Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information

Segment Information

7. Segment Information

The Company has four reportable segments based on its four geographic locations:  (1) Europe; (2) North America; (3) South America; (4) Asia Pacific.  These four segments are aligned with the Company’s internal approach to managing, reporting, and evaluating performance of its global glass operations.  Certain assets and activities not directly related to one of the regions or to glass manufacturing are reported with Retained corporate costs and other.  These include licensing, equipment manufacturing, global engineering, and non-glass equity investments.  Retained corporate costs and other also includes certain headquarters administrative and facilities costs and certain incentive compensation and other benefit plan costs that are global in nature and are not allocable to the reportable segments.

The Company’s measure of profit for its reportable segments is Segment Operating Profit, which consists of consolidated earnings from continuing operations before interest income, interest expense, and provision for income taxes and excludes amounts related to certain items that management considers not representative of ongoing operations as well as certain retained corporate costs.  The Company’s management uses Segment Operating Profit, in combination with net sales and selected cash flow information, to evaluate performance and to allocate resources.  Segment Operating Profit for reportable segments includes an allocation of some corporate expenses based on both a percentage of sales and direct billings based on the costs of specific services provided.

Financial information for the three-month periods ended September 30, 2011 and 2010 regarding the Company’s reportable segments is as follows:

	2011		2010
Net sales:
Europe	$	770	$	702
North America	497		483
South America	310		243
Asia Pacific	270		251
Reportable segment totals	1,847		1,679
Other	15		10
Net sales	$	1,862	$	1,689

	2011			2010
Segment Operating Profit:
Europe	$	106		$	114
North America	73			72
South America	67			56
Asia Pacific	23			37
Reportable segment totals	269			279
Items excluded from Segment Operating Profit:
Retained corporate costs and other	(24		)	(21		)
Restructuring and asset impairment	(29		)
Acquisition-related fair value inventory adjustments and restructuring, transaction and financing costs				(11		)
Interest income	2			2
Interest expense	(70		)	(61		)
Earnings from continuing operations before income taxes	$	148		$	188

Financial information for the nine-month periods ended September 30, 2011 and 2010 regarding the Company’s reportable segments is as follows:

	2011		2010
Net sales:
Europe	$	2,355	$	2,086
North America	1,466		1,443
South America	881		625
Asia Pacific	778		724
Reportable segment totals	5,480		4,878
Other	60		27
Net sales	$	5,540	$	4,905

	2011			2010
Segment Operating Profit:
Europe	$	284		$	274
North America	188			222
South America	165			142
Asia Pacific	56			105
Reportable segment totals	693			743
Items excluded from Segment Operating Profit:
Retained corporate costs and other	(51		)	(52		)
Restructuring and asset impairment	(41		)	(8		)
Acquisition-related fair value inventory adjustments and restructuring, transaction and financing costs				(11		)
Interest income	8			10
Interest expense	(246		)	(177		)
Earnings from continuing operations before income taxes	$	363		$	505

Financial information regarding the Company’s total assets is as follows:

	September 30,		December 31,		September 30,
	2011		2010		2010
Total assets:
Europe	$	3,693	$	3,618	$	3,659
North America	1,953		1,961		2,002
South America	1,649		1,680		1,639
Asia Pacific	1,974		2,047		1,898
Reportable segment totals	9,269		9,306		9,198
Other	283		448		685
Consolidated totals	$	9,552	$	9,754	$	9,883