Segment Information

6 Months Ended

Jun. 30, 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 certain minor 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 used by other companies.

Financial information for the three and six months ended June 30, 2024 and 2023 regarding the Company’s reportable segments is as follows:

	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Net sales:
Americas	$	899	$	996	$	1,753	$	1,996
Europe		802		863		1,511		1,662
Reportable segment totals		1,701		1,859		3,264		3,658
Other		28		31		58		63
Net sales	$	1,729	$	1,890	$	3,322	$	3,721

	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Earnings before income taxes	$	104	$	154	$	221	$	424
Items excluded from segment operating profit:
Retained corporate costs and other		32		54		72		114
Legacy environmental charge		10				10
Interest expense, net		87		118		165		186
Segment operating profit	$	233	$	326	$	468	$	724
Americas	$	106	$	126	$	208	$	303
Europe		127		200		260		421
Reportable segment totals	$	233	$	326	$	468	$	724

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

	June 30,		December 31,		June 30,
	2024		2023		2023
Total assets:
Americas	$	5,009	$	5,218	$	5,574
Europe		3,796		3,949		3,652
Reportable segment totals		8,805		9,167		9,226
Other		529		502		685
Consolidated totals	$	9,334	$	9,669	$	9,911