SEGMENT INFORMATION

Wabtec has two reportable segments—the Freight Segment and the Transit Segment. The key factors used to identify these reportable segments are the organization and alignment of the Company’s internal operations, the nature of the products and services, and customer type. The business segments are:

Freight Segment primarily manufactures and services components for new and existing freight cars and locomotives, builds new switcher locomotives, rebuilds freight locomotives, supplies railway electronics, positive train control equipment, signal design and engineering services, and provides related heat exchange and cooling systems. Customers include large, publicly traded railroads, leasing companies, manufacturers of original equipment such as locomotives and freight cars, and utilities.

Transit Segment primarily manufactures and services components for new and existing passenger transit vehicles, typically regional trains, high speed trains, subway cars, light-rail vehicles and buses, builds new commuter locomotives, refurbishes subway cars, provides heating, ventilation, and air conditioning equipment, and doors for buses and subways. Customers include public transit authorities and municipalities, leasing companies, and manufacturers of subway cars and buses around the world.

The Company evaluates its business segments’ operating results based on income from operations. Intersegment sales are accounted for at prices that are generally established by reference to similar transactions with unaffiliated customers. Corporate activities include general corporate expenses, elimination of intersegment transactions, interest income and expense and other unallocated charges. Since certain administrative and other operating expenses have not been allocated to business segments, the results in the following tables are not necessarily a measure computed in accordance with generally accepted accounting principles and may not be comparable to other companies.

Segment financial information for the three months ended March 31, 2018 is as follows:



In thousands	Freight Segment		Transit Segment		Corporate Activities and Elimination			Total
Sales to external customers	$	379,554	$	676,623	$	—		$	1,056,177
Intersegment sales/(elimination)	12,002		3,889		(15,891		)	—
Total sales	$	391,556	$	680,512	$	(15,891	)	$	1,056,177
Income (loss) from operations	$	69,623	$	68,083	$	(6,427	)	$	131,279
Interest expense and other, net	—		—		(17,698		)	(17,698		)
Income (loss) from operations before income taxes	$	69,623	$	68,083	$	(24,125	)	$	113,581

Segment financial information for the three months ended March 31, 2017 is as follows:



In thousands	Freight Segment		Transit Segment		Corporate Activities and Elimination			Total
Sales to external customers	$	347,946	$	568,088	$	—		$	916,034
Intersegment sales/(elimination)	9,087		5,686		(14,773		)	—
Total sales	$	357,033	$	573,774	$	(14,773	)	$	916,034
Income (loss) from operations	$	71,222	$	48,975	$	(5,685	)	$	114,512
Interest expense and other, net	—		—		(15,047		)	(15,047		)
Income (loss) from operations before income taxes	$	71,222	$	48,975	$	(20,732	)	$	99,465

Sales by product line are as follows:



	Three Months Ended March 31,
In thousands	2018		2017
Specialty Products & Electronics	$	386,548	$	315,067
Transit Products	274,265		258,419
Brake Products	215,618		180,459
Remanufacturing, Overhaul & Build	135,713		129,058
Other	44,033		33,031
Total sales	$	1,056,177	$	916,034