Segment Information

9 Months Ended

Sep. 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 net sales and 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 $34 million and $97 million for the three and nine months ended September 30, 2017, respectively, and $36 million and $129 million for the three and nine months ended September 30, 2016, respectively.

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

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Net sales:
Europe	$	624	$	586	$	1,813	$	1,795
North America		551		578		1,651		1,709
Latin America		412		365		1,123		1,022
Asia Pacific		188		170		516		487
Reportable segment totals		1,775		1,699		5,103		5,013
Other		16		13		54		47
Net sales	$	1,791	$	1,712	$	5,157	$	5,060

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Segment operating profit:
Europe	$	81	$	64	$	220	$	192
North America		75		79		252		247
Latin America		84		74		207		194
Asia Pacific		20		20		51		48
Reportable segment totals		260		237		730		681
Items excluded from segment operating profit:
Retained corporate costs and other		(25)		(18)		(81)		(75)
Restructuring, asset impairment and other						(49)		(12)
Interest expense, net		(63)		(66)		(204)		(199)
Earnings from continuing operations before income taxes	$	172	$	153	$	396	$	395

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

		September 30,		December 31,		September 30,
		2017		2016		2016
Total assets:
Europe	$	3,140	$	2,792	$	2,972
North America		2,826		2,522		2,536
Latin America		2,772		2,537		2,629
Asia Pacific		1,046		926		1,025
Reportable segment totals		9,784		8,777		9,162
Other		215		358		335
Consolidated totals	$	9,999	$	9,135	$	9,497