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 June 30,						Six months ended June 30,
(dollars in thousands)	2017			2016			2017			2016
Net Sales:
U.S. & Canada	$	121,871		$	125,061		$	231,200		$	237,113
Latin America	36,503			40,619			67,225			74,822
EMEA	31,054			32,709			56,385			60,569
Other	8,086			9,513			15,698			18,205
Consolidated	$	197,514		$	207,902		$	370,508		$	390,709

Segment EBIT:
U.S. & Canada	$	15,045		$	24,457		$	22,546		$	37,297
Latin America	1,907			8,570			(1,172		)	13,272
EMEA	(2,057		)	355			(2,894		)	(142		)
Other	(854		)	876			(2,069		)	1,326
Total Segment EBIT	$	14,041		$	34,258		$	16,411		$	51,753

Reconciliation of Segment EBIT to Net Income (Loss):
Segment EBIT	$	14,041		$	34,258		$	16,411		$	51,753
Retained corporate costs	(5,095		)	(7,050		)	(12,386		)	(13,774		)
Pension settlement	—			(212		)	—			(212		)
Reorganization charges	(2,488		)	—			(2,488		)	—
Product portfolio optimization	—			(6,784		)	—			(6,784		)
Executive terminations	—			328			—			(4,619		)
Interest expense	(5,138		)	(5,154		)	(10,005		)	(10,398		)
(Provision) benefit for income taxes	(2,152		)	(6,691		)	1,066			(6,553		)
Net income (loss)	$	(832	)	$	8,695		$	(7,402	)	$	9,413

Depreciation & Amortization:
U.S. & Canada	$	3,084		$	3,379		$	6,166		$	6,835
Latin America	4,510			4,516			8,907			9,058
EMEA	1,848			3,617			3,692			5,775
Other	1,329			1,409			2,683			2,837
Corporate	457			433			935			930
Consolidated	$	11,228		$	13,354		$	22,383		$	25,435

Capital Expenditures:
U.S. & Canada	$	2,457		$	2,154		$	4,394		$	5,993
Latin America	4,482			1,380			11,464			3,676
EMEA	7,633			889			10,396			3,107
Other	255			895			468			1,590
Corporate	269			338			326			1,145
Consolidated	$	15,096		$	5,656		$	27,048		$	15,511