Segments and Geographic Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segments and Geographic Information

Segments and Geographic Information

In the fourth quarter of 2015, we revised our reporting segments in connection with the transition of all regional business units reporting to our Chief Operating Officer who is also the Chief Operating Decision Maker. Under the new structure, our U.S. and Canada glass tableware business is combined with our U.S. and Canada sourcing business in order to be consistent with the way we manage and report our other segments. Our reporting segments continue to align with our regionally focused organizational structure, which we believe enables us to better serve customers across the globe. We now report financial results for U.S. and Canada; Latin America; Europe, the Middle East and Africa (EMEA); and Other. Sales and segment EBIT continue to reflect end market reporting pursuant to which sales and related costs are included in segment EBIT based on the geographical destination of the sale. The revised segment results do not affect any previously reported consolidated financial results. 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.

U.S. & Canada—includes worldwide sales of manufactured and sourced glass tableware and sourced ceramic dinnerware, metal tableware, hollowware and serveware having an end market destination in the U.S and Canada excluding glass products for Original Equipment Manufacturers (OEM), which remain in the Latin America segment.

Latin America—includes primarily worldwide sales of manufactured and sourced glass tableware having an end market destination in Latin America including glass products for OEMs that have an end market destination outside of Latin America.

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

Other—includes primarily 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)	2015			2014			2013
Net Sales:
U.S. & Canada	$	497,728		$	482,094		$	459,575
Latin America	167,069			190,079			179,567
EMEA	122,664			147,587			146,455
Other	34,884			32,732			33,214
Consolidated	$	822,345		$	852,492		$	818,811
Segment EBIT:
U.S. & Canada	$	80,406		$	72,546		$	76,445
Latin America	22,017			32,909			33,841
EMEA	1,251			5,726			874
Other	4,390			2,378			3,374
Total Segment EBIT	$	108,064		$	113,559		$	114,534
Reconciliation of Segment EBIT to Net Income:
Segment EBIT	$	108,064		$	113,559		$	114,534
Retained corporate costs	(34,645		)	(30,558		)	(21,653		)
Loss on redemption of debt (note 6)	—			(47,191		)	(2,518		)
Pension settlement charges (note 9)	(21,693		)	(774		)	(2,252		)
Furnace malfunction (note 18)	—			4,782			(4,428		)
Environmental obligation (note 18)	(157		)	(315		)	—
Restructuring charges (note 7)	—			(985		)	(6,544		)
Reorganization charges (1)	(4,316		)	—			—
Derivatives (2)	218			(1,247		)	(916		)
Abandoned property (note 18)	—			—			(1,781		)
Executive termination	(870		)	(875		)	(736		)
Interest expense	(18,484		)	(22,866		)	(32,006		)
(Provision) benefit for income taxes	38,216			(8,567		)	(13,241		)
Net income	$	66,333		$	4,963		$	28,459
Depreciation & Amortization:
U.S. & Canada	$	12,214		$	10,319		$	12,685
Latin America	14,738			12,562			12,301
EMEA	8,510			10,061			10,449
Other	5,855			6,179			7,275
Corporate	1,395			1,267			1,259
Consolidated	$	42,712		$	40,388		$	43,969
Capital Expenditures:
U.S. & Canada	$	25,106		$	21,927		$	9,022
Latin America	11,944			22,517			22,412
EMEA	6,773			6,471			7,787
Other	1,855			1,983			7,437
Corporate	2,458			1,495			2,749
Consolidated	$	48,136		$	54,393		$	49,407

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⁽¹⁾ Management reorganization to support our growth strategy.

⁽²⁾ Derivatives relate to hedge ineffectiveness on our natural gas contracts and interest rate swap, as well as, mark-to-market adjustments on our natural gas contracts that have been de-designated and those for which we did not elect hedge accounting.

December 31, (dollars in thousands)	2015		2014		2013
Segment Assets(1):
U.S. & Canada	$	140,840	$	129,676	$	115,184
Latin America	68,599		66,726		70,149
EMEA	48,924		48,557		50,115
Other	14,043		15,975		17,222
Consolidated	$	272,406	$	260,934	$	252,670

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⁽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 2015, 2014 and 2013 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 property, plant and equipment.

(dollars in thousands)	United States		Mexico		All Other		Eliminations			Consolidated
2015
Net sales:
Customers	$	488,582	$	107,386	$	226,377				$	822,345
Intercompany	68,388		11,573		37,612		$	(117,573	)	—
Total net sales	$	556,970	$	118,959	$	263,989	$	(117,573	)	$	822,345
Long-lived assets	$	94,206	$	93,573	$	84,755	$	—		$	272,534
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	$	82,702	$	97,960	$	97,316	$	—		$	277,978
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	$	68,114	$	84,703	$	112,845	$	—		$	265,662