Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP | ||
Entity Central Index Key | 943,452 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Trading Symbol | WAB | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 96,090,518 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 7.8 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 233,401 | $ 398,484 |
Accounts receivable | 800,619 | 667,596 |
Unbilled accounts receivable | 366,168 | 274,912 |
Inventories | 742,634 | 658,510 |
Deposits in escrow | 0 | 744,748 |
Other assets | 122,291 | 123,381 |
Total current assets | 2,265,113 | 2,867,631 |
Property, plant and equipment | 1,026,046 | 912,230 |
Accumulated depreciation | (452,074) | (393,854) |
Property, plant and equipment, net | 573,972 | 518,376 |
Other Assets | ||
Goodwill | 2,460,103 | 2,078,765 |
Other intangibles, net | 1,204,432 | 1,053,860 |
Other noncurrent assets | 76,360 | 62,386 |
Total other assets | 3,740,895 | 3,195,011 |
Total Assets | 6,579,980 | 6,581,018 |
Current Liabilities | ||
Accounts payable | 552,525 | 530,211 |
Customer deposits | 369,716 | 256,591 |
Accrued compensation | 164,210 | 145,324 |
Accrued warranty | 137,542 | 123,190 |
Current portion of long-term debt | 47,225 | 129,809 |
Other accrued liabilities | 302,112 | 261,514 |
Total current liabilities | 1,573,330 | 1,446,639 |
Long-term debt | 1,823,303 | 1,762,967 |
Accrued postretirement and pension benefits | 103,734 | 110,597 |
Deferred income taxes | 175,902 | 245,680 |
Accrued warranty | 15,521 | 15,802 |
Other long-term liabilities | 59,658 | 22,508 |
Total liabilities | 3,751,448 | 3,604,193 |
Commitment and Contingencies (Note 19) | ||
Equity | ||
Preferred stock, 1,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $.01 par value; 200,000,000 shares authorized: 132,349,534 shares issued and 96,034,352 and 95,425,432 outstanding at December 31, 2017 and December 31, 2016, respectively | 1,323 | 1,323 |
Additional paid-in capital | 906,616 | 869,951 |
Treasury stock, at cost, 36,315,182 and 36,924,102 shares, at December 31, 2017 and December 31, 2016, respectively | (827,379) | (838,950) |
Retained earnings | 2,773,300 | 2,553,258 |
Accumulated other comprehensive loss | (44,992) | (379,605) |
Total Westinghouse Air Brake Technologies Corporation shareholders' equity | 2,808,868 | 2,205,977 |
Noncontrolling interest | 19,664 | 770,848 |
Total equity | 2,828,532 | 2,976,825 |
Total Liabilities and Equity | $ 6,579,980 | $ 6,581,018 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 132,349,534 | 132,349,534 |
Common stock, shares outstanding (in shares) | 96,034,352 | 95,425,432 |
Treasury stock, shares (in shares) | 36,315,182 | 36,924,102 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 3,881,756 | $ 2,931,188 | $ 3,307,998 |
Cost of sales | (2,816,443) | (2,006,949) | (2,260,182) |
Gross profit | 1,065,313 | 924,239 | 1,047,816 |
Selling, general and administrative expenses | (511,898) | (371,805) | (347,373) |
Engineering expenses | (95,166) | (71,375) | (71,213) |
Amortization expense | (36,516) | (22,698) | (21,663) |
Total operating expenses | (643,580) | (465,878) | (440,249) |
Income from operations | 421,733 | 458,361 | 607,567 |
Other income and expenses | |||
Interest expense, net | (68,704) | (42,561) | (16,888) |
Other (expense) income, net | (966) | (2,963) | (5,311) |
Income from operations before income taxes | 352,063 | 412,837 | 585,368 |
Income tax expense | (89,773) | (99,433) | (186,740) |
Net income | 262,290 | 313,404 | 398,628 |
Less: Net income attributable to noncontrolling interest | (29) | (8,517) | 0 |
Net income attributable to Wabtec shareholders | $ 262,261 | $ 304,887 | $ 398,628 |
Basic | |||
Net income attributable to Wabtec shareholders (in dollars per share) | $ 2.74 | $ 3.37 | $ 4.14 |
Diluted | |||
Net income attributable to Wabtec shareholders (in dollars per share) | $ 2.72 | $ 3.34 | $ 4.10 |
Weighted average shares outstanding | |||
Basic (in shares) | 95,453 | 90,359 | 96,074 |
Diluted (in shares) | 96,125 | 91,141 | 97,006 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to Wabtec shareholders | $ 262,261 | $ 304,887 | $ 398,628 |
Foreign currency translation gain (loss) | 326,096 | (93,684) | (132,899) |
Unrealized gain (loss) on derivative contracts | 9,799 | 305 | (1,202) |
Unrealized gain (loss) on pension benefit plans and post-retirement benefit plans | 2,845 | (12,021) | 26,689 |
Other comprehensive gain (loss) before tax | 338,740 | (105,400) | (107,412) |
Income tax (expense) benefit related to components of other comprehensive (loss) income | (4,127) | 2,514 | (9,821) |
Other comprehensive income (loss), net of tax | 334,613 | (102,886) | (117,233) |
Comprehensive income attributable to Wabtec shareholders | $ 596,874 | $ 202,001 | $ 281,395 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net income | $ 262,290 | $ 313,404 | $ 398,628 |
Adjustments to reconcile net income to cash provided by operations: | |||
Depreciation and amortization | 103,248 | 69,795 | 64,734 |
Stock-based compensation expense | 21,287 | 20,813 | 26,019 |
Deferred income taxes | (67,423) | (10,228) | 4,981 |
Loss on disposal of property, plant and equipment | 1,907 | 232 | 587 |
Changes in operating assets and liabilities, net of acquisitions | |||
Accounts receivable and unbilled accounts receivable | (68,676) | 19,728 | 21,500 |
Inventories | (8,955) | 45,340 | 20,147 |
Accounts payable | (91,722) | (18,932) | (76,650) |
Accrued income taxes | 47,644 | (11,759) | 21,740 |
Accrued liabilities and customer deposits | (18,891) | (11,338) | (14,837) |
Other assets and liabilities | 8,102 | 33,475 | (16,005) |
Net cash provided by operating activities | 188,811 | 450,530 | 450,844 |
Investing Activities | |||
Purchase of property, plant and equipment | (89,466) | (50,216) | (49,428) |
Proceeds from disposal of property, plant and equipment | 1,291 | 363 | 1,784 |
Acquisitions of business, net of cash acquired | (921,537) | (183,113) | (129,550) |
Deposit in escrow | 733,983 | (542,099) | (202,942) |
Net cash used for investing activities | (275,729) | (775,065) | (380,136) |
Financing Activities | |||
Proceeds from debt | 1,216,740 | 1,875,000 | 787,400 |
Payments of debt | (1,269,537) | (1,102,748) | (612,680) |
Stock re-purchase | 0 | (212,176) | (387,787) |
Proceeds from exercise of stock options and other benefit plans | 4,428 | 1,983 | 3,097 |
Payment of income tax withholding on share-based compensation | (6,844) | (6,658) | (14,565) |
Cash dividends ($0.44, $0.36, and $0.28 per share for the years ended December 31, 2017, 2016 and 2015) | (42,218) | (32,430) | (26,963) |
Net cash (used for) provided by financing activities | (97,431) | 522,971 | (251,498) |
Effect of changes in currency exchange rates | 19,266 | (26,143) | (18,868) |
(Decrease) increase in cash | (165,083) | 172,293 | (199,658) |
Cash, beginning of year | 398,484 | 226,191 | 425,849 |
Cash, end of year | $ 233,401 | $ 398,484 | $ 226,191 |
CONSOLIDATED STATEMENTS OF CAS7
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Cash dividends, per share (in dollars per share) | $ 0.44 | $ 0.36 | $ 0.28 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Balance beginning of period at Dec. 31, 2014 | $ 1,808,974 | $ 1,323 | $ 448,531 | $ (392,262) | $ 1,909,136 | $ (159,486) | $ 1,732 |
Beginning Balance (in shares) at Dec. 31, 2014 | 132,349,534 | 36,075,139 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends ($ 0.28 in 2015, $0.36 in 2016 and $0.44 in 2017) | (26,963) | (26,963) | |||||
Proceeds from treasury stock issued from the exercise of stock options and other benefit plans, net of tax | 2,007 | (2,918) | $ 4,925 | ||||
Proceeds from treasury stock issued from the exercise of stock options and other benefit plans, net of tax, shares (in shares) | 450,738 | ||||||
Stock based compensation | 23,713 | 23,713 | |||||
Net income | 398,628 | 398,628 | |||||
Translation adjustment | (132,899) | (132,899) | |||||
Unrealized gain (loss) on foreign exchange contracts, net of tax ($14 in 2015, $45 in 2016 and $$1,763 in 2017) | (66) | (66) | |||||
Unrealized gain (loss) on interest rate swap contracts, net of tax ($444 in 2015, $230 in 2016, and $1,079 in 2017) | (678) | (678) | |||||
Change in pension and post-retirement benefit plans, net of tax ($10,279 in 2015, $2,790 in 2016, and $1,300 in 2017) | 16,410 | 16,410 | |||||
Stock repurchase, shares (in shares) | (4,889,027) | ||||||
Stock repurchase, value | (387,787) | $ (387,787) | |||||
Balance end of period at Dec. 31, 2015 | 1,701,339 | $ 1,323 | 469,326 | $ (775,124) | 2,280,801 | (276,719) | 1,732 |
Ending Balance (in shares) at Dec. 31, 2015 | 132,349,534 | 40,513,428 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends ($ 0.28 in 2015, $0.36 in 2016 and $0.44 in 2017) | (32,430) | (32,430) | |||||
Proceeds from treasury stock issued from the exercise of stock options and other benefit plans, net of tax | (3,452) | (8,490) | $ 5,038 | ||||
Proceeds from treasury stock issued from the exercise of stock options and other benefit plans, net of tax, shares (in shares) | 328,245 | ||||||
Stock based compensation | 17,748 | 17,748 | |||||
Acquisition of Faiveley Transport noncontrolling interest | 760,599 | 760,599 | |||||
Net income | 313,404 | 304,887 | 8,517 | ||||
Translation adjustment | (93,684) | (93,684) | |||||
Unrealized gain (loss) on foreign exchange contracts, net of tax ($14 in 2015, $45 in 2016 and $$1,763 in 2017) | (324) | (324) | |||||
Unrealized gain (loss) on interest rate swap contracts, net of tax ($444 in 2015, $230 in 2016, and $1,079 in 2017) | 354 | 354 | |||||
Change in pension and post-retirement benefit plans, net of tax ($10,279 in 2015, $2,790 in 2016, and $1,300 in 2017) | (9,232) | (9,232) | |||||
Stock issued for Faiveley Transport Acquisition | 534,679 | 391,367 | $ 143,312 | ||||
Stock issued for Faiveley Transport Acquisition (in shares) | 6,307,489 | ||||||
Stock repurchase, shares (in shares) | (3,046,408) | ||||||
Stock repurchase, value | (212,176) | $ (212,176) | |||||
Balance end of period at Dec. 31, 2016 | 2,976,825 | $ 1,323 | 869,951 | $ (838,950) | 2,553,258 | (379,605) | 770,848 |
Ending Balance (in shares) at Dec. 31, 2016 | 132,349,534 | 36,924,102 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends ($ 0.28 in 2015, $0.36 in 2016 and $0.44 in 2017) | (42,218) | (42,218) | |||||
Proceeds from treasury stock issued from the exercise of stock options and other benefit plans, net of tax | (2,416) | (7,361) | $ 4,945 | ||||
Proceeds from treasury stock issued from the exercise of stock options and other benefit plans, net of tax, shares (in shares) | 608,920 | ||||||
Stock based compensation | 16,650 | 16,650 | $ 0 | ||||
Acquisition of Faiveley Transport noncontrolling interest | (742,282) | 8,931 | (751,213) | ||||
Net income | 262,290 | 262,261 | 29 | ||||
Translation adjustment | 326,095 | 326,095 | |||||
Unrealized gain (loss) on foreign exchange contracts, net of tax ($14 in 2015, $45 in 2016 and $$1,763 in 2017) | 2,282 | 2,282 | |||||
Unrealized gain (loss) on interest rate swap contracts, net of tax ($444 in 2015, $230 in 2016, and $1,079 in 2017) | 4,689 | 4,689 | |||||
Change in pension and post-retirement benefit plans, net of tax ($10,279 in 2015, $2,790 in 2016, and $1,300 in 2017) | 1,546 | 1,546 | |||||
Stock issued for Faiveley Transport Acquisition | 25,071 | 18,445 | 6,626 | ||||
Balance end of period at Dec. 31, 2017 | $ 2,828,532 | $ 1,323 | $ 906,616 | $ (827,379) | $ 2,773,301 | $ (44,993) | $ 19,664 |
Ending Balance (in shares) at Dec. 31, 2017 | 132,349,534 | 36,315,182 |
CONSOLIDATED STATEMENTS OF SHA9
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, per share (in dollars per share) | $ 0.44 | $ 0.36 | $ 0.28 |
Unrealized gain (loss) on foreign exchange contracts, tax | $ 1,763 | $ 45 | $ 14 |
Unrealized gain (loss) on interest rate swap contracts, tax | 1,079 | 230 | 444 |
Change in pension and post retirement benefit plans, tax | $ 1,300 | $ 2,790 | $ 10,279 |
BUSINESS
BUSINESS | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS | BUSINESS Wabtec is one of the world’s largest providers of value-added, technology-based equipment, systems and services for the global passenger transit and freight rail industries. Our highly engineered products, which are intended to enhance safety, improve productivity and reduce maintenance costs for customers, can be found on most locomotives, freight cars, passenger transit cars and buses around the world. Our products enhance safety, improve productivity and reduce maintenance costs for customers, and many of our core products and services are essential in the safe and efficient operation of freight rail and passenger transit vehicles. Wabtec is a global company with operations in 31 countries and our products can be found in more than 100 countries throughout the world. In 2017 , about 66% of the Company’s revenues came from customers outside the U.S. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of the Company and all subsidiaries that it controls. For consolidated subsidiaries in which the Company's ownership is less than 100%, the outside shareholders' interests are shown as noncontrolling interests. These statements have been prepared in accordance with U.S. generally accepted accounting principles. Sales between subsidiaries are billed at prices consistent with sales to third parties and are eliminated in consolidation. Cash Equivalents Cash equivalents are highly liquid investments purchased with an original maturity of three months or less. Allowance for Doubtful Accounts The allowance for doubtful accounts receivable reflects our best estimate of probable losses inherent in our receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available evidence. The allowance for doubtful accounts was $12.3 million and $7.3 million as of December 31, 2017 and 2016 , respectively. Inventories Inventories are stated at the lower of cost or market. Cost is determined under the first-in, first-out (FIFO) method. Inventory costs include material, labor and overhead. Property, Plant and Equipment Property, plant and equipment additions are stated at cost. Expenditures for renewals and improvements are capitalized. Expenditures for ordinary maintenance and repairs are expensed as incurred. The Company computes book depreciation principally on the straight-line method. Accelerated depreciation methods are utilized for income tax purposes. Leasing Arrangements The Company conducts a portion of its operations from leased facilities and finances certain equipment purchases through lease agreements. In those cases in which the lease term approximates the useful life of the leased asset or the lease meets certain other prerequisites, the leasing arrangement is classified as a capital lease. The remaining arrangements are treated as operating leases. Goodwill and Intangible Assets Goodwill and other intangible assets with indefinite lives are not amortized. Other intangibles (with definite lives) are amortized on a straight-line basis over their estimated economic lives. Amortizable intangible assets are reviewed for impairment when indicators of impairment are present. The Company tests goodwill and indefinite-lived intangible assets for impairment at the reporting unit level and at least annually. The Company performs its annual impairment test during the fourth quarter after the annual forecasting process is completed, and also tests for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Periodically, Management of the Company assesses whether or not an indicator of impairment is present that would necessitate an impairment analysis be performed. For 2017, the Company opted to proceed directly to the two-step quantitative impairment test for all reporting units with goodwill. In the first step of the quantitative assessment, our assets and liabilities, including existing goodwill and other intangible assets, are assigned to the identified reporting units to determine the carrying value of the reporting units. The income approach and the market approach are weighted at 50% and 50%, respectively, in arriving at fair value. The discounted cash flow model requires several assumptions including future sales growth, EBIT (earnings before interest and taxes) margins and capital expenditures for the reporting units. The discounted cash flow model also requires the use of a discount rate and a terminal revenue growth rate (the revenue growth rate for the period beyond the years forecasted by the reporting units), as well as projections of future operating margins. The market approach requires several assumptions including EBITDA (earnings before interest, taxes, depreciation and amortization) multiples for comparable companies that operate in the same markets as the Company’s reporting units. The estimated fair value of all reporting units was substantially in excess of its respective carrying value, which resulted in a conclusion that no impairment existed. Additionally, the Company proceeded directly to the quantitative impairment test for some trade names with indefinite lives. The fair value of all trade names subject to the quantitative impairment test exceeded its respective carrying value, resulting in a conclusion that no impairment existed. For trade names not subject to the quantitative testing, the Company opted to perform a qualitative trade name impairment assessment and determined from the qualitative assessment that it was not more likely than not that the estimated fair values of the trade names were less than their carrying values; therefore, no further analysis was required. In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a trade name is less than its carrying amount, we assess relevant events and circumstances that may impact the fair value and the carrying amount of the trade name. The identification of relevant events and circumstances and how these may impact a trade name’s fair value or carrying amount involve significant judgments and assumptions. The judgment and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, Wabtec specific events, share price trends and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact. Warranty Costs Warranty costs are accrued based on Management’s estimates of repair or upgrade costs per unit and historical experience. Warranty expense was $50.4 million , $28.9 million and $35.4 million for 2017 , 2016 and 2015 , respectively. Accrued warranty was $153.1 million and $139.0 million at December 31, 2017 and 2016 , respectively. Income Taxes Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws. The provision for income taxes includes federal, state and foreign income taxes. Stock-Based Compensation The Company recognizes compensation expense for stock-based compensation based on the grant date fair value amortized ratably over the requisite service period following the date of grant. Financial Derivatives and Hedging Activities The Company has entered into foreign currency forward contracts to reduce the impact of changes in currency exchange rates. Foreign currency forward contracts are agreements with a counterparty to exchange two distinct currencies at a set exchange rate for delivery on a set date at some point in the future. There is no exchange of funds until the delivery date. At the delivery date, the Company can either take delivery of the currency or settle on a net basis. For further information regarding the foreign currency forward contracts, see Footnote 17. To reduce the impact of interest rate changes on a portion of its variable-rate debt, the Company has entered into an interest rate swap agreement with a notional value of $150 million . As of December 31, 2017 , the Company has recorded a current liability of $1.2 million and a corresponding offset in accumulated other comprehensive loss of $0.7 million , net of tax, related to these agreements. For further information regarding the interest rate swap agreement, see Footnote 17. Foreign Currency Translation Assets and liabilities of foreign subsidiaries, except for the Company’s Mexican operations whose functional currency is the U.S. Dollar, are translated at the rate of exchange in effect on the balance sheet date while income and expenses are translated at the average rates of exchange prevailing during the period. Foreign currency gains and losses resulting from transactions, and the translation of financial statements are recorded in the Company’s consolidated financial statements based upon the provisions of Accounting Standards Codification (“ASC”) 830, “Foreign Currency Matters.” The effects of currency exchange rate changes on intercompany transactions and balances of a long-term investment nature are accumulated and carried as a component of accumulated other comprehensive loss. The effects of currency exchange rate changes on intercompany transactions that are denominated in a currency other than an entity’s functional currency are charged or credited to earnings. Foreign exchange transaction losses recognized in other (expense) income, net were $6.6 million , $4.0 million and $4.7 million for 2017 , 2016 and 2015 , respectively. Noncontrolling Interests In accordance with ASC 810, the Company has classified noncontrolling interests as equity on our condensed consolidated balance sheets as of December 31, 2017 and 2016 . Net income attributable to noncontrolling interests was $8.5 million for the year ended December 31, 2016 . Net income attributable to noncontrolling interest was not material for the years ended December 31, 2017 and 2015 . Other comprehensive income attributable to noncontrolling interests for the years ended December 31, 2017, 2016 and 2015 was not material. Revenue Recognition Revenue is recognized in accordance with ASC 605 “Revenue Recognition,” The Company recognizes revenue when the following criteria are met: 1) persuasive evidence of an arrangement exists; 2) delivery has occurred; 3) an established sales price has been set with the customer; 4) collection of the sale revenue from the customer is reasonably assured; and 5) no contingencies exist. Delivery is considered to have occurred when the customer assumes the risk and rewards of ownership. The Company estimates and records provisions for quantity rebates and sales returns and allowances as an offset to revenue in the same period the related revenue is recognized, based upon its experience. These items are included as a reduction in deriving net sales. In general, the Company recognizes revenues on long-term contracts based on the percentage of completion method of accounting. The units-of-delivery method or other input-based or output-based measures, as appropriate, are used to measure the progress toward completion of individual contracts. Contract revenues and cost estimates are reviewed and revised quarterly at a minimum and adjustments are reflected in the accounting period as such amounts are determined. Provisions are made currently for estimated losses on uncompleted contracts. Unbilled accounts receivables were $366.2 million and $274.9 million , customer deposits were $369.7 million and $256.6 million , and provisions for loss contracts were $94.0 million and $60.5 million at December 31, 2017 and 2016 , respectively. Certain pre-production costs relating to long-term production and supply contracts have been deferred and will be recognized over the life of the contracts. Deferred pre-production costs were $20.2 million and $29.4 million at December 31, 2017 and 2016 , respectively. Significant Customers and Concentrations of Credit Risk The Company’s trade receivables are from rail and transit industry original equipment manufacturers, Class I railroads, railroad carriers and commercial companies that utilize rail cars in their operations, such as utility and chemical companies. No one customer accounted for more than 10% of the Company’s consolidated net sales in 2017 , 2016 or 2015 . Shipping and Handling Fees and Costs All fees billed to the customer for shipping and handling are classified as a component of net revenues. All costs associated with shipping and handling are classified as a component of cost of sales. Research and Development Research and development costs are charged to expense as incurred. For the years ended December 31, 2017 , 2016 and 2015 , the Company incurred costs of approximately $95.2 million , $71.4 million , and $71.2 million , respectively. Earnings Per Share Basic and diluted earnings per common share is computed in accordance with ASC 260 “Earnings Per Share.” Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and included in the computation of earnings per share pursuant to the two-class method included in ASC 260-10-55. (See Note 11 “Earnings Per Share” included herein) Reclassifications Certain prior year amounts have been reclassified, where necessary, to conform to the current year presentation. Refer to Recently Adopted Accounting Pronouncements below. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates. On an ongoing basis, Management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. Recently Issued Accounting Pronouncements In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02 "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". The amendments in this update address certain stranded income tax effects in accumulated other comprehensive income ("AOCI") resulting from the Tax Cuts and Jobs Act ("TCJA"). Current guidance requires the effect of a change in tax laws or rates on deferred tax balances to be reported in income from continuing operations in the accounting period that includes the period of enactment, even if the related income tax effects were originally charged or credited directly to AOCI. The amount of the reclassification would include the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of the enactment of TCJA related to items in AOCI. The updated guidance is effective for reporting periods beginning after December 15, 2018 and is to be applied retrospectively to each period in which the effect of the TCJA related to items remaining in AOCI are recognized or at the beginning of the period of adoption. Early adoption is permitted. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07 "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". The amendments in this update require the service cost component of net benefit costs to be reported in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside income from operations. This update also allows the service cost component to be eligible for capitalization when applicable. The ASU is effective for public companies in the fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption was permitted as of the beginning of an annual period. The amendments should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The Company does not expect the adoption of this guidance in 2018 to have a material impact on the Company's financial statements. In January 2017, the FASB issued ASU No. 2017-04 "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The amendments in this update eliminate the requirement to perform Step 2 of the goodwill impairment test. Instead, an entity should perform a goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value up to the carrying amount of the goodwill. The ASU is effective for public companies in the fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The impact of adopting this guidance could result in a change in the overall conclusion as to whether or not a reporting units' goodwill is impaired and the amount of an impairment charge recognized in the event a reporting units' carrying value exceeds its fair value. All of the Company's reporting units had fair values that were greater than the carrying value as of the Company's last quantitative goodwill impairment test, which was performed as of October 1, 2017. In November 2016, the FASB issued ASU No. 2016-18 "Statement of Cash Flows (Topic 230): Restricted Cash". The amendments in this update require a statement of cash flows to explain the change during the period in total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU is effective for public companies in the fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of this guidance in 2018 to have a material impact on the Company's financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 814)" which requires lessees to recognize a right of use asset and lease liability on the balance sheet for all leases with terms longer than 12 months. For leases with terms less than 12 months, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a right of use asset and lease liability. The ASU is effective for public companies in the fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-9, “Revenue from Contract with Customers.” The ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity’s nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Board voted to propose that the standard would take effect for reporting periods beginning after December 15, 2017 and that early adoption would be allowed as of the original effective date. The impact to results is not anticipated to be material because the analysis of the Company's current long-term contracts under the new revenue recognition standard supports the recognition of revenue over time under the cost-to-cost method for substantially all of our long-term contracts, which is consistent with our current revenue recognition model. The Company plans to adopt this accounting standard update using the modified retrospective method, with the cumulative effect of initially applying this update recognized in the first reporting period of 2018. The Company has evaluated new disclosure requirements and is implementing appropriate changes to its business processes and controls to support disclosure under the new guidance. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The ASU simplifies several aspects for the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The ASU became effective for public companies during interim and annual reporting periods beginning after December 15, 2016. In accordance with this update, the Company began recognizing all excess tax deficiencies and tax benefits from share-based payment awards as a benefit or expense to income tax in the income statement. This update has been adopted prospectively in accordance with the ASU and the impact of adoption on the income statement was not material. Additionally, in accordance with this update, the Company began classifying excess income tax benefits from exercise of stock options as an operating activity on the consolidated statement of cash flows. The Company elected to adopt this amendment retrospectively and the impact of the adoption on operating and financing cash flows was not material. