Segment Information

12 Months Ended

Dec. 31, 2020

Segment Information

Segment Information

2. 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 year ended December 31, 2020, the results for the Asia Pacific reportable segment reflect only seven months of the results of the ANZ businesses. For the years ended December 31, 2019 and December 31, 2018, 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, and that have been retained by the Company, have been reclassified to the Retained corporate costs and 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 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 regarding the Company’s reportable segments is as follows:

	2020		2019		2018
Net sales:
Americas	$	3,322	$	3,622	$	3,638
Europe		2,364		2,387		2,489
Asia Pacific		281		534		582
Reportable segment totals		5,967		6,543		6,709
Other		124		148		168
Net sales	$	6,091	$	6,691	$	6,877

	2020		2019		2018
Segment operating profit:
Americas	$	395	$	495	$	585
Europe		264		317		316
Asia Pacific		19		44		54
Reportable segment totals		678		856		955
Items excluded from segment operating profit:
Retained corporate costs and other charges		(145)		(112)		(116)
Gain on sale of ANZ businesses		275
Charge for goodwill impairment				(595)
Charge for asbestos-related costs				(35)		(125)
Pension settlement charges		(26)		(26)		(74)
Restructuring, asset impairment and other		(142)		(114)		(102)
Charge for deconsolidation of Paddock		(14)
Strategic transaction and corp. modernization costs		(8)		(31)
Gain on sale of equity investment				107
Interest expense, net		(265)		(311)		(261)
Earnings (loss) from continuing operations before income taxes	$	353	$	(261)	$	277

							Reportable		Retained		Consoli-
					Asia		Segment		Corp Costs		dated
	Americas		Europe		Pacific		Totals		and Other		Totals
Total assets:
2020	$	4,927	$	3,507	$	—	$	8,434	$	448	$	8,882
2019		5,264		3,127		694		9,085		525		9,610
2018		5,497		3,036		620		9,153		546		9,699
Equity investments:
2020	$	492	$	120	$	—	$	612	$	61	$	673
2019		491		101				592		102		694
2018		429		98				527		171		698
Equity earnings (losses):
2020	$	51	$	23	$	—	$	74	$	(37)	$	37
2019		38		18				56		22		78
2018		39		21				60		17		77
Capital expenditures:
2020	$	146	$	138	$	20	$	304	$	7	$	311
2019		178		177		39		394		32		426
2018		255		187		52		494		42		536
Depreciation and amortization expense:
2020	$	270	$	146	$	28	$	444	$	24	$	468
2019		292		136		45		473		26		499
2018		293		136		43		472		22		494

The Company’s tangible long-lived assets, including property, plant and equipment and operating lease right-of-use assets, by geographic region are as follows:

	U.S.		Non-U.S.		Total
2020	$	751	$	2,294	$	3,045
2019		778		2,698		3,476
2018		681		2,404		3,085

The Company’s net sales by geographic region are as follows:

	U.S.		Non-U.S.		Total
2020	$	1,791	$	4,300	$	6,091
2019		1,914		4,777		6,691
2018		2,020		4,857		6,877

Operations outside the U.S. that accounted for 10% or more of consolidated net sales from continuing operations were in France (2020- 11%), Italy (2020-11%, 2019- 10%), and Mexico (2020-11%, 2019- 11%).