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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company 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. Initiatives to integrate GE Transportation operations into Wabtec including recent restructuring programs announced in late 2019 resulted in changes to the Company's organizational structure and the financial reporting utilized by the Company's chief operating decision maker to assess performance and allocate resources; as a result, certain asset groups were reorganized from the Freight Segment to the Transit Segment and vice versa. The change in the Company’s reportable segments was effective in the fourth quarter of 2019 and is reflected below in 2019 and through the retrospective revision of 2018 and 2017 segment information. The Company believes these changes better present Management's new view of the business. The Company’s business segments are: Freight Segment primarily builds new locomotives, manufactures and services components for new and existing freight cars and 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, 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. The changes to the asset groups comprising the Freight and Transit segments have been reflected through retrospective revision of prior period segment information.
Segment financial information for 2019 is as follows: |  |  |  |  |  |  |  |
|  |  |  |  |  | Corporate |  |
|  | Freight |  | Transit |  | Activities and |  |
In million |  | Segment |  | Segment |  | Elimination |  | Total
Sales to external customers |  | $ | 5,441.4 |  |  | $ | 2,758.6 |  |  | $ | — |  |  | $ | 8,200.0 |
Intersegment sales/(elimination) |  | 59.6 |  |  | 23.4 |  |  | (83.0) |  |  | — |
Total sales |  | $ | 5,501.0 |  |  | $ | 2,782.0 |  |  | $ | (83.0) |  |  | $ | 8,200.0 |
Income (loss) from operations |  | $ | 642.9 |  |  | $ | 214.4 |  |  | $ | (194.2) |  |  | $ | 663.1 |
Interest expense and other, net |  | — |  |  | — |  |  | (216.3) |  |  | (216.3) |
Income (loss) from operations before income taxes |  | $ | 642.9 |  |  | $ | 214.4 |  |  | $ | (410.5) |  |  | $ | 446.8 |
Depreciation and amortization |  | $ | 330.4 |  |  | $ | 62.2 |  |  | $ | 8.8 |  |  | $ | 401.4 |
Capital expenditures |  | 105.1 |  |  | 63.7 |  |  | 16.5 |  |  | 185.3 |
Segment assets |  | 14,450.9 |  |  | 6,026.0 |  |  | (1,532.7) |  |  | 18,944.2 |
Segment financial information for 2018 is as follows: |  |  |  |  |  |  |  |
|  |  |  |  |  | Corporate |  |
|  | Freight |  | Transit |  | Activities and |  |
In millions |  | Segment |  | Segment |  | Elimination |  | Total
Sales to external customers |  | $ | 1,766.4 |  |  |  | $ | 2,597.1 |  |  |  | $ | — |  |  |  | $ | 4,363.5 |
Intersegment sales/(elimination) |  | 52.8 |  |  |  | 11.3 |  |  |  | (64.1) |  |  |  | — |
Total sales |  | $ | 1,819.2 |  |  |  | $ | 2,608.4 |  |  |  | $ | (64.1) |  |  |  | $ | 4,363.5 |
Income (loss) from operations |  | $ | 334.3 |  |  |  | $ | 192.5 |  |  |  | $ | (53.4) |  |  |  | $ | 473.4 |
Interest expense and other, net |  | — |  |  |  | — |  |  |  | (105.8) |  |  |  | (105.8) |
Income (loss) from operations before income taxes |  | $ | 334.3 |  |  |  | $ | 192.5 |  |  |  | $ | (159.2) |  |  |  | $ | 367.6 |
Depreciation and amortization |  | $ | 41.6 |  |  |  | $ | 62.7 |  |  |  | $ | 5.0 |  |  |  | $ | 109.3 |
Capital expenditures |  | 24.6 |  |  |  | 61.6 |  |  |  | 7.1 |  |  |  | 93.3 |
Segment assets |  | 3,329.6 |  |  |  | 9,478.6 |  |  |  | (4,159.0) |  |  |  | 8,649.2 |
Segment financial information for 2017 is as follows: |  |  |  |  |  |  |  |
|  |  |  |  |  | Corporate |  |
