Condensed Consolidated Guarantor Financial Statements

3 Months Ended

Mar. 31, 2012

Condensed Consolidated Guarantor Financial Statements [Abstract]

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 Condensed Consolidated Financial Statements for the three months ended March 31, 2012 and March 31, 2011.

At March 31, 2012, December 31, 2011 and March 31, 2011, 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 Comprehensive Income

(unaudited)



	Three months ended March 31, 2012
(dollars in thousands)	Libbey Inc. (Parent)		Libbey Glass (Issuer)			Subsidiary Guarantors		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—	$	93,480		$	17,445	$	93,159		$	(16,255	)	$	187,829
Freight billed to customers	—		166			183		359			—			708
Total revenues	—		93,646			17,628		93,518			(16,255		)	188,537
Cost of sales	—		74,311			13,013		74,412			(16,255		)	145,481
Gross profit	—		19,335			4,615		19,106			—			43,056
Selling, general and administrative expenses	—		17,942			1,516		8,668			—			28,126
Special charges	—		—			—		—			—			—
Income (loss) from operations	—		1,393			3,099		10,438			—			14,930
Other income (expense)	—		297			12		(900		)	—			(591		)
Earnings (loss) before interest and income taxes	—		1,690			3,111		9,538			—			14,339
Interest expense	—		8,193			—		2,215			—			10,408
Income (loss) before income taxes	—		(6,503		)	3,111		7,323			—			3,931
Provision (benefit) for income taxes	—		225			—		3,065			—			3,290
Net income (loss)	—		(6,728		)	3,111		4,258			—			641
Equity in net income (loss) of subsidiaries	641		7,369			—		—			(8,010		)	—
Net income (loss)	$	641	$	641		$	3,111	$	4,258		$	(8,010	)	$	641

Comprehensive income (loss)	$	5,753	$	5,753		$	3,235	$	7,044		$	(16,032	)	$	5,753



	Three months ended March 31, 2011
(dollars in thousands)	Libbey Inc. (Parent)			Libbey Glass (Issuer)			Subsidiary Guarantors		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	90,569		$	19,756	$	83,344	$	(12,654	)	$	181,015
Freight billed to customers	—			151			194		66		—			411
Total revenues	—			90,720			19,950		83,410		(12,654		)	181,426
Cost of sales	—			74,863			14,870		68,201		(12,654		)	145,280
Gross profit	—			15,857			5,080		15,209		—			36,146
Selling, general and administrative expenses	—			13,940			2,282		9,180		—			25,402
Special charges	—			—			51		—		—			51
Income (loss) from operations	—			1,917			2,747		6,029		—			10,693
Other income (expense)	—			(2,555		)	34		2,724		—			203
Earnings (loss) before interest and income taxes	—			(638		)	2,781		8,753		—			10,896
Interest expense	—			8,793			—		2,790		—			11,583
Income (loss) before income taxes	—			(9,431		)	2,781		5,963		—			(687		)
Provision (benefit) for income taxes	—			(622		)	72		864		—			314
Net income (loss)	—			(8,809		)	2,709		5,099		—			(1,001		)
Equity in net income (loss) of subsidiaries	(1,001		)	7,808			—		—		(6,807		)	—
Net income (loss)	$	(1,001	)	$	(1,001	)	$	2,709	$	5,099	$	(6,807	)	$	(1,001	)

Comprehensive income (loss)	$	8,321		$	8,321		$	470	$	14,155	$	(22,946	)	$	8,321

Libbey Inc.

