Segment Information

9 Months Ended

Sep. 30, 2020

Segment Information

Segment Information

1. Segment Information

Historically, the Company had three reportable segments and three operating segments based on its geographic locations: the 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. On July 31, 2020, the Company completed the sale of its Australia and New Zealand (“ANZ”) businesses, which comprised the majority of its businesses in the Asia Pacific region (approximately 85% of net sales in that region for the full year 2019), to Visy Industries Holdings Pty Ltd. (“Visy”).  After the sale of the ANZ businesses, the remaining businesses in the Asia Pacific region do not meet the criteria of an individually reportable segment. For the three and nine month periods ended September 30, 2020, the results for the Asia Pacific reportable segment reflect only one month and seven months, respectively, of the results of the ANZ businesses. For the three and nine months ended September 30, 2019, the results of the Asia Pacific segment have been recast to reflect only the results of its ANZ businesses. For all historical periods discussed in this report, the sales and operating results of the other businesses that historically comprised the Asia Pacific segment, and that have been retained by the Company, have been reclassified to Other sales and Retained corporate costs and other, respectively. For asset reporting purposes, only the assets related to the ANZ businesses have been reported in the Asia Pacific segment, while the other businesses that historically comprised this segment have been reclassified to the Other assets line for all periods presented.

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, certain equity investments and the remaining businesses in the Asia Pacific region that do not meet the criteria of an individually reportable segment after the sale of the ANZ businesses. 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 (loss) from continuing operations before interest income, interest expense, and benefit (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 (loss) 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 and nine months ended September 30, 2020 and 2019 regarding the Company’s reportable segments is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Net sales:
Americas	$	887	$	918	$	2,442	$	2,733
Europe		644		588		1,775		1,834
Asia Pacific		52		128		281		382
Reportable segment totals		1,583		1,634		4,498		4,949
Other		33		36		97		114
Net sales	$	1,616	$	1,670	$	4,595	$	5,063

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Segment operating profit:
Americas	$	113	$	123	$	268	$	380
Europe		88		79		191		248
Asia Pacific		3		4		19		25
Reportable segment totals		204		206		478		653
Items excluded from segment operating profit:
Retained corporate costs and other		(35)		(21)		(98)		(83)
Gain on sale of ANZ businesses		280				280
Charge for goodwill impairment				(595)				(595)
Restructuring, asset impairment and other charges		(9)		(32)		(80)		(73)
Charge for deconsolidation of Paddock						(14)
Pension settlement charges				(11)		(8)		(13)
Strategic transaction costs		(3)				(7)
Interest expense, net		(61)		(83)		(212)		(215)
Earnings (loss) from continuing operations before income taxes	$	376	$	(536)	$	339	$	(326)

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

	September 30,		December 31,		September 30,
	2020		2019		2019
Total assets:
Americas	$	4,663	$	5,264	$	5,241
Europe		3,307		3,127		3,053
Asia Pacific				694		695
Reportable segment totals		7,970		9,085		8,989
Other		654		525		559
Consolidated totals	$	8,624	$	9,610	$	9,548