|  | Freight |  | Transit |  | Activities and |  |
In millions |  | Segment |  | Segment |  | Elimination |  | Total
Sales to external customers |  | $ | 1,538.6 |  |  |  | $ | 2,343.1 |  |  |  | $ | — |  |  |  | $ | 3,881.7 |
Intersegment sales/(elimination) |  | 39.0 |  |  |  | 5.5 |  |  |  | (44.5) |  |  |  | — |
Total sales |  | $ | 1,577.6 |  |  |  | $ | 2,348.6 |  |  |  | $ | (44.5) |  |  |  | $ | 3,881.7 |
Income (loss) from operations |  | $ | 271.7 |  |  |  | $ | 177.2 |  |  |  | $ | (27.8) |  |  |  | $ | 421.1 |
Interest expense and other, net |  | — |  |  |  | — |  |  |  | (69.0) |  |  |  | (69.0) |
Income (loss) from operations before income taxes |  | $ | 271.7 |  |  |  | $ | 177.2 |  |  |  | $ | (96.8) |  |  |  | $ | 352.1 |
Depreciation and amortization |  | $ | 43.1 |  |  |  | $ | 58.0 |  |  |  | $ | 2.1 |  |  |  | $ | 103.2 |
Capital expenditures |  | 32.2 |  |  |  | 52.5 |  |  |  | 4.8 |  |  |  | 89.5 |
Segment assets |  | 3,104.9 |  |  |  | 7,885.3 |  |  |  | (4,410.2) |  |  |  | 6,580.0 |
The following geographic area data as of and for the years ended December 31, 2019, 2018 and 2017, respectively, includes net sales based on product shipment destination and long-lived assets, which consist of plant, property and equipment, net of depreciation, resident in their respective countries:
|  | Net Sales |  |  |  |  |  | Long-Lived Assets |  |  |  |
In millions |  | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
United States |  | $ | 3,381.0 |  |  |  | $ | 1,460.3 |  |  |  | $ | 1,323.8 |  |  |  | $ | 1,089.8 |  |  |  | $ | 204.3 |  |  |  | $ | 211.6 |
Canada |  | 733.3 |  |  |  | 279.0 |  |  |  | 279.0 |  |  |  | 13.2 |  |  |  | 5.3 |  |  |  | 5.8 |
India |  | 504.2 |  |  |  | 178.5 |  |  |  | 137.8 |  |  |  | 159.2 |  |  |  | 12.8 |  |  |  | 12.5 |
United Kingdom |  | 376.2 |  |  |  | 395.8 |  |  |  | 356.5 |  |  |  | 55.5 |  |  |  | 54.8 |  |  |  | 57.7 |
Mexico |  | 356.6 |  |  |  | 200.6 |  |  |  | 160.0 |  |  |  | 23.7 |  |  |  | 9.2 |  |  |  | 9.1 |
Germany |  | 340.0 |  |  |  | 314.7 |  |  |  | 208.8 |  |  |  | 77.7 |  |  |  | 75.5 |  |  |  | 71.7 |
Australia |  | 296.4 |  |  |  | 173.5 |  |  |  | 136.1 |  |  |  | 12.1 |  |  |  | 9.6 |  |  |  | 10.5 |
France |  | 294.3 |  |  |  | 247.8 |  |  |  | 237.5 |  |  |  | 58.9 |  |  |  | 56.7 |  |  |  | 57.8 |
China |  | 290.4 |  |  |  | 170.3 |  |  |  | 178.1 |  |  |  | 34.5 |  |  |  | 33.4 |  |  |  | 36.4 |
Other international |  | 1,627.6 |  |  | 943.0 |  |  | 864.1 |  |  | 131.2 |  |  | 102.2 |  |  | 100.9 |
Total |  | $ | 8,200.0 |  |  | $ | 4,363.5 |  |  | $ | 3,881.7 |  |  | $ | 1,655.8 |  |  | $ | 563.8 |  |  | $ | 574.0 |
Export sales from the Company’s United States operations were $905.2 million, $512.5 million and $448.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. Net sales by product line are as follows:
In millions |  | 2019 |  | 2018 |  | 2017
Freight Segment: |  |  |  |  |  |  |  |  |
Equipment |  | $ | 1,699.7 |  |  |  | $ | — |  |  |  | $ | — |
Components |  | 1,073.5 |  |  |  | 1,169.1 |  |  |  | 1,004.6 |
Digital Electronics |  | 677.1 |  |  |  | 474.1 |  |  |  | 400.8 |
Services |  | 1,991.1 |  |  |  | 123.2 |  |  |  | 133.2 |
Total Freight Segment sales |  | $ | 5,441.4 |  |  |  | $ | 1,766.4 |  |  |  | $ | 1,538.6 |
Transit Segment: |  |  |  |  |  |  |  |  |  |  |
Original Equipment Manufacturer |  | 1,286.6 |  |  |  | 1,194.0 |  |  |  | 1,050.0 |
Aftermarket |  | 1,472.0 |  |  |  | 1,403.1 |  |  |  | 1,293.1 |
Total Transit Segment sales |  | $ | 2,758.6 |  |  |  | $ | 2,597.1 |  |  |  | $ | 2,343.1 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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