Segments

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 U.S. and Canada; Latin America; Europe, the Middle East and Africa (EMEA); and Other. Segment results are based primarily on the geographical destination of the sale. In the first quarter of 2017, net sales and related costs for certain countries were reclassified between segments to align with changes in business unit responsibilities. Accordingly, 2016 segment results have been reclassified to conform with the revised structure. The revised 2016 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 sales of manufactured and sourced tableware 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 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 sales of manufactured and sourced glass tableware having an end market destination in Europe, the Middle East and Africa.

Other—includes primarily 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. As the gain (loss) on mark-to-market natural gas contracts is considered representative of our ongoing operations, it is included in Segment EBIT in 2017; the prior year derivative amount originally excluded from Segment EBIT in 2016 has been reclassified and included in Segment EBIT to conform to the current year presentation. 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.



	Three months ended March 31,
(dollars in thousands)	2017			2016
Net Sales:
U.S. & Canada	$	109,329		$	112,052
Latin America	30,722			34,203
EMEA	25,331			27,860
Other	7,612			8,692
Consolidated	$	172,994		$	182,807

Segment EBIT:
U.S. & Canada	$	7,501		$	12,840
Latin America	(3,079		)	4,702
EMEA	(837		)	(497		)
Other	(1,215		)	450
Total Segment EBIT	$	2,370		$	17,495

Reconciliation of Segment EBIT to Net Income (Loss):
Segment EBIT	$	2,370		$	17,495
Retained corporate costs	(7,291		)	(6,724		)
Executive terminations	—			(4,947		)
Interest expense	(4,867		)	(5,244		)
Benefit from income taxes	3,218			138
Net income (loss)	$	(6,570	)	$	718

Depreciation & Amortization:
U.S. & Canada	$	3,082		$	3,456
Latin America	4,397			4,542
EMEA	1,844			2,158
Other	1,354			1,428
Corporate	478			497
Consolidated	$	11,155		$	12,081

Capital Expenditures:
U.S. & Canada	$	1,937		$	3,839
Latin America	6,982			2,296
EMEA	2,763			2,218
Other	213			695
Corporate	57			807
Consolidated	$	11,952		$	9,855