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. 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, as well as glass products for OEMs regardless of end–market destination.

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. Segment EBIT also includes an allocation of manufacturing costs for inventory produced at a Libbey facility that is located in a region other than the end market in which the inventory is sold. This allocation can fluctuate from year to year based on the relative demands for products produced in regions other than the end markets in which they are sold. 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)	2018			2017
Net Sales:
U.S. & Canada	$	107,941		$	109,329
Latin America	34,333			30,722
EMEA	32,248			25,331
Other	7,391			7,612
Consolidated	$	181,913		$	172,994

Segment EBIT:
U.S. & Canada	$	4,724		$	7,501
Latin America	2,150			(3,079		)
EMEA	1,005			(837		)
Other	(1,129		)	(1,215		)
Total Segment EBIT	$	6,750		$	2,370

Reconciliation of Segment EBIT to Net Loss:
Segment EBIT	$	6,750		$	2,370
Retained corporate costs	(6,710		)	(7,291		)
Interest expense	(5,084		)	(4,867		)
Benefit from income taxes	2,083			3,218
Net loss	$	(2,961	)	$	(6,570	)

Depreciation & Amortization:
U.S. & Canada	$	3,387		$	3,082
Latin America	4,710			4,397
EMEA	2,009			1,844
Other	1,314			1,354
Corporate	459			478
Consolidated	$	11,879		$	11,155

Capital Expenditures:
U.S. & Canada	$	7,137		$	1,937
Latin America	2,389			6,982
EMEA	1,294			2,763
Other	120			213
Corporate	331			57
Consolidated	$	11,271		$	11,952