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 September 30,						Nine months ended September 30,
(dollars in thousands)	2018			2017			2018			2017
Net Sales:
U.S. & Canada	$	115,304		$	112,252		$	351,719		$	343,452
Latin America	35,406			35,339			110,029			102,564
EMEA	33,289			33,743			103,712			90,128
Other	6,776			6,005			20,762			21,703
Consolidated	$	190,775		$	187,339		$	586,222		$	557,847

Segment EBIT:
U.S. & Canada	$	7,538		$	10,761		$	25,620		$	33,307
Latin America	1,727			3,721			11,310			2,549
EMEA	1,358			1,482			4,984			(1,412		)
Other	852			(1,529		)	383			(3,598		)
Total Segment EBIT	$	11,475		$	14,435		$	42,297		$	30,846

Reconciliation of Segment EBIT to Net Loss:
Segment EBIT	$	11,475		$	14,435		$	42,297		$	30,846
Retained corporate costs	(6,683		)	(5,701		)	(21,929		)	(18,087		)
Goodwill impairment (note 15)	—			(79,700		)	—			(79,700		)
Fees associated with strategic initiative ⁽¹⁾	(2,341		)	—			(2,341		)	—
Reorganization charges	—			—			—			(2,488		)
Interest expense	(5,652		)	(5,118		)	(16,192		)	(15,123		)
Provision for income taxes	(1,758		)	(2,731		)	(5,767		)	(1,665		)
Net loss	$	(4,959	)	$	(78,815	)	$	(3,932	)	$	(86,217	)

Depreciation & Amortization:
U.S. & Canada	$	3,850		$	2,850		$	10,289		$	9,016
Latin America	4,208			4,850			13,412			13,757
EMEA	1,835			1,816			5,784			5,508
Other	992			1,138			3,615			3,821
Corporate	385			579			1,289			1,514
Consolidated	$	11,270		$	11,233		$	34,389		$	33,616

Capital Expenditures:
U.S. & Canada	$	6,101		$	2,751		$	18,830		$	7,145
Latin America	3,718			3,937			8,885			15,401
EMEA	1,619			5,050			4,362			15,446
Other	129			348			391			816
Corporate	2,207			6			2,655			332
Consolidated	$	13,774		$	12,092		$	35,123		$	39,140

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⁽¹⁾	Legal and professional fees associated with a strategic initiative that we terminated during the third quarter.