Segment Information

3 Months Ended

Mar. 31, 2016

Segment Information

Segment Information

1.  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 15), 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 for the three months ended March 31, 2016 and 2015 regarding the Company’s reportable segments is as follows:

	2016		2015
Net sales:
Europe	$	563	$	567
North America		532		470
Latin America		312		205
Asia Pacific		159		163
Reportable segment totals		1,566		1,405
Other		22		16
Net sales	$	1,588	$	1,421

	2016		2015
Segment operating profit:
Europe	$	55	$	49
North America		76		71
Latin America		63		30
Asia Pacific		17		18
Reportable segment totals		211		168
Items excluded from segment operating profit:
Retained corporate costs and other		(32)		(21)
Restructuring, asset impairment and other		(12)
Interest expense, net		(66)		(47)
Earnings from continuing operations before income taxes	$	101	$	100

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

	March 31,		December 31,		March 31,
	2016		2015		2015
Total assets:
Europe	$	3,047	$	2,902	$	2,926
North America		2,550		2,500		2,033
Latin America		2,855		2,807		1,097
Asia Pacific		933		917		942
Reportable segment totals		9,385		9,126		6,998
Other		303		295		314
Consolidated totals	$	9,688	$	9,421	$	7,312