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Faiveley Transport On November 30, 2016, the Company acquired majority ownership of Faiveley Transport S.A. (“Faiveley Transport”) under the terms of a Share Purchase Agreement (“Share Purchase Agreement”). Faiveley Transport is a leading global provider of value-added, integrated systems and services for the railway industry with annual sales of about $1.2 billion and more than 5,700 employees in 24 countries. Faiveley Transport supplies railway manufacturers, operators and maintenance providers with a range of value-added, technology-based systems and services in Energy & Comfort (air conditioning, power collectors and converters, and passenger information), Access & Mobility (passenger access systems and platform doors), and Brakes and Safety (braking systems and couplers). The transaction was structured as a step acquisition as follows: • On November 30, 2016, the Company acquired majority ownership of Faiveley Transport, after completing the purchase of the Faiveley family’s ownership interest under the terms of the Share Purchase Agreement, which directed the Company to pay €100 per share of Faiveley Transport, payable between 25% and 45% in cash at the election of those shareholders and the remainder payable in Wabtec stock. The Faiveley family’s ownership interest acquired by the Company represented approximately 51% of outstanding share capital and approximately 49% of the outstanding voting shares of Faiveley Transport. Upon completion of the share purchase under the Share Purchase Agreement, Wabtec commenced a tender offer for the remaining publicly traded Faiveley Transport shares. The public shareholders had the option to elect to receive €100 per share in cash or 1.1538 shares of Wabtec common stock per share of Faiveley Transport. The common stock portion of the consideration was subject to a cap on issuance of Wabtec common shares that was equivalent to the rates of cash and stock elected by the 51% owners. • On February 3, 2017, the initial cash tender offer was closed, which resulted in the Company acquiring approximately 27% of additional outstanding share capital and voting rights of Faiveley Transport for approximately $411.8 million in cash and $25.2 million in Wabtec stock. After the initial cash tender offer, the Company owned approximately 78% of outstanding share capital and 76% of voting rights. • On March 6, 2017, the final cash tender offer was closed, which resulted in the Company acquiring approximately 21% of additional outstanding share capital and 22% of additional outstanding voting rights of Faiveley Transport for approximately $303.2 million in cash and $0.3 million in Wabtec stock. After the final cash tender offer, the Company owned approximately 99% of the share capital and 98% of the voting rights of Faiveley Transport. • On March 21, 2017, a mandatory squeeze-out procedure was finalized, which resulted in the Company acquiring the Faiveley Transport shares not tendered in the offers for approximately $17.5 million in cash. This resulted in the Company owning 100% of the share capital and voting rights of Faiveley Transport. As of November 30, 2016, the date the Company acquired 51% of the share capital and 49% of the voting interest in Faiveley Transport, Faiveley Transport was consolidated under the variable interest entity model as the Company concluded that it was the primary beneficiary of Faiveley Transport as it then possessed the power to direct the activities of Faiveley Transport that most significantly impact its economic performance and it then possessed the obligation and right to absorb losses and benefits from Faiveley Transport. The purchase price paid for 100% ownership of Faiveley Transport was $1,507 million . The $744.7 million included as deposits in escrow on the consolidated balance sheet at December 31, 2016 was cash designated for use as consideration for the tender offers. The fair values of the assets acquired and liabilities assumed were determined using the income, cost and market approaches. The fair value measurements were primarily based on significant inputs that are not observable in the market and are considered Level 3. The December 31, 2016 consolidated balance sheet includes the assets and liabilities of Faiveley Transport, which have been measured at fair value. The fair value of the noncontrolling interest was preliminarily determined using the market price of Faiveley Transport’s publicly traded common stock multiplied by the number of publicly traded common shares outstanding at the acquisition date and is considered Level 1. The acquisition of the noncontrolling interest during the three months ended March 31, 2017 resulted in a $8.9 million increase to additional paid-in capital on the consolidated balance sheet which represents the difference in consideration paid to acquire the noncontrolling interest and the carrying value of noncontrolling interest at acquisition. The following table summarizes the final fair values of the Faiveley Transport assets acquired and liabilities assumed. In thousands Assets acquired Cash and cash equivalents $ 178,318 Accounts receivable 439,631 Inventories 205,649 Other current assets 70,930 Property, plant, and equipment 148,746 Goodwill 1,262,350 Trade names 346,328 Customer Relationships 233,529 Patents 1,201 Other noncurrent assets 184,564 Total assets acquired 3,071,246 Liabilities assumed Current liabilities 819,493 Debt 409,899 Other noncurrent liabilities 335,039 Total liabilities assumed 1,564,431 Net assets acquired $ 1,506,815 During the twelve months ended December 31, 2017, the estimated fair values for customer relationships and current liabilities were adjusted by $21.8 million and $65.3 million , respectively, for changes to initial estimates based on information that existed at the date of acquisition. Additionally, the estimated fair values for accounts receivable and current liabilities were adjusted by $2.8 million and $36.2 million , respectively, to correct errors in the preliminary estimated fair values of the Faiveley Transport assets acquired and liabilities assumed. Other noncurrent assets were adjusted by $30.0 million to record the deferred tax impact of these adjustments. As a result of these adjustments and other immaterial adjustments related to changes to initial estimates based on information that existed at the date of acquisition, goodwill increased by $74.1 million . Accounts receivable and current liabilities were adjusted by $64.3 million to correct an error in the preliminary estimated fair values of Faiveley Transport assets and liabilities assumed related to a factoring arrangement with recourse. Substantially all of the accounts receivable acquired are expected to be collectible. Included in current liabilities is $25.9 million of accrued compensation for acquired share-based stock plans that are obligated to be settled in cash. Contingent liabilities assumed as part of the transaction were not material. These contingent liabilities are related to environmental, legal and tax matters. Contingent liabilities are recorded at fair value in purchase accounting, aside from those pertaining to uncertainty in income taxes which are an exception to the fair value basis of accounting. Goodwill was calculated as the difference between the acquisition date fair value of the consideration transferred and the fair value of the net assets acquired, and represents the future economic benefits, including synergies and assembled workforce, that we expect to achieve as a result of the acquisition. Purchased goodwill is not deductible for tax purposes. The goodwill allocated to the Freight segment is $72.0 million and the goodwill allocated to the Transit segment is $1,190.4 million . Other Acquisitions The Company made the following acquisitions operating as a business unit or component of a business unit in the Freight Segment: • On December 4, 2017 , the Company acquired Melett Limited ("Melett"), a leader in the design, manufacture, and supply of high-quality turbochargers and replacement parts to the turbocharger aftermarket, for a purchase price of approximately $74.0 million , net of cash acquired, resulting in preliminary goodwill of $22.5 million , none of which will be deductible for tax purposes. • On April 5, 2017 , the Company acquired Thermal Transfer Corporation ("TTC"), a leading provider of heat transfer solutions for industrial applications, for a purchase price of approximately $32.5 million , net of cash acquired, resulting in preliminary goodwill of $16.3 million , all of which will be deductible for tax purposes. • On March 13, 2017 , the Company acquired Aero Transportation Products ("ATP"), a manufacturer of engineered covering systems for hopper freight cars, for a purchase price of approximately $65.3 million , net of cash acquired, resulting in preliminary goodwill of $29.0 million , all of which will be deductible for tax purposes. • On December 14, 2016 , the Company acquired Workhorse Rail LLC ("Workhorse"), a supplier of engineered freight car components, mainly for the aftermarket for a purchase price of approximately $43.8 million , net of cash acquired, resulting in goodwill of $22.3 million , 38% of which will be deductible for tax purposes. • On November 17, 2016 , the Company acquired the assets of Precision Turbo & Engine ("Precision Turbo"), a designer and manufacturer of high-performance, aftermarket turbochargers, wastegates, and heat exchangers for the automotive performance market for a purchase price of approximately $13.9 million , net of cash acquired, resulting in goodwill of $4.2 million , all of which will be deductible for tax purposes. • On May 5, 2016 , the Company acquired the assets of Unitrac Railroad Materials ("Unitrac"), a leading designer and manufacturer of railroad products and track work services for a purchase price of approximately $14.8 million , net of cash acquired, resulting in goodwill of $2.4 million , all of which will be deductible for tax purposes. For the Melett, TTC, and ATP acquisitions, the following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of the acquisitions. For the Workhorse, Precision Turbo, and Unitrac acquisitions, the following table summarizes the final fair value of assets acquired and liabilities assumed at the date of acquisition. Melett TTC ATP Workhorse Precision Turbo Unitrac December 4, 2017 April 5, 2017 March 13, 2017 December 14, 2016 November 17, 2016 May 5, 2016 In thousands Current assets $ 21,068 $ 3,746 $ 11,666 $ 9,137 $ 4,145 $ 11,476 Property, plant & equipment 5,917 5,909 5,354 — 1,317 1,768 Goodwill 22,501 16,309 29,034 22,273 4,248 2,442 Other intangible assets 39,259 12,300 25,000 21,500 5,200 1,230 Total assets acquired 88,745 38,264 71,054 52,910 14,910 16,916 Total liabilities assumed (14,789 ) (5,753 ) (5,800 ) (9,083 ) (1,057 ) (2,145 ) Net assets acquired $ 73,956 $ 32,511 $ 65,254 $ 43,827 $ 13,853 $ 14,771 The Company made the following acquisitions operating as a business unit or component of a business unit in the Transit Segment: • On October 2, 2017 , the Company acquired AM General Contractor ("AM General"), a manufacturer of safety systems, mainly for transit rail cars for a purchase price of approximately $10.4 million , net of cash acquired, resulting in preliminary goodwill of $12.9 million , none of which will be deductible for tax purposes. • On August 1, 2016 , the Company acquired Gerken Group S.A. ("Gerken"), a manufacturer of specialty carbon and graphite products for rail and other industrial applications, for a purchase price of approximately $62.8 million , net of cash acquired, resulting in goodwill of $17.5 million , none of which will be deductible for tax purposes. For the AM General acquisition, the following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed at the date of acquisition. For the Gerken acquisition, the following table summarizes the final fair value of the assets acquired and liabilities assumed at the date of the acquisition. AM General Gerken October 2, 2017 August 1, 2016 In thousands Current assets $ 6,611 $ 32,706 Property, plant & equipment 4,140 7,667 Goodwill 12,943 17,470 Other intangible assets 12,097 30,560 Other assets — 1,706 Total assets acquired 35,791 90,109 Total liabilities assumed (25,375 ) (27,262 ) Net assets acquired $ 10,416 $ 62,847 The acquisitions listed above include escrow deposits of $44.4 million , which may be released to the Company for indemnity and other claims in accordance with the purchase and escrow agreements. The total goodwill and other intangible assets for acquisitions listed in the tables above was $2,117.8 million , of which $1,389.6 million and $728.2 million was related to goodwill and other intangible assets, respectively. Of the allocation of $728.2 million of acquired intangible assets, $380.9 million was assigned to trade names, $336.9 million was assigned to customer relationships, and $5.0 million was assigned to intellectual property. The trade names are considered to have an indefinite useful life while the intellectual property and customer relationships’ useful life is 20 years. The Company also made smaller acquisitions not listed above which are individually and collectively immaterial. The following unaudited pro forma financial information presents income statement results as if the acquisitions listed above had occurred January 1, 2016: For the year ended In thousands 2017 2016 Net sales $ 3,946,244 $ 4,212,617 Gross profit 1,095,101 1,275,835 Net income attributable to Wabtec shareholders 271,783 349,852 Diluted earnings per share As Reported $ 2.72 $ 3.34 Pro forma $ 2.82 $ 3.83 The historical consolidated financial information of the Company and the acquisitions detailed above have been adjusted in the pro forma information to give effect to pro forma events that are (1) directly attributable to the transactions, (2) factually supportable and (3) expected to have a continuing impact on the combined results. Pro forma data may not be indicative of the results that would have been obtained had these acquisitions occurred at the beginning of the periods presented, nor is it intended to be a projection of future results. |
SUPPLEMENTAL CASH FLOW DISCLOSU
SUPPLEMENTAL CASH FLOW DISCLOSURES | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW DISCLOSURES | SUPPLEMENTAL CASH FLOW DISCLOSURES Year Ended December 31, 2017 2016 2015 In thousands Interest paid during the year $ 75,317 $ 30,211 $ 19,372 Income taxes paid during the year, net of amount refunded $ 89,379 $ 121,563 $ 147,958 Business acquisitions: Fair value of assets acquired 452,209 3,118,420 156,020 Liabilities assumed 207,788 1,453,382 20,789 Non-controlling interest (acquired) assumed (738,024 ) 760,343 — Stock and cash paid 982,445 904,695 135,231 Less: Cash acquired 35,408 186,903 5,681 Stock used for acquisition 25,500 534,679 — Net cash paid $ 921,537 $ 183,113 $ 129,550 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The components of inventory, net of reserves, were: December 31, In thousands 2017 2016 Raw materials $ 378,481 $ 331,465 Work-in-progress 167,390 145,462 Finished goods 196,763 181,583 Total inventories $ 742,634 $ 658,510 |
PROPERTY, PLANT & EQUIPMENT
PROPERTY, PLANT & EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT & EQUIPMENT | PROPERTY, PLANT & EQUIPMENT The major classes of depreciable assets are as follows: December 31, In thousands 2017 2016 Machinery and equipment $ 728,257 $ 645,354 Buildings and improvements 259,561 225,307 Land and improvements 38,228 41,569 Property, plant and equipment 1,026,046 912,230 Less: accumulated depreciation (452,074 ) (393,854 ) Total $ 573,972 $ 518,376 The estimated useful lives of property, plant and equipment are as follows: Years Land improvements 10 to 20 Building and improvements 20 to 40 Machinery and equipment 3 to 15 Depreciation expense was $66.7 million , $47.1 million , and $43.1 million for 2017 , 2016 and 2015 , respectively. |
INTANGIBLES
INTANGIBLES | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLES | INTANGIBLES Goodwill and other intangible assets with indefinite lives are not amortized. Other intangibles with definite lives are amortized on a straight-line basis over their estimated economic lives. Goodwill and indefinite lived intangible assets are reviewed annually during the fourth quarter for impairment (See Note 2 “Summary of Significant Accounting Policies” included herein). Goodwill and indefinite live intangible assets were not impaired at December 31, 2017 and 2016 . The change in the carrying amount of goodwill by segment for the year ended December 31, 2017 is as follows: Freight Transit In thousands Segment Segment Total Balance at December 31, 2016 $ 550,902 $ 1,527,863 $ 2,078,765 Additions 152,096 34,391 186,487 Foreign currency impact 15,960 178,891 194,851 Balance at December 31, 2017 $ 718,958 $ 1,741,145 $ 2,460,103 As of December 31, 2017 and 2016 , the Company’s trade names had a net carrying amount of $603.4 million and $510.5 million , respectively, and the Company believes these intangibles have indefinite lives. Intangible assets of the Company, other than goodwill and trade names, consist of the following: December 31, In thousands 2017 2016 Patents, non-compete and other intangibles, net of accumulated amortization of $43,021 and $40,638 $ 17,554 $ 15,360 Customer relationships, net of accumulated amortization of $126,824 and $87,334 583,459 528,068 Total $ 601,013 $ 543,428 The remaining weighted average useful lives of patents, customer relationships and intellectual property were 10 years , 17 years and 15 years respectively. Amortization expense for intangible assets was $36.5 million , $22.7 million , and $21.7 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Estimated amortization expense for the five succeeding years is as follows (in thousands): 2018 $ 38,059 2019 36,076 2020 34,050 2021 33,777 2022 33,489 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following: December 31, In thousands 2017 2016 3.45% Senior Notes due 2026, net of unamortized debt $ 747,655 $ 747,474 4.375% Senior Notes due 2023, net of unamortized 248,567 248,310 Revolving Credit Facility and Term Loan, net of unamortized 853,124 796,150 Schuldschein Loan 11,998 98,671 Other Borrowings 6,860 1,153 Capital Leases 2,324 1,018 Total 1,870,528 1,892,776 Less - current portion 47,225 129,809 Long-term portion $ 1,823,303 $ 1,762,967 Wabtec's acquisition of the controlling stake of Faiveley Transport triggered the early repayment of a syndicated loan and the mandatory offer to investors to repay the US and Schuldschein private placements. Both the syndicated loan and US private placements were repaid in full in December 2016. 3.45% Senior Notes Due November 2026 In October 2016 , the Company issued $750.0 million of Senior Notes due in 2026 (the “2016 Notes”). The 2016 Notes were issued at 99.965% of face value. Interest on the 2016 Notes accrues at a rate of 3.45% per annum and is payable semi-annually on May 15 and November 15 of each year. The proceeds were used to finance the cash portion of the Faiveley Transport acquisition, refinance Faiveley Transport’s indebtedness, and for general corporate purposes. The principal balance is due in full at maturity. The Company incurred $2.7 million of deferred financing costs related to the issuance of the 2016 Notes. The 2016 Notes are senior unsecured obligations of the Company and rank pari passu with all existing and future senior debt and senior to all existing and future subordinated indebtedness of the Company. The indenture under which the 2016 Notes were issued contains covenants and restrictions which limit among other things, the following: the incurrence of indebtedness, payment of dividends and certain distributions, sale of assets, change in control, mergers and consolidations and the incurrence of liens. The Company is in compliance with the restrictions and covenants in the indenture under which the 2016 Notes were issued and expects that these restrictions and covenants will not be any type of limiting factor in executing our operating activities. 4.375% Senior Notes Due August 2023 In August 2013, the Company issued $250.0 million of Senior Notes due in 2023 (the “2013 Notes”). The 2013 Notes were issued at 99.879% of face value. Interest on the 2013 Notes accrues at a rate of 4.375% per annum and is payable semi-annually on February 15 and August 15 of each year. The proceeds were used to repay debt outstanding under the Company’s existing credit agreement, and for general corporate purposes. The principal balance is due in full at maturity. The Company incurred $2.6 million of deferred financing costs related to the issuance of the 2013 Notes. The 2013 Notes are senior unsecured obligations of the Company and rank pari passu with all existing and future senior debt and senior to all existing and future subordinated indebtedness of the Company. The indenture under which the 2013 Notes were issued contains covenants and restrictions which limit among other things, the following: the incurrence of indebtedness, payment of dividends and certain distributions, sale of assets, change in control, mergers and consolidations and the incurrence of liens. The Company is in compliance with the restrictions and covenants in the indenture under which the 2013 Notes were issued and expects that these restrictions and covenants will not be any type of limiting factor in executing our operating activities. 2016 Refinancing Credit Agreement On June 22, 2016 , the Company amended its existing revolving credit facility with a consortium of commercial banks. This “2016 Refinancing Credit Agreement” provides the Company with a $1.2 billion , 5 year revolving credit facility and a $400.0 million delayed draw term loan (the “Term Loan”). The Company incurred approximately $3.3 million of deferred financing cost related to the 2016 Refinancing Credit Agreement. The facility expires on June 22, 2021 . The 2016 Refinancing Credit Agreement borrowings bear variable interest rates indexed as described below. At December 31, 2017 , the Company had available bank borrowing capacity, net of $35.4 million of letters of credit, of approximately $679.0 million , subject to certain financial covenant restrictions. The Term Loan was drawn on November 25, 2016. The Company incurred a 10 basis point commitment fee from June 22, 2016 until the initial draw on November 25, 2016. Under the 2016 Refinancing Credit Agreement, the Company may elect a Base Rate of interest for U.S. Dollar denominated loans or, for certain currencies, an interest rate based on the London Interbank Offered Rate (“LIBOR”) of interest, or other rates appropriate for such currencies (in any case, “the Alternate Rate”). The Base Rate adjusts on a daily basis and is the greater of the Federal Funds Effective Rate plus 0.50% per annum, the PNC, N.A. prime rate or the Daily LIBOR Rate plus 100 basis points, plus a margin that ranges from 0 to 75 basis points. The Alternate Rate is based on the quoted rates specific to the applicable currency, plus a margin that ranges from 75 to 175 basis points. Both the Base Rate and Alternate Rate margins are dependent on the Company’s consolidated total indebtedness to EBITDA ratios. The initial Base Rate margin is 0 basis points and the Alternate Rate margin is 175 basis points . At December 31, 2017, the weighted average interest rate on the Company’s variable rate debt was 2.92% . On January 12, 2012, the Company entered into a forward starting interest rate swap agreement with a notional value of $150.0 million . The effective date of the interest rate swap agreement is July 31, 2013, and the termination date was November 7, 2016. The impact of the interest rate swap agreement converted a portion of the Company’s outstanding debt from a variable rate to a fixed-rate borrowing. During the term of the interest rate swap agreement the interest rate on the notional value was fixed at 1.415% plus the Alternate Rate margin. On June 5, 2014, the Company entered into a forward starting interest rate swap agreement with a notional value of $150.0 million . The effective date of the interest rate swap agreement is November 7, 2016, and the termination date is December 19, 2018. The impact of the interest rate swap agreement converts a portion of the Company’s outstanding debt from a variable rate to a fixed-rate borrowing. During the term of the interest rate swap agreement the interest rate on the notional value will be fixed at 2.56% plus the Alternate Rate margin. As for these agreements, the Company is exposed to credit risk in the event of nonperformance by the counterparties. However, since only the cash interest payments are exchanged, exposure is significantly less than the notional amount. The counterparties are large financial institutions with excellent credit ratings and history of performance. The Company currently believes the risk of nonperformance is negligible. The 2016 Refinancing Credit Agreement limits the Company’s ability to declare or pay cash dividends and prohibits the Company from declaring or making other distributions, subject to certain exceptions. The 2016 Refinancing Credit Agreement contains various other covenants and restrictions including the following limitations: incurrence of additional indebtedness; mergers, consolidations, sales of assets and acquisitions; additional liens; sale and leasebacks; permissible investments, loans and advances; certain debt payments; and imposes a minimum interest expense coverage ratio of 3.0 and a maximum debt to EBITDA ratio of 3.25 . The Company is in compliance with the restrictions and covenants of the 2016 Refinancing Credit Agreement and does not expect that these measurements will limit the Company in executing our operating activities. Schuldschein Loan, Due 2016 In conjunction with the acquisition of Faiveley Transport, Wabtec acquired $137.2 million of a Schuldshein private placement loan which was originally issued by Faiveley Transport on March 5, 2014 in Germany, in which approximately 20 international investors participated. This loan is denominated in euros. Subsequent to the acquisition of Faiveley Transport, the Company repaid $125.3 million of the outstanding Schuldschein loan. The remaining balance of $12.0 million as of December 31, 2017 matures on March 5, 2024 and bears a fixed rate of 4.00% . Debt and Capital Leases Scheduled principal repayments of debt and capital lease balances as of December 31, 2017 are as follows: 2018 $ 47,225 2019 330,901 2020 559 2021 483,379 2022 208 Future years 1,008,256 Total $ 1,870,528 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Benefit Pension Plans The Company sponsors defined benefit pension plans that cover certain U.S., Canadian, German, and United Kingdom employees and which provide benefits of stated amounts for each year of service of the employee. The Company uses a December 31 measurement date for the plans. The following tables provide information regarding the Company’s defined benefit pension plans summarized by U.S. and international components. Obligations and Funded Status U.S. International In thousands 2017 2016 2017 2016 Change in projected benefit obligation Obligation at beginning of year $ (45,512 ) $ (46,120 ) $ (319,551 ) $ (195,311 ) Opening balance sheet adjustment — — (5,321 ) — Service cost (344 ) (337 ) (2,740 ) (1,379 ) Interest cost (1,422 ) (1,475 ) (7,310 ) (5,774 ) Employee contributions — — (880 ) (195 ) Plan curtailments and amendments — — 4,153 2,061 Benefits paid 3,079 3,893 12,906 9,427 Acquisition — — — (114,242 ) Actuarial gain (loss) (14 ) (1,473 ) (3,009 ) (33,330 ) Effect of currency rate changes — — (31,265 ) 19,192 Obligation at end of year $ (44,213 ) $ (45,512 ) $ (353,017 ) $ (319,551 ) Change in plan assets Fair value of plan assets at beginning of year $ 35,802 $ 37,640 $ 241,283 $ 168,069 Opening balance sheet adjustment — — 2,058 — Actual return on plan assets 4,223 2,055 19,102 20,066 Employer contributions 486 — 13,479 6,933 Employee contributions — — 880 195 Benefits paid (3,079 ) (3,893 ) (12,905 ) (9,427 ) Acquisition — — — 70,519 Settlements (4,523 ) Effect of currency rate changes — — 22,228 (15,072 ) Fair value of plan assets at end of year $ 37,432 $ 35,802 $ 281,602 $ 241,283 Funded status Fair value of plan assets $ 37,432 $ 35,802 $ 281,602 $ 241,283 Benefit obligations (44,213 ) (45,512 ) (353,017 ) (319,551 ) Funded status $ (6,781 ) $ (9,710 ) $ (71,415 ) $ (78,268 ) Amounts recognized in the statement of financial position consist of: Noncurrent assets $ — $ — $ 10,577 $ 7,130 Current liabilities — — (2,158 ) (2,042 ) Noncurrent liabilities (6,781 ) (9,710 ) (79,834 ) (83,356 ) Net amount recognized $ (6,781 ) $ (9,710 ) $ (71,415 ) $ (78,268 ) Amounts recognized in accumulated other comprehensive income (loss) consist of: Prior service cost (6 ) (8 ) (32 ) (56 ) Net actuarial loss (20,418 ) (23,884 ) (54,043 ) (56,411 ) Net amount recognized $ (20,424 ) $ (23,892 ) $ (54,075 ) $ (56,467 ) The aggregate accumulated benefit obligation for the U.S. pension plans was $43.3 million and $44.5 million as of December 31, 2017 and 2016 , respectively. The aggregate accumulated benefit obligation for the international pension plans was $344.3 million and $312.2 million as of December 31, 2017 and 2016 , respectively. U.S. International In thousands 2017 2016 2017 2016 Information for pension plans with accumulated benefit obligations in excess of Plan assets: Projected benefit obligation $ (44,213 ) $ (45,512 ) $ (282,077 ) $ (255,682 ) Accumulated benefit obligation (43,340 ) (44,530 ) (274,557 ) (249,729 ) Fair value of plan assets 37,432 35,802 200,218 170,367 Information for pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ (44,213 ) $ (45,512 ) $ (283,106 ) $ (256,530 ) Fair value of plan assets 37,432 35,802 201,115 171,133 Components of Net Periodic Benefit Costs U.S. International In thousands 2017 2016 2015 2017 2016 2015 Service cost $ 344 $ 337 $ 381 $ 2,740 $ 1,379 $ 2,015 Interest cost 1,422 1,475 1,914 7,310 5,774 7,091 Expected return on plan assets (1,731 ) (2,076 ) (2,168 ) (12,412 ) (9,971 ) (9,591 ) Amortization of initial net obligation and prior service cost 3 3 3 27 61 212 Amortization of net loss 989 914 1,062 2,846 1,818 2,379 Settlement and curtailment losses recognized — — — 768 218 — Net periodic benefit cost $ 1,027 $ 653 $ 1,192 $ 1,279 $ (721 ) $ 2,106 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income during 2017 are as follows: In thousands U.S. International Net gain (loss) arising during the year $ 2,477 $ 3,683 Effect of exchange rates — (4,945 ) Amortization, settlement, or curtailment recognition of net transition obligation — 768 Amortization or curtailment recognition of prior service cost 3 27 Amortization or settlement recognition of net loss 989 2,846 Total recognized in other comprehensive gain $ 3,469 $ 2,379 Total recognized in net periodic benefit cost and other comprehensive gain $ 2,442 $ 1,100 The weighted average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed. U.S. International 2017 2016 2015 2017 2016 2015 Discount rate 3.56 % 3.95 % 4.21 % 2.40 % 2.51 % 3.56 % Expected return on plan assets 4.95 % 5.70 % 5.70 % 5.02 % 6.07 % 5.81 % Rate of compensation increase 3.00 % 3.00 % 3.00 % 2.54 % 2.54 % 3.10 % The discount rate is based on settling the pension obligation with high grade, high yield corporate bonds, and the rate of compensation increase is based on actual experience. The expected return on plan assets is based on historical performance as well as expected future rates of return on plan assets considering the current investment portfolio mix and the long-term investment strategy. As of December 31, 2017 , the following table represents the amounts included in other comprehensive loss that are expected to be recognized as components of periodic benefit costs in 2018 . In thousands U.S. International Prior service cost 3 22 Net actuarial loss 970 2,193 $ 973 $ 2,215 Pension Plan Assets The Company has established formal investment policies for the assets associated with our pension plans. Objectives include maximizing long-term return at acceptable risk levels and diversifying among asset classes. Asset allocation targets are based on periodic asset liability study results which help determine the appropriate investment strategies. The investment policies permit variances from the targets within certain parameters. The plan assets consist primarily of equity security funds, debt security funds, and temporary cash and cash equivalent investments. The assets held in these funds are generally actively managed and are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. (See Note 18 “Fair Value Measurement” included herein). Plan assets by asset category at December 31, 2017 and 2016 are as follows: U.S. International In thousands 2017 2016 2017 2016 Pension Plan Assets Equity security funds $ 18,122 $ 17,446 $ 100,453 $ 92,201 Debt security funds and other 18,304 17,038 178,730 145,003 Cash and cash equivalents 1,006 1,318 2,419 4,079 Fair value of plan assets $ 37,432 $ 35,802 $ 281,602 $ 241,283 The U.S. plan has a target asset allocation of 55% equity securities and 45% debt securities. The International plan has a target asset allocation of 30% equity securities, 40% debt securities and 30% in other investments. Investment policies are determined by the respective Plan’s Pension Committee and set forth in its Investment Policy. Rebalancing of the asset allocation occurs on a quarterly basis. The following tables summarize our pension plan assets measured at fair value on a recurring basis by fair value hierarchy level (See Note 18): December 31, 2017 In thousands NAV Level 1 Level 2 Level 3 Total US: Equity $ — $ 18,122 $ — $ — $ 18,122 Debt Securities — 4,273 14,031 — 18,304 Cash and cash equivalents — 1,006 — — 1,006 International: Equity $ 4,586 $ 38,647 $ 95,641 $ — $ 138,874 Debt Securities — — 111,204 — 111,204 Insurance Contracts — — 15,893 13,123 29,016 Cash and cash equivalents — 2,507 — — 2,507 Total $ 4,586 $ 64,555 $ 236,769 $ 13,123 $ 319,033 December 31, 2016 In thousands NAV Level 1 Level 2 Level 3 Total US: Equity $ — $ 17,446 $ — $ — $ 17,446 Debt Securities — 4,766 12,272 — 17,038 Cash and cash equivalents — 1,318 — — 1,318 International: Equity $ 3,589 $ 38,053 $ 78,694 $ — $ 120,336 Debt Securities — — 90,508 — 90,508 Insurance Contracts — — 13,037 12,996 26,033 Cash and cash equivalents — 4,406 — — 4,406 Total $ 3,589 $ 65,989 $ 194,511 $ 12,996 $ 277,085 The following table presents a reconciliation of Level 3 assets: In thousands Total Balance at December 31, 2015 $ — Net purchases, issuances, and settlements 56 Net realized and unrealized gains (losses) included in earnings (5 ) Business acquisition 12,949 Other (4 ) Balance at December 31, 2016 $ 12,996 Net purchases, issuances, and settlements 778 Net realized and unrealized gains (losses) included in earnings 375 Opening balance sheet adjustment (1,308 ) Other 282 Balance at December 31, 2017 $ 13,123 Cash Flows The Company’s funding methods are based on governmental requirements and differ from those methods used to recognize pension expense. The Company expects to contribute $7.3 million and $0.0 million to the international and U.S. plans, respectively, during 2018 . Benefit payments expected to be paid to plan participants are as follows: In thousands U.S. International Year ended December 31, 2018 $ 3,250 $ 12,401 2019 3,301 12,403 2020 3,325 13,156 2021 3,160 13,799 2022 3,125 14,538 2023 through 2027 14,276 77,817 Postretirement Benefit Plans In addition to providing pension benefits, the Company has provided certain unfunded postretirement health care and life insurance benefits for a portion of North American employees. The Company is not obligated to pay health care and life insurance benefits to individuals who had retired prior to 1990. The Company uses a December 31 measurement date for all postretirement plans. The following tables provide information regarding the Company’s post retirement benefit plans summarized by U.S. and international components. Obligations and Funded Status U.S. International In thousands 2017 2016 2017 2016 Change in projected benefit obligation Obligation at beginning of year $ (11,876 ) $ (12,959 ) $ (3,425 ) $ (3,290 ) Service cost (5 ) (4 ) (28 ) (29 ) Interest cost (350 ) (389 ) (98 ) (99 ) Plan amendments — 6 — — Benefits paid 970 720 199 133 Acquisition — (143 ) — — Actuarial gain (loss) (84 ) 893 (131 ) (42 ) Effect of currency rate changes — — (237 ) (98 ) Obligation at end of year $ (11,345 ) $ (11,876 ) $ (3,720 ) $ (3,425 ) Change in plan assets Fair value of plan assets at beginning of year $ — $ — $ — $ — Employer contributions 970 720 199 133 Benefits paid (970 ) (720 ) (199 ) (133 ) Fair value of plan assets at end of year $ — $ — $ — $ — Funded status Fair value of plan assets $ — $ — $ — $ — Benefit obligations (11,345 ) (11,876 ) (3,720 ) (3,425 ) Funded status $ (11,345 ) $ (11,876 ) $ (3,720 ) $ (3,425 ) U.S. International In thousands 2017 2016 2017 2016 Amounts recognized in the statement of financial position consist of: Current liabilities $ (1,046 ) $ (1,084 ) $ (208 ) $ (185 ) Noncurrent liabilities (10,299 ) (10,792 ) (3,512 ) (3,160 ) Net amount recognized $ (11,345 ) $ (11,876 ) $ (3,720 ) $ (3,345 ) Amounts recognized in accumulated other comprehensive income (loss) consist of: Prior service credit 19,616 21,134 9 15 Net actuarial (loss) gain (18,882 ) (20,023 ) 154 292 Net amount recognized $ 734 $ 1,111 $ 163 $ 307 Components of Net Periodic Benefit Cost U.S. International In thousands 2017 2016 2015 2017 2016 2015 Service cost $ 5 $ 4 $ 9 $ 28 $ 29 $ 38 Interest cost 350 389 1,233 98 99 128 Amortization of initial net obligation and prior service cost (1,519 ) (1,709 ) (2,295 ) (7 ) (7 ) (7 ) Amortization of net loss (gain) 1,225 1,287 1,356 (23 ) (29 ) (30 ) Net periodic benefit cost (credit) $ 61 $ (29 ) $ 303 $ 96 $ 92 $ 129 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income during 2017 are as follows: In thousands U.S. International Net loss arising during the year (84 ) (131 ) Effect of exchange rates — 16 Amortization or curtailment recognition of prior service cost (1,519 ) (7 ) Amortization or settlement recognition of net loss (gain) 1,225 (23 ) Total recognized in other comprehensive income (loss) $ (378 ) $ (145 ) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (317 ) $ (53 ) The weighted average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed and also the net periodic benefit cost for the following year. The discount rate is based on settling the pension obligation with high grade, high yield corporate bonds. U.S. International 2017 2016 2015 2017 2016 2015 Discount rate 3.43 % 3.76 % 3.95 % 3.21 % 3.46 % 3.80 % As of December 31, 2017 , the following table represents the amounts included in other comprehensive loss that are expected to be recognized as components of periodic benefit costs in 2018 . In thousands U.S. International Prior service credit (1,519 ) (7 ) Net actuarial loss (gain) 1,216 (8 ) $ (303 ) $ (15 ) The assumed health care cost trend rate for the U.S. plans grades from an initial rate of 6.30% to an ultimate rate of 4.50% by 2027 and for international plans from 6.23% to 4.50% by 2027 . A 1.0% increase in the assumed health care cost trend rate will increase the service and interest cost components of the expense recognized for the U.S. and international post-retirement plans by less than $0.1 million for 2017, and increase the accumulated post-retirement benefit obligation by less than $0.1 million and $0.3 million, respectively. A 1.0% decrease in the assumed health care cost trend rate will decrease the service and interest cost components of the expense recognized for the U.S. and international post-retirement plans by less than $0.1 million for 2017 , and decrease the accumulated post-retirement benefit obligation by less than $0.1 million and $0.3 million, respectively. Cash Flows Benefit payments expected to be paid to plan participants are as follows: In thousands U.S. International Year ended December 31, 2018 $ 1,046 $ 208 2019 1,024 220 2020 986 225 2021 950 245 2022 908 251 2023 through 2027 3,956 1,352 Defined Contribution Plans The Company also participates in certain defined contribution plans and multiemployer pension plans. Costs recognized under these plans are summarized as follows: For the year ended In thousands 2017 2016 2015 Multi-employer pension and health & welfare plans $ 1,522 $ 2,054 $ 2,584 401(k) savings and other defined contribution plans 23,209 23,062 21,399 Total $ 24,731 $ 25,116 $ 23,983 The 401(k) savings plan is a participant directed defined contribution plan that holds shares of the Company’s stock as one of the investment options. At December 31, 2017 and 2016 , the plan held on behalf of its participants about 495,274 shares with a market value of $40.3 million , and 551,482 shares with a market value of $45.8 million , respectively. Additionally, the Company has stock option based benefit and other plans further described in Note 12. The Company contributes to several multi-employer defined benefit pension plans under collective bargaining agreements that cover certain of its union-represented employees. The risks of participating in such plans are different from the risks of single-employer plans. Assets contributed to a multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. If the Company ceases to have an obligation to contribute to the multi-employer plan in which it had been a contributing employer, it may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of the Company’s participation in the plan prior to the cessation of its obligation to contribute. The amount that an employer that has ceased to have an obligation to contribute to a multi-employer plan is required to pay to the plan is referred to as a withdrawal liability. The Company’s participation in multi-employer plans for the year ended December 31, 2017 is outlined in the table below. For plans that are not individually significant to the Company, the total amount of contributions is presented in the aggregate. Pension Protection FIP/ Contributions by Expiration RP Status Surcharge Collective Pension Fund EIN/PN (a) 2016 2015 Implemented (c) 2017 2016 2015 (d) Agreements Idaho Operating Engineers- EIN # 91-6075538 Green Green No $ 1,020 (1) $ 1,306 (1 ) $ 1,820 (1 ) No 6/30/2018 Employers Pension Trust Fund Plan# 001 Automobile Mechanics' Local No 701 Union and EIN # 36-6042061 Yellow Red Yes (2) $ 501 (3) $ 748 $ 764 No (4) 6/1/2018 Industry Pension Plan Plan # 001 Total Contributions $ 1,521 $ 2,054 $ 2,584 (1) The Company’s contribution represents more than 5% of the total contributions to the plan. (2) The Pension Fund’s board adopted a Funding Improvement Plan on October 21, 2015, continuing the existing plan which increased the weekly pension fund contribution rates by $75 with corresponding decreases to the weekly welfare fund contribution rates until December 31, 2017. (3) The number of employees covered by this fund decreased due to the closure of the Bensenville, Illinois facility, which affected the period-to-period comparability of 2016 and 2017 contributions. (4) Critical status triggered a 5% surcharge on employer contributions effective June 2012. Effective January 1, 2013, this surcharge increases to 10% . The surcharge ended on October 21, 2015 when the rehabilitation plan commenced. (a) The “EIN / PN” column provides the Employer Identification Number and the three-digit plan number assigned to a plan by the Internal Revenue Service. (b) The most recent Pension Protection Act Zone Status available for 2017 and 2016 is for plan years that ended in 2016 and 2015, respectively. The zone status is based on information provided to the Company and other participating employers by each plan and is certified by the plan’s actuary. A plan in the “red” zone has been determined to be in “critical status”, based on criteria established under the Internal Revenue Code (“Code”), and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Code, and is generally less than 80% funded. A plan in the “green” zone has been determined to be neither in “critical status” nor in “endangered status”, and is generally at least 80% funded. (c) The “FIP/RP Status Pending/Implemented” column indicates whether a Funding Improvement Plan, as required under the Code to be adopted by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2017 . (d) The “Surcharge Imposed” column indicates whether the Company’s contribution rate for 2017 included an amount in addition the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status”, in accordance with the requirements of the Code. