Segment Information

3 Months Ended

Mar. 31, 2024

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. 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 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 months ended March 31, 2024 and 2023 regarding the Company’s reportable segments is as follows:

	Three months ended March 31,
	2024		2023
Net sales:
Americas	$	854	$	1,000
Europe		709		799
Reportable segment totals		1,563		1,799
Other		30		32
Net sales	$	1,593	$	1,831

	Three months ended March 31,
	2024		2023
Earnings before income taxes	$	117	$	270
Items excluded from segment operating profit:
Retained corporate costs and other		40		60
Interest expense, net		78		68
Segment operating profit	$	235	$	398
Americas	$	102	$	176
Europe		133		222
Reportable segment totals	$	235	$	398

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

	March 31,		December 31,		March 31,
	2024		2023		2023
Total assets:
Americas	$	5,258	$	5,218	$	5,341
Europe		3,729		3,949		3,639
Reportable segment totals		8,987		9,167		8,980
Other		422		502		445
Consolidated totals	$	9,409	$	9,669	$	9,425