Segment Information

12 Months Ended

Dec. 31, 2016

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. 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:

	2016		2015		2014
Net sales:
Europe	$	2,300	$	2,324	$	2,794
North America		2,220		2,039		2,003
Latin America		1,432		1,064		1,159
Asia Pacific		684		671		793
Reportable segment totals		6,636		6,098		6,749
Other		66		58		35
Net sales	$	6,702	$	6,156	$	6,784

	2016		2015		2014
Segment operating profit:
Europe	$	237	$	209	$	353
North America		299		265		240
Latin America		269		183		227
Asia Pacific		77		83		88
Reportable segment totals		882		740		908
Items excluded from segment operating profit:
Retained corporate costs and other		(98)		(70)		(100)
Charge for asbestos-related costs				(16)		(46)
Restructuring, asset impairment and other charges		(129)		(80)		(91)
Pension settlement charges		(98)				(65)
Gain on China land sale		71
Strategic transaction costs				(23)
Acquisition-related fair value inventory adjustments				(22)
Acquisition-related fair value intangible adjustments				(10)
Non-income tax charge						(69)
Interest expense, net		(272)		(251)		(230)
Earnings from continuing operations before income taxes	$	356	$	268	$	307

									Reportable		Retained		Consoli-
			North		Latin		Asia		Segment		Corp Costs		dated
	Europe		America		America		Pacific		Totals		and Other		Totals
Total assets:
2016	$	2,792	$	2,522	$	2,537	$	926	$	8,777	$	358	$	9,135
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
Equity investments:
2016	$	78	$	21	$	—	$	117	$	216	$	217	$	433
2015		78		22				145		245		164		409
2014		81		24				153		258		169		427
Equity earnings:
2016	$	15	$	12	$	—	$	4	$	31	$	29	$	60
2015		16		19				7		42		18		60
2014		19		17				4		40		24		64
Capital expenditures:
2016	$	163	$	108	$	123	$	59	$	453	$	1	$	454
2015		164		97		89		50		400		2		402
2014		188		89		55		34		366		3		369
Depreciation and amortization expense:
2016	$	118	$	139	$	173	$	37	$	467	$	11	$	478
2015		120		128		107		40		395		14		409
2014		140		131		79		53		403		15		418

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

	U.S.		Non-U.S.		Total
2016	$	749	$	2,131	$	2,880
2015		736		2,225		2,961
2014		713		1,732		2,445

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

	U.S.		Non-U.S.		Total
2016	$	2,124	$	4,578	$	6,702
2015		1,939		4,217		6,156
2014		1,852		4,932		6,784

Intercompany sales in Latin America totaled $195 million, $101 million and $0 for the years ended December 31, 2016, 2015, and 2014, respectively.

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%).