Segments

We have two reportable segments 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. Inter-segment sales are consummated at arm’s length and are reflected in eliminations below.



	Three months ended June 30,						Six months ended June 30,
(dollars in thousands)	2012			2011			2012			2011
Net Sales:
Glass Operations	$	190,541		$	194,487		$	361,819		$	356,540
Other Operations	18,942			19,690			35,696			38,851
Eliminations	(236		)	(164		)	(439		)	(363		)
Consolidated	$	209,247		$	214,013		$	397,076		$	395,028

Segment EBIT:
Glass Operations	$	38,306		$	29,973		$	60,289		$	47,364
Other Operations	3,677			3,762			6,741			6,641
Total Segment EBIT	$	41,983		$	33,735		$	67,030		$	54,005

Reconciliation of Segment EBIT to Net Income:
Segment EBIT	$	41,983		$	33,735		$	67,030		$	54,005
Retained corporate costs	(12,587		)	(9,938		)	(23,295		)	(19,903		)
Loss on redemption of debt (note 4)	(31,075		)	—			(31,075		)	(2,803		)
Gain on sale of Traex assets	—			3,321			—			3,321
Gain on sale of land ⁽¹⁾	—			—			—			3,445
Equipment credit (note 16)	—			1,021			—			1,021
Restructuring charges	—			57			—			6
Other special items ⁽²⁾	—			(420		)	—			(420		)
Interest expense	(9,957		)	(10,787		)	(20,365		)	(22,370		)
Income taxes	1,493			(1,583		)	(1,797		)	(1,897		)
Net (loss) income	$	(10,143	)	$	15,406		$	(9,502	)	$	14,405

Depreciation & Amortization:
Glass Operations	$	9,890		$	10,531		$	20,026		$	20,780
Other Operations	11			54			22			246
Corporate	387			442			776			882
Consolidated	$	10,288		$	11,027		$	20,824		$	21,908

Capital Expenditures:
Glass Operations	$	5,070		$	9,347		$	11,464		$	17,769
Other Operations	—			—			—			3
Corporate	316			545			368			626
Consolidated	$	5,386		$	9,892		$	11,832		$	18,398

___________________________________


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


(2)	For 2011 this represents CEO transition expenses.