Segments

We have revised our segment structure to reflect our reorganization from geographical regions to one global company. Under this new structure, we have two reportable segments: Glass Operations and Other Operations. The classifications are defined as follows:

Glass Operations — includes worldwide sales of manufactured and sourced glass tableware and other glass products from domestic and international subsidiaries.

Other Operations — includes worldwide sales of sourced ceramic dinnerware, metal tableware, hollowware and serveware and plastic items. Plastic items were sold through April 28, 2011.

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. 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 both a percentage of sales and direct billings 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. Corporate assets primarily include finance fees, capitalized software, and income tax assets.

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. We evaluate the performance of our segments based upon sales and Segment Segment EBIT. Inter-segment sales are consummated at arm’s length and are reflected in eliminations below.



Year ended December 31, (dollars in thousands)	2011			2010			2009
Net Sales:
Glass Operations	$	746,581		$	717,576		$	666,218
Other Operations	71,183			82,783			83,158
Eliminations	(708		)	(565		)	(741		)
Consolidated	$	817,056		$	799,794		$	748,635
Segment EBIT:
Glass Operations	$	96,716		$	94,745		$	67,326
Other Operations	11,974			14,902			13,058
Total Segment EBIT	$	108,690		$	109,647		$	80,384
Reconciliation of Segment EBIT to Net Income (Loss):
Segment EBIT	$	108,690		$	109,647		$	80,384
Retained corporate costs	(37,789		)	(35,804		)	(32,704		)
(Loss) gain on redemption of debt (note 6)	(2,803		)	58,292			—
Gain on sale of Traex assets (note 17)	3,418			—			—
Gain on sale of land ⁽¹⁾ (note 17)	3,445			—			—
Restructuring charges (note 7)	84			(2,498		)	(3,823		)
CEO transition expenses	(2,722		)	—			—
Abandoned property (note 18)	(2,719		)	—			—
Pension settlement charges (note 9)	—			—			(3,190		)
Other special items ⁽²⁾	(901		)	(2,798		)	—
Interest expense	(43,419		)	(45,171		)	(66,705		)
Income taxes	(1,643		)	(11,582		)	(2,750		)
Net income (loss)	$	23,641		$	70,086		$	(28,788	)
Depreciation & Amortization:
Glass Operations	$	40,398		$	39,038		$	39,778
Other Operations	265			715			2,020
Corporate	1,525			1,362			1,368
Consolidated	$	42,188		$	41,115		$	43,166
Capital Expenditures:
Glass Operations	$	40,161		$	26,079		$	15,631
Other Operations	28			239			354
Corporate	1,231			1,929			1,020
Consolidated	$	41,420		$	28,247		$	17,005



December 31, (dollars in thousands)	2011		2010
Segment Assets:
Glass Operations	$	736,377	$	752,058
Other Operations	32,638		45,944
Corporate	21,136		20,969
Consolidated	$	790,151	$	818,971

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(1)	Net gain on the sale of land at our Libbey Holland facility.


(2)	2011 includes $1,105 of severance, a $817 write-down of unutilized fixed assets in our Glass Operations segment, net of an $805 equipment credit and other income of $216. 2010 includes equity offerings fees related to the secondary stock offering of $1,047, an equipment write-down of $2,696, offset by an insurance claim recovery of $945.

Net sales to customers and long-lived assets located in the U.S., Mexico, and Other regions for 2011, 2010 and 2009 are presented below. Intercompany sales to affiliates represent products that are transferred to those geographic areas on a basis intended to reflect as nearly as possible the market value of the products. The long-lived assets include net fixed assets, goodwill and equity investments.



(dollars in thousands)	United States		Mexico		All Other		Eliminations			Consolidated
2011
Net sales:
Customers	$	441,882	$	122,308	$	252,866				$	817,056
Intercompany	55,281		13,964		24,470		$	(93,715	)	—
Total net sales	$	497,163	$	136,272	$	277,336	$	(93,715	)	$	817,056
Long-lived assets	$	114,207	$	199,577	$	117,506	$	—		$	431,290

2010
Net sales:
Customers	$	444,534	$	121,282	$	233,978				$	799,794
Intercompany	55,432		10,846		16,085		$	(82,363	)	—
Total net sales	$	499,966	$	132,128	$	250,063	$	(82,363	)	$	799,794
Long-lived assets	$	118,363	$	197,604	$	123,770	$	—		$	439,737

2009
Net sales:
Customers	$	435,500	$	104,254	$	208,881				$	748,635
Intercompany	42,832		6,958		7,927		$	(57,717	)	—
Total net sales	$	478,332	$	111,212	$	216,808	$	(57,717	)	$	748,635
Long-lived assets	$	126,371	$	195,648	$	136,314	$	—		$	458,333