Segment Information

9 Months Ended

Sep. 30, 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.  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 and nine months ended September 30, 2016 and 2015 regarding the Company’s reportable segments is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Net sales:
Europe	$	586	$	605	$	1,795	$	1,809
North America		578		520		1,709		1,520
Latin America		365		265		1,022		677
Asia Pacific		170		162		487		478
Reportable segment totals		1,699		1,552		5,013		4,484
Other		13		14		47		46
Net sales	$	1,712	$	1,566	$	5,060	$	4,530

	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Segment operating profit:
Europe	$	64	$	68	$	192	$	181
North America		79		61		247		214
Latin America		74		51		194		108
Asia Pacific		20		19		48		51
Reportable segment totals		237		199		681		554
Items excluded from segment operating profit:
Retained corporate costs and other		(18)		(10)		(75)		(49)
Restructuring, asset impairment and other				(41)		(12)		(68)
Strategic transaction costs				(13)				(19)
Acquisition-related fair value inventory adjustments				(10)				(10)
Interest expense, net		(66)		(67)		(199)		(188)
Earnings from continuing operations before income taxes	$	153	$	58	$	395	$	220

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

		September 30,		December 31,		September 30,
		2016		2015		2015
Total assets:
Europe	$	2,972	$	2,902	$	3,030
North America		2,536		2,500		2,028
Latin America		2,629		2,807		3,297
Asia Pacific		1,025		917		894
Reportable segment totals		9,162		9,126		9,249
Other		335		295		305
Consolidated totals	$	9,497	$	9,421	$	9,554