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Condensed Consolidated Guarantor Financial Statements
12 Months Ended
Dec. 31, 2011
Condensed Consolidated Guarantor Financial Statements [Abstract]  
Condensed Consolidated Guarantor Financial Statements
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