                                                                                                                                                                                                                                                    
| | -- | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 10 | .5*  |  | Employment Agreement dated April 7, 2006 between
    Mr. Mark Rittenbaum and Registrant, is incorporated herein
    by reference to Exhibit 10.1 to the Registrants Form
    8 K filed April 13, 2006.                                                                                                                                                            
|
| | 10 | .5*  |  | Employment Agreement between the Registrant and Mr. William
    A. Furman dated April 20, 2005, is incorporated herein by
    reference to Exhibit 10.1 to the Registrants
    Form 8-K filed April 20, 2005.                                                                                                                                                     
|
| | 10 | .6*  |  | Amendment to Employment Agreement between Mr. William A.
    Furman and Registrant dated May 11, 2006, is incorporated
    herein by reference to Exhibit 10.1 to the
    Registrants Form 8-K filed May 12, 2006.                                                                                                                                                
|
| | 10 | .7*  |  | Employment Agreement dated May 11, 2006 between Robin
    Bisson and Registrant, is incorporated herein by reference to
    Exhibit 10.2 to the Registrants Form 8-K filed
    May 12, 2006.                                                                                                                                                                      
|
| | 10 | .8   |  | Purchase Agreement among the Registrant and Bear,
    Stearns & Co. Inc. and Banc of America Securities LLC,
    as initial purchasers, and the guaranteeing subsidiaries named
    therein, dated May 17, 2006, is incorporated herein by
    reference to Exhibit 10.1 to the Registrants
    Form 8-K filed May 18, 2006.                                      
|
| | 10 | .9   |  | Registration Rights Agreement among the Registrant, the
    Guarantors named therein, Bear, Stearns & Co. Inc. and
    Banc of America Securities LLC, dated May 22, 2006, is
    incorporated herein by reference to Exhibit 10.1 to the
    Registrants Form 8-K filed May 25, 2006.                                                                            
|
| | 10 | .10* |  | Greenbrier Leasing Corporations Manager Owned Target
    Benefit Plan dated as of January 1, 1996 is incorporated
    herein by reference to Exhibit 10.35 to the
    Registrants Quarterly Report on Form 10-Q for the
    quarter ended May 31, 1997.                                                                                                          
|
| | 10 | .11* |  | James-Furman Supplemental 1994 Stock Option Plan is incorporated
    herein by reference to Exhibit 10.35 to the
    Registrants Annual Report on Form 10-K for the year
    ended August 31, 1994.                                                                                                                                                               
|
| | 10 | .12  |  | Form of Agreement concerning Indemnification and Related Matters
    (Directors) between Registrant and its directors.                                                                                                                                                                                                                                             
|
| | 10 | .13  |  | Railcar Management Agreement between Greenbrier Leasing
    Corporation and James-Furman & Registrant, dated as of
    December 31, 1989 is incorporated herein by reference to
    Exhibit 10.9 to the Registrants Registration
    Statement No. 33-78852, dated July 11, 1994.                                                                                 
|
| | 10 | .14  |  | Form of Amendment No. 1 to Railcar Management Agreement
    between Greenbrier Leasing Corporation and
    James-Furman & Registrant dated as of July 1, 1994
    is incorporated herein by reference to Exhibit 10.11 to the
    Registrants Registration Statement No. 33-78852,
    dated July 11, 1994.                                                       
|
| | 10 | .15  |  | Railcar Maintenance Agreement between Greenbrier Leasing
    Corporation and James-Furman & Registrant, dated as of
    December 31, 1989 is incorporated herein by reference to
    Exhibit 10.10 to the Registrants Registration
    Statement No. 33-78852, dated July 11, 1994.                                                                               
|
| | 10 | .16  |  | Form of Amendment No. 1 to Railcar Maintenance Agreement
    between Greenbrier Leasing Corporation and
    James-Furman & Registrant, dated as of July 1,
    1994 is incorporated herein by reference to Exhibit 10.12
    to the Registrants Registration Statement
    No. 33-78852, dated July 11, 1994.                                                     
|
| | 10 | .17  |  | Lease of Land and Improvements dated as of July 23, 1992
    between the Atchison, Topeka and Santa Fe Railway
    Registrant and Gunderson Southwest, Inc. is incorporated herein
    by reference to Exhibit 10.4 to the Registrants
    Registration Statement No. 33-78852, dated July 11,
    1994.                                                          
|
| | 10 | .18  |  | Re-marketing Agreement dated as of November 19, 1987 among
    Southern Pacific Transportation Registrant, St. Louis
    Southwestern Railway Registrant, Greenbrier Leasing Corporation
    and Greenbrier Railcar, Inc. is incorporated herein by reference
    to Exhibit 10.5 to the Registrants Registration
    Statement No. 33-78852, dated July 11, 1994.





