Segment Information

3 Months Ended

Mar. 31, 2020

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 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. Segment operating profit is not a recognized term under U.S. GAAP and therefore does not purport to be an alternative to earnings before income taxes. Further, the Company's measure of segment operating profit may not be comparable to similarly titled measures of other companies.
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Financial information for the three months ended March 31, 2020 and 2019 regarding the Company’s reportable segments is as follows:

	Three months ended March 31,
	2020		2019
Net sales:
Americas	$	831	$	881
Europe		576		596
Asia Pacific		145		151
Reportable segment totals		1,552		1,628
Other		9		10
Net sales	$	1,561	$	1,638

	Three months ended March 31,
	2020		2019
Segment operating profit:
Americas	$	103	$	113
Europe		61		79
Asia Pacific		5		8
Reportable segment totals		169		200
Items excluded from segment operating profit:
Retained corporate costs and other		(21)		(24)
Charge for deconsolidation of Paddock		(14)
Interest expense, net		(53)		(65)
Earnings before income taxes	$	81	$	111

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

	March 31,		December 31,		March 31,
	2020		2019		2019
Total assets:
Americas	$	4,693	$	5,264	$	5,621
Europe		3,290		3,127		3,273
Asia Pacific		896		1,012		1,012
Reportable segment totals		8,879		9,403		9,906
Other		625		207		246
Consolidated totals	$	9,504	$	9,610	$	10,152