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 June 30,						Six months ended June 30,
(dollars in thousands)	2018			2017			2018			2017
Net Sales:
U.S. & Canada	$	128,474		$	121,871		$	236,415		$	231,200
Latin America	40,290			36,503			74,623			67,225
EMEA	38,175			31,054			70,423			56,385
Other	6,595			8,086			13,986			15,698
Consolidated	$	213,534		$	197,514		$	395,447		$	370,508

Segment EBIT:
U.S. & Canada	$	13,358		$	15,045		$	18,082		$	22,546
Latin America	7,433			1,907			9,583			(1,172		)
EMEA	2,621			(2,057		)	3,626			(2,894		)
Other	660			(854		)	(469		)	(2,069		)
Total Segment EBIT	$	24,072		$	14,041		$	30,822		$	16,411

Reconciliation of Segment EBIT to Net Income (Loss):
Segment EBIT	$	24,072		$	14,041		$	30,822		$	16,411
Retained corporate costs	(8,536		)	(5,095		)	(15,246		)	(12,386		)
Reorganization charges	—			(2,488		)	—			(2,488		)
Interest expense	(5,456		)	(5,138		)	(10,540		)	(10,005		)
(Provision) benefit for income taxes	(6,092		)	(2,152		)	(4,009		)	1,066
Net income (loss)	$	3,988		$	(832	)	$	1,027		$	(7,402	)

Depreciation & Amortization:
U.S. & Canada	$	3,052		$	3,084		$	6,439		$	6,166
Latin America	4,494			4,510			9,204			8,907
EMEA	1,940			1,848			3,949			3,692
Other	1,309			1,329			2,623			2,683
Corporate	445			457			904			935
Consolidated	$	11,240		$	11,228		$	23,119		$	22,383

Capital Expenditures:
U.S. & Canada	$	5,592		$	2,457		$	12,729		$	4,394
Latin America	2,778			4,482			5,167			11,464
EMEA	1,449			7,633			2,743			10,396
Other	142			255			262			468
Corporate	117			269			448			326
Consolidated	$	10,078		$	15,096		$	21,349		$	27,048