XML 34 R23.htm IDEA: XBRL DOCUMENT v3.24.1.u1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2024
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.
During the first quarter of 2024, Company management determined that certain parts of the business would be better aligned with management oversight in different product lines. These changes were immaterial to the individual product lines and segments affected, and historical amounts have been reclassified to conform to the current period presentation.
Segment financial information for the three months ended March 31, 2024 is as follows:
In millionsFreight
Segment		Transit
Segment		Corporate
Activities and
Elimination		Total
Sales to external customers$1,824 $673 $— $2,497 
Intersegment sales/(elimination)13 11 (24)— 
Total sales$1,837 $684 $(24)$2,497 
Income (loss) from operations$368 $74 $(30)$412 
Interest expense and other, net— — (49)(49)
Income (loss) before income taxes$368 $74 $(79)$363 
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$1,556 $638 $— $2,194 
Intersegment sales/(elimination)14 11 (25)— 
Total sales$1,570 $649 $(25)$2,194 
Income (loss) from operations$226 $70 $(20)$276 
Interest expense and other, net— — (43)(43)
Income (loss) before income taxes$226 $70 $(63)$233 
Sales to external customers by product line are as follows:
Three Months Ended
March 31,
In millions20242023
Freight Segment:
Services$829 $707 
Equipment526 404 
Components293 258 
Digital Intelligence176 187 
Total Freight Segment$1,824 $1,556 
Transit Segment:
Original Equipment Manufacturer$310 $289 
Aftermarket363 349 
Total Transit Segment$673 $638