64                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents



EXHIBITS, FINANCIAL STATEMENT
SCHEDULES (continued)


| |    |      |  |                                                                                                                                                                                                                                                                                                                                                                                                                   
| | -- | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 10 | .19  |  | Amendment to Re-marketing Agreement among Southern Pacific
    Transportation Registrant, St. Louis Southwestern Railway
    Registrant, Greenbrier Leasing Corporation and Greenbrier
    Railcar, Inc. dated as of November 15, 1988 is incorporated
    herein by reference to Exhibit 10.6 to the
    Registrants Registration Statement No. 33-78852,
    dated July 11, 1994.                              
|
| | 10 | .20  |  | Amendment No. 2 to Re-marketing Agreement among Southern
    Pacific Transportation Registrant, St. Louis Southwestern
    Railway Registrant, Greenbrier Leasing Corporation and
    Greenbrier Railcar, Inc. dated as of November 15, 1988 is
    incorporated herein by reference to Exhibit 10.7 to the
    Registrants Registration Statement No. 33-78852,
    dated July 11, 1994.                        
|
| | 10 | .21  |  | Amendment No. 3 to Re-marketing Agreement dated
    November 19, 1987 among Southern Pacific Transportation
    Registrant, St. Louis Southwestern Railway Registrant,
    Greenbrier Leasing Corporation and Greenbrier Railcar, Inc.
    dated as of March 5, 1991 is incorporated herein by
    reference to Exhibit 10.8 to the Registrants
    Registration Statement No. 33-78852, dated July 11,
    1994.
|
| | 10 | .22  |  | First amendment dated September 26, 1994 to the Lease of
    Land and Improvements dated as of July 23, 1992 between The
    Atchison, Topeka and Santa Fe Railway Registrant and
    Gunderson Southwest, Inc. is incorporated herein by reference to
    Exhibit 10.24 to the Registrants Quarterly Report on
    Form 10-Q for the quarter ended November 30, 1994.                                           
|
| | 10 | .23* |  | Stock Incentive Plan2000, dated as of April 6, 1999
    is incorporated herein by reference to Exhibit 10.23 to the
    Registrants Annual Report on Form 10-K for the year
    ended August 31, 1999.                                                                                                                                                                                                          
|
| | 10 | .24* |  | Amendment No. 1 to the Stock Incentive Plan2000, is
    incorporated herein by reference to Exhibit 10.1 to the
    Registrants Form 10-Q for the quarter ended
    February 28, 2001.                                                                                                                                                                                                                          
|
| | 10 | .25* |  | Amendment No. 2 to the Stock Incentive Plan2000, is
    incorporated herein by reference to Exhibit 10.2 to the
    Registrants Form 10-Q for the quarter ended
    February 28, 2001.                                                                                                                                                                                                                          
|
| | 10 | .26* |  | Amendment No 3 to the Stock Incentive Plan2000, is
    incorporated herein by reference to Exhibit 10.2 to the
    Registrants Form 10-Q for the quarter ended
    February 28, 2001.                                                                                                                                                                                                                           
|
| | 10 | .27  |  | The Greenbrier Companies Code of Business Conduct and Ethics is
    incorporated herein by reference to Exhibit 10.26 to the
    Registrants Annual Report on Form 10-K for the year
    ended August 31, 2003.                                                                                                                                                                                                  
|
| | 10 | .28* |  | Employment Agreement dated February 15, 2004 between James
    T. Sharp and Registrant, is incorporated herein by reference to
    Exhibit 10.27 to the Registrants Annual Report on
    Form 10-K for the year ended August 31, 2004.                                                                                                                                                                           
|
| | 10 | .29* |  | Form of Employee Restricted Share Agreement related to the 2005
    Stock Incentive Plan, is incorporated herein by reference to
    Exhibit 10.2 to the Registrants Form 8-K filed
    August 5, 2005.                                                                                                                                                                                                          
|
| | 10 | .30* |  | Form of Change of Control Agreement, is incorporated herein by
    reference to Exhibit 10.3 to the Registrants
    Form 8-K filed August 5, 2005.                                                                                                                                                                                                                                                               
|
| | 10 | .31* |  | 2004 Employee Stock Purchase Plan is incorporated herein by
    reference to Appendix B to the Registrants Proxy
    Statement on Schedule 14A filed November 25, 2003.                                                                                                                                                                                                                                          
|
| | 10 | .32* |  | 2005 Stock Incentive Plan is incorporated herein by reference to
    Appendix C to the Registrants Proxy Statement on
    Schedule 14A filed November 24, 2004.                                                                                                                                                                                                                                                  
|
| | 10 | .33* |  | Amendment No. 1 to the 2005 Stock Incentive Plan dated
    June 30, 2005 is incorporated herein by reference to
    Exhibit 10.36 to the Registrants Annual Report on
    Form 10-K for the year ended August 31, 2005.                                                                                                                                                                                          
|
| | 10 | .34  |  | Stock purchase agreement among Gunderson Rail Services LLC and
    Meridian Rail Holdings Corp. dated October 15, 2006.                                                                                                                                                                                                                                                                                           
|
| | 12 | .0   |  | Calculation of ratio of earnings to fixed changes.                                                                                                                                                                                                                                                                                                                                                                
|
| | 21 | .1   |  | List of the subsidiaries of the Registrant.                                                                                                                                                                                                                                                                                                                                                                       
|
| | 23 | .    |  | Consent of Deloitte & Touche LLP, independent auditors.                                                                                                                                                                                                                                                                                                                                                           





