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SEGMENT INFORMATION
9 Months Ended
Sep. 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 September 30, 2022 is as follows:
In millionsFreight
Segment
Transit
Segment
Corporate
Activities and
Elimination
Total
Sales to external customers$1,531 $550 $— $2,081 
Intersegment sales/(elimination)13 7(20)— 
Total sales$1,544 $557 $(20)$2,081 
Income (loss) from operations$233 $53 $(25)$261 
Interest expense and other, net— — (44)(44)
Income (loss) before income taxes$233 $53 $(69)$217 
Segment financial information for the three months ended September 30, 2021 is as follows:
In millionsFreight
Segment
Transit
Segment
Corporate
Activities and
Elimination
Total
Sales to external customers$1,295 $612 $— $1,907 
Intersegment sales/(elimination)12(20)— 
Total sales$1,307 $620 $(20)$1,907 
Income (loss) from operations$195 $44 $(22)$217 
Interest expense and other, net— — (42)(42)
Income (loss) before income taxes$195 $44 $(64)$175 
Segment financial information for the nine months ended September 30, 2022 is as follows:
In millionsFreight
Segment
Transit
Segment
Corporate
Activities and
Elimination
Total
Sales to external customers$4,343 $1,713 $— $6,056 
Intersegment sales/(elimination)3824 (62)— 
Total sales$4,381 $1,737 $(62)$6,056 
Income (loss) from operations$655 $168 $(59)$764 
Interest expense and other, net— — (120)(120)
Income (loss) before income taxes$655 $168 $(179)$644 
Segment financial information for the nine months ended September 30, 2021 is as follows:
In millionsFreight
Segment
Transit
Segment
Corporate
Activities and
Elimination
Total
Sales to external customers$3,814 $1,935 $— $5,749 
Intersegment sales/(elimination)37 25 (62)— 
Total sales$3,851 $1,960 $(62)$5,749 
Income (loss) from operations$510 $159 $(57)$612 
Interest expense and other, net— — (110)(110)
Income (loss) before income taxes$510 $159 $(167)$502 
Sales to external customers by product line are as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
In millions2022202120222021
Freight Segment
Services$669 $583 $2,046 $1,767 
Equipment443 335 1,098 925 
Components232 222 695 649 
Digital Electronics187 155 504 473 
Total Freight Segment$1,531 $1,295 $4,343 $3,814 
Transit Segment
Original Equipment Manufacturer$264 $287 $815 $894 
Aftermarket286 325 898 1,041 
Total Transit Segment$550 $612 $1,713 $1,935