Condensed Consolidated Guarantor Financial Statements

Libbey Glass is a direct, 100 percent owned subsidiary of Libbey Inc. and is the issuer of the Senior Secured Notes. The obligations of Libbey Glass under the Senior Secured Notes are fully and unconditionally and jointly and severally guaranteed by Libbey Inc. and by certain indirect, 100 percent owned domestic subsidiaries of Libbey Inc., as described below. All are related parties that are included in the Consolidated Financial Statements for the year ended December 31, 2011, 2010 and 2009.

At December 31, 2011, December 31, 2010 and December 31, 2009, Libbey Inc.’s indirect, 100 percent owned domestic subsidiaries were Syracuse China Company, World Tableware Inc., LGA4 Corp., LGA3 Corp., The Drummond Glass Company, LGC Corp., Dane Holding Co. (known as Traex Company prior to April 28, 2011), Libbey.com LLC, LGFS Inc., and LGAC LLC (collectively, Subsidiary Guarantors). The following tables contain Condensed Consolidating Financial Statements of (a) the parent, Libbey Inc., (b) the issuer, Libbey Glass, (c) the Subsidiary Guarantors, (d) the indirect subsidiaries of Libbey Inc. that are not Subsidiary Guarantors (collectively, Non-Guarantor Subsidiaries), (e) the consolidating elimination entries, and (f) the consolidated totals.

Libbey Inc.

Condensed Consolidating Statements of Operations



	Year ended December 31, 2011
(dollars in thousands)	Libbey Inc. (Parent)		Libbey Glass (Issuer)			Subsidiary Guarantors		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	—	$	408,561		$	74,260	$	404,567	$	(70,332	)	$	817,056
Freight billed to customers	—		630			929		837		—			2,396
Total revenues	—		409,191			75,189		405,404		(70,332		)	819,452
Cost of sales	—		336,027			55,455		329,563		(70,332		)	650,713
Gross profit	—		73,164			19,734		75,841		—			168,739
Selling, general and administrative expenses	—		60,211			7,816		37,518		—			105,545
Special charges	—		(332		)	51		—		—			(281		)
Income (loss) from operations	—		13,285			11,867		38,323		—			63,475
Other income (expense)	—		(2,560		)	3,457		4,331		—			5,228
Earnings (loss) before interest and income taxes	—		10,725			15,324		42,654		—			68,703
Interest expense	—		32,711			—		10,708		—			43,419
Income (loss) before income taxes	—		(21,986		)	15,324		31,946		—			25,284
Provision (benefit) for income taxes	—		(3,811		)	4,016		1,438		—			1,643
Net income (loss)	—		(18,175		)	11,308		30,508		—			23,641
Equity in net income (loss) of subsidiaries	23,641		41,816			—		—		(65,457		)	—
Net income (loss)	$	23,641	$	23,641		$	11,308	$	30,508	$	(65,457	)	$	23,641



	Year ended December 31, 2010
(dollars in thousands)	Libbey Inc. (Parent)		Libbey Glass (Issuer)			Subsidiary Guarantors			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	—	$	400,565		$	85,996		$	380,912	$	(67,679	)	$	799,794
Freight billed to customers	—		622			883			285		—			1,790
Total revenues	—		401,187			86,879			381,197		(67,679		)	801,584
Cost of sales	—		329,865			62,827			308,558		(67,679		)	633,571
Gross profit	—		71,322			24,052			72,639		—			168,013
Selling, general and administrative expenses	—		55,245			9,077			33,068		—			97,390
Special charges	—		765			1,037			—		—			1,802
Income (loss) from operations	—		15,312			13,938			39,571		—			68,821
Other income (expense)	—		57,315			(133		)	836		—			58,018
Earnings (loss) before interest and income taxes	—		72,627			13,805			40,407		—			126,839
Interest expense	—		39,717			(5		)	5,459		—			45,171
Income (loss) before income taxes	—		32,910			13,810			34,948		—			81,668
Provision (benefit) for income taxes	—		(4,057		)	4,034			11,605		—			11,582
Net income (loss)	—		36,967			9,776			23,343		—			70,086
Equity in net income (loss) of subsidiaries	70,086		33,119			—			—		(103,205		)	—
Net income (loss)	$	70,086	$	70,086		$	9,776		$	23,343	$	(103,205	)	$	70,086

Libbey Inc.

