Segments and Geographic Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segments and Geographic Information

Segments and Geographic Information

Our reporting segments align with our regionally focused organizational structure, which we believe enables us to better serve customers across the globe. Under this structure, we report financial results for the Americas; Europe, the Middle East and Africa (EMEA), U.S. Sourcing; and Other. In addition, sales and segment EBIT reflect end market reporting pursuant to which sales and related costs are included in segment EBIT based on the geographical destination of the sale. Our three reportable segments are defined below. Our operating segment that does not meet the criteria to be a reportable segment is disclosed as Other.

Americas—includes worldwide sales of manufactured and sourced glass tableware having an end market destination in North and South America.

EMEA—includes worldwide sales of manufactured and sourced glass tableware having an end market destination in Europe, the Middle East and Africa.

U.S. Sourcing—includes U.S. sales of sourced ceramic dinnerware, metal tableware, hollowware, and serveware.

Other —includes worldwide sales of manufactured and sourced glass tableware having an end market destination in Asia Pacific.

Our measure of profit for our reportable segments is Segment Earnings before Interest and Taxes (Segment EBIT) and excludes amounts related to certain items we consider not representative of ongoing operations as well as certain retained corporate costs and other allocations that are not considered by management when evaluating performance. We use Segment EBIT, along with net sales and selected cash flow information, to evaluate performance and to allocate resources. Segment EBIT for reportable segments includes an allocation of some corporate expenses based on the costs of services performed.

Certain activities not related to any particular reportable segment are reported within retained corporate costs. These costs include certain headquarter, administrative and facility costs, and other costs that are global in nature and are not allocable to the reporting segments.

The accounting policies of the reportable segments are the same as those described in note 2. We do not have any customers who represent 10 percent or more of total sales. Inter-segment sales are consummated at arm’s length and are reflected at end market reporting below.

Year ended December 31, (dollars in thousands)	2014			2013			2012
Net Sales:
Americas	$	591,391		$	560,840		$	580,734
EMEA	147,587			146,455			134,778
U.S. Sourcing	80,782			78,302			72,234
Other	32,732			33,214			37,541
Consolidated	$	852,492		$	818,811		$	825,287
Segment EBIT:
Americas	$	98,460		$	100,534		$	95,833
EMEA	5,726			874			(714		)
U.S. Sourcing	6,995			9,752			11,381
Other	2,378			3,374			8,846
Total Segment EBIT	$	113,559		$	114,534		$	115,346
Reconciliation of Segment EBIT to Net Income:
Segment EBIT	$	113,559		$	114,534		$	115,346
Retained corporate costs	(30,558		)	(21,653		)	(24,678		)
Loss on redemption of debt (note 6)	(47,191		)	(2,518		)	(31,075		)
Severance	—			—			(5,150		)
Pension curtailment and settlement charge	(774		)	(2,252		)	(4,306		)
Furnace malfunction (note 18)	4,782			(4,428		)	—
Environmental obligation (note 18)	(315		)	—			—
Restructuring charges (note 7)	(985		)	(6,544		)	—
Derivatives (1)	(1,247		)	(916		)	265
Abandoned property (note 18)	—			(1,781		)	—
Executive retirement	(875		)	(736		)	—
Interest expense	(22,866		)	(32,006		)	(37,727		)
Income taxes	(8,567		)	(13,241		)	(5,709		)
Net income	$	4,963		$	28,459		$	6,966
Depreciation & Amortization:
Americas	$	22,856		$	24,953		$	24,661
EMEA	10,061			10,449			9,746
U.S. Sourcing	25			33			40
Other	6,179			7,275			5,777
Corporate	1,267			1,259			1,247
Consolidated	$	40,388		$	43,969		$	41,471
Capital Expenditures:
Americas	$	44,444		$	31,404		$	24,021
EMEA	6,471			7,787			5,459
U.S. Sourcing	—			30			—
Other	1,983			7,437			2,196
Corporate	1,495			2,749			1,044
Consolidated	$	54,393		$	49,407		$	32,720

______________________________

⁽¹⁾ Derivatives relate to hedge ineffectiveness and mark-to-market adjustments on our natural gas contracts that have been de-designated and those for which we did not elect hedge accounting. 2013 and 2012 also include hedge ineffectiveness on our interest rate swap.

December 31, (dollars in thousands)	2014		2013
Segment Assets(1):
Americas	$	163,074	$	158,131
EMEA	48,557		50,115
U.S. Sourcing	33,328		27,202
Other	15,975		17,222
Consolidated	$	260,934	$	252,670

______________________________

⁽¹⁾ Segment assets are defined as net accounts receivable, excluding insurance claim receivable resulting from the furnace malfunction, plus net inventory.

Net sales to customers and long-lived assets located in the U.S., Mexico, and Other regions for 2014, 2013 and 2012 are presented below. Intercompany sales to affiliates represent products that are transferred to those geographic areas on a basis intended to reflect as nearly as possible the market value of the products. The long-lived assets include net fixed assets and goodwill.

(dollars in thousands)	United States		Mexico		All Other		Eliminations			Consolidated
2014
Net sales:
Customers	$	465,820	$	126,699	$	259,973				$	852,492
Intercompany	80,525		14,960		35,058		$	(130,543	)	—
Total net sales	$	546,345	$	141,659	$	295,031	$	(130,543	)	$	852,492
Long-lived assets	$	121,133	$	223,641	$	97,316	$	—		$	442,090
2013
Net sales:
Customers	$	444,176	$	125,752	$	248,883				$	818,811
Intercompany	51,521		12,747		22,423		$	(86,691	)	—
Total net sales	$	495,697	$	138,499	$	271,306	$	(86,691	)	$	818,811
Long-lived assets	$	106,545	$	213,651	$	112,845	$	—		$	433,041
2012
Net sales:
Customers	$	463,659	$	119,234	$	242,394				$	825,287
Intercompany	56,420		12,387		20,930		$	(89,737	)	—
Total net sales	$	520,079	$	131,621	$	263,324	$	(89,737	)	$	825,287
Long-lived assets	$	110,919	$	202,437	$	111,370	$	—		$	424,726