Segment Information-K

12 Months Ended

Dec. 31, 2015

Segment Information

Segment Information

2.  Segment Information

The Company has four reportable segments based on its geographic locations:  Europe, North America, Latin America and Asia Pacific.  In connection with the Company’s acquisition (the “Vitro Acquisition”) of the food and beverage glass container business of Vitro S.A.B. de C.V. and its subsidiaries as conducted in the United States, Mexico and Bolivia (the “Vitro Business”) on September 1, 2015 (see Note 19), the Company has renamed the former South America segment to the Latin America segment. This change in segment name was made to reflect the addition of the Mexican and Bolivian operations from the Vitro Acquisition into the former South America segment.  The acquired Vitro food and beverage glass container distribution business located in the United States is included in the North American operating segment.  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 certain 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 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 regarding the Company’s reportable segments is as follows:

	2015		2014		2013
Net sales:
Europe	$	2,324	$	2,794	$	2,787
North America		2,039		2,003		2,002
Latin America		1,064		1,159		1,186
Asia Pacific		671		793		966
Reportable segment totals		6,098		6,749		6,941
Other		58		35		26
Net sales	$	6,156	$	6,784	$	6,967

	2015		2014		2013
Segment operating profit:
Europe	$	209	$	353	$	305
North America		265		240		307
Latin America		183		227		204
Asia Pacific		83		88		131
Reportable segment totals		740		908		947
Items excluded from segment operating profit:
Retained corporate costs and other		(70)		(100)		(119)
Charge for asbestos-related costs		(225)		(135)		(145)
Restructuring, asset impairment and other charges		(80)		(91)		(119)
Strategic transaction costs		(23)
Acquisition-related fair value inventory adjustments		(22)
Acquisition-related fair value intangible adjustments		(10)
Non-income tax charge				(69)
Pension settlement charges				(65)
Interest expense, net		(251)		(230)		(229)
Earnings from continuing operations before income taxes	$	59	$	218	$	335

									Reportable		Retained		Consoli-
			North		Latin		Asia		Segment		Corp Costs		dated
	Europe		America		America		Pacific		Totals		and Other		Totals
Total assets:
2015	$	2,902	$	2,500	$	2,807	$	917	$	9,126	$	295	$	9,421
2014		3,214		1,971		1,300		1,018		7,503		340		7,843
2013		3,494		1,995		1,467		1,150		8,106		287		8,393
Equity investments:
2015	$	78	$	22	$	—	$	145	$	245	$	164	$	409
2014		81		24				153		258		169		427
2013		84		25				155		264		51		315
Equity earnings:
2015	$	16	$	19	$	—	$	7	$	42	$	18	$	60
2014		19		17				4		40		24		64
2013		17		16				10		43		24		67
Capital expenditures:
2015	$	164	$	97	$	89	$	50	$	400	$	2	$	402
2014		188		89		55		34		366		3		369
2013		130		100		80		36		346		15		361
Depreciation and amortization expense:
2015	$	120	$	128	$	107	$	40	$	395	$	14	$	409
2014		140		131		79		53		403		15		418
2013		139		110		72		62		383		14		397

The Company’s net property, plant and equipment by geographic segment are as follows:

	U.S.		Non-U.S.		Total
2015	$	736	$	2,225	$	2,961
2014		713		1,732		2,445
2013		686		1,946		2,632

The Company’s net sales by geographic segment are as follows:

	U.S.		Non-U.S.		Total
2015	$	1,939	$	4,217	$	6,156
2014		1,852		4,932		6,784
2013		1,809		5,158		6,967

Operations outside the U.S. that accounted for more than 10% of consolidated net sales from continuing operations were in France (2015 — 10%, 2014 — 11%, 2013 — 11%).