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company is responsible for filing consolidated U.S., foreign and combined, unitary or separate state income tax returns. The Company is responsible for paying the taxes relating to such returns, including any subsequent adjustments resulting from the redetermination of such tax liabilities by the applicable taxing authorities. On December 23, 2017, the French government enacted the Finance Act for 2018 and it was published in the Official Bulletin on December 31, 2017. The Finance act reduced the French corporate tax rate from 28% in 2020 to 25%, enacting an additional 1.5% reduction in each year 2021 and 2022. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code that affect fiscal 2017, including, but not limited to requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries that is payable over eight years (the "Transition Tax"). The Tax Act also establishes new tax laws that will affect 2018 and later years, including, but not limited to, a reduction of the U.S. federal corporate tax rate from 35% to 21%, repeals the Domestic Manufacturing Deduction, a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries, new provisions designed to tax global intangible low-taxed income ("GILTI"), tax certain deductible base erosion payments called base erosion and anti-abuse tax (“BEAT”), and new interest expense limitation provisions. In relation to the initial analysis of the impact of the all tax law changes, the Company has recorded a net tax expense of $4.3 million . This includes a provisional expense for the U.S. tax reform bill of $55.0 million , as well as a net benefit for the revaluation of deferred tax assets and liabilities of $50.7 million . The Company has not completed its accounting for the income tax effects of the Tax Act. Where the Company has been able to make reasonable estimates of the effects for which its analysis is not yet complete, the Company has recorded provisional amounts in accordance with SEC Staff Accounting Bulletin No. 118. Where the Company has not yet been able to make reasonable estimates of the impact of certain elements, the Company has not recorded any amounts related to those elements and has continued accounting for them in accordance with ASC 740 on the basis of the tax laws in effect immediately prior to the enactment of the Tax Act. The Company's accounting for the following impacted areas of the Tax Act is incomplete. However, the Company was able to make reasonable estimates of certain effects and, therefore, has recorded provisional amounts as follows: Revaluation of deferred tax assets and liabilities : The Tax Act reduces the U.S. federal corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017. In addition, the Tax Act makes certain changes to the depreciation rules and implements new limits on the deductibility of certain executive compensation. The Company has evaluated these changes and has recorded a provisional benefit to net deferred taxes of $24.6 million . The Company is still completing its calculation of the impact of these changes on its deferred tax balances. Transition Tax on unrepatriated foreign earnings: The Transition Tax on unrepatriated foreign earnings is a tax on previously untaxed accumulated and current earnings and profits ("E&P") of the Company's foreign subsidiaries. To determine the amount of the Transition Tax, the Company must determine, among other factors, the amount of post-1986 E&P of its foreign subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. The Company was able to make a reasonable estimate of the Transition Tax and has recorded a provisional Transition Tax expense of $51.8 million . The Company is continuing to gather additional information to more precisely compute the amount of the Transition Tax to complete its calculation of E&P as well as the final determination of non-U.S. income taxes paid. The Company's accounting for the following elements of the Tax Act is incomplete, and it has not yet been able to make reasonable estimates of the effects of these items. Therefore, no provisional amounts were recorded. Global intangible low taxed income ("GILTI"): The Tax Act creates a new requirement that certain income (i.e., GILTI) earned by foreign subsidiaries must be included currently in the gross income of the U.S. shareholder. Due to the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of the Tax Act and the application of ASC 740. Under U.S. GAAP, the Company is permitted to make an accounting policy election to either treat taxes due on future inclusions in U.S. taxable income related to GILTI as a current-period expense when incurred or to factor such amounts into the Company's measurement of its deferred taxes. The Company has not yet completed its analysis of the GILTI tax rules and is not yet able to reasonably estimate the effect of this provision of the Tax Act or make an accounting policy election for the ASC 740 treatment of the GILTI tax. Therefore, the Company has not recorded any amounts related to potential GILTI tax in its financial statements and has not yet made a policy decision regarding whether to record deferred taxes on GILTI. Indefinite reinvestment assertion: Beginning in 2018, the Tax Act provides a 100% deduction for dividends received from 10-percent owned foreign corporations by U.S. corporate shareholders, subject to a one-year holding period. Although dividend income is now exempt from U.S. federal tax in the hands of the U.S. corporate shareholders, companies must still apply the guidance of ASC 740 to account for the tax consequences of outside basis differences and other tax impacts of their investments in non-U.S. subsidiaries. While the Company has accrued the Transition Tax on the deemed repatriated earnings that were previously indefinitely reinvested, the Company was unable to determine a reasonable estimate of the remaining tax liability, if any, under the Tax Act for its remaining outside basis differences or evaluate how the Tax Act will affect the Company's existing accounting position to indefinitely reinvest unremitted foreign earnings. Therefore, the Company has not included a provisional amount for this item in its financial statements for fiscal 2017. The Company will record amounts as needed for this item beginning in the first reporting period during the measurement period in which the Company obtains necessary information and is able to analyze and prepare a reasonable estimate. The components of the income from operations before provision for income taxes for the Company’s domestic and foreign operations for the years ended December 31 are provided below: For the year ended In thousands 2017 2016 2015 Domestic $ 140,325 $ 276,218 $ 461,394 Foreign 211,738 136,619 123,974 Income from operations before income taxes $ 352,063 $ 412,837 $ 585,368 The consolidated provision for income taxes included in the Statement of Income consisted of the following: For the year ended December 31, In thousands 2017 2016 2015 Current taxes Federal $ 86,157 $ 72,317 $ 141,245 State 3,644 9,953 16,072 Foreign 67,395 27,391 24,442 157,196 109,661 181,759 Deferred taxes Federal (22,863 ) 11,013 9,606 State (1,024 ) 1,953 770 Foreign (43,536 ) (23,194 ) (5,395 ) (67,423 ) (10,228 ) 4,981 Total provision $ 89,773 $ 99,433 $ 186,740 A reconciliation of the United States federal statutory income tax rate to the effective income tax rate on operations for the years ended December 31 is provided below: For the year ended December 31, In thousands 2017 2016 2015 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State taxes 0.4 % 2.1 % 2.0 % Tax reserves — % (0.2 )% (0.4 )% Foreign (8.3 )% (4.3 )% (2.1 )% Research and development credit (0.8 )% (1.0 )% (0.4 )% Manufacturing deduction (1.1 )% (1.8 )% (2.3 )% France tax rate change (6.5 )% (6.5 )% — % U.S. tax rate change (7.9 )% — % — % U.S. tax reform provision 15.6 % — % — % Transaction costs related to acquisitions — % 1.5 % — % Other, net (0.9 )% (0.7 )% 0.1 % Effective rate 25.5 % 24.1 % 31.9 % The 6.5% decrease in the effective tax rate due to the France tax rate change was the result of adopted tax legislation that reduces the corporate income tax rate in France from 28.0% to 25.0% over the period 2021 to 2022. The 7.9% decrease in the effective tax rate due to the U.S. tax rate change was the result of adopted tax legislation that reduces the corporate income tax rate in the U.S. from 35.0% to 21.0% effective January 1, 2018. The 15.6% increase in the effective tax rate due to the U.S. tax reform previously discussed. Deferred income taxes result from temporary differences in the recognition of income and expense for financial and income tax reporting purposes. These deferred income taxes will be recognized as future tax benefits or costs when the temporary differences reverse. Components of deferred tax assets and liabilities were as follows: December 31, In thousands 2017 2016 Deferred income tax assets: Accrued expenses and reserves $ 10,961 $ 26,117 Warranty reserve 20,211 24,131 Deferred compensation/employee benefits 18,353 25,755 Pension and postretirement obligations 21,637 25,595 Inventory 19,620 22,579 Net operating loss carry forwards 65,671 59,416 Tax credit carry forwards 1,921 621 Other 13,053 2,317 Gross deferred income tax assets 171,427 186,531 Valuation allowance 25,683 21,418 Total deferred income tax assets 145,744 165,113 Deferred income tax liabilities: Property, plant & equipment 37,015 47,321 Intangibles 288,141 359,312 Total deferred income tax liabilities 325,156 406,633 Net deferred income tax liability $ (179,412 ) $ (241,520 ) A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2017 , the valuation allowance for certain foreign carryforwards was $25.7 million primarily in Brazil, China, United Kingdom, and South Africa. Net operating loss carry-forwards in the amount of $65.7 million expire in various periods from December 31, 2018 to December 31, 2037 . As of December 31, 2017 , the liability for income taxes associated with unrecognized tax benefits was $6.9 million , of which $4.4 million , if recognized, would favorably affect the Company’s effective income tax rate. As of December 31, 2016 , the liability for income taxes associated with unrecognized tax benefits was $8.4 million , of which $4.2 million , if recognized, would favorably affect the Company’s effective tax rate. A reconciliation of the beginning and ending amount of the liability for income taxes associated with unrecognized tax benefits follows: In thousands 2017 2016 2015 Gross liability for unrecognized tax benefits at beginning of year $ 8,423 $ 10,557 $ 12,596 Gross increases - unrecognized tax benefits in prior periods 2,466 6 — Gross increases - current period unrecognized tax benefits — — 1,682 Gross decreases - unrecognized tax benefits in prior periods — — — Gross decreases - audit settlement during year (3,979 ) — (3,027 ) Gross decreases - expiration of audit statute of limitations — (2,140 ) (694 ) Gross liability for unrecognized tax benefits at end of year $ 6,910 $ 8,423 $ 10,557 The Company includes interest and penalties related to unrecognized tax benefits in income tax expense. As of December 31, 2017 , the total interest and penalties accrued was approximately $0.7 million and $0.1 million , respectively. As of December 31, 2016 , the total interest and penalties accrued was approximately $0.8 million and $0.3 million , respectively. With limited exception, the Company is no longer subject to examination by various U.S. and foreign taxing authorities for years before 2012. At this time, the Company believes that it is reasonably possible that unrecognized tax benefits of approximately $5.2 million may change within the next 12 months due to the expiration of statutory review periods and current examinations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The computation of earnings per share from operations is as follows: For the Year Ended December 31, In thousands, except per share data 2017 2016 2015 Numerator Numerator for basic and diluted earnings per common share - net income attributable to Wabtec shareholders $ 262,261 $ 304,887 $ 398,628 Less: dividends declared - common shares and non-vested restricted stock (42,218 ) (32,430 ) (26,963 ) Undistributed earnings 220,043 272,457 371,665 Percentage allocated to common shareholders (1) 99.7 % 99.7 % 99.7 % 219,383 271,640 370,550 Add: dividends declared - common shares 42,092 32,333 26,875 Numerator for basic and diluted earnings per common share $ 261,475 $ 303,973 $ 397,425 Denominator Denominator for basic earnings per common share - weighted average shares 95,453 90,359 96,074 Effect of dilutive securities: Assumed conversion of dilutive stock-based compensation plans 672 782 932 Denominator for diluted earnings per common share - adjusted weighted average shares and assumed conversion 96,125 91,141 97,006 Net income per common share attributable to Wabtec shareholders Basic $ 2.74 $ 3.37 $ 4.14 Diluted $ 2.72 $ 3.34 $ 4.10 (1) Basic weighted-average common shares outstanding 95,453 90,359 96,074 Basic weighted-average common shares outstanding and non-vested restricted stock expected to vest 95,740 90,627 96,388 Percentage allocated to common shareholders 99.7 % 99.7 % 99.7 % Options to purchase approximately 24,000 , 20,000 , and 13,000 shares of Common Stock were outstanding in 2017 , 2016 and 2015 , respectively, but were not included in the computation of diluted earnings because their impact would have been antidilutive. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS As of December 31, 2017 , the Company maintains employee stock-based compensation plans for stock options, restricted stock, and incentive stock units as governed by the 2011 Stock Incentive Compensation Plan, as amended and restated (the “2011 Plan”) and the 2000 Stock Incentive Plan, as amended (the “2000 Plan”). The 2011 Plan has a term through May 10, 2027 and as of December 31, 2017 the number of shares available for future grants under the 2011 Plan was 3,192,453 shares, which includes remaining shares to grant under the 2000 Plan. The amendment and restatement of the 2011 Plan was approved by stockholders of Wabtec on May 10, 2017. The Company also maintains a 1995 Non-Employee Directors’ Fee and Stock Option Plan as amended and restated (“the Directors Plan”). The amendment and restatement of the Directors Plan was approved by stockholders of Wabtec on May 10, 2017. The Directors Plan, as amended, authorizes a total of 1,000,000 shares of Common Stock to be issued. Under the Directors Plan options issued become exercisable over a three -year vesting period and expire ten years from the date of grant and restricted stock issued under the plan vests one year from the date of grant. As compensation for directors’ fees for the years ended December 31, 2017 , 2016 and 2015 , the Company issued a total of 16,500 , 16,972 and 11,256 shares of restricted stock to non-employee directors. The total number of shares issued under the plan as of December 31, 2017 was 881,192 shares. Stock-based compensation expense for all of the plans was $21.3 million , $20.8 million and $26.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company recognized associated tax benefits related to the stock-based compensation plans of $8.9 million , $14.9 million and $15.3 million for the respective periods. Included in the stock-based compensation expense for 2017 above is $1.7 million of expense related to stock options, $7.0 million related to non-vested restricted stock, $4.6 million related to restricted stock units, $6.5 million related to incentive stock units and $1.5 million related to units issued for Directors’ fees. At December 31, 2017 , unamortized compensation expense related to those stock options, non-vested restricted shares and incentive stock units expected to vest totaled $24.6 million and will be recognized over a weighted average period of 1.2 years . Stock Options Stock options are granted to eligible employees and directors at the fair market value, which is the average of the high and low Wabtec stock price on the date of grant. Under the 2011 Plan and the 2000 Plan, options become exercisable over a four year vesting period and expire 10 years from the date of grant. The following table summarizes the Company’s stock option activity and related information for the 2011 Plan, the 2000 Plan and Directors Plan for the years ended December 31: Options Weighted Weighted Average Aggregate Outstanding at December 31, 2014 1,147,558 $ 28.33 5.5 $ 67,205 Granted 84,675 87.35 1,375 Exercised (124,156 ) 26.70 (5,516 ) Canceled (10,754 ) 65.22 (64 ) Outstanding at December 31, 2015 1,097,323 $ 32.70 4.8 $ 42,154 Granted 94,115 61.39 2,035 Exercised (83,790 ) 25.58 (4,813 ) Canceled (8,825 ) 71.47 (102 ) Outstanding at December 31, 2016 1,098,823 $ 35.39 4.3 $ 52,332 Granted 65,522 86.91 — Exercised (166,838 ) 21.37 (10,020 ) Canceled (13,995 ) 76.89 (64 ) Outstanding at December 31, 2017 983,512 $ 40.62 4.0 $ 40,137 Exercisable at December 31, 2017 802,609 $ 32.52 3.3 $ 36,848 Options outstanding at December 31, 2017 were as follows: Number of Weighted Weighted Number of Weighted Average Range of exercise prices Outstanding Outstanding Life Exercisable Exercisable Under $15.00 180,000 $ 14.50 1.1 180,000 $ 14.50 15.00 - 23.00 193,701 18.77 1.3 193,701 18.77 23.00 - 30.00 136,924 28.75 2.8 136,924 28.75 30.00 - 38.00 94,496 35.24 4.1 94,496 35.24 Over 38.00 378,391 69.86 7.0 197,488 63.72 983,512 $ 40.62 802,609 $ 32.52 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: For the year ended December 31, 2017 2016 2015 Dividend yield 0.23 % 0.26 % 0.14 % Risk-free interest rate 2.2 % 1.5 % 1.8 % Stock price volatility 23.4 % 26.9 % 27.3 % Expected life (years) 5.0 5.0 5.0 Weighted average fair value of options granted during the year $ 20.69 $ 14.96 $ 24.41 The dividend yield is based on the Company’s dividend rate and the current market price of the underlying common stock at the date of grant. Expected life in years is determined from historical stock option exercise data. Expected volatility is based on the historical volatility of the Company’s stock. The risk-free interest rate is based on the 7 years U.S. Treasury bond rates for the expected life of the option. Restricted Stock and Incentive Stock Beginning in 2006 the Company adopted a restricted stock program. As provided for under the 2011 and 2000 Plans, eligible employees are granted restricted stock that generally vests over four years from the date of grant. Under the Directors Plan, restricted stock units vest one year from the date of grant. In addition, the Company has issued incentive stock units to eligible employees that vest upon attainment of certain cumulative three -year performance goals. Based on the Company’s performance for each three year period then ended, the incentive stock units can vest and be awarded ranging from 0% to 200% of the initial incentive stock units granted. The incentive stock units included in the table below represent the number of shares that are expected to vest based on the Company’s estimate for meeting those established performance targets. As of December 31, 2017 , the Company estimates that it will achieve 84% , 77% and 91% for the incentive stock units expected to vest based on performance for the three year periods ending December 31, 2017 , 2018 , and 2019 , respectively, and has recorded incentive compensation expense accordingly. If our estimate of the number of these stock units expected to vest changes in a future accounting period, cumulative compensation expense could increase or decrease and will be recognized in the current period for the elapsed portion of the vesting period and would change future expense for the remaining vesting period. Compensation expense for the non-vested restricted stock and incentive stock units is based on the closing price of the Company’s common stock on the date of grant and recognized over the applicable vesting period. The following table summarizes the restricted stock activity and related information for the 2011 Plan, the 2000 Plan, and Directors Plan, and incentive stock units activity and related information for the 2011 Plan and the 2000 Plan with related information for the years ended December 31: Restricted Incentive Weighted Outstanding at December 31, 2014 438,543 791,608 $ 47.97 Granted 113,945 126,050 87.90 Vested (182,776 ) (433,932 ) 37.76 Adjustment for incentive stock awards expected to vest — 65,666 57.57 Canceled (12,827 ) (7,754 ) 67.05 Outstanding at December 31, 2015 356,885 541,638 $ 65.89 Granted 212,600 167,850 66.03 Vested (159,975 ) (236,591 ) 51.80 Adjustment for incentive stock awards expected to vest — (38,164 ) 74.42 Canceled (13,215 ) (9,983 ) 71.84 Outstanding at December 31, 2016 396,295 424,750 $ 72.18 Granted 153,516 157,025 86.66 Vested (137,088 ) (153,271 ) 70.34 Adjustment for incentive stock awards expected to vest — (87,592 ) 73.69 Canceled (13,723 ) (13,579 ) 76.61 Outstanding at December 31, 2017 399,000 327,333 $ 78.76 |
OTHER COMPREHENSIVE LOSS
OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE LOSS | OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss were: December 31, In thousands 2017 2016 Foreign currency translation gain (loss) $ 5,063 $ (321,033 ) Unrealized gain (loss) on interest rate swap contracts, net of tax of $1,338 and $1,540 4,015 (2,957 ) Unrealized loss on pension and post-retirement benefit plans, net of tax of $19,532 and $20,832 (54,070 ) (55,615 ) Total accumulated other comprehensive loss $ (44,992 ) $ (379,605 ) The changes in accumulated other comprehensive loss by component, net of tax, for the year-ended December 31, 2017 are as follows: Foreign Derivative Pension and In thousands translation contracts benefits plans Total Balance at December 31, 2016 $ (321,033 ) $ (2,957 ) $ (55,615 ) $ (379,605 ) Other comprehensive income before reclassifications 326,096 6,712 (1,017 ) 331,791 Amounts reclassified from accumulated other comprehensive income — 260 2,562 2,822 Net current period other comprehensive income 326,096 6,972 1,545 334,613 Balance at December 31, 2017 $ 5,063 $ 4,015 $ (54,070 ) $ (44,992 ) Reclassifications out of accumulated other comprehensive loss for the year-ended December 31, 2017 are as follows: Amount reclassified from Affected line item in the In thousands comprehensive income Statements of Income Amortization of defined pension and post retirement items Amortization of initial net obligation and prior service cost $ (1,496 ) Cost of sales Amortization of net loss (gain) 5,037 Cost of sales 3,541 Income from Operations (979 ) Income tax expense $ 2,562 Net income Derivative contracts Realized loss on derivative contracts 400 Interest expense, net (140 ) Income tax expense $ 260 Net income The changes in accumulated other comprehensive loss by component, net of tax, for the year-ended December 31, 2016 are as follows: Foreign Derivative Pension and In thousands translation contracts benefits plans Total Balance at December 31, 2015 $ (227,349 ) $ (2,987 ) $ (46,383 ) $ (276,719 ) Other comprehensive income before reclassifications (93,684 ) (1,286 ) (10,874 ) (105,844 ) Amounts reclassified from accumulated other comprehensive income — 1,316 1,642 2,958 Net current period other comprehensive income (93,684 ) 30 (9,232 ) (102,886 ) Balance at December 31, 2016 $ (321,033 ) $ (2,957 ) $ (55,615 ) $ (379,605 ) Reclassifications out of accumulated other comprehensive loss for the year-ended December 31, 2016 are as follows: Amount reclassified from Affected line item in the In thousands comprehensive income Statements of Income Amortization of defined pension and post retirement items Amortization of initial net obligation and prior service cost $ (1,652 ) Cost of sales Amortization of net loss (gain) 3,989 Cost of sales 2,337 Income from Operations (695 ) Income tax expense $ 1,642 Net income Derivative contracts Realized loss on derivative contracts 1,873 Interest expense, net (557 ) Income tax expense $ 1,316 Net income |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
OPERATING LEASES | OPERATING LEASES The Company leases office and manufacturing facilities under operating leases with terms ranging from one to 15 years , excluding renewal options. Total net rental expense charged to operations in 2017 , 2016 , and 2015 was $34.6 million , $27.2 million and $20.2 million , respectively. The amounts above are shown net of sublease rentals which were immaterial for the years 2017 , 2016 and 2015 , respectively. Future minimum rental payments under operating leases with remaining non-cancelable terms in excess of one year are as follows: Real In thousands Estate Equipment Total 2018 $ 28,957 $ 2,690 $ 31,647 2019 25,857 1,925 27,782 2020 24,266 976 25,242 2021 19,561 512 20,073 2022 16,350 271 16,621 2023 and after 66,017 24 66,041 |
WARRANTIES
WARRANTIES | 12 Months Ended |
Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
WARRANTIES | WARRANTIES The following table reconciles the changes in the Company’s product warranty reserve as follows: In thousands 2017 2016 Balance at beginning of year $ 138,992 $ 92,064 Warranty expense 50,385 28,947 Acquisitions 806 59,685 Warranty claim payments (48,548 ) (38,772 ) Foreign currency impact 11,428 (2,932 ) Balance at end of year $ 153,063 $ 138,992 |
PREFERRED STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Preferred Stock Additional Information [Abstract] | |
PREFERRED STOCK | PREFERRED STOCK The Company’s authorized capital stock includes 1,000,000 shares of preferred stock. The Board of Directors has the authority to issue the preferred stock and to fix the designations, powers, preferences and rights of the shares of each such class or series, including dividend rates, conversion rights, voting rights, terms of redemption and liquidation preferences, without any further vote or action by the Company’s shareholders. The rights and preferences of the preferred stock would be superior to those of the common stock. At December 31, 2017 and 2016 there was no preferred stock issued or outstanding. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING Foreign Currency Hedging The Company uses forward contracts to mitigate its foreign currency exchange rate exposure due to forecasted sales of finished goods and future settlement of foreign currency denominated assets and liabilities. Derivatives used to hedge forecasted transactions and specific cash flows associated with foreign currency denominated financial assets and liabilities that meet the criteria for hedge accounting are designated as cash flow hedges. The effective portion of gains and losses is deferred as a component of accumulated other comprehensive income and is recognized in earnings at the time the hedged item affects earnings, in the same line item as the underlying hedged item. The contracts are scheduled to mature within two years. For the twelve months ended December 31, 2017 , the amount reclassified into income was $0.4 million . Other Activities The Company enters into certain derivative contracts in accordance with its risk management strategy that do not meet the criteria for hedge accounting but which have the impact of largely mitigating foreign currency exposure. These foreign exchange contracts are accounted for on a full mark to market basis through earnings, with gains and losses recorded as a component of other expense, net. The net unrealized gain related to these contracts was $2.1 million for the twelve months ended December 31, 2017 . The notional amount and fair value of foreign exchange contracts that did not meet the criteria for hedge accounting at December 31, 2017 was not material. These contracts are scheduled to mature within one year. The following table summarizes the gross notional amounts and fair values of the designated and non-designated hedged discussed in the above sections: In millions Designated Non-Designated Total Gross notional amount $ 805.1 $ 379.7 $ 1,184.8 Fair Value: Other current assets 3.5 2.1 5.6 Other current liabilities — — — Total $ 3.5 $ 2.1 $ 5.6 Interest Rate Hedging The Company uses interest rate swaps to manage interest rate exposures. The Company is exposed to interest rate volatility with regard to existing floating rate debt. Primary exposure includes the London Interbank Offered Rates (LIBOR). Derivatives used to hedge risk associated with changes in the fair value of certain variable-rate debt are primarily designated as fair value hedges. Consequently, changes in the fair value of these derivatives, along with changes in the fair value of debt obligations are recognized in current period earnings. See long-term debt footnote fair value measurement footnote for further information on current interest rate swaps. As of December 31, 2017 , the Company has recorded a current liability of $1.2 million and an accumulated other comprehensive loss of $0.7 million , net of tax, related to these agreements . |
FAIR VALUE MEASUREMENT AND FAIR
