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RESTRUCTURING
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
During the first quarter of 2022, Wabtec announced a multi-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 has evaluated additional capital investments to further simplify and streamline the business. The Company now anticipates that it will incur one-time charges related to Integration 2.0 up to approximately $170 million.
A summary of restructuring charges related to the Integration 2.0 initiative is as follows:
For the year ended
December 31,
In millions202420232022
Freight Segment:
Cost of goods sold$7 $4 $13 
Selling, general and administrative expenses— 5 1
Other income, net(4)— $— 
Total Freight Segment$3 $9 $14 
Transit Segment:
Cost of goods sold$13 $25 $26 
Selling, general and administrative expenses10 13 6
Amortization expense2 2 —
Total Transit Segment$25 $40 $32 
Total Integration 2.0 restructuring charges$28 $49 $46 
Total charges related to Integration 2.0 to date are approximately $146 million which includes amounts recorded in the fourth quarter 2021 for similar actions in Europe. Cash payments made during 2024 were approximately $48 million, primarily for employee related costs. Cash payments made during 2023 were approximately $39 million.
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 now expects to incur approximately $70 million in net exit charges related to Portfolio Optimization, which will be predominately non-cash asset write downs. Total charges related to Portfolio Optimization to date are approximately $56 million, which includes approximately $28 million charged in 2024 and in 2023. During 2024, approximately $18 million is related to the Freight Segment and approximately $10 million is related to the Transit Segment. Charges are primarily related to asset write downs.