Condensed Consolidating Statement of Operations



	Year ended December 31, 2009
(dollars in thousands)	Libbey Inc. (Parent)			Libbey Glass (Issuer)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	385,467		$	87,041		$	325,175		$	(49,048	)	$	748,635
Freight billed to customers	—			601			839			165			—			1,605
Total revenues	—			386,068			87,880			325,340			(49,048		)	750,240
Cost of sales	—			310,031			68,505			287,607			(49,048		)	617,095
Gross profit	—			76,037			19,375			37,733			—			133,145
Selling, general and administrative expenses	—			53,906			7,954			33,040			—			94,900
Special charges	—			14			1,617			—			—			1,631
Income (loss) from operations	—			22,117			9,804			4,693			—			36,614
Other income (expense)	—			3,533			(138		)	658			—			4,053
Earnings (loss) before interest and income taxes	—			25,650			9,666			5,351			—			40,667
Interest expense	—			60,798			1			5,906			—			66,705
Income (loss) before income taxes	—			(35,148		)	9,665			(555		)	—			(26,038		)
Provision (benefit) for income taxes	—			(7,275		)	1,666			8,359			—			2,750
Net income (loss)	—			(27,873		)	7,999			(8,914		)	—			(28,788		)
Equity in net income (loss) of subsidiaries	(28,788		)	(915		)	—			—			29,703			—
Net income (loss)	$	(28,788	)	$	(28,788	)	$	7,999		$	(8,914	)	$	29,703		$	(28,788	)

Libbey Inc.

Condensed Consolidating Balance Sheet



	December 31, 2011
(dollars in thousands)	Libbey Inc. (Parent)		Libbey Glass (Issuer)		Subsidiary Guarantors		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash and equivalents	$	—	$	39,249	$	155	$	18,887		$	—		$	58,291
Accounts receivable — net	—		39,707		3,223		45,115			—			88,045
Inventories — net	—		48,077		17,009		80,773			—			145,859
Other current assets	—		16,913		747		7,432			(15,391		)	9,701
Total current assets	—		143,946		21,134		152,207			(15,391		)	301,896
Other non-current assets	—		25,138		8		18,380			(7,761		)	35,765
Investments in and advances to subsidiaries	27,780		336,596		210,876		(10,116		)	(565,136		)	—
Goodwill and purchased intangible assets — net	—		26,833		12,347		148,592			—			187,772
Total other assets	27,780		388,567		223,231		156,856			(572,897		)	223,537
Property, plant and equipment — net	—		75,951		416		188,351			—			264,718
Total assets	$	27,780	$	608,464	$	244,781	$	497,414		$	(588,288	)	$	790,151

Accounts payable	$	—	$	14,290	$	1,840	$	42,629		$	—		$	58,759
Accrued and other current liabilities	—		67,665		20,860		33,068			(15,391		)	106,202
Notes payable and long-term debt due within one year	—		227		—		3,965			—			4,192
Total current liabilities	—		82,182		22,700		79,662			(15,391		)	169,153
Long-term debt	—		360,626		—		32,542			—			393,168
Other long-term liabilities	—		156,232		17,156		34,423			(7,761		)	200,050
Total liabilities	—		599,040		39,856		146,627			(23,152		)	762,371
Total shareholders’ equity (deficit)	27,780		9,424		204,925		350,787			(565,136		)	27,780
Total liabilities and shareholders’ equity (deficit)	$	27,780	$	608,464	$	244,781	$	497,414		$	(588,288	)	$	790,151

Libbey Inc.

Condensed Consolidating Balance Sheet



	December 31, 2010
(dollars in thousands)	Libbey Inc. (Parent)		Libbey Glass (Issuer)			Subsidiary Guarantors		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash and equivalents	$	—	$	58,277		$	293	$	17,688		$	—		$	76,258
Accounts receivable — net	—		37,099			5,360		49,642			—			92,101
Inventories — net	—		52,398			19,902		75,846			—			148,146
Other current assets	—		(2,634		)	10,960		10,518			(12,407		)	6,437
Total current assets	—		145,140			36,515		153,694			(12,407		)	322,942
Other non-current assets	—		8,344			2,779		41,169			(19,134		)	33,158
Investments in and advances to subsidiaries	11,266		360,784			189,171		(32,151		)	(529,070		)	—
Goodwill and purchased intangible assets — net	—		26,833			15,761		149,880			—			192,474
Total other assets	11,266		395,961			207,711		158,898			(548,204		)	225,632
Property, plant and equipment — net	—		72,892			4,862		192,643			—			270,397
Total assets	$	11,266	$	613,993		$	249,088	$	505,235		$	(560,611	)	$	818,971

Accounts payable	$	—	$	13,514		$	2,926	$	42,655		$	—		$	59,095
Accrued and other current liabilities	—		48,092			27,811		34,430			(12,407		)	97,926
Notes payable and long-term debt due within one year	—		227			—		2,915			—			3,142
Total current liabilities	—		61,833			30,737		80,000			(12,407		)	160,163
Long-term debt	—		398,039			—		45,944			—			443,983
Other long-term liabilities	—		131,100			21,964		69,629			(19,134		)	203,559
Total liabilities	—		590,972			52,701		195,573			(31,541		)	807,705
Total shareholders’ equity (deficit)	11,266		23,021			196,387		309,662			(529,070		)	11,266
Total liabilities and shareholders’ equity (deficit)	$	11,266	$	613,993		$	249,088	$	505,235		$	(560,611	)	$	818,971

Libbey Inc.