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS ASC 820 “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value and explains the related disclosure requirements. ASC 820 indicates, among other things, that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model. Valuation Hierarchy. ASC 820 establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following table provides the liabilities carried at fair value measured on a recurring basis as of December 31, 2017 , which are included in other current liabilities on the Consolidated Balance sheet: Fair Value Measurements at December 31, 2017 Using Total Carrying Quoted Prices in Significant Other Significant In thousands 2017 (Level 1) (Level 2) (Level 3) Interest rate swap agreements 1,163 — 1,163 — Total $ 1,163 $ — $ 1,163 $ — The following table provides the liabilities carried at fair value measured on a recurring basis as of December 31, 2016 , which are included in other current liabilities on the Consolidated Balance sheet: Fair Value Measurements at December 31, 2016 Using Total Carrying Quoted Prices in Significant Other Significant In thousands 2016 (Level 1) (Level 2) (Level 3) Interest rate swap agreements 3,888 — 3,888 — Total $ 3,888 $ — $ 3,888 $ — To reduce the impact of interest rate changes on a portion of its variable-rate debt, the Company entered into interest rate swaps which effectively converted a portion of the debt from variable to fixed-rate borrowings during the term of the swap contracts. For certain derivative contracts whose fair values are based upon trades in liquid markets, such as interest rate swaps, valuation model inputs can generally be verified and valuation techniques do not involve significant management judgment. The fair values of such financial instruments are generally classified within Level 2 of the fair value hierarchy. As a result of our global operating activities the Company is exposed to market risks from changes in foreign currency exchange rates, which may adversely affect our operating results and financial position. When deemed appropriate, the Company minimizes these risks through entering into foreign currency forward contracts. The foreign currency forward contracts are valued using broker quotations, or market transactions in either the listed or over-the counter markets. As such, these derivative instruments are classified within level 2. The Company’s cash and cash equivalents are highly liquid investments purchased with an original maturity of three months or less and are considered Level 1 on the fair value valuation hierarchy. The fair value of cash and cash equivalents approximated the carrying value at December 31, 2017 and December 31, 2016 . The Company’s defined benefit pension plan assets consist primarily of equity security funds, debt security funds and temporary cash and cash equivalent investments. These investments are comprised of a number of investment funds that invest in a diverse portfolio of assets including equity securities, corporate and governmental bonds, and money markets. Trusts are valued at the net asset value (“NAV”) as determined by their custodian. NAV represents the accumulation of the unadjusted quoted close prices on the reporting date for the underlying investments divided by the total shares outstanding at the reporting dates. The 2013 and 2016 Notes are considered Level 2 based on the fair value valuation hierarchy. The estimated fair values and related carrying values of the Company’s financial instruments are as follows: December 31, 2017 December 31, 2016 Carry Fair Carry Fair In thousands Value Value Value Value Interest rate swap agreements $ 1,163 $ 1,163 $ 3,888 $ 3,888 4.375% Senior Notes 248,567 262,033 248,310 260,265 3.45% Senior Notes 747,655 741,113 747,474 719,273 The fair value of the Company’s interest rate swap agreements and the 2013 and 2016 Notes were based on dealer quotes and represent the estimated amount the Company would pay to the counterparty to terminate the agreement. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company is subject to a variety of environmental laws and regulations governing discharges to air and water, the handling, storage and disposal of hazardous or solid waste materials and the remediation of contamination associated with releases of hazardous substances. The Company believes its operations currently comply in all material respects with all of the various environmental laws and regulations applicable to our business; however, there can be no assurance that environmental requirements will not change in the future or that we will not incur significant costs to comply with such requirements. Under terms of the purchase agreement and related documents for the 1990 Acquisition, American Standard, Inc., now known as Trane (“Trane”), has indemnified the Company for certain items including, among other things, certain environmental claims the Company asserted prior to 2000. If Trane was unable to honor or meet these indemnifications, the Company would be responsible for such items. In the opinion of Management, Trane currently has the ability to meet its indemnification obligations. Claims have been filed against the Company and certain of its affiliates in various jurisdictions across the United States by persons alleging bodily injury as a result of exposure to asbestos-containing products. Most of these claims have been made against our wholly owned subsidiary, Railroad Friction Products Corporation (“RFPC”), and are based on a product sold by RFPC prior to the time that the Company acquired any interest in RFPC. Most of these claims, including all of the RFPC claims, are submitted to insurance carriers for defense and indemnity or to non-affiliated companies that retain the liabilities for the asbestos-containing products at issue. We cannot, however, assure that all these claims will be fully covered by insurance or that the indemnitors or insurers will remain financially viable. Our ultimate legal and financial liability with respect to these claims, as is the case with other pending litigation, cannot be estimated. It is management’s belief that the potential range of loss for asbestos-related bodily injury cases is not reasonably determinable at present due to a variety of factors, including: (1) the asbestos case settlement history of the Company’s wholly owned subsidiary, RFPC; (2) the unpredictable nature of personal injury litigation in general; and (3) the uncertainty of asbestos litigation in particular. Despite this uncertainty, and although the results of the Company’s operations and cash flows for any given period could be adversely affected by asbestos-related lawsuits, Management believes that the final resolution of the Company’s asbestos-related cases will not be material to the Company’s overall financial position, results of operations and cash flows. In general, this belief is based upon: (1) Wabtec’s and RFPC’s history of settlements and dismissals of asbestos-related cases to date; (2) the inability of many plaintiffs to establish any exposure or causal relationship to RFPC’s product; and (3) the inability of many plaintiffs to demonstrate any identifiable injury or compensable loss. More specifically, as to RFPC, management’s belief that any losses due to asbestos-related cases would not be material is also based on the fact that RFPC owns insurance which provides coverage for asbestos-related bodily injury claims. To date, RFPC’s insurers have provided RFPC with defense and indemnity in these actions. The overall number of new claims being filed against RFPC has dropped significantly in recent years; however, these new claims, and all previously filed claims, may take a significant period of time to resolve. As to Wabtec and its divisions, Management’s belief that asbestos-related cases will not have a material impact is also based on its position that it has no legal liability for asbestos-related bodily injury claims, and that the former owners of Wabtec’s assets retained asbestos liabilities for the products at issue. To date, Wabtec has been able to successfully defend itself on this basis, including two arbitration decisions and a judicial opinion, all of which confirmed Wabtec’s position that it did not assume any asbestos liabilities from the former owners of certain Wabtec assets. Although Wabtec has incurred defense and administrative costs in connection with asbestos bodily injury actions, these costs have not been material, and the Company has no information that would suggest these costs would become material in the foreseeable future. On April 21, 2016, Siemens Industry, Inc. filed a lawsuit against the Company in federal district court in Delaware alleging that the Company has infringed seven patents owned by Siemens, all of which relate to Positive Train Control technology. On November 2, 2016, Siemens amended its complaint to add six additional patents they also claim are infringed by the Company’s Positive Train Control Products. The Company has filed Answers, and asserted counterclaims, in response to Siemens’ complaints. The case is still in the preliminary stages, but the Company has begun filing for Inter-Parties Review proceedings before the U.S. Patent & Trademark Office seeking to invalidate the Siemens patents. Wabtec believes the claims are without merit and is vigorously defending itself. Xorail, Inc., a wholly owned subsidiary of the Company (“Xorail”), has received notices from Denver Transit Constructors (“Denver Transit”) alleging breach of contract related to the operating of constant warning wireless crossings, and late delivery of the Train Management & Dispatch System (“TMDS”) for the Denver Eagle P3 Project, which is owned by the Denver Regional Transit District ("RTD"). No damages have been asserted for the alleged late delivery of the TMDS, and Xorail is in the final stages of successfully implementing a recovery plan concerning the TMDS issues. With regard to the wireless crossings, as of September 8, 2017, Denver Transit alleged that total damages were $36.8 million through July 31, 2017, and are continuing to accumulate. The crossings have not been certified for use without flaggers, which Denver Transit alleges is due to Xorail's failure to achieve constant warning times satisfactory to the Federal Railway Administration ("FRA") and the Public Utility Commission ("PUC"). No claims have been filed by Denver Transit with regard to either issue. Xorail has denied Denver Transit’s assertions regarding the wireless crossings, and Denver Transit has also notified RTD that Denver Transit considers the new certification requirements imposed by FRA and/or PUC as a change in law, for which neither Denver Transit nor its subcontractors are liable. Xorail has worked with Denver Transit to modify its system to meet the FRA’s and PUC's previously undefined, and evolving, certification requirements. On September 28, 2017, the FRA granted a 5 year approval of the modified wireless crossing system as currently implemented; however, the PUC has not granted approval of the modified system and therefore the crossings are still not certified for use without flaggers. Denver Transit and RTD are continuing to seek approval from PUC. The Company does not believe that it has any liability with respect to the wireless crossing issue. From time to time the Company is involved in litigation relating to claims arising out of its operations in the ordinary course of business. As of the date hereof, the Company is involved in no litigation that the Company believes will have a material adverse effect on its financial condition, results of operations or liquidity. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 is as follows: Corporate Freight Transit Activities and In thousands Segment Segment Elimination Total Sales to external customers $ 1,396,588 $ 2,485,168 $ — $ 3,881,756 Intersegment sales/(elimination) 37,630 21,548 (59,178 ) — Total sales $ 1,434,218 $ 2,506,716 $ (59,178 ) $ 3,881,756 Income (loss) from operations $ 264,603 $ 188,546 $ (31,416 ) $ 421,733 Interest expense and other, net — — (69,670 ) (69,670 ) Income (loss) from operations before income taxes $ 264,603 $ 188,546 $ (101,086 ) $ 352,063 Depreciation and amortization $ 43,721 $ 57,441 $ 2,086 $ 103,248 Capital expenditures 33,921 50,762 4,783 89,466 Segment assets 3,504,289 7,562,122 (4,486,431 ) 6,579,980 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 $ 1,235,283 $ — $ 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 The following geographic area data as of and for the years ended December 31, 2017 , 2016 and 2015 , 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 2017 2016 2015 2017 2016 2015 United States $ 1,323,781 $ 1,362,255 $ 1,754,924 $ 211,608 $ 205,895 $ 171,362 United Kingdom 356,493 322,563 368,505 57,668 54,215 63,694 Canada 279,013 206,258 204,674 5,822 5,156 4,876 France 237,454 66,287 45,565 57,849 33,636 7,194 Germany 208,817 98,364 92,422 71,709 57,902 31,642 China 178,137 106,357 100,586 36,388 42,672 12,256 Mexico 160,029 183,583 190,034 9,117 8,766 8,839 Italy 142,037 45,771 38,164 30,329 27,253 15,170 India 137,837 24,161 12,345 12,519 1,271 1,946 Australia 136,127 82,099 86,809 10,483 8,039 8,424 Brazil 69,378 51,493 84,595 13,184 13,227 9,318 Other international 652,653 381,997 329,375 57,296 60,344 18,472 Total $ 3,881,756 $ 2,931,188 $ 3,307,998 $ 573,972 $ 518,376 $ 353,193 Export sales from the Company’s United States operations were $448.0 million , $470.5 million and $508.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Sales by product are as follows: In thousands 2017 2016 2015 Specialty Products & Electronics $ 1,350,727 $ 1,374,580 $ 1,733,881 Brake Products 749,959 588,081 627,552 Remanufacturing, Overhaul & Build 522,275 559,284 606,624 Transit Products 1,112,340 276,124 189,581 Other 146,455 133,119 150,360 Total sales $ 3,881,756 $ 2,931,188 $ 3,307,998 |
GUARANTOR SUBSIDIARIES FINANCIA
GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION | GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION The obligations under the Company's 2016 Notes, 2013 Notes and Revolving Credit Facility and Term Loan are fully and unconditionally guaranteed by all U.S. subsidiaries as guarantors. Each guarantor is 100% owned by the parent company. In accordance with positions established by the Securities and Exchange Commission, the following shows separate financial information with respect to the parent, the guarantor subsidiaries and the non-guarantor subsidiaries. The principal elimination entries eliminate investment in subsidiaries and certain intercompany balances and transactions. Balance Sheet for December 31, 2017 : In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Cash and cash equivalents $ 933 $ 4,802 $ 227,666 $ — $ 233,401 Receivables, net 77,046 237,360 852,381 — 1,166,787 Inventories 120,937 137,972 483,725 — 742,634 Current assets - other 1,142 4,507 116,642 — 122,291 Total current assets 200,058 384,641 1,680,414 — 2,265,113 Property, plant and equipment 52,532 136,382 385,058 — 573,972 Goodwill 25,274 546,527 1,888,302 — 2,460,103 Investment in subsidiaries 6,517,205 2,570,391 — (9,087,596 ) — Other intangibles, net 30,575 251,347 922,510 — 1,204,432 Other long term assets 17,414 295 58,651 — 76,360 Total assets $ 6,843,058 $ 3,889,583 $ 4,934,935 $ (9,087,596 ) $ 6,579,980 Current liabilities $ 196,827 217,176 $ 1,159,327 — $ 1,573,330 Inter-company 2,121,546 (2,026,634 ) (94,912 ) — — Long-term debt 1,661,771 14 161,518 — 1,823,303 Long-term liabilities - other 54,046 67,824 232,945 — 354,815 Total liabilities 4,034,190 (1,741,620 ) 1,458,878 — 3,751,448 Shareholders' equity 2,808,868 5,632,665 3,454,931 (9,087,596 ) 2,808,868 Non-controlling interest — (1,462 ) 21,126 — 19,664 Total shareholders' equity $ 2,808,868 $ 5,631,203 $ 3,476,057 $ (9,087,596 ) $ 2,828,532 Total Liabilities and Shareholders' Equity $ 6,843,058 $ 3,889,583 $ 4,934,935 $ (9,087,596 ) $ 6,579,980 Balance Sheet for December 31, 2016 : In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Cash and cash equivalents $ 2,522 $ 9,496 $ 386,466 $ — $ 398,484 Receivables, net 79,041 202,779 660,688 — 942,508 Inventories 120,042 128,076 410,392 — 658,510 Current assets - other 52,576 (17,844 ) 833,397 — 868,129 Total current assets 254,181 322,507 2,290,943 — 2,867,631 Property, plant and equipment 49,031 126,661 342,684 — 518,376 Goodwill 25,275 477,472 1,576,018 — 2,078,765 Investment in subsidiaries 5,388,613 1,325,150 — (6,713,763 ) — Other intangibles, net 31,897 204,512 817,451 — 1,053,860 Other long term assets 9,592 (1,914 ) 54,708 — 62,386 Total assets $ 5,758,589 $ 2,454,388 $ 5,081,804 $ (6,713,763 ) $ 6,581,018 Current liabilities $ 194,983 196,956 $ 1,054,700 — $ 1,446,639 Inter-company 1,562,399 (1,848,777 ) 286,378 — — Long-term debt 1,761,933 58 976 — 1,762,967 Long-term liabilities - other 33,298 74,977 286,312 — 394,587 Total liabilities 3,552,613 (1,576,786 ) 1,628,366 — 3,604,193 Shareholders' equity 2,205,976 4,032,250 2,681,514 (6,713,763 ) 2,205,977 Non-controlling interest — (1,076 ) 771,924 — 770,848 Total shareholders' equity $ 2,205,976 $ 4,031,174 $ 3,453,438 $ (6,713,763 ) $ 2,976,825 Total Liabilities and Shareholders' Equity $ 5,758,589 $ 2,454,388 $ 5,081,804 $ (6,713,763 ) $ 6,581,018 Income Statement for the Year Ended December 31, 2017 : In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Net Sales $ 577,397 $ 1,067,954 $ 2,378,817 $ (142,412 ) $ 3,881,756 Cost of sales (440,911 ) (675,546 ) (1,808,370 ) 108,384 (2,816,443 ) Gross profit (loss) 136,486 392,408 570,447 (34,028 ) 1,065,313 Total operating expenses (113,872 ) (123,423 ) (406,285 ) — (643,580 ) Income (loss) from operations 22,614 268,985 164,162 (34,028 ) 421,733 Interest (expense) income, net (72,233 ) 8,843 (5,314 ) — (68,704 ) Other income (expense), net 5,103 289 (6,358 ) — (966 ) Equity earnings (loss) 416,068 131,620 — (547,688 ) — Pretax income (loss) 371,552 409,737 152,490 (581,716 ) 352,063 Income tax expense (109,294 ) 32,393 (12,872 ) — (89,773 ) Net income (loss) 262,258 442,130 139,618 (581,716 ) 262,290 Less: Net income attributable to noncontrolling interest — 386 (415 ) — (29 ) Net income (loss) attributable to Wabtec shareholders $ 262,258 $ 442,516 $ 139,203 $ (581,716 ) $ 262,261 Comprehensive income (loss) attributable to Wabtec shareholders $ 263,907 $ 442,516 $ 472,167 $ (581,716 ) $ 596,874 Income Statement for the Year Ended December 31, 2016 : In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Net Sales $ 641,809 $ 1,112,001 $ 1,322,937 $ (145,559 ) $ 2,931,188 Cost of sales (473,700 ) (708,062 ) (928,608 ) 103,421 (2,006,949 ) Gross profit (loss) 168,109 403,939 394,329 (42,138 ) 924,239 Total operating expenses (141,940 ) (122,617 ) (201,321 ) — (465,878 ) (Loss) income from operations 26,169 281,322 193,008 (42,138 ) 458,361 Interest (expense) income, net (34,975 ) 7,012 (14,598 ) — (42,561 ) Other income (expense), net 20,509 (2,284 ) (21,188 ) — (2,963 ) Equity earnings (loss) 322,650 131,234 — (453,884 ) — Pretax income (loss) 334,353 417,284 157,222 (496,022 ) 412,837 Income tax expense (29,466 ) (57,667 ) (12,300 ) — (99,433 ) Net income (loss) 304,887 359,617 144,922 (496,022 ) 313,404 Less: Net income attributable to noncontrolling interest — — (8,517 ) — (8,517 ) Net income attributable to Wabtec shareholders $ 304,887 $ 359,617 $ 136,405 $ (496,022 ) $ 304,887 Comprehensive income (loss) attributable to Wabtec shareholders $ 305,180 $ 359,617 $ 33,226 $ (496,022 ) $ 202,001 Income Statement for the Year Ended December 31, 2015: In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Net Sales $ 743,262 $ 1,436,935 $ 1,300,577 $ (172,776 ) $ 3,307,998 Cost of sales (531,269 ) (843,104 ) (976,798 ) 90,989 (2,260,182 ) Gross (loss) profit 211,993 593,831 323,779 (81,787 ) 1,047,816 Total operating expenses (142,953 ) (131,251 ) (166,045 ) — (440,249 ) (Loss) income from operations 69,040 462,580 157,734 (81,787 ) 607,567 Interest (expense) income, net (23,129 ) 5,914 327 — (16,888 ) Other income (expense), net 23,193 (9,140 ) (19,364 ) — (5,311 ) Equity earnings (loss) 506,903 112,286 — (619,189 ) — Pretax income (loss) 576,007 571,640 138,697 (700,976 ) 585,368 Income tax expense (177,379 ) 8,989 (18,350 ) — (186,740 ) Net income (loss) 398,628 580,629 120,347 (700,976 ) 398,628 Less: Net income attributable to noncontrolling interest — — — — — Net income attributable to Wabtec shareholders $ 398,628 $ 580,629 $ 120,347 $ (700,976 ) $ 398,628 Comprehensive income (loss) attributable to Wabtec shareholders $ 409,734 $ 580,629 $ (7,992 ) $ (700,976 ) $ 281,395 Condensed Statement of Cash Flows for the year ended December 31, 2017 : In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Net cash (used in) provided by operating activities $ (49,231 ) $ 249,204 $ 22,866 $ (34,028 ) $ 188,811 Net cash used in investing activities (11,156 ) (120,661 ) (143,912 ) — (275,729 ) Net cash provided by (used in) financing activities 58,798 (133,237 ) (57,020 ) 34,028 (97,431 ) Effect of changes in currency exchange rates — — 19,266 — 19,266 Increase (decrease) in cash (1,589 ) (4,694 ) (158,800 ) — (165,083 ) Cash, beginning of year 2,522 9,496 386,466 — 398,484 Cash, end of year $ 933 $ 4,802 $ 227,666 $ — $ 233,401 Condensed Statement of Cash Flows for the year ended December 31, 2016 : In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Net cash provided by (used in) operating activities $ (44,611 ) $ 332,822 $ 204,457 $ (42,138 ) $ 450,530 Net cash used in investing activities (829,783 ) (14,725 ) 69,443 — (775,065 ) Net cash (used in) provided by financing activities 876,916 (321,758 ) (74,325 ) 42,138 522,971 Effect of changes in currency exchange rates — — (26,143 ) — (26,143 ) (Decrease) increase in cash 2,522 (3,661 ) 173,432 — 172,293 Cash, beginning of year — 13,157 213,034 — 226,191 Cash, end of year $ 2,522 $ 9,496 $ 386,466 $ — $ 398,484 Condensed Statement of Cash Flows for the year ended December 31, 2015: In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Net cash provided by (used in) operating activities $ (90,374 ) $ 487,516 $ 135,489 $ (81,787 ) $ 450,844 Net cash used in investing activities (7,862 ) (109,326 ) (262,948 ) — (380,136 ) Net cash provided by (used in) financing activities (48,570 ) (378,330 ) 93,615 81,787 (251,498 ) Effect of changes in currency exchange rates — — (18,868 ) — (18,868 ) Increase in cash (146,806 ) (140 ) (52,712 ) — (199,658 ) Cash, beginning of year 146,806 13,297 265,746 — 425,849 Cash, end of year $ — $ 13,157 $ 213,034 $ — $ 226,191 |
OTHER (EXPENSE) INCOME, NET
OTHER (EXPENSE) INCOME, NET | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
OTHER (EXPENSE) INCOME, NET | OTHER (EXPENSE) INCOME, NET The components of other (expense) income, net are as follows: For the year ended December 31, In thousands 2017 2016 2015 Foreign currency loss $ (6,618 ) $ (4,001 ) $ (4,659 ) Equity income 2,579 409 — Other miscellaneous income (expense) 3,073 629 (652 ) Total other (expense) income, net $ (966 ) $ (2,963 ) $ (5,311 ) |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) First Second Third Fourth In thousands, except per share data Quarter Quarter Quarter Quarter (1) 2017 Net sales $ 916,034 $ 932,253 $ 957,931 $ 1,075,538 Gross profit 269,707 273,963 253,203 268,440 Income from operations 114,858 113,701 102,011 91,163 Net income attributable to Wabtec shareholders 73,889 72,025 67,399 48,948 Basic earnings from operations per common share $ 0.77 $ 0.75 $ 0.70 $ 0.51 Diluted earnings from operations per common share $ 0.77 $ 0.75 $ 0.70 $ 0.51 2016 Net sales $ 772,031 $ 723,601 $ 675,574 $ 759,982 Gross profit 255,180 237,389 212,481 219,189 Income from operations 142,181 133,284 120,096 62,800 Net income attributable to Wabtec shareholders 94,163 90,485 82,428 46,328 Basic earnings from operations per common share $ 1.03 $ 1.00 $ 0.92 $ 0.42 Diluted earnings from operations per common share $ 1.02 $ 1.00 $ 0.91 $ 0.42 (1) Results from the fourth quarter of 2017 include project adjustments related to prior periods which decreased income from operations by approximately $14.8 million . The effect of these project adjustments was not material. The Company operates on a four-four-five week accounting quarter, and the quarters end on or about March 31, June 30 and September 30. The fiscal year ends on December 31. |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | SCHEDULE II WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION VALUATION AND QUALIFYING ACCOUNTS For each of the three years ended December 31 In thousands Balance at Charged/ Charged/ (credited) to Deductions Balance 2017 Warranty and overhaul reserves $ 138,992 $ 50,385 $ 12,234 $ 48,548 $ 153,063 Allowance for doubtful accounts 7,340 2,632 4,979 2,609 12,342 Valuation allowance-taxes 21,418 6,760 — 10,024 18,154 2016 Warranty and overhaul reserves $ 92,064 $ 28,947 $ 56,753 $ 38,772 $ 138,992 Allowance for doubtful accounts 5,614 3,635 — 1,909 7,340 Valuation allowance-taxes 12,623 3,405 5,390 — 21,418 2015 Warranty and overhaul reserves $ 87,849 $ 35,418 $ (1,762 ) $ 29,441 $ 92,064 Allowance for doubtful accounts 6,270 2,026 — 2,682 5,614 Valuation allowance-taxes 1,818 7,024 3,781 — 12,623 (1) Reserves of acquired/(sold) companies; valuation allowances for state and foreign deferred tax assets; impact of fluctuations in foreign currency exchange rates. (2) Actual disbursements and/or charges. |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company and all subsidiaries that it controls. For consolidated subsidiaries in which the Company's ownership is less than 100%, the outside shareholders' interests are shown as noncontrolling interests. These statements have been prepared in accordance with U.S. generally accepted accounting principles. Sales between subsidiaries are billed at prices consistent with sales to third parties and are eliminated in consolidation. |
Cash Equivalents | Cash equivalents are highly liquid investments purchased with an original maturity of three months or less. |
Allowance for Doubtful Accounts | The allowance for doubtful accounts receivable reflects our best estimate of probable losses inherent in our receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available evidence. |
Inventories | Inventories are stated at the lower of cost or market. Cost is determined under the first-in, first-out (FIFO) method. Inventory costs include material, labor and overhead. |
Property, Plant and Equipment | Property, plant and equipment additions are stated at cost. Expenditures for renewals and improvements are capitalized. Expenditures for ordinary maintenance and repairs are expensed as incurred. The Company computes book depreciation principally on the straight-line method. Accelerated depreciation methods are utilized for income tax purposes. |
Leasing Arrangements | The Company conducts a portion of its operations from leased facilities and finances certain equipment purchases through lease agreements. In those cases in which the lease term approximates the useful life of the leased asset or the lease meets certain other prerequisites, the leasing arrangement is classified as a capital lease. The remaining arrangements are treated as operating leases. |
Goodwill and Intangible Assets | Goodwill and other intangible assets with indefinite lives are not amortized. Other intangibles (with definite lives) are amortized on a straight-line basis over their estimated economic lives. Amortizable intangible assets are reviewed for impairment when indicators of impairment are present. The Company tests goodwill and indefinite-lived intangible assets for impairment at the reporting unit level and at least annually. The Company performs its annual impairment test during the fourth quarter after the annual forecasting process is completed, and also tests for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Periodically, Management of the Company assesses whether or not an indicator of impairment is present that would necessitate an impairment analysis be performed. For 2017, the Company opted to proceed directly to the two-step quantitative impairment test for all reporting units with goodwill. In the first step of the quantitative assessment, our assets and liabilities, including existing goodwill and other intangible assets, are assigned to the identified reporting units to determine the carrying value of the reporting units. The income approach and the market approach are weighted at 50% and 50%, respectively, in arriving at fair value. The discounted cash flow model requires several assumptions including future sales growth, EBIT (earnings before interest and taxes) margins and capital expenditures for the reporting units. The discounted cash flow model also requires the use of a discount rate and a terminal revenue growth rate (the revenue growth rate for the period beyond the years forecasted by the reporting units), as well as projections of future operating margins. The market approach requires several assumptions including EBITDA (earnings before interest, taxes, depreciation and amortization) multiples for comparable companies that operate in the same markets as the Company’s reporting units. The estimated fair value of all reporting units was substantially in excess of its respective carrying value, which resulted in a conclusion that no impairment existed. Additionally, the Company proceeded directly to the quantitative impairment test for some trade names with indefinite lives. The fair value of all trade names subject to the quantitative impairment test exceeded its respective carrying value, resulting in a conclusion that no impairment existed. For trade names not subject to the quantitative testing, the Company opted to perform a qualitative trade name impairment assessment and determined from the qualitative assessment that it was not more likely than not that the estimated fair values of the trade names were less than their carrying values; therefore, no further analysis was required. In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a trade name is less than its carrying amount, we assess relevant events and circumstances that may impact the fair value and the carrying amount of the trade name. The identification of relevant events and circumstances and how these may impact a trade name’s fair value or carrying amount involve significant judgments and assumptions. The judgment and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, Wabtec specific events, share price trends and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact. |
Warranty Costs | Warranty costs are accrued based on Management’s estimates of repair or upgrade costs per unit and historical experience. |
Income Taxes | Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws. The provision for income taxes includes federal, state and foreign income taxes. |
Stock-Based Compensation | The Company recognizes compensation expense for stock-based compensation based on the grant date fair value amortized ratably over the requisite service period following the date of grant. |
Financial Derivatives and Hedging Activities | The Company has entered into foreign currency forward contracts to reduce the impact of changes in currency exchange rates. Foreign currency forward contracts are agreements with a counterparty to exchange two distinct currencies at a set exchange rate for delivery on a set date at some point in the future. There is no exchange of funds until the delivery date. |
Foreign Currency Translation | Assets and liabilities of foreign subsidiaries, except for the Company’s Mexican operations whose functional currency is the U.S. Dollar, are translated at the rate of exchange in effect on the balance sheet date while income and expenses are translated at the average rates of exchange prevailing during the period. Foreign currency gains and losses resulting from transactions, and the translation of financial statements are recorded in the Company’s consolidated financial statements based upon the provisions of Accounting Standards Codification (“ASC”) 830, “Foreign Currency Matters.” The effects of currency exchange rate changes on intercompany transactions and balances of a long-term investment nature are accumulated and carried as a component of accumulated other comprehensive loss. The effects of currency exchange rate changes on intercompany transactions that are denominated in a currency other than an entity’s functional currency are charged or credited to earnings. |
Noncontrolling Interests | In accordance with ASC 810, the Company has classified noncontrolling interests as equity on our condensed consolidated balance sheets as of December 31, 2017 and 2016 . |
Revenue Recognition | Revenue is recognized in accordance with ASC 605 “Revenue Recognition,” The Company recognizes revenue when the following criteria are met: 1) persuasive evidence of an arrangement exists; 2) delivery has occurred; 3) an established sales price has been set with the customer; 4) collection of the sale revenue from the customer is reasonably assured; and 5) no contingencies exist. Delivery is considered to have occurred when the customer assumes the risk and rewards of ownership. The Company estimates and records provisions for quantity rebates and sales returns and allowances as an offset to revenue in the same period the related revenue is recognized, based upon its experience. These items are included as a reduction in deriving net sales. In general, the Company recognizes revenues on long-term contracts based on the percentage of completion method of accounting. The units-of-delivery method or other input-based or output-based measures, as appropriate, are used to measure the progress toward completion of individual contracts. Contract revenues and cost estimates are reviewed and revised quarterly at a minimum and adjustments are reflected in the accounting period as such amounts are determined. Provisions are made currently for estimated losses on uncompleted contracts. |
Significant Customers and Concentrations of Credit Risk | The Company’s trade receivables are from rail and transit industry original equipment manufacturers, Class I railroads, railroad carriers and commercial companies that utilize rail cars in their operations, such as utility and chemical companies. No one customer accounted for more than 10% of the Company’s consolidated net sales in 2017 , 2016 or 2015 . |
Shipping and Handling Fees and Costs | All fees billed to the customer for shipping and handling are classified as a component of net revenues. All costs associated with shipping and handling are classified as a component of cost of sales. |
Research and Development | Research and development costs are charged to expense as incurred. |
Earnings Per Share | Basic and diluted earnings per common share is computed in accordance with ASC 260 “Earnings Per Share.” Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and included in the computation of earnings per share pursuant to the two-class method included in ASC 260-10-55. (See Note 11 “Earnings Per Share” included herein) |
Reclassifications | Certain prior year amounts have been reclassified, where necessary, to conform to the current year presentation. Refer to Recently Adopted Accounting Pronouncements below. |
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates. On an ongoing basis, Management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. |
