Segment Information

9 Months Ended

Sep. 30, 2013

Segment Information

Segment Information

1.  Segment Information

The Company has four reportable segments based on its geographic locations:  Europe, North America, South America and 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 and nine months ended September 30, 2013 and 2012 regarding the Company’s reportable segments is as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2013		2012		2013		2012
Net sales:
Europe	$	733	$	652	$	2,129	$	2,088
North America	529		513		1,525		1,511
South America	282		323		820		882
Asia Pacific	236		254		714		741
Reportable segment totals	1,780		1,742		5,188		5,222
Other	4		5		18		30
Net sales	$	1,784	$	1,747	$	5,206	$	5,252

	Three months ended						Nine months ended
	September 30,						September 30,
	2013			2012			2013			2012
Segment operating profit:
Europe	$	97		$	74		$	267		$	289
North America	87			75			254			249
South America	42			69			132			154
Asia Pacific	33			27			99			79
Reportable segment totals	259			245			752			771
Items excluded from segment operating profit:
Retained corporate costs and other	(27		)	(26		)	(92		)	(82		)
Restructuring, asset impairment and related charges				(33		)	(10		)	(33		)
Interest income	2			2			6			7
Interest expense	(56		)	(61		)	(184		)	(187		)
Earnings from continuing operations before income taxes	$	178		$	127		$	472		$	476

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

	September 30,		December 31,		September 30,
	2013		2012		2012
Total assets:
Europe	$	3,515	$	3,362	$	3,510
North America	2,007		1,994		2,058
South America	1,499		1,655		1,658
Asia Pacific	1,228		1,349		1,371
Reportable segment totals	8,249		8,360		8,597
Other	223		238		274
Consolidated totals	$	8,472	$	8,598	$	8,871