SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2016

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 regional trains, high speed trains, subway cars, light-rail vehicles and buses, builds new commuter locomotives, refurbishes subway cars, 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. 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 2016 is as follows:
					Corporate
	Freight		Transit		Activities and
In thousands	Segment		Segment		Elimination			Total
Sales to external customers	$	1,543,098	$	1,388,090	$	—		$	2,931,188
Intersegment sales/(elimination)	39,519		9,393		(48,912		)	—
Total sales	$	1,582,617	$	1,397,483	$	(48,912	)	$	2,931,188
Income (loss) from operations	$	344,455	$	171,446	$	(57,540	)	$	458,361
Interest expense and other, net	—		—		(45,524		)	(45,524		)
Income (loss) from operations before income taxes	$	344,455	$	171,446	$	(103,064	)	$	412,837
Depreciation and amortization	$	36,519	$	31,545	$	1,731		$	69,795
Capital expenditures	22,726		20,987		6,503			50,216
Segment assets	2,949,668		6,720,302		(3,088,952		)	6,581,018
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	2,708,724		2,202,614		(1,681,825		)	3,229,513

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

The following geographic area data as of and for the years ended December 31, 2016, 2015 and 2014, 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	2016		2015		2014		2016		2015		2014
United States	$	1,362,255	$	1,754,924	$	1,537,002	$	205,895	$	171,362	$	158,913
United Kingdom	322,563		368,505		362,855		54,215		63,694		62,305
Canada	206,258		204,674		175,561		5,156		4,876		5,462
Mexico	183,583		190,034		174,218		8,766		8,839		7,812
China	106,357		100,586		101,889		42,672		12,256		12,788
Germany	98,364		92,422		86,792		57,902		31,642		33,441
Australia	82,099		86,809		113,668		8,039		8,424		6,505
France	66,287		45,565		41,469		33,636		7,194		7,686
Brazil	51,493		84,595		83,906		13,227		9,318		5,074
Italy	45,771		38,164		42,865		27,253		15,170		17,913
Netherlands	25,452		25,869		19,452		11,534		7,506		10,201
Other international	380,706		315,851		304,777		50,081		12,912		11,011
Total	$	2,931,188	$	3,307,998	$	3,044,454	$	518,376	$	353,193	$	339,111

Export sales from the Company’s United States operations were $470.5 million, $508.4 million and $521.7 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Sales by product are as follows:

In thousands	2016		2015		2014
Specialty Products & Electronics	$	1,374,580	$	1,733,881	$	1,393,955
Brake Products	588,081		627,552		662,336
Remanufacturing, Overhaul & Build	559,284		606,624		618,885
Transit Products	276,124		189,581		201,913
Other	133,119		150,360		167,365
Total sales	$	2,931,188	$	3,307,998	$	3,044,454