Recently Issued Accounting Pronouncements | In March 2017, the FASB issued ASU No. 2017-07 "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". The amendments in this update require the service cost component of net benefit costs to be reported in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside income from operations. This update also allows the service cost component to be eligible for capitalization when applicable. The ASU is effective for public companies in the fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption was permitted as of the beginning of an annual period. The amendments should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The Company does not expect the adoption of this guidance in 2018 to have a material impact on the Company's financial statements. In January 2017, the FASB issued ASU No. 2017-04 "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The amendments in this update eliminate the requirement to perform Step 2 of the goodwill impairment test. Instead, an entity should perform a goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value up to the carrying amount of the goodwill. The ASU is effective for public companies in the fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The impact of adopting this guidance could result in a change in the overall conclusion as to whether or not a reporting units' goodwill is impaired and the amount of an impairment charge recognized in the event a reporting units' carrying value exceeds its fair value. All of the Company's reporting units had fair values that were greater than the carrying value as of the Company's last quantitative goodwill impairment test, which was performed as of October 1, 2017. In November 2016, the FASB issued ASU No. 2016-18 "Statement of Cash Flows (Topic 230): Restricted Cash". The amendments in this update require a statement of cash flows to explain the change during the period in total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU is effective for public companies in the fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of this guidance in 2018 to have a material impact on the Company's financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 814)" which requires lessees to recognize a right of use asset and lease liability on the balance sheet for all leases with terms longer than 12 months. For leases with terms less than 12 months, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a right of use asset and lease liability. The ASU is effective for public companies in the fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-9, “Revenue from Contract with Customers.” The ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity’s nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Board voted to propose that the standard would take effect for reporting periods beginning after December 15, 2017 and that early adoption would be allowed as of the original effective date. The impact to results is not anticipated to be material because the analysis of the Company's current long-term contracts under the new revenue recognition standard supports the recognition of revenue over time under the cost-to-cost method for substantially all of our long-term contracts, which is consistent with our current revenue recognition model. The Company plans to adopt this accounting standard update using the modified retrospective method, with the cumulative effect of initially applying this update recognized in the first reporting period of 2018. The Company has evaluated new disclosure requirements and is implementing appropriate changes to its business processes and controls to support disclosure under the new guidance. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The ASU simplifies several aspects for the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The ASU became effective for public companies during interim and annual reporting periods beginning after December 15, 2016. In accordance with this update, the Company began recognizing all excess tax deficiencies and tax benefits from share-based payment awards as a benefit or expense to income tax in the income statement. This update has been adopted prospectively in accordance with the ASU and the impact of adoption on the income statement was not material. Additionally, in accordance with this update, the Company began classifying excess income tax benefits from exercise of stock options as an operating activity on the consolidated statement of cash flows. The Company elected to adopt this amendment retrospectively and the impact of the adoption on operating and financing cash flows was not material. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Fair Value of Assets Acquired and Liabilities Assumed | For the Workhorse, Precision Turbo, and Unitrac acquisitions, the following table summarizes the final fair value of assets acquired and liabilities assumed at the date of acquisition. Melett TTC ATP Workhorse Precision Turbo Unitrac December 4, 2017 April 5, 2017 March 13, 2017 December 14, 2016 November 17, 2016 May 5, 2016 In thousands Current assets $ 21,068 $ 3,746 $ 11,666 $ 9,137 $ 4,145 $ 11,476 Property, plant & equipment 5,917 5,909 5,354 — 1,317 1,768 Goodwill 22,501 16,309 29,034 22,273 4,248 2,442 Other intangible assets 39,259 12,300 25,000 21,500 5,200 1,230 Total assets acquired 88,745 38,264 71,054 52,910 14,910 16,916 Total liabilities assumed (14,789 ) (5,753 ) (5,800 ) (9,083 ) (1,057 ) (2,145 ) Net assets acquired $ 73,956 $ 32,511 $ 65,254 $ 43,827 $ 13,853 $ 14,771 For the Gerken acquisition, the following table summarizes the final fair value of the assets acquired and liabilities assumed at the date of the acquisition. AM General Gerken October 2, 2017 August 1, 2016 In thousands Current assets $ 6,611 $ 32,706 Property, plant & equipment 4,140 7,667 Goodwill 12,943 17,470 Other intangible assets 12,097 30,560 Other assets — 1,706 Total assets acquired 35,791 90,109 Total liabilities assumed (25,375 ) (27,262 ) Net assets acquired $ 10,416 $ 62,847 The following table summarizes the final fair values of the Faiveley Transport assets acquired and liabilities assumed. In thousands Assets acquired Cash and cash equivalents $ 178,318 Accounts receivable 439,631 Inventories 205,649 Other current assets 70,930 Property, plant, and equipment 148,746 Goodwill 1,262,350 Trade names 346,328 Customer Relationships 233,529 Patents 1,201 Other noncurrent assets 184,564 Total assets acquired 3,071,246 Liabilities assumed Current liabilities 819,493 Debt 409,899 Other noncurrent liabilities 335,039 Total liabilities assumed 1,564,431 Net assets acquired $ 1,506,815 |
Pro Forma Financial Information | The following unaudited pro forma financial information presents income statement results as if the acquisitions listed above had occurred January 1, 2016: For the year ended In thousands 2017 2016 Net sales $ 3,946,244 $ 4,212,617 Gross profit 1,095,101 1,275,835 Net income attributable to Wabtec shareholders 271,783 349,852 Diluted earnings per share As Reported $ 2.72 $ 3.34 Pro forma $ 2.82 $ 3.83 |
SUPPLEMENTAL CASH FLOW DISCLO36
SUPPLEMENTAL CASH FLOW DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow Disclosures | Year Ended December 31, 2017 2016 2015 In thousands Interest paid during the year $ 75,317 $ 30,211 $ 19,372 Income taxes paid during the year, net of amount refunded $ 89,379 $ 121,563 $ 147,958 Business acquisitions: Fair value of assets acquired 452,209 3,118,420 156,020 Liabilities assumed 207,788 1,453,382 20,789 Non-controlling interest (acquired) assumed (738,024 ) 760,343 — Stock and cash paid 982,445 904,695 135,231 Less: Cash acquired 35,408 186,903 5,681 Stock used for acquisition 25,500 534,679 — Net cash paid $ 921,537 $ 183,113 $ 129,550 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventory, Net of Reserves | The components of inventory, net of reserves, were: December 31, In thousands 2017 2016 Raw materials $ 378,481 $ 331,465 Work-in-progress 167,390 145,462 Finished goods 196,763 181,583 Total inventories $ 742,634 $ 658,510 |
PROPERTY, PLANT & EQUIPMENT (Ta
PROPERTY, PLANT & EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Major Classes of Depreciable Assets | The major classes of depreciable assets are as follows: December 31, In thousands 2017 2016 Machinery and equipment $ 728,257 $ 645,354 Buildings and improvements 259,561 225,307 Land and improvements 38,228 41,569 Property, plant and equipment 1,026,046 912,230 Less: accumulated depreciation (452,074 ) (393,854 ) Total $ 573,972 $ 518,376 |
Estimated Useful Lives of Property Plant and Equipment | The estimated useful lives of property, plant and equipment are as follows: Years Land improvements 10 to 20 Building and improvements 20 to 40 Machinery and equipment 3 to 15 |
INTANGIBLES (Tables)
INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in the Carrying Amount of Goodwill by Segment | The change in the carrying amount of goodwill by segment for the year ended December 31, 2017 is as follows: Freight Transit In thousands Segment Segment Total Balance at December 31, 2016 $ 550,902 $ 1,527,863 $ 2,078,765 Additions 152,096 34,391 186,487 Foreign currency impact 15,960 178,891 194,851 Balance at December 31, 2017 $ 718,958 $ 1,741,145 $ 2,460,103 |
Intangible Assets of the Company, Other Than Goodwill and Trademarks | Intangible assets of the Company, other than goodwill and trade names, consist of the following: December 31, In thousands 2017 2016 Patents, non-compete and other intangibles, net of accumulated amortization of $43,021 and $40,638 $ 17,554 $ 15,360 Customer relationships, net of accumulated amortization of $126,824 and $87,334 583,459 528,068 Total $ 601,013 $ 543,428 |
Estimated Amortization Expense Five Succeeding Years | Estimated amortization expense for the five succeeding years is as follows (in thousands): 2018 $ 38,059 2019 36,076 2020 34,050 2021 33,777 2022 33,489 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following: December 31, In thousands 2017 2016 3.45% Senior Notes due 2026, net of unamortized debt $ 747,655 $ 747,474 4.375% Senior Notes due 2023, net of unamortized 248,567 248,310 Revolving Credit Facility and Term Loan, net of unamortized 853,124 796,150 Schuldschein Loan 11,998 98,671 Other Borrowings 6,860 1,153 Capital Leases 2,324 1,018 Total 1,870,528 1,892,776 Less - current portion 47,225 129,809 Long-term portion $ 1,823,303 $ 1,762,967 |
Principal Repayments of Debt and Capital Lease | Scheduled principal repayments of debt and capital lease balances as of December 31, 2017 are as follows: 2018 $ 47,225 2019 330,901 2020 559 2021 483,379 2022 208 Future years 1,008,256 Total $ 1,870,528 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of U.S. and International Pension Plans with Accumulated Benefit Obligations and with Projected Benefit Obligations in Excess of Plan Assets | U.S. International In thousands 2017 2016 2017 2016 Information for pension plans with accumulated benefit obligations in excess of Plan assets: Projected benefit obligation $ (44,213 ) $ (45,512 ) $ (282,077 ) $ (255,682 ) Accumulated benefit obligation (43,340 ) (44,530 ) (274,557 ) (249,729 ) Fair value of plan assets 37,432 35,802 200,218 170,367 Information for pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ (44,213 ) $ (45,512 ) $ (283,106 ) $ (256,530 ) Fair value of plan assets 37,432 35,802 201,115 171,133 |
Pension Plan Assets by Asset Category | Plan assets by asset category at December 31, 2017 and 2016 are as follows: U.S. International In thousands 2017 2016 2017 2016 Pension Plan Assets Equity security funds $ 18,122 $ 17,446 $ 100,453 $ 92,201 Debt security funds and other 18,304 17,038 178,730 145,003 Cash and cash equivalents 1,006 1,318 2,419 4,079 Fair value of plan assets $ 37,432 $ 35,802 $ 281,602 $ 241,283 |
Schedule of Pension Plan Assets Measured at Fair Value | The following tables summarize our pension plan assets measured at fair value on a recurring basis by fair value hierarchy level (See Note 18): December 31, 2017 In thousands NAV Level 1 Level 2 Level 3 Total US: Equity $ — $ 18,122 $ — $ — $ 18,122 Debt Securities — 4,273 14,031 — 18,304 Cash and cash equivalents — 1,006 — — 1,006 International: Equity $ 4,586 $ 38,647 $ 95,641 $ — $ 138,874 Debt Securities — — 111,204 — 111,204 Insurance Contracts — — 15,893 13,123 29,016 Cash and cash equivalents — 2,507 — — 2,507 Total $ 4,586 $ 64,555 $ 236,769 $ 13,123 $ 319,033 December 31, 2016 In thousands NAV Level 1 Level 2 Level 3 Total US: Equity $ — $ 17,446 $ — $ — $ 17,446 Debt Securities — 4,766 12,272 — 17,038 Cash and cash equivalents — 1,318 — — 1,318 International: Equity $ 3,589 $ 38,053 $ 78,694 $ — $ 120,336 Debt Securities — — 90,508 — 90,508 Insurance Contracts — — 13,037 12,996 26,033 Cash and cash equivalents — 4,406 — — 4,406 Total $ 3,589 $ 65,989 $ 194,511 $ 12,996 $ 277,085 |
Schedule of Reconciliation of Level 3 Assets | The following table presents a reconciliation of Level 3 assets: In thousands Total Balance at December 31, 2015 $ — Net purchases, issuances, and settlements 56 Net realized and unrealized gains (losses) included in earnings (5 ) Business acquisition 12,949 Other (4 ) Balance at December 31, 2016 $ 12,996 Net purchases, issuances, and settlements 778 Net realized and unrealized gains (losses) included in earnings 375 Opening balance sheet adjustment (1,308 ) Other 282 Balance at December 31, 2017 $ 13,123 |
Costs Recognized Under Defined Contribution Plans and Multiemployer Pension Plans | Costs recognized under these plans are summarized as follows: For the year ended In thousands 2017 2016 2015 Multi-employer pension and health & welfare plans $ 1,522 $ 2,054 $ 2,584 401(k) savings and other defined contribution plans 23,209 23,062 21,399 Total $ 24,731 $ 25,116 $ 23,983 |
Contributions in Multiemployer Pension Plans | The Company’s participation in multi-employer plans for the year ended December 31, 2017 is outlined in the table below. For plans that are not individually significant to the Company, the total amount of contributions is presented in the aggregate. Pension Protection FIP/ Contributions by Expiration RP Status Surcharge Collective Pension Fund EIN/PN (a) 2016 2015 Implemented (c) 2017 2016 2015 (d) Agreements Idaho Operating Engineers- EIN # 91-6075538 Green Green No $ 1,020 (1) $ 1,306 (1 ) $ 1,820 (1 ) No 6/30/2018 Employers Pension Trust Fund Plan# 001 Automobile Mechanics' Local No 701 Union and EIN # 36-6042061 Yellow Red Yes (2) $ 501 (3) $ 748 $ 764 No (4) 6/1/2018 Industry Pension Plan Plan # 001 Total Contributions $ 1,521 $ 2,054 $ 2,584 (1) The Company’s contribution represents more than 5% of the total contributions to the plan. (2) The Pension Fund’s board adopted a Funding Improvement Plan on October 21, 2015, continuing the existing plan which increased the weekly pension fund contribution rates by $75 with corresponding decreases to the weekly welfare fund contribution rates until December 31, 2017. (3) The number of employees covered by this fund decreased due to the closure of the Bensenville, Illinois facility, which affected the period-to-period comparability of 2016 and 2017 contributions. (4) Critical status triggered a 5% surcharge on employer contributions effective June 2012. Effective January 1, 2013, this surcharge increases to 10% . The surcharge ended on October 21, 2015 when the rehabilitation plan commenced. (a) The “EIN / PN” column provides the Employer Identification Number and the three-digit plan number assigned to a plan by the Internal Revenue Service. (b) The most recent Pension Protection Act Zone Status available for 2017 and 2016 is for plan years that ended in 2016 and 2015, respectively. The zone status is based on information provided to the Company and other participating employers by each plan and is certified by the plan’s actuary. A plan in the “red” zone has been determined to be in “critical status”, based on criteria established under the Internal Revenue Code (“Code”), and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Code, and is generally less than 80% funded. A plan in the “green” zone has been determined to be neither in “critical status” nor in “endangered status”, and is generally at least 80% funded. (c) The “FIP/RP Status Pending/Implemented” column indicates whether a Funding Improvement Plan, as required under the Code to be adopted by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2017 . (d) The “Surcharge Imposed” column indicates whether the Company’s contribution rate for 2017 included an amount in addition the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status”, in accordance with the requirements of the Code. |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Obligations and Funded Status | The following tables provide information regarding the Company’s defined benefit pension plans summarized by U.S. and international components. Obligations and Funded Status U.S. International In thousands 2017 2016 2017 2016 Change in projected benefit obligation Obligation at beginning of year $ (45,512 ) $ (46,120 ) $ (319,551 ) $ (195,311 ) Opening balance sheet adjustment — — (5,321 ) — Service cost (344 ) (337 ) (2,740 ) (1,379 ) Interest cost (1,422 ) (1,475 ) (7,310 ) (5,774 ) Employee contributions — — (880 ) (195 ) Plan curtailments and amendments — — 4,153 2,061 Benefits paid 3,079 3,893 12,906 9,427 Acquisition — — — (114,242 ) Actuarial gain (loss) (14 ) (1,473 ) (3,009 ) (33,330 ) Effect of currency rate changes — — (31,265 ) 19,192 Obligation at end of year $ (44,213 ) $ (45,512 ) $ (353,017 ) $ (319,551 ) Change in plan assets Fair value of plan assets at beginning of year $ 35,802 $ 37,640 $ 241,283 $ 168,069 Opening balance sheet adjustment — — 2,058 — Actual return on plan assets 4,223 2,055 19,102 20,066 Employer contributions 486 — 13,479 6,933 Employee contributions — — 880 195 Benefits paid (3,079 ) (3,893 ) (12,905 ) (9,427 ) Acquisition — — — 70,519 Settlements (4,523 ) Effect of currency rate changes — — 22,228 (15,072 ) Fair value of plan assets at end of year $ 37,432 $ 35,802 $ 281,602 $ 241,283 Funded status Fair value of plan assets $ 37,432 $ 35,802 $ 281,602 $ 241,283 Benefit obligations (44,213 ) (45,512 ) (353,017 ) (319,551 ) Funded status $ (6,781 ) $ (9,710 ) $ (71,415 ) $ (78,268 ) Amounts recognized in the statement of financial position consist of: Noncurrent assets $ — $ — $ 10,577 $ 7,130 Current liabilities — — (2,158 ) (2,042 ) Noncurrent liabilities (6,781 ) (9,710 ) (79,834 ) (83,356 ) Net amount recognized $ (6,781 ) $ (9,710 ) $ (71,415 ) $ (78,268 ) Amounts recognized in accumulated other comprehensive income (loss) consist of: Prior service cost (6 ) (8 ) (32 ) (56 ) Net actuarial loss (20,418 ) (23,884 ) (54,043 ) (56,411 ) Net amount recognized $ (20,424 ) $ (23,892 ) $ (54,075 ) $ (56,467 ) |
Components of Net Periodic Benefit Costs | Components of Net Periodic Benefit Costs U.S. International In thousands 2017 2016 2015 2017 2016 2015 Service cost $ 344 $ 337 $ 381 $ 2,740 $ 1,379 $ 2,015 Interest cost 1,422 1,475 1,914 7,310 5,774 7,091 Expected return on plan assets (1,731 ) (2,076 ) (2,168 ) (12,412 ) (9,971 ) (9,591 ) Amortization of initial net obligation and prior service cost 3 3 3 27 61 212 Amortization of net loss 989 914 1,062 2,846 1,818 2,379 Settlement and curtailment losses recognized — — — 768 218 — Net periodic benefit cost $ 1,027 $ 653 $ 1,192 $ 1,279 $ (721 ) $ 2,106 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income during 2017 are as follows: In thousands U.S. International Net gain (loss) arising during the year $ 2,477 $ 3,683 Effect of exchange rates — (4,945 ) Amortization, settlement, or curtailment recognition of net transition obligation — 768 Amortization or curtailment recognition of prior service cost 3 27 Amortization or settlement recognition of net loss 989 2,846 Total recognized in other comprehensive gain $ 3,469 $ 2,379 Total recognized in net periodic benefit cost and other comprehensive gain $ 2,442 $ 1,100 |
Weighted Average Assumptions Used to Develop Actuarial Present Value of Projected Benefit Obligation | The weighted average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed. U.S. International 2017 2016 2015 2017 2016 2015 Discount rate 3.56 % 3.95 % 4.21 % 2.40 % 2.51 % 3.56 % Expected return on plan assets 4.95 % 5.70 % 5.70 % 5.02 % 6.07 % 5.81 % Rate of compensation increase 3.00 % 3.00 % 3.00 % 2.54 % 2.54 % 3.10 % |
Amounts Included in Other Comprehensive Loss That are Expected to be Recognized as Components of Periodic Benefit Costs | As of December 31, 2017 , the following table represents the amounts included in other comprehensive loss that are expected to be recognized as components of periodic benefit costs in 2018 . In thousands U.S. International Prior service cost 3 22 Net actuarial loss 970 2,193 $ 973 $ 2,215 |
Benefit Payments Expected to be Paid to Plan Participants | Benefit payments expected to be paid to plan participants are as follows: In thousands U.S. International Year ended December 31, 2018 $ 3,250 $ 12,401 2019 3,301 12,403 2020 3,325 13,156 2021 3,160 13,799 2022 3,125 14,538 2023 through 2027 14,276 77,817 |
Other Postretirement Benefits Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Obligations and Funded Status | The following tables provide information regarding the Company’s post retirement benefit plans summarized by U.S. and international components. Obligations and Funded Status U.S. International In thousands 2017 2016 2017 2016 Change in projected benefit obligation Obligation at beginning of year $ (11,876 ) $ (12,959 ) $ (3,425 ) $ (3,290 ) Service cost (5 ) (4 ) (28 ) (29 ) Interest cost (350 ) (389 ) (98 ) (99 ) Plan amendments — 6 — — Benefits paid 970 720 199 133 Acquisition — (143 ) — — Actuarial gain (loss) (84 ) 893 (131 ) (42 ) Effect of currency rate changes — — (237 ) (98 ) Obligation at end of year $ (11,345 ) $ (11,876 ) $ (3,720 ) $ (3,425 ) Change in plan assets Fair value of plan assets at beginning of year $ — $ — $ — $ — Employer contributions 970 720 199 133 Benefits paid (970 ) (720 ) (199 ) (133 ) Fair value of plan assets at end of year $ — $ — $ — $ — Funded status Fair value of plan assets $ — $ — $ — $ — Benefit obligations (11,345 ) (11,876 ) (3,720 ) (3,425 ) Funded status $ (11,345 ) $ (11,876 ) $ (3,720 ) $ (3,425 ) U.S. International In thousands 2017 2016 2017 2016 Amounts recognized in the statement of financial position consist of: Current liabilities $ (1,046 ) $ (1,084 ) $ (208 ) $ (185 ) Noncurrent liabilities (10,299 ) (10,792 ) (3,512 ) (3,160 ) Net amount recognized $ (11,345 ) $ (11,876 ) $ (3,720 ) $ (3,345 ) Amounts recognized in accumulated other comprehensive income (loss) consist of: Prior service credit 19,616 21,134 9 15 Net actuarial (loss) gain (18,882 ) (20,023 ) 154 292 Net amount recognized $ 734 $ 1,111 $ 163 $ 307 |
Components of Net Periodic Benefit Costs | Components of Net Periodic Benefit Cost U.S. International In thousands 2017 2016 2015 2017 2016 2015 Service cost $ 5 $ 4 $ 9 $ 28 $ 29 $ 38 Interest cost 350 389 1,233 98 99 128 Amortization of initial net obligation and prior service cost (1,519 ) (1,709 ) (2,295 ) (7 ) (7 ) (7 ) Amortization of net loss (gain) 1,225 1,287 1,356 (23 ) (29 ) (30 ) Net periodic benefit cost (credit) $ 61 $ (29 ) $ 303 $ 96 $ 92 $ 129 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income during 2017 are as follows: In thousands U.S. International Net loss arising during the year (84 ) (131 ) Effect of exchange rates — 16 Amortization or curtailment recognition of prior service cost (1,519 ) (7 ) Amortization or settlement recognition of net loss (gain) 1,225 (23 ) Total recognized in other comprehensive income (loss) $ (378 ) $ (145 ) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (317 ) $ (53 ) |
Weighted Average Assumptions Used to Develop Actuarial Present Value of Projected Benefit Obligation | The weighted average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed and also the net periodic benefit cost for the following year. The discount rate is based on settling the pension obligation with high grade, high yield corporate bonds. U.S. International 2017 2016 2015 2017 2016 2015 Discount rate 3.43 % 3.76 % 3.95 % 3.21 % 3.46 % 3.80 % |
Amounts Included in Other Comprehensive Loss That are Expected to be Recognized as Components of Periodic Benefit Costs | As of December 31, 2017 , the following table represents the amounts included in other comprehensive loss that are expected to be recognized as components of periodic benefit costs in 2018 . In thousands U.S. International Prior service credit (1,519 ) (7 ) Net actuarial loss (gain) 1,216 (8 ) $ (303 ) $ (15 ) |
Benefit Payments Expected to be Paid to Plan Participants | Benefit payments expected to be paid to plan participants are as follows: In thousands U.S. International Year ended December 31, 2018 $ 1,046 $ 208 2019 1,024 220 2020 986 225 2021 950 245 2022 908 251 2023 through 2027 3,956 1,352 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income from Operations before Provision for Income Taxes | The components of the income from operations before provision for income taxes for the Company’s domestic and foreign operations for the years ended December 31 are provided below: For the year ended In thousands 2017 2016 2015 Domestic $ 140,325 $ 276,218 $ 461,394 Foreign 211,738 136,619 123,974 Income from operations before income taxes $ 352,063 $ 412,837 $ 585,368 |
Consolidated Provision for Income Taxes | The consolidated provision for income taxes included in the Statement of Income consisted of the following: For the year ended December 31, In thousands 2017 2016 2015 Current taxes Federal $ 86,157 $ 72,317 $ 141,245 State 3,644 9,953 16,072 Foreign 67,395 27,391 24,442 157,196 109,661 181,759 Deferred taxes Federal (22,863 ) 11,013 9,606 State (1,024 ) 1,953 770 Foreign (43,536 ) (23,194 ) (5,395 ) (67,423 ) (10,228 ) 4,981 Total provision $ 89,773 $ 99,433 $ 186,740 |
Reconciliation of Income Tax Rate | A reconciliation of the United States federal statutory income tax rate to the effective income tax rate on operations for the years ended December 31 is provided below: For the year ended December 31, In thousands 2017 2016 2015 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State taxes 0.4 % 2.1 % 2.0 % Tax reserves — % (0.2 )% (0.4 )% Foreign (8.3 )% (4.3 )% (2.1 )% Research and development credit (0.8 )% (1.0 )% (0.4 )% Manufacturing deduction (1.1 )% (1.8 )% (2.3 )% France tax rate change (6.5 )% (6.5 )% — % U.S. tax rate change (7.9 )% — % — % U.S. tax reform provision 15.6 % — % — % Transaction costs related to acquisitions — % 1.5 % — % Other, net (0.9 )% (0.7 )% 0.1 % Effective rate 25.5 % 24.1 % 31.9 % |
Components of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities were as follows: December 31, In thousands 2017 2016 Deferred income tax assets: Accrued expenses and reserves $ 10,961 $ 26,117 Warranty reserve 20,211 24,131 Deferred compensation/employee benefits 18,353 25,755 Pension and postretirement obligations 21,637 25,595 Inventory 19,620 22,579 Net operating loss carry forwards 65,671 59,416 Tax credit carry forwards 1,921 621 Other 13,053 2,317 Gross deferred income tax assets 171,427 186,531 Valuation allowance 25,683 21,418 Total deferred income tax assets 145,744 165,113 Deferred income tax liabilities: Property, plant & equipment 37,015 47,321 Intangibles 288,141 359,312 Total deferred income tax liabilities 325,156 406,633 Net deferred income tax liability $ (179,412 ) $ (241,520 ) |
Liability for Income Taxes Associated with Uncertain Tax Positions | A reconciliation of the beginning and ending amount of the liability for income taxes associated with unrecognized tax benefits follows: In thousands 2017 2016 2015 Gross liability for unrecognized tax benefits at beginning of year $ 8,423 $ 10,557 $ 12,596 Gross increases - unrecognized tax benefits in prior periods 2,466 6 — Gross increases - current period unrecognized tax benefits — — 1,682 Gross decreases - unrecognized tax benefits in prior periods — — — Gross decreases - audit settlement during year (3,979 ) — (3,027 ) Gross decreases - expiration of audit statute of limitations — (2,140 ) (694 ) Gross liability for unrecognized tax benefits at end of year $ 6,910 $ 8,423 $ 10,557 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | The computation of earnings per share from operations is as follows: For the Year Ended December 31, In thousands, except per share data 2017 2016 2015 Numerator Numerator for basic and diluted earnings per common share - net income attributable to Wabtec shareholders $ 262,261 $ 304,887 $ 398,628 Less: dividends declared - common shares and non-vested restricted stock (42,218 ) (32,430 ) (26,963 ) Undistributed earnings 220,043 272,457 371,665 Percentage allocated to common shareholders (1) 99.7 % 99.7 % 99.7 % 219,383 271,640 370,550 Add: dividends declared - common shares 42,092 32,333 26,875 Numerator for basic and diluted earnings per common share $ 261,475 $ 303,973 $ 397,425 Denominator Denominator for basic earnings per common share - weighted average shares 95,453 90,359 96,074 Effect of dilutive securities: Assumed conversion of dilutive stock-based compensation plans 672 782 932 Denominator for diluted earnings per common share - adjusted weighted average shares and assumed conversion 96,125 91,141 97,006 Net income per common share attributable to Wabtec shareholders Basic $ 2.74 $ 3.37 $ 4.14 Diluted $ 2.72 $ 3.34 $ 4.10 (1) Basic weighted-average common shares outstanding 95,453 90,359 96,074 Basic weighted-average common shares outstanding and non-vested restricted stock expected to vest 95,740 90,627 96,388 Percentage allocated to common shareholders 99.7 % 99.7 % 99.7 % |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity | The following table summarizes the Company’s stock option activity and related information for the 2011 Plan, the 2000 Plan and Directors Plan for the years ended December 31: Options Weighted Weighted Average Aggregate Outstanding at December 31, 2014 1,147,558 $ 28.33 5.5 $ 67,205 Granted 84,675 87.35 1,375 Exercised (124,156 ) 26.70 (5,516 ) Canceled (10,754 ) 65.22 (64 ) Outstanding at December 31, 2015 1,097,323 $ 32.70 4.8 $ 42,154 Granted 94,115 61.39 2,035 Exercised (83,790 ) 25.58 (4,813 ) Canceled (8,825 ) 71.47 (102 ) Outstanding at December 31, 2016 1,098,823 $ 35.39 4.3 $ 52,332 Granted 65,522 86.91 — Exercised (166,838 ) 21.37 (10,020 ) Canceled (13,995 ) 76.89 (64 ) Outstanding at December 31, 2017 983,512 $ 40.62 4.0 $ 40,137 Exercisable at December 31, 2017 802,609 $ 32.52 3.3 $ 36,848 |
Stock Options Outstanding | Options outstanding at December 31, 2017 were as follows: Number of Weighted Weighted Number of Weighted Average Range of exercise prices Outstanding Outstanding Life Exercisable Exercisable Under $15.00 180,000 $ 14.50 1.1 180,000 $ 14.50 15.00 - 23.00 193,701 18.77 1.3 193,701 18.77 23.00 - 30.00 136,924 28.75 2.8 136,924 28.75 30.00 - 38.00 94,496 35.24 4.1 94,496 35.24 Over 38.00 378,391 69.86 7.0 197,488 63.72 983,512 $ 40.62 802,609 $ 32.52 |
Schedule of Share-Based Fair Value of Each Option Grant Weighted-Average Assumptions | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: For the year ended December 31, 2017 2016 2015 Dividend yield 0.23 % 0.26 % 0.14 % Risk-free interest rate 2.2 % 1.5 % 1.8 % Stock price volatility 23.4 % 26.9 % 27.3 % Expected life (years) 5.0 5.0 5.0 Weighted average fair value of options granted during the year $ 20.69 $ 14.96 $ 24.41 |
Restricted Stock Activity and Incentive Stock Awards Activity | The following table summarizes the restricted stock activity and related information for the 2011 Plan, the 2000 Plan, and Directors Plan, and incentive stock units activity and related information for the 2011 Plan and the 2000 Plan with related information for the years ended December 31: Restricted Incentive Weighted Outstanding at December 31, 2014 438,543 791,608 $ 47.97 Granted 113,945 126,050 87.90 Vested (182,776 ) (433,932 ) 37.76 Adjustment for incentive stock awards expected to vest — 65,666 57.57 Canceled (12,827 ) (7,754 ) 67.05 Outstanding at December 31, 2015 356,885 541,638 $ 65.89 Granted 212,600 167,850 66.03 Vested (159,975 ) (236,591 ) 51.80 Adjustment for incentive stock awards expected to vest — (38,164 ) 74.42 Canceled (13,215 ) (9,983 ) 71.84 Outstanding at December 31, 2016 396,295 424,750 $ 72.18 Granted 153,516 157,025 86.66 Vested (137,088 ) (153,271 ) 70.34 Adjustment for incentive stock awards expected to vest — (87,592 ) 73.69 Canceled (13,723 ) (13,579 ) 76.61 Outstanding at December 31, 2017 399,000 327,333 $ 78.76 |
OTHER COMPREHENSIVE LOSS (Table
OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss were: December 31, In thousands 2017 2016 Foreign currency translation gain (loss) $ 5,063 $ (321,033 ) Unrealized gain (loss) on interest rate swap contracts, net of tax of $1,338 and $1,540 4,015 (2,957 ) Unrealized loss on pension and post-retirement benefit plans, net of tax of $19,532 and $20,832 (54,070 ) (55,615 ) Total accumulated other comprehensive loss $ (44,992 ) $ (379,605 ) |
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax | The changes in accumulated other comprehensive loss by component, net of tax, for the year-ended December 31, 2016 are as follows: Foreign Derivative Pension and In thousands translation contracts benefits plans Total Balance at December 31, 2015 $ (227,349 ) $ (2,987 ) $ (46,383 ) $ (276,719 ) Other comprehensive income before reclassifications (93,684 ) (1,286 ) (10,874 ) (105,844 ) Amounts reclassified from accumulated other comprehensive income — 1,316 1,642 2,958 Net current period other comprehensive income (93,684 ) 30 (9,232 ) (102,886 ) Balance at December 31, 2016 $ (321,033 ) $ (2,957 ) $ (55,615 ) $ (379,605 ) The changes in accumulated other comprehensive loss by component, net of tax, for the year-ended December 31, 2017 are as follows: Foreign Derivative Pension and In thousands translation contracts benefits plans Total Balance at December 31, 2016 $ (321,033 ) $ (2,957 ) $ (55,615 ) $ (379,605 ) Other comprehensive income before reclassifications 326,096 6,712 (1,017 ) 331,791 Amounts reclassified from accumulated other comprehensive income — 260 2,562 2,822 Net current period other comprehensive income 326,096 6,972 1,545 334,613 Balance at December 31, 2017 $ 5,063 $ 4,015 $ (54,070 ) $ (44,992 ) |
Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications out of accumulated other comprehensive loss for the year-ended December 31, 2016 are as follows: Amount reclassified from Affected line item in the In thousands comprehensive income Statements of Income Amortization of defined pension and post retirement items Amortization of initial net obligation and prior service cost $ (1,652 ) Cost of sales Amortization of net loss (gain) 3,989 Cost of sales 2,337 Income from Operations (695 ) Income tax expense $ 1,642 Net income Derivative contracts Realized loss on derivative contracts 1,873 Interest expense, net (557 ) Income tax expense $ 1,316 Net income Reclassifications out of accumulated other comprehensive loss for the year-ended December 31, 2017 are as follows: Amount reclassified from Affected line item in the In thousands comprehensive income Statements of Income Amortization of defined pension and post retirement items Amortization of initial net obligation and prior service cost $ (1,496 ) Cost of sales Amortization of net loss (gain) 5,037 Cost of sales 3,541 Income from Operations (979 ) Income tax expense $ 2,562 Net income Derivative contracts Realized loss on derivative contracts 400 Interest expense, net (140 ) Income tax expense $ 260 Net income |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Rental Payments Under Operating Leases | Future minimum rental payments under operating leases with remaining non-cancelable terms in excess of one year are as follows: Real In thousands Estate Equipment Total 2018 $ 28,957 $ 2,690 $ 31,647 2019 25,857 1,925 27,782 2020 24,266 976 25,242 2021 19,561 512 20,073 2022 16,350 271 16,621 2023 and after 66,017 24 66,041 |
WARRANTIES (Tables)
WARRANTIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Changes in Product Warranty Reserve | The following table reconciles the changes in the Company’s product warranty reserve as follows: In thousands 2017 2016 Balance at beginning of year $ 138,992 $ 92,064 Warranty expense 50,385 28,947 Acquisitions 806 59,685 Warranty claim payments (48,548 ) (38,772 ) Foreign currency impact 11,428 (2,932 ) Balance at end of year $ 153,063 $ 138,992 |
DERIVATIVE FINANCIAL INSTRUME48
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Notional Amounts and Fair Value | The following table summarizes the gross notional amounts and fair values of the designated and non-designated hedged discussed in the above sections: In millions Designated Non-Designated Total Gross notional amount $ 805.1 $ 379.7 $ 1,184.8 Fair Value: Other current assets 3.5 2.1 5.6 Other current liabilities — — — Total $ 3.5 $ 2.1 $ 5.6 |
FAIR VALUE MEASUREMENT AND FA49
