Segments and Geographic Information

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. It is impracticable to provide revenue by product categories.



Year ended December 31, (dollars in thousands)	2018			2017
Net Sales:
U.S. & Canada	$	483,741		$	481,797
Latin America	148,091			144,322
EMEA	138,399			126,924
Other	27,627			28,785
Consolidated	$	797,858		$	781,828

Segment EBIT:
U.S. & Canada	$	36,805		$	48,044
Latin America	12,599			6,590
EMEA	7,219			1,321
Other	1,872			(3,838		)
Total Segment EBIT	$	58,495		$	52,117

Reconciliation of Segment EBIT to Net Loss:
Segment EBIT	$	58,495		$	52,117
Retained corporate costs	(31,878		)	(27,099		)
Goodwill impairment (note 4)	—			(79,700		)
Fees associated with strategic initiative ⁽¹⁾	(2,341		)	—
Reorganization charges	—			(2,488		)
Interest expense	(21,979		)	(20,400		)
Provision for income taxes	(10,253		)	(15,798		)
Net loss	$	(7,956	)	$	(93,368	)

Depreciation & Amortization:
U.S. & Canada	$	13,358		$	12,665
Latin America	17,457			18,576
EMEA	7,412			7,377
Other	4,431			5,088
Corporate	1,675			1,838
Consolidated	$	44,333		$	45,544

Capital Expenditures:
U.S. & Canada	$	22,203		$	10,056
Latin America	13,527			18,520
EMEA	5,051			17,158
Other	745			1,226
Corporate	3,561			668
Consolidated	$	45,087		$	47,628

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⁽¹⁾Legal and professional fees associated with a strategic initiative that was terminated during the third quarter of 2018.



December 31, (dollars in thousands)	2018		2017
Segment Assets⁽¹⁾:
U.S. & Canada	$	152,168	$	147,809
Latin America	64,166		63,093
EMEA	46,576		48,270
Other	13,170		18,711
Consolidated	$	276,080	$	277,883

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⁽¹⁾ Segment assets are defined as net accounts receivable plus net inventory.

Geographic data for the U.S., Mexico and Other countries for 2018 and 2017 is presented below. Net sales are based on the geographical destination of the sale. The long-lived assets include net property, plant and equipment.



(dollars in thousands)	United States		Mexico		All Other		Consolidated
2018
Net sales	$	480,868	$	101,656	$	215,334	$	797,858
Long-lived assets	$	99,135	$	86,775	$	79,050	$	264,960

2017
Net sales	$	479,018	$	93,370	$	209,440	$	781,828
Long-lived assets	$	89,838	$	87,836	$	88,001	$	265,675