Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

19. SEGMENT INFORMATION

Wabtec 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 business segments are:

Freight Segment primarily manufactures and services components for new and existing freight cars and locomotives, builds new switcher locomotives, rebuilds freight locomotives, supplies railway electronics, positive train control equipment, signal design and engineering services, and provides related heat exchange and cooling systems. Customers include large, publicly traded railroads, leasing companies, manufacturers of original equipment such as locomotives and freight cars, and utilities.

Transit Segment primarily manufactures and services components for new and existing passenger transit vehicles, typically subway cars and buses, builds new commuter locomotives and refurbishes 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. Corporate activities include general corporate expenses, elimination of intersegment transactions, interest income and expense and other unallocated charges. Since certain administrative and other operating expenses and other items have not been allocated to business segments, the results in the following tables are not necessarily a measure computed in accordance with generally accepted accounting principles and may not be comparable to other companies.

Segment financial information for 2014 is as follows:
					Corporate
	Freight		Transit		Activities and
In thousands	Segment		Segment		Elimination			Total
Sales to external customers	$	1,731,477	$	1,312,977	$	-		$	3,044,454
Intersegment sales/(elimination)		36,185		7,358		(43,543	)		-
Total sales	$	1,767,662	$	1,320,335	$	(43,543	)	$	3,044,454
Income (loss) from operations	$	402,456	$	147,821	$	(23,168	)	$	527,109
Interest expense and other, net		-		-		(19,254	)		(19,254	)
Income (loss) from operations before income taxes	$	402,456	$	147,821	$	(42,422	)	$	507,855
Depreciation and amortization	$	34,579	$	24,956	$	1,726		$	61,261
Capital expenditures		22,913		22,859		1,890			47,662
Segment assets		2,516,645		2,024,312		(1,237,116	)		3,303,841
Segment financial information for 2013 is as follows:
					Corporate
	Freight		Transit		Activities and
In thousands	Segment		Segment		Elimination			Total
Sales to external customers	$	1,398,103	$	1,168,289	$	-		$	2,566,392
Intersegment sales/(elimination)		25,463		6,992		(32,455	)	$	-
Total sales	$	1,423,566	$	1,175,281	$	(32,455	)	$	2,566,392
Income (loss) from operations	$	309,133	$	143,634	$	(15,457	)	$	437,310
Interest expense and other, net		-		-		(16,223	)		(16,223	)
Income (loss) from operations before income taxes	$	309,133	$	143,634	$	(31,680	)	$	421,087
Depreciation and amortization	$	30,645	$	19,103	$	1,445		$	51,193
Capital expenditures		22,020		17,119		2,099			41,238
Segment assets		2,258,773		1,706,829		(1,143,605	)		2,821,997
Segment financial information for 2012 is as follows:
					Corporate
	Freight		Transit		Activities and
In thousands	Segment		Segment		Elimination			Total
Sales to external customers	$	1,501,911	$	889,211	$	-		$	2,391,122
Intersegment sales/(elimination)		22,670		7,752		(30,422	)		-
Total sales	$	1,524,581	$	896,963	$	(30,422	)	$	2,391,122
Income (loss) from operations	$	314,627	$	94,861	$	(17,209	)	$	392,279
Interest expense and other, net		-		-		(14,921	)		(14,921	)
Income (loss) from operations before income taxes	$	314,627	$	94,861	$	(32,130	)	$	377,358
Depreciation and amortization	$	26,436	$	16,583	$	1,117		$	44,136
Capital expenditures		25,095		8,688		2,218			36,001
Segment assets		1,895,512		1,599,835		(1,143,805	)		2,351,542

The following geographic area data as of and for the years ended December 31, 2014, 2013 and 2012, respectively, includes net sales based on product shipment destination and long-lived assets, which consist of plant, property and equipment, net of depreciation, resident in their respective countries:

	Net Sales						Long-Lived Assets
In thousands	2014		2013		2012		2014		2013		2012
United States	$	1,537,002	$	1,336,604	$	1,199,294	$	158,913	$	150,952	$	131,850
United Kingdom		362,855		297,139		255,326		62,305		43,733		28,905
Canada		175,561		167,417		194,493		5,462		6,442		11,043
Mexico		174,218		128,184		139,089		7,812		5,862		4,886
Australia		113,668		141,056		191,994		6,505		5,033		5,151
China		101,889		49,952		28,886		12,788		7,863		7,555
Germany		86,792		54,869		38,574		33,441		13,599		12,914
Brazil		83,906		78,532		96,620		5,074		1,031		1,082
Italy		42,865		42,702		39,462		17,913		21,374		20,926
France		41,469		37,925		42,310		7,686		8,437		7,715
Netherlands		19,452		9,921		1,152		10,201		2,459		2,651
Other international		304,777		222,091		163,922		11,011		9,293		9,410
Total	$	3,044,454	$	2,566,392	$	2,391,122	$	339,111	$	276,078	$	244,088

Export sales from the Company’s United States operations were $521.7 million, $542.3 million and $579.6 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Sales by product are as follows:

Sales by product are as follows:
In thousands	2014		2013		2012
Specialty Products & Electronics	$	1,393,955	$	1,041,771	$	1,094,148
Brake Products		662,336		567,730		527,399
Remanufacturing, Overhaul & Build		618,885		655,387		496,883
Other Transit Products		201,913		204,115		197,634
Other		167,365		97,389		75,058
Total sales	$	3,044,454	$	2,566,392	$	2,391,122