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Liabilities Carried at Fair Value Measured on Recurring Basis | The following table provides the liabilities carried at fair value measured on a recurring basis as of December 31, 2017 , which are included in other current liabilities on the Consolidated Balance sheet: Fair Value Measurements at December 31, 2017 Using Total Carrying Quoted Prices in Significant Other Significant In thousands 2017 (Level 1) (Level 2) (Level 3) Interest rate swap agreements 1,163 — 1,163 — Total $ 1,163 $ — $ 1,163 $ — The following table provides the liabilities carried at fair value measured on a recurring basis as of December 31, 2016 , which are included in other current liabilities on the Consolidated Balance sheet: Fair Value Measurements at December 31, 2016 Using Total Carrying Quoted Prices in Significant Other Significant In thousands 2016 (Level 1) (Level 2) (Level 3) Interest rate swap agreements 3,888 — 3,888 — Total $ 3,888 $ — $ 3,888 $ — |
Estimated Fair Values and Related Carrying Values of Financial Instruments | The estimated fair values and related carrying values of the Company’s financial instruments are as follows: December 31, 2017 December 31, 2016 Carry Fair Carry Fair In thousands Value Value Value Value Interest rate swap agreements $ 1,163 $ 1,163 $ 3,888 $ 3,888 4.375% Senior Notes 248,567 262,033 248,310 260,265 3.45% Senior Notes 747,655 741,113 747,474 719,273 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Financial Information | Segment financial information for 2017 is as follows: Corporate Freight Transit Activities and In thousands Segment Segment Elimination Total Sales to external customers $ 1,396,588 $ 2,485,168 $ — $ 3,881,756 Intersegment sales/(elimination) 37,630 21,548 (59,178 ) — Total sales $ 1,434,218 $ 2,506,716 $ (59,178 ) $ 3,881,756 Income (loss) from operations $ 264,603 $ 188,546 $ (31,416 ) $ 421,733 Interest expense and other, net — — (69,670 ) (69,670 ) Income (loss) from operations before income taxes $ 264,603 $ 188,546 $ (101,086 ) $ 352,063 Depreciation and amortization $ 43,721 $ 57,441 $ 2,086 $ 103,248 Capital expenditures 33,921 50,762 4,783 89,466 Segment assets 3,504,289 7,562,122 (4,486,431 ) 6,579,980 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 $ 1,235,283 $ — $ 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 |
Geographic Area Data | The following geographic area data as of and for the years ended December 31, 2017 , 2016 and 2015 , 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 2017 2016 2015 2017 2016 2015 United States $ 1,323,781 $ 1,362,255 $ 1,754,924 $ 211,608 $ 205,895 $ 171,362 United Kingdom 356,493 322,563 368,505 57,668 54,215 63,694 Canada 279,013 206,258 204,674 5,822 5,156 4,876 France 237,454 66,287 45,565 57,849 33,636 7,194 Germany 208,817 98,364 92,422 71,709 57,902 31,642 China 178,137 106,357 100,586 36,388 42,672 12,256 Mexico 160,029 183,583 190,034 9,117 8,766 8,839 Italy 142,037 45,771 38,164 30,329 27,253 15,170 India 137,837 24,161 12,345 12,519 1,271 1,946 Australia 136,127 82,099 86,809 10,483 8,039 8,424 Brazil 69,378 51,493 84,595 13,184 13,227 9,318 Other international 652,653 381,997 329,375 57,296 60,344 18,472 Total $ 3,881,756 $ 2,931,188 $ 3,307,998 $ 573,972 $ 518,376 $ 353,193 |
Sales by Product | Sales by product are as follows: In thousands 2017 2016 2015 Specialty Products & Electronics $ 1,350,727 $ 1,374,580 $ 1,733,881 Brake Products 749,959 588,081 627,552 Remanufacturing, Overhaul & Build 522,275 559,284 606,624 Transit Products 1,112,340 276,124 189,581 Other 146,455 133,119 150,360 Total sales $ 3,881,756 $ 2,931,188 $ 3,307,998 |
GUARANTOR SUBSIDIARIES FINANC51
GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | Balance Sheet for December 31, 2017 : In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Cash and cash equivalents $ 933 $ 4,802 $ 227,666 $ — $ 233,401 Receivables, net 77,046 237,360 852,381 — 1,166,787 Inventories 120,937 137,972 483,725 — 742,634 Current assets - other 1,142 4,507 116,642 — 122,291 Total current assets 200,058 384,641 1,680,414 — 2,265,113 Property, plant and equipment 52,532 136,382 385,058 — 573,972 Goodwill 25,274 546,527 1,888,302 — 2,460,103 Investment in subsidiaries 6,517,205 2,570,391 — (9,087,596 ) — Other intangibles, net 30,575 251,347 922,510 — 1,204,432 Other long term assets 17,414 295 58,651 — 76,360 Total assets $ 6,843,058 $ 3,889,583 $ 4,934,935 $ (9,087,596 ) $ 6,579,980 Current liabilities $ 196,827 217,176 $ 1,159,327 — $ 1,573,330 Inter-company 2,121,546 (2,026,634 ) (94,912 ) — — Long-term debt 1,661,771 14 161,518 — 1,823,303 Long-term liabilities - other 54,046 67,824 232,945 — 354,815 Total liabilities 4,034,190 (1,741,620 ) 1,458,878 — 3,751,448 Shareholders' equity 2,808,868 5,632,665 3,454,931 (9,087,596 ) 2,808,868 Non-controlling interest — (1,462 ) 21,126 — 19,664 Total shareholders' equity $ 2,808,868 $ 5,631,203 $ 3,476,057 $ (9,087,596 ) $ 2,828,532 Total Liabilities and Shareholders' Equity $ 6,843,058 $ 3,889,583 $ 4,934,935 $ (9,087,596 ) $ 6,579,980 Balance Sheet for December 31, 2016 : In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Cash and cash equivalents $ 2,522 $ 9,496 $ 386,466 $ — $ 398,484 Receivables, net 79,041 202,779 660,688 — 942,508 Inventories 120,042 128,076 410,392 — 658,510 Current assets - other 52,576 (17,844 ) 833,397 — 868,129 Total current assets 254,181 322,507 2,290,943 — 2,867,631 Property, plant and equipment 49,031 126,661 342,684 — 518,376 Goodwill 25,275 477,472 1,576,018 — 2,078,765 Investment in subsidiaries 5,388,613 1,325,150 — (6,713,763 ) — Other intangibles, net 31,897 204,512 817,451 — 1,053,860 Other long term assets 9,592 (1,914 ) 54,708 — 62,386 Total assets $ 5,758,589 $ 2,454,388 $ 5,081,804 $ (6,713,763 ) $ 6,581,018 Current liabilities $ 194,983 196,956 $ 1,054,700 — $ 1,446,639 Inter-company 1,562,399 (1,848,777 ) 286,378 — — Long-term debt 1,761,933 58 976 — 1,762,967 Long-term liabilities - other 33,298 74,977 286,312 — 394,587 Total liabilities 3,552,613 (1,576,786 ) 1,628,366 — 3,604,193 Shareholders' equity 2,205,976 4,032,250 2,681,514 (6,713,763 ) 2,205,977 Non-controlling interest — (1,076 ) 771,924 — 770,848 Total shareholders' equity $ 2,205,976 $ 4,031,174 $ 3,453,438 $ (6,713,763 ) $ 2,976,825 Total Liabilities and Shareholders' Equity $ 5,758,589 $ 2,454,388 $ 5,081,804 $ (6,713,763 ) $ 6,581,018 |
Condensed Income Statement | Income Statement for the Year Ended December 31, 2017 : In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Net Sales $ 577,397 $ 1,067,954 $ 2,378,817 $ (142,412 ) $ 3,881,756 Cost of sales (440,911 ) (675,546 ) (1,808,370 ) 108,384 (2,816,443 ) Gross profit (loss) 136,486 392,408 570,447 (34,028 ) 1,065,313 Total operating expenses (113,872 ) (123,423 ) (406,285 ) — (643,580 ) Income (loss) from operations 22,614 268,985 164,162 (34,028 ) 421,733 Interest (expense) income, net (72,233 ) 8,843 (5,314 ) — (68,704 ) Other income (expense), net 5,103 289 (6,358 ) — (966 ) Equity earnings (loss) 416,068 131,620 — (547,688 ) — Pretax income (loss) 371,552 409,737 152,490 (581,716 ) 352,063 Income tax expense (109,294 ) 32,393 (12,872 ) — (89,773 ) Net income (loss) 262,258 442,130 139,618 (581,716 ) 262,290 Less: Net income attributable to noncontrolling interest — 386 (415 ) — (29 ) Net income (loss) attributable to Wabtec shareholders $ 262,258 $ 442,516 $ 139,203 $ (581,716 ) $ 262,261 Comprehensive income (loss) attributable to Wabtec shareholders $ 263,907 $ 442,516 $ 472,167 $ (581,716 ) $ 596,874 Income Statement for the Year Ended December 31, 2016 : In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Net Sales $ 641,809 $ 1,112,001 $ 1,322,937 $ (145,559 ) $ 2,931,188 Cost of sales (473,700 ) (708,062 ) (928,608 ) 103,421 (2,006,949 ) Gross profit (loss) 168,109 403,939 394,329 (42,138 ) 924,239 Total operating expenses (141,940 ) (122,617 ) (201,321 ) — (465,878 ) (Loss) income from operations 26,169 281,322 193,008 (42,138 ) 458,361 Interest (expense) income, net (34,975 ) 7,012 (14,598 ) — (42,561 ) Other income (expense), net 20,509 (2,284 ) (21,188 ) — (2,963 ) Equity earnings (loss) 322,650 131,234 — (453,884 ) — Pretax income (loss) 334,353 417,284 157,222 (496,022 ) 412,837 Income tax expense (29,466 ) (57,667 ) (12,300 ) — (99,433 ) Net income (loss) 304,887 359,617 144,922 (496,022 ) 313,404 Less: Net income attributable to noncontrolling interest — — (8,517 ) — (8,517 ) Net income attributable to Wabtec shareholders $ 304,887 $ 359,617 $ 136,405 $ (496,022 ) $ 304,887 Comprehensive income (loss) attributable to Wabtec shareholders $ 305,180 $ 359,617 $ 33,226 $ (496,022 ) $ 202,001 Income Statement for the Year Ended December 31, 2015: In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Net Sales $ 743,262 $ 1,436,935 $ 1,300,577 $ (172,776 ) $ 3,307,998 Cost of sales (531,269 ) (843,104 ) (976,798 ) 90,989 (2,260,182 ) Gross (loss) profit 211,993 593,831 323,779 (81,787 ) 1,047,816 Total operating expenses (142,953 ) (131,251 ) (166,045 ) — (440,249 ) (Loss) income from operations 69,040 462,580 157,734 (81,787 ) 607,567 Interest (expense) income, net (23,129 ) 5,914 327 — (16,888 ) Other income (expense), net 23,193 (9,140 ) (19,364 ) — (5,311 ) Equity earnings (loss) 506,903 112,286 — (619,189 ) — Pretax income (loss) 576,007 571,640 138,697 (700,976 ) 585,368 Income tax expense (177,379 ) 8,989 (18,350 ) — (186,740 ) Net income (loss) 398,628 580,629 120,347 (700,976 ) 398,628 Less: Net income attributable to noncontrolling interest — — — — — Net income attributable to Wabtec shareholders $ 398,628 $ 580,629 $ 120,347 $ (700,976 ) $ 398,628 Comprehensive income (loss) attributable to Wabtec shareholders $ 409,734 $ 580,629 $ (7,992 ) $ (700,976 ) $ 281,395 |
Condensed Cash Flow Statement | Condensed Statement of Cash Flows for the year ended December 31, 2017 : In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Net cash (used in) provided by operating activities $ (49,231 ) $ 249,204 $ 22,866 $ (34,028 ) $ 188,811 Net cash used in investing activities (11,156 ) (120,661 ) (143,912 ) — (275,729 ) Net cash provided by (used in) financing activities 58,798 (133,237 ) (57,020 ) 34,028 (97,431 ) Effect of changes in currency exchange rates — — 19,266 — 19,266 Increase (decrease) in cash (1,589 ) (4,694 ) (158,800 ) — (165,083 ) Cash, beginning of year 2,522 9,496 386,466 — 398,484 Cash, end of year $ 933 $ 4,802 $ 227,666 $ — $ 233,401 Condensed Statement of Cash Flows for the year ended December 31, 2016 : In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Net cash provided by (used in) operating activities $ (44,611 ) $ 332,822 $ 204,457 $ (42,138 ) $ 450,530 Net cash used in investing activities (829,783 ) (14,725 ) 69,443 — (775,065 ) Net cash (used in) provided by financing activities 876,916 (321,758 ) (74,325 ) 42,138 522,971 Effect of changes in currency exchange rates — — (26,143 ) — (26,143 ) (Decrease) increase in cash 2,522 (3,661 ) 173,432 — 172,293 Cash, beginning of year — 13,157 213,034 — 226,191 Cash, end of year $ 2,522 $ 9,496 $ 386,466 $ — $ 398,484 Condensed Statement of Cash Flows for the year ended December 31, 2015: In thousands Parent Guarantors Non-Guarantors Elimination Consolidated Net cash provided by (used in) operating activities $ (90,374 ) $ 487,516 $ 135,489 $ (81,787 ) $ 450,844 Net cash used in investing activities (7,862 ) (109,326 ) (262,948 ) — (380,136 ) Net cash provided by (used in) financing activities (48,570 ) (378,330 ) 93,615 81,787 (251,498 ) Effect of changes in currency exchange rates — — (18,868 ) — (18,868 ) Increase in cash (146,806 ) (140 ) (52,712 ) — (199,658 ) Cash, beginning of year 146,806 13,297 265,746 — 425,849 Cash, end of year $ — $ 13,157 $ 213,034 $ — $ 226,191 |
OTHER (EXPENSE) INCOME, NET (Ta
OTHER (EXPENSE) INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Components of Other (Expense) Income | The components of other (expense) income, net are as follows: For the year ended December 31, In thousands 2017 2016 2015 Foreign currency loss $ (6,618 ) $ (4,001 ) $ (4,659 ) Equity income 2,579 409 — Other miscellaneous income (expense) 3,073 629 (652 ) Total other (expense) income, net $ (966 ) $ (2,963 ) $ (5,311 ) |
SELECTED QUARTERLY FINANCIAL 53
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | First Second Third Fourth In thousands, except per share data Quarter Quarter Quarter Quarter (1) 2017 Net sales $ 916,034 $ 932,253 $ 957,931 $ 1,075,538 Gross profit 269,707 273,963 253,203 268,440 Income from operations 114,858 113,701 102,011 91,163 Net income attributable to Wabtec shareholders 73,889 72,025 67,399 48,948 Basic earnings from operations per common share $ 0.77 $ 0.75 $ 0.70 $ 0.51 Diluted earnings from operations per common share $ 0.77 $ 0.75 $ 0.70 $ 0.51 2016 Net sales $ 772,031 $ 723,601 $ 675,574 $ 759,982 Gross profit 255,180 237,389 212,481 219,189 Income from operations 142,181 133,284 120,096 62,800 Net income attributable to Wabtec shareholders 94,163 90,485 82,428 46,328 Basic earnings from operations per common share $ 1.03 $ 1.00 $ 0.92 $ 0.42 Diluted earnings from operations per common share $ 1.02 $ 1.00 $ 0.91 $ 0.42 |
BUSINESS - Additional Informati
BUSINESS - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017country | |
Product Information [Line Items] | |
Number of countries where product found (more than) | 100 |
Number of countries company operates | 31 |
Sales Revenue, Net | Geographic Concentration Risk | Non-US | |
Product Information [Line Items] | |
Revenues from customers outside the U.S. (as a percent) | 66.00% |
SUMMARY OF SIGNIFICANT ACCOUN55
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 05, 2014 | Jan. 12, 2012 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Allowance for doubtful accounts | $ 12,300,000 | $ 7,300,000 | |||
Product warranty expense | 50,400,000 | 28,900,000 | $ 35,400,000 | ||
Accrued product warranty | 153,063,000 | 138,992,000 | 92,064,000 | ||
Interest rate swap, accumulated other comprehensive loss | (4,015,000) | 2,957,000 | |||
Foreign exchange transaction losses recognized in other (expense) income, net | 6,618,000 | 4,001,000 | 4,659,000 | ||
Net income attributable to noncontrolling interest | 29,000 | 8,517,000 | 0 | ||
Unbilled accounts receivable | 366,168,000 | 274,912,000 | |||
Customer deposits | 369,716,000 | 256,591,000 | |||
Provisions for loss contracts | 94,000,000 | 60,500,000 | |||
Deferred pre-production costs | 20,200,000 | 29,400,000 | |||
Research and development costs | 95,166,000 | 71,375,000 | $ 71,213,000 | ||
Interest rate swap agreements | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Interest rate swap agreements, notional amount | 150,000,000 | $ 150,000,000 | $ 150,000,000 | ||
Interest rate swap agreement, current liability | $ 1,163,000 | $ 3,888,000 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Detail) $ in Thousands | Mar. 21, 2017USD ($) | Mar. 06, 2017USD ($) | Feb. 03, 2017USD ($) | Nov. 30, 2016USD ($)employeecountry | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 04, 2017USD ($) | Oct. 02, 2017USD ($) | Apr. 05, 2017USD ($) | Mar. 14, 2017USD ($) | Mar. 13, 2017USD ($) | Dec. 14, 2016USD ($) | Nov. 30, 2016€ / shares | Nov. 17, 2016USD ($) | Aug. 01, 2016USD ($) | May 05, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||||
Cash payment for acquisition | $ 982,445 | $ 904,695 | $ 135,231 | |||||||||||||||
Stock used for acquisition | 25,500 | 534,679 | 0 | |||||||||||||||
Cash acquired from acquisition | 35,408 | 186,903 | $ 5,681 | |||||||||||||||
Deposit in escrow | 0 | 744,748 | ||||||||||||||||
Acquisition of Faiveley Transport noncontrolling interest | 760,599 | |||||||||||||||||
Goodwill | 2,460,103 | 2,078,765 | ||||||||||||||||
Freight Segment | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | 718,958 | 550,902 | ||||||||||||||||
Transit Segment | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | 1,741,145 | 1,527,863 | ||||||||||||||||
Faiveley | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Annual sales of Faiveley | $ 1,200,000 | |||||||||||||||||
Number of employees (more than) | employee | 5,700 | |||||||||||||||||
Number of countries Faiveley operates in | country | 24 | |||||||||||||||||
Purchase price per share (in euros per share) | € / shares | € 100 | |||||||||||||||||
Percentage of share capital acquired (as a percent) | 51.00% | |||||||||||||||||
Percentage of voting interests in Faiveley (as a percent) | 22.00% | 27.00% | 49.00% | |||||||||||||||
Number of common shares issued for conversion of one acquiree common share | 1.1538 | |||||||||||||||||
Percentage of additional share capital outstanding (as a percent) | 21.00% | 27.00% | ||||||||||||||||
Cash payment for acquisition | $ 17,500 | $ 303,200 | $ 411,800 | |||||||||||||||
Stock used for acquisition | $ 300 | $ 25,200 | ||||||||||||||||
Percentage of share capital owned (as a percent) | 100.00% | 99.00% | 78.00% | |||||||||||||||
Total purchase price (as a percent) | 100.00% | 98.00% | 76.00% | 100.00% | ||||||||||||||
Business combination, consideration transferred | $ 1,507,000 | |||||||||||||||||
Deposit in escrow | $ 744,700 | |||||||||||||||||
Acquisition of Faiveley Transport noncontrolling interest | $ 8,900 | |||||||||||||||||
Adjustment for change in value of current liabilities | 65,300 | |||||||||||||||||
Adjustment for changes in receivables | 439,631 | |||||||||||||||||
Adjustment for changes in liabilities | 819,493 | |||||||||||||||||
Adjustment to other noncurrent assets | 30,000 | |||||||||||||||||
Goodwill adjustment | 74,100 | |||||||||||||||||
Accrued compensation assumed within other liabilities | 25,900 | |||||||||||||||||
Goodwill | 1,262,350 | |||||||||||||||||
Faiveley | Fair Value of Receivables | Restatement Adjustment | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Adjustment for changes in receivables | 2,800 | |||||||||||||||||
Faiveley | Fair Value of Current Liabilities | Restatement Adjustment | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Adjustment for changes in liabilities | 36,200 | |||||||||||||||||
Faiveley | Fair Value of Assets Acquired and Liabilities Assumed | Restatement Adjustment | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Adjustment for changes in receivables | 64,300 | |||||||||||||||||
Adjustment for changes in liabilities | 64,300 | |||||||||||||||||
Faiveley | Customer Relationships | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Adjustment for change in value of customer relationships | 21,800 | |||||||||||||||||
Faiveley | Freight Segment | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | 72,000 | |||||||||||||||||
Faiveley | Transit Segment | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 1,190,400 | |||||||||||||||||
Faiveley | Minimum | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of business acquisition consideration payable in cash (as a percent) | 25.00% | |||||||||||||||||
Faiveley | Maximum | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of business acquisition consideration payable in cash (as a percent) | 45.00% | |||||||||||||||||
Melett | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 22,501 | |||||||||||||||||
Purchase price | 73,956 | |||||||||||||||||
Goodwill expected to be deductible for taxes | 0 | |||||||||||||||||
Acquired intangible assets | $ 39,259 | |||||||||||||||||
TTC | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 16,309 | |||||||||||||||||
Purchase price | 32,511 | |||||||||||||||||
Goodwill expected to be deductible for taxes | 16,300 | |||||||||||||||||
Acquired intangible assets | $ 12,300 | |||||||||||||||||
ATP | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 29,034 | |||||||||||||||||
Purchase price | 65,254 | |||||||||||||||||
Goodwill expected to be deductible for taxes | $ 31,900 | |||||||||||||||||
Acquired intangible assets | $ 25,000 | |||||||||||||||||
Workhorse | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 22,273 | |||||||||||||||||
Purchase price | 43,827 | |||||||||||||||||
Goodwill expected to be deductible for taxes | $ 9,200 | |||||||||||||||||
Goodwill deductible for taxes (as a percent) | 38.00% | |||||||||||||||||
Acquired intangible assets | $ 21,500 | |||||||||||||||||
Precision Turbo | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 4,248 | |||||||||||||||||
Purchase price | 13,853 | |||||||||||||||||
Goodwill expected to be deductible for taxes | 4,200 | |||||||||||||||||
Acquired intangible assets | $ 5,200 | |||||||||||||||||
Unitrac | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 2,442 | |||||||||||||||||
Purchase price | 14,771 | |||||||||||||||||
Goodwill expected to be deductible for taxes | 2,400 | |||||||||||||||||
Acquired intangible assets | $ 1,230 | |||||||||||||||||
AM General | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 12,943 | |||||||||||||||||
Purchase price | 10,416 | |||||||||||||||||
Goodwill expected to be deductible for taxes | 0 | |||||||||||||||||
Acquired intangible assets | $ 12,097 | |||||||||||||||||
Gerken | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 17,470 | |||||||||||||||||
Purchase price | 62,847 | |||||||||||||||||
Goodwill expected to be deductible for taxes | 0 | |||||||||||||||||
Acquired intangible assets | $ 30,560 | |||||||||||||||||
Acquisitions other than Faiveley | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Deposit in escrow | 44,400 | |||||||||||||||||
Recent Acquisitions | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | 1,389,600 | |||||||||||||||||
Goodwill and other intangible assets | 2,117,800 | |||||||||||||||||
Acquired intangible assets | 728,200 | |||||||||||||||||
Recent Acquisitions | Trade Names | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired intangible assets | 380,900 | |||||||||||||||||
Recent Acquisitions | Intellectual Property | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired intangible assets | $ 5,000 | |||||||||||||||||
Average useful life, years | 20 years | |||||||||||||||||
Recent Acquisitions | Customer Relationships | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired intangible assets | $ 336,900 | |||||||||||||||||
Average useful life, years | 20 years |
ACQUISITIONS - Summary of Preli
ACQUISITIONS - Summary of Preliminary Estimated Fair Values of Faiveley Transport Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2016 |
Assets acquired | |||
Goodwill | $ 2,460,103 | $ 2,078,765 | |
Faiveley | |||
Assets acquired | |||
Cash and cash equivalents | $ 178,318 | ||
Accounts receivable | 439,631 | ||
Inventories | 205,649 | ||
Other current assets | 70,930 | ||
Property, plant & equipment | 148,746 | ||
Goodwill | 1,262,350 | ||
Other noncurrent assets | 184,564 | ||
Total assets acquired | 3,071,246 | ||
Liabilities assumed | |||
Current liabilities | 819,493 | ||
Debt | 409,899 | ||
Other noncurrent liabilities | 335,039 | ||
Total liabilities assumed | 1,564,431 | ||
Net assets acquired | 1,506,815 | ||
Faiveley | Trade Names | |||
Assets acquired | |||
Acquired intangible assets | 346,328 | ||
Faiveley | Customer Relationships | |||
Assets acquired | |||
Acquired intangible assets | 233,529 | ||
Faiveley | Patents | |||
Assets acquired | |||
Acquired intangible assets | $ 1,201 |
ACQUISITIONS - Summary of Fair
ACQUISITIONS - Summary of Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 04, 2017 | Oct. 02, 2017 | Apr. 05, 2017 | Mar. 13, 2017 | Dec. 31, 2016 | Dec. 14, 2016 | Nov. 17, 2016 | Aug. 01, 2016 | May 05, 2016 |
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 2,460,103 | $ 2,078,765 | ||||||||
Melett | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Current assets | $ 21,068 | |||||||||
Property, plant & equipment | 5,917 | |||||||||
Goodwill | 22,501 | |||||||||
Other intangible assets | 39,259 | |||||||||
Total assets acquired | 88,745 | |||||||||
Total liabilities assumed | (14,789) | |||||||||
Net assets acquired | $ 73,956 | |||||||||
TTC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Current assets | $ 3,746 | |||||||||
Property, plant & equipment | 5,909 | |||||||||
Goodwill | 16,309 | |||||||||
Other intangible assets | 12,300 | |||||||||
Total assets acquired | 38,264 | |||||||||
Total liabilities assumed | (5,753) | |||||||||
Net assets acquired | $ 32,511 | |||||||||
ATP | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Current assets | $ 11,666 | |||||||||
Property, plant & equipment | 5,354 | |||||||||
Goodwill | 29,034 | |||||||||
Other intangible assets | 25,000 | |||||||||
Total assets acquired | 71,054 | |||||||||
Total liabilities assumed | (5,800) | |||||||||
Net assets acquired | $ 65,254 | |||||||||
Workhorse | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Current assets | $ 9,137 | |||||||||
Property, plant & equipment | 0 | |||||||||
Goodwill | 22,273 | |||||||||
Other intangible assets | 21,500 | |||||||||
Total assets acquired | 52,910 | |||||||||
Total liabilities assumed | (9,083) | |||||||||
Net assets acquired | $ 43,827 | |||||||||
Precision Turbo | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Current assets | $ 4,145 | |||||||||
Property, plant & equipment | 1,317 | |||||||||
Goodwill | 4,248 | |||||||||
Other intangible assets | 5,200 | |||||||||
Total assets acquired | 14,910 | |||||||||
Total liabilities assumed | (1,057) | |||||||||
Net assets acquired | $ 13,853 | |||||||||
Unitrac | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Current assets | $ 11,476 | |||||||||
Property, plant & equipment | 1,768 | |||||||||
Goodwill | 2,442 | |||||||||
Other intangible assets | 1,230 | |||||||||
Total assets acquired | 16,916 | |||||||||
Total liabilities assumed | (2,145) | |||||||||
Net assets acquired | $ 14,771 | |||||||||
AM General | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Current assets | $ 6,611 | |||||||||
Property, plant & equipment | 4,140 | |||||||||
Goodwill | 12,943 | |||||||||
Other intangible assets | 12,097 | |||||||||
Other assets | 0 | |||||||||
Total assets acquired | 35,791 | |||||||||
Total liabilities assumed | (25,375) | |||||||||
Net assets acquired | $ 10,416 | |||||||||
Gerken | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Current assets | $ 32,706 | |||||||||
Property, plant & equipment | 7,667 | |||||||||
Goodwill | 17,470 | |||||||||
Other intangible assets | 30,560 | |||||||||
Other assets | 1,706 | |||||||||
Total assets acquired | 90,109 | |||||||||
Total liabilities assumed | (27,262) | |||||||||
Net assets acquired | $ 62,847 |
ACQUISITIONS - Pro Forma Financ
ACQUISITIONS - Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Combinations [Abstract] | |||||||||||
Net sales | $ 3,946,244 | $ 4,212,617 | |||||||||
Gross profit | 1,095,101 | 1,275,835 | |||||||||
Net income attributable to Wabtec shareholders | $ 271,783 | $ 349,852 | |||||||||
Diluted earnings per share | |||||||||||
As Reported (in dollars per share) | $ 0.51 | $ 0.70 | $ 0.75 | $ 0.77 | $ 0.42 | $ 0.91 | $ 1 | $ 1.02 | $ 2.72 | $ 3.34 | $ 4.10 |
Pro forma (in dollars per share) | $ 2.82 | $ 3.83 |
SUPPLEMENTAL CASH FLOW DISCLO60
SUPPLEMENTAL CASH FLOW DISCLOSURES - Schedule of Cash Flow Disclosures (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest paid during the year | $ 75,317 | $ 30,211 | $ 19,372 |
Income taxes paid during the year, net of amount refunded | 89,379 | 121,563 | 147,958 |
Fair value of assets acquired | 452,209 | 3,118,420 | 156,020 |
Liabilities assumed | 207,788 | 1,453,382 | 20,789 |
Non-controlling interest (acquired) assumed | (738,024) | 760,343 | 0 |
Stock and cash paid | 982,445 | 904,695 | 135,231 |
Less: Cash acquired | 35,408 | 186,903 | 5,681 |
Stock used for acquisition | 25,500 | 534,679 | 0 |
Net cash paid | $ 921,537 | $ 183,113 | $ 129,550 |
INVENTORIES - Components of Inv
INVENTORIES - Components of Inventory, Net of Reserves (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 378,481 | $ 331,465 |
Work-in-progress | 167,390 | 145,462 |
Finished goods | 196,763 | 181,583 |
Total inventories | $ 742,634 | $ 658,510 |
PROPERTY, PLANT & EQUIPMENT - M
PROPERTY, PLANT & EQUIPMENT - Major Classes of Depreciable Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | |||
Machinery and equipment | $ 728,257 | $ 645,354 | |
Buildings and improvements | 259,561 | 225,307 | |
Land and improvements | 38,228 | 41,569 | |
Property, plant and equipment | 1,026,046 | 912,230 | |
Accumulated depreciation | (452,074) | (393,854) | |
Property, plant and equipment, net | $ 573,972 | $ 518,376 | $ 353,193 |
PROPERTY, PLANT & EQUIPMENT - E
PROPERTY, PLANT & EQUIPMENT - Estimated Useful Lives of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Land improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives in years | 10 years |
Land improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives in years | 20 years |
Building and improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives in years | 20 years |
Building and improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives in years | 40 years |
Machinery and equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives in years | 3 years |
Machinery and equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives in years | 15 years |
PROPERTY, PLANT & EQUIPMENT - N
PROPERTY, PLANT & EQUIPMENT - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 66.7 | $ 47.1 | $ 43.1 |
INTANGIBLES - Change in the Car
INTANGIBLES - Change in the Carrying Amount of Goodwill by Segment (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance beginning of period | $ 2,078,765 |
Additions | 186,487 |
Foreign currency impact | 194,851 |
Balance end of period | 2,460,103 |
Freight Segment | |
Goodwill [Roll Forward] | |
Balance beginning of period | 550,902 |
Additions | 152,096 |
Foreign currency impact | 15,960 |
Balance end of period | 718,958 |
Transit Segment | |
Goodwill [Roll Forward] | |
Balance beginning of period | 1,527,863 |
Additions | 34,391 |
Foreign currency impact | 178,891 |
Balance end of period | $ 1,741,145 |
INTANGIBLES - Narrative (Detail
INTANGIBLES - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets Disclosure [Line Items] | |||
Trade names | $ 603,400 | $ 510,500 | |
Intangible assets, amortization expense | $ 36,516 | $ 22,698 | $ 21,663 |
Patents | |||
Intangible Assets Disclosure [Line Items] | |||
Intangible assets, weighted average useful life (years) | 10 years | ||
Customer Relationships | |||
Intangible Assets Disclosure [Line Items] | |||
Intangible assets, weighted average useful life (years) | 17 years | ||
Intellectual Property | |||
Intangible Assets Disclosure [Line Items] | |||
Intangible assets, weighted average useful life (years) | 15 years |
INTANGIBLES - Intangible Assets
INTANGIBLES - Intangible Assets Other Than Goodwill and Trademarks (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, net of accumulated amortization | $ 601,013 | $ 543,428 |
Patents And Other | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, net of accumulated amortization | 17,554 | 15,360 |
Intangible assets, accumulated amortization | 43,021 | 40,638 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, net of accumulated amortization | 583,459 | 528,068 |
Intangible assets, accumulated amortization | $ 126,824 | $ 87,334 |
INTANGIBLES - Estimated Amortiz
INTANGIBLES - Estimated Amortization Expense Five Succeeding Years (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 38,059 |
2,019 | 36,076 |
2,020 | 34,050 |
2,021 | 33,777 |
2,022 | $ 33,489 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 31, 2016 | Aug. 31, 2013 |
Debt Instrument [Line Items] | ||||
Capital Leases | $ 2,324 | $ 1,018 | ||
Total | 1,870,528 | 1,892,776 | ||
Less - current portion | 47,225 | 129,809 | ||
Long-term portion | 1,823,303 | 1,762,967 | ||
Other Debt Obligations | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 6,860 | 1,153 | ||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 853,124 | 796,150 | ||
Unamortized debt issuance cost | 2,451 | 3,850 | ||
Senior Notes Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 747,655 | 747,474 | ||
Stated interest rate (as a percent) | 3.45% | |||
Senior Notes Due 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 747,655 | 747,474 | ||
Stated interest rate (as a percent) | 3.45% | 3.45% | ||
Unamortized debt issuance cost | $ 2,345 | 2,526 | ||
4.375% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 248,567 | 248,310 | ||
Stated interest rate (as a percent) | 4.375% | |||
4.375% Senior Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 248,567 | 248,310 | ||
Stated interest rate (as a percent) | 4.375% | 4.375% | ||
Unamortized debt issuance cost | $ 1,433 | 1,690 | ||
Schuldschein Loan | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 11,998 | $ 98,671 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Detail) | Oct. 31, 2016USD ($) | Jun. 22, 2016USD ($) | Aug. 31, 2013USD ($) | Dec. 31, 2017USD ($)investor | Dec. 31, 2016USD ($) | Nov. 30, 2016USD ($) | Jun. 05, 2014USD ($) | Jan. 12, 2012USD ($) |
Debt Instrument [Line Items] | ||||||||
Weighted average interest rate (as a percent) | 2.92% | |||||||
Faiveley | ||||||||
Debt Instrument [Line Items] | ||||||||
Liabilities assumed | $ 1,564,431,000 | |||||||
Interest rate swap agreements | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate swap agreements, notional amount | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 | |||||
Interest rate on notional value (as a percent) | 2.56% | 1.415% | ||||||
Senior Notes Due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 3.45% | |||||||
Long-term debt | $ 747,655,000 | $ 747,474,000 | ||||||
4.375% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 4.375% | |||||||
Long-term debt | $ 248,567,000 | 248,310,000 | ||||||
Two Thousand Sixteen Refinancing Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Deferred financing cost | $ 3,300,000 | |||||||
Minimum interest expense coverage ratio | 3 | |||||||
Maximum debt to cash flow ratio | 3.25 | |||||||
Two Thousand Sixteen Refinancing Credit Agreement | Federal Funds Effective Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis points spread on variable rate | 0.50% | |||||||
Two Thousand Sixteen Refinancing Credit Agreement | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis points spread on variable rate | 1.00% | |||||||
Two Thousand Sixteen Refinancing Credit Agreement | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis points spread on variable rate | 0.00% | |||||||
Two Thousand Sixteen Refinancing Credit Agreement | Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis points spread on variable rate | 0.00% | |||||||
Two Thousand Sixteen Refinancing Credit Agreement | Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis points spread on variable rate | 0.75% | |||||||
Two Thousand Sixteen Refinancing Credit Agreement | Alternative Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis points spread on variable rate | 1.75% | |||||||
Two Thousand Sixteen Refinancing Credit Agreement | Alternative Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis points spread on variable rate | 0.75% | |||||||
Two Thousand Sixteen Refinancing Credit Agreement | Alternative Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis points spread on variable rate | 1.75% | |||||||
Two Thousand Sixteen Refinancing Credit Agreement | Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term line of credit | $ 35,400,000 | |||||||
Schuldschein Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 11,998,000 | 98,671,000 | ||||||
Schuldschein Loan | Faiveley | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 4.00% | |||||||
Liabilities assumed | $ 137,200,000 | |||||||
Number of investors | investor | 20 | |||||||
Repayments of debt | $ 125,300,000 | |||||||
Long-term debt | $ 12,000,000 | |||||||
Senior Notes | Senior Notes Due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 750,000,000 | |||||||
Debt issuance face value (as a percent) | 99.965% | |||||||
