Segments and Geographic Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segments and Geographic Information

Segments and Geographic Information

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. We evaluate the performance of our segments based upon sales and Segment Segment EBIT. Inter-segment sales are consummated at arm’s length and are reflected in eliminations below.

Year ended December 31, (dollars in thousands)	2012			2011			2010
Net Sales:
Glass Operations	$	753,006		$	746,581		$	717,576
Other Operations	72,965			71,183			82,783
Eliminations	(684		)	(708		)	(565		)
Consolidated	$	825,287		$	817,056		$	799,794
Segment EBIT:
Glass Operations	$	118,470		$	96,716		$	94,745
Other Operations	14,047			11,974			14,902
Total Segment EBIT	$	132,517		$	108,690		$	109,647
Reconciliation of Segment EBIT to Net Income:
Segment EBIT	$	132,517		$	108,690		$	109,647
Retained corporate costs	(41,584		)	(37,789		)	(35,804		)
Gain (loss) on redemption of debt (note 6)	(31,075		)	(2,803		)	58,292
Severance	(5,150		)	(1,105		)	—
Pension curtailment and settlement charge	(4,306		)	—			—
Gain on sale of Traex assets (note 17)	—			3,418			—
Gain on sale of land (1)  (note 17)	—			3,445			—
Equipment write-down (note 5)	—			(817		)	(2,696		)
Equipment credit (note 5)	—			1,021			—
Restructuring charges (note 7)	—			84			(2,498		)
CEO transition expenses	—			(2,722		)	—
Abandoned property (note 18)	—			(2,719		)	—
Insurance recovery	—			—			945
Equity offering fees on secondary stock offering	—			—			(1,047		)
Interest expense	(37,727		)	(43,419		)	(45,171		)
Income taxes	(5,709		)	(1,643		)	(11,582		)
Net income	$	6,966		$	23,641		$	70,086
Depreciation & Amortization:
Glass Operations	$	40,184		$	40,398		$	39,038
Other Operations	40			265			715
Corporate	1,247			1,525			1,362
Consolidated	$	41,471		$	42,188		$	41,115
Capital Expenditures:
Glass Operations	$	31,676		$	40,161		$	26,079
Other Operations	—			28			239
Corporate	1,044			1,231			1,929
Consolidated	$	32,720		$	41,420		$	28,247

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

December 31, (dollars in thousands)	2012		2011
Segment Assets:
Glass Operations	$	736,251	$	736,377
Other Operations	34,402		32,638
Corporate	31,523		30,554
Consolidated	$	802,176	$	799,569

Net sales to customers and long-lived assets located in the U.S., Mexico, and Other regions for 2012, 2011 and 2010 are presented below. Intercompany sales to affiliates represent products that are transferred to those geographic areas on a basis intended to reflect as nearly as possible the market value of the products. The long-lived assets include net fixed assets and goodwill.

(dollars in thousands)	United States		Mexico		All Other		Eliminations			Consolidated
2012
Net sales:
Customers	$	463,659	$	119,234	$	242,394				$	825,287
Intercompany	56,420		12,387		20,930		$	(89,737	)	—
Total net sales	$	520,079	$	131,621	$	263,324	$	(89,737	)	$	825,287
Long-lived assets	$	110,919	$	202,437	$	111,370	$	—		$	424,726
2011
Net sales:
Customers	$	441,882	$	122,308	$	252,866				$	817,056
Intercompany	55,281		13,964		24,470		$	(93,715	)	—
Total net sales	$	497,163	$	136,272	$	277,336	$	(93,715	)	$	817,056
Long-lived assets	$	114,207	$	199,577	$	117,506	$	—		$	431,290
2010
Net sales:
Customers	$	444,534	$	121,282	$	233,978				$	799,794
Intercompany	55,432		10,846		16,085		$	(82,363	)	—
Total net sales	$	499,966	$	132,128	$	250,063	$	(82,363	)	$	799,794
Long-lived assets	$	118,363	$	197,604	$	123,770	$	—		$	439,737