The Greenbrier Companies 2006
Annual
Report                                         65




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##### Table of Contents



EXHIBITS, FINANCIAL STATEMENT
SCHEDULES (continued)


| |    |       |  |                                                                                                                               
| | -- | ----- |  | ------------------------------------------------------------------------------------------------------------------------------
|
| | 31 | .1(a) |  | Certification pursuant to Rule 13(a)-14(a)                                                                                    
|
| | 31 | .2(b) |  | Certification pursuant to Rule 13(a)-14(a)                                                                                    
|
| | 32 | .1(c) |  | Certification pursuant to 18 U.S.C. Section 1350 as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.
|
| | 32 | .2(d) |  | Certification pursuant to 18 U.S.C. Section 1350 as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.



|  |                                                         
|- | --------------------------------------------------------
|* | Management contract or compensatory plan or arrangement.

CERTIFICATIONS


10-K






66                                        The
Greenbrier Companies 2006 Annual Report




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##### Table of Contents






SIGNATURES




THE GREENBRIER COMPANIES,
INC.




| |     |                      
| | --- | ---------------------
| | By: | /s/ William A. Furman

| |                                      
| | -------------------------------------
| |                                      
| | William A. Furman                    
| | President and Chief Executive Officer



|                                                                                                                                                |  |  |  |                 
|----------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | ----------------
|Signature                                                                                                                                       |  |  |  | Date            
|                                                                                                                                               
|/s/ Benjamin R. WhiteleyBenjamin
    R. Whiteley, Chairman of the Board                                                                         |  |  |  | October 31, 2006
|                                                                                                                                               
|/s/ William A. FurmanWilliam
    A. Furman, President and Chief Executive Officer, Director                                                     |  |  |  | October 31, 2006
|                                                                                                                                               
|/s/ Victor G. AtiyehVictor
    G. Atiyeh, Director                                                                                              |  |  |  | October 31, 2006
|                                                                                                                                               
|/s/ Duane McDougallDuane
    McDougall, Director                                                                                                |  |  |  | October 31, 2006
|                                                                                                                                               
|/s/ Daniel ONealA.
    Daniel ONeal, Director                                                                                                 |  |  |  | October 31, 2006
|                                                                                                                                               
|/s/ Charles J. SwindellsCharles
    J. Swindells, Director                                                                                      |  |  |  | October 31, 2006
|                                                                                                                                               
|/s/ C. Bruce WardC.
    Bruce Ward, Director                                                                                                    |  |  |  | October 31, 2006
|                                                                                                                                               
|/s/ Donald A. WashburnDonald
    A. Washburn, Director                                                                                          |  |  |  | October 31, 2006
|                                                                                                                                               
|/s/ Joseph K. WilstedJoseph
    K. Wilsted, Sr. Vice President and
    Chief Financial Officer (Principal Financial
    and Accounting Officer) |  |  |  | October 31, 2006





The Greenbrier Companies 2006
Annual
Report                                         67




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##### Table of Contents



SIGNATURES
  GREENBRIER-CONCARRIL, LLC
 Dated: October 31, 2006
    
    By:
    
    /s/ Joseph K. WilstedJoseph K. WilstedVice President
 
 Signature
    
    Title/s/ William A. Furman
    
    Chairman of the Board of DirectorsWilliam A. Furman
    
    (Principal Executive Officer)/s/ Joseph K. Wilsted
    
    Vice PresidentJoseph K. Wilsted
    
    (Principal Financial and Accounting Officer)




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##### Table of Contents



SIGNATURES
  GREENBRIER LEASING LIMITED PARTNER, LLC
 Dated: October 31, 2006
    
    By: Greenbrier Leasing Company LLCSole Member and ManagerBy:
    
