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STOCK-BASED COMPENSATION PLANS
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION PLANS STOCK-BASED COMPENSATION PLANS
As of December 31, 2023, the Company maintains employee stock-based compensation plans for stock options, restricted stock, and incentive stock units as governed by the 2011 Stock Incentive Compensation Plan, as amended and restated (the “2011 Plan”) and the 2000 Stock Incentive Plan, as amended (the “2000 Plan”). The 2011 Plan has a term through May 10, 2027, and as of December 31, 2023, the number of shares available for future grants under the 2011 Plan was approximately 4.9 million shares. The Company also maintains a 1995 Non-Employee Directors’ Fee and Stock Option Plan as amended and restated (“the Directors Plan”). The Directors Plan, as amended, authorizes a total of 1,100,000 shares of Common Stock to be issued. Under the Directors Plan, options issued become exercisable over a three-year vesting period and expire ten years from the date of grant, and restricted stock issued under the plan vests one year from the date of grant. The amount of restricted stock issued to non-employee directors as compensation for directors’ fees was as follows: 14,856 shares for 2023; 14,269 shares for 2022; and 18,142 shares for 2021. The total number of shares issued under the Directors Plan as of December 31, 2023 was approximately 1.0 million shares. 
Stock-based compensation expense for all of the plans was $59 million, $49 million and $46 million for the years ended December 31, 2023, 2022 and 2021, respectively. Associated tax benefits related to the stock-based compensation plans for the years ended December 31, 2023, 2022 and 2021 were not material.
Included in the stock-based compensation expense for 2023 above is $23 million of expense related to non-vested restricted stock, $22 million of expense related to incentive stock units, $12 million related to restricted stock units, $1 million related to stock options, and $1 million related to units issued for Directors’ fees. The restricted stock units are liability-classified equity awards as they can be settled in cash. At December 31, 2023, unamortized compensation expense related to those stock options, non-vested restricted shares and incentive stock units expected to vest totaled $52 million and will be recognized over a weighted period of 1.4 years.
Stock Options Stock options are granted to eligible employees and directors at fair market value, which is the average of the high and low Wabtec stock price on the date of grant. Under the 2011 Plan and the 2000 Plan, options become exercisable over a three year vesting period and expire 10 years from the date of grant.  
The following table summarizes the Company’s stock option activity and related information for the years ended December 31. There were no stock options granted during the years ended December 31, 2023 or 2022. 
OptionsWeighted
Average
Exercise
Price		Weighted Average
Remaining
Contractual Life		Aggregate
Intrinsic value
(in millions)
Outstanding at December 31, 2020552,669 $69.82 6.1$4 
Granted126,794 $81.21  
Exercised(113,728)$50.38  
Canceled(33,820)$73.53  
Outstanding at December 31, 2021531,915 $75.40 6.5$9 
Exercised(116,590)$68.57  
Canceled(15,387)$77.10  
Outstanding at December 31, 2022399,938 $77.32 5.9$11 
Exercised(87,035)$74.49  
Canceled(3,078)$79.04  
Outstanding at December 31, 2023309,825 $78.41 5.3$15 
Exercisable at December 31, 2023275,198 $78.06 5.3$13 
Options outstanding at December 31, 2023 were as follows:
 
Range of Exercise PricesNumber of Options OutstandingWeighted Average Exercise Price of Options OutstandingWeighted Average Remaining Contractual LifeNumber of Options Currently ExercisableWeighted Average Exercise Price of Options Currently Exercisable
50.00 - 65.00
27,595 $61.51 2.927,595 $61.51 
65.00 - 80.00
131,568 $75.03 5.6131,568 $75.03 
Over 80.00
150,662 $84.46 5.5116,035 $85.43 
 309,825 $78.41 5.3275,198 $78.06 

Restricted Stock and Incentive Stock  As provided for under the 2011 and 2000 Plans, eligible employees are granted restricted stock that generally vests over three years from the date of grant. Under the Directors Plan, restricted stock awards vest one year from the date of grant.
In addition, the Company has issued incentive stock units to eligible employees that vest upon attainment of certain cumulative three-year performance goals, including a Relative Total Stockholder Return (RTSR) modifier. The RTSR can modify the payment up or down by 10%. Significant judgments and estimates are used in determining the estimated three-year performance, which is then used to estimate the total shares expected to vest over the three year vesting cycle and corresponding expense based on the grant date fair value of the award. When determining the estimated three-year performance, the Company utilizes a combination of historical actual results, budgeted results and forecasts. Upon the initial grant of a performance cycle, the Company estimates the three-year performance at 100%. Quarterly, the Company reviews and updates performance estimates based on actual performance results and current projections. Based on the Company’s performance for each three year period then ended, the incentive stock units can vest and be awarded ranging from 0% to 200% of the initial incentive stock units granted. The incentive stock units included in the table below represent the number of shares that are expected to vest based on the Company’s estimate for meeting those established performance targets. As of December 31, 2023, the Company estimates that it will achieve 145%, 139% and 116% for the incentive stock awards expected to vest, inclusive of the RTSR modifier, based on the estimated performance for the three year periods ending December 31, 2023, 2024, and 2025, respectively, and has recorded incentive compensation expense accordingly. If estimates of the number of these stock units expected to vest changes in a future accounting period, cumulative compensation expense could increase or decrease and will be recognized in the current period for the elapsed portion of the vesting period and would change future expense for the remaining vesting period.
Compensation expense for the non-vested restricted stock and incentive stock units is based on the closing price of the Company’s common stock on the date of grant and recognized over the applicable vesting period. Expense for incentive stock units is updated as necessary based on the Company's performance.
The following table summarizes the restricted stock and incentive stock units activity and related information for the years ended December 31:
Restricted
Stock
and Units		Incentive
Stock
Awards		Weighted
Average Grant
Date Fair
Value
Outstanding at December 31, 2020656,006 270,645 $73.80 
Granted235,902 241,467 $81.64 
Vested(350,955)(37,672)$71.82 
Adjustment for incentive stock awards expected to vest— 180,767 $76.26 
Canceled(33,255)(48,106)$76.24 
Outstanding at December 31, 2021507,698 607,101 $78.06 
Granted460,841 176,657 $91.19 
Vested(234,597)(43,039)$75.14 
Adjustment for incentive stock awards expected to vest— 45,301 $84.55 
Canceled(44,522)(41,176)$76.84 
Outstanding at December 31, 2022689,420 744,844 $84.73 
Granted368,209 192,751 $104.70 
Vested(262,339)(265,678)$81.00 
Adjustment for incentive stock awards expected to vest— 31,011 $88.02 
Canceled(34,721)(10,196)$93.44 
Outstanding at December 31, 2023760,569 692,732 $93.65