Segment Information

12 Months Ended

Dec. 31, 2022

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 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 and other adjustments, 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:

	2022		2021		2020
Net sales:
Americas	$	3,835	$	3,557	$	3,322
Europe		2,878		2,687		2,364
Asia Pacific						281
Reportable segment totals		6,713		6,244		5,967
Other		143		113		124
Net sales	$	6,856	$	6,357	$	6,091

	2022		2021		2020
Earnings from continuing operations before income taxes	$	805	$	332	$	353
Items excluded from segment operating profit:
Retained corporate costs and other		232		171		145
Gain on sale of divested businesses and miscellaneous assets		(55)		(84)
Gain on sale leasebacks		(334)
Restructuring, asset impairment and other charges		53		35		142
Brazil indirect tax credit				(71)
Charge related to Paddock support agreement liability				154
Charge for deconsolidation of Paddock						14
Gain on sale of ANZ businesses						(275)
Strategic transaction and corp. modernization costs						8
Pension settlement charges		20		74		26
Interest expense, net		239		216		265
Segment operating profit	$	960	$	827	$	678
Americas	$	472	$	456	$	395
Europe		488		371		264
Asia Pacific						19
Reportable segment totals	$	960	$	827	$	678

							Reportable		Retained		Consoli-
					Asia		Segment		Corp Costs		dated
	Americas		Europe		Pacific		Totals		and Other		Totals
Total assets:
2022	$	5,109	$	3,392	$	—	$	8,501	$	560	$	9,061
2021		4,853		3,513				8,366		466		8,832
2020		4,927		3,507				8,434		448		8,882
Equity investments:
2022	$	488	$	146	$	—	$	634	$	61	$	695
2021		458		121				579		64		643
2020		492		120				612		61		673
Equity earnings (losses):
2022	$	64	$	43	$	—	$	107	$	—	$	107
2021		58		28				86		4		90
2020		51		23				74		(37)		37
Capital expenditures:
2022	$	339	$	192	$	—	$	531	$	8	$	539
2021		211		180				391		7		398
2020		146		138		20		304		7		311
Depreciation and amortization expense:
2022	$	278	$	152	$	—	$	430	$	24	$	454
2021		269		154				423		26		449
2020		270		146		28		444		24		468

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
2022	$	766	$	2,421	$	3,187
2021		740		2,193		2,933
2020		751		2,294		3,045

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

	U.S.		Non-U.S.		Total
2022	$	1,941	$	4,915	$	6,856
2021		1,806		4,551		6,357
2020		1,791		4,300		6,091

Operations outside the U.S. that accounted for 10% or more of consolidated net sales from continuing operations were in France (2022-11%, 2021-12%, 2020-11%), Italy (2022-12%, 2021- 12%, 2020-11%), and Mexico (2022 -13%, 2021- 12%, 2020-11%).