Segment Information

3 Months Ended

Mar. 31, 2023

Segment Information

Segment Information

1. Segment Information

The Company has two reportable segments and two operating segments based on its geographic locations: the Americas and Europe. These two 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 segments 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 Company’s Australia and New Zealand businesses in 2020. 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 before interest income, interest expense, and provision (benefit) 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, including the chief operating decision maker (defined as our chief executive officer), 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 accounting principles generally accepted in the United States (“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, 2023 and 2022 regarding the Company’s reportable segments is as follows:

	Three months ended March 31,
	2023		2022
Net sales:
Americas	$	1,000	$	940
Europe		799		708
Reportable segment totals		1,799		1,648
Other		32		44
Net sales	$	1,831	$	1,692

	Three months ended March 31,
	2023		2022
Earnings before income taxes	$	270	$	170
Items excluded from segment operating profit:
Retained corporate costs and other		60		50
Gain on sale of divested business				(55)
Interest expense, net		68		66
Segment operating profit	$	398	$	231
Americas	$	176	$	129
Europe		222		102
Reportable segment totals	$	398	$	231

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

	March 31,		December 31,		March 31,
	2023		2022		2022
Total assets:
Americas	$	5,341	$	5,109	$	5,097
Europe		3,639		3,392		3,378
Reportable segment totals		8,980		8,501		8,475
Other		445		560		402
Consolidated totals	$	9,425	$	9,061	$	8,877