    /s/ Joseph K. WilstedJoseph K. WilstedVice President
 
 Signature
    
    Title/s/ William A. Furman
    
    Principal Executive OfficerWilliam A. Furman/s/ Joseph K. Wilsted
    
    Principal Financial and Accounting OfficerJoseph K. Wilsted




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##### Table of Contents



SIGNATURES
  GREENBRIER LEASING COMPANY, LLC
 Dated: October 31, 2006
    
    By:
    
    /s/ Joseph K. WilstedJoseph K. WilstedVice President
  Signature
    
    Title/s/ William A. Furman
    
    Chief Executive Officer and ManagerWilliam A. Furman
    
    (Principal Executive Officer)/s/ Joseph K. Wilsted
    
    Vice PresidentJoseph K. Wilsted
    
    (Principal Financial and Accounting Officer)




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##### Table of Contents



SIGNATURES
  GREENBRIER LEASING, L.P.
 Dated: October 31, 2006
    
    By: Greenbrier Management Services LLCGeneral PartnerBy: Greenbrier Leasing Company LLCSole Member and ManagerBy:
    
    /s/ Joseph K. WilstedJoseph K. WilstedVice President
 
 Signature
    
    Title/s/ William A. Furman
    
    Principal Executive OfficerWilliam A. Furman/s/ Joseph K. Wilsted
    
    Principal Financial and Accounting OfficerJoseph K. Wilsted




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##### Table of Contents



SIGNATURES
  GREENBRIER MANAGEMENT SERVICES LLC
 Dated: October 31, 2006
    
    By: Greenbrier Leasing Company LLCSole Member and ManagerBy:
    
    /s/ Joseph K. WilstedJoseph K. WilstedVice President
 
 Signature
    
    Title/s/ William A. Furman
    
    Principal Executive OfficerWilliam A. Furman/s/ Joseph K. Wilsted
    
    Principal Financial and Accounting OfficerJoseph K. Wilsted




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##### Table of Contents



SIGNATURES
  GREENBRIER RAILCAR LLC
 Dated: October 31, 2006
    
    By:
    
    /s/ Joseph K. WilstedJoseph K. WilstedVice President
 
 Signature
    
    Title/s/ William A. Furman
    
    ManagerWilliam A. Furman
    
    (Principal Executive Officer)/s/ Joseph K. Wilsted
    
    Vice PresidentJoseph K. Wilsted
    
    (Principal Financial and Accounting Officer)




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##### Table of Contents



SIGNATURES
  GUNDERSON LLC
 Dated: October 31, 2006
    
    By:
    
    /s/ Joseph K. WilstedJoseph K. WilstedVice President
 
 Signature
    
    Title/s/ William A. Furman
    
    ManagerWilliam A. Furman
    
    (Principal Executive Officer)/s/ Joseph K. Wilsted
    
    Vice PresidentJoseph K. Wilsted
    
    (Principal Financial and Accounting Officer)




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##### Table of Contents



SIGNATURES
  GUNDERSON MARINE LLC
 Dated: October 31, 2006
    
    By:
    
    /s/ Joseph K. WilstedJoseph K. WilstedVice President
 
 Signature
    
    Title/s/ William A. Furman
    
    ManagerWilliam A. Furman
    
    (Principal Executive Officer)/s/ Joseph K. Wilsted
    
    Vice PresidentJoseph K. Wilsted
    
    (Principal Financial and Accounting Officer)




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##### Table of Contents



SIGNATURES
  GUNDERSON RAIL SERVICES LLC
 Dated: October 31, 2006
    
    By:
    
    /s/ Joseph K. WilstedJoseph K. WilstedVice President
 
 Signature
    
    Title/s/ William A. Furman
    
    ManagerWilliam A. Furman
    
    (Principal Executive Officer)/s/ Joseph K. Wilsted
    
    Vice PresidentJoseph K. Wilsted
    
    (Principal Financial and Accounting Officer)




---



##### Table of Contents



SIGNATURES
  GUNDERSON SPECIALTY PRODUCTS LLC
 Dated: October 31, 2006
    
    By: Gunderson LLC, Sole Member and Sole ManagerBy:
    
    /s/ Joseph K. WilstedJoseph K. WilstedVice President
 
 Signature
    
    Title/s/ William A. Furman
    
    Principal Executive OfficerWilliam A. Furman/s/ Joseph K. Wilsted
    
    Principal Financial and Accounting OfficerJoseph K. Wilsted




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##### Table of Contents



SIGNATURES
  AUTOSTACK COMPANY LLC
 Dated: October 31, 2006
    
    By:
    
    /s/ Joseph K. WilstedJoseph K. WilstedVice President
 
 Signature
    
    Title/s/ William A. Furman
    
    Chief Executive Officer and ManagerWilliam A. Furman
    
    (Principal Executive Officer)/s/ Joseph K. Wilsted
    
    Vice PresidentJoseph K. Wilsted
    
    (Principal Financial and Accounting Officer)