Segment Information

9 Months Ended

Sep. 30, 2014

Segment Information

Segment Information

2. Segment Information

The Company has four reportable segments based on its geographic locations:  Europe, North America, South America and Asia Pacific.  These four segments are aligned with the Company’s internal approach to managing, reporting, and evaluating performance of its global glass operations.  Certain assets and activities not directly related to one of the regions or to glass manufacturing are reported with Retained corporate costs and other.  These include licensing, equipment sales, global engineering, and certain equity investments.  Retained corporate costs and other also includes certain headquarters administrative and facilities costs and certain incentive compensation and other benefit plan costs that are global in nature and are not allocable to the reportable segments.

The Company’s measure of profit for its reportable segments is segment operating profit, which consists of consolidated earnings from continuing operations before interest income, interest expense, and provision for income taxes and excludes amounts related to certain items that management considers not representative of ongoing operations as well as certain retained corporate costs.  The Company’s management uses segment operating profit, in combination with net sales and selected cash flow information, to evaluate performance and to allocate resources.  Segment operating profit for reportable segments includes an allocation of some corporate expenses based on both a percentage of sales and direct billings based on the costs of specific services provided.

Financial information for the three and nine months ended September 30, 2014 and 2013 regarding the Company’s reportable segments is as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2014		2013		2014		2013
Net sales:
Europe	$	709	$	733	$	2,205	$	2,129
North America	517		529		1,543		1,525
South America	313		282		826		820
Asia Pacific	197		236		584		714
Reportable segment totals	1,736		1,780		5,158		5,188
Other	9		4		23		18
Net sales	$	1,745	$	1,784	$	5,181	$	5,206

	Three months ended						Nine months ended
	September 30,						September 30,
	2014			2013			2014			2013
Segment operating profit:
Europe	$	104		$	97		$	300		$	267
North America	66			87			214			254
South America	61			42			155			132
Asia Pacific	17			33			59			99
Reportable segment totals	248			259			728			752
Items excluded from segment operating profit:
Retained corporate costs and other	(20		)	(27		)	(79		)	(92		)
Restructuring, asset impairment and related charges	(84		)				(84		)	(10		)
Interest expense, net	(53		)	(54		)	(161		)	(178		)
Earnings from continuing operations before income taxes	$	91		$	178		$	404		$	472

Financial information regarding the Company’s total assets is as follows:

	September 30,		December 31,		September 30,
	2014		2013		2013
Total assets:
Europe	$	3,415	$	3,509	$	3,515
North America	2,030		1,995		2,007
South America	1,358		1,467		1,499
Asia Pacific	1,042		1,150		1,228
Reportable segment totals	7,845		8,121		8,249
Other	313		298		223
Consolidated totals	$	8,158	$	8,419	$	8,472