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Segment Information
 9 Months Ended
Sep. 30, 2015
Segment Information  
Segment Information

1.  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 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, 2015 and 2014 regarding the Company’s reportable segments is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Three months ended  September 30,

    

Nine months ended

September 30,

 

 

 

2015

    

2014

    

2015

    

2014

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

$
605

 

$
709

 

$
1,809

 

$
2,205

 

North America

 

 
520

 

 
517

 

 
1,520

 

 
1,543

 

Latin America

 

 
265

 

 
313

 

 
677

 

 
826

 

Asia Pacific

 

 
162

 

 
197

 

 
478

 

 
584

 

Reportable segment totals

 

 
1,552

 

 
1,736

 

 
4,484

 

 
5,158

 

Other

 

 
14

 

 
9

 

 
46

 

 
23

 

Net sales

 

$
1,566

 

$
1,745

 

$
4,530

 

$
5,181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

September 30,

 

Nine months ended

September 30,

 

 

    

2015

    

2014

    

2015

    

2014

 

Segment operating profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

$
68

 

$
104

 

$
181

 

$
300

 

North America

 

 
61

 

 
66

 

 
214

 

 
214

 

Latin America

 

 
51

 

 
61

 

 
108

 

 
155

 

Asia Pacific

 

 
19

 

 
17

 

 
51

 

 
59

 

Reportable segment totals

 

 
199

 

 
248

 

 
554

 

 
728

 

Items excluded from segment operating profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

Retained corporate costs and other

 

 
(10)

 

 
(20)

 

 
(49)

 

 
(79)

 

Restructuring, asset impairment and other charges

 

 
(41)

 

 
(84)

 

 
(68)

 

 
(84)

 

Strategic transaction costs

 

 
(13)

 

 

 

 

 
(19)

 

 

 

 

Acquisition-related fair value inventory adjustments

 

 
(10)

 

 

 

 

 
(10)

 

 

 

 

Interest expense, net

 

 
(67)

 

 
(53)

 

 
(188)

 

 
(161)

 

Earnings from continuing operations before income taxes

 

$
58

 

$
91

 

$
220

 

$
404

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

September 30,

 

 

    

2015

    

2014

    

2014

 

Total assets:

 

 

 

 

 

 

 

 

 

 

Europe

 

$
3,030

 

$
3,214

 

$
3,405

 

North America

 

 
2,028

 

 
1,971

 

 
2,030

 

Latin America

 

 
3,297

 

 
1,300

 

 
1,358

 

Asia Pacific

 

 
894

 

 
1,018

 

 
1,042

 

 

 

 

 

 

 

 

 

 

 

 

Reportable segment totals

 

 
9,249

 

 
7,503

 

 
7,835

 

Other

 

 
305

 

 
340

 

 
306

 

Consolidated totals

 

$
9,554

 

$
7,843

 

$
8,141