Stated interest rate (as a percent) | 3.45% | 3.45% | ||||||
Deferred financing cost | $ 2,700,000 | |||||||
Long-term debt | $ 747,655,000 | 747,474,000 | ||||||
Senior Notes | 4.375% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 250,000,000 | |||||||
Debt issuance face value (as a percent) | 99.879% | |||||||
Stated interest rate (as a percent) | 4.375% | 4.375% | ||||||
Deferred financing cost | $ 2,600,000 | |||||||
Long-term debt | $ 248,567,000 | 248,310,000 | ||||||
Line of Credit | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 853,124,000 | $ 796,150,000 | ||||||
Line of Credit | Two Thousand Sixteen Refinancing Credit Agreement | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, amount | $ 1,200,000,000 | |||||||
Credit facility loan term, years | 5 years | |||||||
Line of credit facility, amount currently available | $ 679,000,000 | |||||||
Line of Credit | Two Thousand Sixteen Refinancing Credit Agreement | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, amount | $ 400,000,000 | |||||||
Commitment fee (as a percent) | 0.10% |
LONG-TERM DEBT - Principal Repa
LONG-TERM DEBT - Principal Repayments of Debt and Capital Lease (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 47,225 | |
2,019 | 330,901 | |
2,020 | 559 | |
2,021 | 483,379 | |
2,022 | 208 | |
Future years | 1,008,256 | |
Total | $ 1,870,528 | $ 1,892,776 |
EMPLOYEE BENEFIT PLANS - Obliga
EMPLOYEE BENEFIT PLANS - Obligations and Funded Status (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts recognized in the statement of financial position consist of: | |||||
Noncurrent liabilities | $ (103,734) | $ (110,597) | |||
United States | Defined Benefit Pension Plans | |||||
Change in projected benefit obligation | |||||
Obligation at beginning of year | $ (45,512) | $ (46,120) | |||
Opening balance sheet adjustment | 0 | 0 | |||
Service cost | (344) | (337) | $ (381) | ||
Interest cost | (1,422) | (1,475) | (1,914) | ||
Employee contributions | 0 | 0 | |||
Plan curtailments and amendments | 0 | 0 | |||
Benefits paid | 3,079 | 3,893 | |||
Acquisition | 0 | 0 | |||
Actuarial gain (loss) | (14) | (1,473) | |||
Effect of currency rate changes | 0 | 0 | |||
Obligation at end of year | (44,213) | (45,512) | (46,120) | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 35,802 | 37,640 | |||
Opening balance sheet adjustment | 0 | 0 | |||
Actual return on plan assets | 4,223 | 2,055 | |||
Employer contributions | 486 | 0 | |||
Employee contributions | 0 | 0 | |||
Benefits paid | (3,079) | (3,893) | |||
Acquisition | 0 | 0 | |||
Effect of currency rate changes | 0 | 0 | |||
Fair value of plan assets at end of year | 37,432 | 35,802 | 37,640 | ||
Benefit obligations | (45,512) | (46,120) | (46,120) | (44,213) | (45,512) |
Funded status | (6,781) | (9,710) | |||
Amounts recognized in the statement of financial position consist of: | |||||
Noncurrent assets | 0 | 0 | |||
Current liabilities | 0 | 0 | |||
Noncurrent liabilities | (6,781) | (9,710) | |||
Net amount recognized | (6,781) | (9,710) | |||
Amounts recognized in accumulated other comprehensive income (loss) consist of: | |||||
Prior service cost | (6) | (8) | |||
Net actuarial (loss) gain | (20,418) | (23,884) | |||
Net amount recognized | (20,424) | (23,892) | |||
United States | Other Postretirement Benefits Plans | |||||
Change in projected benefit obligation | |||||
Obligation at beginning of year | (11,876) | (12,959) | |||
Service cost | (5) | (4) | (9) | ||
Interest cost | (350) | (389) | (1,233) | ||
Plan amendments | 0 | 6 | |||
Benefits paid | 970 | 720 | |||
Acquisition | 0 | (143) | |||
Actuarial gain (loss) | (84) | 893 | |||
Effect of currency rate changes | 0 | 0 | |||
Obligation at end of year | (11,345) | (11,876) | (12,959) | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 0 | 0 | |||
Employer contributions | 970 | 720 | |||
Benefits paid | (970) | (720) | |||
Fair value of plan assets at end of year | 0 | 0 | 0 | ||
Benefit obligations | (11,876) | (12,959) | (12,959) | (11,345) | (11,876) |
Funded status | (11,345) | (11,876) | |||
Amounts recognized in the statement of financial position consist of: | |||||
Current liabilities | (1,046) | (1,084) | |||
Noncurrent liabilities | (10,299) | (10,792) | |||
Net amount recognized | (11,345) | (11,876) | |||
Amounts recognized in accumulated other comprehensive income (loss) consist of: | |||||
Prior service cost | 19,616 | 21,134 | |||
Net actuarial (loss) gain | (18,882) | (20,023) | |||
Net amount recognized | 734 | 1,111 | |||
Foreign Plan | Defined Benefit Pension Plans | |||||
Change in projected benefit obligation | |||||
Obligation at beginning of year | (319,551) | (195,311) | |||
Opening balance sheet adjustment | (5,321) | 0 | |||
Service cost | (2,740) | (1,379) | (2,015) | ||
Interest cost | (7,310) | (5,774) | (7,091) | ||
Employee contributions | (880) | (195) | |||
Plan curtailments and amendments | 4,153 | 2,061 | |||
Benefits paid | 12,906 | 9,427 | |||
Acquisition | 0 | (114,242) | |||
Actuarial gain (loss) | (3,009) | (33,330) | |||
Effect of currency rate changes | (31,265) | 19,192 | |||
Obligation at end of year | (353,017) | (319,551) | (195,311) | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 241,283 | 168,069 | |||
Opening balance sheet adjustment | 2,058 | 0 | |||
Actual return on plan assets | 19,102 | 20,066 | |||
Employer contributions | 13,479 | 6,933 | |||
Employee contributions | 880 | 195 | |||
Benefits paid | (12,905) | (9,427) | |||
Acquisition | 0 | 70,519 | |||
Settlements | (4,523) | ||||
Effect of currency rate changes | 22,228 | (15,072) | |||
Fair value of plan assets at end of year | 281,602 | 241,283 | 168,069 | ||
Benefit obligations | (319,551) | (195,311) | (195,311) | (353,017) | (319,551) |
Funded status | (71,415) | (78,268) | |||
Amounts recognized in the statement of financial position consist of: | |||||
Noncurrent assets | 10,577 | 7,130 | |||
Current liabilities | (2,158) | (2,042) | |||
Noncurrent liabilities | (79,834) | (83,356) | |||
Net amount recognized | (71,415) | (78,268) | |||
Amounts recognized in accumulated other comprehensive income (loss) consist of: | |||||
Prior service cost | (32) | (56) | |||
Net actuarial (loss) gain | (54,043) | (56,411) | |||
Net amount recognized | (54,075) | (56,467) | |||
Foreign Plan | Other Postretirement Benefits Plans | |||||
Change in projected benefit obligation | |||||
Obligation at beginning of year | (3,425) | (3,290) | |||
Service cost | (28) | (29) | (38) | ||
Interest cost | (98) | (99) | (128) | ||
Plan amendments | 0 | 0 | |||
Benefits paid | 199 | 133 | |||
Acquisition | 0 | 0 | |||
Actuarial gain (loss) | (131) | (42) | |||
Effect of currency rate changes | (237) | (98) | |||
Obligation at end of year | (3,720) | (3,425) | (3,290) | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 0 | 0 | |||
Employer contributions | 199 | 133 | |||
Benefits paid | (199) | (133) | |||
Fair value of plan assets at end of year | 0 | 0 | 0 | ||
Benefit obligations | $ (3,425) | $ (3,290) | $ (3,290) | (3,720) | (3,425) |
Funded status | (3,720) | (3,425) | |||
Amounts recognized in the statement of financial position consist of: | |||||
Current liabilities | (208) | (185) | |||
Noncurrent liabilities | (3,512) | (3,160) | |||
Net amount recognized | (3,720) | (3,345) | |||
Amounts recognized in accumulated other comprehensive income (loss) consist of: | |||||
Prior service cost | 9 | 15 | |||
Net actuarial (loss) gain | 154 | 292 | |||
Net amount recognized | $ 163 | $ 307 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans And Other Postretirement Benefit Plans [Line Items] | ||
Number of shares held on behalf of participants (in shares) | 495,274 | 551,482 |
Market value of the shares held on behalf of participants | $ 40.3 | $ 45.8 |
United States | Defined Benefit Pension Plans | ||
Defined Benefit Plans And Other Postretirement Benefit Plans [Line Items] | ||
Aggregate accumulated benefit obligation | 43.3 | 44.5 |
Contribution to the plan | $ 0 | |
United States | Defined Benefit Pension Plans | Equity security funds | ||
Defined Benefit Plans And Other Postretirement Benefit Plans [Line Items] | ||
Target asset allocation (as a percent) | 55.00% | |
United States | Defined Benefit Pension Plans | Debt security funds and other | ||
Defined Benefit Plans And Other Postretirement Benefit Plans [Line Items] | ||
Target asset allocation (as a percent) | 45.00% | |
United States | Other Postretirement Benefits Plans | ||
Defined Benefit Plans And Other Postretirement Benefit Plans [Line Items] | ||
Assumed health care cost trend rate, initial rate (as a percent) | 6.30% | |
Assumed health care cost trend rate, ultimate rate (as a percent) | 4.50% | |
Effect of 1% point increase on service and interest cost components (less than) | $ 0.1 | |
Effect of 1% point increase on accumulated postretirement benefit obligation | 0.1 | |
Effect of 1% point decrease on service and interest cost components (less than) | 0.1 | |
Effect of 1% point decrease on accumulated postretirement benefit obligation | 0.1 | |
Foreign Plan | Defined Benefit Pension Plans | ||
Defined Benefit Plans And Other Postretirement Benefit Plans [Line Items] | ||
Aggregate accumulated benefit obligation | 344.3 | $ 312.2 |
Contribution to the plan | $ 7.3 | |
Foreign Plan | Defined Benefit Pension Plans | Equity security funds | ||
Defined Benefit Plans And Other Postretirement Benefit Plans [Line Items] | ||
Target asset allocation (as a percent) | 30.00% | |
Foreign Plan | Defined Benefit Pension Plans | Debt security funds and other | ||
Defined Benefit Plans And Other Postretirement Benefit Plans [Line Items] | ||
Target asset allocation (as a percent) | 40.00% | |
Foreign Plan | Defined Benefit Pension Plans | Other Investments | ||
Defined Benefit Plans And Other Postretirement Benefit Plans [Line Items] | ||
Target asset allocation (as a percent) | 30.00% | |
Foreign Plan | Other Postretirement Benefits Plans | ||
Defined Benefit Plans And Other Postretirement Benefit Plans [Line Items] | ||
Assumed health care cost trend rate, initial rate (as a percent) | 6.23% | |
Assumed health care cost trend rate, ultimate rate (as a percent) | 4.50% | |
Effect of 1% point increase on service and interest cost components (less than) | $ 0.1 | |
Effect of 1% point increase on accumulated postretirement benefit obligation | 0.3 | |
Effect of 1% point decrease on service and interest cost components (less than) | 0.1 | |
Effect of 1% point decrease on accumulated postretirement benefit obligation | $ 0.3 |
EMPLOYEE BENEFIT PLANS - U.S. a
EMPLOYEE BENEFIT PLANS - U.S. and International Pension Plans With Accumulated and Projected Benefit Obligations in Excess of Plan Assets (Detail) - Defined Benefit Pension Plans - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ (44,213) | $ (45,512) |
Accumulated benefit obligation | (43,340) | (44,530) |
Fair value of plan assets | 37,432 | 35,802 |
Projected benefit obligation | (44,213) | (45,512) |
Fair value of plan assets | 37,432 | 35,802 |
Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | (282,077) | (255,682) |
Accumulated benefit obligation | (274,557) | (249,729) |
Fair value of plan assets | 200,218 | 170,367 |
Projected benefit obligation | (283,106) | (256,530) |
Fair value of plan assets | $ 201,115 | $ 171,133 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
United States | Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 344 | $ 337 | $ 381 |
Interest cost | 1,422 | 1,475 | 1,914 |
Expected return on plan assets | (1,731) | (2,076) | (2,168) |
Amortization of initial net obligation and prior service cost | 3 | 3 | 3 |
Amortization of net loss | 989 | 914 | 1,062 |
Settlement and curtailment losses recognized | 0 | 0 | 0 |
Net periodic benefit cost | 1,027 | 653 | 1,192 |
United States | Other Postretirement Benefits Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 5 | 4 | 9 |
Interest cost | 350 | 389 | 1,233 |
Amortization of initial net obligation and prior service cost | (1,519) | (1,709) | (2,295) |
Amortization of net loss | 1,225 | 1,287 | 1,356 |
Net periodic benefit cost | 61 | (29) | 303 |
Foreign Plan | Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2,740 | 1,379 | 2,015 |
Interest cost | 7,310 | 5,774 | 7,091 |
Expected return on plan assets | (12,412) | (9,971) | (9,591) |
Amortization of initial net obligation and prior service cost | 27 | 61 | 212 |
Amortization of net loss | 2,846 | 1,818 | 2,379 |
Settlement and curtailment losses recognized | 768 | 218 | 0 |
Net periodic benefit cost | 1,279 | (721) | 2,106 |
Foreign Plan | Other Postretirement Benefits Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 28 | 29 | 38 |
Interest cost | 98 | 99 | 128 |
Amortization of initial net obligation and prior service cost | (7) | (7) | (7) |
Amortization of net loss | (23) | (29) | (30) |
Net periodic benefit cost | $ 96 | $ 92 | $ 129 |
EMPLOYEE BENEFIT PLANS - Other
EMPLOYEE BENEFIT PLANS - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
United States | Other Postretirement Benefits Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net gain (loss) arising during the year | $ (84) |
Effect of exchange rates | 0 |
Amortization or curtailment recognition of prior service cost | (1,519) |
Amortization or settlement recognition of net loss (gain) | 1,225 |
Total recognized in other comprehensive income (loss) | (378) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (317) |
United States | Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net gain (loss) arising during the year | 2,477 |
Effect of exchange rates | 0 |
Amortization, settlement, or curtailment recognition of net transition obligation | 0 |
Amortization or curtailment recognition of prior service cost | 3 |
Amortization or settlement recognition of net loss (gain) | 989 |
Total recognized in other comprehensive income (loss) | 3,469 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 2,442 |
Foreign Plan | Other Postretirement Benefits Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net gain (loss) arising during the year | (131) |
Effect of exchange rates | 16 |
Amortization or curtailment recognition of prior service cost | (7) |
Amortization or settlement recognition of net loss (gain) | (23) |
Total recognized in other comprehensive income (loss) | (145) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (53) |
Foreign Plan | Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net gain (loss) arising during the year | 3,683 |
Effect of exchange rates | (4,945) |
Amortization, settlement, or curtailment recognition of net transition obligation | 768 |
Amortization or curtailment recognition of prior service cost | 27 |
Amortization or settlement recognition of net loss (gain) | 2,846 |
Total recognized in other comprehensive income (loss) | 2,379 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 1,100 |
EMPLOYEE BENEFIT PLANS - Weight
EMPLOYEE BENEFIT PLANS - Weighted Average Assumptions Used to Develop Actuarial Present Value of Projected Benefit Obligation (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
United States | Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (as a percent) | 3.56% | 3.95% | 4.21% |
Expected return on plan assets (as a percent) | 4.95% | 5.70% | 5.70% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
United States | Other Postretirement Benefits Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (as a percent) | 3.43% | 3.76% | 3.95% |
Foreign Plan | Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (as a percent) | 2.40% | 2.51% | 3.56% |
Expected return on plan assets (as a percent) | 5.02% | 6.07% | 5.81% |
Rate of compensation increase (as a percent) | 2.54% | 2.54% | 3.10% |
Foreign Plan | Other Postretirement Benefits Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (as a percent) | 3.21% | 3.46% | 3.80% |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amounts Included in Other Comprehensive Loss That are Expected to be Recognized as Components of Periodic Benefit Costs (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
United States | Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost | $ 3 |
Net actuarial loss | 970 |
Total recognized in net periodic benefit cost and other comprehensive (loss) income | 973 |
United States | Other Postretirement Benefits Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost | (1,519) |
Net actuarial loss | 1,216 |
Total recognized in net periodic benefit cost and other comprehensive (loss) income | (303) |
Foreign Plan | Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost | 22 |
Net actuarial loss | 2,193 |
Total recognized in net periodic benefit cost and other comprehensive (loss) income | 2,215 |
Foreign Plan | Other Postretirement Benefits Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost | (7) |
Net actuarial loss | (8) |
Total recognized in net periodic benefit cost and other comprehensive (loss) income | $ (15) |
EMPLOYEE BENEFIT PLANS - Pensio
EMPLOYEE BENEFIT PLANS - Pension Plan Assets by Asset Category (Detail) - Defined Benefit Pension Plans - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 37,432 | $ 35,802 | $ 37,640 |
United States | Equity security funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18,122 | 17,446 | |
United States | Debt security funds and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18,304 | 17,038 | |
United States | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,006 | 1,318 | |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 281,602 | 241,283 | $ 168,069 |
Foreign Plan | Equity security funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 100,453 | 92,201 | |
Foreign Plan | Debt security funds and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 178,730 | 145,003 | |
Foreign Plan | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2,419 | $ 4,079 |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Pension Plan Assets Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
United States | Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
NAV | $ 0 | $ 0 |
Fair value of plan assets | 18,122 | 17,446 |
United States | Equity | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 18,122 | 17,446 |
United States | Equity | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
United States | Equity | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
United States | Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
NAV | 0 | 0 |
Fair value of plan assets | 18,304 | 17,038 |
United States | Debt Securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,273 | 4,766 |
United States | Debt Securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14,031 | 12,272 |
United States | Debt Securities | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
United States | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
NAV | 0 | 0 |
Fair value of plan assets | 1,006 | 1,318 |
United States | Cash and cash equivalents | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,006 | 1,318 |
United States | Cash and cash equivalents | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
United States | Cash and cash equivalents | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
NAV | 4,586 | 3,589 |
Fair value of plan assets | 319,033 | 277,085 |
Foreign Plan | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 64,555 | 65,989 |
Foreign Plan | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 236,769 | 194,511 |
Foreign Plan | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 13,123 | 12,996 |
Foreign Plan | Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
NAV | 4,586 | 3,589 |
Fair value of plan assets | 138,874 | 120,336 |
Foreign Plan | Equity | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 38,647 | 38,053 |
Foreign Plan | Equity | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 95,641 | 78,694 |
Foreign Plan | Equity | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Foreign Plan | Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
NAV | 0 | 0 |
Fair value of plan assets | 111,204 | 90,508 |
Foreign Plan | Debt Securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Foreign Plan | Debt Securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 111,204 | 90,508 |
Foreign Plan | Debt Securities | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Foreign Plan | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
NAV | 0 | 0 |
Fair value of plan assets | 2,507 | 4,406 |
Foreign Plan | Cash and cash equivalents | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,507 | 4,406 |
Foreign Plan | Cash and cash equivalents | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Foreign Plan | Cash and cash equivalents | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Foreign Plan | Insurance Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
NAV | 0 | 0 |
Fair value of plan assets | 29,016 | 26,033 |
Foreign Plan | Insurance Contracts | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Foreign Plan | Insurance Contracts | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 15,893 | 13,037 |
Foreign Plan | Insurance Contracts | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 13,123 | $ 12,996 |
EMPLOYEE BENEFIT PLANS - Sche81
EMPLOYEE BENEFIT PLANS - Schedule of Reconciliation of Level 3 Assets (Details) - Defined Benefit Pension Plans - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 12,996 | $ 0 |
Net purchases, issuances, and settlements | 778 | 56 |
Actual return on plan assets | 375 | (5) |
Business acquisition | 12,949 | |
Opening balance sheet adjustment | (1,308) | |
Other | 282 | (4) |
Fair value of plan assets at end of year | $ 13,123 | $ 12,996 |
EMPLOYEE BENEFIT PLANS - Benefi
EMPLOYEE BENEFIT PLANS - Benefit Payments Expected to be Paid to Plan Participants (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
United States | Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 3,250 |
2,019 | 3,301 |
2,020 | 3,325 |
2,021 | 3,160 |
2,022 | 3,125 |
2023 through 2027 | 14,276 |
United States | Other Postretirement Benefits Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 1,046 |
2,019 | 1,024 |
2,020 | 986 |
2,021 | 950 |
2,022 | 908 |
2023 through 2027 | 3,956 |
Foreign Plan | Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 12,401 |
2,019 | 12,403 |
2,020 | 13,156 |
2,021 | 13,799 |
2,022 | 14,538 |
2023 through 2027 | 77,817 |
Foreign Plan | Other Postretirement Benefits Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 208 |
2,019 | 220 |
2,020 | 225 |
2,021 | 245 |
2,022 | 251 |
2023 through 2027 | $ 1,352 |
EMPLOYEE BENEFIT PLANS - Costs
EMPLOYEE BENEFIT PLANS - Costs Recognized Under Defined Contribution Plans and Multiemployer Pension Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Multi-employer pension and health & welfare plans | $ 1,522 | $ 2,054 | $ 2,584 |
401(k) savings and other defined contribution plans | 23,209 | 23,062 | 21,399 |
Total | $ 24,731 | $ 25,116 | $ 23,983 |
EMPLOYEE BENEFIT PLANS - Contri
EMPLOYEE BENEFIT PLANS - Contributions in Multiemployer Pension Plans (Detail) - USD ($) | Oct. 21, 2015 | Jan. 01, 2013 | Jun. 30, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Contribution Plan Disclosure [Line Items] | ||||||
Contributions by the Company | $ 1,521,000 | $ 2,054,000 | $ 2,584,000 | |||
Contribution to the plan (as a percent) | 5.00% | |||||
Increasing in weekly pension fund contribution rates | $ 75 | |||||
Surcharge imposed (as a percent) | 5.00% | |||||
Defined Contribution Plan | ||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||
Surcharge imposed (as a percent) | 10.00% | |||||
Idaho Operating Engineers Employers Pension Trust Fund | ||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||
EIN | 916,075,538 | |||||
Plan Number | 1 | |||||
Pension Protection Act Zone Status | Green | Green | ||||
FIP / RP Status Pending / Implemented | No | |||||
Contributions by the Company | $ 1,020,000 | $ 1,306,000 | $ 1,820,000 | |||
Surcharge Imposed | No | |||||
Expiration Dates of Collective Bargaining Agreements | Jun. 30, 2018 | |||||
Automobile Mechanics Local Number Seven Hundred And One Union and Industry Pension Plan | ||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||
EIN | 366,042,061 | |||||
Plan Number | 1 | |||||
Pension Protection Act Zone Status | Yellow | Red | ||||
FIP / RP Status Pending / Implemented | Implemented | |||||
Contributions by the Company | $ 501,000 | $ 748,000 | $ 764,000 | |||
Surcharge Imposed | Yes | |||||
Expiration Dates of Collective Bargaining Agreements | Jun. 1, 2018 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income from Operations before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 140,325 | $ 276,218 | $ 461,394 |
Foreign | 211,738 | 136,619 | 123,974 |
Income from operations before income taxes | $ 352,063 | $ 412,837 | $ 585,368 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Net tax expense recorded | $ 4,300 | |||
Provisional expense for U.S. tax reform bill | 55,000 | |||
Net benefit for revaluation of deferred tax assets and liabilities | 50,700 | |||
Provisional benefit for net deferred taxes | 24,600 | |||
Transition tax expense | $ 51,800 | |||
France tax rate change (as a percent) | 6.50% | 6.50% | (0.00%) | |
U.S. tax rate change | 7.90% | (0.00%) | (0.00%) | |
U.S. tax reform provision | 15.60% | 0.00% | 0.00% | |
Transaction costs related to acquisitions | 0.00% | 1.50% | 0.00% | |
Valuation allowance for foreign carryforwards | $ 25,700 | |||
Net operating loss carryforwards | 65,700 | |||
Unrecognized tax benefits | 6,910 | $ 8,423 | $ 10,557 | $ 12,596 |
Unrecognized tax benefits if recognized that would affect effective tax rate | 4,400 | 4,200 | ||
Accrued interest | 700 | 800 | ||
Accrued penalties | 100 | $ 300 | ||
Unrecognized tax benefits subject to change within the next 12 months | $ 5,200 |
INCOME TAXES - Consolidated Pro
INCOME TAXES - Consolidated Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current taxes | |||
Federal | $ 86,157 | $ 72,317 | $ 141,245 |
State | 3,644 | 9,953 | 16,072 |
Foreign | 67,395 | 27,391 | 24,442 |
Current taxes | 157,196 | 109,661 | 181,759 |
Deferred taxes | |||
Federal | (22,863) | 11,013 | 9,606 |
State | (1,024) | 1,953 | 770 |
Foreign | (43,536) | (23,194) | (5,395) |
Deferred taxes | (67,423) | (10,228) | 4,981 |
Total provision | $ 89,773 | $ 99,433 | $ 186,740 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes | 0.40% | 2.10% | 2.00% |
Tax reserves | 0.00% | (0.20%) | (0.40%) |
Foreign | (8.30%) | (4.30%) | (2.10%) |
Research and development credit | (0.80%) | (1.00%) | (0.40%) |
Manufacturing deduction | (1.10%) | (1.80%) | (2.30%) |
France tax rate change | (6.50%) | (6.50%) | 0.00% |
U.S. tax rate change | (7.90%) | 0.00% | 0.00% |
U.S. tax reform provision | 15.60% | 0.00% | 0.00% |
Transaction costs related to acquisitions | 0.00% | 1.50% | 0.00% |
Other, net | (0.90%) | (0.70%) | 0.10% |
Effective rate | 25.50% | 24.10% | 31.90% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Accrued expenses and reserves | $ 10,961 | $ 26,117 |
Warranty reserve | 20,211 | 24,131 |
Deferred compensation/employee benefits | 18,353 | 25,755 |
Pension and postretirement obligations | 21,637 | 25,595 |
Inventory | 19,620 | 22,579 |
Net operating loss carry forwards | 65,671 | 59,416 |
Tax credit carry forwards | 1,921 | 621 |
Other | 13,053 | 2,317 |
Gross deferred income tax assets | 171,427 | 186,531 |
Valuation allowance | 25,683 | 21,418 |
Total deferred income tax assets | 145,744 | 165,113 |
Deferred income tax liabilities: | ||
Property, plant & equipment | 37,015 | 47,321 |
Intangibles | 288,141 | 359,312 |
Total deferred income tax liabilities | 325,156 | 406,633 |
Total deferred income tax liabilities | $ (179,412) | $ (241,520) |
INCOME TAXES - Liability for In
INCOME TAXES - Liability for Income Taxes Associated with Uncertain Tax Positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross liability for unrecognized tax benefits at beginning of year | $ 8,423 | $ 10,557 | $ 12,596 |
Gross increases - unrecognized tax benefits in prior periods | 2,466 | 6 | 0 |
Gross increases - current period unrecognized tax benefits | 0 | 0 | 1,682 |
Gross decreases - unrecognized tax benefits in prior periods | 0 | 0 | 0 |
Gross decreases - audit settlement during year | (3,979) | 0 | (3,027) |
Gross decreases - expiration of audit statute of limitations | 0 | (2,140) | (694) |
Gross liability for unrecognized tax benefits at end of year | $ 6,910 | $ 8,423 | $ 10,557 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator | |||||||||||
Net income attributable to Wabtec shareholders | $ 48,948 | $ 67,399 | $ 72,025 | $ 73,889 | $ 46,328 | $ 82,428 | $ 90,485 | $ 94,163 | $ 262,261 | $ 304,887 | $ 398,628 |
Less: dividends declared - common shares and non-vested restricted stock | (42,218) | (32,430) | (26,963) | ||||||||
Undistributed earnings | $ 220,043 | $ 272,457 | $ 371,665 | ||||||||
Percentage allocated to common shareholders (as a percent) | 99.70% | 99.70% | 99.70% | ||||||||
Undistributed earnings allocated to common shareholders | $ 219,383 | $ 271,640 | $ 370,550 | ||||||||
Add: dividends declared - common shares | 42,092 | 32,333 | 26,875 | ||||||||
Numerator for basic and diluted earnings per common share | $ 261,475 | $ 303,973 | $ 397,425 | ||||||||
Denominator | |||||||||||
Denominator for basic earnings per common share - weighted average shares (in shares) | 95,453 | 90,359 | 96,074 | ||||||||
Assumed conversion of dilutive stock-based compensation plans (in shares) | 672 | 782 | 932 | ||||||||
Denominator for diluted earnings per common shares - adjusted weighted average shares and assumed conversion (in shares) | 96,125 | 91,141 | 97,006 | ||||||||
Net income per common share attributable to Wabtec shareholders | |||||||||||
Net income attributable to Wabtec shareholders, basic (in dollars per share) | $ 0.51 | $ 0.70 | $ 0.75 | $ 0.77 | $ 0.42 | $ 0.92 | $ 1 | $ 1.03 | $ 2.74 | $ 3.37 | $ 4.14 |
Net income attributable to Wabtec shareholders (in dollars per share) | $ 0.51 | $ 0.70 | $ 0.75 | $ 0.77 | $ 0.42 | $ 0.91 | $ 1 | $ 1.02 | $ 2.72 | $ 3.34 | $ 4.10 |
Basic weighted average common shares outstanding and non rested restricted stock expected to vest (in shares) | 95,740 | 90,627 | 96,388 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Shares not included in computation of diluted earnings per share | 24 | 20 | 13 |
STOCK-BASED COMPENSATION PLAN93
STOCK-BASED COMPENSATION PLANS - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 21.3 | $ 20.8 | $ 26 | ||
Tax benefits related to stock-based compensation plans | 8.9 | $ 14.9 | $ 15.3 | ||
Unamortized compensation expense expected to be vested | $ 24.6 | ||||
Recognized weighted average period, years | 1 year 2 months | ||||
Risk-free interest rate, year | 7 years | ||||
Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 1.7 | ||||
Non-Vested Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | 7 | ||||
Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 4.6 | ||||
Incentive Stock Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Stock-based compensation expense | $ 6.5 | ||||
Percentage of incentive stock awards expected to be vested and awarded of stocks granted | 84.00% | ||||
Incentive Stock Awards | Scenario Forecast | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of incentive stock awards expected to be vested and awarded of stocks granted | 91.00% | 77.00% | |||
Incentive Stock Awards | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of incentive stock awards expected to be vested and awarded of stocks granted | 0.00% | ||||
Incentive Stock Awards | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of incentive stock awards expected to be vested and awarded of stocks granted | 200.00% | ||||
Directors Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares issued | 881,192 | ||||
Stock-based compensation expense | $ 1.5 | ||||
Directors Plan | Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Plan term, years | 10 years | ||||
Shares authorized for grants | 1,000,000 | ||||
Award vesting period | 3 years | ||||
Directors Plan | Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Shares issued | 16,500 | 16,972 | 11,256 | ||
Directors Plan | Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Plan 2,011 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares available for grant | 3,192,453 | ||||
Plan 2011 | Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Plan term, years | 10 years | ||||
Award vesting period | 4 years | ||||
Plan 2011 | Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Plan 2000 | Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Plan term, years | 10 years | ||||
Award vesting period | 4 years | ||||
Plan 2000 | Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period | 4 years |
STOCK-BASED COMPENSATION PLAN94
STOCK-BASED COMPENSATION PLANS - Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options | ||||
Outstanding, beginning of period (in shares) | 1,098,823 | 1,097,323 | 1,147,558 | |
Granted (in shares) | 65,522 | 94,115 | 84,675 | |
Exercised (in shares) | (166,838) | (83,790) | (124,156) | |
Canceled (in shares) | (13,995) | (8,825) | (10,754) | |
Outstanding, end of period (in shares) | 983,512 | 1,098,823 | 1,097,323 | 1,147,558 |
Exercisable at December 31, 2017 | 802,609 | |||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period (in dollars per share) | $ 35.39 | $ 32.70 | $ 28.33 | |
Granted (in dollars per share) | 86.91 | 61.39 | 87.35 | |
Exercised (in dollars per share) | 21.37 | 25.58 | 26.70 | |
Canceled (in dollars per share) | 76.89 | 71.47 | 65.22 | |
Outstanding, end of period (in dollars per share) | 40.62 | $ 35.39 | $ 32.70 | $ 28.33 |
Exercisable at December 31, 2017 (in dollars per share) | $ 32.52 | |||
Weighted Average Remaining Contractual Life | ||||
Weighted- Average Remaining Contractual Life, outstanding | 4 years | 4 years 3 months | 4 years 9 months | 5 years 6 months |
Weighted Average Remaining Contractual Life, Exercisable shares at December 31, 2017 | 3 years 3 months | |||
Aggregate Intrinsic Value | ||||
Outstanding, beginning of period | $ 52,332 | $ 42,154 | $ 67,205 | |
Granted | 0 | 2,035 | 1,375 | |
Exercised | (10,020) | (4,813) | (5,516) | |
Canceled | (64) | (102) | (64) | |
Outstanding, end of period | 40,137 | $ 52,332 | $ 42,154 | $ 67,205 |
Exercisable at December 31, 2017 | $ 36,848 |
STOCK-BASED COMPENSATION PLAN95
STOCK-BASED COMPENSATION PLANS - Stock Options Outstanding (Detail) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Number of options outstanding (in shares) | shares | 983,512 |
Weighted average exercise price of options outstanding (in dollars per share) | $ / shares | $ 40.62 |
Number of options currently exercisable (in shares) | shares | 802,609 |
Weighted average exercise price of options currently exercisable (in dollars per share) | $ / shares | $ 32.52 |
$15.00 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Number of options outstanding (in shares) | shares | 180,000 |
Weighted average exercise price of options outstanding (in dollars per share) | $ / shares | $ 14.50 |
Weighted average remaining contractual life (in years) | 1 year 1 month |
Number of options currently exercisable (in shares) | shares | 180,000 |
Weighted average exercise price of options currently exercisable (in dollars per share) | $ / shares | $ 14.50 |
15.00 - 23.00 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Number of options outstanding (in shares) | shares | 193,701 |
Weighted average exercise price of options outstanding (in dollars per share) | $ / shares | $ 18.77 |
