RESTRUCTURING

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

During the first quarter of 2022, Wabtec announced a three-year strategic initiative (“Integration 2.0”) to review and consolidate our operating footprint, reduce headcount, streamline the end-to-end manufacturing process, restructure the North America distribution channels, expand operations in low-cost countries, and simplify the business through systems enablement. Through this initiative, Management will also evaluate additional capital investments to further simplify and streamline the business. The Company anticipates that it will incur one-time restructuring charges related to Integration 2.0 of approximately $135 million to $165 million.

A summary of restructuring charges related to the Integration 2.0 initiative is as follows:


In millions	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Freight Segment:
Cost of goods sold	$	1		$	2
Selling, general and administrative expenses	1			2
Total Freight Segment	$	2		$	4

Transit Segment:
Cost of goods sold	$	3		$	6
Selling, general and administrative expenses	3			5
Amortization expense	—			2
Total Transit Segment	$	6		$	13
Total Integration 2.0 restructuring charges	$	8		$	17

These charges are primarily for employee-related costs and asset write downs associated with site consolidations in Europe.

Total one-time restructuring charges related to Integration 2.0 to date are approximately $86 million, which includes amounts recorded in the fourth quarter 2021 and the year ended December 31, 2022, primarily for similar actions in Europe. Programs approved to date are expected to result in approximately 15 facility closures and impact approximately 1,100 employees. Cash payments made during three and six months ended June 30, 2023 or 2022 were not material.

No significant programs related to Integration 2.0 were initiated during the three and six months ended June 30, 2022.