SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

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 2015 is as follows:
					Corporate
	Freight		Transit		Activities and
In thousands	Segment		Segment		Elimination			Total
Sales to external customers	$	2,054,715	$	1,253,283	$	—		$	3,307,998
Intersegment sales/(elimination)	35,372		10,895		(46,267		)	—
Total sales	$	2,090,087	$	1,264,178	$	(46,267	)	$	3,307,998
Income (loss) from operations	$	482,640	$	150,988	$	(26,061	)	$	607,567
Interest expense and other, net	—		—		(22,199		)	(22,199		)
Income (loss) from operations before income taxes	$	482,640	$	150,988	$	(48,260	)	$	585,368
Depreciation and amortization	$	36,834	$	26,196	$	1,704		$	64,734
Capital expenditures	24,715		22,996		1,717			49,428
Segment assets	2,766,798		2,221,027		(1,687,490		)	3,300,335
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

The following geographic area data as of and for the years ended December 31, 2015, 2014 and 2013, 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	2015		2014		2013		2015		2014		2013
United States	$	1,754,924	$	1,537,002	$	1,336,604	$	171,362	$	158,913	$	150,952
United Kingdom	368,505		362,855		297,139		63,694		62,305		43,733
Canada	204,674		175,561		167,417		4,876		5,462		6,442
Mexico	190,034		174,218		128,184		8,839		7,812		5,862
China	100,586		101,889		49,952		12,256		12,788		7,863
Germany	92,422		86,792		54,869		31,642		33,441		13,599
Australia	86,809		113,668		141,056		8,424		6,505		5,033
Brazil	84,595		83,906		78,532		9,318		5,074		1,031
France	45,565		41,469		37,925		7,194		7,686		8,437
Italy	38,164		42,865		42,702		15,170		17,913		21,374
Netherlands	25,869		19,452		9,921		7,506		10,201		2,459
Other international	315,851		304,777		222,091		12,912		11,011		9,293
Total	$	3,307,998	$	3,044,454	$	2,566,392	$	353,193	$	339,111	$	276,078

Export sales from the Company’s United States operations were $508.4 million, $521.7 million and $542.3 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Sales by product are as follows:

In thousands	2015		2014		2013
Specialty Products & Electronics	$	1,733,881	$	1,393,955	$	1,041,771
Brake Products	627,552		662,336		567,730
Remanufacturing, Overhaul & Build	606,624		618,885		655,387
Other Transit Products	189,581		201,913		204,115
Other	150,360		167,365		97,389
Total sales	$	3,307,998	$	3,044,454	$	2,566,392