Segment Information

3 Months Ended

Mar. 31, 2017

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.

Intercompany sales in Latin America totaled $33 million and $50 million for the three months ended March 31, 2017 and 2016, respectively.

Financial information for the three months ended March 31, 2017 and 2016 regarding the Company’s reportable segments is as follows:

	Three months ended March 31,
	2017		2016
Net sales:
Europe	$	554	$	563
North America		528		532
Latin America		341		312
Asia Pacific		173		159
Reportable segment totals		1,596		1,566
Other		19		22
Net sales	$	1,615	$	1,588

	Three months ended March 31,
	2017		2016
Segment operating profit:
Europe	$	59	$	55
North America		85		76
Latin America		54		63
Asia Pacific		20		17
Reportable segment totals		218		211
Items excluded from segment operating profit:
Retained corporate costs and other		(28)		(32)
Restructuring, asset impairment and other		(39)		(12)
Interest expense, net		(78)		(66)
Earnings from continuing operations before income taxes	$	73	$	101

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

		March 31,		December 31,		March 31,
		2017		2016		2016
Total assets:
Europe	$	2,858	$	2,792	$	3,047
North America		2,742		2,522		2,550
Latin America		2,691		2,537		2,855
Asia Pacific		998		926		933
Reportable segment totals		9,289		8,777		9,385
Other		170		358		303
Consolidated totals	$	9,459	$	9,135	$	9,688