Segment Information

6 Months Ended

Jun. 30, 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 $30 million and $63 million for the three and six months ended June 30, 2017, respectively, and $43 million and $93 million for the three and six months ended June 30, 2016, respectively.

Financial information for the three and six months ended June 30, 2017 and 2016 regarding the Company’s reportable segments is as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Net sales:
Europe	$	635	$	646	$	1,189	$	1,209
North America		572		599		1,100		1,131
Latin America		370		345		711		657
Asia Pacific		155		158		328		317
Reportable segment totals		1,732		1,748		3,328		3,314
Other		19		12		38		34
Net sales	$	1,751	$	1,760	$	3,366	$	3,348

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Segment operating profit:
Europe	$	80	$	73	$	139	$	128
North America		92		92		177		168
Latin America		69		57		123		120
Asia Pacific		11		11		31		28
Reportable segment totals		252		233		470		444
Items excluded from segment operating profit:
Retained corporate costs and other		(28)		(25)		(56)		(57)
Restructuring, asset impairment and other		(10)				(49)		(12)
Interest expense, net		(62)		(67)		(141)		(133)
Earnings from continuing operations before income taxes	$	152	$	141	$	224	$	242

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

		June 30,		December 31,		June 30,
		2017		2016		2016
Total assets:
Europe	$	3,074	$	2,792	$	2,977
North America		2,781		2,522		2,562
Latin America		2,730		2,537		2,798
Asia Pacific		987		926		981
Reportable segment totals		9,572		8,777		9,318
Other		208		358		349
Consolidated totals	$	9,780	$	9,135	$	9,667