Segment Information

6 Months Ended

Jun. 30, 2016

Segment Information

Segment Information

2.  Segment Information

The Company has four reportable segments based on its geographic locations:  Europe, North America, Latin America and Asia Pacific.  In connection with the Company’s acquisition (the “Vitro Acquisition”) of the food and beverage glass container business of Vitro S.A.B. de C.V. and its subsidiaries as conducted in the United States, Mexico and Bolivia (the “Vitro Business”) on September 1, 2015 (see Note 15), the Company has renamed the former South America segment to the Latin America segment. This change in segment name was made to reflect the addition of the Mexican and Bolivian operations from the Vitro Acquisition into the former South America segment.  The acquired Vitro food and beverage glass container distribution business located in the United States is included in the North American operating segment.  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 manufacturing, 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 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 six months ended June 30, 2016 and 2015 regarding the Company’s reportable segments is as follows:

	Three months ended  June 30,				Six months ended June 30,
	2016		2015		2016		2015
Net sales:
Europe	$	646	$	637	$	1,209	$	1,204
North America		599		530		1,131		1,000
Latin America		345		207		657		412
Asia Pacific		158		153		317		316
Reportable segment totals		1,748		1,527		3,314		2,932
Other		12		16		34		32
Net sales	$	1,760	$	1,543	$	3,348	$	2,964

	Three months ended  June 30,				Six months ended June 30,
	2016		2015		2016		2015
Segment operating profit:
Europe	$	73	$	64	$	128	$	113
North America		92		82		168		153
Latin America		57		27		120		57
Asia Pacific		11		14		28		32
Reportable segment totals		233		187		444		355
Items excluded from segment operating profit:
Retained corporate costs and other		(25)		(18)		(57)		(39)
Restructuring, asset impairment and other				(27)		(12)		(27)
Strategic transaction costs				(6)				(6)
Interest expense, net		(67)		(74)		(133)		(121)
Earnings from continuing operations before income taxes	$	141	$	62	$	242	$	162

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

	June 30,		December 31,		June 30,
	2016		2015		2015
Total assets:
Europe	$	2,977	$	2,902	$	3,117
North America		2,562		2,500		2,042
Latin America		2,798		2,807		1,094
Asia Pacific		981		917		921
Reportable segment totals		9,318		9,126		7,174
Other		349		295		444
Consolidated totals	$	9,667	$	9,421	$	7,618