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SEGMENT INFORMATION
3 Months Ended
Mar. 31, 2023
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. The Company's business segments are:
Freight Segment builds, rebuilds, upgrades, and overhauls locomotives, services locomotives and freight cars, and provides a range of component and digital solutions for customers in the freight and transit rail, mining, and marine industries. Wabtec manufactures and services components for new and existing freight cars and locomotives, supplies railway electronics, positive train control equipment, signal design and engineering services, maintenance of way, and provides heat exchange and cooling systems for locomotives and power generation equipment. Customers include large, publicly traded railroads, leasing companies, manufacturers of original equipment such as locomotives and freight cars, and utilities, and also serves companies in the mining, marine, and industrial markets. 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 March 31, 2023 is as follows:
In millionsFreight
Segment
Transit
Segment
Corporate
Activities and
Elimination
Total
Sales to external customers$1,566 $628 $— $2,194 
Intersegment sales/(elimination)14 11(25)— 
Total sales$1,580 $639 $(25)$2,194 
Income (loss) from operations$227 $69 $(20)$276 
Interest expense and other, net— — (43)(43)
Income (loss) before income taxes$227 $69 $(63)$233 

Segment financial information for the three months ended March 31, 2022 is as follows:
In millionsFreight
Segment
Transit
Segment
Corporate
Activities and
Elimination
Total
Sales to external customers$1,322 $605 $— $1,927 
Intersegment sales/(elimination)13(21)— 
Total sales$1,335 $613 $(21)$1,927 
Income (loss) from operations$189 $65 $(15)$239 
Interest expense and other, net— — (39)(39)
Income (loss) before income taxes$189 $65 $(54)$200 
Sales to external customers by product line are as follows:
Three Months Ended
March 31,
In millions20232022
Freight Segment:
Services$707 $666 
Equipment393 274 
Components279 229 
Digital Intelligence187 153 
Total Freight Segment$1,566 $1,322 
Transit Segment:
Original Equipment Manufacturer$282 $292 
Aftermarket346 313 
Total Transit Segment$628 $605