Segment Information

9 Months Ended

Sep. 30, 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 the chief executive officer), uses segment operating profit, supplemented by net sales and selected cash flow information, to evaluate segment performance and 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.

Financial information for the three and nine months ended September 30, 2023 and 2022 regarding the Company’s reportable segments is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Net sales:
Americas	$	948	$	987	$	2,943	$	2,898
Europe		766		680		2,428		2,153
Reportable segment totals		1,714		1,667		5,371		5,051
Other		29		26		93		112
Net sales	$	1,743	$	1,693	$	5,464	$	5,163

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Earnings before income taxes	$	82	$	278	$	506	$	776
Items excluded from segment operating profit:
Retained corporate costs and other		60		63		175		165
Restructuring, asset impairment and other charges		81		10		81		21
Gain on sale of divested business								(55)
Gain on sale leasebacks				(153)				(334)
Pension settlement charges				5				5
Interest expense, net		78		63		263		175
Segment operating profit	$	301	$	266	$	1,025	$	753
Americas	$	116	$	130	$	419	$	388
Europe		185		136		606		365
Reportable segment totals	$	301	$	266	$	1,025	$	753

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

	September 30,		December 31,		September 30,
	2023		2022		2022
Total assets:
Americas	$	5,474	$	5,109	$	5,020
Europe		3,709		3,392		3,174
Reportable segment totals		9,183		8,501		8,194
Other		552		560		450
Consolidated totals	$	9,735	$	9,061	$	8,644