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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 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. It also 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 September 30, 2023 is as follows:
In millions | Freight Segment |  | Transit Segment |  | Corporate Activities and Elimination |  | Total
Sales to external customers | $ | 1,890 |  |  | $ | 660 |  |  | $ | — |  |  | $ | 2,550 |
Intersegment sales/(elimination) | 18 |  |  | 9 |  |  | (27) |  |  | — |
Total sales | $ | 1,908 |  |  | $ | 669 |  |  | $ | (27) |  |  | $ | 2,550 |
Income (loss) from operations | $ | 327 |  |  | $ | 68 |  |  | $ | (25) |  |  | $ | 370 |
Interest expense and other, net | — |  |  | — |  |  | (50) |  |  | (50) |
Income (loss) before income taxes | $ | 327 |  |  | $ | 68 |  |  | $ | (75) |  |  | $ | 320 |
Segment financial information for the three months ended September 30, 2022 is as follows:
In millions | Freight 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 nine months ended September 30, 2023 is as follows:
In millions | Freight Segment |  | Transit Segment |  | Corporate Activities and Elimination |  | Total
Sales to external customers | $ | 5,164 |  |  | $ | 1,987 |  |  | $ | — |  |  | $ | 7,151 |
Intersegment sales/(elimination) | 48 |  | 31 |  |  | (79) |  |  | — |
Total sales | $ | 5,212 |  |  | $ | 2,018 |  |  | $ | (79) |  |  | $ | 7,151 |
Income (loss) from operations | $ | 825 |  |  | $ | 203 |  |  | $ | (70) |  |  | $ | 958 |
Interest expense and other, net | — |  |  | — |  |  | (146) |  |  | (146) |
Income (loss) before income taxes | $ | 825 |  |  | $ | 203 |  |  | $ | (216) |  |  | $ | 812 |
Segment financial information for the nine months ended September 30, 2022 is as follows:
In millions | Freight Segment |  | Transit Segment |  | Corporate Activities and Elimination |  | Total
Sales to external customers | $ | 4,343 |  |  | $ | 1,713 |  |  | $ | — |  |  | $ | 6,056 |
Intersegment sales/(elimination) | 38 |  | 24 |  |  | (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 |
Sales to external customers by product line are as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
In millions |  | 2023 |  | 2022 |  | 2023 |  | 2022
Freight Segment: |  |  |  |  |  |  |  |
Services |  | $ | 787 |  |  | $ | 669 |  |  | $ | 2,304 |  |  | $ | 2,046 |
Equipment |  | 615 |  |  | 443 |  |  | 1,423 |  |  | 1,098 |
Components |  | 307 |  |  | 232 |  |  | 874 |  |  | 695 |
Digital Intelligence |  | 181 |  |  | 187 |  |  | 563 |  |  | 504 |
Total Freight Segment |  | $ | 1,890 |  |  | $ | 1,531 |  |  | $ | 5,164 |  |  | $ | 4,343 |
Transit Segment: |  |  |  |  |  |  |  |
Original Equipment Manufacturer |  | $ | 302 |  |  | $ | 264 |  |  | $ | 909 |  |  | $ | 815 |
Aftermarket |  | 358 |  |  | 286 |  |  | 1,078 |  |  | 898 |
Total Transit Segment |  | $ | 660 |  |  | $ | 550 |  |  | $ | 1,987 |  |  | $ | 1,713 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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