Condensed Consolidating Balance Sheet




	March 31, 2012 (unaudited)
(dollars in thousands)	Libbey Inc. (Parent)		Libbey Glass (Issuer)		Subsidiary Guarantors		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash and equivalents	$	—	$	9,892	$	157	$	22,769		$	—		$	32,818
Accounts receivable — net	—		36,439		5,442		44,981			—			86,862
Inventories — net	—		54,038		15,483		89,606			—			159,127
Other current assets	—		17,389		192		9,989			(18,154		)	9,416
Total current assets	—		117,758		21,274		167,345			(18,154		)	288,223
Other non-current assets	—		17,063		8		26,943			(7,479		)	36,535
Investments in and advances to subsidiaries	32,755		338,636		212,912		(10,030		)	(574,273		)	—
Goodwill and purchased intangible assets — net	—		26,833		12,347		148,456			—			187,636
Total other assets	32,755		382,532		225,267		165,369			(581,752		)	224,171
Property, plant and equipment — net	—		75,616		396		187,179			—			263,191
Total assets	$	32,755	$	575,906	$	246,937	$	519,893		$	(599,906	)	$	775,585

Accounts payable	$	—	$	11,146	$	1,739	$	41,400		$	—		$	54,285
Accrued and other current liabilities	—		44,228		21,078		38,876			(15,231		)	88,951
Notes payable and long-term debt due within one year	—		211		—		3,735			—			3,946
Total current liabilities	—		55,585		22,817		84,011			(15,231		)	147,182
Long-term debt	—		360,529		—		32,848			—			393,377
Other long-term liabilities	—		154,598		12,058		46,017			(10,402		)	202,271
Total liabilities	—		570,712		34,875		162,876			(25,633		)	742,830
Total shareholders’ equity (deficit)	32,755		5,194		212,062		357,017			(574,273		)	32,755
Total liabilities and shareholders’ equity (deficit)	$	32,755	$	575,906	$	246,937	$	519,893		$	(599,906	)	$	775,585

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 Statements of Cash Flows

(unaudited)



	Three months ended March 31, 2012
(dollars in thousands)	Libbey Inc. (Parent)			Libbey Glass (Issuer)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	641		$	641		$	3,111		$	4,258		$	(8,010	)	$	641
Depreciation and amortization	—			3,538			19			6,979			—			10,536
Other operating activities	(641		)	(30,332		)	(3,128		)	(4,184		)	8,010			(30,275		)
Net cash provided by (used in) operating activities	—			(26,153		)	2			7,053			—			(19,098		)
Additions to property, plant & equipment	—			(3,181		)	—			(3,265		)	—			(6,446		)
Other investing activities	—			—			—			180			—			180
Net cash (used in) investing activities	—			(3,181		)	—			(3,085		)	—			(6,266		)
Net borrowings (repayments)	—			(51		)	—			(343		)	—			(394		)
Other financing activities	—			28			—			—			—			28
Net cash provided by (used in) financing activities	—			(23		)	—			(343		)	—			(366		)
Exchange effect on cash	—			—			—			257			—			257
Increase (decrease) in cash	—			(29,357		)	2			3,882			—			(25,473		)
Cash at beginning of period	—			39,249			155			18,887			—			58,291
Cash at end of period	$	—		$	9,892		$	157		$	22,769		$	—		$	32,818



	Three months ended March 31, 2011
(dollars in thousands)	Libbey Inc. (Parent)			Libbey Glass (Issuer)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(1,001	)	$	(1,001	)	$	2,709		$	5,099		$	(6,807	)	$	(1,001	)
Depreciation and amortization	—			3,808			198			6,875			—			10,881
Other operating activities	1,001			(22,959		)	(3,510		)	(14,299		)	6,807			(32,960		)
Net cash provided by (used in) operating activities	—			(20,152		)	(603		)	(2,325		)	—			(23,080		)
Additions to property, plant & equipment	—			(1,812		)	(3		)	(6,691		)	—			(8,506		)
Other investing activities	—			—			500			4,102			—			4,602
Net cash (used in) investing activities	—			(1,812		)	497			(2,589		)	—			(3,904		)
Net borrowings (repayments)	—			(35,698		)	—			—			—			(35,698		)
Other financing activities	—			(844		)	—			—			—			(844		)
Net cash provided by (used in) financing activities	—			(36,542		)	—			—			—			(36,542		)
Exchange effect on cash	—			—			—			380			—			380
Increase (decrease) in cash	—			(58,506		)	(106		)	(4,534		)	—			(63,146		)
Cash at beginning of period	—			58,277			293			17,688			—			76,258
Cash at end of period	$	—		$	(229	)	$	187		$	13,154		$	—		$	13,112