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RESTRUCTURING | 6 Months Ended
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Jun. 30, 2024
Restructuring and Related Activities [Abstract] |
RESTRUCTURING | RESTRUCTURING 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:
| Three Months Ended June 30, |  | Six Months Ended June 30,
In millions | 2024 |  | 2023 |  | 2024 |  | 2023
Freight Segment: |  |  |  |  |  |  |
Cost of goods sold | $ | 3 |  |  | $ | 1 |  |  | $ | 4 |  |  | $ | 2 |
Selling, general and administrative expenses | — |  |  | 1 |  |  | — |  |  | 2 |
Other income, net | (4) |  |  | — |  |  | (4) |  |  | — |
Total Freight Segment | $ | (1) |  |  | $ | 2 |  |  | $ | — |  |  | $ | 4 |
Transit Segment: |  |  |  |  |  |  |
Cost of goods sold | $ | 1 |  |  | $ | 3 |  |  | $ | 4 |  |  | $ | 6 |
Selling, general and administrative expenses | 3 |  |  | 3 |  |  | 6 |  |  | 5 |
Amortization expense | 1 |  |  | — |  |  | 2 |  |  | 2 |
Total Transit Segment | $ | 5 |  |  | $ | 6 |  |  | $ | 12 |  |  | $ | 13 |
Total Integration 2.0 restructuring charges | $ | 4 |  |  | $ | 8 |  |  | $ | 12 |  |  | $ | 17 |
Total one-time restructuring charges related to Integration 2.0 to date are approximately $130 million, which includes amounts recorded beginning in the fourth quarter 2021, and are primarily for employee-related costs and asset write downs associated with site consolidations in Europe. Cash payments made during the three and six months ended June 30, 2024 were approximately $8 million and $30 million, respectively. Cash payments made during the three and six months ended June 30, 2023 were not material. In addition to Integration 2.0, Wabtec is focused on exiting various low margin product offerings through Portfolio Optimization to improve profitability while reducing manufacturing complexity. Wabtec expects to incur approximately $85 million in net exit charges related to Portfolio Optimization, which will be predominately non-cash asset write downs. Wabtec recorded charges of approximately $2 million and $5 million during the three and six months ended June 30, 2024, respectively, primarily for asset write downs related to Portfolio Optimization. No charges related to Portfolio Optimization were recorded during the three and six months ended June 30, 2023. Total one-time restructuring charges related to Portfolio Optimization to date are approximately $33 million.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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