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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETSGoodwill and indefinite lived intangible assets are reviewed annually during the fourth quarter for impairment. For 2022, the Company elected to proceed directly to the quantitative impairment test for all reporting units with goodwill. The discounted cash flow method and the market approach were used to estimate the fair value of each reporting unit using a weighting of 75% and 25%, respectively. The discounted cash flow model requires several assumptions including future sales growth, EBIT (earnings before interest and taxes) margins, capital expenditures, a discount rate and a terminal revenue growth rate (the revenue growth rate for the period beyond the years forecasted by the reporting units) for each reporting unit. The market approach requires several assumptions including EBITDA (earnings before interest, taxes, depreciation and amortization) multiples for comparable companies that operate in the same markets as the Company’s reporting units. For 2022, the discounted cash flow method was given more weight compared to the market approach due to variables between the operations of the guideline companies used in the analysis and Wabtec's operations, such as different reporting unit sizes, growth and business characteristics. However, both valuations resulted in a conclusion that the estimated fair value of all three of the Company's reporting units was in excess of their respective carrying value, which resulted in a conclusion that no impairment existed. Additionally, the Company proceeded directly to the quantitative impairment test for certain trade names with indefinite lives. The fair value of all material trade names subject to the quantitative impairment test exceeded its respective carrying value, resulting in a conclusion that no impairment existed. For trade names not subject to the quantitative testing, the Company elected to perform a qualitative trade name impairment assessment and determined from the qualitative assessment that it was not more likely than not that the estimated fair values of the trade names were less than their carrying values; therefore, no further analysis was required. In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a trade name is less than its carrying amount, the Company assessed relevant events and circumstances that may impact the fair value and the carrying amount of the trade name. The identification of relevant events and circumstances and how these may impact a trade name’s fair value or carrying amount involve significant judgments and assumptions. The judgment and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, Wabtec specific events, share price trends and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact. The change in the carrying amount of goodwill by segment is as follows:
In millions |  | Freight Segment |  | Transit Segment |  | Total
Balance at December 31, 2020 |  | $ | 6,872 |  |  | $ | 1,613 |  |  | $ | 8,485 |
Additions |  | 214 |  |  | 15 |  |  | 229 |
Foreign currency impact |  | (13) |  |  | (114) |  |  | (127) |
Balance at December 31, 2021 |  | $ | 7,073 |  |  | $ | 1,514 |  |  | $ | 8,587 |
Additions |  | 35 |  |  | — |  |  | 35 |
Foreign currency impact |  | (23) |  |  | (91) |  |  | (114) |
Balance at December 31, 2022 |  | $ | 7,085 |  |  | $ | 1,423 |  |  | $ | 8,508 |
As of December 31, 2022 and 2021, the Company’s trade names had a net carrying amount of $602 million and $635 million, respectively, and the Company believes these intangibles have indefinite lives, with the exception of the right to use the GE Transportation trade name, to which the Company has an original useful life of 5 years. Intangible assets of the Company, other than goodwill and trade names, consist of the following:
|  | December 31, 2022 |  | December 31, 2021
In millions |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Backlog |  | $ | 1,425 |  |  | $ | (415) |  |  | $ | 1,010 |  |  | $ | 1,423 |  |  | $ | (309) |  |  | $ | 1,114 |
Customer relationships |  | 1,274 |  |  | (362) |  |  | 912 |  |  | 1,310 |  |  | (331) |  |  | 979 |
Acquired technology |  | 1,273 |  |  | (395) |  |  | 878 |  |  | 1,311 |  |  | (334) |  |  | 977 |
Total |  | $ | 3,972 |  |  | $ | (1,172) |  |  | $ | 2,800 |  |  | $ | 4,044 |  |  | $ | (974) |  |  | $ | 3,070 |
The remaining weighted average useful lives of backlog, customer relationships and acquired technology were 9 years, 16 years and 9 years, respectively. The backlog intangible asset primarily consists of in-place long-term service agreements acquired by the Company in conjunction with the acquisition of GE Transportation. Amortization expense for intangible assets was $291 million, $287 million, and $282 million for the years ended December 31, 2022, 2021, and 2020, respectively. Estimated amortization expense for the five succeeding years is as follows (in millions):
2023 |  | $ | 292 |
2024 |  | $ | 282 |
2025 |  | $ | 266 |
2026 |  | $ | 261 |
2027 |  | $ | 257 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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