Liquidity and Capital Resources Greenbrier's growth has been financed through cash generated from operations and borrowings from financial institutions. Cash utilization in the current year is primarily due to timing of railcar syndication activities and additions to the lease fleet. Advances under the lines of credit bear interest at rates that vary depending on the type of borrowing and certain defined ratios. Available borrowings under these lines are principally based upon defined levels of receivables, inventory and leased equipment. Greenbrier regularly sells assets from its lease fleet, some of which may have been purchased within the current year and included in capital expenditures.
Foreign operations give rise to market risks from changes in foreign currency exchange rates.
Greenbrier utilizes foreign currency forward exchange contracts with established financial institutions to hedge a portion of that risk. No provision has been made for credit loss due to counterparty non-performance. These contracts mature at various dates through October 2001. Interest rate swap agreements are utilized to reduce the impact of changes in interest rates on certain debt. Management expects existing funds and cash generated from operations, together with borrowings under existing credit facilities and long-term financing, to be sufficient to fund dividends, working capital needs and planned capital expenditures.