Segment Information

6 Months Ended

Jun. 30, 2019

Segment Information

Segment Information

1. Segment Information

The Company has three reportable segments and three operating segments based on its geographic locations: Americas, Europe and Asia Pacific. These three 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 is a non-GAAP financial measure that 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.

Financial information for the three and six months ended June 30, 2019 and 2018 regarding the Company’s reportable segments is as follows:

	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Net sales:
Americas	$	934	$	930	$	1,815		$	1,838
Europe		650		674		1,246			1,317
Asia Pacific		152		153		303			326
Reportable segment totals		1,736		1,757		3,364			3,481
Other		20		15		29			27
Net sales	$	1,756	$	1,772	$	3,393		$	3,508

	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Segment operating profit:
Americas	$	144	$	152	$	257	$	299
Europe		90		101		169		173
Asia Pacific		2		2		10		7
Reportable segment totals		236		255		436		479
Items excluded from segment operating profit:
Retained corporate costs and other		(28)		(30)		(53)		(57)
Restructuring, asset impairment and other		(42)		(73)		(42)		(73)
Interest expense, net		(68)		(74)		(132)		(136)
Earnings from continuing operations before income taxes	$	98	$	78	$	209	$	213

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

	June 30,		December 31,		June 30,
	2019		2018		2018
Total assets:
Americas	$	5,994	$	5,497	$	5,402
Europe		3,342		3,036		3,232
Asia Pacific		1,045		918		981
Reportable segment totals		10,381		9,451		9,615
Other		342		248		203
Consolidated totals	$	10,723	$	9,699	$	9,818