Condensed Consolidating Statements of Cash Flows



	Year ended December 31, 2011
(dollars in thousands)	Libbey Inc. (Parent)			Libbey Glass (Issuer)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	23,641		$	23,641		$	11,308		$	30,508		$	(65,457	)	$	23,641
Depreciation and amortization	—			13,501			292			28,395			—			42,188
Other operating activities	(23,641		)	(2,184		)	(24,655		)	(25,455		)	65,457			(10,478		)
Net cash provided by (used in) operating activities	—			34,958			(13,055		)	33,448			—			55,351
Additions to property, plant & equipment	—			(18,098		)	(61		)	(23,261		)	—			(41,420		)
Other investing activities	—			33			12,978			4,689			—			17,700
Net cash (used in) investing activities	—			(18,065		)	12,917			(18,572		)	—			(23,720		)
Net borrowings (repayments)	—			(40,196		)	—			(13,547		)	—			(53,743		)
Other financing activities	—			4,275			—			—			—			4,275
Net cash provided by (used in) financing activities	—			(35,921		)	—			(13,547		)	—			(49,468		)
Exchange effect on cash	—			—			—			(130		)	—			(130		)
Increase (decrease) in cash	—			(19,028		)	(138		)	1,199			—			(17,967		)
Cash at beginning of period	—			58,277			293			17,688			—			76,258
Cash at end of period	$	—		$	39,249		$	155		$	18,887		$	—		$	58,291



	Year ended December 31, 2010
(dollars in thousands)	Libbey Inc. (Parent)			Libbey Glass (Issuer)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	70,086		$	70,086		$	9,776		$	23,343		$	(103,205	)	$	70,086
Depreciation and amortization	—			14,512			743			25,860			—			41,115
Other operating activities	(70,086		)	(67,690		)	(10,407		)	(18,524		)	103,205			(63,502		)
Net cash provided by (used in) operating activities	—			16,908			112			30,679			—			47,699
Additions to property, plant & equipment	—			(8,515		)	(238		)	(19,494		)	—			(28,247		)
Other investing activities	—			—			—			—			—			—
Net cash (used in) investing activities	—			(8,515		)	(238		)	(19,494		)	—			(28,247		)
Net borrowings (repayments)	—			35,112			—			(10,210		)	—			24,902
Other financing activities	—			(22,614		)	—			—			—			(22,614		)
Net cash provided by (used in) financing activities	—			12,498			—			(10,210		)	—			2,288
Exchange effect on cash	—			—			—			(571		)	—			(571		)
Increase (decrease) in cash	—			20,891			(126		)	404			—			21,169
Cash at beginning of period	—			37,386			419			17,284			—			55,089
Cash at end of period	$	—		$	58,277		$	293		$	17,688		$	—		$	76,258

Libbey Inc.

Condensed Consolidating Statement of Cash Flows



	Year ended December 31, 2009
(dollars in thousands)	Libbey Inc. (Parent)			Libbey Glass (Issuer)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(28,788	)	$	(28,788	)	$	7,999		$	(8,914	)	$	29,703		$	(28,788	)
Depreciation and amortization	—			14,678			2,052			26,436			—			43,166
Other operating activities	28,788			55,517			(9,711		)	42,879			(29,703		)	87,770
Net cash provided by (used in) operating activities	—			41,407			340			60,401			—			102,148
Additions to property, plant & equipment	—			(6,189		)	(339		)	(10,477		)	—			(17,005		)
Other investing activities	—			60			5			200			—			265
Net cash (used in) investing activities	—			(6,129		)	(334		)	(10,277		)	—			(16,740		)
Net borrowings (repayments)	—			(174		)	—			(39,220		)	—			(39,394		)
Other financing activities	—			(4,171		)	—			—			—			(4,171		)
Net cash provided by (used in) financing activities	—			(4,345		)	—			(39,220		)	—			(43,565		)
Exchange effect on cash	—			—			—			(58		)	—			(58		)
Increase (decrease) in cash	—			30,933			6			10,846			—			41,785
Cash at beginning of period	—			6,453			413			6,438			—			13,304
Cash at end of period	$	—		$	37,386		$	419		$	17,284		$	—		$	55,089