SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2021

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. Initiatives to integrate GE Transportation operations into Wabtec including recent restructuring programs announced in late 2019 resulted in changes to the Company's organizational structure and the financial reporting utilized by the Company's chief operating decision maker to assess performance and allocate resources; as a result, certain asset groups were reorganized from the Freight Segment to the Transit Segment and vice versa. The change in the Company’s reportable segments was effective in the fourth quarter of 2019 and is reflected below. The Company believes these changes better present Management's view of the business. The Company’s business segments are:

Freight Segment primarily builds new locomotives, manufactures and services components for new and existing freight cars and 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. 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 subways. 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 2021 is as follows:
In million	Freight Segment		Transit Segment		Corporate Activities and Elimination		Total
Sales to external customers	$	5,239	$	2,583	$	—	$	7,822
Intersegment sales/(elimination)	48		33		(81)		—
Total sales	$	5,287	$	2,616	$	(81)	$	7,822
Income (loss) from operations	$	717	$	238	$	(79)	$	876
Interest expense and other, net	—		—		(139)		(139)
Income (loss) before income taxes	$	717	$	238	$	(218)	$	737
Depreciation and amortization	$	405	$	70	$	16	$	491
Capital expenditures	$	79	$	48	$	3	$	130
Segment assets	$	18,291	$	5,768	$	(5,605)	$	18,454

Segment financial information for 2020 is as follows:
In millions	Freight Segment		Transit Segment		Corporate Activities and Elimination		Total
Sales to external customers	$	5,082	$	2,474	$	—	$	7,556
Intersegment sales/(elimination)	49		37		(86)		—
Total sales	$	5,131	$	2,511	$	(86)	$	7,556
Income (loss) from operations	$	584	$	230	$	(69)	$	745
Interest expense and other, net	—		—		(188)		(188)
Income (loss) from operations before income taxes	$	584	$	230	$	(257)	$	557
Depreciation and amortization	$	393	$	67	$	13	$	473
Capital expenditures	$	70	$	40	$	26	$	136
Segment assets	$	15,393	$	6,395	$	(3,334)	$	18,454

Segment financial information for 2019 is as follows:
In millions	Freight Segment		Transit Segment		Corporate Activities and Elimination		Total
Sales to external customers	$	5,441	$	2,759	$	—	$	8,200
Intersegment sales/(elimination)	60		23		(83)		—
Total sales	$	5,501	$	2,782	$	(83)	$	8,200
Income (loss) from operations	$	643	$	214	$	(194)	$	663
Interest expense and other, net	—		—		(216)		(216)
Income (loss) before income taxes	$	643	$	214	$	(410)	$	447
Depreciation and amortization	$	330	$	62	$	9	$	401
Capital expenditures	$	105	$	64	$	17	$	186

The following geographic area data as of and for the years ended December 31, 2021, 2020 and 2019, 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 millions	2021		2020		2019		2021		2020
United States	$	3,321	$	3,161	$	3,381	$	983	$	1,039
Canada	462		372		733		6		9
Mexico	220		187		357		22		23
North America	4,003		3,720		4,471		1,011		1,071
South America	301		217		218		32		32
United Kingdom	300		314		376		45		51
Germany	383		351		340		70		82
France	286		252		294		54		59
Italy	196		172		206		29		31
Switzerland	88		83		89		2		2
Other Europe	427		405		387		55		60
Europe	1,680		1,577		1,692		255		285
India	531		441		504		151		164
Australia / New Zealand	386		366		301		9		12
China	228		225		290		32		30
Other Asia / Middle East	177		199		216		—		1
Egypt	32		360		228		—		—
Other Africa	72		138		105		4		4
Russia / CIS	412		313		175		3		2
Total	$	7,822	$	7,556	$	8,200	$	1,497	$	1,601

Net sales to external customers by product line are as follows:

In millions	2021		2020		2019
Freight Segment:
Services	$	2,430	$	2,068	$	1,991
Equipment	1,302		1,531		1,700
Components	867		819		1,073
Digital Electronics	640		664		677
Total Freight Segment sales	$	5,239	$	5,082	$	5,441
Transit Segment:
Original Equipment Manufacturer	1,193		1,139		1,287
Aftermarket	1,390		1,335		1,472
Total Transit Segment sales	$	2,583	$	2,474	$	2,759