Weighted average remaining contractual life (in years) | 1 year 3 months |
Number of options currently exercisable (in shares) | shares | 193,701 |
Weighted average exercise price of options currently exercisable (in dollars per share) | $ / shares | $ 18.77 |
23.00 - 30.00 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Number of options outstanding (in shares) | shares | 136,924 |
Weighted average exercise price of options outstanding (in dollars per share) | $ / shares | $ 28.75 |
Weighted average remaining contractual life (in years) | 2 years 9 months |
Number of options currently exercisable (in shares) | shares | 136,924 |
Weighted average exercise price of options currently exercisable (in dollars per share) | $ / shares | $ 28.75 |
30.00 - 38.00 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Number of options outstanding (in shares) | shares | 94,496 |
Weighted average exercise price of options outstanding (in dollars per share) | $ / shares | $ 35.24 |
Weighted average remaining contractual life (in years) | 4 years 1 month |
Number of options currently exercisable (in shares) | shares | 94,496 |
Weighted average exercise price of options currently exercisable (in dollars per share) | $ / shares | $ 35.24 |
Over 38 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Number of options outstanding (in shares) | shares | 378,391 |
Weighted average exercise price of options outstanding (in dollars per share) | $ / shares | $ 69.86 |
Weighted average remaining contractual life (in years) | 7 years |
Number of options currently exercisable (in shares) | shares | 197,488 |
Weighted average exercise price of options currently exercisable (in dollars per share) | $ / shares | $ 63.72 |
STOCK-BASED COMPENSATION PLAN96
STOCK-BASED COMPENSATION PLANS - Fair Value of Each Option Grant Weighted Average Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Dividend yield (as a percent) | 0.23% | 0.26% | 0.14% |
Risk-free interest rate (as a percent) | 2.20% | 1.50% | 1.80% |
Stock price volatility (as a percent) | 23.40% | 26.90% | 27.30% |
Expected life (years) | 5 years | 5 years | 5 years |
Weighted average fair value of options granted during the year (in dollars per share) | $ 20.69 | $ 14.96 | $ 24.41 |
STOCK-BASED COMPENSATION PLAN97
STOCK-BASED COMPENSATION PLANS - Restricted Stock Activity and Incentive Stock Awards Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | $ 72.18 | $ 65.89 | $ 47.97 |
Granted (in dollars per share) | 86.66 | 66.03 | 87.90 |
Vested (in dollars per share) | 70.34 | 51.80 | 37.76 |
Adjustment for incentive stock awards expected to vest (in dollars per share) | 73.69 | 74.42 | 57.57 |
Canceled (in dollars per share) | 76.61 | 71.84 | 67.05 |
Outstanding, end of period (in dollars per share) | $ 78.76 | $ 72.18 | $ 65.89 |
Restricted Stock and Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 396,295 | 356,885 | 438,543 |
Granted (in shares) | 153,516 | 212,600 | 113,945 |
Vested (in shares) | (137,088) | (159,975) | (182,776) |
Adjustment for incentive stock awards expected to vest (in shares) | 0 | 0 | 0 |
Canceled (in shares) | (13,723) | (13,215) | (12,827) |
Outstanding, end of period (in shares) | 399,000 | 396,295 | 356,885 |
Incentive Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 424,750 | 541,638 | 791,608 |
Granted (in shares) | 157,025 | 167,850 | 126,050 |
Vested (in shares) | (153,271) | (236,591) | (433,932) |
Adjustment for incentive stock awards expected to vest (in shares) | (87,592) | (38,164) | 65,666 |
Canceled (in shares) | (13,579) | (9,983) | (7,754) |
Outstanding, end of period (in shares) | 327,333 | 424,750 | 541,638 |
OTHER COMPREHENSIVE LOSS - Comp
OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Foreign currency translation gain (loss) | $ 5,063 | $ (321,033) |
Unrealized gain (loss) on interest rate swap contracts, net of tax of $1,338 and $1,540 | 4,015 | (2,957) |
Unrealized loss on pension and post-retirement benefit plans, net of tax of $19,532 and $20,832 | (54,070) | (55,615) |
Total accumulated other comprehensive loss | (44,992) | (379,605) |
Unrealized loss on interest rate swap contracts, tax | 1,338 | 1,540 |
Pension benefit plans and post retirement benefit plans, tax | $ 19,532 | $ 20,832 |
OTHER COMPREHENSIVE LOSS - Chan
OTHER COMPREHENSIVE LOSS - Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | $ 2,976,825 | $ 1,701,339 |
Other comprehensive income before reclassifications | 331,791 | (105,844) |
Amounts reclassified from accumulated other comprehensive income | 2,822 | 2,958 |
Net current period other comprehensive income | 334,613 | (102,886) |
Balance end of period | 2,828,532 | 2,976,825 |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (321,033) | (227,349) |
Other comprehensive income before reclassifications | 326,096 | (93,684) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Net current period other comprehensive income | 326,096 | (93,684) |
Balance end of period | 5,063 | (321,033) |
Derivative Contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (2,957) | (2,987) |
Other comprehensive income before reclassifications | 6,712 | (1,286) |
Amounts reclassified from accumulated other comprehensive income | 260 | 1,316 |
Net current period other comprehensive income | 6,972 | 30 |
Balance end of period | 4,015 | (2,957) |
Pension and post retirement benefits plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (55,615) | (46,383) |
Other comprehensive income before reclassifications | (1,017) | (10,874) |
Amounts reclassified from accumulated other comprehensive income | 2,562 | 1,642 |
Net current period other comprehensive income | 1,545 | (9,232) |
Balance end of period | (54,070) | (55,615) |
AOCI Including Portion Attributable to Noncontrolling Interest | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (379,605) | (276,719) |
Balance end of period | $ (44,992) | $ (379,605) |
OTHER COMPREHENSIVE LOSS - Recl
OTHER COMPREHENSIVE LOSS - Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Cost of sales | $ 2,816,443 | $ 2,006,949 | $ 2,260,182 | ||||||||
Income from Operations | 352,063 | 412,837 | 585,368 | ||||||||
Interest expense, net | (68,704) | (42,561) | (16,888) | ||||||||
Income tax expense | (89,773) | (99,433) | (186,740) | ||||||||
Net income attributable to Wabtec shareholders | $ 48,948 | $ 67,399 | $ 72,025 | $ 73,889 | $ 46,328 | $ 82,428 | $ 90,485 | $ 94,163 | 262,261 | 304,887 | $ 398,628 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of initial net obligation and prior service cost | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Cost of sales | (1,496) | (1,652) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of net loss (gain) | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Cost of sales | 5,037 | 3,989 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Pension And Post Retirement Benefit Plans | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Income from Operations | 3,541 | 2,337 | |||||||||
Income tax expense | (979) | (695) | |||||||||
Net income attributable to Wabtec shareholders | 2,562 | 1,642 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Contracts | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Interest expense, net | 400 | 1,873 | |||||||||
Income tax expense | (140) | (557) | |||||||||
Net income attributable to Wabtec shareholders | $ 260 | $ 1,316 |
OPERATING LEASES - Narrative (D
OPERATING LEASES - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leased Assets [Line Items] | |||
Net rental expense | $ 34.6 | $ 27.2 | $ 20.2 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Operating leases term, in years | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating leases term, in years | 15 years |
OPERATING LEASES - Future Minim
OPERATING LEASES - Future Minimum Rental Payments Under Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Future Minimum Payments Under Non-Cancelable Operating Leases With Initial Terms Of One-Year Or More [Line Items] | |
2,018 | $ 31,647 |
2,019 | 27,782 |
2,020 | 25,242 |
2,021 | 20,073 |
2,022 | 16,621 |
2023 and after | 66,041 |
Real Estate | |
Future Minimum Payments Under Non-Cancelable Operating Leases With Initial Terms Of One-Year Or More [Line Items] | |
2,018 | 28,957 |
2,019 | 25,857 |
2,020 | 24,266 |
2,021 | 19,561 |
2,022 | 16,350 |
2023 and after | 66,017 |
Equipment | |
Future Minimum Payments Under Non-Cancelable Operating Leases With Initial Terms Of One-Year Or More [Line Items] | |
2,018 | 2,690 |
2,019 | 1,925 |
2,020 | 976 |
2,021 | 512 |
2,022 | 271 |
2023 and after | $ 24 |
WARRANTIES - Changes in Product
WARRANTIES - Changes in Product Warranty Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of year | $ 138,992 | $ 92,064 |
Warranty expense | 50,385 | 28,947 |
Acquisitions | 806 | 59,685 |
Warranty claim payments | (48,548) | (38,772) |
Foreign currency impact | 11,428 | (2,932) |
Balance at end of year | $ 153,063 | $ 138,992 |
PREFERRED STOCK - Narrative (De
PREFERRED STOCK - Narrative (Detail) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Preferred Stock Additional Information [Abstract] | ||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
DERIVATIVE FINANCIAL INSTRUM105
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Accumulated other comprehensive income loss | $ (4,015) | $ 2,957 |
Interest rate swap agreements | ||
Derivative [Line Items] | ||
Interest rate swap agreement, current liability | $ 1,163 | $ 3,888 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative term (in years) | 1 year | |
Net gain | $ 2,100 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative term (in years) | 2 years | |
Amount reclassified into income | $ 400 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest rate swap agreements | ||
Derivative [Line Items] | ||
Interest rate swap agreement, current liability | 1,200 | |
Accumulated other comprehensive income loss | $ 700 |
DERIVATIVE FINANCIAL INSTRUM106
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING - Summary of Notional Amounts and Fair Value (Details) $ in Millions | Dec. 31, 2017USD ($) |
Derivative [Line Items] | |
Gross notional amount | $ 1,184.8 |
Derivative, Fair Value, Net | 5.6 |
Other current assets | |
Derivative [Line Items] | |
Derivative asset fair value | 5.6 |
Other current liabilities | |
Derivative [Line Items] | |
Liabilities at fair value | 0 |
Designated as Hedging Instrument | |
Derivative [Line Items] | |
Gross notional amount | 805.1 |
Derivative, Fair Value, Net | 3.5 |
Designated as Hedging Instrument | Other current assets | |
Derivative [Line Items] | |
Derivative asset fair value | 3.5 |
Designated as Hedging Instrument | Other current liabilities | |
Derivative [Line Items] | |
Liabilities at fair value | 0 |
Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Gross notional amount | 379.7 |
Derivative, Fair Value, Net | 2.1 |
Not Designated as Hedging Instrument | Other current assets | |
Derivative [Line Items] | |
Derivative asset fair value | 2.1 |
Not Designated as Hedging Instrument | Other current liabilities | |
Derivative [Line Items] | |
Liabilities at fair value | $ 0 |
FAIR VALUE MEASUREMENT AND F107
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS - Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Interest rate swap agreements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative, carrying value | $ 1,163 | $ 3,888 |
Liabilities at fair value | 1,163 | 3,888 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative, carrying value | 1,163 | 3,888 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities at fair value | 1,163 | 3,888 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Interest rate swap agreements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative, carrying value | 1,163 | 3,888 |
Fair Value, Measurements, Recurring | Interest rate swap agreements | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Interest rate swap agreements | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities at fair value | 1,163 | 3,888 |
Fair Value, Measurements, Recurring | Interest rate swap agreements | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT AND F108
FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated Fair Values and Related Carrying Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
4.375% Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Note, carrying value | $ 248,567 | $ 248,310 |
Note, fair value | $ 262,033 | 260,265 |
Stated interest rate (as a percent) | 4.375% | |
3.45% Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Note, carrying value | $ 747,655 | 747,474 |
Note, fair value | $ 741,113 | 719,273 |
Stated interest rate (as a percent) | 3.45% | |
Interest rate swap agreements | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative, carrying value | $ 1,163 | 3,888 |
Derivative, fair value | $ 1,163 | $ 3,888 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) | Sep. 08, 2017USD ($) | Nov. 02, 2016patent | Apr. 21, 2016patent | Dec. 31, 2017USD ($)claim |
Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Pending litigation cases | 0 | |||
Siemens Industry, Inc. | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Patents allegedly infringed | patent | 6 | 7 | ||
Denver Transit Delivery of Train Management System | Threatened Litigation | Subsidiaries | ||||
Loss Contingencies [Line Items] | ||||
Alleged damages | $ | $ 0 | |||
Denver Transit Installation of Constant Wireless Crossings | Threatened Litigation | Subsidiaries | ||||
Loss Contingencies [Line Items] | ||||
Alleged damages | $ | $ 36,800,000 | |||
Denver Transit | Threatened Litigation | Subsidiaries | ||||
Loss Contingencies [Line Items] | ||||
Claims filed | 0 | |||
Asbestos Related Cases | Settled Litigation | ||||
Loss Contingencies [Line Items] | ||||
Arbitration decisions | 2 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segment | segment | 2 | ||
United States | |||
Segment Reporting Information [Line Items] | |||
Export sales | $ | $ 448 | $ 470.5 | $ 508.4 |
SEGMENT INFROMATION - Segment F
SEGMENT INFROMATION - Segment Financial Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Total sales | $ 1,075,538 | $ 957,931 | $ 932,253 | $ 916,034 | $ 759,982 | $ 675,574 | $ 723,601 | $ 772,031 | $ 3,881,756 | $ 2,931,188 | $ 3,307,998 |
Income (loss) from operations | 91,163 | $ 102,011 | $ 113,701 | $ 114,858 | 62,800 | $ 120,096 | $ 133,284 | $ 142,181 | 421,733 | 458,361 | 607,567 |
Interest expense and other, net | (69,670) | (45,524) | (22,199) | ||||||||
Income (loss) from operations before income taxes | 352,063 | 412,837 | 585,368 | ||||||||
Depreciation and amortization | 103,248 | 69,795 | 64,734 | ||||||||
Capital expenditures | 89,466 | 50,216 | 49,428 | ||||||||
Segment assets | 6,579,980 | 6,581,018 | 6,579,980 | 6,581,018 | 3,229,513 | ||||||
Freight Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | 1,396,588 | 1,543,098 | 2,054,715 | ||||||||
Transit Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | 2,485,168 | 1,388,090 | 1,235,283 | ||||||||
Operating Segments | Freight Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | 1,434,218 | 1,582,617 | 2,090,087 | ||||||||
Income (loss) from operations | 264,603 | 344,455 | 482,640 | ||||||||
Interest expense and other, net | 0 | 0 | 0 | ||||||||
Income (loss) from operations before income taxes | 264,603 | 344,455 | 482,640 | ||||||||
Depreciation and amortization | 43,721 | 36,519 | 36,834 | ||||||||
Capital expenditures | 33,921 | 22,726 | 24,715 | ||||||||
Segment assets | 3,504,289 | 2,949,668 | 3,504,289 | 2,949,668 | 2,708,724 | ||||||
Operating Segments | Transit Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | 2,506,716 | 1,397,483 | 1,264,178 | ||||||||
Income (loss) from operations | 188,546 | 171,446 | 150,988 | ||||||||
Interest expense and other, net | 0 | 0 | 0 | ||||||||
Income (loss) from operations before income taxes | 188,546 | 171,446 | 150,988 | ||||||||
Depreciation and amortization | 57,441 | 31,545 | 26,196 | ||||||||
Capital expenditures | 50,762 | 20,987 | 22,996 | ||||||||
Segment assets | 7,562,122 | 6,720,302 | 7,562,122 | 6,720,302 | 2,202,614 | ||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | (59,178) | (48,912) | (46,267) | ||||||||
Intersegment Eliminations | Freight Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | 37,630 | 39,519 | 35,372 | ||||||||
Intersegment Eliminations | Transit Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | 21,548 | 9,393 | 10,895 | ||||||||
Corporate Activities and Elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total sales | (59,178) | (48,912) | (46,267) | ||||||||
Income (loss) from operations | (31,416) | (57,540) | (26,061) | ||||||||
Interest expense and other, net | (69,670) | (45,524) | (22,199) | ||||||||
Income (loss) from operations before income taxes | (101,086) | (103,064) | (48,260) | ||||||||
Depreciation and amortization | 2,086 | 1,731 | 1,704 | ||||||||
Capital expenditures | 4,783 | 6,503 | 1,717 | ||||||||
Segment assets | $ (4,486,431) | $ (3,088,952) | $ (4,486,431) | $ (3,088,952) | $ (1,681,825) |
SEGMENT INFORMATION - Geographi
SEGMENT INFORMATION - Geographic Area Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | $ 1,075,538 | $ 957,931 | $ 932,253 | $ 916,034 | $ 759,982 | $ 675,574 | $ 723,601 | $ 772,031 | $ 3,881,756 | $ 2,931,188 | $ 3,307,998 |
Long-Lived Assets | 573,972 | 518,376 | 573,972 | 518,376 | 353,193 | ||||||
United States | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 1,323,781 | 1,362,255 | 1,754,924 | ||||||||
Long-Lived Assets | 211,608 | 205,895 | 211,608 | 205,895 | 171,362 | ||||||
United Kingdom | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 356,493 | 322,563 | 368,505 | ||||||||
Long-Lived Assets | 57,668 | 54,215 | 57,668 | 54,215 | 63,694 | ||||||
Canada | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 279,013 | 206,258 | 204,674 | ||||||||
Long-Lived Assets | 5,822 | 5,156 | 5,822 | 5,156 | 4,876 | ||||||
France | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 237,454 | 66,287 | 45,565 | ||||||||
Long-Lived Assets | 57,849 | 33,636 | 57,849 | 33,636 | 7,194 | ||||||
Germany | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 208,817 | 98,364 | 92,422 | ||||||||
Long-Lived Assets | 71,709 | 57,902 | 71,709 | 57,902 | 31,642 | ||||||
China | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 178,137 | 106,357 | 100,586 | ||||||||
Long-Lived Assets | 36,388 | 42,672 | 36,388 | 42,672 | 12,256 | ||||||
Mexico | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 160,029 | 183,583 | 190,034 | ||||||||
Long-Lived Assets | 9,117 | 8,766 | 9,117 | 8,766 | 8,839 | ||||||
Italy | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 142,037 | 45,771 | 38,164 | ||||||||
Long-Lived Assets | 30,329 | 27,253 | 30,329 | 27,253 | 15,170 | ||||||
India | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 137,837 | 24,161 | 12,345 | ||||||||
Long-Lived Assets | 12,519 | 1,271 | 12,519 | 1,271 | 1,946 | ||||||
Australia | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 136,127 | 82,099 | 86,809 | ||||||||
Long-Lived Assets | 10,483 | 8,039 | 10,483 | 8,039 | 8,424 | ||||||
Brazil | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 69,378 | 51,493 | 84,595 | ||||||||
Long-Lived Assets | 13,184 | 13,227 | 13,184 | 13,227 | 9,318 | ||||||
Other international | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 652,653 | 381,997 | 329,375 | ||||||||
Long-Lived Assets | $ 57,296 | $ 60,344 | $ 57,296 | $ 60,344 | $ 18,472 |
SEGMENT INFORMATION - Sales by
SEGMENT INFORMATION - Sales by Product (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Total sales | $ 1,075,538 | $ 957,931 | $ 932,253 | $ 916,034 | $ 759,982 | $ 675,574 | $ 723,601 | $ 772,031 | $ 3,881,756 | $ 2,931,188 | $ 3,307,998 |
Specialty Products & Electronics | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total sales | 1,350,727 | 1,374,580 | 1,733,881 | ||||||||
Brake Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total sales | 749,959 | 588,081 | 627,552 | ||||||||
Remanufacturing, Overhaul & Build | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total sales | 522,275 | 559,284 | 606,624 | ||||||||
Transit Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total sales | 1,112,340 | 276,124 | 189,581 | ||||||||
Other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total sales | $ 146,455 | $ 133,119 | $ 150,360 |
GUARANTOR SUBSIDIARIES FINAN114
GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 233,401 | $ 398,484 | $ 226,191 | $ 425,849 |
Receivables, net | 1,166,787 | 942,508 | ||
Inventories | 742,634 | 658,510 | ||
Current assets - other | 122,291 | 868,129 | ||
Total current assets | 2,265,113 | 2,867,631 | ||
Property, plant and equipment | 573,972 | 518,376 | 353,193 | |
Goodwill | 2,460,103 | 2,078,765 | ||
Investment in subsidiaries | 0 | 0 | ||
Other intangibles, net | 1,204,432 | 1,053,860 | ||
Other noncurrent assets | 76,360 | 62,386 | ||
Total Assets | 6,579,980 | 6,581,018 | 3,229,513 | |
Current liabilities | 1,573,330 | 1,446,639 | ||
Inter-company | 0 | 0 | ||
Long-term debt | 1,823,303 | 1,762,967 | ||
Long-term liabilities - other | 354,815 | 394,587 | ||
Total liabilities | 3,751,448 | 3,604,193 | ||
Total Westinghouse Air Brake Technologies Corporation shareholders' equity | 2,808,868 | 2,205,977 | ||
Noncontrolling interest | 19,664 | 770,848 | ||
Total equity | 2,828,532 | 2,976,825 | 1,701,339 | 1,808,974 |
Total Liabilities and Equity | 6,579,980 | 6,581,018 | ||
Elimination | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Current assets - other | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in subsidiaries | (9,087,596) | (6,713,763) | ||
Other intangibles, net | 0 | 0 | ||
Other noncurrent assets | 0 | 0 | ||
Total Assets | (9,087,596) | (6,713,763) | ||
Current liabilities | 0 | 0 | ||
Inter-company | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Long-term liabilities - other | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Total Westinghouse Air Brake Technologies Corporation shareholders' equity | (9,087,596) | (6,713,763) | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | (9,087,596) | (6,713,763) | ||
Total Liabilities and Equity | (9,087,596) | (6,713,763) | ||
Parent | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 933 | 2,522 | 0 | 146,806 |
Receivables, net | 77,046 | 79,041 | ||
Inventories | 120,937 | 120,042 | ||
Current assets - other | 1,142 | 52,576 | ||
Total current assets | 200,058 | 254,181 | ||
Property, plant and equipment | 52,532 | 49,031 | ||
Goodwill | 25,274 | 25,275 | ||
Investment in subsidiaries | 6,517,205 | 5,388,613 | ||
Other intangibles, net | 30,575 | 31,897 | ||
Other noncurrent assets | 17,414 | 9,592 | ||
Total Assets | 6,843,058 | 5,758,589 | ||
Current liabilities | 196,827 | 194,983 | ||
Inter-company | 2,121,546 | 1,562,399 | ||
Long-term debt | 1,661,771 | 1,761,933 | ||
Long-term liabilities - other | 54,046 | 33,298 | ||
Total liabilities | 4,034,190 | 3,552,613 | ||
Total Westinghouse Air Brake Technologies Corporation shareholders' equity | 2,808,868 | 2,205,976 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 2,808,868 | 2,205,976 | ||
Total Liabilities and Equity | 6,843,058 | 5,758,589 | ||
Guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 4,802 | 9,496 | 13,157 | 13,297 |
Receivables, net | 237,360 | 202,779 | ||
Inventories | 137,972 | 128,076 | ||
Current assets - other | 4,507 | (17,844) | ||
Total current assets | 384,641 | 322,507 | ||
Property, plant and equipment | 136,382 | 126,661 | ||
Goodwill | 546,527 | 477,472 | ||
Investment in subsidiaries | 2,570,391 | 1,325,150 | ||
Other intangibles, net | 251,347 | 204,512 | ||
Other noncurrent assets | 295 | (1,914) | ||
Total Assets | 3,889,583 | 2,454,388 | ||
Current liabilities | 217,176 | 196,956 | ||
Inter-company | (2,026,634) | (1,848,777) | ||
Long-term debt | 14 | 58 | ||
Long-term liabilities - other | 67,824 | 74,977 | ||
Total liabilities | (1,741,620) | (1,576,786) | ||
Total Westinghouse Air Brake Technologies Corporation shareholders' equity | 5,632,665 | 4,032,250 | ||
Noncontrolling interest | (1,462) | (1,076) | ||
Total equity | 5,631,203 | 4,031,174 | ||
Total Liabilities and Equity | 3,889,583 | 2,454,388 | ||
Non-Guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 227,666 | 386,466 | $ 213,034 | $ 265,746 |
Receivables, net | 852,381 | 660,688 | ||
Inventories | 483,725 | 410,392 | ||
Current assets - other | 116,642 | 833,397 | ||
Total current assets | 1,680,414 | 2,290,943 | ||
Property, plant and equipment | 385,058 | 342,684 | ||
Goodwill | 1,888,302 | 1,576,018 | ||
Investment in subsidiaries | 0 | 0 | ||
Other intangibles, net | 922,510 | 817,451 | ||
Other noncurrent assets | 58,651 | 54,708 | ||
Total Assets | 4,934,935 | 5,081,804 | ||
Current liabilities | 1,159,327 | 1,054,700 | ||
Inter-company | (94,912) | 286,378 | ||
Long-term debt | 161,518 | 976 | ||
Long-term liabilities - other | 232,945 | 286,312 | ||
Total liabilities | 1,458,878 | 1,628,366 | ||
Total Westinghouse Air Brake Technologies Corporation shareholders' equity | 3,454,931 | 2,681,514 | ||
Noncontrolling interest | 21,126 | 771,924 | ||
Total equity | 3,476,057 | 3,453,438 | ||
Total Liabilities and Equity | $ 4,934,935 | $ 5,081,804 |
GUARANTOR SUBSIDIARIES FINAN115
GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION - Condensed Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | $ 1,075,538 | $ 957,931 | $ 932,253 | $ 916,034 | $ 759,982 | $ 675,574 | $ 723,601 | $ 772,031 | $ 3,881,756 | $ 2,931,188 | $ 3,307,998 |
Cost of sales | (2,816,443) | (2,006,949) | (2,260,182) | ||||||||
Gross profit | 268,440 | 253,203 | 273,963 | 269,707 | 219,189 | 212,481 | 237,389 | 255,180 | 1,065,313 | 924,239 | 1,047,816 |
Total operating expenses | (643,580) | (465,878) | (440,249) | ||||||||
Income from operations | 91,163 | 102,011 | 113,701 | 114,858 | 62,800 | 120,096 | 133,284 | 142,181 | 421,733 | 458,361 | 607,567 |
Interest expense, net | (68,704) | (42,561) | (16,888) | ||||||||
Other (expense) income, net | (966) | (2,963) | (5,311) | ||||||||
Equity earnings (loss) | 0 | 0 | 0 | ||||||||
Income from operations before income taxes | 352,063 | 412,837 | 585,368 | ||||||||
Income tax expense | (89,773) | (99,433) | (186,740) | ||||||||
Net income | 262,290 | 313,404 | 398,628 | ||||||||
Less: Net income attributable to noncontrolling interest | (29) | (8,517) | 0 | ||||||||
Net income attributable to Wabtec shareholders | $ 48,948 | $ 67,399 | $ 72,025 | $ 73,889 | $ 46,328 | $ 82,428 | $ 90,485 | $ 94,163 | 262,261 | 304,887 | 398,628 |
Comprehensive income attributable to Wabtec shareholders | 596,874 | 202,001 | 281,395 | ||||||||
Elimination | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | (142,412) | (145,559) | (172,776) | ||||||||
Cost of sales | 108,384 | 103,421 | 90,989 | ||||||||
Gross profit | (34,028) | (42,138) | (81,787) | ||||||||
Total operating expenses | 0 | 0 | 0 | ||||||||
Income from operations | (34,028) | (42,138) | (81,787) | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Other (expense) income, net | 0 | 0 | 0 | ||||||||
Equity earnings (loss) | (547,688) | (453,884) | (619,189) | ||||||||
Income from operations before income taxes | (581,716) | (496,022) | (700,976) | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Net income | (581,716) | (496,022) | (700,976) | ||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to Wabtec shareholders | (581,716) | (496,022) | (700,976) | ||||||||
Comprehensive income attributable to Wabtec shareholders | (581,716) | (496,022) | (700,976) | ||||||||
Parent | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | 577,397 | 641,809 | 743,262 | ||||||||
Cost of sales | (440,911) | (473,700) | (531,269) | ||||||||
Gross profit | 136,486 | 168,109 | 211,993 | ||||||||
Total operating expenses | (113,872) | (141,940) | (142,953) | ||||||||
Income from operations | 22,614 | 26,169 | 69,040 | ||||||||
Interest expense, net | (72,233) | (34,975) | (23,129) | ||||||||
Other (expense) income, net | 5,103 | 20,509 | 23,193 | ||||||||
Equity earnings (loss) | 416,068 | 322,650 | 506,903 | ||||||||
Income from operations before income taxes | 371,552 | 334,353 | 576,007 | ||||||||
Income tax expense | (109,294) | (29,466) | (177,379) | ||||||||
Net income | 262,258 | 304,887 | 398,628 | ||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to Wabtec shareholders | 262,258 | 304,887 | 398,628 | ||||||||
Comprehensive income attributable to Wabtec shareholders | 263,907 | 305,180 | 409,734 | ||||||||
Guarantors | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | 1,067,954 | 1,112,001 | 1,436,935 | ||||||||
Cost of sales | (675,546) | (708,062) | (843,104) | ||||||||
Gross profit | 392,408 | 403,939 | 593,831 | ||||||||
Total operating expenses | (123,423) | (122,617) | (131,251) | ||||||||
Income from operations | 268,985 | 281,322 | 462,580 | ||||||||
Interest expense, net | 8,843 | 7,012 | 5,914 | ||||||||
Other (expense) income, net | 289 | (2,284) | (9,140) | ||||||||
Equity earnings (loss) | 131,620 | 131,234 | 112,286 | ||||||||
Income from operations before income taxes | 409,737 | 417,284 | 571,640 | ||||||||
Income tax expense | 32,393 | (57,667) | 8,989 | ||||||||
Net income | 442,130 | 359,617 | 580,629 | ||||||||
Less: Net income attributable to noncontrolling interest | 386 | 0 | 0 | ||||||||
Net income attributable to Wabtec shareholders | 442,516 | 359,617 | 580,629 | ||||||||
Comprehensive income attributable to Wabtec shareholders | 442,516 | 359,617 | 580,629 | ||||||||
Non-Guarantors | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | 2,378,817 | 1,322,937 | 1,300,577 | ||||||||
Cost of sales | (1,808,370) | (928,608) | (976,798) | ||||||||
Gross profit | 570,447 | 394,329 | 323,779 | ||||||||
Total operating expenses | (406,285) | (201,321) | (166,045) | ||||||||
Income from operations | 164,162 | 193,008 | 157,734 | ||||||||
Interest expense, net | (5,314) | (14,598) | 327 | ||||||||
Other (expense) income, net | (6,358) | (21,188) | (19,364) | ||||||||
Equity earnings (loss) | 0 | 0 | 0 | ||||||||
Income from operations before income taxes | 152,490 | 157,222 | 138,697 | ||||||||
Income tax expense | (12,872) | (12,300) | (18,350) | ||||||||
Net income | 139,618 | 144,922 | 120,347 | ||||||||
Less: Net income attributable to noncontrolling interest | (415) | (8,517) | 0 | ||||||||
Net income attributable to Wabtec shareholders | 139,203 | 136,405 | 120,347 | ||||||||
Comprehensive income attributable to Wabtec shareholders | $ 472,167 | $ 33,226 | $ (7,992) |
GUARANTOR SUBSIDIARIES FINAN116
GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION - Condensed Cash Flow Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | $ 188,811 | $ 450,530 | $ 450,844 |
Net cash used in investing activities | (275,729) | (775,065) | (380,136) |
Net cash provided by (used in) financing activities | (97,431) | 522,971 | (251,498) |
Effect of changes in currency exchange rates | 19,266 | (26,143) | (18,868) |
(Decrease) increase in cash | (165,083) | 172,293 | (199,658) |
Cash, beginning of year | 398,484 | 226,191 | 425,849 |
Cash, end of year | 233,401 | 398,484 | 226,191 |
Elimination | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | (34,028) | (42,138) | (81,787) |
Net cash used in investing activities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 34,028 | 42,138 | 81,787 |
Effect of changes in currency exchange rates | 0 | 0 | 0 |
(Decrease) increase in cash | 0 | 0 | 0 |
Cash, beginning of year | 0 | 0 | 0 |
Cash, end of year | 0 | 0 | 0 |
Parent | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | (49,231) | (44,611) | (90,374) |
Net cash used in investing activities | (11,156) | (829,783) | (7,862) |
Net cash provided by (used in) financing activities | 58,798 | 876,916 | (48,570) |
Effect of changes in currency exchange rates | 0 | 0 | 0 |
(Decrease) increase in cash | (1,589) | 2,522 | (146,806) |
Cash, beginning of year | 2,522 | 0 | 146,806 |
Cash, end of year | 933 | 2,522 | 0 |
Guarantors | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 249,204 | 332,822 | 487,516 |
Net cash used in investing activities | (120,661) | (14,725) | (109,326) |
Net cash provided by (used in) financing activities | (133,237) | (321,758) | (378,330) |
Effect of changes in currency exchange rates | 0 | 0 | 0 |
(Decrease) increase in cash | (4,694) | (3,661) | (140) |
Cash, beginning of year | 9,496 | 13,157 | 13,297 |
Cash, end of year | 4,802 | 9,496 | 13,157 |
Non-Guarantors | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 22,866 | 204,457 | 135,489 |
Net cash used in investing activities | (143,912) | 69,443 | (262,948) |
Net cash provided by (used in) financing activities | (57,020) | (74,325) | 93,615 |
Effect of changes in currency exchange rates | 19,266 | (26,143) | (18,868) |
(Decrease) increase in cash | (158,800) | 173,432 | (52,712) |
Cash, beginning of year | 386,466 | 213,034 | 265,746 |
Cash, end of year | $ 227,666 | $ 386,466 | $ 213,034 |
OTHER (EXPENSE) INCOME, NET - C
OTHER (EXPENSE) INCOME, NET - Components of Other (Expense) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Foreign currency loss | $ (6,618) | $ (4,001) | $ (4,659) |
Equity income | 2,579 | 409 | 0 |
Other miscellaneous income (expense) | 3,073 | 629 | (652) |
Total other (expense) income, net | $ (966) | $ (2,963) | $ (5,311) |
SELECTED QUARTERLY FINANCIAL118
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in Accounting Estimate [Line Items] | |||||||||||
Net sales | $ 1,075,538 | $ 957,931 | $ 932,253 | $ 916,034 | $ 759,982 | $ 675,574 | $ 723,601 | $ 772,031 | $ 3,881,756 | $ 2,931,188 | $ 3,307,998 |
Gross profit | 268,440 | 253,203 | 273,963 | 269,707 | 219,189 | 212,481 | 237,389 | 255,180 | 1,065,313 | 924,239 | 1,047,816 |
Income from operations | 91,163 | 102,011 | 113,701 | 114,858 | 62,800 | 120,096 | 133,284 | 142,181 | 421,733 | 458,361 | 607,567 |
Net income attributable to Wabtec shareholders | $ 48,948 | $ 67,399 | $ 72,025 | $ 73,889 | $ 46,328 | $ 82,428 | $ 90,485 | $ 94,163 | $ 262,261 | $ 304,887 | $ 398,628 |
Basic earnings from operations per common share (in dollars per share) | $ 0.51 | $ 0.70 | $ 0.75 | $ 0.77 | $ 0.42 | $ 0.92 | $ 1 | $ 1.03 | $ 2.74 | $ 3.37 | $ 4.14 |
Diluted earnings from operations per common share (in dollars per share) | $ 0.51 | $ 0.70 | $ 0.75 | $ 0.77 | $ 0.42 | $ 0.91 | $ 1 | $ 1.02 | $ 2.72 | $ 3.34 | $ 4.10 |
Restatement Adjustment | |||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||
Income from operations | $ (14,800) |
Schedule II - Valuation and 119
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Warranty and overhaul reserves | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 138,992 | $ 92,064 | $ 87,849 |
Charged/ (credited) to expense | 50,385 | 28,947 | 35,418 |
Charged/(credited) to other accounts | 12,234 | 56,753 | (1,762) |
Deductions from reserves | 48,548 | 38,772 | 29,441 |
Balance at end of period | 153,063 | 138,992 | 92,064 |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 7,340 | 5,614 | 6,270 |
Charged/ (credited) to expense | 2,632 | 3,635 | 2,026 |
Charged/(credited) to other accounts | 4,979 | 0 | 0 |
Deductions from reserves | 2,609 | 1,909 | 2,682 |
Balance at end of period | 12,342 | 7,340 | 5,614 |
Valuation allowance-taxes | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 21,418 | 12,623 | 1,818 |
Charged/ (credited) to expense | 6,760 | 3,405 | 7,024 |
Charged/(credited) to other accounts | 0 | 5,390 | 3,781 |
Deductions from reserves | 10,024 | 0 | 0 |
Balance at end of period | $ 18,154 | $ 21,418 | $ 12,623 |