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SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION 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.
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. We refer to sales of both goods, such as spare parts and equipment upgrades, and related services, such as monitoring, maintenance and repairs, as sales in our Services product line.
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. It also refurbishes subway cars and provides heating, ventilation, and air conditioning equipment and doors for buses and subway cars. 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.
Segment financial information for the three months ended June 30, 2022 is as follows:
In millionsFreight
Segment
Transit
Segment
Corporate
Activities and
Elimination
Total
Sales to external customers$1,490 $558 $— $2,048 
Intersegment sales/(elimination)12 9(21)— 
Total sales$1,502 $567 $(21)$2,048 
Income (loss) from operations$233 $50 $(19)$264 
Interest expense and other, net— — (37)(37)
Income (loss) before income taxes$233 $50 $(56)$227 
Segment financial information for the three months ended June 30, 2021 is as follows:
In millionsFreight
Segment
Transit
Segment
Corporate
Activities and
Elimination
Total
Sales to external customers$1,336 $676 $— $2,012 
Intersegment sales/(elimination)12(19)— 
Total sales$1,348 $683 $(19)$2,012 
Income (loss) from operations$173 $45 $(15)$203 
Interest expense and other, net— — (34)(34)
Income (loss) before income taxes$173 $45 $(49)$169 
Segment financial information for the six months ended June 30, 2022 is as follows:
In millionsFreight
Segment
Transit
Segment
Corporate
Activities and
Elimination
Total
Sales to external customers$2,812 $1,163 $— $3,975 
Intersegment sales/(elimination)2517 (42)— 
Total sales$2,837 $1,180 $(42)$3,975 
Income (loss) from operations$422 $115 $(34)$503 
Interest expense and other, net— — (76)(76)
Income (loss) before income taxes$422 $115 $(110)$427 
Segment financial information for the six months ended June 30, 2021 is as follows:
In millionsFreight
Segment
Transit
Segment
Corporate
Activities and
Elimination
Total
Sales to external customers$2,519 $1,323 $— $3,842 
Intersegment sales/(elimination)24 17 (41)— 
Total sales$2,543 $1,340 $(41)$3,842 
Income (loss) from operations$315 $115 $(35)$395 
Interest expense and other, net— — (68)(68)
Income (loss) before income taxes$315 $115 $(103)$327 
Sales to external customers by product line are as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
In millions2022202120222021
Freight Segment
Services$711 $622 $1,377 $1,184 
Equipment381 328 655 590 
Components234 224 463 427 
Digital Electronics164 162 317 318 
Total Freight Segment$1,490 $1,336 $2,812 $2,519 
Transit Segment
Original Equipment Manufacturer$259 $320 $551 $607 
Aftermarket299 356 612 716 
Total Transit Segment$558 $676 $1,163 $1,323