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 included in this segment until we sold substantially all of the assets of our Traex subsidiary on 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 September 30,						Nine months ended September 30,
(dollars in thousands)	2012			2011			2012			2011
Net Sales:
Glass Operations	$	189,860		$	190,813		$	551,679		$	547,353
Other Operations	19,427			16,597			55,123			55,448
Eliminations	(137		)	(164		)	(576		)	(527		)
Consolidated	$	209,150		$	207,246		$	606,226		$	602,274

Segment EBIT:
Glass Operations	$	33,970		$	29,801		$	94,259		$	77,165
Other Operations	4,356			2,978			11,097			9,619
Total Segment EBIT	$	38,326		$	32,779		$	105,356		$	86,784

Reconciliation of Segment EBIT to Net Income (Loss):
Segment EBIT	$	38,326		$	32,779		$	105,356		$	86,784
Retained corporate costs	(10,413		)	(7,352		)	(33,708		)	(27,255		)
Loss on redemption of debt (note 4)	—			—			(31,075		)	(2,803		)
Severance and other	(3,786		)	—			(3,786		)	—
Gain (expense) on sale of Traex assets	—			(81		)	—			3,240
Gain on sale of land ⁽¹⁾	—			—			—			3,445
Equipment credit (note 16)	—			—			—			1,021
Restructuring charges	—			78			—			84
CEO transition expenses	—			(2,091		)	—			(2,511		)
Abandoned property (note 15)	—			(2,719		)	—			(2,719		)
Interest expense	(8,720		)	(10,559		)	(29,085		)	(32,929		)
Income taxes	(546		)	(2,928		)	(2,343		)	(4,825		)
Net income (loss)	$	14,861		$	7,127		$	5,359		$	21,532

Depreciation & Amortization:
Glass Operations	$	9,735		$	9,999		$	29,761		$	30,779
Other Operations	10			11			32			257
Corporate	328			347			1,104			1,229
Consolidated	$	10,073		$	10,357		$	30,897		$	32,265

Capital Expenditures:
Glass Operations	$	4,933		$	7,511		$	16,397		$	25,280
Other Operations	—			12			—			15
Corporate	479			536			847			1,162
Consolidated	$	5,412		$	8,059		$	17,244		$	26,457

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